Chapter 15 – Collective Bargaining and Labor Relations
Chapter Fifteen: Collective Bargaining and Labor
Relations
Welcome to your guide to teaching Chapter Fifteen: Collective Bargaining
and Labor Relations!
This guide will provide you with a chapter summary, learning objectives, lecture
outlines, solutions to in-chapter case questions and end of chapter discussion questions
and possible responses.
Chapter Fifteen Roadmap
We hope you find each chapter of your Instructor Manual practical and useful, but also,
exciting! You can adapt the chapter text, the PowerPoints, and the video to work in an online
class environment, a guided independent study environment, or a face to face or on-ground
environment.
When presenting Chapter Fifteen, have the students first read the chapter and
encourage them to absorb the “big picture” of “Collective Bargaining and Labor
Relations.”
Use the PowerPoint for Chapter Fifteen frame your lecture.
Have students read and discuss the cases and their respective questions.
Have students validate their knowledge of the chapter by working through the discussion
questions at the end of the chapter.
Lastly, have students review, journal, or discuss the Key Vocabulary Terms at the end of
the chapter.
ROADMAP: THE LECTURE
COLLECTIVE BARGAINING AND LABOR RELATIONS
Chapter Summary
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
This chapter explores human resource activities in organizations where employees belong to
unions or where employees are seeking to organize unions. The chapter begins by formally
defining unions and labor relations, and then describes the scope and impact of union activity.
Next, it summarizes government laws and regulations affecting unions and labor relations. The
following three sections detail types of activities involving unions: union organizing, contract
negotiations, and contract administration. Finally, the chapter identifies ways in which unions
and management are working together in arrangements that are more cooperative than the
traditional labor-management relationship.
Learning Objectives
After studying this chapter, the student should be able to:
1. Define unions and labor relations and their role in organizations.
2. Identify the labor relations’ goals of management, labor unions, and society.
3. Summarize laws and regulations that affect labor relations.
4. Describe the union organizing process.
5. Explain how management and unions negotiate contracts.
6. Summarize the practice of contract administration.
7. Describe more cooperative approaches to labor-management relations.
I. Introduction
Discussion Question and Suggested Response
The opening vignette is about the how the Northwestern University football players recently tried
to form a union. The National Labor Relations Board (NLRB) rules that 76 players did have the
status of employees an could proceed with a vote on whether to unionize. The school lobbied
against the union and a vote was taken but the results were sealed until the NLRB reviews the
schools request to overturn the decision that allowed the football players to vote.
A. National and International Unions
1. Most union members belong to a national or international union.
2. The members of a craft union all have a particular skill or occupation. Examples
include the International Brotherhood of Electrical Workers for electricians and the
United Brotherhood of Carpenters and Joiners of America for carpenters.
3. Craft unions often are responsible for training their members through apprenticeships
and for supplying craft workers to employers.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
4. Industrial unions consist of members who are linked by their work in a particular
industry. Examples include the United Steelworkers of America and the
Communication Workers of America.
5. Typically, an industrial union represents many different occupations. Membership in
the union is the result of working for a particular employer in the industry.
6. Whereas a craft union may restrict the number of, say, carpenters to maintain higher
wages, industrial unions try to organize as many employees in as wide a range as
possible.
7. Most national unions are affiliated with the American Federation of Labor and
Congress of Industrial Organizations (AFL-CIO). The AFL-CIO is not a labor union
but an association that seeks to advance the shared interests of its member unions at
the national level.
8. Approximately 55 national and international unions are affiliated with the AFL-CIO.
9. An important responsibility of the AFL-CIO is to represent labor’s interests in public
policy issues such as labor law, economic policy, and occupational safety and health.
B. Local Unions
1. Most national unions consist of multiple local units.
2. Membership in the local union depends on the type of union. For an industrial union,
the local may correspond to a single large facility or to a number of small facilities. In
a craft union, the local may cover a city or region.
3. Typically, the local union elects officers, such as president, vice president, and
treasurer. The officers may be responsible for contract negotiation or the local may
form a bargaining committee for that purpose.
4. When the union is engaged in bargaining, the national union provides help, including
background data about other settlements, technical advice, and the leadership of a
representative from the national office.
5. Individual members participate in local unions in various ways. Most of the workers’
contact is with the union steward who is an employee elected by union members in
the same department to represent them in ensuring that the terms of the contract are
enforced.
C. Trends in Union Membership
1. Union membership in the United States peaked in the 1950s, reaching over one-third
of employment. Since then, the share of employees who belong to unions has fallen.
It now stands at 11.3 percent of all employment and 6.7 percent of private-sector
employment.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
2. Figure 15.1, Union Membership Density Among U.S. Wage and Salary Workers,
1973-2013, depicts the changes in union membership.
3. Union membership among government workers has held steady, with the decline
occurring in the private sector.
4. The decline in union membership has been attributed to several factors:
Change in the structure of the economy: Much recent job growth has occurred
among women and older workers in the service sector, while union strength has
traditionally been among urban blue collar workers.
Management efforts to control costs
Human resource practices: Competition for scarce human resources can lead
employers to offer much of what employees traditionally sought through union
membership.
Government regulation: Stricter regulation in such areas as workplace safety and
equal employment opportunity leaves fewer areas in which unions can show an
advantage over what employers must already offer.
5. Figure 15.2, Union Membership Rates and Coverage in Selected Countries,
indicates the percentage of U.S. workers who belong to unions is lower than in many
countries.
6. Unless unions can help companies improve productivity or organize new production
facilities opened in lower-wage countries, union influence may decline in countries
where it is now strong.
Did You Know?
Profile of a Typical Union Worker
In the United States today, a worker 55 or older is far more likely to be a union member than a
younger worker is. Workers in the education and protective service files are more likely to be
part of a union.
Discussion Question with Possible Answer
What trends shown in Figure 15.1 helps to explain why jobs in education and protective
services have the highest rates of unionization??
Education and protective services have the highest percentage of workers.
D. Unions in Government
0 1. Union membership among government workers has remained strong.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
0 2. Over one-third of government employees are union members and a larger share is
covered by collective bargaining agreements.
1 3. One reason for this strength is that government regulations and laws support the right of
government workers to organize. In 1962 Executive Order 10988 established collective
bargaining rights for federal employees. By the end of the 1960s, most states had
passed similar laws.
E. Impact of Unions on Company Performance
1.Organizations are concerned about whether union organizing will hurt their
performance. In particular, they are affected by unions’ impact on productivity, profits,
and stock performance. Researchers have studied the general relationship between
unionization and these performance measures.
2.Effects of unions on productivity include: Negative: Decrease in productivity resulting
from work rules and limitations on workloads and lost production due to strikes and work
slowdowns; Positive: Reduce turnover by giving employees a route to resolve conflicts
and maintaining an emphasis on pay systems based on seniority, which removes
incentives for employees to compete rather than cooperate.
3.Most studies have determined that union workers are more productive than nonunion
workers. One possible explanation is that unionized workers may be more likely to voice
concerns through channels provided by the union and less likely to quit, so turnover is
lower. Another is that through bargaining, management may tighten standards and listen
to more employee ideas for improving processes.
4.Even if unions do raise productivity, a company’s profits and stock performance may
still suffer if unions raise wage and benefits costs by more than the productivity gain.
5.Companies wishing to become more competitive must continually monitor their labor
relations strategy.
III. Goals of Management, Labor Unions, and Society
1. Resolving conflicts in a positive way is easiest when the parties involved understand
each other’s goals.
2. Society has goals for labor and business, given form in the laws regulating labor
relations.
A. Management Goals
1. Management goals involve making decisions that will increase the organization’s
profits.
2. When an employer has recognized a union, management’s goals continue to
emphasize restraining costs and improving output.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
B. Labor Union Goals
1. In general, labor unions have the goals of obtaining pay and working conditions that
satisfy their members and of giving members a voice in the decisions that affect
them. Traditionally, they obtain these by gaining power in numbers.
2. Union membership is related to better compensation, with union wages in the year
2013 being approximately 21% higher than for nonunion workers in similar jobs.
3. Unions typically influence the way pay and promotions are determined. They try to build
group solidarity and avoid possible arbitrary treatment of employees. To do this, unions
focus on equal pay for equal work. Unions also try to have any pay differences based
on seniority, on the grounds this measure is more objective than performance
evaluations.
4. The survival and security of a union depends on its ability to ensure a regular
flow of new members and member dues to support the services it provides.
5. Unions typically place high priority on negotiating two contract provisions with
an employer that are critical to a union’s security or viability:
a. Check off provisions – the employer, on behalf of the union, automatically
deducts union dues from the employees’ paychecks
b. Union membership or contribution – Closed shop: a person must be a union
member before being hired; under the National Labor Relation Act, closed shops
are illegal – Union shop: a legal membership arrangement that requires an
employee to join the union within a certain amount of time (30 days) after
beginning employment – Agency shop: requires the payment of union dues but
not union membership – Maintenance of membership: rules that do not require
union membership but do require that employees who join the union remain
members for a certain period of time, such as the length of the contract.
Best Practices
Machinists and Steelworkers Unions Help Harley-Davidson Get Lean
Harley-Davidson wasn’t too worried about high absenteeism and a slow production pace when
there were customers waiting in line for their product. However, after the Great Recession hit
and sales slumped the managers realized that there needed to be changes. Managers told the
union that there would be drastic changes or they would have to close the plant. The union
agreed and the results were good for everyone.
Discussion Questions with Possible Responses
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
1. In this example, what were management’s goals?
Lower cost, increase productivity, increase sales.
2. What were the union’s goals?
Save as many jobs as possible, keep skilled workers, keep plant in NY.
C. Societal Goals
1. The activities of unions and management take place within the context of society, with
society’s values driving the laws and regulations that affect labor relations.
2. Former Senator Hatch made a statement, which implies that society’s goal for unions
is to ensure that workers have a voice in how they are treated by their employers.
IV. Laws and Regulations Affecting Labor Relations
1. The laws and regulations pertaining to labor relations affect unions’ size and bargaining
power, so they significantly affect the degree to which unions, management, and
society achieve their goals.
2. These laws and regulations set limits on union structure and administration and the
ways in which unions and management interact.
A. National Labor Relations Act (NLRA)
One example of labor laws’ influence is the 1935 passage of the Wagner Act also known
as the National Labor Relations Act (NLRA). This law actively supported collective
bargaining. After Congress passed this act, union membership in the U.S. nearly tripled
from 3 million in 1933 to 8.8 million (19.2% of employment) in 1939.
Section 7 of the NLRA sets out the rights of employees, including the right to self-
organization, to form, join, or assist labor organizations, to bargain collectively through
representatives of their own choosing, and to engage in other concerted activities for the
purpose of collective bargaining. Employees also have the right to refrain from these
activities, unless union membership is a condition of employment.
The following activities are among those protected under the NLRA:
a. Union organizing
b. Joining a union, whether recognized by the employer or not
c. Going out on strike to secure better working conditions
d. Refraining from activity on behalf of the union
Most employees in the private sector are covered by the NLRA. There are certain
exclusions, including supervisors, independent contractors, agricultural workers, and
government employees.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Chapter 15 – Collective Bargaining and Labor Relations
In Section 8(a), the NLRA prohibits certain activities by employers as unfair labor
practices: Employers may not interfere with, restrain, or coerce employees in exercising
their rights to join or assist a labor organization or to refrain from such activities;
Employers may not dominate or interfere with the formation or activities of a labor union;
They may not discriminate in any aspect of employment that attempts to encourage or
discourage union activity, nor may they discriminate against employees for providing
testimony related to enforcement of the NLRA; Employers may not refuse to bargain
collectively with a labor organization that has standing under the act.
When employers or unions violate the NLRA, remedies may include ordering that unfair
labor practices stop and that employers rehire workers, with or without back pay.
The NLRA is not a criminal law and violators may not be assigned punitive damages.
HR How To
Avoiding Unfair Labor Practices
The National Labor Relations Act prohibits employers from interfering with employee’s decisions
about whether or not to join a union and engage in union-related activities. The following are
examples of unfair labor practices that employers must avoid:
Threatening employees with loss of job or benefits if they join or vote for a union
Threatening to close a plant
Taking an active part in organizing a union
Stating that it would be futile
Discharging employees for urging others to join a union
Promising benefits
Asking employees or job applicants about union-organizing activities
Preventing employees from promoting a union
Discouraging employee from conversations or other activities aimed at improving the
work conditions
Spying on employee activities
Forbidding employees form wearing union logos on shirts or jeans.
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.