HRM 4570 ILR Homework 2

15HRM4570ILRCh9.1ContractClausesOnlineLecture2019-20audio.pptx

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Chapter 9.1

Contract Clauses and Their Administration

McGraw-Hill/Irwin

Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 9 Contract Clauses and Their Administration Part 1

The primary objective of most U.S. unions is to negotiate contracts with employers that specify wages, hours, and other terms and conditions of employment. The labor relations processes described in the previous chapters—union organizing, bargaining, and dispute resolution—largely lead the parties to such a contract. This chapter describes the types of clauses that are frequently found in union contracts and also how disputes over the application of these clauses are resolved.

This chapter describes the major elements of traditional union contracts in U.S. labor relations, including the grievance procedure that is used to administer contracts by enforcing and resolving disputes over clauses in the rest of the contract. Particular attention is paid to employee rights and obligations, job rights and obligations, union rights and obligations, as well as management rights and obligations.

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Understand the nature of U.S. union contracts

Explain important contractual provisions that attach rights and obligations to employees, jobs, unions, and employers

Outline how grievances are resolved – that is, how contracts are administered

Learning Objectives

The learning objective of chapter 9 are

1st. Understand the nature of U.S. union contracts.

2nd. Explain important contractual provisions that attach rights and obligations to employees, jobs, unions, and employers.

3rd. Outline how grievances are resolved—that is, how contracts are administered.

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Discuss the importance of grievance arbitration in U.S. labor relations

Analyze the pressures for changing the nature of U.S. union contracts and how they are administered

Learning Objectives

4th. Discuss the importance of grievance arbitration in U.S. labor relations.

5th. Analyze the pressures for changing the nature of U.S. union contracts and how they are administered.

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It is believed that workplace justice and efficiency are best achieved through written workplace rules enforced by private system of workplace dispute resolution

Under the employment-at-will doctrine, employers are free to establish whatever terms and conditions for employment to discharge workers at any time

Unions have long sought to protect workers by restricting this absolute authority

The result is detailed, legally enforceable union contracts enforced by grievance arbitration

Introduction

Contracts are central to U.S. labor relations because of the belief that workplace justice and efficiency are best achieved through written workplace rules enforced by a private system of workplace dispute resolution.

Under the employment-at-will doctrine, employers are generally free to establish whatever terms and conditions of employment they desire and to discharge workers at any time (and employees are free to quit at any time).

Unions have long sought to protect workers by restricting this absolute authority.

The result is detailed, legally enforceable union contracts enforced by grievance arbitration.

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Workers fought for workplace justice in the early decades of the 1900s

Frequently tried to force their employers to follow impartial rules:

Wages that were based on jobs rather than unfair manipulation of piece rates

Promotions and layoffs based on seniority rather than managerial favoritism and discrimination

This was a way of “introducing civil rights into industry requiring that management be conducted by rule rather than by arbitrary decision”

U.S. Union Contracts

In the early decades of the 1900s, workers introduced civil rights into the industries requiring management to be conducted by rule rather than by arbitrary decision. An alternative quest for workplace justice focused on shop floor militancy and union control of work standards backed up by spontaneous strikes and slowdowns.

Many union and corporate leaders preferred the rules-based approach, which supported management’s desire for stability and discipline and also fulfilled union leaders’ needs for countering managerial authority without having to resort to wildcat strikes that could undermine their own leadership positions.

Workers frequently tried to force their employers to follow impartial rules:

Wages that were based on jobs rather than unfair manipulation of piece rates

Promotions and layoffs based on seniority rather than managerial favoritism and discrimination

This was a way of “introducing civil rights into industry requiring that management be conducted by rule rather than by arbitrary decision”

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Today’s union contracts

Legally enforceable documents that specify the laws of the workplace in great detail

Most contracts have a duration of three years

Some contracts include a reopener clause by which the parties can reopen the contract during its life to negotiate wage or benefit adjustments

Most contracts are renegotiated upon expiration

U.S. Union Contracts

Today’s union contracts

Legally enforceable documents that specify the laws of the workplace in great detail

Most contracts have a duration of three years

Some contracts include a reopener clause by which the parties can reopen the contract during its life to negotiate wage or benefit adjustments

Most contracts are renegotiated upon expiration

Here is a cartoon about union contract.

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The centerpiece of U.S. labor relations has been union contracts that specify the rights and responsibilities of employees

The U.S. labor relation system revolves around these contracts

Despite the detailed nature of many contract clauses, they can never anticipate or remove every ambiguity for all scenarios that will arise during the life of the contract

Introduction

The centerpiece of U.S. labor relations has been union contracts that specify the rights and responsibilities of employees

The U.S. labor relation system revolves around these contracts

Despite the detailed nature of many contract clauses, they can never anticipate or remove every ambiguity for all scenarios that will arise during the life of the contract

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Contract administration - Interpreting, applying, and resolving conflicts regarding collective bargaining agreements

It is critical process in U.S. labor relations and involves rights disputes

Rights disputes - Disagreements over whether someone’s rights as specified in the contract have been violated

Introduction

Interpreting, applying, and resolving conflicts regarding collective bargaining agreements are called contract administration and are a critical process in U.S. labor relations.

It is critical process in U.S. labor relations and involves rights disputes

Contract administration involves rights disputes. Rights disputes are disagreements over whether someone’s rights as specified in the contract have been violated; rights disputes are grievances—conflicts over the administration (that is, the application and interpretation) of the contract.

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Table 9.1 - The Major Components of Traditional U.S. Union Contract

Table 9.1 lists the major components of traditional U.S. union contracts.

Employee rights include:

Just discipline and discharge.

Seniority rights in layoffs, promotions, etc.

Compensation(benefits, call-in pay, etc.)

Fair hearing through the grievance procedure

Employee rights obligations include:

Obey work rules

Follow supervisor’s orders

Abide by the contract

Accept arbitrators’ awards

Job Rights include:

Job holders entitled to a certain wage rate

Specific tasks must be done within the bargaining unit and by certain jobs

Job Rights obligations include:

Fulfill job standards

Union Rights include:

Exclusive bargaining agent

Union leader access to the workplace

Union bulletin board in the workplace

Shop stewards

Union security and dues checkoff clauses

Union Rights obligations include:

Abide by the contract, including not striking over grievances

Accept arbitrators’ awards

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Table 9.1 - The Major Components of Traditional U.S. Union Contract

Management rights include:

Hire and fire (with just cause)

Determine job content and workforce size

Establish production standards and rules of conduct

Decide what to produce and how and where to make it

Management obligations include:

Abide by the contract, including not making unilateral changes

Just cause discipline and discharge

Safety standards

Accept arbitrator’s awards

The grievance procedure includes 3 steps

Step 1: Employees, the union, and management meet to resolve disputes over the application and enforcement of the contract

Step 2: Typically a multistep procedure in which unresolved grievances are appealed to higher levels in the organization

Step 3: The final step is frequently binding rights arbitration

Others include:

Contracts are legally enforceable (in the United States)

Contracts are usually several years in duration

The 4 major components of traditional U.S. union contracts include: A. Employee rights B. Management rights C. Job Rights D. Union rights E. All of the above.

Question 1

Let’s try two practice questions. The 4 major components of traditional U.S. union contracts include

The 4 major components of traditional U.S. union contracts include: A. Employee rights B. Management rights C. Job Rights D. Union rights E. All of the above.

Question 1

That’s right. The answer is E. All of the above.

The 4 major components of traditional U.S. union contracts include:

Employee rights Management rights Job Rights Union rights

The typical collective bargaining agreement covers a(n) _________________ period. A. 1 year B. 5 year C. 3 year D. Open-ended.

Question 2

Question 2 The typical collective bargaining agreement covers how many years?

The typical collective bargaining agreement covers a(n) _________________ period. A. 1 year B. 5 year C. 3 year D. Open-ended.

Question 2

The answer is C. 3 years. Most contracts have a duration of three years.

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Four types of employee rights are frequently granted in union contracts:

1. Just cause discipline and discharge—specify that employees can be disciplined and discharged only for “cause” or “just cause;” employees have the right to insist that there be valid, job-related reasons for discipline or dismissal; this is of obvious importance for both employees and employers.

2. Seniority rights— length of employment with the employer is an objective union standard to prevent favoritism, manipulation, and abuse; it is widely used in union contracts as a criterion for allocating employment opportunities; more likely to be the sole factor for layoffs than for promotions or transfers.

Employee Rights and Obligations

Following are the four types of employee rights that are frequently granted in union contracts:

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Four types of employee rights are frequently granted in union contracts:

3. Compensation—unionized workers are significantly more likely than nonunion employees to receive benefits such as health insurance, pensions, life insurance, and the like.

4. Grievance procedures—specify that employees are entitled to challenge managerial actions that they feel violate their rights under the contract; employees are granted the right to a fair hearing when there is a workplace problem.

Employee Rights and Obligations

3. Compensation—unionized workers are significantly more likely than nonunion employees to receive benefits such as health insurance, pensions, life insurance, and the like.

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Employees can be disciplined and discharged only for “cause” or “just cause”

Employees have the right to insist that there be valid, job-related reasons for discipline or dismissal

Employee Rights and Obligations

Employees can be disciplined and discharged only for “cause” or “just cause”

What does just cause mean?

Just cause discipline or dismissal there are valid, job-related reasons for discipline or dismissal

Employees have the right to insist that there be valid, job-related reasons for discipline or dismissal

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A second category of employee rights pertains to seniority

A traditional union objective is to replace arbitrary or discriminatory treatment of workers with an objective standard to prevent favoritism, manipulation, and abuse

Widely used in union contracts as a criterion for allocating employment opportunities

Factor in promotions and transfers with more senior employees having priority over less senior ones

Employee Rights and Obligations

A second category of employee rights pertains to seniority

A traditional union objective is to replace arbitrary or discriminatory treatment of workers with an objective standard to prevent favoritism, manipulation, and abuse

Widely used in union contracts as a criterion for allocating employment opportunities

Factor in promotions and transfers with more senior employees having priority over less senior ones

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Third category of employee rights: Compensation

Unionized workers are more likely than nonunion employees to receive benefits

Health insurance, pensions, life insurance, and the like

Numerous collective bargaining agreements contain provisions pertaining to overtime compensation, premium pay for weekends, and rest periods among others

A majority of private sector contracts give employees the right to reporting pay and call-in pay

Employee Rights and Obligations

Third category of employee rights: Compensation

Unionized workers are more likely than nonunion employees to receive benefits

Such as Health insurance, pensions, life insurance, and the like

Numerous collective bargaining agreements contain provisions pertaining to overtime compensation, premium pay for weekends, and rest periods among others

A majority of private sector contracts give employees the right to reporting pay and call-in pay

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U.S. union contract contains a grievance procedure

Employees are entitled to challenge managerial actions that they feel violate their rights under the contract

The grievance procedure is almost always binding arbitration

Through the grievance procedure, union contract grant employees the right to a fair hearing when there is a workplace problem

Employee Rights and Obligations

U.S. union contract contains a grievance procedure

Employees are entitled to challenge managerial actions that they feel violate their rights under the contract

The grievance procedure is almost always binding arbitration

Through the grievance procedure, union contract grant employees the right to a fair hearing when there is a workplace problem

We have come to the end of our lecture today. If you have any questions, please feel free to email me.

See you next class!