Chapter 12 Understanding Unions and Their Impact on HRM LEARNING OBJECTIVES After reading this chapter, students should be able to: • Understand the impact of unions on a firm’s competitive advantage. • Explain the structure and membership patterns of unions. • Describe the provisions of the major labor laws. • Discuss how workers become unionized. • Understand how collective bargaining agreements are negotiated and administered. CHAPTER OUTLINE AND LECTURE 12-1 Gaining Competitive Advantage This chapter sets forth the impact of organized labor on Human Resource Management. 12-1a Opening Case: Gaining Competitive Advantage at the Saturn Corporation The American automotive industry began losing market share to foreign imports in the early 1980s. The American public became convinced that Japanese cars were superior to American cars, providing better quality, dependability, and value. As their market share continued to shrink, inventory of finished American cars grew beyond acceptable limits. This led to layoffs, closure of many plants, and decrease in UAW membership. Solution: establish a cooperative relationship between management and labor at the Saturn Corporation. Saturn’s goal was to produce high-quality affordable automobiles in hopes of recapturing market share lost to foreign competition. Roger Smith decided to change traditional management strategies and practices and replace the adversarial relationship with the union to one of cooperation. A feasibility study team was formed consisting of GM management and UAW leaders. A management strategy was formulated that responded to both employees and company needs. It stressed teamwork and open communication. Union team members now have a much greater voice in job design. Research conducted by Saul Rubinstein on the success of Saturn’s labor–management partnership, suggested that Saturn’s performance, particularly quality, was improved because of the enhanced interdepartmental coordination, more rapid response to problems, and better solutions through a greater flow of ideas. Customers now embrace Saturn cars as high-value, technologically advanced vehicles. As a result of these changes, Saturn earned four major awards and rebuilt competitive advantage. Why did the Saturn concept work? Why did the American automobile industry wait so long to try this system? Were Japanese cars really superior during the 1980s? What is Saturn’s status and market share today? Look up their website if computers are handy. 12-1b Linking Unions to Competitive Advantage When employers are insensitive to worker needs, and when workers are powerless to redefine their working conditions to make their work more fulfilling, they may see the need to represent their interests more forcefully to their employers by organizing a union effort. Unions are labor organizations which deal with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Employers, on the other hand, may want to contain their HR-related salary and benefits costs by maintaining a union-free environment. Firms can avoid unionization by treating employees fairly and preventing them from becoming dissatisfied with their jobs. Much of the evidence points out that unionized firms are often more productive, but less profitable, than similar nonunion companies. The key issue here is the ability of the two parties—labor and management—to work together well. When relations between the parties are positive, unionization is associated with higher firm productivity. Conversely, when union–management relations are negative, unionization is associated with lower firm productivity. 12-2 HRM Issues and Practices Managers and HR professionals need to be aware of union status today, current labor laws, and how to negotiate with labor unions. 12-2a Unions Today To understand unions today, management needs to have knowledge of their structure and union membership patterns. • Local unions identify and negotiate plant (local) issues in national collective bargaining agreements. They also administer collective bargaining agreements or contracts, i.e., they ensure that the contract provisions are being followed. National unions represent workers throughout the country in a particular craft or in a specific industry. Most local unions are chartered from parent national unions and pay dues. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) promote cooperation among national unions in order to pursue organized labor’s common objectives. It also represents organized labor in political forums. • Union membership patterns vary over time. In 1960, 31.4 percent of employed workers were represented by unions—by 2008 only 13 percent were represented. Although the percentage has declined, unions continue to represent a large number of workers in government, manufacturing, and transportation/public utilities. Surveys reveal that more people would like to be affiliated with a labor union. However, membership has declined because of the shift to more service jobs, employers have taken aggressive stances against unions, and employers often find permanent replacements for striking employees. Generate a discussion on the current status of labor unions in your college/university town and your state. What are the growth patterns? Political clout patterns? How have unions affected wage and benefits in your area? Are there any employers that provide a superior work environment, pay, or benefits without a union in your area? 12-2b Labor Law Management and HR professionals need knowledge of key legislative actions related to unions. Descriptions follow: • The nineteenth century saw the courts favor American business over unions. The Supreme Court allowed employers to issue yellow-dog contracts whereby workers promised they would not organize or join a union if they were hired. • The Railway Labor Act of 1926 opened the way for greater acceptance of unionism and collective bargaining • The Norris-LaGuardia Act of 1932 sharply curtailed the courts’ involvement in labor disputes by limiting judges’ powers to issue injunctions that restrained worker job actions. The act also declared yellow-dog contracts unlawful. • The National Labor Relations Act (Wagner Act) of 1935 gave workers in most industries the right to form unions and bargain collectively without being subject to coercion by their employers. The Wagner Act also established the certification election process to determine whether a majority of workers in a company wanted union representation. It also created the National Labor Relations Board (NLRB) to supervise certification elections and enforce the law. • The Labor-Management Relations Act or Taft-Hartley Act of 1947 tried to restore a balance of power between employers and unions. The act made it possible for union members to rid themselves of their union by means of a decertification election. It also specified a set of unfair union labor practices. It also gave the President of the United States the right to intervene in national emergency strikes. Lastly, the act allowed states to pass legislation that would outlaw closed shops, companies that require union membership as a condition of employment. In open shop states, union membership is entirely voluntary. • The Labor-Management Reporting and Disclosure Act or Landrum-Griffin Ac t of 1959 regulates the internal affairs of unions. The act requires unions to submit reports of all financial expenditures to discourage officers from using union funds for personal matters. Which of the previous acts has had the greatest impact on management-union relations? What do students think the next major wave of acts will address? Ask them if colleges and universities should be unionized? Why or why not? 12-2c Becoming Unionized Now let’s look at why and how workers become unionized. The major benefits derived from union membership are higher salaries, better benefits, ability to speak one’s mind without fear of reprisal, better job security, protection against unfair treatment, and gaining a sense of identity/unity. The two major reasons why workers join unions are job dissatisfaction and union instrumentality, the perceived ability of the union to provide important benefits to the worker. Organizing a campaign consists of the petition, election, and certification phases, followed by a collective bargaining agreement. During the petition phase, workers express initial interest in union representation. The petition phase culminates when the union asks the employer for recognition as the bargaining representative of the workers. The election phase consists of three steps: determining the appropriate bargaining unit, campaigning, and voting that is applicable. The certification phase culminates when the NLRB certifies the results. If the NLRB finds evidence of gross misconduct on the part of the employer during the campaign, it may issue a bargaining order. This order directs an employer to accept collective bargaining with the union even if the employer won the election. 12-2d The Collective Bargaining Agreement Employers and employees reach agreements through a collective bargaining agreement that covers all members of the bargaining unit, regardless of whether they are union members. Here is what is required to negotiate the agreement: • Initially, information must be gathered about contract settlements, costs, and their experiences in attempting to administer the current contract. Next, both parties establish a bargaining agenda by identifying issues about which they want to bargain. Once settled, each party decides on its priorities among bargaining items, sets strategies, and establishes a range of bargaining objectives. Now, both parties must legally engage in good faith bargaining to decide upon wages, hours, and other terms and conditions of employment. Bad faith bargaining presents unacceptable proposals or offering no alternative counterproposals. Both parties should seek to establish cooperation rather than adversarial relationships. • The collective bargaining agreement must be administered during its duration. Each party agrees to abide by the terms and condition; however, each party will most likely disagree on the interpretation of at least one item. Contract disputes are resolved through a grievance system, which are contractual provisions that provide due process for claims of contract violations. Grievance systems provide a forum for adjudicating disagreements and they influence the way workers view organized labor. Refer to Figure 12-4 for the steps in a grievance system. Assign students to write an essay on the collective bargaining agreement in the bituminous coal mining industry. They should cover the typical issues in negotiating the agreement and administering the agreement. Ask them to compare their research and not any differences in their findings. Ask how this assignment helped them understand the topic better. 12-3 The Manager’s Guide Managers and HR professionals must decide if they want a union, and if so, how to establish a cooperative relationship in the best interests of employees and the employer. 12-3a Unions and the Manager’s Job Line managers’ roles differ in union and nonunion settings. In union settings, the focus is on adherence to the collective bargaining agreement; in nonunion setting, the focus is on union prevention. In a union setting, managers must be fully conversant with agreement provisions and understand how the grievance system works. They must try to resolve an issue before it goes to grievance. Line managers should strive to create job satisfaction. By doing so, a union may not be necessary. In one study, half of the union elections were brought about because arbitrary, tyrannical, and abusive supervisor behaviors warranted them. Line managers should follow sound management principles, create job satisfaction, and treat workers fairly 12-3b How the HRM Department Can Help HRM departments in unionized firms help negotiate and administer collective bargaining agreements. In nonunionized firms, HR professionals often help devise union prevention strategies. Complying with the labor contract is the main focus of HRM practices in a unionized firm. HR professionals in nonunion setting often help devise strategies to prevent the formation of a union. The best all-around strategy is to implement equitable HRM practices so that employees do not see any need for union representation. HRMs can also use labor relations consultants to prevent organizing or guide efforts to decertify existing unions. They sometimes recommend employer resistance strategies that are unethical and/or illegal.. 12-3c HRM Skill-Building for Managers The manager’s primary responsibility related to unionism is to engage in effective management practices. Perhaps the most important of these practices is managing conflicts in union or nonunion settings. The five typical approaches to solving these conflicts are competition, collaboration, compromise, avoidance, and accommodation. Although some conflict resolution strategies appear to be better than others, each has its place. The effectiveness of each strategy depends on the particular situation. See this section in the text for situations under which each strategy would be most appropriate. When faced with complaints that may turn into grievances, managers should: • Make an appointment to discuss the problems unless the problem is urgent and must be addressed immediately. • Not become defensive, even if the complaint has no foundation. • Let the person blow off some steam. • Set ground rules, if necessary. • Redirect from accusations to specific behaviors. • Agree with some aspect of the complaint without accepting all of its ramifications. • Ask for suggestions of acceptable alternatives. Divide the class into five teams and assign each a different conflict resolution approach. Make up an example of a work complaint and a specific setting for it. Let each team apply its resolution approach and discuss it in front of the class. Ask for a vote of which approach would work best under the circumstances. KEY TERMS American Federation of Labor and Congress of Industrial Organizations (AFL-CIO): An organization that promotes cooperation among national unions in order to pursue organized labors’ common objectives. Arbitration: A contract dispute mechanism in which a neutral third party settles matters that cannot be resolved by bilateral discussions between union and management representatives. Bargaining order: Issued by the NLRB, it directs an employer to accept collective bargaining with the union even if the employer won the election. Bargaining unit: Positions covered by a bargaining agreement in which two or more employees share common employment interests and working conditions. Certification election: An election to determine whether company workers want union representation. Closed shops: Companies that require union membership as a condition of employment. Collective bargaining: A system for governing relations between representatives of employers and employees through bilateral negotiations to reach mutual agreement about employment terms. Collective bargaining agreement: The labor-management contract resulting from the collective bargaining process. Decertification election: An election in which union members vote on whether they want their union to continue representing them. Election phase: Second phase of a certification election, culminating in the actual election vote. Good faith bargaining: Obliges both management and labor to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment. Grievance: An allegation that employer or employee contract rights have been violated. Grievance system: A system that provides due process for claims of collective bargaining agreement violations. Labor-Management Relations Act (Taft-Hartley Act): A law aiming to restore the balance of power between employers and unions. Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act): Law designed to prevent corruption by regulating the internal affairs of unions. Local union: The union that directly represents the interests of its members. National Labor Relations Act (Wagner Act): Law giving workers the right to form unions and bargain collectively without being subject to coercion by their employers. National Labor Relations Board (NLRB): Created by the Wagner Act to supervise certification elections and enforce the law. National unions: Represent workers throughout the country in a particular craft or in a specific industry. Norris-LaGuardia Act: A law that limits judges’ powers to issue injunctions that restrains worker job actions. Open shops: Companies in which employees covered by the contract do not have to join the union or be assessed a fee for union representation. Petition phase: First phase of a certification election in which workers express initial interest in union representation. Railway Labor Act (RLA): A law that compels railroads to bargain with employees’ representatives and established mechanisms to resolve labor disputes. Union instrumentality: The perceived ability of the union to provide important benefits to the worker. Yellow-dog contracts: Now illegal, these contracts stipulate that workers will not organize, support, or join a union if hired by the company. REVIEW QUESTIONS 1. The AFL-CIO engages in all of the following activities on behalf of member unions except a. lobbying legislative bodies on issues of importance to organized labor. b. supporting pro-union candidates for public office. c. determining the fees that local unions may charge their members. d. providing a dispute resolution procedure to settle disputes by one union member against another. Answer: c Rationale: The AFL-CIO has no power to intervene in the internal affairs of unions (e.g., it cannot interfere in union decisions about striking, bargaining, or assessing dues). Article XX of the federation’s constitution establishes a dispute resolution procedure whereby complaints filed by one member union against another are settled by means of mediation and/or arbitration. The AFL-CIO also represents organized labor in political forums providing lobbyists for legislative bodies and supporting pro-union candidates for elected public officials. 2. Approximately what percent of the U.S. national labor force belongs to a union? a. less than 5 percent b. 15 percent c. 30 percent d. 50 percent Answer: b Rationale: The Bureau of Labor Statistics estimates that approximately 13 percent of employed wage and salary workers were represented by unions in 2008. 3. A yellow-dog contract is a contract a. in which workers promise not to organize, support, or join a union while working for their employer. b. that made workers members of the “company union.” c. that protects a workers right to “blow the whistle” on health and safety violations. d. that punishes an employee for taking a job with a competitor of the firm with whom he/she currently works. Answer: a Rationale: A Supreme Court ruling allowed employers to issue yellow-dog contracts—workers’ promises that they would not organize, support, or join a union if the company hired them. 4. Which act gave workers in most industries the right to form unions and bargain collectively? a. Civil Rights Act of 1964 b. Norris-La Guardia Act c. National Labor Relations Act d. Railway Labor Act Answer: c Rationale: The National Labor Relations Act (Wagner Act), passed in 1935, gave workers in most industries the right to form unions and bargain collectively without being subject to coercion by their employers. 5. Which of the following is not an unfair union labor practice as defined by the Labor–Management Relations Act? a. coercing employees who are trying to exercise their collective bargaining rights b. refusing to bargain in good faith with an employer c. pressuring employees to discriminate against nonunion employees d. striking for longer than 80 days Answer: d Rationale: The Labor-Management Relations Act (Taft-Hartley Act) specified a set of unfair union labor practices, including: • Coercing employees who are trying to exercise their collective bargaining rights. • Pressuring employers to discriminate against an employee or applicant because he or she is not a union member. • Refusing to bargain in good faith with an employer. • Forcing employers to pay for unneeded services, such as hiring more employees than are needed. 6. A bargaining unit consists of a. the union leadership that negotiates with management. b. both union and management negotiators. c. those jobs or positions in which common employment interests and working conditions are shared. d. the members of the national labor relations board as well as union and management negotiators. Answer: c Rationale: A bargaining unit consists of those jobs or positions in which two or more employees share common employment interests and working conditions (e.g., similar duties, hours of work, compensation, production methods, and overall supervision). 7. Which of the following items might represent an illegal bargaining item? a. pension benefits b. management rights c. grievance procedures d. closed-shop rules Answer: d Rationale: Illegal bargaining items are matters about which bargaining is not permitted by law. For example, union security arrangements (e.g., closed and open shops) cannot be negotiated in right-to-work states. 8. The first step in resolving a labor contract dispute is to a. take the issue to arbitration. b. seek the help of the National Labor Relations Board. c. file a grievance. d. ask for a bargaining order. Answer: c Rationale: Typically, grievance systems incorporate three steps, although four-step procedures are not uncommon. The first step is the informal stage of the system during which the union steward (an employee who is elected to represent coworkers), the complainant, and the complainant’s immediate supervisor try to resolve the matter before it is written up and becomes an official grievance. 9. During the election phase of union certification efforts a. unions have a distinct advantage over management because they have constant access to workers for organizing activities. b. management has the upper hand because unions are not permitted to communicate with workers within seven days of the election. c. the national labor relations board is powerless to intervene. d. employers may not give employees false or misleading information about the union. Answer: d Rationale: NLRB rules closely regulate employer conduct during anti-union campaigns. Employers may not give employees false or misleading information about the union. Although employers may certainly communicate their views about unionization, they may not threaten employees for pro-union activities. 10. If the National Labor Relations Board finds evidence of gross misconduct during a union certification election, it will issue a a. restraining order. b. no-strike clause. c. bargaining order. d. injunction Answer: c Rationale: If the National Labor Relations Board finds evidence of gross misconduct on the part of the employer during a campaign, it may issue a bargaining order. A bargaining order directs an employer to accept collective bargaining with the union even if the employer won the election. DISCUSSION QUESTIONS 1. In what ways does the presence/absence of unions impact a firm’s competitive advantage? • Employers can contain their HR-related costs by maintaining a union-free environment. The costs of operating in a unionized environment are much higher due to higher salaries and more generous benefit plans. • Most managers believe that unions typically affect productivity in a negative way. They reason that the restrictive work rules and other union-imposed constraints on employers only hinder an organization’s attempt to maximize productivity and profitability. However, much of the evidence points to just the opposite effect—unionized firms are often more productive than similar nonunion companies. 2. Why do employers typically resist unionization efforts? Typically unionized firms are more productive, but not always more profitable. The higher costs of operating in a unionized environment due to higher salaries and more generous benefit plans, exceed the productivity increases leading to a unionized environment being more productive but not more profitable. Therefore, most organizations try to avoid unionization if they can. 3. Describe how the various labor laws have affected the balance of power between labor and management. • Prior to 1926, the judiciary established a reputation as a strong ally of American business. In particular, courts had been quite willing to invoke antitrust legislation to prevent unions from taking “job actions” (e.g., strikes, boycotts). • Railway Labor Act of 1926 marked the beginning of a new era of government regulation of union-management relations, one that involved greater acceptance of unionism and collective bargaining. • In 1932, Congress passed the Norris-LaGuardia Act, which sharply curtailed the courts’ involvement in labor disputes by limiting judges’ powers to issue injunctions that restrained worker job actions. • The National Labor Relations Act (Wagner Act), passed in 1935, gave workers in most industries the right to form unions and bargain collectively without being subject to coercion by their employers. • In 1947, the NLRA was amended by the Labor-Management Relations Act (Taft-Hartley Act). The Taft-Hartley Act tried to restore a balance of power between employers and unions. The act made it possible for union members to rid themselves of their union by means of a decertification election. It also specified a set of unfair labor practices. • The last major piece of federal legislation that focused on union activities was the Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) of 1959. The Landrum-Griffin Act was a law designed to prevent corruption by regulating the internal affairs of unions. 4. Describe the three phases of a union organizing campaign. • Petition Phase ○ Workers express initial interest in union representation by signing authorization cards that empower a union to represent them in a collective bargaining with the employer. • Election Phase—consists of three steps ○ The NLRB conducts representation hearings to determine the appropriate bargaining unit. ○ The second step of the election phase involves campaigning by both the union and the employer. ○ The third step is the election itself, which is typically held on-site at the company. • Certification Phase ○ When the election process is completed, the NLRB certifies the results. As long as the NLRB does not find misconduct, they require a simple majority by either party to win the election. If the NLRB finds evidence of gross misconduct on the part of the employer during the campaign, it may issue a bargaining order. 5. It was stated that employers must be careful during a union organizing campaign about what they say, when they say it, and where they say it. Explain. NLRB rules closely regulate employer conduct during anti-union campaigns. Employers may not give employees false or misleading information about the union. Although employers may certainly communicate their views about unionization (i.e., express clear preferences for staying nonunion), they may not threaten employees for pro-union activities. Nor may employers promise benefits to employees if they reject the union. Further, employers are forbidden to interrogate employees about their union sentiments. 6. Why do almost all collective bargaining agreements contain provisions that establish grievance systems? • First, they provide a forum in which disagreements concerning violations of contract rights can be adjudicated. Thus, neither party must threaten or actually carry out some economic intimidation (e.g., a strike by the union or a lockout by the employer) in order to resolve the matter. • Second, grievance systems influence the way workers view organized labor. A survey of approximately 1,500 American workers revealed that grievance handling was considered the most important union activity. 7. Describe how a typical grievance system works. • The first step is the informal state of the system during which the union steward (an employee who is elected to represent coworkers), the complainant, and the complainant’s immediate supervisor try to resolve the matter before it is written up and becomes an official grievance. Succeeding steps in the system almost always involve higher-level representatives of the union and employer. • The final step in virtually all grievance procedures is arbitration. Arbitration calls for a neutral third party to settle matters that cannot be resolved by bilateral discussions between union and management representatives. 8. What does it mean to be a committed union member? What is the basis for becoming a committed union member? • Union commitment refers to workers’ dedication to their union and the pride that their membership brings them. • Union commitment is greatest when workers believe that the union is instrumental in helping them achieve their personal and collective goals. Unions can enhance commitment through the process of “socializing” their new members. 9. What is meant by the term “right-to-work” state? Employees covered by the contract do not have to join the union nor may they be assessed a fee for the union representation from which they benefit. Union membership is thus purely voluntary. 10. Describe the various union prevention strategies used by employers. • Probably the best strategy is simply to utilize equitable HRM practices so that employees do not see any need for union representation. • Another union prevention strategy is the use of labor relations consultants. Typically, these consultants are either psychologists or attorneys who direct companies’ efforts to prevent unions from gaining bargaining rights and guide efforts to decertify existing unions. They sometimes recommend employer resistance strategies that are unethical and/or illegal. EXPERIENTIAL EXERCISES Assessing Local Labor-Management Relations Suggested approach: After the students are divided into two groups (the union and the management group), each group must participate in the exercise, following each of the below given steps carefully. Based on what information has been gathered by the students, they can estimate the climate of union-management relations in the various firms that has been studied. 1. The management group should make a list of three or four unionized employers in the vicinity. The union group should determine the identity of unions that represent the employees in these firms. If the employers will not supply this information, the state AFL-CIO organization can be contacted for this information, or there may be a local trade union council in the area that can furnish the information. 2. Check the local newspapers over the past three years for stories that report union-management issues at these employment sites (e.g., strikes, the settlement of a new collective bargaining agreement, a restructuring of the firm that may have necessitated the layoff of employees). This information should provide background for interviews with representatives of each party. 3. Conduct interviews. The management group should interview representatives of management. The union group should interview union representatives. During these interviews, collect information about each of the newsworthy events: • What was the basis for the event? For example, why did the strike occur? What necessitated the layoffs? • If the event was the negotiation of a contract, what major items did the union want to accomplish? • What did the employer want to accomplish? How does each of the parties feel about the eventual settlement? • Does the party perceive a need for a change in the labor legislation that regulates union-management relations in this country? • What do each of the parties believe are the workplace issues that lend themselves most to cooperation between the union and management? 4. When the members of the class return with this information, each union-management relationship should be discussed, one organization at a time. That is, those who interviewed a particular employer should present their findings. This presentation should be followed by that of the students who interviewed the union(s). 5. Compare the responses of the two parties after the presentation. Based on what has been reported (or not reported), can you estimate what the climate of union-management relations is like in the firm? How Was That Conflict Resolved? Suggested approach: Break into groups of four or five students. Each group should identify a member who experienced a manager-subordinate conflict at work. Students are required to involve themselves in the exercise given below and study the conflict presented to them carefully. While presenting the conflict to the class, the group must follow the four instructions below. To determine whether the most appropriate conflict resolution strategy was used, (see Section 12-3, “The Manager’s Guide”). 1. Describe the conflict situation. 2. Describe how it was actually handled. 3. Evaluate the handling of the conflict. 4. State whether there was a better way of handling the conflict and give your rationale. If you think it was handled properly, justify your conclusion. Who Would Win This Grievance Case? Instructions: Divide up into groups of four or five students. Review this case as an arbitrator would and determine whether the employer’s actions should be upheld or overruled. Be prepared to discuss your group’s rationale with the rest of the class. Suggested approach: Students are required to review the case as an arbitrator. Section 12-2d gives some details on arbitration, which will be of some guidance to students. Jan Golden, a forklift operator, was terminated from his job at the ABC Company. What Jan Did He was driving his forklift when another employee came by driving a box truck. Jan purposely ran into him and knocked the truck over. When a witness confronted Jan about his behavior, Jan got belligerent and challenged him to a fight. The plant manager was told what happened. He then questioned other employees and learned the following: • Jan continuously threatened to kill another employee who had once accidentally put a scratch in Jan’s car. • Jan once tried to run another employee down with his forklift and barely missed him. • Another employee claimed Jan threatened to kill him for being a perverted homosexual. • Jan once got mad at a friend and falsely accused the friend of sexually assaulting him. The plant manager fired Jan. Jan filed a grievance with his union steward. Relevant Portion of the Collective Bargaining Agreement There are two types of violations that will result in discipline: • Type A: Rules that are so important that no violation will be permitted. One violation leads to a dismissal. • Type B: Important rules that if violated do not necessarily lead to an immediate discharge. Employees may be put in a progressive discipline situation. Examples: ○ Intimidating fellow employees ○ Fighting on the premises Past Practices of the Employer During the life of the collective bargaining agreement, there had been seven cases of Type B violations. Progressive discipline was used in each case. Jan’s Argument I admit I was wrong to run my forklift into another employee. However, this is a Type B offense. It has been the employer’s past practice to use progressive discipline in such cases. I should have been suspended for 3 days, not fired. Company’s Argument The collective bargaining agreement says that Type B infractions do not necessarily lead to discharge. In this case, it should because Jan is so dangerous to other employees. CASE Supervisors Performing the Work of Members of the Bargaining Unit Objective: Enhance students’ understanding of how grievance procedures are administered. What to do: Cover this case in conjunction with your lecture on grievance administration. 1. Acting as a union representation, prepare a statement of the grievance pointing to contract language that was violated and the details of the incident that lead you to believe that it represented a contract violation. Answer: Student answers may vary as each would identify different areas in the contract that may have been violated. One possible violation could be “Article VII. Supervisors Working,” any supervisor at a plant shall not perform work on a job normally performed by an employee in the Bargaining Unit at such plants. In the case, a supervisor, Larry, was working on the assembly line for an extended period of time due to absenteeism. 2. Now put yourself in the position of a neutral third party such as an arbitrator. Render a decision as to which party would be likely to prevail. Justify your decision. Answer: Each student will have a different perspective and hence the answers may vary. CRITICAL THINKING EXERCISES 1. Why did the Saturn concept work? Why did the American automobile industry wait so long to try this system? Were Japanese cars really superior during the 1980s? What is Saturn’s status and market share today? Look up their website if computers are handy. 2. Generate a discussion of the current status of labor unions in your college/university, town and your state. What are the growth patterns? Political clout patterns? How have unions affected wage and benefits in your area? Are there any employers that provide a superior work environment, pay, or benefits without a union in your area? 3. Which of the acts on page 12-3 has had the greatest impact on management-union relations? What do students think the next major wave of acts will address? Ask them if colleges and universities should be unionized? Why or why not? 4. Assign students to write an essay on the collective bargaining agreement in the bituminous coal mining industry. They should cover the typical issues in negotiating the agreement and administering the agreement. Ask them to compare their research and note any differences in their findings. Ask how this assignment helped them understand the topic better. 5. Divide the class into five teams and assign each a different conflict resolution approach. Make up an example of a work complaint and a specific setting for it. Let each team apply its resolution approach and discuss it in front of the class. Ask for a vote of which approach would work best under the circumstances. ESSAY QUESTIONS 1. To recapture the car market from foreign competitors, the union-management team formulated a management strategy that responds to both employee and company needs. What are the five main parts of Saturn’s and UAW’s agreement that allowed them to have an unparalleled voice in job design? The five main parts of Saturn’s and UAW’s agreement that enhanced employee voice in job design are: 1. Team-Based Approach: Emphasis on collaborative work teams to foster input and shared responsibility among workers. 2. Flexible Job Roles: Employees had the opportunity to take on multiple roles, allowing for greater adaptability and skill development. 3. Direct Communication: Open channels between management and employees encouraged feedback and suggestions, promoting a culture of openness. 4. Employee Involvement in Decision-Making: Workers were included in key decisions regarding production processes and workplace improvements. 5. Commitment to Continuous Improvement: A focus on ongoing training and development to enhance skills and efficiency, benefiting both employees and the company. 2. What is the definition of a union? A union is an organized group of workers that come together to collectively negotiate for better wages, working conditions, and benefits, representing their interests in discussions with employers. 3. Compare and contrast the argument for unions and for those who do not want a union in their company? Arguments for Unions: 1. Collective Bargaining: Unions negotiate better wages and benefits through collective power. 2. Job Security: They often provide greater job protection and due process for employees. 3. Workplace Safety: Unions advocate for improved safety standards and working conditions. 4. Employee Voice: They give workers a platform to express concerns and influence decisions. Arguments Against Unions: 1. Cost: Membership dues can be seen as an additional financial burden for workers. 2. Flexibility: Employers argue that unions can limit operational flexibility and responsiveness. 3. Conflict: Some believe unions can create an adversarial relationship between management and employees. 4. Individuality: Opponents argue that unions may undermine individual negotiation and merit-based pay. In summary, unions are seen as a means of empowerment and protection for workers, while opponents often cite costs and potential rigidity as drawbacks. 4. Explain the difference between local and national unions. Local Unions: These are smaller, regionally-based organizations that represent workers in a specific workplace or industry. They focus on local issues, negotiate contracts, and address members' concerns directly. National Unions: These are larger organizations that encompass multiple local unions across different regions or states. They provide broader support, resources, and advocacy at the national level, influencing labor policies and negotiating industry-wide agreements. 5. Provide the reasons why almost all organizations join the AFL-CIO. Organizations join the AFL-CIO for several key reasons: 1. Collective Bargaining Power: Access to stronger negotiation capabilities for better wages and benefits. 2. Political Advocacy: Representation in lobbying for labor-friendly policies and legislation at national and state levels. 3. Resources and Support: Access to training, legal assistance, and strategic guidance for local unions. 4. Networking Opportunities: Connections with other unions and organizations for collaboration and solidarity. 5. Improved Working Conditions: Shared initiatives to enhance workplace safety and labor standards across industries. 6. What are the three explanations given that describes why there has been a consistent decline in unions over the past 30 years? The decline in unions over the past 30 years can be attributed to: 1. Globalization: Increased competition from international markets has pressured companies to reduce costs, often at the expense of unionized labor. 2. Changing Workforce: The rise of gig and contract work has led to a more fragmented workforce, making traditional union organizing more challenging. 3. Legislative and Political Changes: Shifts in labor laws and policies, along with a more hostile political environment toward unions, have weakened their influence and membership. 7. Provide six unfair labor practices that have caused unions to form. Six unfair labor practices that have led to the formation of unions include: 1. Interference with Organizing: Employers intimidating or threatening employees who express interest in unionizing. 2. Discrimination Against Union Members: Firing or discriminating against employees for union activities or membership. 3. Refusal to Bargain in Good Faith: Employers not engaging sincerely in negotiations with union representatives. 4. Surveillance of Union Activities: Monitoring or spying on employees involved in union organizing efforts. 5. Creating Company Unions: Establishing employer-dominated unions that do not represent workers’ interests. 6. Retaliation for Complaints: Punishing employees for filing grievances or complaints related to workplace issues. 8. Write six benefits that workers receive from joining a union. Six benefits workers receive from joining a union include: 1. Better Wages: Unions typically negotiate higher pay rates for their members compared to non-unionized workers. 2. Improved Benefits: Access to better health insurance, retirement plans, and paid leave. 3. Job Security: Stronger protections against unfair termination and layoffs. 4. Collective Bargaining: A unified voice in negotiations for working conditions and policies. 5. Workplace Safety: Advocacy for safer working conditions and compliance with safety regulations. 6. Grievance Representation: Support in addressing workplace issues and disputes through formal processes. 9. Describe the three steps or phases involved in establishing a union. The three steps involved in establishing a union are: 1. Organizing: Workers express interest in forming a union and begin discussions about their needs and goals. This phase often includes educating employees about the benefits of unionization and identifying potential leaders. 2. Authorization Campaign: Employees gather signatures on authorization cards to demonstrate support for the union. Typically, at least 30% of the workforce must sign to file for an election. 3. Election and Certification: If enough support is shown, a secret ballot election is held. If the majority vote in favor of the union, it is officially certified, allowing it to represent the workers in negotiations with management. 10. How do HRM departments help in union settings? HRM departments help in union settings by: 1. Facilitating Communication: Acting as a bridge between management and the union to promote dialogue and understanding. 2. Negotiating Contracts: Collaborating with union representatives to negotiate collective bargaining agreements that address wages, benefits, and working conditions. 3. Ensuring Compliance: Implementing and enforcing labor laws and contract provisions to maintain fair practices. 4. Handling Grievances: Managing disputes and grievances raised by union members in a fair and timely manner. 5. Training and Development: Providing training for both management and union members to improve workplace relations and understanding of labor issues. 6. Promoting a Positive Work Environment: Fostering a culture of respect and cooperation to enhance employee morale and productivity. 11. Explain these points about unions: a. The impact of unions on a firm’s competitive advantage. b. The structure and membership patterns of unions. c. Describe the provisions of the major labor laws. d. Tell how workers become unionized. e. Write how collective bargaining agreements are negotiated and administered. a. Impact of Unions on a Firm’s Competitive Advantage Unions can impact a firm's competitive advantage by negotiating higher wages and benefits, which may increase labor costs. However, they can also enhance productivity through better training and improved workplace conditions, leading to higher employee morale and reduced turnover, ultimately benefiting the firm’s performance. b. Structure and Membership Patterns of Unions Unions are typically structured as local, national, or international organizations. Local unions represent workers in specific workplaces, while national unions encompass multiple locals within an industry. Membership patterns often reflect demographics, with variations based on industry, region, and economic conditions, typically showing stronger membership in manufacturing and public sectors. c. Provisions of Major Labor Laws Key labor laws include: • National Labor Relations Act (NLRA): Protects employees' rights to organize and engage in collective bargaining. • Fair Labor Standards Act (FLSA): Establishes minimum wage and overtime pay standards. • Occupational Safety and Health Act (OSHA): Ensures safe and healthful working conditions. • Employee Retirement Income Security Act (ERISA): Regulates employee benefit plans. d. How Workers Become Unionized Workers become unionized by expressing interest in forming a union, gathering support through authorization cards, and, if sufficient support is shown, holding a secret ballot election. If the majority vote for the union, it is certified to represent them. e. Negotiation and Administration of Collective Bargaining Agreements Collective bargaining agreements are negotiated through a process where union representatives and management meet to discuss wages, benefits, and working conditions. Once an agreement is reached, it is formalized in a contract. Administration involves ensuring compliance with the agreement, addressing grievances, and renegotiating terms as necessary when contracts expire. OTHER RESOURCES I. Websites www.aflcio.org. The official AFL-CIO site that tells it all. http://www.ilr.cornell.edu/library/subjectGuides/laborUnionsAndTheInternet.html. This site is titled Guide to Labor Unions and the Internet. It is an extensive collection of information on the topic. II. Books American Labor Unions in the Electoral Arena (People, Passions, and Power), H. Asher, Rowman & Littlefield, 2001. A treatise on the relevancy of U.S. labor unions. Solution Manual for Human Resource Management: A Managerial Tool for Competitive Advantage Lawrence S. Kleiman 9781426649189
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