Exceptional Proff 600
Introduction
Topics to be covered:
· Labor unions
· Labor relations and collective bargaining
· Right to work laws
· Health and safety in the workplace
Many organizations employ individuals who are members of labor unions. When HRM professionals work in such organizations, they must understand labor unions and how this affects labor relations. In addition, they must understand the collective bargaining process and the role they are expected to perform as part of this process. They also must understand legislation affecting labor relations, including right to work laws and how these affect employment processes in states that have such laws.
This lesson will provide an overview of labor unions, including a discussion of the purpose they serve in employment processes. This lesson also will discuss labor relations and collective bargaining, including HRM professionals’ responsibilities in these areas. This will include a discussion of applicable legislation, including right-to-work laws. In addition, this lesson will provide a brief overview of health and safety in the workplace.
Overview of Labor Unions
Trade unions fought to end child labor, such as being done by these boys in an Indiana glass factory.
Some organizations in both the public and private sectors of the U.S. economy include employees who are members of labor unions. Unions are associations that represent their members in negotiations with management over job-related issues, such as the amount of wages that employees will be paid and the specific tasks they will do at work.
Types of Unions
In the public sector, some jobs that are typically represented by labor unions include teachers, firefighters, and police officers. In the private sector, jobs that are often represented by labor unions include carpenters, auto workers, and food service workers.
Different types of unions exist. For example, craft unions are organizations that represent workers who are skilled specialists in a specific trade or craft. Industrial unions are organizations that represent both unskilled and semiskilled employees who work in mass production industries, such as mining and factory jobs.
Purpose of Unions
According to Nickels, McHugh and McHugh (2013), labor unions exist because the relationship between management and employees has sometimes been tense and riddled with conflict. This occurs because the two groups have different goals at work. In the private sector, management seeks to maximize profits, and in the public sector, management seeks to maximize the amount of services provided. In both sectors, maximizing productivity in the most efficient and effective manner possible for a limited amount of costs—including the funds expended for salaries, wages, and benefits to employees—is a priority.
By contrast, employees want to maximize the rewards they receive—including wages and fringe benefits—in exchange for their work. While at work, employees want to be treated with respect, subjected to work conditions that are fair and just. They also want to work in a pleasant environment.
History
Unions are also known as organized labor, and they have existed in The United States since the nation began. Workers initially organized and established labor unions to address issues such as unfair treatment by management and unsafe work conditions. Over the years, labor unions have been involved in political issues, leading the charge to stop child labor and to ensure that individuals injured on the job received compensation and care.
Small, local labor unions began in the United States while the country was still an English colony. According to Nickels, McHugh and McHugh (2013), the first national labor union in the United States was the Knights of Labor, which was formed in 1869 to represent any worker in the private sector. In 1886, the American Federation of Labor (AFL) began to advocate for labor issues affecting members of craft unions. The AFL, which later merged with the Congress of Industrial Organizations (CIO), continues to be an active labor union. The AFL-CIO currently advocates on behalf of members in both craft and industrial unions.
Grievances and Strikes
When employees in unions feel that they are being treated unfairly, they may file a grievance against the management of their organization. A grievance refers to a statement of work conditions or treatment that employees regard as unjust, and they want management to make changes to address their concerns. If management refuses to respond to a grievance or if management responds but the aggrieved employees find the response inadequate, employees may elect to go on strike. A strike refers to a stoppage of work that occurs when a large number of employees refuse to work until management addresses their grievances.
Yellow-dog Contracts
In some organizations, management would prefer that employees not belong to unions. Before 1932, some organizations even required employees to sign yellow-dog contracts , which required employees to agree that while they were employed by the organization, they would not join a union. Such contracts were outlawed in 1932 by the Norris-LaGuardia Act (Nickels, McHugh, & McHugh, 2013).
Significant Legislation Pertaining to Labor Relations
· NATIONAL LABOR RELATIONS ACT
HRM professionals in many organizations must deal with unions. To do this, HRM professionals must be familiar with the laws pertaining to labor-management relations. One of the more significant pieces of legislation was the National Labor Relations Act, which was passed in 1935. Also known as the Wagner Act, this legislation gave employees the right to create a labor union or join an existing one. It also gave them the right to refuse to be involved in a labor union. This Act made it legal for union members to elect representatives who would collectively bargain with their managers on their behalf. In addition, this Act made it legal for employees to participate in activities such as boycotts and picketing, as well as strikes (Nickels, McHugh, & McHugh, 2013). A boycott is a ban on certain products. It also refers to a ban on interactions with certain groups, such as managers, or a refusal to follow a specific policy. Picketing refers to the process of assembling near a specific location, such as the home office of an organization, to engage in a protest.
· LABOR MANAGEMENT RELATIONS ACT
In 1947, the Labor Management Relations Act, also known as the Taft-Hartley Act, was passed to amend the Wagner Act. Under this Act, states were granted the right to pass right-to-work laws, and organizations were granted the right to take action if a strike affected national health and safety. This Act prohibited closed-shop agreements , which require organizations to hire union members only and require employees to maintain union membership to remain employed. In addition, this Act prohibited secondary boycotts as well as featherbedding , which is the process of requiring organizations to hire more union workers than needed to perform specific tasks and/or pay for work that is not actually performed (Nickels, McHugh, & McHugh, 2013).
· LABOR MANAGEMENT REPORTING AND DISCLOSURE ACT
In 1959, the Labor Management Reporting and Disclosure Act, also known as the Landrum-Griffin Act, was passed to amend both the Wagner and the Taft-Hartley Acts. This Act, which passed in response to union corruption, sought to give greater rights to union members. For example, this Act gave union members the right to examine their union’s records, including financial data. It also gave union members the right to nominate candidates for union office and vote on these candidates in union elections. In addition, union members were allowed to attend and participate in union meetings and given the right to vote on union business. This Act also required unions to file annual financial reports with the U.S. Department of Labor.
Union Shops and Agency Shops
As noted earlier, the Taft-Hartley Act made closed shop agreements illegal. But the Act allowed other types of agreements between employers and unions to continue as legal arrangements. For example, employers and unions could agree to union shop clauses as conditions for employment. With a union shop , an individual is not required to be a member of a union to be hired to work in an organization. But once hired, to retain a job, he or she must join a union within a specified period of time (West’s Encyclopedia of American Law, 2005).
The Act also allowed agency shop clauses as conditions for employment. With an agency shop , employers and unions agree that employees do not have to be union members to be hired for a job, nor are they required to become formal union members once they are employed. But they do have to pay union dues for as long as they retain their job. The purpose of this is to prevent free riders , which unions argue are employees who benefit from union activities, such as negotiations for higher wages, without making contributions to unions such as the payment of membership dues and other personal resources, such as the time to attend union meetings (West’s Encyclopedia of American Law, 2005).
Right-to-Work Laws
The right-to-work states are shown in teal.
As stated previously, the Taft-Hartley Act granted states the authority to pass right-to-work laws . These are laws that forbid employers and unions operating within a right-to-work state from establishing agreements that require employees to become union members and pay union dues to be hired and to retain a job. In addition, employees who become union members have the right to resign their membership at any time during their employment and stop paying membership dues without affecting their job status. At the same time, unions have to represent all employees in a bargaining unit, regardless of their status as union members. Over 20 U.S. states have such laws.
Right-to-work states have open-shop agreements , which give workers the option of joining a union if one operates in their workplace, but workers also have the right to refuse to join a union. Right-to-work states prohibit the use of union-security clauses in labor contracts. Such clauses require that employees who benefit from a union cannot be free riders. They are required to join a union or, at a minimum, pay union dues.
Right-to-work laws have been the source of many political debates across the United States. Proponents of such laws argue that when individuals who work are required to become members of unions or pay membership dues to unions, their rights as individuals and their freedom to choose associations are violated. In addition, proponents argue that when unions can compel individuals to become members and support their organizations, they become overly powerful both in the workplace and in the political realm (West’s Encyclopedia of American Law, 2005).
Opponents of right-to-work laws argue that such laws promote free riders who become an unfair burden to employees who choose to be union members. In addition, opponents contend that right-to-work laws serve to create tension among workers as non-union employees become opposed to employees who are union members. This results in weakening the labor movement (West’s Encyclopedia of American Law, 200).
Collective Bargaining
Beatrice Webb, a British economist and social reformer, is credited with the first use of ‘collective bargaining’ in 1891 (Legal Dictionary, n.d.)
The ultimate goal of unions is to negotiate a legal agreement between labor and an organization’s management that specifies the terms of employment for individuals who work for the organization. This agreement is known as a labor contract and is established through the process of collective bargaining .
During collective bargaining, an organization’s management and union representatives will negotiate a variety of issues. For example, they will establish a wage structure that includes details about things such as the conditions under which employees will be paid at piecework rates, when they will receive bonuses and the bonus amounts, and the rates for shift differentials. Piecework refers to systems that pay employees on the basis of the number of items they produce rather than the number of hours they work. Shift differential refers to additional wages that employees receive if they work outside of an organization’s normal business hours. In addition to wages, collective bargaining will cover the benefits that employees will receive, such as health insurance and pension plans.
The hours that employees are expected to work and policies regarding time off are another issue handled during collective bargaining. This will include negotiations for the paid holidays that employees will receive, amount of leave such as vacation and sick days and policies for when such leave can be taken, hours to be worked under flextime, periods for mealtimes and breaks, and overtime policies.
Collective Bargaining Issues and Results
Collective bargaining also covers issues such as how management will handle promotions and transfers, policies for layoffs and recalls, and privileges for seniority. Since some employees will require discipline, negotiations will determine how employees will be punished and at what point they can be terminated. In addition, the collective bargaining process will establish procedures for employees to file grievances, including the mediation procedures that will be used and how arbitration will be handled.
Ultimately, the collective bargaining process will result in a negotiated labor contract that specifies the rights that management has as well as the rights of employees. However, once an agreement is reached, further negotiation may be necessary if employees file grievances and it is determined that management is not abiding by the terms of the labor contract.
Approaches to Collective Bargaining
Distributive Bargaining
Collective bargaining can be handled using one of two approaches. With distributive bargaining , the approach is win-lose. This approach assumes that management and union representatives have irreconcilable differences and if one side wins, the other side loses. This approach tends to be used in organizations with an insufficient amount of resources that each side wants to control. For example, distributive bargaining may occur in local governments with groups such as firefighters who want a level of wages and benefits that the government cannot afford.
Integrative Bargaining
Another technique is integrative bargaining , which is a win-win approach. This approach assumes that management and union representatives have common, or at least complementary, goals that they can pursue together. If one side wins, the other side also can win.
Bargaining Zone
Collective bargaining can be a challenging process with a great deal of tension as managers and union representatives negotiate back and forth. Each side makes demands that they want included in the labor contract, and for each demand, the other side either accepts it or makes a counter offer. For example, the union representatives may ask that employees be given a four percent raise annually for wages. Management may counter and argue the organization can only afford a two percent raise. The sides may negotiate until they either reach a percentage that is agreeable to both parties or they reach a point where the union refuses to lower the percentage and management refuses to raise it.
In scenarios like this, union representatives and management may struggle to reach agreement. They may compromise until they find common ground and establish a labor contract. Or, they may decide that they are at a stalemate and cannot resolve their differences. During this process, negotiations occur in the bargaining zone , which refers to the range of options between the initial demands and the final offers that each side is willing to consider before they decide that they cannot reach agreement.
Mediation
When this occurs, the collective bargaining process may go into mediation to resolve conflicts and reach an agreement. During mediation , an impartial third party, known as a mediator, gets involved in the negotiation. This individual evaluates the demands and offers made by each side, makes suggestions regarding these, and offers support as the two sides continue to negotiate and strive to find common ground to establish a labor contract. With mediation, the mediator offers opinions, but does not make decisions. Decision making is still handled by the union representatives and management.
Arbitration
If mediation does not enable union representatives and management to reach agreement, it may be necessary to move to arbitration. With arbitration , an impartial third party, known as an arbitrator, is brought in to review the collective bargaining process. But with an arbitrator, the third part has the authority to make binding decisions that resolve conflicts and become the basis for a labor contract.
HRM Professionals and Unions
You can see New York Police Department (NYPD) police officers observing protesters during the New York transit strike in 2005.
Dealing with Unions
HRM professionals are involved in all aspects of dealing with unions. This includes abiding by union agreements and following legal requirements, such as right-to-work. This also includes being part of collective bargaining processes and dealing with employee grievances.
For each process that involves working with unions, HRM professionals must have knowledge and skills to handle these processes appropriately. For example, if collective bargaining is handled using a distributive bargaining approach, HRM professionals need to be aware that negotiation tactics include overstating demands, withholding information, and assuming a tough stance. With integrative bargaining, the focus is on problem solving using an open dialogue and sharing information (Cascio, 2010).
Handling Strikes
When strikes occur, HRM professionals may be at the forefront of handling the situation, ensuring that everyone’s rights are respected. According to Cascio (2010), the rules of conduct that must be followed during a strike include the following:
· Individuals who have business with the organization, including workers who are not on strike, have the right to cross a picket line and freely move in and out of the organization’s facilities.
· Picket lines cannot block entrances to a building.
· State laws and/or local ordinances may prohibit profanity in and near picket lines.
· State laws and/or local ordinances may regulate noise levels on picket lines, including the use of sound tracks.
· State laws and/or local ordinances may prohibit carrying weapons in and near picket lines. Even if weapons are allowed, violence is prohibited.
· Union representatives and those involved in picket lines have the right to speak to people as they enter and leave the organization’s facilities. But they do not have the right to harass or threaten people.
· Right to Strike
· HRM professionals should be aware that as per the Landrum-Griffin Act, employees have the right to strike, and they may engage in different types of strikes, depending on their concerns. For example, employees may hold an unfair labor practice strike if they believe their management has treated them unfairly. Generally, with this category of strike, employees are entitled to return to work when the strike ends.
· Economic strikes are used to support collective bargaining efforts and force management to yield to union demands. When economic strikes end, participating employees have limited rights regarding reinstatement at work.
Unprotected Strikes
· Some employees may participate in unprotected strikes, which can be held for a variety of reasons. Since unprotected strikes are not in response to unfair labor practices and they are not in support of collective bargaining procedures, employers have the right to terminate employees if they participate in an unprotected strike. Workers also may participate in sympathy strikes, which are held to show support for other unions that are on strike. Depending on the situation, employees who participate in sympathy strikes may or may not have the right to return to work once the strike ends.
· Handling Grievances
Health and Safety in the Workplace
The Occupational Safety and Health Administration (OSHA) enforces the Occupational Safety and Health Act to ensure a safe environment for workers like this one.
One of the reasons that unions were started in the United States was to address unsafe working conditions. It is vital that all organizations make the health and safety of their employees a priority. To help ensure that organizations do this, the federal government has passed laws with requirements intended to help create safe workplaces that are free from dangerous and/or unhealthy conditions.
One of the most significant laws is the Occupational Safety and Health Act of 1970. This legislation regulates the exposure of employees to hazardous materials in the workplace, such as asbestos and chemicals. It also requires organizations to provide employees with equipment intended to keep them safe while at work. For example, employees who work on construction jobs should have hard hats to protect their heads, and employees who work in areas with toxic fumes should be provided with masks that enable them to breathe without inhaling the fumes. In addition, OSHA requires employers to make every effort to protect employees from workplace violence, and it affords an employee certain rights if he or she becomes a victim of workplace violence.
HRM professionals have a responsibility to be familiar with and help enforce OSHA and other laws that promote health and safety in the workplace. They also should be at the forefront of ensuring their organization takes the actions necessary to establish a safe work environment. As part of this, they should provide training about health and safety issues in the workplace, and they should ensure that all employees have any resources they need to be as safe and healthy as possible while at work.
Conclusion
Many organizations have employees represented by labor unions. While some managers may dislike labor unions, such organizations have helped ensure that workers are treated as fairly as possible in the workplace. Of course, unions can be corrupt and they may exploit workers. This is why some states have passed right-to-work laws, making it illegal for unions to require workers to become members of their associations. Regardless of how they feel about unions, HRM professionals must understand unions and be prepared to work with them. This includes understanding the laws pertaining to unions, knowing how to participate in collective bargaining processes, and being able to handle grievances filed by employees in unions.