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Fundamentals of Human Resource Management, 8e Instructor’s Manual
15-1
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
negotiation, 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.
Chapter Outline
Role of Unions and Labor Relations
• A union is an organization formed for the purpose of representing its members in
resolving conflicts with employers.
• Labor relations is the management specialty emphasizing skills that managers and union
leaders can use to minimize costly forms of conflict and to seek win-win solutions to
disagreements.
Goals of Management, Labor Unions, and Society
• Management goals are to increase organization’s profits. Managers generally expect that
unions will make these goals harder to achieve
• Labor unions have the goal of obtaining pay and working conditions that satisfy their
members. They obtain these results by gaining power in numbers.
• Society’s values have included the hope that existence of unions will replace conflict or
violence between workers and employers with fruitful negotiation.
Laws and Regulations Affecting Labor Relations
• National Labor Relations Act (NLRA)
• Right-to-work laws make union shops, maintenance of membership, and agency shops
illegal.
• National Labor Relations Board (NLRB)
Union Organizing
Collective Bargaining
• In collective bargaining, a union negotiates on behalf of its members with management
representatives to arrive at a contract defining conditions of employment for the term of
the contract and to resolve differences in the way they interpret the contract.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Contract Administration
• Contract administration is a daily activity under the labor agreement. It includes carrying
out the terms of the agreement and resolving conflicts over interpretation or violation of
the contract.
New Approaches to Labor Relations
• In contrast to traditional view that labor and management are adversaries, some
organizations and unions work more cooperatively.
Learning Objectives
LO 15-1: Define unions and labor relations and their role in organizations.
LO 15-2: Identify the labor relations goals of management, labor unions, and society.
LO 15-3: Summarize laws and regulations that affect labor relations.
LO 15-4: Describe the union organizing process.
LO 15-5: Explain how management and unions negotiate contracts.
LO 15-6: Summarize the practice of contract administration.
LO 15-7: Describe new approaches to labor-management relations.
Society for Human Resource Management Body of Competency &
Knowledge
This chapter contains content, which may be identified within the following content areas:
• Employee Engagement
• Workforce Management
• Employee Relations
• Risk Management
• U.S. Employment Law & Regulations
• Business & HR Strategy
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Human Resource Certification Institute’s A Guide to the HR Body
of Knowledge
This chapter contains content, which may be identified within the following content areas:
• Business Management & Strategy
• Employee and Labor Relations
• Workforce Planning and Employment
• Risk Management
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Question Guidance to Vignettes and Discussion Questions
Did You Know?
Profile of a Typical Union Worker
1. What trend shown in Figure 15.1 helps to explain why jobs in education and protective
services have the highest rates of unionization?
Best Practices
Desire for More Jobs Unites Lear and the UAW
1. What goals of management, labor, and society does this example illustrate?
2. How might negotiations on these issues help Lear and the UAW achieve their goals?
What interests, if any, do they have in common?
HRM Social
Employee Rights in the Social-Media Era
1. What is the difference between the way the NLRA treats an organization wanting to
discipline (a) a group of workers complaining about their work schedules on Facebook
and (b) an employee who posts hateful political remarks in a comment on her LinkedIn
page, where she is identified as an employee?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
it is questionable whether or not the employee is protected. The boundary that the NLRB
has set is whether or not the employee is engaging his or her co-workers about terms and
conditions of employment.
2. Suppose you are reading employee reviews on the Glassdoor page for a company where
you are considering applying for a job. You see one comment saying the supervisors
don’t care about employees, and you see ten favorable comments about the company’s
supervisors. As a job seeker, how would you weigh those comments? From the
perspective of the employer, what ideas does this give you for how to minimize the
negative impact of speech that is protected under NLRA but could hurt the company’s
reputation?
HR How To
Writing an Employee Handbook That Follows NLRB Guidance
1. Based on the information given, rewrite the following handbook statement to make it
better follow the NLRB’s guidance: “Employees may not say negative things about the
company on social media.”
2. As in question 1, rewrite the following handbook statement: “Employees may not post
photos of co-workers on social media.”
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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HR Oops!
Arbitration Agreement Gets Out of Hand
1. Why might a company prefer to have disputes and controversies handled individually in
arbitration? Why might some employees prefer a class action in which several (or many)
employees present the issue together?
2. Suggest how Hobby Lobby might protect its interests while respecting employees’
concerns about class-action waivers. For example, can you think of a way to revise the
agreement?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
End of Chapter Questions and Cases
Thinking Ethically
Free Ride or Free Speech?
1. What issues of fairness and equity come into play in this case?
2. How well does the outcome of this case represent respect for basic human rights? How
well does it do the greatest good for the greatest number?
Review and Discussion Questions
1. Why do employees join labor unions? Did you ever belong to a labor union? If you did,
do you think the union membership benefited you? If not, do you think a union would
have benefited you? Why or why not? (LO 15-1)
15-8
2. Why do managers at most companies prefer that unions not represent their employees?
Can unions provide benefits to an employer? Explain. (LO 15-2)
3. How has union membership in the United States changed over the past few decades?
How does union membership in the United States compare with union membership in
other countries? How might these patterns in union membership affect the HR decisions
of an international company? (LO 15-2)
4. What legal responsibilities do employers have regarding unions? What are the legal
requirements affecting unions? (LO 15-3)
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
that restrain workers such as preventing employees from working during a strike or
determining whom an employer may hire. The Taft-Hartley Act also permits state right-
to-work laws.
5. Suppose you are the HR manager for a chain of clothing stores. You learn that union
representatives have been encouraging the stores’ employees to sign authorization cards.
What events can follow in this process of organizing? Suggest some ways that you might
respond in your role as HR manger. (LO 15-4)
6. If the parties negotiating a labor contract are unable to reach an agreement, what actions
can resolve the situation? (LO 15-5)
7. Why are strikes uncommon? Under what conditions might management choose to accept
a strike? (LO 15-5)
8. What are the usual steps in a grievance procedure? What are the advantages of resolving
a grievance in the first step? What skills would a supervisor need so grievances can be
resolved in the first step? (LO 15-6)
15-10
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
and be aware of the provisions in the union contract. This awareness can assist the
supervisor with a speedy resolution (or even prevention) of problems.
9. What can a company gain from union-management cooperation? What can workers gain?
(LO 15-7)
10. What are the legal restrictions on labor-management cooperation? (LO 15-7)
Taking Responsibility
Teamsters and UPS Strike a Deal for the 21st Century
1. Based on the information given, which of the terms in the new contract are favorable for
workers? Which terms are favorable for UPS?
2. What effects, if any, do you think the employment contract will have on UPS’s ability to
meet its goals for serving customers and improving efficiency?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Managing Talent
Teachers Win over Unions and State Government
1. In this situation, what would you describe as the goals of management (the state
government leaders), labor unions, and society? Based on the information given, which
goals do you think were achieved?
2. Do you think a strike was the best way for the union to resolve its differences with the
state leadership? Why or why not? What other positions did the teachers have?
HR in Small Business
Huffington Post Accepts Collective Bargaining
1. What goals of labor, management, and society can you identify in this case?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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2. Do you think the Writers Guild and The Huffington Post can engage in cooperative labor
relations? Why or why not?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Recommended Connect Activities
Effective Labor Relations
Learning Objective: 15-03 Summarize laws and regulations that affect labor relations.
Activity Summary: The case analysis details the laws and regulations surrounding union and
management interaction.
Follow-Up Activity: In small groups, have students seek out specific unions across multiple
industries. Once a union has been identified, the groups can determine the benefits of joining that
union and make a case for why they believe it to be in the best interest of employees. The
instructor, or another group, should take the management view with a healthy debate or
negotiation to follow. This will give students the opportunity to move between different
industries and see how unions fit into the modern landscape.
Goals of Management, Labor Unions, and Society
Learning Objective: 15-02 Identify the labor relations goals of management, labor unions, and
society.
Activity Summary: Students will match the appropriate party for each intended goal.
Follow-Up Activity: Students will need to demonstrate understanding of these concepts, rather
than simply categorizing them. Depending on the makeup of your class, there may be some
students who have personal experiences with joining a union. To go further, have a class
discussion on the industries where your students work (or would like to work) and how the goals
(if any) would be approached and accomplished.
The Union Perspective
Learning Objective: 15-01 Define unions and labor relations and their role in organizations.
Activity Summary: In this worksheet, students will select the appropriate union/role for each
definition or job description.
Follow-Up Activity: Depth of understanding is the key goal for this activity. Once the students
have correctly categorized the terms, examples and application should be the next step. In some
cases, identification of IBEW is self-explanatory. In others, students should seek out examples of
unions that organize across skill sets, what the work rules are, and who would be a business
representative. Consider using this as a flipped classroom activity or for additional test
preparation.
New Approaches to Labor Relations
Learning Objective: 15-07 Describe new approaches to labor-management relations.
Activity Summary: The case analysis details how companies and unions are working to create
less adversarial work environments.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Follow-Up Activity: Researching "successful union/management negotiations" does not return a
lot of results. Given the lack of success in this area, have small groups of students select a real-
life union/management negotiation that has led to a strike/lock-out. Student should then research
the issue, present a list of stakeholders and their intended goals, and provide suggestions on ways
to find a fair resolution.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Classroom Exercises
Students may benefit from exercises that illustrate the concepts of the chapter. Use these along
with CONNECT activities.
1. Understanding Unions and Labor Relations
Instructors may engage students in a general discussion meant to support the
understanding of unions and labor relations. Review and Discussion question #1 may be
used to facilitate this discussion. In addition, instructors may wish to engage students in
discussion concerning the Thinking Ethically vignette to not only help students
understand union benefits and negotiations, but also the contemporary issues concerning
the topic today. Finally, instructors may have students discuss the Taking Responsibility
vignette.
2. Management Best Practices
Students may be asked to discuss how to handle situations within work environments to
further their understanding of employee and labor relations. The instructor may ask
students to first answer the questions in the HR How To vignette. The instructor may also
modify the scenario or continue the discussion by having students respond to the
questions under the HRM Social vignette. Finally, students may be asked to discuss the
information in Table 15.1 in response to the previous vignette discussions.
3. Labor and Management Negotiations
Instructors may facilitate a discussion for students to discuss the potential opposing sides
of labor and management. The Best Practices vignette could be used to start the general
discussion, whereby students contrast each side’s negotiation position. Then, the
instructor may have students work toward identifying any common interests. To close the
discussion, instructors may pose Review and Discussion questions #2 and #9.
4. HRM Career Considerations
Instructors may wish to have students identify components in Chapter 15 within both the
Society for Human Resource Management Body of Competency & Knowledge and the
Human Resource Certification Institute’s A Guide to the HR Body of Knowledge.
Discussion could focus on how these chapter concepts are important to the development
of their careers and potential certification.
5. Vignette Discussions
Any of the vignettes (see above), may be employed for classroom discussion. Students
could be asked to respond as individuals or placed into groups for discussion. Individuals
and/or groups may then be asked to defend their responses and rationale when comparing
and contrasting other responses.
