Chapter 15

Labor Relations and Collective Bargaining

Part Five | Employee Relations

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall PowerPoint Presentation by Charlie Cook The University of West Alabama

WHERE WE ARE NOW

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The Collective Bargaining Process

What Is Collective Bargaining?
Both management and labor are required by law

to negotiate wages, hours, and terms and conditions of employment in good faith.

What Is Good Faith Bargaining?

Both parties communicate and negotiate. They match proposals with counterproposals

in a reasonable effort to arrive at an agreement.

Neither party can compel the other to agree to

a proposal or to make any specific concessions.

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Violations of Good Faith Bargaining

1. Surface bargaining 2. Inadequate concessions 3. Inadequate proposals and demands 4. Delaying tactics 5. Imposing conditions 6. Making unilateral changes in conditions 7. Bypassing the representative 8. Committing unfair labor practices during negotiations 9. Withholding information 10. Ignoring bargaining items

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Preparing for Negotiations

Sources of Negotiating Information
Local and industry pay and benefits comparisons Distribution of demographics of the workforce Benefit costs, overall earnings levels, and the amount and

cost of overtime
Cost of the current labor contract and the increased costtotal,

per employee, and per hourof the unions demands

Grievances and feedback from supervisors Attitude surveys of employees Informal conferences with local union leaders

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Bargaining Stages
1. Presentation of initial demands
Both parties are usually quite far apart on some issues.

2. Reduction of demands
Each side trades off some of its demands to gain others.

3. Subcommittee studies
The parties form joint subcommittees to try to work out

reasonable alternatives.

4. An informal settlement
Each group goes back to its sponsor. Union members vote to ratify the agreement.

5. Signing the formal agreement

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Bargaining Hints
1. Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each. 2. Do not hurry. 3. Be well prepared with data supporting your position. 4. Strive to keep some flexibility in your position. 5. Dont concern yourself just with what the other party says and does; find out why. 6. Respect importance of face saving for the other party. 7. Be alert to the real intentions of the other partynot only for goals, but also for priorities.

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Bargaining Hints (contd)

9. Be a good listener. 10. Build a reputation for being fair but firm. 11. Learn to control your emotions and use them as a tool. 12. As you make each bargaining move, be sure you know its relationship to all other moves.

13. Measure each move against your objectives.

14. Remember that collective bargaining is a compromise process. There is no such thing as having all the pie.

15. Try to understand the people and their personalities.

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When Bargaining Stops

An Impasse
Usually occurs because one party is demanding

more than the other will offer.

Sometimes an impasse can be resolved through

a third partya disinterested person such as a mediator or arbitrator.

If the impasse is not resolved:

The union may call a work stoppage, or strike, to put pressure on management.
Management may lock out employees.

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Resolution of an Impasse

Third Party Involvement

Mediation

Fact finding

Arbitration

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Third-Party Involvement
Mediation
A neutral third party (mediator) tries to assist

the principals in reaching an agreement by holding meetings with each party to find common ground for further bargaining.
The mediator is a go-between and has no

authority to dictate terms or make concessions.

The mediator communicates assessments

of the likelihood of a strike, the possible settlement packages available, and the like.

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Third-Party Involvement (contd)

Fact Finder
A neutral party who studies the issues in a

dispute and makes a public recommendation for a reasonable settlement.

Arbitration
An arbitrator often has the power to determine

and dictate the settlement terms. Binding arbitration can guarantee a solution to an impasse. Interest arbitration for labor agreements Rights arbitration defines the terms of existing contracts

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Resolving an Impasse: Union Strikes

Economic strike

Unfair labor practice strike

Types of Strikes
Wildcat strike

Sympathy strike

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Pressure Tactic Alternatives

Unions
Picketing Corporate campaign

Boycott
Inside games Injunctions

Employers
Replacement workers Lockouts Injunctions

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Grievances
Grievance
Any factor involving wages,

Sources of Grievances
Discipline Seniority

hours, or conditions of employment that is used as a complaint against the employer

Job evaluations
Work assignments Overtime Vacations

Incentive plans
Holiday pay Problem employees Absenteeism Insubordination Plant rules

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Grievance Procedure
Grievant and shop steward meet with supervisor.
If not resolved, employee files formal grievance

Grievant and shop steward meet with supervisors boss.

If grievance is not resolved, meeting with higher-level managers.

If not resolved, matter goes to arbitration.

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Handling Grievances: Do
1. Investigate and handle each case as though it may eventually result in arbitration. 2. Talk with the employee about his or her grievance; give the person a full hearing. 3. Require the union to identify specific contractual provisions allegedly violated. 4. Comply with the contractual time limits for handling the grievance. 5. Visit the work area of the grievance. 6. Determine whether there were any witnesses. 7. Examine the grievants personnel record. 8. Fully examine prior grievance records. 9. Treat the union representative as your equal. 10. Hold your grievance discussions privately. 11. Fully inform your own supervisor of grievance matters.
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Handling Grievances: Dont

1. Discuss the case with the union steward alonethe grievant should be there. 2. Make arrangements with individual employees that are inconsistent with the labor agreement. 3. Hold back the remedy if the company is wrong. 4. Admit to the binding effect of a past practice. 5. Relinquish to the union your rights as a manager. 6. Settle grievances on what is fair. Stick to the labor agreement. 7. Bargain over items not covered by the contract. 8. Treat as subject to arbitration claims demanding discipline or discharge of managers. 9. Give long written grievance answers. 10. Trade a grievance settlement for a grievance withdrawal. 11. Deny grievances because your hands are tied by management. 12. Agree to informal amendments in the contract.

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