Business Business in in Action Action 7e 7e Bovée/Th Bovée/Th
Jan 12, 2016
Business in Business in Action 7e Action 7e Bovée/ThillBovée/Thill
Business in Business in Action 7e Action 7e Bovée/ThillBovée/Thill
Labor RelationsLabor Relations
Chapter 12Chapter 12
Learning Objectives
1. Explain the role of labor unions and contrast the perspectives of employees and employers on the issue of unionization
2. Identify the three most important pieces of labor relations legislation enacted in the 20th century
3. Explain how unions are structured and describe the organizing process
12-3Copyright © 2015 Pearson Education, Inc.
Learning Objectives
4. Describe the collective bargaining process
5. Explain the procedures for addressing employee grievances and arbitrating disputes
6. Characterize the ongoing conflict over union organizing efforts
12-4Copyright © 2015 Pearson Education, Inc.
The Role of Labor Unions
• Labor Relations The relationship between organized labor and
management (in its role as the representative of company ownership)
• Labor Unions Organizations that represent employees in
negotiations with management
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STUDY: Unionization: Employee’s Perspective
• Higher compensation
• Greater benefits
• Influence over hiring, promotions, and layoffs
• Working conditions and workplace safety
• Formal processes for employee grievances, discipline, and other matters
• Solidarity and recognition12-6Copyright © 2015 Pearson Education, Inc.
Unionization: Management’s Perspective
• Work Rules A common element of labor contracts that
specifies such things as the tasks certain employees are required to do or are forbidden to do
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Exhibit 12.2Major Pieces of Labor Relations Legislation
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Unionization in Historical Perspective
• National Labor Relations Act Legislation passed in 1935 that established
labor relations policies and procedures for most sectors of private industry; commonly known as the Wagner Act
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Unionization in Historical Perspective
• Labor-Management Relations Act Legislation passed in 1947 that addressed
many concerns raised by business owners and shifted the balance of power again
Commonly known as the Taft -Hartley Act
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Unionization in Historical Perspective
• Labor-Management Reporting and Disclosure Act Legislation passed in 1959 designed to
ensure democratic processes and financial accountability within unions
Commonly known as the Landrum-Griffith Act
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The Organizing Process
• Union Security Measures that
protect a union’s right to represent workers
• Union Shop A unionized
workplace in which employees are required to maintain union membership
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The Organizing Process
• Right-to-Work Laws State laws that prohibit union and agency
shops – The law prevents unions in that state from requiring workers to pay dues in exchange for the union's representation
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Exhibit 12.3 Right-to-Work States
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Types of Unions
• Craft Unions Offer membership
to workers with a specific craft or skill, such as carpentry, masonry, or electrical work
• Industrial Unions Seek to represent
all workers at a given employer or location, regardless of profession or skill level
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How Unions Are Structured
• Locals Local unions that represent employees in a
specific geographic area or facility
• National Union A nationwide organization composed of many
local unions that represent employees in specific locations
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Union Organizing Drives
• Authorization Cards Cards signed by employees to indicate
interest in having a union represent them
• Certification Election A secret-ballot election overseen by the
NLRB to determine whether a union gains the right to represent a group of employees
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Union Organizing Drives
• Decertification An employee vote to take away a union’s
right to represent them
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Exhibit 12.4The Union Organizing Process
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The Collective Bargaining Process
• Collective Bargaining A negotiation between union and
management negotiators to forge the human resources policies that will apply to all employees covered by a contract
• Collective Bargaining Agreements (CBAs) Contracts that result from collective
bargaining
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The Collective Bargaining ProcessExhibit 12.5
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Negotiating an Agreement
• Mediation Use of an impartial third party to help resolve
bargaining impasses
• Arbitration A decision process in which an impartial
referee listens to both sides and then makes a judgment by accepting one side’s view
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When Negotiations Break Down: Labor and Management OptionsExhibit 12.6
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Labor Options
• Strike A temporary work stoppage aimed at forcing
management to accept union demands
• Boycott A pressure action by union members and
sympathizers who refuse to buy or handle the product of a target company
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Labor Options (cont.)
• Injunction A court order that requires one side in a
dispute to refrain from or engage in a particular action
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Management’s Options
• Strikebreakers Nonunion workers hired to do the jobs of
striking workers
• Lockout A decision by management to prevent union
employees from entering the workplace used to pressure the union to accept a
contract proposal12-26Copyright © 2015 Pearson Education, Inc.
Grievance, Discipline, and Arbitration Procedures
• Unfair labor practices Unlawful acts made by either unions or
management
• Grievance A formal complaint against an employer
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Grievance, Discipline, and Arbitration Procedures
• Progressive Discipline An escalating process of discipline that gives
employees several opportunities to correct performance problems before being terminated
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The Future of Labor
• Declining Membership union membership in the U.S. is now less
than 12 percent, half of those members work in public-sector
jobs, not in business
• Do more U.S. workers want to be represented by unions? Survey results vary
12-29Copyright © 2015 Pearson Education, Inc.