Welcome To

“Excellence Explorer”Presentation

Shahriar RazinGroup Coordinator of EEXX

ID- 115406

Chapter- 15

Labor Relations and Collective

Bargaining

Role of Unions In the U.S., most workers act as individuals to select

jobs that are acceptable to them and to negotiate pay, benefits, flexible hours, and other work conditions.

At times, workers have believed their needs and interests do not receive enough consideration from management.

One response by workers is to act collectively by forming and joining labor unions.

Unions and Labor Relations

Unions – organizations formed for the purpose of representing their members’ interests in dealing with employers.

Labor relations – field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.

Labor relations involves three levels of decisions:

1. Labor relations strategy

2. Negotiating contracts

3. Administering contracts

National and International Unions

American Federation of Labor (AFL)Craft Unions

AFL-CIO

Congress of Industrial Organization (CIO)

Industrial Unions

Sumona JahanID- 105454

Major Law

1926- Railway Labor Act 1935- National Labor Relations Act (Wagner Act) 1947- Labor Management Relations Act (Taft-

Hartley Act) 1962- Executive Order 10988 1970- Postal Re-organization Act 1974- Health Care Amendments 1978- Civil Service-Reform Act

Jarin TasnimID- 115402

NLRB ProcessUnion form for reducing unfair labor practice.Exclusive bargaining representative or Duty of fair representative.Organizing committee is formed among the workers early in the process.Voluntary reorganization.Certification.Bargaining units.Community of interest.

The NLRB Organization Process

Employee contact Union

Union field representative contacts employee

Authorization card campaign

Organizing effort fails

Continue authorization campaign

Petition for an election

Union recognized process

Recognized denied

<30% <50% >50%

Continue authorization

campaign

Petition for an election

Petition for an election

NLRB determines bargaining unit

Campaign

NLRB holds election

Union gets <50% Union gets>50%

Organizing barred for one year

Union certified bargaining begins

Sonia AkterID- 105486

The certification of a union as an exclusive bargaining representative simultaneously triggers the employee’s right and the employers duty to bargain collectively over rates of pay, wages, hours of employment, or other conditions of employment

WHAT UNIONS DO WHEN THEY ARE FORMED:Collective bargaining

Pattern Bargaining:Historically pattern bargaining has had the effect of taking such factors as wges out of the competitive matrixfor employers in the same industry.

Multiemployer Bargaining: A higher level of centralization occurs when several employers combine negotiateacommon agreement with a union.

Structure of bargaining:

What is the likelihood of reaching a settlement? Can awarkstoppage be avoided? Is intervention by third party mediator needed? If a work stoppage appears likely,how will it be

managed?

Contract Negotiations:

Distributive Bargaining: This is zero sum negotiations, in which one party’s gain is other party’s loss.

Integrative Bargaining: In this situations one party’s gain is need not translate another party’s loss. Integrative bargaining can result in collaborative problem solving in which both parties come out ahead.

Intraorganizational Bargaining: Intraorganizational bargaining is the process of resolving differences among members of the same party.

TYPES OF BARGAINING

Md. Ahasan HabibID- 105478

SCOPE OF BARGAINING

The scope of bargaining is defined as the range of items over which the practices negotiate.

Types of Bargaining Items

Mandatory ItemsPermissive ItemsIllegal Items

Copyright © Houghton Mifflin Company. All rights reserved. 15–23

Bargaining Items with Examples

ECONOMIC ISSUE

The economic matters commonly discussed in negotiations may be divided two subgroups:

WagesBenefits

NONECONOMIC ISSUE

A number of issues may arise in the noneconomic area, including

Work rules Job security Quality of Wok Life Management Rights Union security

Management Rights Clause

Management Rights which, reserves to management certain decision-making process. For instance, these clauses may give management alone the right to decide on the types of products to produce or services to deliver, to supervise employees, to control production processes.

Union security Clause

These arrangements ensure that nonunion members of bargaining units will assume at least part of the cost of union representation.

The union shop Agency shop

Fatema Tuj JohuraID- 115401

Labor Strike Activity

Strike means concerted action resulting in a cessation of work, a refusal to work or to continue to work by employees, or a slow-down or other concerted activity of employees that is designed to or does limit production or services, but does not include an act or omission required for the safety or health of employees, or a refusal to work.

Level of strike activity

Thousands of contract negotiations take place each year. Historically, most contract negotiations have resulted in a settlement without strike. The estimate is that strikes occurs less than 2 or 3 percent of negotiation. Strikes are more likely to occur in larger bargaining unit.

Major work stoppages in the United States (2006-2012)*

Period

Number of work stoppages beginning

period

Numbers of workers involved

in(thousands)

Number(thousands) Work time lose in

(%)

2012 19 148 1131 0.22

2011 19 113 1020 0.16

2010 11 45 302 0.20

2009 5 13 124 0.17

2008 15 72 1954 0.30

2007 21 189 1265 0.18

2006 20 70 2688 0.35

Types of strike and rights of strikers

Section 7of the NLRA grants workers a legal right to strike,” to engage in other concerted activity for the purpose of collective bargains or mutual aid or protection”. Three types discussed here the-

Economic strike Unfair labor practice strikersWildcat strike

Types of strike and rights of strikers

Economic strike:

An economic strike is an event in which all efforts at producing goods and services through labor are temporarily shut down.

Unfair labor practice strikers:

Employees who strike to protest an unfair labor practice committed by their employer are called unfair labor practice strikers.

Wildcat strike:

When employees go on strike without union authorization, however, their action is called a wildcat strike.

Permanent replacements of workers

Section 7of the NLRA grants workers a legal right to strike .The NLRA prohibits employers from firing employees who go on strike. However, an employer may hire replacement workers if it desires to continue to operate during a strike. Furthermore, the employer has the right to make these replacements permanent at any time during the strike. Once the employer makes the replacements permanent, employees have no right to return to their jobs if they decide to end the strike.

Moniya AkterID- 115457

Preventing Strike

Alternative Dispute Resolution:1. Mediation: A neutral third party Having no binding authority

2. Interest Arbitration: To make binding decision Rarely used in private sector Widely used in public sector

Interest Arbitration:

1. Nonbinding: Sometimes called advisory arbitration or fact

finding parties are not committed to accepting the

arbitrator’s award

2. Binding: Both parties are committed to accepting the

arbitrator’s award

Binding Arbitration:

1. Conventional Interest Arbitration: Free to impose whatever settlement he or she

deems reasonable Producing some unfortunate effect such as

“chilling effect” and “narcotic effect”

2. Final offer arbitration Forcing labor & management in negotiation No opportunity to Split the difference

Final Offer Arbitration

1. By Issue: Popular in many state law One offer on each item

2. By Package: Accepts the final position of one party or other Seldom used

National Emergency Dispute Procedures:

Provided by the Taft-Hartley Act Prohibit the strike for Eighty days

For examples: Coal mining, Atomic energy, Maritime, and Long shoring industries.

Md. Shahadot HossainID- 115411

Grievance procedure

Administering contract:Though a contract is made only when the both parties are agreed together, but there is always room for disagreement about how the agreement should be interpreted and applied in specific cases. If an employee thinks that his or her rights under the contract have been violated, he may file a grievance. Actually grievance procedure is a process of resolving disagreements about contract administration.

Steps in grievance procedure

There are 5 steps in grievance procedure-Step 1 :

* Notify to foreman.* After 2 working days it will be written on a form.

Step 2 : * Written grievance shall be presented to the foreman

or the general foreman and a copy sent to the personal office. * Within 2 working days he will call a meeting.

Step 3 :* The written grievance shall be presented to the

departmental superintendent.* Hold a meeting within 5 working days.

Step 4 :* The union committee and an international

representative of the union shall meet with the Management committee.

Step 5 :* A representative of the UNION shall meet within 5 working days with a representative of the company for the purpose of selecting an arbitrator.* An arbitrator shall be selected within 5 working

days.* The decision of the arbitrator shall be final and

binding on all parties.* Any necessary expense incident to the arbitration

shall be paid jointly by the company and the UNION.

Grievance arbitration

Most grievances are settled through the early steps, but when no mutually acceptable resolution is reached between the parties themselves, 96 percent of contracts specify binding grievance arbitration as the final step. Nearly all contracts limit the arbitrator to interpreting the existing contract. The arbitrator is not allowed to change or amend the contract in any way but merely to clarify and apply its provisions.

Md. RejaunnobiID- 115403

THE ROLE OF LABOR RELATION IN HRM

► Know about labor law and labor relation

► Conversant with labor law

► Experts are responsible for educating management and supervisors

► Relationship between managers & workers

► Ensure that wages are fairly administered & competitive with other employees

► Voice mechanism

Thank you Everyone

for being patience.