HRM 6304 Unit I DB

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Analyze the evolution of the American labor movement. 1.1 Describe the American labor movement.

2. Examine the challenges for union members in the modern workplace.

2.1 Discuss the rationale for unions. 2.2 Identify possible issues related to union membership.

Required Unit Resources Chapter 1: Union-Management Relationships in Perspective, pp. 5–29 Chapter 2: The History of Labor-Management Relations, pp. 44–80 Unit Lesson Welcome! This course addresses the relationship between the management of an organization and the labor union of that organization. It focuses on the collective agreement that outlines the nature of the relationship the two parties have, including the social, political, and economic impact of the agreement and the challenges of administering it. That might sound complicated, but it is not. Think of this course as reviewing a divorce settlement. Two people fall in love and get married. The marriage license is essentially an agreement to be together as a couple. After some time, the partnership does not work out very well for both parties, so the partnership needs to be renegotiated. The two parties decide to end the marriage. The process of ending the marriage agreement is called divorce. You have two parties who both want to reach a settlement as to what is in their best interests before the final hearing. The two parties collectively work toward finding a solution that meets their needs—albeit typically through their lawyers. Nonetheless, a collective agreement is eventually reached. Just like labor agreements, divorce settlements typically have social, political, and economic implications, as those who have been through a divorce well know. During this course, we will refer to the scenario titled “Collective Bargaining Negotiation Scenario: Harper Container Company and the United Chemical and Plastic Workers Union” in Appendix A of the textbook. We will look at this case as we would look at a divorce. Before we examine the process of a collective bargaining agreement, let’s make some assumptions.

• The two parties have had a good relationship in the past. • The two parties want to maintain a good relationship. • There are other interests to consider. • Negotiations will remain honest and above board. • The two parties are interested in reaching a mutually satisfying agreement. • The two parties are interested in settling quickly.

Let’s consider the agreement between the Harper Container Company (HCC) and the United Chemical and Plastic Workers (UCPW). Here, we have an organization (HCC) that has an agreement with a union (UCPW). The two parties had a collective bargaining agreement (marriage), but the agreement has expired, and now it is time to renegotiate the agreement (divorce process).

UNIT I STUDY GUIDE Early Union Activity

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE Title

The previous relationship between HCC and UCPW was a good one. The company is recognized as a technology leader in the plastics field, but times have changed. Competition has entered the industry, inflation has risen, and the employees want the contract modified to reflect the changes since the last contract was negotiated. HCC is known as a company concerned about the welfare of the employees, which has resulted in employee relationships lasting to retirement. The contract between HCC and UCPW expired 2 months ago and needs to be renegotiated in order to meet the needs of both parties. One of the first steps in a collective bargaining agreement, just as in a divorce process, is to identify the parties that will participate in the negotiation. Management will represent the company (HCC), and the union will represent the employees (UCPW). If we want to get the best possible terms to the agreement, we will want a team of experts. Just as in a divorce, it is best to consult with experts if you want the best possible terms in the final decree. The management team should include a human resource management representative, as they would know about and have data related to hiring, terminations, complaints, employee costs, benefits, and various other items. Management would also want a finance expert, a lawyer, and a spokesperson. The union would also establish a team, including a member from the national union and members from among the employees—one of them being the union steward. The teams are developed with skills and experience in mind. In a divorce process, both parties also establish a team of individuals with appropriate skills and experience, including some consultants. For example, it might be wise to consult with a tax expert and financial planner as well as a divorce attorney to reach the best agreement.

Once the teams are established, data collection begins. The first step would be to review the previous contract. What worked? What did not work, and why? The parties will want to keep what did work and modify what did not with data to back up their recommended changes. Each team will want to anticipate what the other team wants to change and why and have a response ready for each issue. Identifying the issues is an important part of the process that

should not be overlooked or de-emphasized. It takes time and work, but it will result in a better process and a shorter negotiation time. It will be important to delegate issues to the experts for research and a potential response. For example, if we are the management team, we know UCPW wants an increase in wages and benefits, so we will need to prepare for that. We must know what the current wages are at HCC, in the local area, in the plastics industry, in recent union agreements, and in agreements in the same industry, in the same local area, and nationwide. We need to be clear about the current financial picture as well as financial projections for the next 5 years—bearing in mind the typical contract period is 3 years. The union team also needs to prepare to support the issues they will bring to the table by consulting with the national union on current agreement settlements and national averages in terms of wages, benefits, and costs. They will also want to be prepared to address the former contract in terms of grievances filed, resolved, and pending. In the HCC case, there are 50 grievances that have not been resolved. An analysis of these grievances could be beneficial to the negotiation process. Just as divorce teams identify issues and review current assets, income, and debt, so do the HCC and UCPW teams. Each team then identifies issues they want to propose for settlement and develops supporting data to prepare for negotiations. The better prepared the teams are, the better they can negotiate. Preparation is a challenging process that takes time and effort from all members of the team. It is far better to prepare for the worse than not to prepare and make an

Collective bargaining word cloud (Robwilson39, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE Title

agreement you cannot maintain. For example, although you want the house you raised your children in, if you cannot afford it, you will eventually lose it after the divorce. Collective bargaining is the joint effort of two parties to reach a mutually satisfying agreement and is much like the divorce process. In this unit, we will select our teams and start data gathering so we can prepare to negotiate. In the next unit, we will give notice and start the process. Hopefully, you will find the collective bargaining journey interesting and informative!

Reference Robwilson39. (n.d.). Collective bargaining word cloud (ID 143123529) [Illustration]. Dreamstime.

https://www.dreamstime.com/collective-bargaining-word-cloud-blue-background-collective- bargaining-word-cloud-image143123529

Suggested Unit Resources In order to access the following resource, click the link below. The resource below provides a deeper look at collective bargaining. You will learn what it is and how labor unions and employers use it to reach agreement about wages, benefits, and more. Gregg Learning. (2019, April 22). Collective bargaining [Video]. YouTube.

https://www.youtube.com/watch?v=le-2ebek8Lk A transcript and closed captioning are available once you access the video.

HRM 6304, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Analyze the evolution of the American labor movement. 1.1 Describe the American labor movement.

2. Examine the challenges for union members in the modern workplace.

2.1 Discuss the rationale for unions. 2.2 Identify possible issues related to union membership.

Required Unit Resources Chapter 1: Union-Management Relationships in Perspective, pp. 5–29 Chapter 2: The History of Labor-Management Relations, pp. 44–80 Unit Lesson Welcome! This course addresses the relationship between the management of an organization and the labor union of that organization. It focuses on the collective agreement that outlines the nature of the relationship the two parties have, including the social, political, and economic impact of the agreement and the challenges of administering it. That might sound complicated, but it is not. Think of this course as reviewing a divorce settlement. Two people fall in love and get married. The marriage license is essentially an agreement to be together as a couple. After some time, the partnership does not work out very well for both parties, so the partnership needs to be renegotiated. The two parties decide to end the marriage. The process of ending the marriage agreement is called divorce. You have two parties who both want to reach a settlement as to what is in their best interests before the final hearing. The two parties collectively work toward finding a solution that meets their needs—albeit typically through their lawyers. Nonetheless, a collective agreement is eventually reached. Just like labor agreements, divorce settlements typically have social, political, and economic implications, as those who have been through a divorce well know. During this course, we will refer to the scenario titled “Collective Bargaining Negotiation Scenario: Harper Container Company and the United Chemical and Plastic Workers Union” in Appendix A of the textbook. We will look at this case as we would look at a divorce. Before we examine the process of a collective bargaining agreement, let’s make some assumptions.

• The two parties have had a good relationship in the past. • The two parties want to maintain a good relationship. • There are other interests to consider. • Negotiations will remain honest and above board. • The two parties are interested in reaching a mutually satisfying agreement. • The two parties are interested in settling quickly.

Let’s consider the agreement between the Harper Container Company (HCC) and the United Chemical and Plastic Workers (UCPW). Here, we have an organization (HCC) that has an agreement with a union (UCPW). The two parties had a collective bargaining agreement (marriage), but the agreement has expired, and now it is time to renegotiate the agreement (divorce process).

UNIT I STUDY GUIDE Early Union Activity

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE Title

The previous relationship between HCC and UCPW was a good one. The company is recognized as a technology leader in the plastics field, but times have changed. Competition has entered the industry, inflation has risen, and the employees want the contract modified to reflect the changes since the last contract was negotiated. HCC is known as a company concerned about the welfare of the employees, which has resulted in employee relationships lasting to retirement. The contract between HCC and UCPW expired 2 months ago and needs to be renegotiated in order to meet the needs of both parties. One of the first steps in a collective bargaining agreement, just as in a divorce process, is to identify the parties that will participate in the negotiation. Management will represent the company (HCC), and the union will represent the employees (UCPW). If we want to get the best possible terms to the agreement, we will want a team of experts. Just as in a divorce, it is best to consult with experts if you want the best possible terms in the final decree. The management team should include a human resource management representative, as they would know about and have data related to hiring, terminations, complaints, employee costs, benefits, and various other items. Management would also want a finance expert, a lawyer, and a spokesperson. The union would also establish a team, including a member from the national union and members from among the employees—one of them being the union steward. The teams are developed with skills and experience in mind. In a divorce process, both parties also establish a team of individuals with appropriate skills and experience, including some consultants. For example, it might be wise to consult with a tax expert and financial planner as well as a divorce attorney to reach the best agreement.

Once the teams are established, data collection begins. The first step would be to review the previous contract. What worked? What did not work, and why? The parties will want to keep what did work and modify what did not with data to back up their recommended changes. Each team will want to anticipate what the other team wants to change and why and have a response ready for each issue. Identifying the issues is an important part of the process that

should not be overlooked or de-emphasized. It takes time and work, but it will result in a better process and a shorter negotiation time. It will be important to delegate issues to the experts for research and a potential response. For example, if we are the management team, we know UCPW wants an increase in wages and benefits, so we will need to prepare for that. We must know what the current wages are at HCC, in the local area, in the plastics industry, in recent union agreements, and in agreements in the same industry, in the same local area, and nationwide. We need to be clear about the current financial picture as well as financial projections for the next 5 years—bearing in mind the typical contract period is 3 years. The union team also needs to prepare to support the issues they will bring to the table by consulting with the national union on current agreement settlements and national averages in terms of wages, benefits, and costs. They will also want to be prepared to address the former contract in terms of grievances filed, resolved, and pending. In the HCC case, there are 50 grievances that have not been resolved. An analysis of these grievances could be beneficial to the negotiation process. Just as divorce teams identify issues and review current assets, income, and debt, so do the HCC and UCPW teams. Each team then identifies issues they want to propose for settlement and develops supporting data to prepare for negotiations. The better prepared the teams are, the better they can negotiate. Preparation is a challenging process that takes time and effort from all members of the team. It is far better to prepare for the worse than not to prepare and make an

Collective bargaining word cloud (Robwilson39, n.d.)

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE Title

agreement you cannot maintain. For example, although you want the house you raised your children in, if you cannot afford it, you will eventually lose it after the divorce. Collective bargaining is the joint effort of two parties to reach a mutually satisfying agreement and is much like the divorce process. In this unit, we will select our teams and start data gathering so we can prepare to negotiate. In the next unit, we will give notice and start the process. Hopefully, you will find the collective bargaining journey interesting and informative!

Reference Robwilson39. (n.d.). Collective bargaining word cloud (ID 143123529) [Illustration]. Dreamstime.

https://www.dreamstime.com/collective-bargaining-word-cloud-blue-background-collective- bargaining-word-cloud-image143123529

Suggested Unit Resources In order to access the following resource, click the link below. The resource below provides a deeper look at collective bargaining. You will learn what it is and how labor unions and employers use it to reach agreement about wages, benefits, and more. Gregg Learning. (2019, April 22). Collective bargaining [Video]. YouTube.

https://www.youtube.com/watch?v=le-2ebek8Lk A transcript and closed captioning are available once you access the video.