CH-14-15 Ethics and Employee Rights and Discipline – Human Resource Management : Book Guide

This Document Contains Chapters 14 to 15 PART FIVE EMPLOYEE RELATIONS CHAPTER Fourteen Ethics and Employee Rights and Discipline 14 Lecture Outline Strategic Overview Ethics and Fair Treatment at Work What is Ethics? Ethics and the Law Ethics, Justice, and Fair Treatment Ethics, Public Policy, and Employee Rights What Shapes Ethical Behavior at Work? There’s No One Smoking Gun The Person Outside Forces that Shape Ethical Decisions In Summary: Some Things to Keep in Mind About Ethical Behavior at Work Using HRM Methods to Promote Ethics and Fair Treatment Selection Ethics Training Performance Appraisal Reward and Disciplinary Systems Managing Ethics Compliance Managing Employee Discipline and Privacy Fairness in Disciplining Bullying and Victimization What Causes Unfair Behavior Basics of a Fair and Just Disciplinary Process Employee Privacy Employee Monitoring Managing Dismissals Termination at Will and Wrongful Discharge Grounds for Dismissal Avoiding Wrongful Discharge Suits Personal Supervisory Liability The Termination Interview Layoffs, Downsizing, and the Plant Closing Law Adjusting to Downsizings and Mergers In Brief: This chapter explores issues, policies, and problems related to ethics, fair treatment, discipline, and termination of employees. These issues have become more critical in today’s environment. Interesting Issues: With the recent events at Enron, WorldCom, and other firms, ethics has become a major issue in today’s world. It is worth discussing what has changed to make this an issue. Is there more unethical behavior or have standards changed, or is it simply that today’s media and communications shed more light on the problems? LEARNING OUTCOMES 1. Explain what is meant by ethical behavior at work. 2. Discuss important factors that shape ethical behavior at work. 3. Describe at least four specific ways in which HR management can influence ethical behavior at work. 4. Employ fair disciplinary practices. 5. List at least four important factors in managing dismissals effectively. ANNOTATED OUTLINE I. Ethics and Fair Treatment at Work A. What is Ethics? Ethics refers to “the principles of conduct governing an individual or a group.” Ethical decisions also involve morals, which are society’s accepted standards of behavior. It would simplify things if it was always clear which decisions were ethical and which were not. Unfortunately, it is not. B. Ethics and the Law – The law is not the best guide about what is ethical because something may be legal but not right, and something may be right but not legal. “Don’t lie, don’t cheat, and don’t steal.” We were all raised with essentially the same values. Ethics means making decisions that represent what you stand for not just what is legal. C. Ethics, Justice and Fair Treatment – Experts generally define organizational justice in terms of its three components—distributive justice, procedural justice, and interpersonal or interactive justice. Distributive justice refers to the fairness and justice of the decision’s result. Procedural justice refers to the fairness of the process. Interactional or interpersonal justice refers to “the manner in which managers conduct their interpersonal dealings with employees,” and in particular to the degree to which they treat employees with dignity as opposed to abuse or disrespect. D. Ethics, Public Policy, and Employee Rights – Few societies rely solely on managers’ ethics or sense of fairness to ensure that they do what’s right by their employees. An employee may have the right to sue the employer under a number of different circumstances. * NOTES Educational Materials to Use II. What Shapes Ethical Behavior at Work? A. There’s No One Smoking Gun – Whether a person acts ethically at work is usually not a consequence of any one thing. Because people bring to their jobs their own ideas of what is morally right and wrong, the individual must shoulder much of the credit (or blame) for the ethical choices he or she makes. B. The Person (What Makes Bad Apples?) – Because people bring to their jobs their own ideas of what is morally right and wrong, the individual must shoulder much of the credit (or blame) for the ethical choices he or she makes. C. Outside Forces that Shape Ethical Decisions (Bad Barrels) – Many ethical/unethical decisions are not driven by personal gains or interests but instead by a number of external forces. These forces could come from the company, the boss , the company’s ethics policy, and organizational culture. * NOTES Educational Materials to Use III. Using Human Resource Management Methods to Promote Ethics and Fair Treatment 1. Selection – Screening out undesirables can actually start before the applicant even applies, if the HR department creates recruitment materials containing explicit references to the company’s emphasis on integrity and ethics. The selection process also sends signals about the company’s values and culture in terms of ethical and fair treatment. 2. Ethics Training – Ethics training typically plays a big role in helping employers nurture a culture of ethics and fair play. Such training usually includes showing employees how to recognize ethical dilemmas, how to use ethical frameworks to resolve problems, and how to use HR functions in ethical ways. 3. Performance Appraisal – The firm’s performance appraisal processes provide another opportunity to emphasize a commitment to ethics and fairness. The appraisal can actually measure employees’ adherence to high ethical standards. 4. Reward and Disciplinary Systems – Managers and organizations need to reward ethical behavior and penalize unethical behavior. 5. Managing Ethics Compliance – Passage of the Sarbanes-Oxley Act of 2002 made ethics compliance obligatory. The act requires that CEOs and CFOs of publicly traded companies personally attest to the accuracy of their companies’ financial statements. * NOTES Educational Materials to Use IV. Managing Employee Discipline and Privacy A. Fairness in Disciplining – The purpose of discipline is to encourage employees to behave sensibly at work. In an organization, rules and regulations serve about the same purpose that laws do in society; discipline is called for when one of these rules or regulations is violated. A fair and just discipline process is based on three pillars: clear rules and regulations, a system of progressive penalties, and an appeals process. B. Bullying and Victimization - This is becoming a serious problem in the workplace and usually involves an imbalance of power, suggests an intent to cause harm, and occurs frequently. It can also take many forms. These forms are discussed. C. What Causes Unfair Behavior – There are a number of potential causes, and some of the research surrounding this is discussed. D. Basics of a Fair and Just Disciplinary Process – There are three basic parts: rules and regulations, a system and progressive penalties, and an appeals process. E. Employee Privacy – The four main types of employee privacy violations upheld by courts are intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee’s name or likeness for commercial purposes. Background checks, monitoring off-duty conduct and lifestyle, drug testing, workplace searches, and monitoring of workplace activities trigger most privacy violations. F. Employee Monitoring – Employee monitoring is frequent and varied. The Electronic Communications Privacy Act provides two main restrictions on workplace monitoring: business-purpose exceptions and consent exceptions. * NOTES Educational Materials to Use V. Managing Dismissals Dismissal is the most drastic disciplinary step the manager can take. Because of this, special care is required to ensure that sufficient cause exists for it. Without a contract, either the employee or the employer could terminate at will the employment relationship. However, EEO and other laws and court rulings increasingly limit management’s right to dismiss employees. Wrongful discharge is a dismissal that violates the law or that fails to comply with contractual arrangements, either stated or implied. Statutory, common law, and public policy exceptions to termination at will exist. Termination at Will and Wrongful Discharge - Termination at will means that without a contract, either the employer or the employee could terminate at will the employment relationship. Wrongful discharge refers to a dismissal that violates the law or that fails to comply with contractual arrangements stated or implied by the employer, for instance, in employee manuals. Grounds for Dismissal – There are four bases for dismissal. In dismissing an employee, the employer should take care to ensure that all keys and company property are returned, Internet passwords disabled, and employee accounts inactivated. 1. Unsatisfactory performance occurs when there is persistent failure to perform assigned duties or to meet prescribed job standards. 2. Misconduct is a deliberate and willful violation of the employer’s rules. Insubordination is a form of misconduct that refers to rebelliousness or disobedience. 3. Lack of qualifications for the job results from an employee’s inability to do the work assigned even when he or she is diligent. 4. Changed requirements (or elimination) of the job results from an employee’s inability to do the job after the employer changed the nature of the job. B. Avoiding Wrongful Discharge Suits – Wrongful discharge occurs when an employee’s dismissal does not comply with the law or with the contractual arrangement. Avoiding wrongful discharge suits requires a two-pronged approach. First, set up employment policies and dispute resolution procedures that make employees feel they are treated fairly. Second, do the preparatory work bypaying particular attention to the employee handbook to avoid such suits. C. Personal Supervisory Liability – Courts sometimes hold managers personally liable for their supervisory actions. Managers should be fully familiar with applicable federal, state, and local statutes and know how to uphold their requirements. D. The Termination Interview – Guidelines include: 1) Plan the interview carefully, 2) Get to the point, 3) Describe the situation, 4) Listen, 5) Review all elements of the severance package, 6) Identify the next step. 1. Outplacement counseling is a systematic process by which a terminated worker is trained and counseled in the techniques of conducting a self-appraisal and securing a new job appropriate to his or her needs and talents. 2. Exit Interview – Many employers conduct exit interviews with employees who are leaving the firm. They aim to elicit information about the job or related matters that might give the employer a better insight into what is right—or wrong—about the company. E. Layoffs, Downsizing, and the Plant Closing Law 1. The Plant Closing Law – The WARN Act requires employers of 100 or more employees to give 60 days’ notice before closing a facility or starting a layoff of 50 people or more. It simply gives employees time to seek other work or retraining by giving them advance notice of the shutdown. 2. The Layoff Process – There is a survivor mentality that exists among those who remain where there have been layoffs. 3. Preparing for Layoff – Preparation requires making sure to have an effective performance appraisal system in place. If you don’t, then when the time comes to lay off significant numbers of employers, you may find yourself with no rational basis on which to decide who stays or leaves. 4. Dismissal’s Effects – There are both physical and psychological ramifications associated with dismissals. 5. Bumping/Layoff Procedures – Employers who encounter frequent business slowdowns and layoffs may have procedures that let employees use their seniority to remain on the job. 6. Layoff and Downsizing Alternatives – Given the investments they have in recruiting, screening, and training employees, many employers are hesitant to lay off people at the first sign of business decline. There are several alternatives. F. Adjusting to Downsizings and Mergers Firms often use downsizing—reducing, usually dramatically, the number of people the firm employs—to better their financial position. Yet many firms discover operating earnings don’t rise after major cuts. Low morale among those remaining may be part of the problem. Regardless of why you’re downsizing, think through the process, both to avoid unnecessary consequences and to ensure the process is fair. Some guidelines for implementing a reduction in force are provided. * NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. Explain how you would ensure fairness in disciplining, discussing particularly the prerequisites to disciplining, disciplining guidelines, and the discipline without punishment approach. Answer: There are many things that can be helpful: • Make sure the evidence supports the charge of employee wrongdoing. • Ensure that the employee’s due process rights are protected. • Warn the employee of the disciplinary consequences. • The rule that was allegedly violated should be “reasonably related” to the efficient and safe operation of the particular work environment. • Fairly and adequately investigate the matter before administering discipline. • The investigation should produce substantial evidence of misconduct. • Rules, orders, or penalties should be applied evenhandedly. • The penalty should be reasonably related to the misconduct and to the employee’s past work history. • Maintain the employee’s right to counsel. • Don’t rob a subordinate of his or her dignity. • Remember that the burden of proof is on you. • Get the facts. Don’t base a decision on hearsay or on your general impression. • Don’t act while angry. • Create a formalized appeals process. • Make sure all rules and policies are communicated and clearly explained in advance. 2. Why is it important in our highly litigious society to manage dismissals properly? Answer: If you do not follow the law and your own policies and procedures, then you are likely to have the courts rule against you. This can be very costly and damaging to employee morale and your reputation. 3. What techniques would you use as alternatives to traditional discipline? What do such alternatives have to do with “organizational justice”? Why do you think alternatives like these are important, given industry’s need today for highly committed employees? Answer: If you are going to attract and retain top quality employees, it is critical to have a strong sense of organizational justice. Disciplinary techniques and methods can be related to the legal techniques and methods in our society at large. If they work well, people believe justice is served. If the do not work well, people feel there is injustice. 4. Provide three examples of behaviors that would probably be unethical but legal, and three that would probably be illegal but ethical. Answer: While most students think of ethical behavior, they think of rules for distinguishing between right and wrong, such as the Golden Rule ("do unto others as you would have them do unto you"), a code of professional conduct like the Hippocratic Oath ("first of all, do no harm"). But the difference between ethical/unethical and legal/illegal behavior can become blurred and often debated. Here are several examples to help make the distinction more clear. Unethical but legal •Submitting the same paper for two different course assignments •Listing information on your resume that is incorrect in order to obtain a job which you might not otherwise be qualified •Performing non-work-related activities when you are being paid by your employer Illegal but ethical •Operating a motor vehicle while over your state’s legal limit for alcohol intoxication •Stopping at a red light but then proceeding through the intersection before you receive the green light •Driving over the legal speed limit 5. List 10 things your college or university does to encourage ethical behavior by students and/or faculty. Answer: Answers will vary by college, but the use of multiple test forms, policies, ethics courses, and software to identify plagiarism are examples common to most colleges. 1. Code of Conduct: Enforces a clear code of conduct outlining expectations for ethical behavior. 2. Academic Integrity Policies: Implements strict policies against plagiarism and cheating. 3. Ethics Training: Provides workshops and seminars on ethical practices and decision-making. 4. Honor Codes: Utilizes honor codes that students pledge to uphold academic integrity. 5. Reporting Mechanisms: Establishes confidential channels for reporting unethical behavior. 6. Ethical Leadership: Promotes ethical leadership through faculty role models and administration. 7. Ethics Committees: Forms committees to address ethical concerns and enforce policies. 8. Regular Evaluations: Conducts regular evaluations of ethical practices within departments. 9. Student and Faculty Handbooks: Distributes handbooks detailing ethical guidelines and consequences. 10. Cultural and Diversity Programs: Offers programs that emphasize respect, fairness, and ethical behavior across diverse communities. 6. You need to select a nanny for your or a relative’s child, and want someone ethical. Based on what you read in this chapter, what would you do to help ensure you ended up hiring someone ethical? Answer: Asking questions about values, and paying attention to both the answers and the nonverbals that accompany them, finding out how the nanny acted in past situations and clarifying expectations as fully as possible will all go a long way toward ensuring that the nanny is ethical. To ensure you hire an ethical nanny: 1. Conduct Thorough Background Checks: Verify criminal history, previous employment, and references to ensure a history of ethical behavior. 2. Ask Ethical Questions: Include questions about handling ethical dilemmas and past experiences in interviews to gauge their moral values. 3. Check References: Speak with previous employers about the nanny’s reliability, integrity, and behavior. 4. Discuss Expectations Clearly: Clearly outline your expectations regarding ethics and behavior in the job description and during the interview. 5. Observe Interactions: Assess how the nanny interacts with children and responds to various situations to evaluate their ethical stance in practice. 7. You believe your employee is being insubordinate. How would you verify this and what would you do about it if true? Answer: It is important to conduct a full investigation of suspicions. Asking trusted employees for feedback on performance in the unit on a regular basis often will assist in clarifying where problems exist. Once the allegations are clear, meeting with the employee to discuss the situation, and their reasons for it is crucial. Depending on the situation, the reasons, and the severity of the offense, progressive discipline would be the next step. 8. Several years ago Wal-Mart instituted a new scheduling system that makes it more difficult for its employees to know for sure what hours they would be working. Basically, the store supervisor calls them at the last minute if there’s an opening for that day. Based on what you read in this chapter, is the new system ethical? Why or why not? Is it fair? What would you do if you were a Wal-Mart employee? Answer: If employees have a clear understanding of the system, and they know what the rules are regarding availability, then it would seem that the system is ethical. However, asking that an employee reserve the time and then sending them home for reasons beyond their control does not seem fair. Wal-Mart employees are likely to express their dissatisfaction with increased turnover, which will result in higher recruiting and training costs for the store. 1. Working individually or in groups, interview managers or administrators at your employer or college in order to determine the extent to which the employer or college endeavors to build two-way communication, and the specific types of programs used. Do the managers think they are effective? What do the employees (or faculty members) think of the programs in use at the employer or college? Answer: Encourage students to be precise and inquisitive in their pursuit of this information. To assess how well your employer or college builds two-way communication, follow these steps: 1. Interview Managers/Administrators: Ask about strategies and programs used for fostering two-way communication, such as regular meetings, feedback systems, and suggestion boxes. 2. Evaluate Effectiveness: Inquire whether managers believe these communication strategies are effective and why, focusing on their experiences and observations. 3. Survey Employees/Faculty: Gather feedback from employees or faculty on their perceptions of the communication programs, including their satisfaction and any suggestions for improvement. 4. Analyze Responses: Compare the views of managers and employees/faculty to identify alignment or gaps in communication effectiveness. 5. Report Findings: Summarize the effectiveness of the programs and any recommendations for enhancing two-way communication based on the feedback collected. 2. Working individually or in groups, obtain copies of the student handbook for your college and determine to what extent there is a formal process through which students can air grievances. Based on your contacts with other students, has it been an effective grievance process? Why or why not? Answer: Ask what effect this has on the sense of organizational justice. To evaluate the grievance process at your college: 1. Obtain the Handbook: Secure a copy of the student handbook, either through the college's website or administrative offices. 2. Review Grievance Procedures: Examine the handbook for details on the formal grievance process, including steps for filing complaints, timelines, and responsible offices or personnel. 3. Survey Students: Contact other students to gather their experiences and opinions on the effectiveness of the grievance process. 4. Assess Effectiveness: Analyze feedback to determine if students find the process fair, accessible, and effective in resolving issues. 5. Report Findings: Summarize the formal process and evaluate its effectiveness based on student feedback, noting any areas for improvement. 3. Working individually or in groups, determine the nature of the academic discipline process in your college. Do you think it is effective? Based on what you read in this chapter, would you recommend any modifications? Answer: Encourage students to be inquisitive and insightful as they examine this critical and real issue. To assess the academic discipline process at your college: 1. Review the Process: Obtain information about the academic discipline process from the student handbook or academic affairs office. Focus on procedures for addressing academic misconduct, appeals, and penalties. 2. Interview Stakeholders: Speak with academic advisors, faculty members, and students to understand their perspectives on how the process is implemented and its effectiveness. 3. Evaluate Effectiveness: Determine if the process is perceived as fair, consistent, and transparent, and whether it effectively addresses and resolves academic issues. 4. Recommend Modifications: Based on best practices from the chapter, suggest improvements such as clearer communication of policies, additional training for faculty on enforcement, or a more structured appeals process to ensure fairness and transparency. 4. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge someone studying for the HRCI certification exam needs to have in each area of human resource management (such as in Strategic Management, Workforce Planning, and Human Resource Development). In groups of four to five students, do four things: (1) review that appendix now; (2) identify the material in this chapter that relates to the required knowledge the appendix lists; (3) write four multiple-choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team’s questions in front of the class, so the students in other teams can take each others’ exam questions. Answer: Material from this chapter that applies to the HRCI exam would include: the meaning of ethics, ethics and the law, ethics fair treatment and justice, what shapes ethics behavior at work, ethics policies and codes, the organization’s culture, HR ethics activities, building two-way communications, formal disciplinary appeals processes, discipline without punishment, employee privacy, grounds for dismissal, avoiding wrongful discharge suits, personal supervisory liability, the termination interview, layoffs and the plant closing law, and adjusting to downsizings and mergers. 5. In a recent research study at Ohio State University, a professor found that even honest people, left to their own devices, will steal from their employers. In this study, the researchers gave financial services workers the opportunity to steal a small amount of money after participating in an after-work project for which the pay was inadequate. Would the employees steal to make up for the underpayment? In most cases, yes. Employees who scored low on an honesty test stole whether or not their office had an ethics program that said stealing from the company was illegal. Employees who scored high on the honesty test also stole, but only if their office did not have such an employee ethics program—the “honest” people didn’t steal if there was an ethics policy. In groups of four or five students, answer these questions: Do you think findings like these are generalizable? In other words, would they apply across the board to employees in other types of companies and situations? If your answer is yes, what do you think this implies about the need for and wisdom of having an ethics program? Answer: You should receive a wide variety of responses to this question. It is a real question of whether the employees who score high on honesty tests will, in fact, respond differently based on the existence of an ethics policy. Yes, these findings are likely generalizable across different companies and situations. They imply that ethics programs are crucial, as they can deter even honest employees from unethical behavior, especially when they feel inadequately compensated. Such programs help establish a clear ethical standard and provide guidance, reducing the likelihood of dishonesty and enhancing overall integrity in the workplace. EXPERIENTIAL EXERCISES & CASES Experiential Exercise: Discipline or Not? The purpose of this exercise is to provide the student with some experience in analyzing and handling an actual disciplinary action. Students have the opportunity to look at a disciplinary action that went to arbitration and see if they come up with the same decision that the arbitrator did. Application Case: Enron, Ethics, and Organizational Culture 1. Based on what you read in this chapter, summarize in one page or less how you would explain Enron’s ethical meltdown. Answer: Lax oversight by the six-person audit committee was a major contributor to the collapse of the firm. Executives carried out a series of complex financial transactions designed to remove debt from the balance sheet and artificially inflate the revenue. 2. It is said that when one securities analyst tried to confront Enron’s CEO about the firm’s unusual accounting statements, the CEO publicly used vulgar language to describe the analyst, and that Enron employees subsequently thought doing so was humorous. If true, what does that say about Enron’s ethical culture? Answer: Enron promoted a culture of reckless financial deals, avarice, and deceit. A sense of social responsibility, ethical behavior, and respect appeared completely absent. If true, this incident indicates a troubling ethical culture at Enron. It suggests a lack of respect for ethical scrutiny and accountability, where dismissing concerns with vulgar language was normalized and even found humorous. Such behavior reflects a culture that likely disregards ethical standards and undermines the importance of transparency and integrity in the organization. 3. This case and chapter both had something to say about how organizational culture influences ethical behavior. What role do you think culture played at Enron? Give five specific examples of things Enron’s CEO could have done to create a healthy ethical culture. Answer: Create an independent external board of directors to oversee the goals and corporate strategies, create and implement effective auditing practices, select a CEO who is responsible for the ethical behavior of the organization, remove the CEO if not effective, and encourage employees to report unethical behavior and take appropriate corrective counseling. Continuing Case: Carter Cleaning Company – Guaranteeing Fair Treatment 1. What would you do if you were Jennifer, and why? Answer: The difficulty is that even though they have always “felt strongly about not allowing employees to smoke, eat, or drink in their stores,” they had apparently never established any policies about this. Given this, it seems appropriate to give them a strong verbal warning, including the explanation that future violations will result in more severe disciplinary action. 2. Should a disciplinary system be established at Carter’s Cleaning Centers? Answer: Definitely, a corrective coaching program should be implemented immediately. This type of program will help employees understand why their behavior/performance is not meeting standards. It will also help protect the organization from future litigation claims. In this situation, the staff may not have realized the severity of their actions. 3. If so, what should it cover, and how would you suggest it deal with a situation such as the one with the errant counter people? Answer: It should cover all behavior and performance that is expected of employees. It would identify the steps of the process, including verbal warnings, written warnings, and dismissal. 4. How would you deal with the store manager? Answer: The real question is whether the store manager knew about their beliefs about eating in the store. If he or she did, then a written warning is appropriate – if not, then a strong verbal warning is the best action. Translating Strategy into HR Policies and Practice Case: The Hotel Paris The Hotel Paris’s New Ethics, Justice, and Fair Treatment Process – The continuing case study of Hotel Paris is discussed here. In this example, Lisa Cruz, the HR manager, is developing a program to increase the degree of ethics, justice, and fair treatment in the organization. 1. List three specific steps Hotel Paris should take with respect to each individual human resource function (selection, training, and so on) to improve the level of ethics in the company. Answer: Answers will vary. However, some possible steps would be to incorporate honesty testing in selection, to train employees using ethics cases, and to discipline immediately and severely for ethics breaches on the part of any employee. 1. Selection: • Implement rigorous screening for ethical behavior during hiring. • Include ethical scenario questions in interviews. • Check references specifically for past ethical conduct. 2. Training: • Provide mandatory ethics training for all employees. • Conduct regular workshops and refreshers on ethical practices. • Incorporate real-life case studies to illustrate ethical decision-making. 3. Performance Management: • Include ethical behavior as a key performance criterion. • Regularly review and address ethical concerns or misconduct. • Reward and recognize employees who exemplify strong ethical standards. 2. Based on what you read in this chapter, create in outline form a strategy map showing how the Hotel’s HR function can foster employee ethics. Answer: A. Highlight the importance of ethics and fair treatment within the new employee orientation. B. Provide additional training to all supervisory staff on employment legislation and the importance of building and maintaining a culture of fair treatment and equity. C. Develop and implement a policy that stresses the importance of all staff being treated in a fair and equitable manner. The policy should also outline why ethics in the workplace is important. D. Implement a program where claims of discrimination or unethical treatment can be reviewed and addressed. Appeals to the final decision should rest with senior leadership. E. Periodic staff meetings should be conducted where the topic of ethics and fair treatment are addressed and staff has the option to ask questions and/or discuss concerns. 3. Based on what you learned in this chapter, write a short (less than one page) explanation Lisa can use to sell to top management the need to improve the hotel chain’s fairness and justice processes. Answer: Senior leadership should be educated that claims of unfair treatment can be both expensive and expansive. Litigation to defend a claim can be costly and result in an unpopular reflection of the organization in the media. Also, recent cases have included personal liability on the part of senior management. Senior management can have the most significant impact on creating and maintaining a culture of fair treatment. KEY TERMS PART FIVE EMPLOYEE RELATIONS CHAPTER Fifteen Labor Relations And Collective Bargaining 15 Lecture Outline Strategic Overview The Labor Movement Why do Workers Organize? What do Unions Want? The AFL-CIO and the SEIU Unions and the Law Period of Strong Encouragement Period of Modified Encouragement Unfair Union Labor Practices The Union Drive and Election Step 1. Initial Contact Step 2. Obtaining Authorization Cards Step 3. Hold a Hearing Step 4. The Campaign Step 5. The Election How to Lose an NLRB Election Evidence-Based HR The Supervisor’s Role Rules Regarding Literature and Solicitation Decertification Elections: Ousting the Union The Collective Bargaining Process What is Collective Bargaining? What is Good Faith? The Negotiating Team Bargaining Items Bargaining Hints Impasses, Mediation, and Strikes Improving Productivity through HRIS The Contract Agreement Dealing with Disputes and Grievances Sources of Grievances The Grievance Procedure Guidelines for Handling Grievances The Union Movement Today and Tomorrow Why Union Membership Is Down An Upswing for Unions? Card Check and Other New Union Tactics High Performance Work Systems, Employee Participation and Unions In Brief: This chapter gives a brief history of the labor movement, outlines the basics of labor law, and reviews the procedures of labor elections, collective bargaining, and contract administration. The chapter also takes a close look at union tactics in recent years. Interesting Issues: Union membership has declined in the past few decades. However, unions are trying to organize women and minorities, temporary and contingent workers, and those in jobs not traditionally unionized. With increasing aggressiveness, unions are targeting multinational companies to unionize workers around the world. LEARNING OUTCOMES 1. Give a brief history of the American labor movement. 2. Discuss the main features of at least three major pieces of labor legislation. 3. Present examples of what to expect during the union drive and election. 4. Describe five ways to lose an NLRB election. 5. Illustrate with examples bargaining that is not in good faith. 6. Develop a grievance procedure. ANNOTATED OUTLINE The Labor Movement Unions have changed dramatically since their creation. About 11.9% of the people in this country are unionized. Unions, in many cases, are perceived in a negative light, but this is a poor assumption to make. Most unions are in the public sector as compared to the private sector. A. Why Do Workers Organize? The urge to unionize often seems to boil down to the belief on the part of workers that it is only through unity that they can get their fair share of the pie. It is sometimes the result of workers trying to protect themselves from management’s whims. Union workers tend to receive significantly more pay, holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various other benefits than do nonunion workers. Unions seem to have reduced the impact of downsizings and wage cuts in most industries, in part because union employees are not entirely “at will.” B. What Do Unions Want? Unions have two sets of aims −one for union security and one for improved wages, hours, working conditions, and benefits for their members. 1. Union Security – The five types of union security are closed shop, union shop, agency shop, preferential shop, and maintenance of membership arrangement. 2. Improved Wages, Hours, and Benefits – The typical labor agreement also gives the union a role in other HR activities, including recruiting, selecting, compensating, promoting, training, and discharging employees. C. The AFL-CIO and SEIU The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a voluntary federation of about 100 national and international labor unions in the United States. The AFL and CIO merged in 1955. The three layers of structure in the AFL-CIO are the local union (a single chapter in a national union), the national union, and the national federation. Changes have occurred recently. Four big unions have withdrawn from the AFL-CIO and have established the Change to Win Coalition. The Service Employees International Union (SEIU) is one of them. They are the fastest growing federation with more than 2 million members. * NOTES Educational Materials to Use II. Unions and the Law – There were no special labor laws until about 1930, so employers were virtually unrestrained in their behavior toward unions. Since the Great Depression, in response to changing public attitudes, values, and economic conditions, labor law has gone through three clear changes: from strong encouragement of unions, to modified encouragement coupled with regulation, and finally, to detailed regulation of internal union affairs. A. Period of Strong Encouragement: The Norris-LaGuardia Act (1932) and the National Labor Relations or Wagner Act (1935) – The Norris-LaGuardia Act guaranteed to each employee the right to bargain collectively free from interference, restraint, or coercion, but it did little to restrain employers from fighting labor organizations. The National Labor Relations (Wagner) Act of 1935 (1) banned certain unfair labor practices; (2) provided for secret-ballot elections and majority rule for determining whether a firm’s employees were to unionize; and (3) created the National Labor Relations Board (NLRB) for enforcing these two provisions. 1. Unfair Employer Labor Practices – As deemed by the Wagner Act, a) it is unfair for employers to interfere with, restrain, or coerce employees in exercising their legally sanctioned right of self-organization; b) it is unfair for company representatives to dominate or interfere with either the formation or the administration of labor unions; c) companies are prohibited from discriminating in any way against employees for their legal union activities; d) employers are forbidden to discharge or discriminate against employees simply because the latter file unfair practice charges against the company; and e) it is unfair for employers to refuse to bargain collectively with their employees’ duly chosen representatives. 2. From 1935 to 1947 – Union membership increased quickly after passage of the Wagner Act in 1935, but the tide had begun to turn by the mid-1940s. B. Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) – The law amended the Wagner Act with provisions aimed at limiting unions in four ways: (1) by prohibiting unfair union labor practices, (2) by enumerating the rights of employees as union members, (3) by enumerating the rights of employers, and (4) by allowing the President of the United States to temporarily bar national emergency strikes. C. Unfair Union Labor Practices – According to the Taft-Hartley Act, a) unions cannot restrain or coerce employees from exercising their guaranteed bargaining rights; b) unions cannot cause an employer to discriminate in any way against an employee in order to encourage or discourage his/her membership in a union; c) unions cannot refuse to bargain in good faith with the employer about wages, hours, and other employment conditions (certain strikes and boycotts are also unfair union labor practices); and d) unions cannot engage in featherbedding. 1. Rights of Employees – The Taft-Hartley Act protects employees from their unions. 2. Rights of Employers – The Taft-Hartley Act explicitly gives employers full freedom to express their views concerning union organization. The only major restraint is that employers must avoid threats, promises, coercion, and direct interference with workers who are trying to reach a decision. The employer (1) cannot meet with employees on company time within 24 hours of an election or (2) suggest to employees that they vote against the union while they are at home or in the employer’s office, although he/she can do so while in their work area or where they normally gather. 3. National Emergency Strikes – The Taft-Hartley Act allows the U.S. President to intervene in national emergency strikes. The President may appoint a board of inquiry and, based on its report, apply for an injunction restraining the strike for 60 days. If the parties don’t reach a settlement during that time, the President can have the injunction extended for another 20 days, during which time employees take a secret ballot to ascertain their willingness to accept the employer’s last offer. 4. Period of Detailed Regulation of Internal Union Affairs: The Landrum-Griffin Act (1959) (officially, the Labor Management Reporting and Disclosure Act), an amendment to the Wagner Act, is aimed at protecting union members from possible wrongdoing on the part of their unions. This law provides a bill of rights for union members; lays out rules regarding union elections; regulates the kind of person who can serve as a union officer; greatly expands the list of unlawful employer actions; and requires reports from unions and employers, covering such practices as the use of labor relations consultants. * NOTES Educational Materials to Use III. The Union Drive and Election A. Step 1. Initial Contact – The union determines the employees’ interest in organizing, and an organizing committee is established. The initiative for the first contact between the employees and the union may come from the employees, from a union already representing other employees of the firm, or from a union representing workers elsewhere. Once an employer becomes a target, a union official usually assigns a representative to assess employee interest. He/she identifies employees who would make a good organizing committee, and educates them on the benefits of forming a union, the law and procedures involved in forming a local union, and the issues management is likely to raise during a campaign. The union must follow certain rules when it starts contacting employees. 1. Labor relations consultants are outside advisors (such as law firms, researchers, psychologists, labor relations specialists, or public relations firms) used by both management and unions to provide advice and related services to assist in the winning of elections. 2. Union salting is an organizing tactic by which full-time undercover union organizers are hired by unwitting employers. A U.S. Supreme Court decision held the practice to be legal. Critics claim that “salts” interfere with business operations and harass employees. B. Step 2. Obtaining Authorization Cards – This step is necessary for the union to petition the NLRB for the right to hold an election. Thirty percent of the eligible employees in an appropriate bargaining unit must sign authorization cards before the union can petition the NLRB for an election. During this stage, both union and management typically use various forms of propaganda. However, neither side can threaten, bribe, or coerce employees, and an employer may not make promises that benefit employees or make unilateral changes in terms and conditions of employment that were not planned prior to the union organizing activity. C. Step 3. Hold a Hearing – One of three things can occur once the union collects the authorization cards: 1) no hearing is needed if the employer chooses not to contest union recognition and a consent election is held immediately; 2) if the employer chooses not to contest the union’s right to an election, and/or scope of the bargaining unit, and/or which employees are eligible to vote in the election, no hearing is needed and the parties can stipulate an election; or 3) if an employer does wish to contest the union’s right, it can insist on a hearing to determine those issues. An employer’s decision about whether to insist on a hearing is a strategic one based on the facts of each case and whether it feels it needs additional time to develop a campaign to try to persuade a majority of its employees not to elect a union to represent them. The hearing addresses several issues. If the results of the hearing are favorable for the union, the NLRB will order holding an election, issue a Notice of Election to that effect, and send NLRB form 707 (see Figure 14-6) to the employer to post. D. Step 4. The Campaign – During this stage, the union and the employer appeal to employees for their votes, but neither side can threaten, bribe, or coerce employees. E. Step 5. The Election – A secret ballot election is held within 30 to 60 days after the NLRB issues its Decision and Direction of Election. The NLRB provides the ballots (see Figure 14-7), voting booth, and ballot box, and counts the votes and certifies the results of the election. The union becomes the employees’ representative if it wins the election by a majority of the votes cast. F. How to Lose an NLRB Election – The five sure ways to lose an election are: 1. Being asleep at the switch 2. Appointing a committee 3. Concentrating on money and benefits 4. Delegating too much to division or branches G. Evidence-Based HR: What to Expect the Union to Do to Win the Election – Research suggests that pursuing a “rank and file strategy” is the best way for unions to win elections. The details of this are discussed. H. The Supervisor's Role – Supervisors are the first line of defense when it comes to the unionizing effort. Supervisors need some special training because they can discover the early signs of union activity or they can inadvertently take actions that hurt their employers’ union-related efforts. Supervisors must be knowledgeable about what they can and can’t do to legally hamper organizing activities. Some TIPS: The Supervisor’s Role in the Unionizing Effort – One company helps its supervisors remember what they may and may not do with respect to unionization with the acronyms TIPS and FORE. For example, the manager should remember TIPS for what he or she may not do: threaten, interrogate, promise, or spy. To remember what to do to discourage unionization, the supervisor may remember FORE: facts, opinion, rules, and experience. I. Rules Regarding Literature and Solicitation – Employers can do the following: always bar nonemployees from soliciting during their work time (when the employee is on duty and not on a break); usually stop employees from soliciting other employees for any purpose if one or both employees are on paid-duty time and not on a break; bar nonemployees from the building’s interiors and work areas as a right of private property owners (excluding retail stores, shopping centers, and certain other employers); sometimes bar nonemployees from exterior private areas if there is a business reason and the reason is not just to interfere with union organizers; and deny on- or off-duty employees access to interior or exterior areas only if they can show the rule is required for reasons of production, safety, or discipline. Such restrictions are only valid if the employer doesn’t discriminate against the union. J. Decertification Elections: Ousting the Union – The same law that grants employees the right to unionize also gives them a way to legally terminate their union’s right to represent them, which is known as decertification. Decertification campaigns don’t differ much from certification campaigns. * NOTES Educational Materials to Use IV. The Collective Bargaining Process A. What is Collective Bargaining? According to the National Labor Relations Act, collective bargaining “is the performance of the mutual obligation of the employer and the representatives of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder, and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession.” B. What is Good Faith? In collective bargaining, good faith means that both parties communicate and negotiate, that proposals are matched with counterproposals, and that both parties make every reasonable effort to arrive at an agreement. 1. When is Bargaining Not in Good Faith? A violation of the requirement for good faith bargaining may include the following: surface bargaining; inadequate concessions; inadequate proposals and demands; dilatory tactics; imposing conditions; making unilateral changes in conditions; bypassing the representative; committing unfair labor practices during negotiations; and withholding information. C. The Negotiating Team – Both union and management send a negotiating team to the bargaining table. It is vital that the team understand the impact, particularly the financial impact, of the things they either propose or accept in negotiations. D. Bargaining Items – Labor law sets out categories of items that are subject to bargaining: mandatory, voluntary, and illegal items. Mandatory items are items that a party must bargain over if they are introduced by the other party. Voluntary (permissible) items are neither mandatory nor illegal; they become a part of the negotiations only through the joint agreement of both management and union. Illegal items are forbidden by law. E. Bargaining Hints – Be sure you have set clear objectives for every bargaining item, and you understand on what grounds the objectives are established; do not hurry; when in doubt, caucus with your associates; be well prepared with firm data supporting your position; always strive to keep some flexibility in your position; don’t just concern yourself with what the other party says and does – find out why; respect the importance of face saving for the other party; constantly be alert to the real intentions of the other party with respect not only to goals but also priorities; be a good listener; build a reputation for being fair but firm; learn to control your emotions – don’t panic; be sure as you make each bargaining move that you know its relationship to all other moves; measure each move against your objectives; pay close attention to the wording of every clause negotiated; remember that collective bargaining negotiations are, by their nature, part of a compromise process; try to understand people and their personalities; and consider the impact of present negotiations on those in future years. Teaching Tip: It is helpful to have blank pages bound into the copies of the union contract. This enables every supervisor to jot down areas where there have been misunderstandings or misinterpretations of the contract due to unclear language. Prior to the renewal of a contract, the HR or Labor Relations department can collect the contract notes to see where the issues have been at the supervisory level. F. Impasses, Mediation, and Strikes Third Party Involvement – Three types of third-party interventions are used to overcome an impasse: mediation, fact-finding, and arbitration. With mediation a neutral third party tries to assist the principals in reaching agreement. A fact finder is a neutral party who studies the issues in a dispute and makes a public recommendation of what a reasonable settlement ought to be. Arbitration (binding or unbinding) can guarantee a solution to an impasse because the arbitrator often has the power to determine and dictate the settlement terms. Various public and professional agencies make mediators and arbitrators available. Figure 15-5 shows the form used to request a third party from the Federal Mediation and Conciliation Service. Sources of third-party assistance come from various public and professional agencies. Strikes are a withdrawal of labor. There are four types of strikes: economic strike, unfair labor practice strike, wildcat strike, and sympathy strike. An economic strike results from a failure to agree on the terms of a contract that involve wages, benefits, and conditions of employment. Unfair labor practice strikes are called by unions to protest illegal conduct by the employer. A wildcat strike is an unauthorized strike occurring during the term of a contract. Picketing is one of the first activities occurring during a strike. Strike Guidelines for Employees – Several guidelines are discussed that can minimize confusion during a strike. Other “weapons” to break an impasse include corporate campaigns and lockouts. A corporate campaign is an organized effort by the union that exerts pressure on the corporation by pressuring the company’s other unions, shareholders, directors, customers, creditors, and government agencies, often directly. A lockout is a refusal by the employer to provide opportunities to work. G. Improving Productivity through HRIS: Unions Go High-Tech – Unions are taking full advantage of email and the Internet to reach members and other union supporters quickly and easily. H. The contract agreement may be 20-30 pages or longer, and the main sections cover these subjects: 1) management rights, 2) union security and automatic payroll dues deduction, 3) grievance procedures, 4) arbitration of grievances, 5) disciplinary procedures, 6) compensation rates, 7) hours of work and overtime, 8) benefits: vacations, holidays, insurance, pensions, 9) health and safety provisions, 10) employee security seniority provisions, and 11) contract expiration date. * NOTES Educational Materials to Use V. Dealing with Disputes and Grievances A. Sources of Grievances – Employees may use just about any factor involving wages, hours, or conditions of employment as the basis of a grievance. B. The Grievance Procedure – It is specified in most collective bargaining contracts, which specifies the various steps in the procedure, time limits, and specific rules. Union grievance procedures differ from firm to firm. C. Guidelines for Handling Grievances – Do’s: As a manager, do investigate and handle each and every case as though it may eventually result in an arbitration hearing; talk with the employee about his/her grievance; require the union to identify specific contractual provisions allegedly violated; comply with the contractual time limits of the company for handling the grievance; visit the work area of the grievance; determine whether there were any witnesses; examine the grievant’s personnel record; fully examine prior grievance records; treat the union representative as your equal; hold your grievance discussions privately; and fully inform your own supervisor of grievance matters. Don’ts: discuss the case with the union steward alone – the grievant should be there; make arrangements with individual employees that are inconsistent with the labor arrangement; hold back the remedy if the company is wrong; admit the binding effect of a past practice; relinquish to the union your rights as a manager; settle grievances on the basis of what is fair – stick to the labor agreement; bargain over items not covered by the contract; treat as subject to arbitration claims demanding the discipline or discharge of managers; give long written grievance answers; trade a grievance settlement for a grievance withdrawal; deny grievances on the premise that your “hands have been tied by management;” and do not agree to informal amendments in the contract. * NOTES Educational Materials to Use VI. The Union Movement Today and Tomorrow A. Why Union Membership Is Down – The 1980s and 1990s were hard times for unions. About 35% of the non-farm U.S. workforce belonged to unions by the 1960s. Today, that figure had dropped to about 12%. Global competition and new technologies have forced employers to cut costs and reduce inefficiencies, which has squeezed unions. B. An Upswing for Unions? A slight majority of union workers are now white-collar, and nearly 40% of college faculties are unionized. The union election win rate has increased slightly, and the decline seems to have leveled off. C. Card Check and New Union Tactics – Unions are becoming more aggressive, pressuring employers through class action lawsuits, and pushing Congress to pass legislation which would support a “card check” system. Instead of secret ballot elections, the union would win recognition when a majority of workers signed cards saying they want a union. Unions are also using class action lawsuits to pressure employers to unionize. It is becoming necessary for unions to go global. This recently happened to Wal-Mart stores in China. D. High-Performance Work Systems, Employee Participation Programs, and Unions – Employee participation programs are now subject to serious legal challenge under the NLRA as unfair labor practices because they may be viewed as sham unions. Whether an employer’s participation program is viewed as an impermissible labor organization revolves around the dominance and the actual role of the participation committee. Instituting “afe” participation programs can be facilitated by taking the following steps: involve employees in the formation of these programs to the greatest extent practical; continually emphasize to employees that the committees exist for the exclusive purpose of addressing issues such as quality and productivity; do not try to establish such committees at the same time union organizing activities are beginning in your facility; fill the committees with volunteers rather than elected employee representatives, and rotate membership to ensure broad employee participation; and minimize your participation in the committees’ day-to-day activities to avoid unlawful interference or, worse, the perception of domination. * NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. Why do employees join unions? What are the advantages and disadvantages of being a union member? Answer: Workers join unions because they tend to believe that it is only through unity that they can get their fair share of the pie and also protect themselves from management’s whims. Some of the advantages of being a union member are that they tend to receive significantly more pay, holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various other benefits than do nonunion members. One disadvantage of being a union member is that management may decide to terminate union jobs if management and the union can’t come to an agreement. 2. Discuss five sure ways to lose an NLRB election. Answer: The five sure ways to lose an election are listed and described in the text: 1) asleep at the switch; 2) appointing a committee; 3) concentrating on money and benefits; and 5) delegating too much to divisions or branches. 3. Describe important tactics you would expect the union to use during the union drive and election. Answer: Contacting and soliciting employees off the job and during breaks, picketing, using consultants to improve their public image, advertising, obtaining news spots, and forming an organizing committee of employees who they feel will be good leaders. 4. Briefly explain why labor law has gone through a cycle of repression and encouragement. Answer: Labor law has gone through cycles of repression and encouragement because of the changing views in Congress, the public, and the judiciary on the extent to which legalized collective bargaining is deemed to be a good approach to the economic situation facing the country as well as the views of personal and corporate rights. Changing public attitudes, values, and economic conditions clearly impact labor law, just as they impact law in every area. 5. Explain in detail each step in a union drive and election. Answer: Each step is described in detail in the text: 1) initial contact involves the union determination of the employees' interest in organizing and forming an organizing committee; 2) obtaining authorization cards is where the union seeks to obtain enough signatures on authorization cards to petition the NLRB to conduct an election; 3) holding a hearing is done by the NLRB to determine the appropriate bargaining unit and the legality of the authorization cards; 4) the campaign is where both sides present the issues to convince employees to vote one way or the other; and 5) the election is conducted by the NLRB through secret ballot. 6. What is meant by good faith bargaining? Using examples, explain when bargaining is not in good faith? Answer: Good faith bargaining means that both parties are communicating and negotiating and proposals are being matched with counterproposals with both parties making every reasonable effort to arrive at agreements. Examples of violations of good faith bargaining include: surface bargaining; inadequate concessions; inadequate proposals and demands; dilatory tactics; imposing conditions; making unilateral changes in conditions; bypassing the representative; committing unfair labor practices during negotiations; withholding information; and ignoring bargaining items. 7. Define impasse, mediation, and strike, and explain the techniques that are used to overcome an impasse. Answer: Impasse occurs when the parties are not able to move further toward settlement. Mediation is intervention in which a neutral third party tries to assist the principals in reaching agreement. A strike is the withdrawal of labor. An impasse might be overcome through mediation, fact-finders, arbitration, or the economic pressures of a strike or lock-out. INDIVIDUAL AND GROUP ACTIVITIES 1. You are the manager in a small manufacturing plant. The union contract covering most of your employees is about to expire. Working individually or in groups, discuss how to prepare for union contract negotiations. Answer: You need to know what is good faith bargaining and what constitutes a violation of good faith bargaining. Although as a supervisor you will not likely be involved in the negotiations, you can commit violations of good faith bargaining by making a unilateral change in working conditions or through the commission of an unfair labor practice. Also you need to be a vehicle to give information about employee attitudes and concerns to those conducting the bargaining. The list given in the chapter provides a good summary of how to prepare for bargaining. 2. Working individually or in groups, use Internet resources to find situations where company management and the union reached an impasse at some point during their negotiation process, but eventually resolved the impasse. Describe the issues of both sides that led to the impasse. How did they move past the impasse? What were the final outcomes? Answer: The students should be able to find several examples in the airline industry, professional sports industry, and the package delivery industry, just to mention a few. Here’s an example of a negotiation impasse between company management and a union: Case Example: General Motors and the United Auto Workers (UAW) – 2019 Negotiations Issues Leading to Impasse: • Management’s Position: General Motors (GM) aimed to reduce labor costs and increase flexibility in its workforce, including proposals for plant closures and fewer job guarantees. • Union’s Position: The UAW sought higher wages, better job security, and protections against plant closures, emphasizing the need for improvements in healthcare benefits and bonuses. Resolution Process: • Strike: The UAW went on strike for 40 days, which significantly impacted GM’s production and financial performance. • Negotiations: During the strike, both parties engaged in intensive negotiations, with mediators assisting to find common ground. • Compromises: GM agreed to invest in U.S. plants, offer better job security, and improve wages and benefits. The UAW made concessions on some work-rule changes. Final Outcomes: • Agreement: The conflict was resolved with a new four-year labor agreement. GM committed to investing in U.S. manufacturing facilities, and the UAW members received wage increases, improved benefits, and job security provisions. • Impact: The agreement helped restore production and addressed key issues for both parties, with GM gaining operational flexibility and the UAW securing improved terms for its members. 3. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge someone studying for the HRCI certification exam needs to have in each area of human resource management (such as in Strategic Management, Workforce Planning, and Human Resource Development). In groups of four to five students, do four things: (1) review that appendix now; (2) identify the material in this chapter that relates to the required knowledge the appendix lists; (3) write four multiple-choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam; and (4) if time permits, have someone from your team post your team’s questions in front of the class, so the students in other teams can take each others’ exam questions. Answer: Material from this chapter that would be relevant to the HRCI test includes: history of the American Union Movement, why workers organize, what do unions want, the AFL-CIO, unions and the law, the union drive and election, the collective bargaining process, grievances, and the union movement today and tomorrow. In short, virtually the entire chapter is applicable to material covered on the test. 4. Several years ago, 8,000 Amtrak workers agreed not to disrupt service by walking out, at least not until a court hearing was held. Amtrak had asked the courts for a temporary restraining order, and the Transport Workers Union of America was actually pleased to postpone its walkout. The workers were apparently not upset at Amtrak, but at Congress, for failing to provide enough funding for Amtrak. What, if anything, can an employer do when employees threaten to go on strike, not because of what the employer did, but what a third party—in this case, Congress—has done or not done? What laws would prevent the union from going on strike in this case? Answer: Employers can do several things…none of which are explained in this chapter. They can seek an injunction from a judge, they can file suit, they can seek to meet with the union and help them with their demands against the third party, etc. There are some laws and executive orders that prevent certain workers (transportation as well as safety and security personnel) from striking. The only one mentioned in this chapter is the Taft-Hartley Act which allows the President of the United States to temporarily bar national emergency strikes. EXPERIENTIAL EXERCISES & CASES Experiential Exercise: The Union Organizing Campaign at Pierce U. This exercise sets up a situation in which a supervisor has reported to the HR director that there have been unionization efforts in her department. She describes what has happened, what employees have said, and what other supervisors have said and done. The question for the students is what should HR Director Art Tipton do next. The most pressing issue to deal with right away is the apparent fact that supervisors are engaging in unfair labor practices. Art must hold a meeting with supervisors immediately to instruct them in what they can and cannot do. The lists of items are in the chapter. After everyone has been instructed on what they can and cannot do, the organization can turn to the issue of how to avoid becoming unionized. There are two lists in the text that can help with this issue: “How to Lose an NLRB Election” as well as “Guidelines for Employers Wishing to Stay Union-Free.” Application Case: Negotiating with the Writers Guild of America 1. The producers said the WGA was not bargaining in good faith. What did they mean by that, and do you think the evidence is sufficient to support the claim? Answer: Bargaining in good faith means that both parties honestly communicate and negotiate to make a reasonable effort to arrive at a fair agreement. It would be very difficult to determine if the WGA was not bargaining in good faith without knowing additional facts and details regarding the negotiations and bargaining between both parties. 2. The WGA did eventually strike. What tactics could the producers have used to fight back once the strike began? What tactics do you think the WGA used? Answer: The producers could have threatened to hire writers to take the place of striking employees. While this course of action would be very difficult given the creative nature of this business, often the threat of hiring replacement workers helps the process move toward a labor settlement. The WGA in return could claim the producers have committed an unfair labor practice. The WGA could also play to the media to gain sympathy for their job action. 3. This was a conflict between professional and creative people (the WGA) and TV and movie producers. Do you think the conflict was therefore different in any way than are the conflicts between, say, the Autoworkers or Teamsters unions against auto and trucking companies? Why? Answer: The conflict and bargaining process described in this scenario is no different than the day-to-day negotiations between any union and management. Very often, the issues are over wages, hours, and/or working conditions. 4. What role (with examples) did negotiating skills seem to play in the WGA producers’ negotiations? Answer: Timing played a role as well as a marathon bargaining session which tends to make each side more flexible and come to an agreement. Also the introduction of the heads of Walt Disney and News Corp played a role in moving both parties toward settlement. Continuing Case: Carter Cleaning Company – The Grievance 1. Do you think it is important for Carter Cleaning Company to have a formal grievance process? Why or why not? Answer: Certainly it is important for many reasons. First, it is important from a standpoint of justice and fair treatment. Second, the lack of justice and fair treatment is a prime catalyst for union activity. 2. Based on what you know about the Carter Cleaning Company, outline the steps in what you think would be the ideal grievance process for this company. Answer: Because it is a small company, it should be simple and short. One suggestion is a two-step process that begins with a written appeal to the store manager. The second step is to send that appeal to Jennifer and her father for review. 3. In addition to the grievance process, can you think of anything else that Carter Cleaning Company might do to make sure that grievances and gripes like this one are expressed and are heard by top management? Answer: The grievance procedure is critical. Students may identify many things from the previous chapter’s sections on justice and fair treatment. Translating Strategy into HR Policies and Practices Case: The Hotel Paris The Hotel Paris’s New Labor Relations Practices – In this case, Lisa Cruz, the HR manager at Hotel Paris, turns her attention to developing the hotel’s strategies with regard to labor relations and collective bargaining. 1. How should the details of the Hotel Paris’ strategy influence the new union-related practices (perhaps such as grievance procedures) it establishes? Answer: The hotel’s strategy of superiority in customer service and an increase in revenues and profitability will be significantly affected by any successful attempt by employees to unionize. 2. List and briefly describe what you believe are the three most important steps Hotel Paris management can take to reduce the likelihood unions will organize more of its employees. Answer: Hotel Paris should train managers and supervisors to recognize the signs of union activity and to deal with it. They should also develop a procedure whereby employees can air their grievances in a productive manner (an appeals process.) Third, the company needs to constantly and positively communicate the benefits their employees have by staying non-union. 3. Write a detailed 2-page outline for a, “What You Need to Know When the Union Calls” manual. Lisa will distribute this manual to her company’s supervisors and managers, telling them what they need to know about looking out for possible unionizing activity, and how to handle actual organizing process-related supervisory tasks. Answer: This list should incorporate many of the items on page 519. Outline for “What You Need to Know When the Union Calls” Manual Introduction 1. Purpose of the Manual • Objective: To provide supervisors and managers with essential information on recognizing and handling unionizing activities. • Scope: Overview of union organizing, legal considerations, and effective management practices. 2. Importance of Understanding Union Activities • Impact on workplace dynamics. • Legal and financial implications for the company. Section 1: Recognizing Early Signs of Union Organizing 1. Changes in Employee Behavior • Increased complaints or dissatisfaction. • Decline in morale or productivity. • Formation of employee groups or committees. 2. Direct and Indirect Communication • Observing informal discussions or rumors about unions. • Monitoring social media or other communication channels for union-related content. 3. Employee Requests for Information • Requests for information on labor laws, benefits, and company policies. 4. Surveying Employee Sentiment • Conducting anonymous surveys to gauge employee satisfaction and concerns. Section 2: Legal Framework and Company Policies 1. Understanding Labor Laws • Overview of the National Labor Relations Act (NLRA). • Employees’ rights to organize and the legal protections afforded to them. • Prohibited actions: Threats, coercion, and retaliation. 2. Company Policies on Union Activity • Review of existing company policies regarding employee rights and union activities. • Guidelines for supervisors and managers on legal compliance and company policy adherence. 3. Role of Human Resources • HR’s role in supporting management and ensuring legal compliance. • Procedures for consulting with legal experts or labor relations specialists. Section 3: Managing Union Organizing Efforts 1. Engaging with Employees • Effective communication strategies for addressing employee concerns. • Creating an open and transparent environment to prevent misunderstandings. 2. Handling Union Representatives • Procedures for interactions with union organizers. • Ensuring all communications are documented and respectful. 3. Responding to Organizing Campaigns • Developing strategies for addressing union campaigns. • Providing accurate and factual information to employees about the impact of unionization. 4. Training and Education • Training supervisors and managers on legal requirements and best practices. • Offering workshops on effective communication and conflict resolution. Section 4: During and After the Organizing Process 1. During the Campaign • Monitoring and documenting all union-related activities and communications. • Ensuring that all responses are consistent with company policies and legal standards. 2. Handling an Election • Understanding the election process and timeline. • Preparing for the possibility of a union victory or defeat. 3. Post-Election Procedures • Addressing any immediate changes or concerns following the election. • Implementing new policies or addressing grievances as necessary. • Reviewing and updating company policies based on the outcome and lessons learned. Conclusion 1. Summary of Key Points • Recap of the main strategies for recognizing and managing union activities. • Importance of maintaining compliance and fostering positive employee relations. 2. Resources and Contacts • List of internal and external resources for further assistance. • Contact information for HR, legal counsel, and labor relations experts. Appendices 1. Sample Communication Templates • Example scripts for addressing employee concerns and communicating with union representatives. 2. Legal Resources • References to relevant labor laws and regulations. 3. Training Materials • Recommended training programs and educational resources for supervisors and managers. This outline provides a comprehensive guide for supervisors and managers to navigate union-related issues effectively, ensuring they are well-prepared to handle potential unionizing activities and their impact on the company. KEY TERMS Solution Manual for Human Resource Management Gary Dessler 9780132668217, 9780134235455, 9780135172780