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Labor Relations and Collective Bargaining

DeCenzo and Robbins

Industrial Relation
Industrial relations means the nature of relationship between the employer and employee in an industrial organization . According to Prof. Dunlop , Industrial relations defined as the complex of interrelations among workers, managers and Government

Industrial Relation
Industrial relations includes- the relations between employers and employees at the plant level. the relation between the various unions. the relations between employers or their organizations and trade unions at various level (Level of plant, region or industry and national level) the relation between the state and the unions. the relation between the employers and the government.

Union
A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining.

Union
Impact of unionization Only about 13% of the private sector work force is unionized. Labor contracts typically stipulate:
wages hours terms and conditions of employment limit managements discretion

Why Employees Join Unions


Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals.

Why Employees Join Unions


Greater job security: Collective bargaining contracts limit managements ability to arbitrarily hire, promote or fire. Influence over work rules: Unions represent workers and define channels for complaints and concerns.

Why Employees Join Unions


Compulsory membership Union shops: The company can hire nonunion people, but they must join the union after a prescribed period of time and pay dues. Agency shops: Employees who do not belong to the union still must pay union dues on the assumption that the unions effort benefit all the workers.

Why Employees Join Unions


Compulsory membership Open shops allow union membership to be totally voluntary to join or not to join those who do not, do not pay dues. Maintenance of membership: Employees do not have to belong to the union. However, union members employed by the firm must maintain membership in the union for the contact period.

Collective Bargaining
Collective bargaining The process through which representatives of management and the union meet to negotiate a labor agreement. The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time.

Collective Bargaining
Objective and Scope of Collective Bargaining Contracts must be acceptable to management, union representatives and union membership. Four issues appear in all labor contracts. (The first three are mandated by the Wagner Act)
wages hours terms and conditions of employment grievance procedure

Collective Bargaining
Collective Bargaining Participants
Management is represented by senior management for industrial relations, corporate executives and company lawyers In small companies, the president typically represents the company.

Collective Bargaining
Collective Bargaining Participants Union bargaining teams include an officer of the local union, local shop stewards and representation from the international/national union. Government watches to ensure rules are followed. Financial institutions set limits on the cost of the contract

Collective Bargaining
The Collective Bargaining Process Preparing to negotiate
Fact-gathering: Includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing and the economy). Goal-setting: Management decides what it can expect from the negotiation. Strategy development: This includes assessing the other sides power and tactics.

Collective Bargaining
The Collective Bargaining Process

Collective Bargaining
Negotiating at the bargaining table Each side usually begins by publicly demanding more than they are willing to accept. More realistic assessments and compromises take place behind closed doors. After oral agreement, a written contract is submitted to the union for ratification.

Collective Bargaining
Contract administration refers to the implementation, interpretation and monitoring of the negotiated contract between labor and management.
Information dissemination includes helping staff and workers understand the new contract provisions. Implementing refers to making the changes to comply with contract terms.

Collective Bargaining
Monitoring Both union and management keep track of how effective the current contract is and any need for changes.

Collective Bargaining
Failure to Reach Agreement
Strikes versus lockouts- strike is a withdrawal
of labor Economic strikes - a strike that results from a failure to agree on the terms of a contract that involve wages, benefits, and other conditions of employment. Wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract. Lockouts - when organizations deny unionized workers access to their jobs during an impasse.

Collective Bargaining
Failure to Reach Agreement Impasse-Resolution Techniques: Used when labor and management cannot reach agreement.
Conciliation and mediation involve a third party to either keep negotiations going or make non-binding settlement recommendations. Fact-finding involves a neutral third-party who conducts a hearing and recommends a non-binding settlement.

Collective Bargaining
Interest arbitration Involves a panel of one neutral, one management and one union representative who hear testimony and render a decision to settle a contract negotiation dispute. Primarily in public-sector bargaining. Binding only if there is unanimous agreement.

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