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Labor

Unions and Collec0ve


Bargaining
•  Labor Union refers to an organized
associa0on of workers, o:en in a trade or
profession, formed to protect and further
their rights and interests (Dic0onary).
Labor Union Objec0ves
1.  To secure and improve the living standards and economic status of
its members.

2.  To enhance and guarantee individual security against threats and


con0ngencies that might result from work fluctua0ons,
technological change, or management decisions.

3.  To influence power rela0ons in the social system in ways that favor
and do not threaten union gains and goals.

4.  To advance the welfare of all who work for a living, whether union
members or not.

5.  To create mechanisms to guard against the use of arbitrary and


capricious policies and prac0ces in the workplace.
Why Employees Join Unions?
1. Fair and equitable compensa0on

2. Job security

3. ATtude of management

4. Social outlet

5. Opportunity for leadership

5. Forced unioniza0on

6. Peer pressure

Establishing the Collec0ve Bargaining
Rela0onship
•  Collec0ve Bargaining refers to the performance of the mutual
obliga0on of the employer and the representa0ve of the
employees to meet at reasonable 0mes and confer in good faith
with respect to wages, hours and other terms and condi0ons of
employment, or the nego0a0on of an agreement, or any ques0on
arising thereunder, and the execu0on of a wriZen contract
incorpora0ng any agreement reached if requested by either party,
but such obliga0on does not compel either party to agree to a
proposal or require the making of a concession (Sec0on 8d, US
Na0onal Rela0ons Act).

•  Bargaining Unit consists of a group of employees, not necessarily


union members, recognized by an employer or cer0fied by an
administra0ve agency as appropriate for representa0on by a labor
organiza0on for purposes of collec0ve bargaining.
External environment
Internal Environment

Bargaining Issues
Collec&ve Bargaining Process

Preparing for Nego0a0on

Nego0a0ng the Agreement

Nego0a0on Yes
Breakdown? Overcoming Breakdown

No

Reaching the Agreement

Ra0fying the Agreement

Administra0on of the
Agreement
Types of Bargaining Issues
1. Mandatory bargaining issues fall within the
defini0on of wages, hours and other terms and
condi0ons of employment.

2. Permissive bargaining issues may be raised but


neither side may insist that they be bargained
for.

3. Prohibited bargaining issues are issues that are


statutorily outlawed from collec0ve bargaining.
Bargaining Issues
Bargaining Issues
Recogni0on

•  To iden0fy the union that is recognized as the bargaining
representa0ve.
•  To describe the bargaining unit, that is, the employees for whom the
union speaks.

Management Rights

1.  Freedom to select the business objec0ves of the company.

2.  Freedom to determine the uses to which the material assets of the
company will be devoted.

3.  Power to take disciplinary ac0on for cause.


Bargaining Issues
Union security

•  One of the first items nego0ated in a


collec0ve bargaining agreement.

•  To ensure that the union con0nues to exist


and perform its func0on.
Bargaining Issues
Compensa0on

•  Cons0tutes a large por0on of most labor


agreement.

Ø  Wage rate schedule


Ø  Over0me and premium pay
Ø  Layoff or severance pay
Ø  Holidays
Ø  Vaca0on
Bargaining Issues
Grievance Procedure

•  Grievance refers to the employee’s dissa0sfac0on or feeling of personal


injus0ce rela0ng to his or her employment.

•  Grievance Procedure refers to the formal, systema0c process that permits


employees to express complaints without jeopardizing their jobs.

Seniority

•  First in, last out; first to be recalled.


•  When qualifica0ons are met, considered first for promo0on.

Job related factors

•  Company rules, work standards, rules related to safety.


Prepara0on for Nego0a0on
•  Unions to gather informa0on regarding members’
needs to avoid areas of dissa0sfac0on.

•  Management must listen to the first-line managers


who administer the labor agreement on a daily basis.

•  Iden0fy posi0ons of both the labor and management.

•  Selec0on of bargaining teams.


Nego0a0ng the Agreement
•  There is no way to ensure speedy and
mutually acceptable results from nego0a0on.

•  Collec0ve bargaining is a problem solving


ac0vity; consequently good communica0on is
essen0al to its success.

•  Nego0a0on should be conducted in the


privacy of the boardroom, not in media.
Breakdown in Nego0a0ons
Via Third-Party interven0on

1. Media0on refers to the entry of a neutral third
party in the nego0a0ons and aZempts to
facilitate a resolu0on to a labor dispute.

2. Arbitra0on refers to the process in which
dispute is submiZed to an impar0al third party
for a binding decision; an arbitrator usually acts
as a judge and jury.
Union’s Strategy to Overcome
Nego0a0on Breakdown
1.  Strike which refers to an ac0on by union
members who refuse to work in order to
exert pressure on management in decisions.

2.  BoycoZ refers to the agreement of the union


member to refuse to use or buy the firm’s
products.
Strategies to Overcome Nego0a0on
Management
1.  Lockout refers to the management decision
to keep union workers out of the workplace
and run the opera0on with management
personnel and/or replacement workers to
encourage the union to return to the
bargaining table.

2.  Con0nue opera0ons without striking workers