Labor Relations 4

namondua
LB2b.pdf

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Chapter 4Chapter 4

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Goals and Strategies: Management and Goals and Strategies: Management and UnionsUnions

ManagementManagement ControlControl

EfficiencyEfficiency EffectivenessEffectiveness

FlexibilityFlexibility No strikesNo strikes

UnionUnion ParticipationParticipation Job SecurityJob Security “Fair” Wages“Fair” Wages Protected RightsProtected Rights No lockoutsNo lockouts

Common Interests Survival

Competitiveness Profitability

Equity

Common Interests Survival

Competitiveness Profitability

Equity

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Exhibit 4.1 Goals of the Company and the Union

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Company Strategic PlanningCompany Strategic Planning

• Basis for a Company’s StrategyBasis for a Company’s Strategy  Managerial philosophyManagerial philosophy

 Managerial ethicsManagerial ethics

 Economic conditions (overall and industry-specific)Economic conditions (overall and industry-specific)

 Workforce compositionWorkforce composition

 Competition in the industryCompetition in the industry

 Stage in company/industry life cycleStage in company/industry life cycle

 Managerial capabilitiesManagerial capabilities

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Exhibit 4.2 Company Strategies in Labor Relations

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Exhibit 4.3 Unfair Labor Practices of Smithfield Packing Company, Wilson, North Carolina

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Tactics to Avoid UnionizationTactics to Avoid Unionization

 Developing a spy network to identify union Developing a spy network to identify union supporters.supporters.

 Refusing to hire former employees of unionized firms.Refusing to hire former employees of unionized firms.  Discharging known union advocates.Discharging known union advocates.  Refusing to hire applicants with union sympathies.Refusing to hire applicants with union sympathies.  Using psychological tests to assess applicants’ Using psychological tests to assess applicants’

interest in unionization.interest in unionization.  Locating plants in nonunion areas and expanding Locating plants in nonunion areas and expanding

nonunion facilities.nonunion facilities.  Having questions on applications that ask applicants Having questions on applications that ask applicants

about prior union membership.about prior union membership.

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Positive Human Resource Positive Human Resource ManagementManagement• The absence of status and rank symbolsThe absence of status and rank symbols • Carefully considered surroundingsCarefully considered surroundings • Overall corporate strengthOverall corporate strength • Programs promoting employment securityPrograms promoting employment security • Promotion from withinPromotion from within • Influential human resources programsInfluential human resources programs • Competitive pay and benefitsCompetitive pay and benefits • Management that listensManagement that listens • Employee stock option plansEmployee stock option plans • Careful grooming of managersCareful grooming of managers

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Double-BreastingDouble-Breasting

• The operation of both unionized and The operation of both unionized and nonunionized subsidiaries due to:nonunionized subsidiaries due to:  A holding company in control of both facilities.A holding company in control of both facilities.

 A unionized firm acquiring a nonunionized subsidiary.A unionized firm acquiring a nonunionized subsidiary.

 A nonunionized firm acquiring a unionized subsidiary.A nonunionized firm acquiring a unionized subsidiary.

• NLRB test for the separation of subsidiaries:NLRB test for the separation of subsidiaries:  Interrelation of operations.Interrelation of operations.

 Centralized control of labor relations.Centralized control of labor relations.

 Common management.Common management.

 Common ownership or financial control.Common ownership or financial control.

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Union SubstitutionUnion Substitution

• Providing a substitute for unionism:Providing a substitute for unionism:  Adoption of formal nonunion employment dispute Adoption of formal nonunion employment dispute

resolution proceduresresolution procedures  Initiate employee involvement programs (e.g., quality Initiate employee involvement programs (e.g., quality

circles) to restore the sense of working in a small circles) to restore the sense of working in a small businessbusiness

 Maintain an “open-door” policy, wherein employees Maintain an “open-door” policy, wherein employees may present their grievances to management may present their grievances to management representativesrepresentatives

 Create nonunion grievance procedures: appeal Create nonunion grievance procedures: appeal boards, appeal steps up to top management, and boards, appeal steps up to top management, and peer review committeespeer review committees

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Unionized Companies’ StrategiesUnionized Companies’ Strategies

• Adopt a businesslike, codified strategyAdopt a businesslike, codified strategy  Accept unions as the legitimate representative of the Accept unions as the legitimate representative of the

employees to be treated with respect and trust.employees to be treated with respect and trust.

• Accommodation and labor-management Accommodation and labor-management cooperation strategycooperation strategy  Entails the union cooperating with management, Entails the union cooperating with management,

rather than the parties having an adversarial rather than the parties having an adversarial relationship.relationship.

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Union Strategic PlanningUnion Strategic Planning

• Typical Union’s Strategic PlanTypical Union’s Strategic Plan

1.1. Mission statementMission statement

2.2. Analysis of the external environmentAnalysis of the external environment

3.3. Internal analysis of the union’s strengths and Internal analysis of the union’s strengths and weaknessesweaknesses

4.4. Long-term and short-term objectivesLong-term and short-term objectives

5.5. Strategy development for growth and survivalStrategy development for growth and survival

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Strategic Planning Success for UnionsStrategic Planning Success for Unions

Collective Bargaining

Collective Bargaining

Political Activities

Political Activities

Broader Organizing

Broader Organizing

Effective and Successful

Unions

Effective and Successful

Unions

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Exhibit 4.4 AFL-CIO’s Mission Statement

What We Stand for: Mission and Goals of the AFL-CIO

The mission of the AFL-CIO is to improve the lives of working families—to bring economic justice to the workplace and social justice to our nation. To accomplish this mission we will build and change the American labor movement.

We will build a broad movement of American workers by organizing workers into unions.

We will recruit and train the next generation of organizers, mass the resources needed to organize and create the strategies to win organizing campaigns and union contracts. We will create a broad understanding of the need to organize among our members, our leadership and among unorganized workers. We will lead the labor movement in these efforts.

We will build a strong political voice for workers in our nation.

We will fight for an agenda for working families at all levels of government. We will empower state federations. We will build a broad progressive coalition that speaks out for social and economic justice. We will create a political force within the labor movement that will empower workers and speak forcefully on the public issues that affect our lives.

We will change our unions to provide a new voice to workers in a changing economy.

We will speak for working people in the global economy, in the industries in which we are employed, in the firms where we work, and on the job everyday. We will transform the role of the union from an organization that focuses on a member’s contract to one that gives workers a say in all the decisions that affect our working lives—from capital investments, to the quality of our products and services, to how we organize our work.

We will change our labor movement by creating a new voice for workers in our communities.

We will make the voices of working families heard across our nation and in our neighborhoods. We will create vibrant community labor councils that reach out to workers at the local level. We will strengthen the ties of labor to our allies. We will speak out in effective and creative ways on behalf of all working Americans.

SOURCE: AFL-CIO’s Mission Statement. Used with permission. Copyright © 2011 AFL-CIO. www.aflcio.org

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Exhibit 4.5 Excerpts from CWA’s Strategic Plan: 2006-2011 Strategic Intent: Member Development Develop CWA membership to enable the organization to be self-sufficient. Develop a compelling set of member benefits. Broaden efforts to identify new member segments within the scope of CWA’s vision and mission, and attract and recruit new members. Maintain efforts to retain existing members.

Strategic Intent: Identity/Branding The intent is to establish the CWA as a well-known, recognized, and reputable organization in the North American climbing community and with the public. Increase recognition of the CWA, and continue to differentiate the CWA from preceding organizations. Position the CWA as the primary source of information regarding risk management, insurance, education and standards for the climbing wall industry and the public. Define, promote, and deliver functional, tangible, features and benefits to our members, and the public, that promote competence in practice, quality in products and services, and a positive image for the manufactured climbing wall industry.

Strategic Intent: Standards Development The intention is for the CWA to be the leader in standards development for the manufactured climbing wall industry. The CWA will develop widely-adopted, consensus-based standards, with a high degree of cooperation with other standard setting organizations. The CWA will advocate for the adoption of sound standards and will promote the interoperability of standards by working with national and international standard setting organizations such as ANSI. The CWA will develop and implement both engineering standards for the construction of manufactured climbing structures, and practice standards for the management and operation of manufactured climbing structures.

Strategic Intent: Government Affairs/Public Policy The CWA’s intention is to protect and expand the recreational use of climbing facilities in North America. The CWA will attempt to influence government actions, policy development, and legislation to achieve either neutral or positive outcomes for the industry. By marshalling the industry’s resources, involving industry members, maintaining reliable relationships, and using effective advocacy techniques; the CWA can position itself to effectively represent the manufactured climbing wall industry. CWA will employ an effective issues management process to that will focus its resources on advocacy at the state and, to certain extent, federal levels. Advocacy on the state level will attempt to achieve the best results for CWA membership.

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Exhibit 4.5 Excerpts from CWA’s Strategic Plan: 2006-2011 (cont’d)

Publications/Communications/Information Systems Development The development, organization, and distribution of information pertaining to the industry is vital to its continued growth and success. The intention is to develop CWA into the central source of information and communication regarding the manufactured climbing wall industry—to become the industry’s ‘information broker.’ The CWA will identify information of interest to members and the public and will determine cost effective ways to distribute this information.

Strategic Intent: Program Development The CWA’s intention is to define and develop programs of interest to our members and to the general public that promote responsible recreational use of manufactured climbing facilities. CWA programs will be focused on the professional development of members and the improvement climbing related knowledge and information.

Strategic Intent: CWA Conference and Events The CWA’s intention is to develop and promote a constructive and collegial community within the manufactured wall industry. Community building can best be done face-to- face. The conference will bring together a critical mass of members to discuss industry wide concerns and initiatives, promote information sharing, and improve opportunities networking. The conference will offer an opportunity to conduct CWA business cost effectively; and will provide opportunities for member training, education, and professional development.

SOURCE: Reprinted with permission by Communications Workers of America, website: www.cwa.org

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Exhibit 4.6 Items from Win’s Strategic Plans

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Exhibit 4.7 Labor Relations Organization: Dotted-Line Relationships

NOTE: Each respective group personnel and industrial relations manager has a direct reporting relationship to his or her respective group management while maintaining a ‘‘dotted-line’’ relationship to the corporate staff, who has the responsibility for formulation of corporate-wide labor relations policies and procedures.

As each group is dependent upon the corporate function as the formulator of this policy, the lines of communication and working relationships are strong, and the level of communication is very high. Their function is to administer corporate policies and procedures as formulated by the vice president of personnel and industrial relations and his or her staff.

SOURCE: Audrey Freedman, Managing Labor Relations (New York: The Conference Board, 1979), p. 28.

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Exhibit 4.8 Management Organization at the Plant Level (Approximately 1,100 Hourly Employees)

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Exhibit 4.9 Organizational Chart of an International Union

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Exhibit 4.10 Organizational Chart for a Local Union

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The Local UnionThe Local Union

Job Characteristics

Scope of the Labor Agreement

Differences Between Local Craft and Industrial Unions

Craft versus Industry Origins

Skills

Internal Leadership Roles

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Government and Operation of the Government and Operation of the Local UnionLocal Union

Holding elected office

Holding elected office

Participating in meetings

Participating in meetings

Voting (elections,

ratifications, and strikes)

Voting (elections,

ratifications, and strikes)

Attending conventions

Attending conventions

Helping with the newsletter

Helping with the newsletter

Common ways for Union

Members to Participate

Common ways for Union

Members to Participate

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Exhibit 4.11 Twelve Largest National and International Unions

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Union DemocracyUnion Democracy

• Components of Union DemocracyComponents of Union Democracy  Shared sovereignty in decision makingShared sovereignty in decision making

 Opportunities to participate in decision makingOpportunities to participate in decision making

 Access to complete information necessary to make Access to complete information necessary to make a decisiona decision

 Guaranteed equal rights and respect for dignityGuaranteed equal rights and respect for dignity

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The National or International UnionThe National or International Union

• National’s ConstitutionNational’s Constitution

 Adopted by representatives from localsAdopted by representatives from locals  Originally had limited power over union locals.Originally had limited power over union locals.

 Locals gradually became subordinate to the national union.Locals gradually became subordinate to the national union.

 Constitutional provisions specify the national union functions Constitutional provisions specify the national union functions and also protect individual rights and the rights of locals.and also protect individual rights and the rights of locals.

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The National or International Union The National or International Union (cont’d)(cont’d)• The ConventionThe Convention

 A gathering of delegates representing locals to A gathering of delegates representing locals to discuss and vote on issues concerning the union:discuss and vote on issues concerning the union:  Internal governmentInternal government

 Collective bargainingCollective bargaining

 Resolutions for/against Resolutions for/against the international’s public the international’s public policypolicy

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The National or International Union The National or International Union (cont’d)(cont’d)• Organization: Organization: Operational DepartmentsOperational Departments

 Executive and professional staff administrationExecutive and professional staff administration  Financial and auditingFinancial and auditing  Organizing and servicingOrganizing and servicing  Technical staffTechnical staff

• Services to and Control of LocalsServices to and Control of Locals  Collective bargainingCollective bargaining  Grievance administration and labor arbitrationGrievance administration and labor arbitration  Counseling on the operational aspects of localsCounseling on the operational aspects of locals  Collection of initiation fees, dues, and per capita feesCollection of initiation fees, dues, and per capita fees

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The National or International Union The National or International Union (cont’d)(cont’d)• Reasons for Mergers of National UnionsReasons for Mergers of National Unions

 Example of the AFL-CIO mergerExample of the AFL-CIO merger  The need for stronger bargaining positionsThe need for stronger bargaining positions  Expensive jurisdictional disputesExpensive jurisdictional disputes  Decline in U.S. industrial sectorsDecline in U.S. industrial sectors  Economies of scaleEconomies of scale  Avoidance of external controlsAvoidance of external controls  The need for self-preservationThe need for self-preservation

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The National or International Union The National or International Union (cont’d)(cont’d)• Types of Mergers of National UnionsTypes of Mergers of National Unions

 AmalgamationAmalgamation  Two or more unions of roughly the same size form a new Two or more unions of roughly the same size form a new

union.union.

 AbsorptionAbsorption  A small union merges with a larger union and loses its A small union merges with a larger union and loses its

previous identity.previous identity.

 AffiliationAffiliation  A small union merges with the national union.A small union merges with the national union.

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The National or International Union The National or International Union (cont’d)(cont’d)• Intermediate Organizational UnitsIntermediate Organizational Units

 Regional or district officesRegional or district offices  Trade conferencesTrade conferences  Conference boardsConference boards  Joint councilsJoint councils

• Other Employee OrganizationsOther Employee Organizations  Independent (Unaffiliated) UnionsIndependent (Unaffiliated) Unions

 Unions that are not members of the AFL-CIO or Change to Unions that are not members of the AFL-CIO or Change to Win.Win.

 Employee associationsEmployee associations  Managerial and professional organizationsManagerial and professional organizations

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The American Federation of Labor and The American Federation of Labor and Congress of Industrial Organizations (AFL-Congress of Industrial Organizations (AFL- CIO)CIO) • 56 national and international unions56 national and international unions

• 60,000 local unions60,000 local unions

• 12.7 million individual members12.7 million individual members

• AFL and CIO merged in 1955.AFL and CIO merged in 1955.  Allows each union its autonomy.Allows each union its autonomy.  Enforces ethical codes for democracy and financial Enforces ethical codes for democracy and financial

integrity of member unions.integrity of member unions.  Mediates and resolves disputes between member Mediates and resolves disputes between member

unions.unions.

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Exhibit 4.12 Organization Chart of AFL-CIO

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Exhibit 4.13 Union Plus Benefits from Union Privilege

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Use of Information Technology by Use of Information Technology by UnionsUnions• Internal communicationsInternal communications

between union officers, staff,between union officers, staff, and members.and members.

• External communicationsExternal communications to inform the public about to inform the public about union issues.union issues.

• Facilitation of bargaining Facilitation of bargaining activitiesactivities and informing and informing members about employer members about employer activities.activities.

• Contract administrationContract administration in communicating grievances in communicating grievances and tracking arbitration and tracking arbitration decisions.decisions.

• Union organizing activitiesUnion organizing activities to contact prospective to contact prospective members.members.

• Political action messagesPolitical action messages to inform voters about union to inform voters about union issues and candidates.issues and candidates.

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Union Corruption and the Landrum-Union Corruption and the Landrum- Grifn ActGrifn Act• Also known as the Labor-Management Also known as the Labor-Management

Reporting and Disclosure Act of 1959Reporting and Disclosure Act of 1959

 Resulted from the McClellan hearingsResulted from the McClellan hearings  Exposed abuses of power—corruption, racketeering, and Exposed abuses of power—corruption, racketeering, and

embezzlement—in unions.embezzlement—in unions.

 Promotes union democracy and financial integrity:Promotes union democracy and financial integrity:  Requires disclosure of union operations and relationships.Requires disclosure of union operations and relationships.

 Regulates union trusteeships of retirement funds.Regulates union trusteeships of retirement funds.

 Imposes fiduciary responsibilities on union officials.Imposes fiduciary responsibilities on union officials.

 Protects individual member rights to participate in union Protects individual member rights to participate in union elections and governance.elections and governance.

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Union SecurityUnion Security

• Advantages of Union Security ProvisionsAdvantages of Union Security Provisions  Can increase union membership in the bargaining Can increase union membership in the bargaining

unit (e.g., union shop). unit (e.g., union shop).

 Provides a certified bargaining opponent with which Provides a certified bargaining opponent with which the employer can negotiate (i.e., majority status).the employer can negotiate (i.e., majority status).

 Strengthens union resources (e.g., dues check-off).Strengthens union resources (e.g., dues check-off).

 Strengthens the union in its ongoing relationship with Strengthens the union in its ongoing relationship with the employer (e.g., grievances).the employer (e.g., grievances).

 Strengthens the union’s ability to represent the Strengthens the union’s ability to represent the bargaining unit in collective bargaining by focusing on bargaining unit in collective bargaining by focusing on issues important to the membership.issues important to the membership.

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Union Security ProvisionsUnion Security Provisions

• CertificationCertification  Exclusive right of representation for one year.Exclusive right of representation for one year.

• Closed ShopClosed Shop  Employees must first be union members before Employees must first be union members before

employer can hire them; outlawed by LMRA in 1947.employer can hire them; outlawed by LMRA in 1947.

• Union shopUnion shop  All employees are required to become union All employees are required to become union

members to remain employed.members to remain employed.  ““Beck rights”Beck rights”

– Financial core member: nonmember agency fee payer of Financial core member: nonmember agency fee payer of union collective bargaining and grievance costs.union collective bargaining and grievance costs.

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Exhibit 4.14 An Example of a Union Shop Clause

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Union Security Provisions (cont’d)Union Security Provisions (cont’d)

• Agency ShopAgency Shop  Union membership is optional; however, nonmembers Union membership is optional; however, nonmembers

must pay for union collective bargaining and must pay for union collective bargaining and grievance costs.grievance costs.

• Contingency Union ShopContingency Union Shop  Union shops are not permitted in right-to-work states.Union shops are not permitted in right-to-work states.

 The union security provision in the labor agreement The union security provision in the labor agreement becomes a union shop provision if a state’s right-to-becomes a union shop provision if a state’s right-to- work laws are eliminated.work laws are eliminated.

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Executive OrdersExecutive Orders

• G.W. Bush (2001) Executive Order 13201G.W. Bush (2001) Executive Order 13201  Federal government contractors must post employee Federal government contractors must post employee

notices informing them of their Beck rights.notices informing them of their Beck rights.

• Obama Executive Order 13496Obama Executive Order 13496  Revokes Bush’s Executive Order 13201.Revokes Bush’s Executive Order 13201.

 Also precludes federal contractors from being Also precludes federal contractors from being reimbursed for expenses incurred to influence reimbursed for expenses incurred to influence employees from joining a unionemployees from joining a union

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Exhibit 4.15 Executive Order 13496: Notification of Employee Rights under Federal Labor Laws

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Union Security Provisions (cont’d)Union Security Provisions (cont’d)

• Union Hiring HallUnion Hiring Hall  Employers hire only employees referred by the union Employers hire only employees referred by the union

if the union can supply enough qualified workers.if the union can supply enough qualified workers.  The hall is required to refer both union members and The hall is required to refer both union members and

nonmembers in a nondiscriminatory manner.nonmembers in a nondiscriminatory manner.

• Preferential Treatment ClausePreferential Treatment Clause  Union employees are given employment preference Union employees are given employment preference

over nonemployees when a new facility is opened.over nonemployees when a new facility is opened.

• Dues CheckoffDues Checkoff  Union dues are automatically deducted from union Union dues are automatically deducted from union

employees’ paychecks by the employer.employees’ paychecks by the employer.

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Right-to-Work Laws: Controversy and Right-to-Work Laws: Controversy and EfectsEfects • Section 14(b) of LMRASection 14(b) of LMRA

 Recognizes the individual’s right to employment Recognizes the individual’s right to employment without having to join a labor organization as a without having to join a labor organization as a condition of employment.condition of employment.

 Gives individual states the option to adopt state right-Gives individual states the option to adopt state right- to-work laws prohibiting union shops.to-work laws prohibiting union shops.

 Effects:Effects:  Right-to-work states generally have much lower union Right-to-work states generally have much lower union

densities than non-right-to-work states.densities than non-right-to-work states.  ““Free riders” who do not join the union or pay dues for union Free riders” who do not join the union or pay dues for union

representation and collective bargaining.representation and collective bargaining.

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4–45

Exhibit 4.16 Private Sector Average Weekly Pay by State and Right-to-Work Status, 2014

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Exhibit 4.16 (cont’d)

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4–47

Exhibit 4.17 Employees Who Are Union Members and Who Are Represented by Unions by State and Right-to-Work Status, 2014

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Key TermsKey Terms • AffiliationAffiliation • Craft unionsCraft unions • Industrial unionsIndustrial unions

• General unionsGeneral unions

• Business agentBusiness agent

• Shop stewardShop steward

• International union International union representativerepresentative

• ConstitutionConstitution • ConventionConvention • Master labor agreementMaster labor agreement • Dues check off systemDues check off system • AbsorptionsAbsorptions • AmalgamationsAmalgamations

• Conference boardsConference boards • Joint councilsJoint councils • Associate membership Associate membership

programprogram

• Union security clauseUnion security clause

• Closed shopClosed shop • Union shopUnion shop • Financial core union memberFinancial core union member • Full union membershipFull union membership • Agency shopAgency shop • Union hiring hallUnion hiring hall • Preferential treatment clausePreferential treatment clause • Dues checkoff Dues checkoff

  • PowerPoint Presentation
  • Goals and Strategies: Management and Unions
  • Exhibit 4.1 Goals of the Company and the Union
  • Company Strategic Planning
  • Exhibit 4.2 Company Strategies in Labor Relations
  • Exhibit 4.3 Unfair Labor Practices of Smithfield Packing Company, Wilson, North Carolina
  • Tactics to Avoid Unionization
  • Positive Human Resource Management
  • Double-Breasting
  • Union Substitution
  • Unionized Companies’ Strategies
  • Union Strategic Planning
  • Strategic Planning Success for Unions
  • Exhibit 4.4 AFL-CIO’s Mission Statement
  • Exhibit 4.5 Excerpts from CWA’s Strategic Plan: 2006-2011
  • Exhibit 4.5 Excerpts from CWA’s Strategic Plan: 2006-2011 (cont’d)
  • Exhibit 4.6 Items from Win’s Strategic Plans
  • Exhibit 4.7 Labor Relations Organization: Dotted-Line Relationships
  • Exhibit 4.8 Management Organization at the Plant Level (Approximately 1,100 Hourly Employees)
  • Exhibit 4.9 Organizational Chart of an International Union
  • Exhibit 4.10 Organizational Chart for a Local Union
  • The Local Union
  • Government and Operation of the Local Union
  • Exhibit 4.11 Twelve Largest National and International Unions
  • Union Democracy
  • The National or International Union
  • The National or International Union (cont’d)
  • Slide 28
  • Slide 29
  • Slide 30
  • Slide 31
  • The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
  • Exhibit 4.12 Organization Chart of AFL-CIO
  • Slide 34
  • Use of Information Technology by Unions
  • Union Corruption and the Landrum-Griffin Act
  • Union Security
  • Union Security Provisions
  • Exhibit 4.14 An Example of a Union Shop Clause
  • Union Security Provisions (cont’d)
  • Executive Orders
  • Slide 42
  • Slide 43
  • Right-to-Work Laws: Controversy and Effects
  • Exhibit 4.16 Private Sector Average Weekly Pay by State and Right-to-Work Status, 2014
  • Exhibit 4.16 (cont’d)
  • Exhibit 4.17 Employees Who Are Union Members and Who Are Represented by Unions by State and Right-to-Work Status, 2014
  • Key Terms