HRM 6304 VIII J

HRM 6304, Labor Relations and Collective Bargaining 1

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

6. Compare and contrast negotiation models, strategies, and tactics. 6.1 Compare and contrast labor relations in the public and private sectors. 6.2 Evaluate labor relations in other countries.

Required Unit Resources Chapter 13: Labor Relations in the Public Sector, pp. 651–685 Chapter 14: Labor Relations in Multinational Corporations and in Other Countries, pp. 702–746 Unit Lesson Welcome to Unit VIII! Here we are in our last unit of the course on management and labor unions and the collective bargaining process. In the previous unit, we looked at what happens if our team efforts are not successful and we must consider an arbitrator or the strike/lockout option. Strikes and lockouts are usually last resorts. Union members typically strike if they feel unjustly treated. They blame management for the current issues, or the organizational culture is such that it supports a walkout (e.g., the employees feel they are not being treated with respect or fairness). If we refer back to our case, Harper Container Company (HCC) and the United Chemical and Plastics Workers Union (UCPW), we know the organizational culture has a history of caring for the employees. This is underscored by the low turnover rates and employee longevity. However, why are 50 grievances unanswered? Blaming management might be the reason the union membership voted to strike if they do not get a raise, but if management is sincere in caring about the employees, they need to plan for a raise. The management team will have to demonstrate this caring culture by how they negotiate the contract. The tricky part will be getting the union membership to understand that the equipment upgrade is essential. Persuasion might not be too difficult given the upgrades are a part of a federal mandate. The harder part will be the reduction of 30 of the highest-paying jobs due to the equipment upgrade. Depending on how the management team can bargain with the other issues on the table will determine if the union membership decides to strike. There are options for union members if they strike because there are other plants in the local area where they can seek employment. The problem is when you leave one company, you start at the bottom at the new company in terms of seniority and leave time. The management team will need to highlight the advantages and convince the union membership to accept the final offer. Negotiations combine the art of persuasion with developing trusting relationships and offering convincing arguments as to why certain issues deserve attention and acceptance and others can be traded or tabled until the next contract.

UNIT VIII STUDY GUIDE Public Sector and Multinational Labor Relations

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE Title

One area to address is contract maintenance. Once both parties have reached an agreement and the union membership has approved, they have a contract they must work within for the next 3 to 5 years. Both parties must be familiar with the contract because those will be the terms of engagement or guidelines until the next negotiation period. Both parties must be aware of what the contract stipulates in terms of what can be negotiated during the lifetime of the contract and what cannot. In our HCC case, both parties need to be clear that when the equipment upgrade is made, the 30 employees will be moved to other positions to cover the 24/7 operations. If another reduction becomes necessary in a year or two, both parties must be clear as to what happens to those employees. The key to success during the life of the contract will depend on open and honest communication. Unions were very popular from the 1920s to the 1950s. Back then, the work environment was much more harsh, unsanitary, and unsafe. As times changed, so did the laws to protect workers, such as age restrictions on children working instead of going to school, protective gear, and machines to do the harder and more dangerous work. For example,

many coal miners in West Virginia would come home from work covered in black coal dust from head to toe and with no protective gear. Many died of black lung disease directly related to working in those mines. Today, coal miners are required to wear protective gear and can be terminated for not wearing it, and machines do most of the work of digging out the coal. In the past, children often started working in the mines at 15 years old. That simply would not happen today. In the 1950s, American unions were very powerful and had a voice in the government because they were so large and represented so many citizens. Today, unions do not have a voice in government.

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE Title

U.S. unions are often very different from those of other countries. For example, the United States is running about 13% union coverage whereas Mexico and Canada are closer to 30%. Countries like Finland, Sweden, and Belgium are 52–70% unionized. The government controls unions in Mexico, and the Labor Party controls unions in Great Britain. Unions have different rules and, like union shops here in the United States, the employees may or may not have a choice in joining the union. The teamsters were once very powerful in the United States, but situations have since changed. People got tired of the corruption and violence, laws changed, and union membership declined significantly. 50 years ago, most working people in the United States were union members; but back then, there were many more manufacturing jobs than there are now. Those jobs are gone and with them union membership. 50 years ago, the unions represented lower-class citizens, but this is not so anymore. Even today, in some states in the South, it is against the law to join a union—at least for some public-sector employees. On the other hand, in some states, there are still high concentrations of union employees: New York, Alaska, and Hawaii are examples. If it were not for the growth of unions in the public sector since the late 1960s, union membership would be much less than it is today.

In what types of jobs do we see unions? Those would be the low-paying, underappreciated jobs such as teachers, firefighters, police officers, public transportation drivers, and nurses. It is a sad fact that the least is paid to those we depend on the most. Not surprisingly, they will be the ones who will strike for better wages and better working conditions. In times of recession, there is more interest in unions, but until they recognize and represent every working person, membership will not increase significantly. Unions in the United States are trying to increase membership by making the appeal that labor rights (the right to form and join a union) is a basic human right. Unions are looking for public support of unions to fight the huge employer opposition that currently exists. What have you learned in this course? Hopefully, you now know more about the collective bargaining process. If you think of it in the same light as a divorce process, it may be easier to understand. You have two teams that are connected through a relationship, but the relationship is no longer working. It is far better for everyone involved if the negotiation process to change the relationship is a process of honesty and trust. The opposing teams must be respectful and work together toward a common solution rather than to fight, cheat, lie, and otherwise hurt each other. Bad behavior has consequences including sanctions and interference from outside agencies. This is true for both the collective bargaining process and the divorce process. In both cases, the courts can order the parties to go to mediation or arbitration. The best takeaway from this course is that either side cannot over prepare for collective bargaining. Both parties must review the last contract and know it inside and out. You want to know what did and did not work in the previous contract and why. In our HCC case, if we were on the management team, we would want to know why there are 50 grievances outstanding. Although they are not money-related issues, a grievance is an indication of a problem. The problem might be process or procedure related, but it is still a problem that warranted a grievance. What is the nature of the problem or problems, and how can they be fixed during this new contract period? The union wants management to address the 50 grievances in the union’s favor as a bargaining chip, but how is it that 50 cases got stacked up? That is an issue that must be resolved in the

HRM 6304, Labor Relations and Collective Bargaining 4

UNIT x STUDY GUIDE Title

current contract being negotiated. How can management improve the resolution process so that this issue of stacked grievances does not happen again? When preparing for negotiations, the teams need to look outside the organization to see what the rest of the industry is doing, what the community is doing, and what the trends are in recent labor contract settlements. Once they gather the data, they need to prepare a list of demands and justification for those demands based on the information gathered. It is also a good idea to prepare for the other party’s demands by being ready to counter their offer. Just as in a divorce, you want to know exactly what the other party is capable of delivering and be able to support your demands realistically. The teams need to look at the bigger picture and even look at the global picture when negotiating collective bargaining agreements. Many organizations move their operations overseas, so negotiation must take that possibility into account. The more prepared team stands the best chance of being the winning team.

Reference Holley, W. H., Jr., Ross, W. H., & Wolters, R. S. (2017). The labor relations process (11th ed.). Cengage

Learning. https://online.vitalsource.com/#/books/9781337025959

HRM 6304, Labor Relations and Collective Bargaining 1

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

6. Compare and contrast negotiation models, strategies, and tactics. 6.1 Compare and contrast labor relations in the public and private sectors. 6.2 Evaluate labor relations in other countries.

Required Unit Resources Chapter 13: Labor Relations in the Public Sector, pp. 651–685 Chapter 14: Labor Relations in Multinational Corporations and in Other Countries, pp. 702–746 Unit Lesson Welcome to Unit VIII! Here we are in our last unit of the course on management and labor unions and the collective bargaining process. In the previous unit, we looked at what happens if our team efforts are not successful and we must consider an arbitrator or the strike/lockout option. Strikes and lockouts are usually last resorts. Union members typically strike if they feel unjustly treated. They blame management for the current issues, or the organizational culture is such that it supports a walkout (e.g., the employees feel they are not being treated with respect or fairness). If we refer back to our case, Harper Container Company (HCC) and the United Chemical and Plastics Workers Union (UCPW), we know the organizational culture has a history of caring for the employees. This is underscored by the low turnover rates and employee longevity. However, why are 50 grievances unanswered? Blaming management might be the reason the union membership voted to strike if they do not get a raise, but if management is sincere in caring about the employees, they need to plan for a raise. The management team will have to demonstrate this caring culture by how they negotiate the contract. The tricky part will be getting the union membership to understand that the equipment upgrade is essential. Persuasion might not be too difficult given the upgrades are a part of a federal mandate. The harder part will be the reduction of 30 of the highest-paying jobs due to the equipment upgrade. Depending on how the management team can bargain with the other issues on the table will determine if the union membership decides to strike. There are options for union members if they strike because there are other plants in the local area where they can seek employment. The problem is when you leave one company, you start at the bottom at the new company in terms of seniority and leave time. The management team will need to highlight the advantages and convince the union membership to accept the final offer. Negotiations combine the art of persuasion with developing trusting relationships and offering convincing arguments as to why certain issues deserve attention and acceptance and others can be traded or tabled until the next contract.

UNIT VIII STUDY GUIDE Public Sector and Multinational Labor Relations

HRM 6304, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE Title

One area to address is contract maintenance. Once both parties have reached an agreement and the union membership has approved, they have a contract they must work within for the next 3 to 5 years. Both parties must be familiar with the contract because those will be the terms of engagement or guidelines until the next negotiation period. Both parties must be aware of what the contract stipulates in terms of what can be negotiated during the lifetime of the contract and what cannot. In our HCC case, both parties need to be clear that when the equipment upgrade is made, the 30 employees will be moved to other positions to cover the 24/7 operations. If another reduction becomes necessary in a year or two, both parties must be clear as to what happens to those employees. The key to success during the life of the contract will depend on open and honest communication. Unions were very popular from the 1920s to the 1950s. Back then, the work environment was much more harsh, unsanitary, and unsafe. As times changed, so did the laws to protect workers, such as age restrictions on children working instead of going to school, protective gear, and machines to do the harder and more dangerous work. For example,

many coal miners in West Virginia would come home from work covered in black coal dust from head to toe and with no protective gear. Many died of black lung disease directly related to working in those mines. Today, coal miners are required to wear protective gear and can be terminated for not wearing it, and machines do most of the work of digging out the coal. In the past, children often started working in the mines at 15 years old. That simply would not happen today. In the 1950s, American unions were very powerful and had a voice in the government because they were so large and represented so many citizens. Today, unions do not have a voice in government.

HRM 6304, Labor Relations and Collective Bargaining 3

UNIT x STUDY GUIDE Title

U.S. unions are often very different from those of other countries. For example, the United States is running about 13% union coverage whereas Mexico and Canada are closer to 30%. Countries like Finland, Sweden, and Belgium are 52–70% unionized. The government controls unions in Mexico, and the Labor Party controls unions in Great Britain. Unions have different rules and, like union shops here in the United States, the employees may or may not have a choice in joining the union. The teamsters were once very powerful in the United States, but situations have since changed. People got tired of the corruption and violence, laws changed, and union membership declined significantly. 50 years ago, most working people in the United States were union members; but back then, there were many more manufacturing jobs than there are now. Those jobs are gone and with them union membership. 50 years ago, the unions represented lower-class citizens, but this is not so anymore. Even today, in some states in the South, it is against the law to join a union—at least for some public-sector employees. On the other hand, in some states, there are still high concentrations of union employees: New York, Alaska, and Hawaii are examples. If it were not for the growth of unions in the public sector since the late 1960s, union membership would be much less than it is today.

In what types of jobs do we see unions? Those would be the low-paying, underappreciated jobs such as teachers, firefighters, police officers, public transportation drivers, and nurses. It is a sad fact that the least is paid to those we depend on the most. Not surprisingly, they will be the ones who will strike for better wages and better working conditions. In times of recession, there is more interest in unions, but until they recognize and represent every working person, membership will not increase significantly. Unions in the United States are trying to increase membership by making the appeal that labor rights (the right to form and join a union) is a basic human right. Unions are looking for public support of unions to fight the huge employer opposition that currently exists. What have you learned in this course? Hopefully, you now know more about the collective bargaining process. If you think of it in the same light as a divorce process, it may be easier to understand. You have two teams that are connected through a relationship, but the relationship is no longer working. It is far better for everyone involved if the negotiation process to change the relationship is a process of honesty and trust. The opposing teams must be respectful and work together toward a common solution rather than to fight, cheat, lie, and otherwise hurt each other. Bad behavior has consequences including sanctions and interference from outside agencies. This is true for both the collective bargaining process and the divorce process. In both cases, the courts can order the parties to go to mediation or arbitration. The best takeaway from this course is that either side cannot over prepare for collective bargaining. Both parties must review the last contract and know it inside and out. You want to know what did and did not work in the previous contract and why. In our HCC case, if we were on the management team, we would want to know why there are 50 grievances outstanding. Although they are not money-related issues, a grievance is an indication of a problem. The problem might be process or procedure related, but it is still a problem that warranted a grievance. What is the nature of the problem or problems, and how can they be fixed during this new contract period? The union wants management to address the 50 grievances in the union’s favor as a bargaining chip, but how is it that 50 cases got stacked up? That is an issue that must be resolved in the

HRM 6304, Labor Relations and Collective Bargaining 4

UNIT x STUDY GUIDE Title

current contract being negotiated. How can management improve the resolution process so that this issue of stacked grievances does not happen again? When preparing for negotiations, the teams need to look outside the organization to see what the rest of the industry is doing, what the community is doing, and what the trends are in recent labor contract settlements. Once they gather the data, they need to prepare a list of demands and justification for those demands based on the information gathered. It is also a good idea to prepare for the other party’s demands by being ready to counter their offer. Just as in a divorce, you want to know exactly what the other party is capable of delivering and be able to support your demands realistically. The teams need to look at the bigger picture and even look at the global picture when negotiating collective bargaining agreements. Many organizations move their operations overseas, so negotiation must take that possibility into account. The more prepared team stands the best chance of being the winning team.

Reference Holley, W. H., Jr., Ross, W. H., & Wolters, R. S. (2017). The labor relations process (11th ed.). Cengage

Learning. https://online.vitalsource.com/#/books/9781337025959