Chapter 16: Union/Management Relations
Chapter 16
Union/Management Relations
Learning Objectives
After students have read this chapter, they should be able to:
• Describe what a union is and explain why employees join and employers resist
unions.
Chapter Overview
This chapter deals with the nature of unions, globalization of unions, union membership
trends, unions in the U.S., basic labor law, the process of unionization, collective
bargaining issues, the collective bargaining process, union/management cooperation, and
grievance management.
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. But most recently, unions in the United States
Chapter 16: Union/Management Relations
have resulted in a decline of unions. The union targets for membership growth are
professionals, low-skill workers, and contingent and part-time workers. The history of U.S.
unions is presented with a discussion of the union structure including federations, national
and international unions, and local unions.
Next the chapter describes the basic labor laws in the U.S. Early labor legislation includes
the Railway Labor Act and the Norris-LaGuardia Act. Unions and union-management
relations in the private sector are governed primarily by what has been labeled the
“National Labor Code”:
• The Wagner Act
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/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
Chapter 16: Union/Management Relations
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 working conditions, and influence workplace rules. When a union
is present, these issues are decided through collective bargaining agreements and specified
in formal contracts that are supported by management and labor.
Exactly how political, economic, and workforce changes affect employers and unions will
be factors in the future of the labor/management relationship. Even though fewer workers
have chosen to be union members in recent years than in the past, employers and HR
professionals still need to understand the system of laws, regulations, court decisions, and
administrative rulings related to the nature of unions.
I. Perspectives on Unionization
HR Headline: Union Decides to Drop Mental Health Coverage
A majority of health insurance programs specify that 24 months of long-term disability
payments is the maximum amount given for outpatient treatments of mental health or
substance abuse problems when a claimant is not working. In addition, use of the benefit
accumulates over time and stays in effect for as long as the policy exists.
Chapter 16: Union/Management Relations
Union representation has a number of advantages and disadvantages. It can provide a
balance to the unchallenged decision-making power of management when needed.
A. Why Employees Unionize
Whether a union targets a group of employees 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
• They believe that unions can improve their work situations
The major factors that can trigger unionization are issues of compensation, working
conditions, management style, and employee treatment (Figure 16-1).
weaken workers’ perceptions of unions.
B. Why Employers Resist Unions
Employers usually would rather not have to negotiate with unions because they affect
how employees and the workplace are managed. Unions are criticized for creating
inefficiencies in the workplace that cause waste and poor work performance.
Chapter 16: Union/Management Relations
Once established, some employers pursue a strategy of good relations with unions,
while others choose an aggressive, adversarial approach. However, there are a numbers
of strategies that can be employed to prevent unionization from occurring in the first
place. Companies can develop good employment practices, encourage greater employee
HR Professionals and Unionization
To prevent unionization, as well as to work effectively with unions already
representing employees, both HR professionals and operating managers must be
attentive and responsive to employees. The pattern of dealing with unionization
II. Union Membership in the United States
The statistics on union membership tell a disheartening story for organized labor in the
United States during the past several decades. Union membership covered more than 30%
of the workforce from 1945 to 1960. But most recently, union membership in the United
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opportunities. The Bureau of Labor Statistics most recently disclosed that union
membership among employees working in the private sector had increased by
approximately 50,000, for a total of almost 15 million individuals.
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 perception by firms that dealing with unions is expensive compared with
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
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
Workforce Changes
Chapter 16: Union/Management Relations
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 significant. Unions have increased efforts to organize white-collar workers
as advances in technology have boosted their numbers in the workforce. However,
B. Public-Sector Unionism
Unions have had 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 more than 40% of government workers represented by unions. Local (city and
county) government workers have the highest unionization percentage of any group in
the U.S. workforce.
C. Union Targets for Membership Growth
The continuing losses have led to disagreements among unions about how to fight the
decline. Rather than remaining a part of the traditional AFL-CIO labor organization,
Professionals
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Low-Skilled Workers
On the other end of the labor pay scale, unions have targeted low-skilled workers,
many of whom have lower-paying, less desirable jobs. Janitors, building cleaners,
nursing home aides, and meatpacking workers are examples of groups successfully
Contingent and Part-Time Workers
As many employers have added contingent workers instead of full-time employees,
unions have tried to target part-time, temporary, and other employees. A decision by
III. Union History and Structure in the United States
The union movement in the United States has existed in some form or another for more
than two centuries. During that time, the nature of unions has evolved because of legal and
political changes.
A. Evolution of U.S. Unions
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• In 1806, when the shoemakers’ union struck for higher wages, a Philadelphia
court found union members guilty of engaging in a “criminal conspiracy” to raise
wages.
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
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.
Change to Win
The establishment of Change to Win meant that seven unions with about 6 million
members left the AFL-CIO. The primary reason for the split was a division between
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the United Food and Commercial Workers.
National and International Unions
National and international unions are not governed by a federation even if they are
affiliated with it. They collect dues and have their own boards, specialized
publications, and separate constitutions and bylaws. Such unions as the United
Local Unions
Local unions may be centered around a particular employer organization or a
particular geographic location. The members of local unions elects officers who are
subject to removal if they do not perform satisfactorily. For this reason, local union
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 from organizing employees. Over a period of many years, the federal
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government has taken action both to hamper unions and to protect them.
A. Early Labor Legislation
Beginning in the late 1800s, federal and state legislation related to unionization was
passed. The two most prominent acts are the Railway Labor Act and the Norris-La
Guardia Act.
Railway Labor Act
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
Norris-LaGuardia Act
The crash of the stock market and the onset of the Great Depression in 1929 led to
massive cutbacks by employers. In some industries, the resistance by employees led
The Next Stage
The economic crises of the early 1930s and the continuing restrictions on workers’
ability to organize into unions led to the passage of landmark labor legislation, the
Wagner Act, in 1935. Three acts passed over a period of almost 25 years constitute
the U.S. labor law foundation:
• The Wagner Act
• The Taft-Hartley Act
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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 was, by anyone’s standards, prounion. Passed
in 1935, the Wagner Act was an outgrowth of the Great Depression. With employers
Unfair Labor Practices
To protect union rights, the Wagner Act prohibited employers from using unfair
labor practices. Five of those practices were identified as follows:
• Interfering with, restraining, or coercing employees in the exercise of their
right to organize or to bargain collectively
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
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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 union actions. It was considered to be pro-management and became the second
of the major labor laws.
National Emergency Strikes
The Taft-Hartley Act allows the President of the United States to declare that a strike
presents a national emergency. A national emergency strike is one that would impact
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 employment. The laws were so named because they allow a
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become involved in lawsuits where workers have claimed to have been coerced to
join unions.
In states that do not have right-to-work laws, different types of arrangements exist.
Three of the different types of “shops” are as follows:
• Union shop—arrangement requires that individuals join the union, usually 30
to 60 days after being hired.
The nature of the shop is negotiated between the union and the employer. Often
employees who fail to meet the requirements are terminated from their jobs.
HR Perspective: Michigan Passes 24th Right-to-Work Provision
Michigan became the 24th right-to-work state, which will greatly reduce the role
of unions representing workers in both public and private organizations in this
The passage of this legislation is not without its detractors. Thousands of
protestors gathered outside the Capitol building to express their concerns about
the state’s new right–to-work agenda. Access to the Capitol was closed because
the building was beyond capacity, so individuals had to gather in the
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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. Because a union is supposed to be a democratic institution in which
union members freely vote on and elect officers and approve labor contracts, the
union conduct.
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
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 become recognized without an election by secret
ballot. As a result, the “campaigns” against management that unions dislike would be
be negotiated within a certain time period or one could be imposed by an arbitrator.
V. The Unionization Process
The typical union organizing process is outlined in Figure 16-6. 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
Chapter 16: Union/Management Relations
A. Organizing Campaign
Like other entities seeking members, a union usually mounts an organized campaign to
persuade individuals to join. Employers respond to unionization efforts by taking
various types of opposing actions.
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 cards. Some employers hire consultants who specialize in combating
unionization efforts. Using these “union busters,” as they are called by unions,
Many employers have created a “no–solicitation” policy to restrict employees and
outsiders from distributing literature or soliciting union membership on company
premises. Employers without such a policy may be unable to prevent those acts. A
policy against solicitation must be a long-term, established approach, not a single
Unions’ Organizing Efforts
The organizing and negotiating successes of unions are tied to the economy and
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economic trends. The persuasion efforts by unions can take many forms, including
personally contacting employees outside work, mailing materials to employees’
homes, inviting employees to attend special meetings away from the company, and
publicizing the advantages of union membership. The purpose of all this publicity is
to encourage employees to sign authorization cards.
B. Authorization Cards
HR Perspective: Economic Cycles and Unions
Employees get involved with unions because they believe these organizations can help
improve their situations in the workplace. Under some circumstances, unions can
function as a positive sounding board for the concerns of employees. Even though there
has been a reduction in union membership, unions might be able to once again improve
employees’ work experiences.
Chapter 16: Union/Management Relations
A union authorization card is signed by employees to designate a union as their
collective bargaining agent. At least 30% of the employees in the targeted group must
sign authorization cards before an election can be called.
However, the fact that an employee signs an authorization card does not necessarily
mean that the employee is in favor of a union. It means only that the employee would
like the opportunity to vote on having a union. Employees who do not want a union
might sign authorization cards because they want management to know they are
disgruntled or because they want to avoid upsetting coworkers who are advocating
unionization. Employers and some politicians argue that eliminating elections violates
the personal secrecy and democracy rights of employees.
C. Representation Election
Bargaining Unit
Before any election, the appropriate bargaining unit must be determined. A
bargaining unit is composed of all employees eligible to select a single union to
represent and bargain collectively for them. If management and the union do not
agree on who is and who is not included in the unit, the regional office of the NLRB
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Supervisors and Union Ineligibility
Provisions of the National Labor Relations Act exclude supervisors from voting for
Election Unfair Labor Practices
Employers and unions engage in a number of activities before an election. Both the
Wagner Act and the Taft-Hartley Act place restrictions on these activities. Once
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Election Process
If an election is held, the union needs to receive only a majority of the votes.
Typically, the smaller the number of employees in the bargaining unit, the higher the