Chapter-12

Labor Relations & Collective Bargaining

Mohammed Sohail Mustafa

Aims of Unions
1.

Unions have two set of aims-: Union Security Unions seek to establish security for themselves. They fight hard for the right to represent a firms workers & to be the exclusive bargaining agent for employees in the unit. Five (5) types of union security are possible-: a) Closed Shop b) Union Shop c) Agency Shop d) Open Shop e) Maintenance of Membership Arrangement.

Mohammed Sohail Mustafa

Aims of Unions---Contd
2)

Improved Wages, Hours, and Benefits for Members Once their security is assured, unions fight to better the lot of their members-to improve their wages, hours, & working conditions. The typical labor agreement also gives the union a role in other HR activities, including recruiting, selecting, compensating, promoting, training and discharging employees.

Mohammed Sohail Mustafa

The Union Drive & Election

Step 1 : Initial Contact The union determines the employees interest in organizing, & an organizing committee is established Step 2 : Obtaining Authorization Cards In order for the union to petition the NLRB (National Labor Relation Board) for the right to hold an election, it must show that a sizable number of employees may be interested in being organized. Step 3 : Hold a Hearing If an employer does wish to contest the unions right, it can insist on a hearing to determine those issues.

Mohammed Sohail Mustafa

The Union Drive & Election----Contd

Step 4 : The Campaign During the campaign that precedes the election, both the union & the employer appeal to employees for their votes. Step 5 : The Election Finally the election can be held within 30 to 60 days after the NLRB issues its decision. The election is by secret ballot & the NLRB provides the ballots, voting booth, & ballot box & counts the votes & certifies the results of the election.

Mohammed Sohail Mustafa

What Is Collective Bargaining?

According to National Labor Relation Act:

For the purpose of (this act) to bargain collectively is the performance of the mutual obligation of the employer & the representative of the employees to meet at reasonable times & confer in good faith respect to wages, hours, & terms & conditions of employment, or the negotiation of an agreement or any question arising thereunder, & 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.

Mohammed Sohail Mustafa

What Is Collective Bargaining?---Contd

Collective bargaining is a complex process in which union & management negotiators maneuver to win the most advantageous contract. Reaching agreement on the variety of issues involved depends on the following-: Quality of the union-management relationship. Process of bargaining used by labor & management. Managements strategies. Joint strategies.
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Mohammed Sohail Mustafa

Union-management Relationships In Collective Bargaining

Each group in the labor relations system traditionally has different goals. Such as-: Workers are interested in improved working conditions, wages, & opportunities. Unions are interested in their own survival, growth & acquisition of power, all of which depends on their ability to maintain the support of the employees by providing for their needs. Management has overall organizational goals & also seeks to preserve managerial prerogatives to direct the workforce & to attain the personal goal of managers.

Mohammed Sohail Mustafa

Union-management Relationships In Collective Bargaining---Contd 1)

2)

Adversarial Relationship Under this system of union-management relations, the unions role is to gain concessions from management during collective bargaining & to preserve those concessions through the grievance procedure. The union is thus an outsider & a critic. Cooperative Relationship Under this system, the unions role is that of a partner, not a critic, & the union & management are jointly responsible for reaching a cooperative solution. Thus union & management must engage in problem solving, information sharing, & integration of outcomes.

Mohammed Sohail Mustafa

Process Of Collective Bargaining

1)

Distributive Bargaining It takes place when the parties are in conflict over the issue, & the outcome represents a gain for one party & a loss for the other. Each party tries to negotiate for the best possible outcome. Union & management negotiators each have three identifiable positions: Initial Demand Point It is a demand by the union for a wage settlement that is higher than what is expected to be granted. Target Point It is realistic assessment of the wage & condition the union is likely to get from management. Resistance Point It is the lowest acceptable level that the union can take or the highest acceptable offer by management.
Mohammed Sohail Mustafa

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Process Of Collective Bargaining----Contd

2)

3)

Integrative Bargaining It focuses on creative solutions to conflicts that reconcile the parties interests & yield high joint benefit. It can only occur when negotiators have an expanding pie perception- that is, when the two parties value particular issues differently. Concessionary Bargaining It may be prompted by severe economic conditions faced by employers. Seeking to survive & prosper, employers seek givebacks or concessions from the unions, giving promises of job security in return.

Mohammed Sohail Mustafa

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Process Of Collective Bargaining----Contd

4)

Continuous Bargaining A joint committee meets on a regular basis to explore issues & solve problems of common interest. Several features have been identified-: Frequent meetings during the life of the contract. Focus on external events & problem areas rather than on internal problems. Use of outside experts in decision-making. Use of a problem-solving (integrative) approaches.

Mohammed Sohail Mustafa

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Process Of Collective Bargaining----Contd

5)

Intraorganizational Bargaining During negotiations, the bargaining teams from both sides may have to engage in intraorganizational bargaining- that is, conferring with their constituents over changes in bargaining positions. Management negotiators may have to convince management to change its position on an issue-for instance, to agree to higher wage settlement.

Mohammed Sohail Mustafa

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Preparation For Bargaining

PHASE 1 : DEVELOPING STRATEGIES a) Management Strategies Specific proposals for changes in contract language. The general size of the economic package that the company anticipates offering during the negotiations. Statistical displays & supportive data that the company will use during negotiations. b) Union Strategies The financial situations of the company & its ability to pay. The attitude of management toward various issues, as reflected in past negotiations or inferred from negotiations in similar companies. The attitudes & desires of the employees
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Preparation For Bargaining----Contd PHASE 2 : DEVELOPING THE ISSUES a) Mandatory Issues The issues that affect managements ability to run the company efficiently or that clash with the unions desire to protect jobs & workers standing in their jobs. The issues include-: Wages, hours, & other terms & conditions of the employment, Any changes in the nature of jobs, Compensation for work, Subcontracting work, Safety, Changes of operations, 15

Mohammed Sohail Mustafa

Preparation For Bargaining----Contd

b)

Permissive Issues Issues that are neither mandatory nor illegal, rather not specifically related to the nature of the job but still of concern to both parties. Such as-:

Issues of price, Product design, Decisions about new jobs.

c)

Prohibited Issues Issues concerning illegal or outlawed activities such as the demand that an employer use only union-produced goods or, where it is illegal, that it employs only union members.

Mohammed Sohail Mustafa

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Preparation For Bargaining----Contd

d)

Institutional Issues
Some issues that are not directly related with jobs but are nevertheless be important to both employees & management. This are-:

Union security, Check-off, Strikes, Managerial prerogatives

e)

Administrative Issues The last category of issues is concerned with the treatment of employees at work. This are-:

Breaks & cleanup time, Job security, Seniority, Discharge & discipline, Production standards Grievance procedures, Training, & Duration of the agreement.
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Contract Administration: Grievances

Any factor involving wages, hours, or conditions of the employment that is used as a complaint against the employer is called Grievances. A grievance is a charge that the union-management contract has been violated. Sources of Grievances Absenteeism fired an employee for excessive absence. Insubordination refused twice to obey supervisors order. Plant rules the plant had a posted rule barring employees from eating or during unscheduled breaks. Seniority a junior employee was hired to fill the position of a laid-off senior employee. 18

Mohammed Sohail Mustafa

Grievances Procedure

Step 1 : Contact supervisor to resolve grievances. If not Step 2 : Meet with management (industrial relations). If not Step 3 : Meeting between union executive & top management If not Step 4 : Arbitration to resolve grievances.

Mohammed Sohail Mustafa

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How to reduce grievance?

Explanation of rules to employees. Considerations of the accusations & facts. Regular warning procedures, including written reports. Involvement of the union in the case. Examination of the employees motives & reasons. Considerations of the employees past record. Familiarization of all management personnel.

Mohammed Sohail Mustafa

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