week 5 labor relations busn 102 – Özge can. the role of labor unions labor relations the...
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WEEK 5
LABOR RELATIONS
BUSN 102 – Özge Can
The Role of Labor Unions
Labor Relations The relationship between organized labor and
management (in its role as the representative of company ownership)
Labor Unions Organizations that represent employees in
negotiations with management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
12-2
Unionization: Employee’s Perspective
Higher compensation Greater benefits Influence over hiring, promotions, and layoffs Working conditions and workplace safety Formal processes for employee grievances,
discipline, and other matters Solidarity and recognition
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
12-3
Unionization: Management’s Perspective
Management wants to: Minimize costs to maximize profits Higher flexibility and productivity – but union
contracts often include work rules
Work Rules: A common element of labor contracts that
specifies such things as the tasks certain employees are required to do or are forbidden to do
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
12-4
Outcome of Unionization
Negative or positive outcome?
It depends on your perspective: For example, higher wages is clearly a
negative outcome for shareholders/owners but a positive outcome for workers and the communities they live in
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Unionization in Historical Perspective Early guides in Europe that gave craftspeople
bargaining power over merchants Industrial revolution in the second half of
1800s Great Depression in 1930s
Repeated strikes and protests over very low wages, unsafe working conditions, abusive management practives, long hours, child labor
12-6
Unionization in Historical Perspective Legislations regarding labor relations policies and
procedures for most sectors of industry Legislations addressing many concerns raised by
business owners Legislations designed to ensure democratic
processes and financial accountability within unions
12-7
Types of Unions
Craft Unions Offer membership to
workers with a specific craft or skill, such as carpentry, masonry, or electrical work
Industrial Unions Seek to represent all
workers at a given employer or location, regardless of profession or skill level
12-8
How Unions Are Structured? Locals: Local unions that represent employees in a
specific geographic area or facility
National Union: A nationwide organization composed of many local unions that represent employees in specific locations
They are responsible for: Organizing in new areas and industries,
negotiating industrywide contracts, assisting locals with negotiations, administrating benefits, lobbying, lending support for strikes
12-9
How Unions Are Structured? International Unions: Have members in more than
one country Ex: Service Employees International Union (SEIU)
Labor Federations: Give unified voice for political activities and membership drives worldwide
Ex: AFL, CIO
12-10
The Union Organizing Process
12-11
The Collective Bargaining Process Collective Bargaining
A negotiation between union and management negotiators to forge the human resources policies that will apply to all employees covered by a contract
Collective Bargaining Agreements (CBAs) Contracts that result from collective bargaining =
Labor Contract It is a compromise between the desires of the union
members and those of management
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The Collective Bargaining Process
12-13
The Collective Bargaining Process
12-14
Negotiating an Agreement
Mediation Use of an impartial third party to help resolve
bargaining impasses to study the situation, explore new options, improve communication and make recommandations
Arbitration A decision process in which an impartial referee
listens to both sides and then makes a judgment by accepting one side’s view
Compulsory or voluntary arbitration
12-15
When Negotiations Break Down: Labor Options12-
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When Negotiations Break Down: Management Options12-
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Labor Options
Strike A temporary work stoppage aimed at forcing
management to accept union demands Boycott
A pressure action by union members and sympathizers who refuse to buy or handle the product of a target company
Injunction A court order that requires one side in a dispute to
refrain from or engage in a particular action Also: slowdowns and sickouts
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Management’s Options
Strikebreakers Nonunion workers hired to do the jobs of striking
workers Lockout
A decision by management to prevent union employees from entering the workplace
used to pressure the union to accept a contract proposal
Injunctions
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Grievance, Discipline, and Arbitration Procedures
Unfair Labor Practices: Unlawful acts made by either unions or management
By employers: Threatening employees with termination or cuts in benefits if they
vote for a union or engage in any other activity protected by laws Threatening to close a facility if employees vote for union
representation Interrogating employees about union sympathies or activities in
ways that could “interfere with, restrain, or coerce” employees trying to exercise their legal rights
Punishing employees for unionization activity by transferring them, giving them more difficult work assignments, or terminating them
12-20
Grievance, Discipline, and Arbitration Procedures
Grievance: A formal complaint against an employer
Substantial reasons include: Clarifying details of the contract Addressing alleged contract violations by the
employer Laying the ground work for future contract
negotiations Contesting management decisions
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Grievance, Discipline, and Arbitration Procedures Progressive Discipline: An escalating process of
discipline that gives employees several opportunities to correct performance problems before being terminated Usually starts with an oral warning for the first offense,
followed by a written warning, then another written warning and suspension without pay, and finally termination
Arbitrating Disputes: Arbitration can also be used to interpret or apply the provisions of the labor aggreement. Disputes over wages, seniority, terminations, employee
discipline, job posting and the use of subcontractors
12-22
Labor Movement Today
Conflicts within the union or between unions Decreasing union memberships Proposed legislation that would significantly alter
the union election provisions, making it easier or more difficult for unions to organize groups of workers (Ex: Employee Free Choice Act in the US)
12-23
Next Week’s Topic:
Marketing as a Concept
Read: Chapter 13: The Art and Science of Marketing
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