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Chapter 15: Labor Relations and Collective Bargaining 15- 9
Copyright © 2017 Pearson Education, Inc.
VI. The Union Movement Today and Tomorrow – union membership has gradually declined in
America from about 20% of the workforce in 1938 (when 17.8 million workers belonged to
unions), to about 11% ( just over 14 million workers) recently.
A. What Are Unions Doing About it – unions are becoming more aggressive and becoming
more proactive in coordinating their efforts including extending them abroad. Several
recent NLRB decisions have supported union efforts.
B. Cooperative Clauses – parties commit to adhere to one or more of these cooperative
themes (in descending order of frequency-of-mention in the agreements):
1. Intent to cooperate
2. A statement of commitment to cooperate
3. Committees to review mutual concerns that arise
4. Decisions on traditional issues
5. Guarantees of employment security
6. Commitments to high-performance practices
7. Decisions on strategic issues
8. Full cooperation
C. Improving Performance: HR Around the Globe
Chapter Review
Chapter Section Summaries:
15-1: The labor movement is important. About 14 million U.S. workers belong to unions –
about 11% of the total.
15-2: To understand unions and their impact, one should understand the interplay between
unions and the law.
15-3: When unions begin organizing, all managers and supervisors usually get involved, so it’s
essential to understand the mechanics of the union drive and election.
15-4: The employer and union hammer out an agreement via the collective bargaining
process.
15-5: Most managers become involved with disputes and grievances during their careers.
15-6: Membership is down but unions are still influential today, so it’s important to understand
the union movement today and tomorrow.
Discussion Questions:
15-1: Why do employees join unions? What are the advantages and disadvantages of
being a union member?
This item can be assigned as a Discussion Question in MyManagementLab. Student
Chapter 15: Labor Relations and Collective Bargaining 15- 10
Copyright © 2017 Pearson Education, Inc.
15-2: Discuss four sure ways to lose an NLRB election.
The four sure ways to lose an election are listed and described in the text: 1) being asleep
at the switch; 2) appointing a committee; 3) concentrating on money and benefits; and 4)
15-3: Briefly illustrate how labor law has gone through a cycle of repression and
encouragement.
This item can be assigned as a Discussion Question in MyManagementLab. Student
15-4: Explain in detail each step in a union drive and election.
Each step is described in detail in the text: 1) initial contact involves the union
determination of the employees' interest in organizing and forming an organizing
committee; 2) obtaining authorization cards is where the union seeks to obtain enough
signatures on authorization cards to petition the NLRB to conduct an election; 3) holding
15-5: Define impasse, mediation, and strike, and explain the techniques that are used to
overcome an impasse.
Impasse occurs when the parties are not able to move further toward settlement.
Mediation is intervention in which a neutral third party tries to assist the principals in
Individual and Group Activities:
15-6: You are the manager of a small manufacturing plant. The union contract covering
most of your employees is about to expire. Working individually or in groups,
discuss how to prepare for union contract negotiations.
You need to know what is good faith bargaining and what constitutes a violation of good
faith bargaining. Although as a supervisor you will not likely be involved in the
negotiations, you can commit violations of good faith bargaining by making a unilateral
Chapter 15: Labor Relations and Collective Bargaining 15- 11
Copyright © 2017 Pearson Education, Inc.
15-7: Working individually or in groups, use Internet resources to find situations where
company management and the union reached an impasse at some point during their
negotiation process, but eventually resolved the impasse. Describe the issues on both
sides that led to the impasse. How did they move past the impasse? What were the
final outcomes?
The students should be able to find several examples in the airline industry, professional
15-8: Appendices A and B at the end of this book list the knowledge someone studying for
the HRCI (Appendix A) or SHRM (Appendix B) certification exam needs to have in
each area of human resource management (such as in Strategic Management and
Workforce Planning). In groups of several students, do four things: (1) review
Appendix A and/or B; (2) identify the material in this chapter that relates to the
Appendix A and/or B required knowledge lists; (3) write four multiple-choice exam
questions on this material that you believe would be suitable for inclusion in the
HRCI exam; and (4) if time permits, have someone from your team post your
team’s questions in front of the class, so that students in all teams can answer the
exam questions created by the other teams.
Material from this chapter that would be relevant to the HRCI test includes: history of the
American Union Movement, why workers organize, what do unions want, the AFL-CIO,
15-9: Several years ago, 8,000 Amtrak workers agreed not to disrupt service by walking
out, at least not until a court hearing was held. Amtrak had asked the courts for a
temporary restraining order, and the Transport Workers Union of America was
actually pleased to postpone its walkout. The workers were apparently not upset at
Amtrak, but at Congress for failing to provide enough funding for Amtrak. What, if
anything, can an employer do when employees threaten to go on strike, not because
of what the employer did, but what a third party—in this case, Congress—has done
or not done? What laws would prevent the union from going on strike in this case?
Employers can do several things…none of which are explained in this chapter. They can
seek an injunction from a judge, they can file suit, they can seek to meet with the union
and help them with their demands against the third party, etc. There are some laws and
Experiential Exercise: The Union-Organizing Campaign at Sam’s Cupcake Shop
Chapter 15: Labor Relations and Collective Bargaining 15- 12
Copyright © 2017 Pearson Education, Inc.
Purpose: The purpose of this exercise is to give you practice in dealing with some of the
elements of a union-organizing campaign.
Required Understanding: You should be familiar with the material covered in this chapter, as
well as the following incident, “The Organizing Campaign at Sam’s Cupcake Shop.”
Incident: Sam’s Cupcake Shop sells baked goods (croissants, cupcakes, rolls, cakes, etc.) and
serves light meals such as breakfast and salads through its chain of ten small retail stores in the
borough of Manhattan in New York City. Each store is staffed with about 9 employees (plus one
manager), some of whom do the cooling and some of whom staff the counter and sell the food
items. As with Sam’s other stores, the Sam’s Cupcake Shop on First Avenue is staffed primarily
with recent (legal) immigrants to America, all of who are paid at or just above minimum wage.
It was no secret that at least one New York City agency was pressing (in 2015) for food service
owners to raise the minimum wage for food service employees to $15 per hour. Everything at
the First Avenue store seemed to be going smoothly, but that apparent tranquility ended abruptly
in July 27, 2015. That was the day that Anesha, the First Avenue store’s manager called Taylor
Brook, Sam Cupcake’s human resource manager, to tell her that they had “an employee
problem.”
The problem, Anesha said, was that she’d heard from a few employees that the Service
Employees International Union was trying to organize Sam’s Cupcake Store employees.
Taylor’s first reaction was one of caution, particularly because food service employees are
historically difficult to organize –“they don’t stay in their jobs long enough to unionize them,” to
paraphrase one union leader. Unfortunately, Anesha said she had already taken what she called
“sensible steps” to blunt the unionization effort. She had, first, explained to her employees that
if costs went up because they unionized, then “we’d probably have to close this shop.” She said
she also promised better work schedules if they “ignored” the union, and told them they were
prohibited from discussing union matters during work time. “And don’t worry” she said to
Taylor, “I’ve got a list of the employees who are pushing for the union.”
The more Anesha talked, the more concerned Taylor became, not just with the union but with the
possible consequences of Anesha’s efforts. She wondered particularly if Anesha’s actions could
cause problems down the road for Sam’s Cupcakes with the NLRB.
As it turned, she didn’t have long to wait for an answer. The following week pickets from the
union and its supporters appeared in front of the First Avenue store carrying signs decrying the
company’s “unfair labor practices.” At that point Sam came into Taylor’s office and said, “if
they think they can railroad me into giving them big raises they are wrong; I am closing that
store down.” Taylor was in a quandary as to how to reply to Sam, and in general, what she
should she.
How to Set up the Exercise/Instructions: Divide the class into groups of several students.
Assume that you are labor relations consultants retained by Taylor to identify the problems and
issues involved and to advise Taylor and Sam of the company’s right and obligations, as well as
the implications of what’s transpired so far, add finally what to do next. Each group will spend
Chapter 15: Labor Relations and Collective Bargaining 15- 13
Copyright © 2017 Pearson Education, Inc.
the time allotted discussing the issues. Then, outline those issues, as well as an action plan for
Taylor and Sam. What should they do next? Can Sam really close the store down?
If time permits, a spokesperson from each group should list on the board the issues involved and
the group’s recommendations.
Student responses will vary but should use the information found in the text to explain and
defend their answers: including the Do’s and Don’ts, TIPS, and FORE.
Application Case: Negotiating with the Writers Guild of America
15-10: The producers said the WGA was not bargaining in good faith. What did they mean
by that, and do you think the evidence is sufficient to support the claim?
Bargaining in good faith means that both parties honestly communicate and negotiate to
make a reasonable effort to arrive at a fair agreement. It would be very difficult to
15-11: The WGA did eventually strike. What tactics could the producers have used to fight
back once the strike began? What tactics do you think the WGA used?
The producers could have threatened to hire writers to take the place of striking
employees. While this course of action would be very difficult given the creative nature
of this business, often the threat of hiring replacement workers helps the process move
15-12: This was a conflict between professional and creative people (the WGA) and TV and
movie producers. Do you think the conflict was therefore different in any way than
are the conflicts between, say, the Autoworkers or Teamsters unions against auto
and trucking companies? Why?
The conflict and bargaining process described in this scenario is no different than the
day-to-day negotiations between any union and management. Very often, the issues are
15-13: What role (with examples) did negotiating skills seem to play in the WGA
producers’ negotiations?
Timing played a role as well as a marathon bargaining session which tends to make each
side more flexible and come to an agreement. Also the introduction of the heads of Walt
Chapter 15: Labor Relations and Collective Bargaining 15- 14
Copyright © 2017 Pearson Education, Inc.
Continuing Case: Carter Cleaning Company – The Grievance
15-14: Do you think it is important for Carter Cleaning Company to have a formal
grievance process? Why or why not?
Certainly it is important for many reasons. First, it is important from a standpoint of
justice and fair treatment. Second, the lack of justice and fair treatment is a prime
15-15: Based on what you know about the Carter Cleaning Company, outline the steps in
what you think would be the ideal grievance process for this company.
Because it is a small company, it should be simple and short. One suggestion is a two-
step process that begins with a written appeal to the store manager. The second step is to
15-16: In addition to the grievance process, can you think of anything else that Carter
Cleaning Company might do to make sure grievances and gripes like this one are
expressed and are heard by top management?
The grievance procedure is critical. Students may identify many things from the
The Hotel Paris: Improving Performance at the Hotel – The Hotel Paris’s New
Labor Relations Practices
15-17: List and briefly describe what you believe are the three most important steps Hotel
Paris management can take now to reduce the likelihood unions will organize more
of its employees.
Hotel Paris should train managers and supervisors to recognize the signs of union activity
and to deal with it. They should also develop a procedure whereby employees can air
15-18: Write a detailed two-page outline for a “What You Need to Know When the Union
Calls” manual. Lisa will distribute this manual to her company’s supervisors and
managers, telling them what they need to know about looking out for possible
unionizing activity, and how to handle actual organizing process–related
supervisory tasks.
Chapter 15: Labor Relations and Collective Bargaining 15- 15
Copyright © 2017 Pearson Education, Inc.
Student responses will vary but should use the information found in the text to explain
My Management Lab
Students can find the following assisted-graded writing questions at mymanagementlab.com.
Answers to these questions are graded against rubrics in the MyLab.
15-19: Describe important tactics you would expect the union to use during the union drive and
election.
15-20: Why, would you say, workers join unions and what would you as a manager do to make it
less likely your employees would want to join a union a your workplace.
Key Terms:
Closed Shop – A form of union security in which the company can hire only union members.
This was outlawed in 1947 but still exists in some industries (such as printing).
Union Shop – A form of union security in which the company can hire nonunion people, but
they must join the union after a prescribed period of time and pay dues. (If they do not, they can
be fired.)
Agency Shop – A form of union security in which employees who do not belong to the union
must still pay union dues on the assumption that union efforts benefit all workers.
Preferential Shop – Union members get preference in hiring, but the employer can still hire
nonunion members.
Right to Work – A term used to describe state statutory or constitutional provisions banning the
requirement of union membership as a condition of employment.
Norris-LaGuardia Act of 1932 – This law marked the beginning of the era of strong
encouragement of unions and guaranteed to each employee the right to bargain collectively "free
from interference, restraint, or coercion."
National Labor Relations (or Wagner) Act (NLRA) – This law banned certain types of unfair
labor practices and provided for secret-ballot elections and majority rule for determining whether
or not a firm's employees want to unionize.
National Labor Relations Board (NLRB) – The agency created by the Wagner Act to
investigate unfair labor practice charges and to provide for secret-ballot elections and majority
rule in determining whether or not a firm's employees want a union.
Chapter 15: Labor Relations and Collective Bargaining 15- 16
Copyright © 2017 Pearson Education, Inc.
Taft-Hartley Act of 1947 – Also known as the Labor Management Relations Act, this law
prohibited unfair union labor practices and enumerated the rights of employees as union
members. It also enumerated the rights of employers.
National Emergency Strikes – Strikes that might "imperil the national health and safety."
Landrum-Griffin Act of 1959 – Also known as the Labor Management Reporting and
Disclosure Act, this law is aimed at protecting union members from possible wrongdoing on the
part of their unions.
Union Salting – A union-organizing tactic by which workers who are in fact employed full-time
by a union as undercover organizers and are hired by unwitting employers.
Authorization Cards – In order to petition for a union election, the union must show that at
least 30% of employees may be interested in being unionized. Employees indicate this interest
by signing authorization cards.
Bargaining Unit – The group of employees the union will be authorized to represent.
Decertification – Legal process for employees to terminate a union’s right to represent them.
Collective Bargaining – The process through which representatives of management and the
union meet to negotiate a labor agreement.
Good Faith Bargaining – Both parties are making every reasonable effort to arrive at
agreements; proposals are being matched with counterproposals.
Voluntary (or permissible) Bargaining items – Items in collective bargaining over which
bargaining is neither illegal nor mandatory – neither party can be compelled against its wishes to
negotiate over those items.
Illegal Bargaining Items – Items in collective bargaining that are forbidden by law; for
example, the clause agreeing to hire "union members exclusively" would be illegal in a right-to-
work state.
Mandatory Bargaining – Items in collective bargaining that a party must bargain over if they
are introduced by the other party – for example, pay.
Impasse – Collective bargaining situation that occurs when the parties are not able to move
farther toward settlement, usually because one party is demanding more than the other is willing
to offer.
Mediation – Intervention in which a neutral third party tries to assist the principals in reaching
agreement.
Chapter 15: Labor Relations and Collective Bargaining 15- 17
Copyright © 2017 Pearson Education, Inc.
Fact Finder – A neutral party who studies the issues in a dispute and makes a public
recommendation for a reasonable settlement.
Arbitration – The most definitive type of third-party intervention, in which the arbitrator usually
has the power to determine and dictate the settlement terms.
Interest Arbitration – Arbitration enacted when labor agreements do not yet exist or when one
or both parties are seeking to change the agreement.
Rights Arbitration – Arbitration that interprets existing contract terms, for instance, when an
employee questions the employer’s right to have taken some disciplinary action.
Strike – A withdrawal of labor.
Economic Strike – A strike that results from a failure to agree on the terms of a contract that
involve wages, benefits, and other conditions of employment.
Unfair Labor Practice Strike – A strike aimed at protesting illegal conduct by the employer.
Wildcat Strike – An unauthorized strike occurring during the term of a contract.
Sympathy Strike – A strike that takes place when one union strikes in support of another.
Picketing – Having employees carry signs announcing their concerns near the employer’s place
of business.
Corporate Campaign – An organized effort by the union that exerts pressure on the corporation
by pressuring the company’s other unions, shareholders, directors, customers, creditors, and
government agencies, often directly.
Boycott – The combined refusal by employees and other interested parties to buy or use the
employer's products.
Inside Games – Union efforts to convince employees to impede or to disrupt production – for
example, by slowing the work pace.
Lockout – A refusal by the employer to provide opportunities to work.
Injunction – A court order compelling a party or parties either to resume or to desist from a
certain action.
Grievance Procedure – Formal process for addressing any factor involving wages, hours, or
conditions of employment that is used as a complaint against the employer.
Co-determination – An employee representation system in which workers elect their own
representatives to the supervisory (management) board of the employer and have the legal right
Chapter 15: Labor Relations and Collective Bargaining 15- 18
Copyright © 2017 Pearson Education, Inc.
to a voice in setting company policies on matters such as company organization, hiring, and
performance appraisal.
