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Chapter 15: Union–Management Relations

Chapter 15:

Union–Management Relations

Table of Contents

Chapter Summary

Learning Objectives

Lecture Outline

Critical Thinking Challenges

Case: Interest in Student Unionization on the Rise

Supplemental Cases

Extra Teaching Video

Chapter Summary

Chapter 15 explores the role of labor unions in American industry and how unions work. The

first section identifies the advantages and disadvantages of labor unions for employers and

employees. The next section looks at the current status of labor unions in the United States and

Learning Objectives

After students have read this chapter, they should be able to accomplish the following objectives:

• Discuss what a union is and explain why employees join and employers resist unions.

• Outline the current state of union activity in the United States and identify several reasons

for the decline in union membership.

• Explain the provisions of each of the major U.S. labor laws and recognize the impact of

these laws and National Labor Relations Board (NLRB) rulings on nonunion workplaces.

Chapter 15: Union–Management Relations

prevalence of right-to-work laws in the United States.

Lecture Outline

HR Headline: Whole Foods Must Ditch Its No-Recording at Work Policy

Whole Foods drafted a no-recording policy to protect itself from the problems that can occur when

recordings are allowed. However, the National Labor Relations Board disputed this policy in a

lawsuit, which it ultimately won.

• A union is a formal association of workers that promotes the interests of its members

through collective action.

• The government has broadened its interpretation and application of labor laws to include

15-1. Perspectives on Unionization

• Union representation has both advantages and disadvantages.

15-1a. Why Employees Unionize

• Employees join unions for two reasons: (1) they are dissatisfied with how they are

15-1b. Why Employers Resist Unions

• Unions affect how employees and workplaces are managed.

• Unions have been criticized for creating inefficiencies and causing unequal

15-2. Union Membership in the United States

• Early forms of labor unions began in the 18th century.

• Immigrants formed the foundation for the workforce in factories during the Industrial

15-2a. Reasons for U.S. Union Membership Long-Term Decline

• Trends that contribute to the decline of union membership in the United States include

changing job conditions, deregulation, foreign competition, increased right-to-work

legislation, and an increasing use of temporary and contingent workers.

15-2b. Public-Sector Unionism

• Unions have historically been successful in the public sector (federal, state, and local

15-2c. Unions Fighting for Survival

• A number of unions have devised creative approaches to remain relevant and in the

public eye.

• To fight their decline, unions have tried to create partnerships with outside

organizations, protested for low-wage workers, and held work stoppages.

15-3. U.S. Labor Laws

• Several key labor laws have been enacted in the United States over the years.

15-3a. Early Labor Legislation

• Early in the 20th century, the Railway Labor Act (RLA) and the Norris-LaGuardia Act

fostered employees’ rights to form labor unions.

15-3b. Wagner Act (National Labor Relations Act)

• The Wagner Act established the rights of workers to organize free from management

interference.

Chapter 15: Union–Management Relations

• Protected concerted activities are actions taken by employees working together to try

to improve their pay and working conditions, with or without a union.

15-3c. Taft-Hartley Act (Labor Management Relations Act)

HR Competencies & Applications: Unfair Labor Practices

Key Competencies: Ethical Practice, Consultation; HR Expertise: Organization/Employee

Relations, Workplace/Employment Law Regulations

To protect union rights, the Wagner Act prohibited employers from committing unfair labor

practices. The Taft-Hartley Act prohibited labor unions from committing inappropriate labor

union actions against workers and companies.

1. What should companies do to reduce the chance of ULPs? Who should receive training

regarding these labor issues?

Students’ answers will vary. Companies should avoid the practices described in this

feature. All employees should receive training.

2. If the NLRB files a ULP charge against a company, what recourse does the company

have? How can the company respond if it believes that the ULP is without merit?

Students’ answers will vary. The NLRB investigates and resolves these charges. If

necessary, a company can go to court to fight the charge.

• The Taft-Hartley Act established an 80-day cooling-off period before a union can strike

Chapter 15: Union–Management Relations

• An open shop is an employer in which workers are not required to join or pay dues to a

union.

• A closed shop is an employer that requires individuals to join a union before they can

be hired.

• In states without right-to-work laws, three types of arrangements exist: union shops,

agency shops, and maintenance-of-membership shops.

15-3d. Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act)

15-3e Significant NLRB Activities and Rulings

• The NLRB is an appointed body whose members are nominated by the president of the

United States and confirmed by the Senate.

• Key rulings by the labor board include company policies on employees’ use of social

media, company policies on courteous or respectful behavior, company confidentiality

15-4. The Union Organizing Process

• The process begins in one of two ways: (1) a union targets an industry, a region, or a

company or (2) employees request union representation.

• The process is outlined in Figure 15-7.

Chapter 15: Union–Management Relations

Key Competencies: Communication, Ethical Practice, Relationship Management; HR

Expertise: Organization/Employee Relations, Workplace/Employment Law & Regulations

Employers can take numerous actions to prevent unionization. All managers and supervisors

must adhere to NLRB and other requirements to avoid unfair labor practices.

1. What are the advantages and disadvantages of hiring a “union buster” expert to assist if a

company is faced with a union organizing attempt?

Students’ answers will vary. The advantage is gaining specialists in combating

unionization efforts, making it more likely that the employer will win the representation

election. The disadvantages are the cost and the potential loss of favorable employee

opinion.

2. What recommendations would you give to line managers who are dealing with the

inevitable disagreements between employees who support the union and those who do

not? How can work unit dynamics and performance be affected during a union

organizing campaign?

Students’ answers will vary. Ban any fighting or arguing and treat both sides the same.

Production can drop if workers argue or fight.

15-4d. Certification and Decertification

• Official certification of a union as the legal representative for designated private-sector

employees is given by the NLRB.

15-4e. Contract Negotiation (Collective Bargaining)

15-5. Collective Bargaining Issues

Chapter 15: Union–Management Relations

• Issues can include management rights, union security, and dues checkoff.

15-5a. Management Rights

15-5b. Union Security

• Union security provisions are contract clauses to help the union obtain and retain

members and collect union dues.

15-5c. Classification of Bargaining Issues

• Collective bargaining issues can be mandatory, permissive, and illegal.

• Mandatory issues are negotiation topics and collective bargaining issues identified

Teaching Tip: Ask students to consider why the issues in Figure 15-11 are mandatory.

• Permissive issues are collective bargaining issues that are not required but might relate

Teaching Tip: Ask students to suggest examples of permissive and illegal issues.

15-6. Collective Bargaining Process

• The collective bargaining process has four stages: (1) preparation and initial demands, (2)

Chapter 15: Union–Management Relations

When Boeing and the International Association of Machinists (IAM) negotiated a new

contract, workers threatened to strike, and Boeing threatened to move production to a different

facility. In the end, the agreement was ratified.

1. How much weight do you think companies should put on tax and other incentives to

locate their operations in a particular state or city? Is it a good thing for taxpayers?

Students’ answers will vary. Incentives are commonly used to lure companies to a city or

state, which benefits both the company and the local population. The company gets

financial benefits. The local area benefits from the increase in available jobs and the

funds that the company spends in the area.

2. If you were a member of the IAM, how would you feel about the company’s threats to

move the jobs elsewhere? After settling the contract disputes, what would be your level

of loyalty and commitment to the company?

Students’ answers will vary. Employees might have felt threatened, afraid of losing their

income. After the dispute, employees might not feel as loyal to the company because the

company seemed to care more about the money than the people.

15-6f. Trends in Union–Management Negotiations

15-7. Union–Management Cooperation

15-7a. Employee-Involvement Programs

• Employee stock ownership plans (ESOPs) for union members have become popular.

Chapter 15: Union–Management Relations

Discussion Starter: Discuss the benefits of participating in an ESOP. For the employee, it’s

potential income. For the company, it aligns employees with other shareholders so they should

support the company’s goals.

15-8. Resolving Disputes

• A complaint is an indication of employee dissatisfaction.

15-8a. Grievance Procedures

15-8b. Steps in a Grievance Procedure

• Grievance procedures can vary based on the subject of negotiations in a collective

bargaining agreement.

Critical Thinking Challenges

1. Discuss the following statement: If management gets a union, it deserves one.

Answers will vary. Workers typically join unions when they are dissatisfied with how they

are treated by their employers and they believe unions can improve their work conditions.

2. Suppose a coworker just brought you a union leaflet urging employees to sign an

authorization card. What questions would you ask of the union supporter? What may

Chapter 15: Union–Management Relations

happen from this point on?

The process is illustrated in Figure 15-7. More specifically, however, several scenarios

might occur. First is the possibility that fewer than 30 percent of the eligible employees

3. As the HR manager, you have heard rumors about potential efforts to unionize your

warehouse employees. Use the Employment Law Information Network

(www.elinfonet.com/human-resources/Union-Avoidance) website to develop a set of

guidelines for supervisors if they are asked questions by employees about unionization as

part of a “union prevention” approach.

According to www.elinfonet.com/human-resources/Union-Avoidance, supervisors should

use the following guidelines:

• Direct the union representative to HR.

• Always have another supervisor with you if you have to speak to a union

4. Several states have limited public-sector union power. What are some reasons for

lawmakers taking this stand? What are the advantages and disadvantages of workers in the

public sector belonging to labor unions? How does this impact taxpayers?

Answers will vary. Public-sector employees work for the government. Many of their jobs

are important in the function of the government or the community. Strikes in these areas

5. There has been some discussion among the employees in your company’s insurance claims

processing unit about forming a union. Company management has asked you to research

existing labor agreements in the industry. You utilize the Department of Labor’s Office of

Labor-Management Standards website and access a collective bargaining agreement from

the Online Public Disclosure Room

(http://www.dol.gov/olms/regs/compliance/rrlo/lmrda.htm). You find the contract between

the American National Insurance Company and the United Food and Commercial

Workers. The UFCW is the union your employees are talking to, so you want to see how

they have worked with other employers. You review the contract and highlight points that

you think are interesting and notable.

A. Assess the management rights clause. Has the company retained important rights, or

does it appear that the union has substantial power to direct business operations? Are

there additional rights you think should be retained by the company? Has the union

included language to protect its own security and interests?

B. Evaluate the compensation and benefits that employees receive. Is paid time off

adequate or overly generous? Do employees receive generous retirement benefits?

What is your overall evaluation of how “tough” the union is likely to be if your

employees elect it as a representative?

Case: Interest in Student Unionization on the Rise

1. What are your opinions about the push for unionization among student athletes and

graduate students at private universities and colleges? Do you think they have a strong

case?

2. Do you think that unionization at private schools would create any unfair advantages with

regard to recruiting talented athletes and students? What should officials at public and

private schools do to mitigate some of these potential disparities?

Answers will vary. Some students may suggest that unionization at private schools can

influence team selection processes because of the bargaining power of unions. Union

Supplemental Cases

Driving Away the UAW

The case explores how a majority of employees at a Volkswagen plant in Chattanooga,

Tennessee, voted not to join the United Auto Workers. (For the case, visit MindTap® at

1. Under what circumstances might a company side with a union in its attempt to organize

employees? How would you, as an employee, feel if your employer supported you joining

a union?

2. What role should politicians and lawmakers play in union votes such as the one in

Chattanooga? Do lawmakers have a vested interest in the success of businesses within their

legislative territory?

Teamsters and the Fraternal Order of Police (FOP)

The case discusses how unions sometimes compete to represent workers and explores

experiences at the Denver Sheriff’s Department. (For the case, visit MindTap® at

1. Is it good or bad for one union to challenge another to represent these deputies? Why or

why not?

2. Is the Teamsters’ rough approach appropriate and legal under the circumstances?

3. If you were sheriff which union would you rather deal with? Is there a lesson there?

The Wilson County Hospital

The case deals with labor disputes in a unionized hospital. (For the case, visit MindTap® at

1. Discuss the hospital administrator’s refusal to bargain from both his viewpoint and a legal

viewpoint.

Chapter 15: Union–Management Relations

conducted here. As per the unfair labor practices, employers are prohibited from

2. If you were chairman of the board of directors for the hospital, what actions would you

suggest to deal with the problems present in the case?

Answers will vary. It would be a good idea to talk with the union representatives about the

Comments

The hospital administrator undoubtedly is still feeling bitter because of the union organizing

attempts. However, because the nurses’ union is the recognized bargaining agent for the nurses,

the administrator has an obligation under law to bargain in good faith with the employees. Each

case is, of course, decided on its own merits, but one would strongly suspect that an adamant

public statement like that made by Mr. Cohn would not qualify as good faith bargaining.

Chapter 15: Union–Management Relations

demands by making concessions on some working conditions and other operational matters.

Walmart and Union Prevention

This case covers Walmart’s efforts to stay nonunion. (For the case, visit MindTap® at

1. Describe the advantages and disadvantages of Walmart’s aggressive union prevention

efforts.

2. Go to http://walmartwatch.com and review some of the articles and blogs. Then identify

your view of the Watch’s efforts.

Extra Teaching Video

On the Job Video: Unite Here: Labor Unions

This short video will help reinforce key points and may prompt additional discussion from the

class.