🫂Human Resource Management Unit 3 – Collective Bargaining & Labor Relations

Key Concepts and Definitions

• Collective bargaining involves negotiations between an employer and a group of employees to determine conditions of employment, such as wages, working hours, and benefits
• A labor union is an organization that represents the collective interests of workers in negotiations with employers
• A collective bargaining agreement (CBA) is a written legal contract between an employer and a union representing the employees, which sets out the terms and conditions of employment
• Exclusive representation requires the union to represent all employees in the bargaining unit, regardless of whether they are union members
• Bargaining unit refers to a group of employees with similar interests who are represented by a union in collective bargaining
  • Bargaining units are typically defined by factors such as job classification, department, or location
• Unfair labor practices are actions taken by employers or unions that violate the National Labor Relations Act (NLRA)
• Strikes occur when employees collectively refuse to work in order to put pressure on the employer to meet their demands during collective bargaining
• Mediation involves a neutral third party who assists the employer and the union in reaching a mutually acceptable agreement

Historical Context of Labor Relations

• The Industrial Revolution in the late 18th and 19th centuries led to the growth of factories and the rise of labor unions to address poor working conditions and low wages
• The American Federation of Labor (AFL) was founded in 1886 as a national federation of trade unions, focusing on improving wages, hours, and working conditions
• The Congress of Industrial Organizations (CIO) was formed in 1935 to organize workers in mass production industries, such as automobiles and steel
• The National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act, guaranteed the right of private sector employees to organize into unions and engage in collective bargaining
  • The NLRA established the National Labor Relations Board (NLRB) to enforce the act and investigate unfair labor practices
• The Taft-Hartley Act of 1947 amended the NLRA, prohibiting certain union practices and providing a mechanism for the government to intervene in strikes that create national emergencies
• The AFL and CIO merged in 1955 to form the AFL-CIO, which remains the largest federation of unions in the United States
• The decline of union membership since the 1950s can be attributed to factors such as globalization, technological advancements, and changes in the legal and political environment

Legal Framework for Collective Bargaining

• The National Labor Relations Act (NLRA) is the primary federal law governing labor relations in the private sector
  • The NLRA grants employees the right to form and join unions, engage in collective bargaining, and participate in concerted activities for mutual aid and protection
• The National Labor Relations Board (NLRB) is an independent federal agency responsible for enforcing the NLRA
  • The NLRB conducts elections to determine whether employees want union representation and investigates and remedies unfair labor practices
• Unfair labor practices prohibited by the NLRA include interfering with employees' rights to organize, discriminating against employees for union activity, and refusing to bargain in good faith
• The Taft-Hartley Act of 1947 amended the NLRA to prohibit certain union practices, such as secondary boycotts and closed shops
• The Landrum-Griffin Act of 1959, also known as the Labor-Management Reporting and Disclosure Act (LMRDA), established a "bill of rights" for union members and imposed reporting and disclosure requirements on unions
• State laws, such as right-to-work laws, can also impact collective bargaining by prohibiting agreements that require employees to join a union or pay union dues as a condition of employment
• Public sector labor relations are governed by separate federal, state, and local laws, which may differ from private sector regulations

The Collective Bargaining Process

• The collective bargaining process typically begins when a union is certified as the exclusive representative of a bargaining unit through an NLRB-conducted election
• Preparation for bargaining involves the union gathering input from members to develop bargaining proposals and the employer assessing its financial situation and labor market conditions
• The bargaining process itself consists of a series of meetings between the union and employer representatives to negotiate the terms of the collective bargaining agreement
  • Proposals and counterproposals are exchanged until an agreement is reached or an impasse occurs
• Mandatory subjects of bargaining include wages, hours, and other terms and conditions of employment, while permissive subjects are those that the parties may agree to discuss but are not required to negotiate
• If an impasse is reached, the parties may engage in concerted activities, such as strikes or lockouts, to put pressure on the other side to reach an agreement
  • Mediation, fact-finding, and arbitration may also be used to help resolve impasses
• Once an agreement is reached, it is typically ratified by the union membership and signed by both parties
• The duration of a collective bargaining agreement can vary but is often between one and five years
• Reopener clauses allow the parties to renegotiate specific terms of the agreement during its duration, while evergreen clauses provide for the automatic renewal of the agreement unless either party gives notice of intent to terminate or modify it

Union Structure and Organization

• Unions are typically structured as local, national, or international organizations
  • Local unions represent workers in a specific geographic area or workplace, while national and international unions represent workers across multiple locations or industries
• The leadership structure of a union often includes elected officers, such as a president, vice president, secretary, and treasurer, as well as an executive board or committee
• Union stewards are elected or appointed representatives who serve as a link between the union leadership and the rank-and-file members in the workplace
  • Stewards often handle grievances, provide information to members, and enforce the collective bargaining agreement
• Union membership dues are used to fund the union's activities, such as organizing, bargaining, and political advocacy
• Union density refers to the percentage of workers in a particular industry or geographic area who are union members
• Unions may engage in various activities to increase their membership and bargaining power, such as organizing drives, political lobbying, and public relations campaigns
• Solidarity among union members is essential for effective collective action, as it allows the union to present a united front in negotiations with the employer

Negotiation Strategies and Tactics

• Distributive bargaining, also known as win-lose bargaining, involves each party trying to maximize its own gains at the expense of the other party
  • This strategy is often used when the parties have opposing interests and limited resources to distribute
• Integrative bargaining, also known as win-win bargaining, involves the parties working together to find mutually beneficial solutions that expand the available resources
  • This strategy is often used when the parties have shared interests and the potential for joint gains
• Interest-based bargaining focuses on identifying the underlying interests of each party and finding creative solutions that satisfy those interests, rather than focusing on positions
• Tactics used in negotiations may include anchoring (making an initial offer that sets the tone for the negotiation), concessions (offering to give up something in exchange for a gain), and deadline pressure (using time constraints to force a decision)
• BATNA (Best Alternative To a Negotiated Agreement) refers to the best option a party has if the current negotiation fails, and can be used as leverage in the bargaining process
• Effective communication, active listening, and emotional intelligence are important skills for successful negotiation
• The use of third-party neutrals, such as mediators or arbitrators, can help the parties overcome obstacles and reach an agreement

Contract Administration and Grievance Procedures

• Contract administration involves the ongoing process of implementing, interpreting, and enforcing the terms of the collective bargaining agreement
• The grievance procedure is a formal process outlined in the collective bargaining agreement for resolving disputes that arise during the contract term
  • Grievances typically involve alleged violations of the agreement, such as disciplinary actions, job classifications, or working conditions
• The grievance procedure usually consists of several steps, with each step involving progressively higher levels of union and management representatives
  • If the grievance is not resolved through the internal process, it may be referred to arbitration for a final and binding decision
• Arbitration is a process in which a neutral third party, selected by both the union and the employer, hears evidence and arguments from both sides and issues a decision
  • Arbitration decisions are generally binding and enforceable in court
• The union has a duty of fair representation to all members of the bargaining unit, which requires it to process grievances in a fair and non-discriminatory manner
• Effective contract administration requires ongoing communication and collaboration between union and management representatives to address issues before they escalate into grievances
• Training for supervisors and union stewards on the terms of the collective bargaining agreement and the grievance procedure can help prevent misunderstandings and ensure consistent application of the contract

Current Trends and Future Outlook

• Union membership in the United States has declined significantly since the 1950s, with the percentage of workers belonging to unions falling from a peak of 35% in 1954 to 10.3% in 2021
  • This decline is attributed to factors such as globalization, technological advancements, changes in the legal and political environment, and the shift from manufacturing to service-based industries
• Public sector union membership remains higher than private sector membership, with 33.9% of public sector workers belonging to unions in 2021, compared to 6.1% of private sector workers
• The gig economy and the rise of non-traditional employment relationships, such as independent contractors and temporary workers, present challenges for traditional union organizing and collective bargaining models
• Unions are increasingly focusing on organizing in growing industries, such as healthcare and technology, and among historically underrepresented groups, such as women and people of color
• The COVID-19 pandemic has highlighted the importance of worker health and safety, as well as the role of unions in advocating for protective measures and benefits for essential workers
• Unions are also adapting to new technologies, such as social media and online platforms, to engage with members and the public, and to support organizing and mobilization efforts
• The political and legal environment continues to shape labor relations, with debates over issues such as right-to-work laws, minimum wage increases, and labor law reform
• The future of labor relations will likely be influenced by ongoing economic, social, and technological changes, as well as the ability of unions and employers to adapt to these challenges and find innovative solutions to meet the needs of workers and businesses