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CHAPTER 4
Unions and Management: Key Participants in the Labor
Relations Process
Outline
I. Goals and Strategies: Management and Unions (see Exhibit 4.1)
a. Company goals; The Company wants:
i. To survive and remain competitive
ii. To grow and prosper
iii. To achieve a favorable return on its investment
iv. To effectively use human resources
v. To attract, retain, and motivate employees
vi. To protect management's rights to make decisions and retain flexibility
vii. To obtain commitment from the union that there will be no strike for the duration
of the agreement
b. Union goals; The Union wants:
i. The Company to survive and remain competitive as well as for the union to
survive and remain secure
ii. The Company to grow and prosper as well as the union
iii. The Company to achieve a favorable return on its investment and return "fair"
wages to employees
iv. The Company to effectively use human resources within the rules and policies of
the agreement, and to achieve job security and employment opportunities for
members
v. The Company to attract, retain, and motivate employees within the rules and
policies of the agreement
vi. To protect union and employee rights that were negotiated and included in the
labor agreement
vii. To obtain commitment from the company that there will be no lockout for the
duration of the agreement
c. Company strategic planning
i. Determined by its managerial philosophy, ethics, economic condition, force,
competition, time in the life of the company, and management capabilities
ii. Union or nonunion
iii. Company strategies (Exhibit 4.2)
d. Nonunion companies' strategies
i. External forces affecting union-management relations: competition from abroad,
deregulation, and competition from nonunion companies
ii. Choice of remaining non-union by using union suppression, union avoidance,
and union substitution strategies without using unfair labor practices (Exhibit
4.3)
iii. Use of positive human resource management and double breasting
e. Unionized Companies’ Strategies
i. Involvement of union and management
ii. Employee representation; grievances
iv. Businesslike, codified strategy
v. Accommodation and labor-management cooperation
vi. Union contributions to company planning
vii. Employee empowerment
viii. Mixed strategy
f. Union strategic planning
i. A mission statement (Exhibit 4.4)
ii. Analysis of external environment: demographics, politics, image, industry trends
iii. Internal analysis: governance, openness, professionalism
iv. Organizational objectives: long-term and short-term
v. Strategy development: survival and growth
vi. See Exhibits 4.5 and 4.6 for differences in CWA and CTW strategic plans
II. Company Organization for Labor Relations Activities
i. In larger corporations, labor relations is usually highly centralized and policy
decisions are made at corporate level (Exhibit 4.7)
ii. In smaller companies decisions are made at plant level
iii. Organization for labor relations are at the plant level (Exhibit 4.8)
III. Union Governance and Structure
i. Power, authority, and legitimacy flow upward (Exhibit 4.9)
ii. Union governance comparable to unit of state or federal government
iii. Wide diversity of multi-level organizational relationships, functions of officers,
and degrees of control
a. The local union
i. Branch of national union
ii. Main point of contact for the individual employee
iii. Operates under national union’s constitution
iv. Organizational chart Exhibit 4.10
b. Differences between craft and industrial unions
i. Craft union members organized by craft or skill
ii. Industrial union members organized on an industry basis
ii. Upward trend toward general unions
c. Differing Scope of the Labor Agreement
i. Short labor agreements
ii. Several employers
iii. Local agreements
d. Differing skills
i. Types of skills
ii. Training
e. Differing Job Characteristics
i. Short work assignments
ii. Union hiring hall. Serves as placement office
iii. Pre-hire agreements
f. Differing Leadership Roles
i. Business agent; could accumulate power
ii. Shop stewards represent business agents
iii. International union representative; enforces national constitution
IV. Government and Operation of the Local Union
a. Participation in Meetings
i. Attendance varies when union is confronted with important business
ii. Rises when meeting location is convenient
iii. Personal invitation
iv. Use of electronic information services
v. Union leaders, departmental representatives, union stewards always attend
vi. Provide perks for attending meetings
vii. Meeting attendance required to run for office
viii. Average two hours. Reports from treasurer, project leaders, and committee
chairpersons
ix. Business of local generally accomplished
b. Functions of the meeting
i. Union’s most important governmental activity
ii. Opportunity for members to communicate with leaders
iii. Important decisions are made
V. The National or International Union
i. Occupies the "kingpin" position of influence (Exhibit 4.11)
ii. The constitution of the union guides its government
ii. The constitution restricts the power of the national union, encourage union
activity in collective bargaining and political action, and contain provisions to
protect individual rights of members
a. The Convention—supreme governing body of unions; final court for union decisions;
nomination of officers; reporting; agenda for policy formulation.
i. Use of delegate system; Delegates dependent on number of members
ii. Committee work, debates, and voting, similar to Congress
iii. Subjects covered include internal government matters, collective bargaining
problems, and resolutions for or against policies
b. Leadership and democracy—officers and executive board direct affairs of union between
conventions and Landrum-Griffin Act provisions promote democracy
c. Profile of labor leaders—most come from working-class families; fathers were hourly
employees; they have an average of 14.1 years of education
d. Administration: departments and staff serve interests of members; Presidents paid well;
members, stewards, and local officials not compensated
e. Professional staff members—appointed or politically elected, international union
representative, staff representative, business agent, or organizer; other group performs
more technical duties, includes professionals
i. Unions today use more modern human resource policies and practices
ii. In-house training provided
iii. Unions’ own staff stops from advancing
f. Services to and Control of Locals
i. Negotiation of master labor agreements, support of strike activities, arbitration,
advice and counsel on internal administration
ii. National union assists locals in collective bargaining, grievance administration,
strike activities, and internal financials; in addition, it provides counseling and
consultation for internal financial administration, such as bookkeeping, dues
collection, and purchases.
iii. National union could replace local leaders with a trustee
g. Dues, Fees, and Distribution of Funds
i. Dues check off system
ii. Portion of monthly dues for each member goes to national union
iii. Dues go to general fund, strike fund, convention fund, union publications,
educational activities, and retirement fund
h. Mergers of National Unions
Mergers occur through amalgamation (two unions joining together), or absorption (larger
union absorbing a smaller union)
i. Overlooked behavioral dimensions
ii. Members tend to evaluate mergers in practical terms
iii. Five unions with over 5 million members have dominated merging activity
i. Intermediate organizational units
i. Regional or district offices—located closer to membership so as to better serve
local unions
ii. Trade conferences—grouping of unions who have common industry interests
iii. Conference boards—organized within international unions to prepare for
negotiations with a particular company
iv. Joint councils—groups of local unions in a specific location that have common
goals, problems, etc.
j. Independent unions
i. 41 independent unions at national level and 1,500 at the local level.
k. Employee associations
i. Support new associations which provide a wide range of services to members
ii. Services include diploma equivalency classes, English classes, toll-free hotline,
courses on sexual harassment, etc.
l. Managerial and professional organizations
i. Managers, supervisors, and professional employees join organizations for their
mutual aid and insurance
ii. Use union-like tactics, such as collective action, skill certification, and political
activities
iii. Organizations do not engage in collective bargaining
VI. The American Federation of Labor-Congress of Industrial Organizations (AFL-CIO)
i. 56 national and international unions, 60,000 local unions, and about 12.7 million
members
ii. Administer about 150,000 labor agreements, over 99 percent negotiated without
strikes
iii. Principle of autonomy—each affiliate conducts its own affairs
iv. Governing body is the Executive Council, composed of the president, secretary-
treasurer, and 55 vice-presidents
v. Executive council meets at least three times a year to handle operational duties
vi. President has authority to supervise affairs of the federation and direct its staff
a. Organizational structure (Exhibit 4.12)
i. Convention, the supreme governing body, meets every two years
ii. Executive Council—composed of president, executive vice-president, secretary
treasurer, and 55 vice-presidents
iii. Standing committees on various subjects to assist member unions
iv. General Board acts on matters referred to it by Executive Council
v. 51 state federations bodies advance interests at state levels
vi. Many local central bodies advance interests at local levels
vii. Financial activities—financed through member dues ($0.75 per month per capita
tax is used for operational expenses)
viii. Internet access to 17 million members, retirees, and associate members, as well
as low-cost computers; Union Privilege Benefit Programs (Exhibit 4.13)
ix. Associate membership program
x. Partnerships with worker centers
xi. Local department councils; Union Cities program
b. Other activities of the AFL-CIO
i. Educational and informational; Website; blogs; courses in union leadership
development; speakers for educational institutions; educational films
ii. Working America program
iii. Lobby and political records publishing; get-out-the-vote campaigns
iv. Political activities through COPE (Committee on Political Education)
c. Use of information technology by unions
i. Internal communications between union officers, staff, and members, particularly
when they are geographically dispersed
ii. External communications, such as to inform the public about union issues
potentially affecting the public, workers, and unions
iii. Facilitation of bargaining activities
iv. Contract administration, such as communicating grievances and tracking
decisions of arbitrators
v. Union organizing, such as making contact with potential union members and
providing a means for interested employees to communicate with the union
vi. Political action, such as informing potential voters about union views and those
held by organized labor’s friends and adversaries
vii. Importance of technology to modernize unionism
viii. Concerns over use of Internet and email
VII. Union corruption and the Landrum-Griffin Act
i. Abuses of power exposed by McClellan hearings of late 1950s
ii. Phasing out of court supervision of Teamsters activities in 2015
iii. Level of corruption in unions is negligible
iv. AFL-CIO established Ethical Practices Committee
v. In 1959 Congress passed Landrum-Griffin Act to promote union democracy,
leadership accountability, and financial integrity; contains provisions governing
union operations and government
vi. The 1984 Comprehensive Crime Control Act, backed by AFL-CIO, closed
loopholes in laws against labor malfeasance; contains the Labor Racketeering
Amendments
VIII. Union security
i. Union security clause
a. Union security provisions
b. Closed shop: employee must first become a union member to obtain a job; made unlawful
by LMRA in 1947
c. Union shop; non-union employee can be hired but must become member within certain
period to remain employed (See exhibit 4.14)
i. Communications Workers v. Beck (487 U.S. 735 [1988]), held that a union shop
clause only requires a bargaining unit member to become a financial core union
member; full union member is subject to imposition of union conditions
ii. Beck rights; annual notification, accounting of funds, implementation procedures
iii. Bush Executive Order 132301 requires federal contractors to post notices
informing workers of their Beck rights
d. Agency Shop; does not require employee to join the union but requires the employee to
pay the union a sum equivalent to union membership dues
e. Contingency union shop; union security provision will automatically convert to a union
shop provision if a state’s right-to-work laws are eliminated
f. Union hiring hall; employers hire employees referred by the union if the union can supply
a sufficient number of qualified applicants
g. Preferential treatment clause; current employees who are union members will be given
preference over nonemployees when a new facility is opened
h. Dues checkoff; makes collection of union dues more convenient for union and union
members
i. Right-to-Work laws: Controversy and Effects
i. Under Section 14 b of the LMRA, a state may initiate legislation prohibiting
union membership as a condition of employment (Exhibit 4.16)
ii. 25 states have right-to-work (RTW) laws (Exhibit 4.17)
iii. Republican party influences places emphasis on passing RTW laws
iv. National Right to Work Committee
v. Wage disparity in favor of non RTW laws states
j. Arguments for Right to Work Laws
i. Required union membership conflicts with employees’ free choice and the
requirement to join a union and/or pay union is undemocratic
ii. Requiring union membership violates the employees’ constitutional rights of free
speech and association if dues are used to support member activities
iii. Required union membership concedes too much power to union officials
k. Arguments for abolishing Right-to-Work Laws
i. Elimination of “free riders”
ii. Union exists by majority vote of the bargaining unit
iii. Union security clause keeps the employers from weakening employees support
for the union because all employees will be paying dues
l. Recent U.S. Supreme Court Decision
i. June 2014, U.S. Supreme Court ruled that an agency fee provision in collective
bargaining violated employees’ free speech under the first amendment of the
U.S. Constitution
Discussion Questions
1. Compare the steps companies may take to implement a positive human resources
management program with principles of effective management.
The elements of positive human resources management are consistent with effective
2. Identify the common goals of companies and unions as opposed to their conflicting goals?
Common goals include;
Conflicting goals include:
3. Assess the strategic plans of the AFL-CIO and CTW, and determine whether these plans
provide direction for growth.
The CTW action plans for growth:
4. Locate a local union and a local plant, and draw an organizational chart for each.
Students can contact a local unionized firm for this information.
5. Select a craft union and an industrial union. Point out the characteristics of these two types
of unions.
6. Compare the government of the local union with student governments and municipal
governments, paying special attention to participation by members.
In nearly all cases, each unit uses the representative government approach, i.e., officials are
elected to represent the various constituency groups (senators elected by students in the
7. Explain why and how national unions’ presidents have been able to accumulate so much
authority and power.
National union presidents tend to accumulate increased authority and power:
• when they are in office for a longer period of time. They gain significant impact by
8. Differentiate among the business agent of a local union, a shop steward, and an international
union representative. How do their roles differ?
As the chief administrative officer, the business agent of a local union (usually a craft union)
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
on the various jobs, administers grievances, and assures that management abides by the
agreement.
The shop steward represents a group of employees in a department or on a job and is either
elected, as in industrial unions, or appointed, as in craft unions. The duties include handling
grievances at the first level, representing the members at union meetings, and collecting
membership dues.
The international union representative is actually an employee of the international union
assigned to a geographic area or a specific number of local unions. The duties include
assisting the local unions in negotiations and arbitration, organizing nonunion plants, and
serving as a communication link between the local and international union.
9. Because the AFL-CIO does not negotiate labor agreements on behalf of national unions,
why is it claimed to be the "spokesperson for organized labor" in the United States?
First, the AFL-CIO represents just about 13 million union members through its affiliated
10. Compare the requirements for union democracy to any student organization with which you
are familiar.
Issues to examine include the following:
• Is the student group governed by democratic principles?
• Is there a constitution?
• Are there regular meetings?
• Are there open elections?
• Are nominations open?
• Do members participate in the activities?
• Are there appeals of officer decisions?
• Is there an outside audit of finances?
• Do leaders obtain input from members?
• Are representatives elected to serve various interest groups?
• Is there full reporting of use of funds?
• Are terms of office fixed?
• Does a small number dominate the organization?
Student answers will vary.
11. Formulate a one- or two-sentence argument for or against the right-to-work philosophy.
Fully defend your statement from arguments that could be made against your position.
Exploring the Web
Labor Unions, Mergers, and Union Security
1. AFL-CIO
2. LaborNet
3. Bureau of Labor Statistics and Current Union Membership
4. Society for Human Resource Management (SHRM)
5. Union Security and Beck Rights
Suggested Readings and Term Paper Topics
1. Taking either (a) a U.S. historical perspective or (b) a multinational perspective,
examine the growth of white-collar, professional labor unions. What does the future
hold for white-collar, professional unions?
Possible references:
Cole, J. (Feb. 28, 2000). Labor says a white-collar walkout at Boeing boosts chance for Organizing. Wall
Street Journal, p. A28.
2. What are the prospects of unionization within the computer or electronics industry?
Support your position.
Possible references:
Boardman, M. (May, 1999). Unions go high-tech. WashTech attempts to recruit high-tech contingent
workers. HRMagazine, 44, (5), 160.
3. How have labor-management relations within the plastics and chemical industry
changed within the last 20 years? What are current issues facing labor and
management in the plastics and chemical industry? What does the future hold for labor
unions in the plastics and chemical industry?
Possible references:
------(August, 1999). Trade organizations attack German union over anti-plastics position. Modern Plastics,
29, (8), 15-16.
(24), 7-8.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Labour Organisation: Chemical Industries Committee (1982). Industrial relations and
collective bargaining in the chemical industries. Geneva, Switzerland: ILO.
Nissen, B. (2003). The Recent Past and Near Future of Private Sector Unionism in the U.S.: An Appraisal.
Journal of Labor Research, 24, 2, 323-38.
Schmitt, W. (July 12, 2000). Unions propose their own care packages. Chemical Week, 162, (26), 83-84.
4. Unions exist as organizations as well as political entities. Are unions becoming poorer
or richer? Why?
Possible references:
Fraser, K. (Oct. 27, 1997). N.Y. Labor bank eyes stake in west coast union trust. American Banker, 162,
(207), 24-25.
Fantasia, R. and Voss, K. (2004). Hard work : remaking the American labor movement. Berkeley:
5. How has the deregulation of the airline industry affected its labor-management
relations? What will the future bring? Support your position.
Possible references:
Cremieux, P. Y. (1996). The effect of deregulation on employee earnings: Pilots, flight attendants, and
6. The Teamsters union has often been accused of having corrupt leaders. Trace the
history of these charges since 1950. Do you believe that the Teamsters leaders have ever
been corrupt? Do you believe that recent government efforts to reform the Teamsters
have been justified, or do you believe that they constitute excessive interference in a
private organization? What steps, if any, should be taken by either the rank-and-file or
the government to further regulate the Teamsters union?
Possible references:
Belace, J. R., & Berkowitz, A. D. (1979). The Landrum-Griffin Act: Twenty years of federal protection
of union members rights. Philadelphia, Penn.: University of Pennsylvania Press.
Belzer, M. H. (1999). Government oversight, union democracy, and labor racketeering: Lessons from the
7. Should the AFL-CIO have more power or less power relative to the power of its
member unions?
Possible references:
8. Should the AFL-CIO endorse political candidates? Why or why not?
Possible references:
------- (Sept., 1999). Unions defeat paycheck protection bills. HR Focus, 76, (9), 16.
Delaney, J. T., Masters, M. F., & Schwochau, S. (July, 1990). Union membership and voting for COPE-
endorsed candidates. Industrial and Labor Relations Review, 43, 621-635.
9. In his chapter, "Southern unions: History and prospects" (1985, from J. C. Cobb & R.
Wilson, Eds., Perspectives on the American South, vol. 3, NY: Gordon and Breach) Ray
Marshall argues that unions will experience substantial growth in Southern states.
Agree or disagree with his arguments and conclusion.
Additional references:
Bennett, J. T. (Winter, 1991). Private sector unions: The myth of decline. Journal of Labor Research, 12,
(1)1-12.
10. Write a history of one of the local unions in the community. Assume that you will
submit your paper for publication in a local magazine.
Possible references:
-----(January, 1989). "Telling our own history: how to discover and present the history of your local union."
United Mine Workers Journal, 100, 6-13.
11. The J.P. Stevens Co. achieved notoriety in the 1960s and 1970s for its vigorous anti-
union stand. Analyze the tactics the company used. Also look at the tactics the union
used. Was either side justified in using those tactics? Why or why not?
Possible references:
Mullins, T. W., & Luebke, P. (1982). Symbolic victory and political reality in the Southern textile industry:
The meaning of the J. P. Stevens settlement for Southern labor relations. Journal of Labor Research, 3, 81-
12. Analyze labor-management relations in the U.S. textile industry. What role have
unions played historically? What does the future hold?
Possible references:
Dubofsky, M. (2003). Culture of Misfortune: An Interpretive History of Textile Unionism in the United
States. Industrial & Labor Relations Review, 56, 3, 560-562.
13. Analyze the life of labor leader Walter Reuther. What factors accounted for his
success?
Possible references:
Carew, A. (1993). Walter Ruether. Manchester, UK: Manchester University Press.
Howe, I., & Widick, B. J. (1949). The UAW and Walter Reuther. NY: Random House.
14. Analyze the history of the labor movement in the timber (lumberjacks) and/or lumber
workers industry.
Possible references:
-----(Feb., 1993). Union workers form timber policy group. Pulp & Paper, 67, (2), 23.
Fickle, J. E. (1981). Race, class, and radicalism: The Wobblies in the Southern lumber industry, 1900-1916.
15. Analyze the alleged corruption within the United Mine Workers during the 1960s and
1970s. Answer one of the following sets of questions:
A. Was the leadership of the UMW corrupt during the time of Tony Boyle? Or were
his actions justified?
B. Was the leadership of the UMW corrupt during the time of Tony Boyle? Was his
administration worse than that of John L. Lewis, or were they both equal in their
level of corruption and integrity?
Possible references:
----(June 26, 1971). Bombshell from the Yablonski trial. Business Week. pg. 30.
----(May 13, 1972). Boyle's opponents gain real strength. Business Week. pp. 52-53.
16. Analyze the labor relations movement in the construction industry. How is it different
from other industries (e.g., a factory)? How is it changing? Support your positions.
Possible references:
Allen, S. G. (1988). Declining unionization in construction: The facts and the reasons. Industrial and Labor
Relations Review, 41, 343-359.
Cullen, D. E., & Feinberg, L. (1980). The bargaining structure in construction: Problems and prospects.
17. Analyze labor relations in the coal industry during the last 20 years. What trends have
emerged? What does the future hold?
Possible references:
-----(February 13, 1993). American coal mining: Seam of trouble. The Economist, 326, (7798), 72.
Cimini, M. H. (May, 1990). Developments in Industrial Relations. Monthly Labor Review, 113, (5), 58-60.
18. Should baseball abandon Final Offer [interest] Arbitration? Why or why not?
Possible references:
Dickinson, D. L. (2004). A Comparison of Conventional, Final-Offer, and "Combined" Arbitration for
Dispute Resolution. Industrial & Labor Relations Review, 57, 2, 288-301.
Marburger, D. R., & Scoggins, J. F. (Fall, 1996). Risk and Final Offer Arbitration usage rates, evidence
19. Analyze labor-management relations between U.S. airlines and the ALPA.
Possible references:
20. Analyze labor relations within the merchant marine. What challenges are facing the
Marine Engineers Beneficial Association/National Maritime Union (MEBA/NMU)
and/or the International Maritime Union (IMU)? What does the future hold?
Possible references:
Chapman, P. K. (1992). Trouble on board: The plight of international seafarers. Ithaca, NY: ILR Press.
Donn, C. (1989). Concession bargaining in the ocean-going maritime industry. Industrial and Labor
21. What role have white collar unions played in the labor movement? What role should
they play in the future? (You can focus on the travel and/or hospitality industry.)
Possible references:
Bielski, M. (2003). We Can't Eat Prestige: The Women Who Organized Harvard. Journal of Labor
Research, 24,1 187-188.
Care Manager, 22, 4, 311-317.
22. In 1988, the NLRB decided that all health care workers should be grouped into one of
eight types of bargaining units. Analyze the implications of this decision for union
organizing in the health care industry.
Possible references:
Albert, R. M. (1991). U. S. Supreme Court decision to generate more union activity. Health Systems
Review, 24, (4), 40-42.
Deshpande, S. P. (2003). Labor relations strategies and tactics in hospital elections. Health Care Manager,
23. How has labor relations within the longshoremen's union changed within the last 70
years? Are the changes for the better or worse? Defend your position.
Possible references:
Boyce, C. (Feb. 15, 1999). Automating the docks. Traffic World, 257, (7), 5-6.
Finlay, W. (1987). Industrial relations and firm behavior; informal labor practices in the West Coast
longshore industry. Administrative Science Quarterly, 32, 49-67.
24. Analyze labor-management relations in parochial schools. Should teachers at religious
schools (and/or professors at religious universities) engage in collective bargaining?
Why or why not? What does the future hold for these workers?
Possible references:
-----(Feb. 7, 1992). 'Economic justice for all (including church workers)' National Catholic Reporter, 28, p
20.
Bole, W. (August 30, 1991). Labor and religion remarry after separation, but church labor record creates
25. What are the major issues facing retail food industry workers? You may focus on
either grocery stores or restaurants. What advice would you offer to union leaders?
Possible references:
-----(April, 2003). How unions and management are working together to cut benefits costs, HR Focus, 80,
4, 10-11.
Ichniowski, C., & Delaney, J. T. (1990). Profitability and compensation adjustments in the retail food
26. Some say that union stewards are the guardians of employee rights. Others say union
stewards are paid troublemakers. What do you think? Support your arguments.
Possible references:
Baum, J. R. (February, 1963). Why be a lodge officer? Brotherhood of Locomotive Firemen and
Enginemen's Magazine. Reprinted in Bakke, E. W., Kerr, C., & Anrod, C. W. (eds.) (1967). Unions,
management, and the public, third edition. NY: Harcourt, Brace, & World, 157-158.
