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m July 1994 , world·s largest airline ,

announced ESOP
m Acquire 55% of co.·s stock
m 25% to pilots ( constitute 10% of force)
m Developed cost saving & morale
boosting measures
m Flight attendants not included- short
lived positive results
m Damaged customer service
m In 2000 , employees stopped receiving
esop
m New employees couldn·t participate ,
not allowed to cash till they retire
m 1997 , value declined to 50%
m Labor refused to fly over time ² lost loyal
customers
m Evolved into longer term problem
m Labor relations is a key strategic issue for
organizations because the nature of the
relationship between the employer &
employees can have a significant impact
on morale , motivation , & productivity.

m Workers who feel that the terms &


conditions of their employment are less
than advantageous will not be as
committed to perform & remain with an
employer.
m _he most important part of a well structure
labor law is that they are designed to protect
employees while they work for their income.

m _he hour that an employee works are an


important part of the general labor law , it is
imperative to ensure that employees are not
over worked & they are receiving proper
compensation for their services.

m In this process it does not only makes the labor


skilled but also adds goodwill to the company.
m _his act allows unions to be formed &
exist as employee organizations that
have the legal right to bargain with
management over various terms &
conditions of employment.

m Unions provide membership solely for


employees; managers are prohibited by
law from joining employee unions or from
forming their own unions.
m _he great depression in U.S ignited strong
interest in unions with the resultant
creation by John Lewis of the Congress
of Industrial Organizations(CIO).

m In mid 1960s decline started in union


density both in private & public sector.
m Workers became disenfranchised from
there unions. ( corruption & misuse of funds)

m Many organizations moved their


manufacturing & assembly operations
outside U.S.

m Changes in nature of work & technology


eliminated many of traditional manual
labor jobs in which unions members were
employed.
m In many organizations unionization is a
norm. (public & private eg transportation ,
hospitality , construction , publishing ,
education , health care)

m Competitors may be unionized &


settlements in those organizations may
impact HR practices, program & policies
needed to remain competitive in recruiting
& retaining productive employees.
m 1. Unions must be able to discuss the terms &
conditions of employment , including
compensation , harassment & discrimination.

m 2. employees reserve the right to complain to


third party ( eg customer , client , media)
about their treatment by employer.

m 3. emplyee have right to engage in a work


stoppage or collective walk out to protest
working conditions without fear of retaliation
m 4. employees have right to honor picket
lines without fear of retaliation.

m 5. employee have the conditional right


to solicit & distribute union literature.

m 6. employers can·t unilaterally ban


employees access to the work place site
while off duty. ( eg parking lot after
working hours)
m Latin word ² uni ² one

m Union ( plural) ² one voice

m Means that workers have agreed to work


together in dealing with & negotiating
the terms & conditions of their
employment with management.
m When workers unionize , the power based
within the organizations is redistributed.

m _he process of unionization involves bringing


in outside players; union representatives,
who then become an additional
constituency whose support must be
gained for any new or ongoing
management initiatives.

m Unionized work setting can greatly impact


the organization·s cost structure.
m Employees usually form or join union because
of the perceived benefits that unionizations
may provide them.

m Benefit can be
a. economic ² negotiating for higher wages ,
greater job security
b. social ² sense of community , personal
issues
c. political ² negotiating with management
for terms & conditions of employment
m It gives right to unionize & to regulate
union/management relations.

m It has been amended many times.

m NLRB ² it is responsible for overseeing union


elections, certifying a particular union
elections, certifying a particular union as
the official bargaining representative of a
group of employees & hearing allegations
of violations of the act from employers ,
unions & employee groups.
m Employees conduct organizing campaign
in which 30% of employees sign
´authorization cardsµ

m If union receives majority vote in election, it


gains representation status to bargain
collectively for a contract with employer
_he act allows pro-union employees the
full right to approach their coworkers at
work & express their support of the unions
, as long as such contact takes place
during nonworking periods in nonworking
areas ( eg cafeteria in lunch breaks ,
parking lot after leaving work etc)
m An employer can restrict nonemployees
access to employees if two conditions are
met ²
m 1. _he nonemployee must have some
reasonable means to access to employees
outside the workplace , such as electronic
media or print media.

m 2. _he employer must have a general ban


on all nonemployee solicitation ( it can
include blood drives , charitable appeals
etc)
m Desertification ² process is same as
certification , utilizing authorization cards
& requiring a 50+ % majority employee
votes.

m Salting - involves paid union organizer


applying for employment with an
employer whose employees are target
of an organization drive.
m A. mandatory items ²
(i) economic factors (ii) management
rights clauses & union security

m B. permissive items ²
Benefits for retired employees ,
supervisory compensation & discipline ,
union input in pricing of company
products & services
m C. Prohibited items ²
Feather bedding , discrimination in hiring
m Unions attempt to increase security of status
by bargaining for
Î ã  


 Require new
employees to join union after initial employment
period
Î 2



 Require employees
who choose not to join union to pay
´representation feesµ to cover union·s cost of
representing them
Î ë




 




  
 Employer deducts
union dues from paychecks of union employees
m Failure in bargaining negotiations to reach agreement
(impasse) may result in a strike or lockout
m Economic strikes
Î Results due to when both the parties negotiated but couldn·t
come to a conclusion
Î Striking workers can be permanently replaced in economic
strikes
m Unfair labor practice strikes
Î Employees strike in response to management·s unfair labor
practices
Î Striking workers cannot be permanently replaced in unfair
labor practice strikes
m Wildcat strikes
Î Unauthorized strikes by workers who walk out in violation of
collective bargaining agreement
Î Labors can be removed permanently from their job
m 1. _hrough use of formal grievance
procedure

m 2. _hrough the alternate dispute


resolution processes of mediation ( used
in public sector) or arbitration (used in
professional areas)
m _op priority to recruit new employee to
keep the unions keep going

m Use of technology internet

m NLRB has endorsed e-mail


communication between employees as
a means of safe guarding the rights
m Union membership are declining in
America

m Unions will not survive if they continue to


display traditional adversarial
m Education & retraining
m Research & development
m Voice in strategic management decision
making & ownership
m Capital investment & pension funds
m Industrial sector approach

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