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Chapter 10
Union/Management Relations and Grievances
Chapter Overview
This chapter deals with the nature of unions, globalization of unions, union membership trends,
unions in the U.S., U.S. labor laws, the process of unionization, collective bargaining issues, the
collective bargaining process, union/management cooperation, and grievance management.
Why employees unionize is discussed. The two primary reasons are dissatisfaction with how
they are treated by their employers and the belief that unions can improve their work situations.
Why employers resist unions is discussed. The role of HR professionals in effectively handling
unions is also discussed.
Globalization of unions is explored by looking at union membership globally, global labor
organizations, and U.S. and global unionization differences. Unions represented more than 30%
of the workforce from 1945 to 1960. Among factors accounting for this decline of U.S. union
membership are deregulation, foreign competition, a larger number of people looking for jobs,
and a general perception by firms that dealing with unions is expensive compared with non-
union alternatives. Also, geographic, industrial, and workforce changes have resulted in a decline
of unions. The union targets for membership growth is discussed.
The next section talks about the evolution of U.S. Unions, its structure, and also provides
examples of some industrial unions. This section also discusses about the AFL-CIO federation,
Change to Win, National and International Unions, and Local Unions.
Next the chapter describes the labor laws in the U.S. Early labor legislation includes the Railway
Labor Act and the Norris-LaGuardia Act. The chapter also discusses the Wagner Act, the Taft-
Hartley Act, and the Landrum-Griffin Act.
The Civil Service Reform Act of 1978 regulates public sector union-management relations at the
federal level. Proposed legislation is also discussed.
Steps in the unionization process are detailed including the organizing campaign, authorization
cards, representation elections, certification and decertification, and contract negotiation. Key
collective bargaining issues discussed are those of management rights and union security. The
classification of bargaining issues as mandatory, permissive, and illegal is also covered. Next, the
collective bargaining process is traced through four stages:
Preparation and initial demands
Negotiations
Settlement or impasse
Strikes and lockouts
Union/management cooperation programs are also described. The chapter ends with a discussion
of grievance management including responsibilities, procedures, and steps in a typical grievance
procedure.
Chapter Outline
Exactly how political, economic, and workforce trends affect employers and unions are
important considerations, and HR professionals need to understand the laws, regulations, court
decisions, administrative rulings and public perceptions associated with unions.
I. Perspectives on Unionization
A union is a formal association of workers that promotes the interest of its members through
collective action. In the United States, unions typically try to increase compensation, improve
Union presence and activity is influenced by laws. As such, the ability of unions to function as
bargaining entities is based on how they gain and keep favor with politicians who represent their
Union representation has many advantages and disadvantages. Unions can provide a balance to
the unchallenged decision-making power of management when needed. Increases in job
A. Why Employees Unionize
Whether a union targets a group of employees for organization, or the employees request
union assistance, the union must win support from the employees to become their legal
representative. Over the years, employees have joined unions for two general reasons:
They are dissatisfied with how they are treated by their employers
The major factors that can trigger unionization are issues of compensation, working
B. Why Employers Resist Unions
Some employers would rather not have to negotiate with unions because they affect how
employees and the workplace are managed. Unions are criticized for creating inefficiencies at
work that cause waste and poor performance. Union workers frequently receive better
Human Resource Professionals and Unionization
To prevent unionization or to work effectively with unions already representing the
workforce, both HR professionals and operating managers must be attentive and
responsive to employees. The pattern of dealing with unionization varies among
II. Union Membership in the United States
The statistics on union membership over the past several decades tell a disheartening story for
organized labor in the United States. As shown in Figure 10-2, union membership covered more
than 30% of the workforce from 1945 to 1960. But most recently, union membership in the
However, it’s not all bad news for unions, some unions and their members are prospering. In the
past several years, unions have organized thousands of janitors, health care workers, cleaners,
and other low-paid workers using publicity, pickets, boycotts, and strikes. In some states,
A. Reasons for U.S. Union Membership Long-Term Decline
Several general trends have contributed to the decline of U.S. union membership, including
deregulation, foreign competition, a larger number of people looking for jobs, and a general
To some extent, unions may be victims of their own successes. Unions in the U.S. historically
have emphasized helping workers obtain higher wages and benefits, shorter working hours,
Geographic Changes
During the past decade, job growth in the United States has been the greatest in states
located in the South, the Southwest, and the Rocky Mountains. Most of these states have
little tradition of unions, more “employer-friendly” laws, and relatively small percentages
Industrial Changes
Much of the decline of union membership can be attributed to the shift in U.S. jobs from
industries such as manufacturing, construction, and mining to service industries. Private-
sector union membership is primarily concentrated in the shrinking part of the economy,
Workforce Changes
Many workforce changes have contributed to the decrease in union representation of the
labor force. The decline in many blue-collar jobs in manufacturing has been especially
B. Public-Sector Unionism
Unions have enjoyed significant success with public-sector employees. The government
sector (federal, state, and local) is the most highly unionized part of the U.S. workforce, with
C. Union Targets for Membership Growth
The continuing losses of union support and influence have led to disagreements among unions
about how to fight the decline. Rather than remaining a part of the traditional AFL-CIO labor
III. Union History and Structure in the United States
The union movement in the United States has existed for more than two centuries. During that
A. Evolution of U.S. Unions
The union movement in the United States began with early collective efforts by workers to
address job concerns and counteract management power.
As early as 1794, shoemakers organized a union, picketed, and conducted strikes.
In 1806, when the shoemakers’ union struck for higher wages, a Philadelphia court
The American Federation of Labor (AFL) united several independent national unions in
It was not until the Congress of Industrial Organizations (CIO) was founded in 1938
Years later, the AFL and the CIO merged to become the AFL-CIO. That federation is still the
B. Union Structure
Labor in the United States is represented by many different unions. Regardless of size and
geographic scope, two basic types of unions have developed over time:
In a craft union, members do one type of work, often using specialized skills and
training. Examples are the International Association of Bridge, Structural, Ornamental
An industrial union includes many persons working in the same industry or company,
AFL-CIO Federation
Labor organizations have developed complex organizational structures with multiple
levels. The broadest level is the federation, which is a group of autonomous unions. A
Change to Win
The establishment of Change to Win meant that seven unions with over 5 million members
left the AFL-CIO. The primary reason for the split was a division among different unions
about how to stop the decline in union membership, as well as some internal organizational
National and International Unions
National and international unions are not governed by a federation even if they are
Like companies, unions find strength in size. In the past several years, about 40 union
mergers have occurred, and some other unions have considered merging. For smaller
Local Unions
Local unions typically have business agents and union stewards. A business agent is a full-
time union official who operates the union office and assists union members. The agent
IV. U.S. Labor Laws
The right to organize workers and engage in collective bargaining offers little value if workers
cannot freely exercise it. Management has consistently developed practices to prevent unions
A. Early Labor Legislation
Beginning in the late 1800s, federal and state legislation related to unionization was passed.
The Railway Labor Act (RLA) of 1926 represented a shift in government regulation of
unions. The result of a joint effort between railroad management and unions to reduce
Three acts passed over a period of almost 25 years constitute the U.S. labor law foundation:
The Wagner Act
Figure 10-4 indicates the primary focus of each act. Two other pieces of legislation, the Civil
B. Wagner Act (National Labor Relations Act)
The National Labor Relations Act, more commonly referred to as the Wagner Act, has been
called the Magna Carta of labor and is, by anyone’s standards, prounion. With employers
having to close or cut back their operations, workers were left with little job security. Unions
Unfair Labor Practices
To protect union rights, the Wagner Act prohibited employers from using unfair labor
practices. Five of those practices were:
Preventing employees from using their right to organize or to bargain collectively
Affecting labor organization membership by tampering with hiring decisions and/or
Mistreating an individual because he or she filed charges or gave testimony under the
National Labor Relations Board
The Wagner Act established the National Labor Relations Board as an independent entity
to enforce the provisions of the act. The NLRB administers all provisions of the Wagner
Act and of subsequent labor relations acts. The primary functions of the NLRB include
C. Taft-Hartley Act (Labor Management Relations Act)
The passage in 1947 of the Labor Management Relations Act, better known as the Taft-
Hartley Act, was accomplished as a means to offset the pro-union Wagner Act by limiting
The new law amended or qualified in some respect all the major provisions of the Wagner Act
and established an entirely new code of conduct for unions. The Taft-Hartley Act allows the
President of the United States to declare that a strike presents a national emergency. A national
Right-to-Work Provision
Section 14(b) of the Taft-Hartley Act allows states to pass laws that restrict compulsory
union membership. Accordingly, several states have passed right-to-work laws, which
prohibit requiring employees to join unions as a condition of obtaining or continuing
D. Landrum-Griffin Act (Labor Management Reporting and Disclosure Act)
The third of the major labor laws in the United States, the Landrum-Griffin Act, was passed in
1959. Since a union is supposed to be a democratic institution in which union members freely
vote, elect officers, and approve labor contracts, the Landrum-Griffin Act was passed in part
E. Civil Service Reform and Postal Reorganization Acts
Passed as part of the Civil Service Reform Act of 1978, the Federal Service Labor
Management Relations statute made major changes in how the federal government deals with
unions. The act also identified areas subject to bargaining and established the Federal Labor
In a somewhat related area, the Postal Reorganization Act of 1970 established the U.S. Postal
F. Proposed Employee Free Choice Act
The Employee Free Choice Act would allow unions to sign up workers on cards (referred to
as “card check”) and the unions to become recognized without an election by secret ballot if
enough signatures were collected. As a result, the “campaigns” to organize that unions dislike
V. The Unionization Process
The process of unionizing an employer may begin in one of two primary ways:
A union targeting an industry or a company
Employees requesting union representation
The logic for targeting is that if the union succeeds in one firm or a portion of the industry, then
many other workers in the industry will be more willing to consider unionizing. In the second
A. Organizing Campaign
Like other entities seeking members, a union usually mounts an organized campaign to
Employers’ Union Prevention Efforts
Management representatives may use various tactics to defeat a unionization effort. Such
tactics often begin when union publicity appears or during the distribution of authorization
