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9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
The Labor Relations Process, 10th Edition
William H. Holley, Jr., Kenneth
M. Jennings, Roger S. Wolters
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9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
PART
1
Part 1 introduces the labor relations process that will be discussed throughout the
book, placing it in historical and legal perH
spectives. It also examines the difference
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between union and management organizaG
tions and their labor relations strategies.
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9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
Recognizing Rights and Responsibilities
of Unions and Management
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Chapter 1
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Union–Management
Relationships in Perspective
E
Chapter 2 L
Evolution of A
Labor–Management Relationships
Chapter 3 1
Legal Influences
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Chapter 4
8
Unions and Management: Key Participants in the Labor Relations
T
Process
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Chapter 5
Why and How Unions Are Organized
3
9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
CHAPTER
1
Union–Management Relationships
in Perspective
BOB SAT IN his office staring out the window and thinking
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about the future. As the human resources manager of the firm,
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Bob had just finished preparing an announcement to be sent to
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all employees informing them that the company had just been
G competitor. After 20 years of service, Bob was
sold to a larger
very proud Sof the employee relations that existed at his
, wondered how things might change now that a
company and
larger corporation would be in charge. Although Bob’s unit was
not unionized,
A he knew that the new owner had a number of
unionized facilities
within its corporate structure. Bob had never
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thought much
G about what it would be like to manage in a
unionized firm
E and whether the management strategies he had
relied upon throughout his career would be as effective or even
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entirely legal. How might the labor relations process change if
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he had to deal with employees as a group through their
selected union representative rather than as individuals? Would
there be an1effort to equalize employment terms and policies
1 and nonunion facilities of the new owner?
between union
0 already representing employees at other similar
Would unions
facilities of 8the owner now seek to organize employees at
Bob’s unit? T
While Bob had more questions than answers about
the immediate
S future, he did resolve to be proactive by
attempting to expand his current level of knowledge about the
labor relations process.
4
9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
Questions
1. In your opinion, what is the biggest difference between managing
employees in a unionized versus non-union firm?
2. In your opinion, does having other unionized facilities within a corporation’s
operating units alter management’s approach to labor relations at its nonunion facilities and if so, give an example to illustrate what you mean.
oday’s global economy presents many challenges and opportunities for both employers
and employees. As organizations seek to use resources both efficiently and effectively,
there will be inevitable tension over how best to manage those assets to benefit both
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ownership and employees. The effective management of human resources is critical to
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maintaining an organization’s
competitiveness. Recognition of and respect for the legitimate
interests of both labor and management are an important step in building and maintaining
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work relationships capable of adapting to change in the competitive environment facing most
G work relationships are built upon trust between ownership and
organizations. Stable
employees, which isS
reflected in both the actions and words of the parties.
Chapter 1 seeks to build a basic frame of reference for understanding the labor
relations process by, first defining the three phases of the labor relations process and then
placing this process into an analytical perspective. Chapter 1 introduces the activities, focal
point, participants, and influences of the labor relations process, which are discussed in
detail in subsequentAchapters. The chapter ends with a discussion of the current status of
union membership N
and the relevance of labor organizations in today’s economy.
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Phases in the Labor Relations
E Process
The labor relationsLprocess involves managers (representing the ownership interests) and
a labor organization (union), selected by employees as their exclusive bargaining agent to
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represent their interests engaging in the joint determination and administration of work
rules. Where employees are not represented by a union, work rules are typically determined
unilaterally by the 1
employer with the opportunity for individual bargaining between an
employee and his or her employer at the employer’s discretion. The negotiation and admin1 demonstrate considerable variation across public- and private-sector
istration of work rules
organizations in the0United States, reflecting unique aspects of each organization.
The labor relations process includes three basic phases:
8
1. Recognition of the legitimate rights and responsibilities of union and manageT
ment representatives.
Employees have a legal right to form and join a union or to
refrain from doing
S so (see Chapters 3 and 5). Labor law also sets forth the rights and
responsibilities of management and union officials to abide by applicable laws and
labor agreement (contract) terms. From a union’s perspective, phase 1 may be the
most important phase because without gaining legal recognition as the exclusive bargaining representative of a group of employees in phase 1, the process does not proceed to phases 2 and 3.
2. Negotiation of the labor agreement, including appropriate strategies, tactics, and
impasse resolution techniques. Contract negotiation involves union and management
5
9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
6
PART 1 • Recognizing Rights and Responsibilities of Unions and Management
representatives jointly determining work rules (policies) governing the parties’ rights and
responsibilities affecting wages, hours, or other terms and conditions of employment
(discussed in Chapters 6, 7, and 8). The outcomes of such negotiations have an important impact on a firm’s labor costs, management’s rights, and covered employees’ standard of living. Most interest disputes (i.e., a dispute over what the terms or conditions of
employment or work rules will be) are resolved voluntarily by union and management
negotiators during the bargaining process. Strikes, lockouts, mediation, and interest arbitration are examples of impasse resolution techniques (discussed in Chapter 9) that can
be used to resolve an interest dispute. Phase 2 of the labor relations process generally
receives the most media attention even though phases 1 and 3 are equally essential.
3. Administration of the negotiated labor agreement—the interpretation and application of labor contract terms on a daily basis. Once contract terms have been settled in phase 2, there is a need to apply those terms every day during the stated term
or duration of the labor agreement. The contract enforcement phase of the labor
relations process is generally accomplished through daily union and management
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interactions and, when necessary, the use of a grievance-arbitration procedure to
resolve rights disputesI (i.e., disputes over the interpretation or application of a contract’s terms, discussed
G in Chapters 10, 11, and 12). Resolving rights disputes
accounts for the most time and energy spent by union and management officials in
G and usually involves a larger number of these officials
the labor relations process
than the preceding phases.
S
Of course, not all labor-management
relationships progress smoothly through these three
,
phases. Indeed, employees and their chosen union representative at some public- and privatesector organizations have a difficult time moving from the recognition of an employee bargaining representative (phase
A1) through the remaining two phases of the process.1
The phases of the labor relations process are subject to qualitative variation as well.
N organizations vary in the amount of mutual trust and
In the first phase, for example,
respect union and management
officials have for each other’s goals. In the second
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phase, negotiations are carried out with different levels of intelligence, preparation, and
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sincere desire to achieve results. The third phase may vary as to how well the negotiated
L and effectively administered in good faith by both parties.
labor agreement is understood
There are probably as many different relationships as there are union and management
A
officials negotiating labor agreements.
1
Elements in the Labor Relations Process
1
Exhibit 1.1 provides a framework
for the labor relations process. The elements shown
0
can be applied to the labor relations activities at a single or multiple facilities owned by
a single company, or in an8entire industry. The exhibit cites three major elements: (1) the
negotiation and administration
T of work rules, which are the focal point of labor relations;
(2) the key participants in the process, who are the union and management organizaS neutrals, and branches of government (administrative, legtions, employees, third-party
islative, and judicial); and (3) the constraints or influences affecting the parties in their
negotiation and administration of work rules.
Focal Point of Labor Relations: Work Rules
Any academic discipline needs a focal point so that research, investigation, and commentary can generate applicable insights. “Labor” or “industrial” relations can become a
9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
CHAPTER 1 • Union–Management Relationships in Perspective
7
Exhibit 1.1
Elements in the Labor
Relations Process
nology
Tech
La
bo
rM
ar
k
io
Product Market
z a ti o n s
gani
Or
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at
nd
C usto m ers
et
ark
al M
nci
Fina
na
er
l Lab
or O ffic
sa
Third-Party Neutral
Government:
Executive, Legislative, Judicial
Federal
State
Local
rc
es
Oth
er
Membersh
on
ip
ni
Union
Negotiators
and
Administrators
d
a l, S t a t e, a n
Negotiation
and
Administration
C
H
I
G
on
rs
su Sto c k h o ld ers
it o
lta
p et
nts
G
m
o
C
S
,
Existence and
Particular
Content
Loc
ials
fic
Subc
o ntra cto rs
Management
Negotiators
and
Administrators
Work Rules
U
the
Eco
no
my
s
State
of
s
Sup
itor
pli
ed
Owners
er
Cr
m
e
e
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a
f
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et
Employees
o
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at
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Int
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Pub
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pinion
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broad topic including many academic concerns. For example, sociologists have examined
A
employee alienation; psychologists have investigated causes of job satisfaction and work
motivation; economists have studied wage determination; and political scientists have
assessed the impact1of union and management as interest groups attempting to influence
government policy and legislative outcomes.
John Dunlop’s1book Industrial Relations Systems provides a useful focal point for
these diverse academic
0 approaches. Dunlop suggested that the center of attention in
labor relations should be the work rules negotiated between management and union offi8
cials. Work rules facilitate
the implementation of operational plans designed to accomplish an organization’s
strategic
goals. Work rules determine employees’ standard of
T
living and the work environment within which employees will spend a substantial porS external factors (e.g., state of the economy, technology, internation of their time. Today
tional forces) play an increased role in determining the substance and type of work rules
created by union and management representatives.
It is important to understand the influences determining the creation and particular
content of work rules.2 Work rules can be placed in two general categories: (1) rules
governing compensation in all its forms (e.g., wages, overtime payments, vacations, holidays, shift premiums), and (2) rules specifying the employees’ and employers’ job rights
and obligations, such as no employee strike or employer lockout during the term of the
9781285982953, The Labor Relations Process, Tenth Edition, Holley/Jennings/Wolters – © Cengage Learning. All rights reserved. No distribution allowed without express authorization.
8
PART 1 • Recognizing Rights and Responsibilities of Unions and Management
labor agreement, performance standards, promotion qualifications and procedures, job
specifications, and layoff procedures. Additional examples of work rules are furnished
in Exhibit 1.2.
Compensation work rules, such as a negotiated wage rate, often capture the attention
of employees and the media because they are negotiation outcomes that are easier for most
people to understand and compare. Union and management officials, however, may attach
equal or greater importance to work rules regarding the second work rule category, job
rights and obligations. For example, managers might be interested in obtaining a work
rule that permits production employees to perform “minor repairs,” instead of requiring
higher-paid maintenance employees to do the tasks. Managers are often adamant about
retaining control over key operating decisions such as determining the number and types
of employees, equipment and technology decisions, geographic location of company operations, and operating hours. About 39 percent of union contracts contain limitations on the
right of management to require employees to work overtime, and some unions have
sought work rules that would change the standard work week to less than 40 hours
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required to earn full-time pay and benefits.3 Assuming the number of employee work
hours required to meet a Ifirm’s work load is relatively stable, reducing the number of
hours considered to be an employee’s
full work week would theoretically require additional
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employee positions or create more overtime work opportunities for union members.
Work rules can vary G
depending upon whether they are common or unique in the
subject matter addressed and
S vague or specific in the wording used to express the rule.
Because work rules are the outcome of joint negotiation between union and management
, typically gets the exact contract language it originally prerepresentatives, neither party
ferred. Compromise language is often worded more generally, which allows room for
interpretation and can lead to subsequent grievance disputes during the contract’s term
A its interpretation of contract terms through job decisions
as management implements
and that interpretation is challenged
by employees or their union representative through
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the grievance dispute process. The wording or interpretation of work rules can also
G
change over time in response to changes in operating environments and the need for
greater flexibility.
E
For example, the work rules for airline flight attendants today would most certainly
L
differ from the following three work rules formulated in the 1930s:
A after takeoff, (2) prevent passengers from throwing lighted
(1) swat flies in the cabin
cigar butts out the windows, and (3) carry a railroad timetable in case of plane trouble.
Today, the flight attendants’ union is concerned with issues such as too much luggage
1
stuffed into overhead compartments,
which may fall and hit a passenger, and passenger
use of cell phones during flights,
which
could pose a security risk by making it easier for
1
terrorists to communicate with each other.4
0 helps to explain the complex output of the labor relations
An analysis of work rules
process. The formal labor8agreement in this sense represents a compilation of jointly
negotiated work rules. However, as discussed in Chapter 10, labor relations activities
T
are not limited to the negotiation
of work rules. The labor relations process also includes
the everyday interpretationSand application of work rules and the resolution of any disputes arising over such decisions.
Concern over health care workers’ exposure to H1N1 flu and acquired immune deficiency syndrome (AIDS) re …
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