CHAPTER 14
THE DYNAMICS OF LABOR RELATIONS
CHAPTER OUTLINE
14.1 The Labor Relations Process
14.1a Why Employees Unionize
14.1c Union Avoidance Practices
14.1d Organizing Campaigns
14.1e Employer Tactics Opposing Unionization
14.1g NLRB Representation Election
14.2 The Bargaining Process
14.2a Preparing for Negotiations
14.2c Developing Bargaining Strategies and Tactics
14.2e Good-Faith Bargaining
14.2f Interest-Based Bargaining
14.2g Management and Union Power in Collective Bargaining
14.3 The Labor Agreement
14.3b Union Security Agreements
14.4 Administration of the Labor Agreement
14.4a Negotiated Grievance Procedures
14.5 Contemporary Challenges to Labor Organizations
14.5a Decrease in Union Membership
14.5b Globalization and Technological Change
LEARNING OUTCOMES
After studying this chapter, students should be able to:
1. Reflect upon reasons that employees join unions.
3. Outline the challenges faced by HR managers when union representation is voted into a
company.
4. Discuss the bargaining process and the bargaining goals and strategies of a union and
an employer.
Chapter 14: The Dynamics of Labor Relations 5
Step 5: The union wins the election. The NLRB certifies the union as the legal
bargaining representative of the employees. Contract negotiations begin. If the
Teaching Tip: Use Figure 14.4 to discuss the steps to organize a union.
Discussion Starter #3: Describe the steps in the traditional organizing drive.
ANSWER: The typical union organizing drive consists of the following five steps:
Step 1: Employees and union officials meet to explore the possibility of unionization. To win
EOC Discussion Question #2: Describe the steps in the traditional organizing drive.
Aggressive Organizing Tactics
The labor movement has become more aggressive and creative in its organizing
tactics:
• Political involvement
• Neutrality agreements
12 Part 5: Enhancing Employee-Management Relations
First, when possible, employers stress the favorable employer–employee relationship
they have experienced in the past without a union. Employers may emphasize any
advantages in wages, benefits, or working conditions the employees may enjoy in
2. Step 1: Employees and union officials meet to explore the possibility of unionization. To
win employee support, labor organizers build a case against the employer and for the
union.
Step 2: The organizer schedules an initial union meeting to attract more supporters.
Meetings also (1) identify employees who can help the organizer direct the campaign and
(2) establish communication with all employees.
Step 3: Form an in-house organizing committee composed of employees willing to
provide leadership to the campaign. An authorization card is a statement signed by an
3. The employees to be organized constitute the bargaining unit to be covered by the labor
agreement. The NLRB defines a bargaining unit as a group of two or more employees
14 Part 5: Enhancing Employee-Management Relations
NOTES FOR END-OF-CHAPTER CASE STUDIES
Case Study 1: The New Union Battles: Public Unions vs. Rich World
Governments
1. The weak economy in 2011 resulted in many states seeing tax revenue going down but
not spending requirements. Given that state governments do not have the same power as
2. The risk is that state employees may not get as much of an increase in pay and benefits as
3. The politician could indicate that only a given amount will be available for compensation
to state employees and to stay within the budget, the union can choose to cut pay and
Case Study 2: The Arbitration Case of Jesse Stansky
1. Arbitrators will give different weights to facts and evidence presented in an arbitration
hearing. Company policy, employee handbooks, and the labor agreement will be
evaluated strongly in the employer’s favor. Management has the right to establish the
