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CHAPTER 16

THE SUPERVISOR LABOR RELATIONS, AND LEGAL ISSUES

Explain what is meant by labor relations
Trace the development of unions in the United States and explain why union membership is declining
Name and explain some of the basic laws governing labor relations
Describe union principles and objectives and discuss the methods used to achieve those objectives

LEARNING OBJECTIVES

Name three things that a supervisor must know to live with the union agreement
State the laws providing equal employment opportunity for protected groups of employees
Name and explain the different forms of unlawful discrimination
Describe the most commonly provided employee benefits

LEARNING OBJECTIVES

Relationship between an employer and unionized employees
Also known as union–management relations or industrial relations
Labor union: Organization of workers banded together to achieve economic goals

LABOR RELATIONS

Early union activities
Craft unions: Workers in a specific skill, craft, or trade
Knights of Labor - Formed by several craft unions joining together
American Federation of Labor (AFL) - Had a great impact during World War I and World War II

DEVELOPMENT OF UNIONS IN THE UNITED STATES

Period of rapid union growth
Industrial unions: Composed of all the workers in an industry
Broke away from the AFL to form the Congress of Industrial Organizations (CIO)

DEVELOPMENT OF UNIONS IN THE UNITED STATES

Union membership has been steadily declining since 1955
Shift from manufacturing jobs to service work
Educated and technologically oriented service workers being less interested in union contracts
Pressure on U.S. firms to cut costs
Growing emphasis on part-time and temporary workers and telecommuting
Growth of small firms and traditional union issues being adopted as government regulation

DECLINE OF UNIONS IN THE UNITED STATES

BASIC LAWS GOVERNING LABOR RELATIONS

Laws	Coverage	Basic Provisions	Agencies
National Labor Relations Act (NLRA) as amended (Wagner Act)	Nonmanagerial employees in nonagricultural private firms not covered by the Railway Labor Act Postal employees	Asserts the right of employees to form or join labor organizations, to bargain collectively, and to engage in other concerted activities such as strikes, picketing, and boycotts Establishes unfair labor practices that employers cannot engage in	National Labor Relations Board (NLRB)
Labor–Management Relations Act (LMRA) as amended (Taft-Hartley Act)	Same as above	Amended NLRA Permits states to pass laws prohibiting compulsory union membership Sets up methods to deal with strikes affecting national health and safety	Federal Mediation and Conciliation Service
Labor–Management Reporting and Disclosure Act (Landrum-Griffin Act)	Same as above	Amended NLRA and LMRA Guarantees individual rights of union members Requires financial disclosures by unions	U.S. Department of Labor

Acts management must not commit against the workers and the union
Closed shop: Prospective employees must be members of the union before they can be employed
Union shop: All employees must join the union within a specified period after starting employment

UNFAIR PRACTICES

Agency shop: All employees must pay union dues even if they choose not to join the union
Maintenance-of-membership clause: Employee must maintain union membership as a condition of employment

UNFAIR PRACTICES

Right-to-work laws: Prohibits union shops in the state and protects employees’ rights to join or refuse to join a union without being fired
Employees’ bill of rights: Protects employees from possible abuse by unscrupulous managers and union leaders

RIGHT-TO-WORK LAWS AND EMPLOYEES’ BILL OF RIGHTS

EXHIBIT 16.4 - RIGHTS OF EMPLOYEES

EXHIBIT 16.5 - UNFAIR LABOR PRACTICES OF UNIONS

EXHIBIT 16.6 - UNFAIR LABOR PRACTICES OF EMPLOYERS

Enforces the basic labor laws
Hold an election to establish the bargaining agent for employees of a given firm
Investigate charges of unfair labor practices
Issue complaints against management or labor
Prosecute unfair labor practices and determine guilt
Assess fines and prison sentences
Ask federal courts to control activities of both management and labor by citing them for contempt

NATIONAL LABOR RELATIONS BOARD (NLRB)

Principles
Strength through unity and equal pay for the same job
Employment practices based on seniority
Objectives
Higher pay and shorter hours of work on a daily, weekly, or annual basis
Improved working conditions, physical and psychological
Improved security, of the person and of the job

UNION PRINCIPLES AND OBJECTIVES

METHODS OF ATTAINING OBJECTIVES

Get 50% or more employees to sign authorization cards
Union authorization card: Authorizes a union to be an employee’s collective bargaining representative
Seek voluntary recognition from the employer
If unsuccessful, file a Petition for Election with the NLRB
NLRB notifies employer of election and sets a date
Employer can file objections to the petition

STEPS IN THE UNION ORGANIZING PROCESS

Organizing campaign
Employer and the union try to persuade employees on how they should vote
Employers must maintain status quo and follow the T.I.P.S. rule - Do not Threaten, Interrogate, Promise or engage in Spying

STEPS IN THE UNION ORGANIZING PROCESS

Election day - NLRB conducts the election
If union wins, it becomes the certified bargaining representative of the employees
If union does not win, a one year election bar prevents any union from seeking to represent the same group of workers for the next 12 months

STEPS IN THE UNION ORGANIZING PROCESS

Appeals used by organizers
Job protection and interference running
Participation in management
Economic gains
Recognition and participation
Things to do before the union calls
Treat supervisors right, keep them well informed, and make them al part of the management team

ORGANIZING EMPLOYEES

Ensure the wage–benefit package is up to date and competitive
Review jobs to see if they need to be upgraded
Ensure employee facilities are well-maintained
Maintain performance records and have programs for boosting performance, loyalty, and morale
Be firm but fair when imposing discipline

ORGANIZING EMPLOYEES

Provide a grievance committee for worker complaints
Be alert for any complaints of abuse or favoritism
Establish clear lines for two-way communications
Have clear and well-communicated work rules
Ensure that policies and work rules are not anti-union

ORGANIZING EMPLOYEES

Inform employees:
That signing a union authorization card does not mean they must vote for the union
Of the disadvantages of belonging to the union
That you prefer to deal with them directly
About any prior experience you had with unions
That a union cannot obtain more than what an employer is able to give

THINGS SUPERVISORS MAY DO WHEN A UNION TRIES TO ORGANIZE THEIR COMPANY

How their wages and benefits compare with those in unionized or nonunionized concerns in the area
Of any misleading statements made by the organizer
Of any known undesirable elements active in the union
Reply to union attacks on company policies

THINGS SUPERVISORS MAY DO WHEN A UNION TRIES TO ORGANIZE THEIR COMPANY

Treat union and nonunion employees alike
Administer discipline without regard to the union membership status of the concerned employee
Enforce plant rules impartially
Tell employees that:
They are free to join or not to join any organization
Their personal and job security will be determined by the economic prosperity of the company

THINGS SUPERVISORS MAY DO WHEN A UNION TRIES TO ORGANIZE THEIR COMPANY

Exclusive bargaining agent: Has the exclusive right to deal with management on behalf of employees’ terms and conditions of employment
Certified union - Has the sole right and legal responsibility to represent all of the employees in their dealings with management

BECOMING RECOGNIZED AS THE EMPLOYEES’ EXCLUSIVE BARGAINING AGENT

Collective bargaining: Conferring in good faith over the terms and conditions of employment
If no agreement is reached, an impasse occurs
Options to deal with an impasse
Mediator: Tries to bring the parties together to help them reach an agreement
Arbitrator: Makes a decision binding on both parties
Union can go on strike or management can stage a lockout

ENGAGING IN COLLECTIVE BARGAINING

Strike: When employees withhold their services from an employer
Picketing: Walking back and forth outside the place of employment, carrying a sign
Lockout: Closing of a company’s premises to the employees and refusing to let them work

CONDUCTING A STRIKE OR LOCKOUT

Prepared when an accord has been reached to bind the company, union, and workers to specific clauses in it
Covers the following areas
Union recognition, wages, and benefits
Vacation, holidays, working conditions, layoffs, and rehiring
Management prerogatives or rights
Hours of work and seniority, grievance and arbitration procedures
Renewal clause

COLLECTIVE BARGAINING AGREEMENT OR CONTRACT

SUPERVISORS’ RIGHTS UNDER THE AGREEMENT

Decide what work is to be done and how, when, and where it will be done
Determine optimum number of workers to do the work safely and who will do each job
Instruct, supervise, and commend employees in their work performance
Require work performance and behavior to meet minimum standards
Recommend promotions and pay increases
Administer discipline

Union steward: Union member elected by other members to represent their interests in relations with management
Seniority: Employee’s length of service in a company
Provides the basis for promotion and other benefits
Grievance procedure: Formal way of handling employees’ complaints

UNION STEWARD, ROLE OF SENIORITY, AND GRIEVANCE PROCEDURES

EXHIBIT 16.11 - TYPICAL GRIEVANCE PROCEDURE IN A UNIONIZED ORGANIZATION

LEGAL INFLUENCES ON EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION

Laws	Basic requirements
Section 1981 of Civil Rights Act of 1866	Prohibits racial discrimination in employment
Title VII of Civil Rights Act of 1964	Prohibits employment discrimination based on race, color, religion sex, or national origin Requires employers to provide reasonable accommodation for sincerely-held religious beliefs
Executive Order 11246 of 1965, as amended	Prohibits employment discrimination based on race, sex, color, religion, or national origin Requires contractors employing 50 or more workers to develop affirmative action plans (AAPs) when contracts exceed $50,000 a year
Age Discrimination in Employment Act of 1967, as amended	Prohibits employment discrimination against persons over age 40
Vocational Rehabilitation Act of 1973	Prohibits employment discrimination against qualified handicapped persons, requires reasonable accommodation, and development of AAPs

LEGAL INFLUENCES ON EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION

Laws	Basic requirements
Vietnam Era Veterans’ Assistance Act of 1974	Requires contractors to develop AAPs to recruit and employ qualified disabled veterans and veterans of the Vietnam War
Pregnancy Discrimination Act of 1978	Prohibits discrimination on the basis of pregnancy, child birth, and related medical conditions
Immigration Reform and Control Act of 1986	Prohibits recruiting, hiring, or referring aliens who are not eligible to work in the United States Prohibits employment discrimination based on national origin or citizenship
Americans with Disabilities Act of 1990, as amended by the Americans with Disabilities Act Amendments Act of 2008	Prohibits employment discrimination against qualified individuals with a disability and requires reasonable accommodation Prohibits discrimination against those who have a history of disability, are perceived as disabled, or who are associated with a person with a disability

LEGAL INFLUENCES ON EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION

Laws	Basic requirements
Civil Rights Act of 1991	Amends Title VII and the Americans with Disabilities Act to allow for punitive and compensatory damages in cases of intentional discrimination and more extensive use of jury trials
The Uniformed Services Employment & Reemployment Rights Act of 1994	Prohibits employment discrimination because of an individual’s service in the U.S. armed forces Requires reinstatement of employees returning from active military service to be restored to the position the employee would have attained had the employment relationship continued without disruption
Ledbetter Fair Pay Act of 2009	Amends Title VII to virtually eliminate the statute of limitation for pay claims A pay claim is viable if a tainted paycheck was issued during the charge filing period, regardless of when the discriminatory act occurred
Genetic Information Non-discrimination Act (GINA)	Prohibits employers from using genetic information when making employment decisions

Enforces EEO laws, and receives and investigates charges of discrimination
Issues orders to stop violations and may go to a U.S. District Court to enforce its decrees
Affirmative action programs (AAPs): Put the principle of equal employment opportunity into practice

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC)

Disparate treatment: Victim suffered an adverse employment action because of the victim’s race, color, religion, gender, national origin or other protected class
Disparate impact: Employer’s facially neutral employment policy or practices has a statistically significant adverse effect on a protected group

TYPES OF DISCRIMINATION

Unwelcome sexual advances that create a hostile, offensive, or intimidating work setting
Consequences
Submission to the conduct is made a condition of employment
Submission to, or rejection of, the request is used in making employment decisions involving the employee
Intent is to interfere with the employee’s work performance or create a hostile work environment

SEXUAL HARASSMENT

LEGALLY REQUIRED BENEFITS

16–*

EXHIBIT 16.13 - SHOULD JOBS OF COMPARABLE WORTH RECEIVE COMPARABLE PAY?

Fair Labor Standards Act (FLSA)
Requires at least the minimum wage for hours worked
Exempt employees: Are not covered by the provisions of the FLSA

GOVERNMENTAL FACTORS AFFECTING WAGE RATES

The Davis-Bacon Act and the Walsh-Healey Act
Impact wage rates paid by private business that have certain types of contracts with the federal government
Actual rate of pay is set by the Secretary of Labor
Prevailing wage rate: Approximates the union wage scale for the area in the given type of work

GOVERNMENTAL FACTORS AFFECTING WAGE RATES

Actual amount of compensation is determined by the relative strength of the union and the employer
Union-free employers offer wages and benefits similar to those required by collective bargaining agreements in the recruiting area
In order to remain competitive in the labor market

HOW COLLECTIVE BARGAINING AFFECTS WAGE RATES

Seniority
Sexual harassment
Strike
Unfair labor practices
Union authorization card
Union shop
Union steward

IMPORTANT POINTS

Labor union
Lockout
Maintenance-of-membership clause
Mediator
Nonexempt employees
Picketing
Prevailing wage rate
Right-to-work laws

Craft unions
Employee associations
Employees’ bill of rights
Exclusive bargaining agent

IMPORTANT POINTS

Affirmative action programs (aaps)
Agency shop
Agreement or contract
Arbitrator
Closed shop
Collective bargaining
Comparable worth or pay equity

IMPORTANT POINTS

Exempt employees
Experience rating
Grievance procedure
Industrial unions
Labor relations or union–management relations or industrial relations