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PART ONE: LABOR RELATIONS OVERVIEW
CHAPTER 1: INTRODUCTION TO LABOR RELATIONS
LABOR NEWS: COLLECTIVE BARGAINING RIGHTS & PUBLIC UNIONS IN HISTORIC
FIGHT!!!
CHAPTER 1: OUTLINE
I. What Is Labor Relations and Why Study It?
Labor relations is the term which generally refers to the process between management and a
representative of employees (a union) utilized to make decisions in the workplace.
Collective Bargaining Agreement is a written and signed document between an employer entity
and a labor organization specifying the terms and conditions of employment for a specified period
of time.
Figure 1–1 contains an example of an agreement and list of the major subjects contained in most
CBAs.
Collective bargaining in the private sector is the process by which union leaders representing
groups of employees negotiate specific terms of employment with designated representatives of
management.
II. Labor Unions Today: Pros and Cons
Labor organization
Defined in Sec. 2. [§ 152.] of the NLRA
Means any employee committee or other organization of any kind in which employees deal with
employers concerning grievances, labor disputes, wages, hours, or working conditions
B. The General Pros and Cons of Union Membership,
Members support unions for higher wages, representation in discipline/discharge cases, greater
job security, better health care, pension, and paid time-off benefits. Some members complain of
union dues, and less possibility of individual rewards based on performance.
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III. Why Join a Union?
Why Join a Union? See Table 1-4.
Job Security. Above all, employees want protection from unfair or arbitrary decisions by
management. In cases of layoffs, they expect seniority to be followed; and in cases involving
discipline and discharge, they expect the union to provide them with experienced advice and
counsel.
Wages and Benefits. This is the “bread and butter” issue for many workers. They expect contract
negotiations to provide them with better wages and benefits than their nonunion counterparts—at
least by a difference that exceeds their union dues. See Table 1-3.
B. Soft Issues
Recognition
Protection from humiliation
Hopelessness
Double standards
C. Perceived Differences Between Union and Nonunion Workplace Benefits
See Table 1-4
Due process
Wages and benefits
Objective standards for employment actions
Discipline, Weingarten Rights
Voice in workplace
Access to information
IV. Union Membership
2009 saw public sector union membership as a percent of workers bypass union membership in
the private sector See Figure 1-3.
Union Leaders
Workplace changes
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Union membership by State is seen in Figure 1-3.
3. a. Union members feel they are getting less self-direction in the
workplace than nonunion workers. Some attribute union member layoffs and replacement
workers as the reason.
b. Increased similarity between union and non union benefits
D. Employee Free Choice Act
V. Opportunities for Growth
Strategic Industry Focus.
Change to Win aims to build membership and union strength by focusing on a few strategic
industries—building services, hospitals, long-term health-care providers, express shipping, and
the leisure/hotel/lodging industry.
Hospitality industry: Unions also focusing on service industry such as hotel workers.
Health care industry: unionization is growing because of low take-home pay, too much overtime,
and poor patient care. Unions are using sophisticated organizing methods and employers have
not stressed positive employee relationships.
Airline industry: Post-September 11 airline restructuring as a result of bankruptcies gives unions
VI. Labor–Management Cooperation
A. Voluntary recognition of the union. Although an unusual occurrence, in some cases
B. Performance-based incentive systems. A growing number of CBAs contain provisions
that base future employee pay increases on increased specified employer
C. Employee teams. Increasingly, CBAs contain provisions for employee teams. Such teams
most often take one of three forms:
1. Permanent self-managed teams that are given greater decision-making power
2. Problem-solving teams or “quality circles” are created to improve quality and
develop solutions for particular problems.
3. Special project teams which are usually 10 to 15 people from different functions
brought together to design and develop a new process or product.
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D. QWL programs. Quality of Work Life (QWL) programs involve union and management
representatives that meet to improve communications and their general quality of life
in the workplace.
E. Federal government. National Partnership Council teams of union and management
VII. Types of Unions
Industrial unions found their start in factories where largely unskilled laborers worked.
Transportation unions in the railroad and airline industries, such as the United Transportation
Union and the Air Line Pilots Association, are governed by the Railway Labor Act, which differs
some from the National Labor Relations Act.
Craft unions are labor unions whose membership is organized in accordance with their craft or
skills.
D. United Farm Workers, founded by Dolores Huerta and Cesar Chavez, do not have the
protections of the National Labor Relations Act, but they do have rights under California law and
still organize and gain recognition through concerted activities.
E. Unions in Professional Sports – Baseball
2. 1970: New contract term included tripartite grievance panel.
4. Free agent can sign with any team. Other players committed to team remain in place until
free agent status is reached.
1970–2010.
VIII. National Labor Relations Board (NLRB): The National Labor Relations Board (NLRB)
oversees most labor relations activities in the private sector and was created by the 1935 National
Labor Relations Act.
A. Jurisdiction of the NLRB
1. Persons. The definition of a person under the National Labor Relations Act is all-
2. Labor Dispute. A labor dispute must exist for the board to exercise jurisdiction.
4. Employees. The definition of employee is liberally construed, so exclusions in the
definition become important in determining who is not an employee.
6. Labor Organizations.Labor organizations are most commonly labor unions, but the
7. Preemption the NLRA is a federal law that preempts state law
a. Board allowed to cede jurisdiction and state allowed to regulate.
CHAPTER 1: END CASE DISCUSSION
Case Study 1.1: Job Performance
Decision:
The judge noted the undisputed fact that the company offered the four aggrieved employees, who
were allegedly the cause of the majority, if not all, of the output and quality problems, their very
same jobs back as nonbargaining unit employees. This indicated that there were serious
deficiencies in the company’s thinking, or the allegations were gross exaggerations or
fabrications. At no time prior to Sept. 1999, when the job classification removal action was put
into effect, did anyone in the company ever tell the union that the 1996 agreement was still in
effect and that under the agreement the experiment had been declared a failure.
In the judge’s opinion, the record clearly establishes, given the fact that there were discussions
and agreements reached during the 1998 negotiations regarding Tester/Assemblers and
Questions for Discussion:
1. Why would the placement or removal of the job classifications in a bargaining unit have
any impact on the quality of the job performed?
2. If the company knew that the tester “experiment” was not going well during the
negotiations on a new contract, should it have negotiated the issue?
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3. Was the company justified in attempting to remove the positions from the union?
Case Study 1.2: Grooming Standards at Southwest Airlines
Decision:
The arbitrator agreed with the company. The company had a legitimate business reason for using
Questions for Discussion:
1. How realistic is the company’s argument with regard to grooming standards?
2. Can an employer unilaterally impose a grooming rule over the objections of its
employees or their bargaining agent?
3. How valid is the company’s argument that the labor agreement with maintenance
employees is “beyond the scope of this grievance?”
The company’s argument is valid. The male maintenance employees are not part of the same
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CHAPTER 1: REVIEW QUESTIONS
At this point in your reading of the text, what do you believe are the major pros and cons of
unions today?
2. What are the names of three national labor unions that you are aware of and what are the
general work activities of their members?
3. What do the terms “collective bargaining agreement (CBA)” and “contract” generally
refer to in labor relations?
4. The year 2009 was a significant year in the trends of union membership in the United
States, why? Do you believe this event will reverse itself? Why or why not?
In 2009, more union members were government workers (7.9 million) than were private sector
workers (7.4 million), according to the U.S. Bureau of Labor Statistics. The blue-collar worker is
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5. Which U.S. industry do you believe is likely to grow in union membership in the next
decade, why?
6. By what means did Cesar Chavez successfully organize the United Farm Workers in
California? Do you believe the same means could be utilized successfully today? Why or why
not?
7. What provisions in the agreement between the Major League Baseball Players
Association (MLBPA) and the team owners began what is called “the modern era” of
professional sports? Why? Do you agree it began the modern era?
8. In general how do jobs in craft unions differ from those in industrial unions?
YOU BE THE ARBITRATOR
Should an Employee’s File Be Expunged?
Introduction: This grievance concerns the warning memo placed in the file of a college professor.
YOU BE THE ARBITRATOR INSTRUCTIONS: At the end of each chapter is the summary of
an actual grievance case that could not be decided by management and union representatives and
thus as provided in the CBA (Collective Bargaining Agreement) at the request of either party was
referred to an arbitrator to make a “final and binding” decision that both parties have agreed to
accept. You are required to perform the duty of an arbitrator (judge) and carefully read the facts,
relevant section(s) of the CBA which are provided, and the positions of the parties, and then make
a decision. Arbitrator decisions contain two parts; an “award”—one side or the other has asked
for something that the other has not agreed to, for example, in cases involving a terminated
Questions
As arbitrator, what would be your award and opinion in this arbitration?
2. Explain why the relevant provisions of the CBA as applied to the facts of this case dictate
the award.
3. What actions might the employer and/or the union have taken to avoid this conflict?
Chapter 1: POINTS FOR DISCUSSION
Some frequently encountered viewpoints or criticisms of U.S. business unions.
Are unions riddled with crooks?
2. Do unions featherbed (create jobs that have few if any duties) so some people are paid for
doing little if any work?
3. Do most unions strive to create restrictive work rules? For example, someone might
lament how a worker can clean a light bulb, but only an electrician is allowed to change a burned
out light bulb. Can management live with such restrictions in today’s highly competitive
environment?
There is a legal restriction regarding featherbedding that we will see later.
Do managers ever take long lunches, socialize, or knock off early? Have managers ever been
criticized for having lavish golf outings during a period of austerity? Have some defense
contractors gotten caught charging ridiculous amounts for toilet seats and claw hammers? Do
managers in the United States get paid far more compared to our workers than their counterparts
in Japan and other countries? Are managers immune from what the workers and their unions are
being criticized for? Is part of this human nature? Once competition becomes intense, do these
practices have to be brought in line?
4. Do unions focus so much on raising wages that the leaders lose sight of the job losses that
are caused by increased labor costs?
5. Are U.S. unions communistic?
Unions are a key part of free societies. Business unions have no place in totalitarian regimes such
as Fascism and Communism.
6. Do unions cause inflation?
When there is rapid inflation, some unions will bargain to keep up and some may obtain Cost of
Living Allowance clauses (COLAs) that kick in automatically. In other words, unions may
7. There are very few unions in the South, so why bother to study labor relations?
8. Some students work in white-collar settings. Why should they bother learning about
unions?
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CHAPTER 1: EXTRA CASES
DISCIPLINARY ACTION
Facts:
The employee, a union shop steward, was on her regularly scheduled day off at home.
She was called by her supervisor and told to talk to three union members and instruct them to
attend a work function called a “Quest for Quality Interaction Committee” meeting. The Quest
for Quality program was a high priority with the employer for improving patient care at the
facility and was part of a corporate program. The union had objected to the implementation of the
Quest for Quality program and had taken a position that employees could attend the program if
their jobs were threatened, but they should do so under protest and then file a grievance
afterward.
On the day in question, the union shop steward, in a three-way conversation with the three
employees, told them that she would not order them to attend the Quest for Quality meeting,
although she had been asked by her supervisor to instruct them to go to the meeting. The
The union position was that the company had no authority to discipline the union shop steward on
her day off for failure to give what it termed a management direction to perform the specific job
function of attending a mandatory corporate meeting. The union pointed out that it was unfair that
the employer refused to order the employees directly to attend the meeting but then expected the
Nonetheless, the union contended that the arbitrator must examine the nature of the order when
deciding whether the insubordination was grounds for discipline. As to the nature of the order in
this case, the employer had to demonstrate that the order was directly related to the job
Decision:
The arbitrator pointed out that the contract between the employer and employee in this case had
the standard “just cause” provision requiring the employer to demonstrate reasonable grounds for
its disciplinary action. The employer alleged in this case that the employee disobeyed the direct
orders of her supervisor and, therefore, the employee should be disciplined for insubordination.
The arbitrator found that the employee, in refusing to issue the order that the supervisor asked her
to issue, was not challenging the supervisor’s authority to direct the workforce in the
accomplishment of its corporate mission. In fact, it was the supervisor’s duty to instruct the
employees or order the employees to attend the meeting, not the union shop steward’s. The
Questions for Discussion:
1. As the arbitrator, do you think the employer had just cause to discipline the employee?
2. If the union’s opposition to the “Quest for Quality” program encouraged the employees
not to participate, why shouldn’t the union be held responsible for directing the employees to
attend?
3. Did the employee’s action really justify the penalty imposed by the company?
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NEW WORKFORCE ISSUES
Facts:
Officer Clark Fischer was ordered by his police sergeant to remove an earring (ear stud) from his
left ear while on duty. The police chief upheld the sergeant’s order. Officer Fischer complied with
the order but grieved the issue. Officer Fischer alleged there was no written prohibition to the
wearing of earrings by police officers in either the contract or the rules by which the force
operates. He pointed out, in fact, that the chief himself wore an earring in his off-duty hours.
Decision:
The arbitrator likened police to the military and in doing so pointed out that a “uniform
appearance was concomitant with a professional police force.” Because an earring was not
explicitly included in the description of an officer’s uniform, it was excluded. Therefore, Officer
Fischer’s grievance was denied.
Questions for Discussion:
1. “Stereotyping” based upon physical characteristics or appearance is the basis for
prejudice. Why do you think the arbitrator in this instance decided against the officer’s right to
wear an earring?
2. Is there a need for police to have a different image from the para-military image uniform
projects?
CHAPTER 1: EXERCISE
ATTITUDES TOWARD UNIONS
PURPOSE:
To examine your general attitude toward unions and discuss the possible causes for any positive
or negative feelings.
TASK:
Divide into small groups. Complete the following survey. The statements in this survey are listed
in pairs. Put an X next to the statement that you agree with more firmly. If you strongly agree
management relations.
1. (a) Unions are an important, positive force in our society.
(b) The country would be much better off without unions.
2. (a) Without unions, the state of personnel management would be set back a hundred
3. (a) Unions help organizations become more productive.
4. (a) Today’s standard of living is largely due to the efforts of the labor movement.
6. (a) Unions afford the worker protection against arbitrary and unjust management
7. (a) Unions want their members to be hardworking productive employees.
(b) Unions promote job security rather than worker productivity.
9. (a) Section 14(b) of the Taft-Hartley Act (which allows individual states to pass
10. (a) Unions are instrumental in implementing new, efficient work methods and
11. (a) Without unions, employees would not have a voice with management.
(b) Labor–management communication is strengthened with the absence of a union.
12. (a) Unions make sure that decisions about pay increases and promotions are fair.
13. (a) The monetary benefits that unions bargain for are far greater than the dues the
14. (a) Employee discipline is administered fairly if the organization is unionized.
15. (a) Without the union, the employee would have no one with whom to discuss work-
16. (a) Union officers at all levels carry out their jobs in a competent and professional
18. (a) Unions are truly domestic institutions with full participation of the rank and file.
(b) Unions are controlled by the top leadership rather than by the rank and file.
20. (a) Unions are necessary to balance the power and authority of management.
(b) The power and authority of management, guaranteed by the Constitution and the
12), the survey can be repeated and changes in attitudes noted for comparison purposes.
This exercise will enable students to examine their own attitudes and possible bias toward unions.
The scale should be completed individually with the following scale provided after completion so
that students can score their own exercise. It may then be useful to divide the class into three
groups: strong union (+20 or greater), strong antiunion (less than –20), and neutral (–20 to +20).
discussing this item, challenge the students to present facts, not myths or folklore.
Scoring the Attitude Toward Union scale
For each “X” next to an “a.” answer, score +1 point
For each “X” next to a “b.” answer, score –1 point
With this scoring scheme, the range of possible scores is:
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Place a scale on the board and ask for show of student hands for certain score categories.
Example:
Anti-Union Pro-Union
–40 –20 0 +20 +40