Human Resource Management Unit VII Q1

14-1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of

Human Resource Management 4th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

CHAPTER 14

Collective Bargaining and Labor Relations

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Figure 14.1: 10 Largest Unions in the United States

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Goals of Management

• Management goals are to increase the organization’s profits. Managers tend to prefer options that lower costs and raise output.

• When an employer has recognized a union, management’s goals continue to emphasize restraining costs and improving output.

• Managers prefer to keep their organization’s operations flexible. In their labor relations, managers prefer to:

– Limit increases in wages and benefits, and

– Retain as much control

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Goals of Labor Unions

• Labor unions have the goals of obtaining pay and working conditions that satisfy their members and of giving members a voice in decisions that affect them.

• They obtain these goals by gaining power in numbers.

• Unions want to influence the way pay and promotions are determined.

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Goals of Labor Unions (continued)

Checkoff Provision

• Contract provision under which the employer, on behalf of the union, automatically deducts union dues from the employees’ paychecks.

Membership Security

• Closed shop

• Union shop

• Agency shop

• Maintenance of membership

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Laws Affecting Labor Relations

National Labor Relations Act (NLRA) of 1935

Taft-Hartley Act of 1947

Landrum-Griffin Act of 1959

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The Process of Organizing

Signing authorization cards

Petition for election

Election campaign

Election and certification

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Table 14.1: What Supervisors Should and Should Not Do to Discourage Unions

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Union Strategies

• Organizers call or visit employees at home to talk about issues like pay and job security.

• Offer workers associate union membership.

• Conduct corporate campaigns.

• Negotiate employer neutrality and card-check provisions into a contract.

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Collective Bargaining

• In collective bargaining a union negotiates on behalf of its members with management representatives to arrive at a contract defining: – Recognition

– Management Rights

– Union Security

– Compensation and Benefits

– Grievance Procedure

– Employee Security

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Bargaining Over New Contracts

Distributive Bargaining

Integrative Bargaining

Attitudinal Bargaining

Intraorganizational Bargaining

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When Bargaining Breaks Down

Strikes

• Strike: a collective decision by union members not to work until certain demands or conditions are met.

Alternatives to Strikes

• Mediation

• Fact Finder

• Arbitration

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Figure 14.7: Steps in an Employee- Initiated Grievance Procedure

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Labor-Management Cooperation

Employee involvement in decision making

Self-managing employee teams

Labor-management problem-solving teams

Broadly defined jobs

Sharing of financial gains and business information with employees

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Summary

• A union is an organization formed for the purpose of representing its members in resolving conflicts with employers.

• Labor relations is the management specialty emphasizing skills that managers and union leaders can use to minimize costly forms of conflict and to seek win-win solutions to disagreements.

• Management goals are to increase the organization’s profits. Managers generally expect that unions will make these goals harder to achieve.