Union/Management Relations

Chapter 16: Union/ Management Relations 28
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.
 Identify several reasons for the decline in union

membership.
 Explain the nature of each of the major U.S. labor

laws.
 Discuss the stages of the unionization process.
 Describe the typical collective bargaining process.
 Define grievance and identify the stages in a

grievance procedure.
CHAPTER 16: UNION/MANAGEMENT RELATIONS
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.
Why employees unionize is discussed. The two primary reasons are

dissatisfaction with how they are treated by their employers and the
belief that unions can improve their work situations. Why employers
resist unions is also discussed.
Globalization of unions is explored by looking at union membership

29 Chapter 16: Union/ Management Relations
globally, global labor organizations, and U.S. and global unionization

differences. Union membership in the U.S. has been declining since the
mid-1940s when over 30% of the workforce was unionized, to the
present level of less than 12 %. The public sector is one area where
union membership has been growing. Among factors accounting for this
decline are 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 non-union alternatives. Also,
geographic, industrial, and workforce changes 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.
The next section 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”: (1) the Wagner Act, (2) the Taft-Hartley Act, and (3) the
Landrum-Griffin Act. The Civil Service Reform Act of 1978 regulates
public sector union-management relations at the federal level. Proposed
legislation is also discussed.
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 security.
The classification of bargaining issues as mandatory, permissive, and
illegal is also covered. Next, the collective bargaining process is traced
through four stages: preparation and initial demands, continuing
negotiations founded on good faith efforts, and settlement or impasse,
and strikes and lockouts. 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 and Instructor Notes

Suggested Content Coverage
A union is a formal association of workers that promotes the interest of its members
through collective action. An economic look at labor unions sees “two faces.” The “good
face” gives employees a “voice” and the “bad face” emphasizes the negative effects that
union wages can have on allocation of resources, profitability, and productivity. Although
fewer workers have chosen to be union members than in the past, employers and HR
professionals must have an understanding of the complex system of laws, regulations, court
decisions, and administrative rulings related to the nature of unions.
I. UNIONS: EMPLOYEE AND MANAGEMENT PERSPECTIVES
Unions continue to follow the goals of increasing compensation, improving working

conditions, and influencing workplace rules. In the U.S. when a union is present, working
conditions, pay, and work rules are determined through collective bargaining and designated
in formal contracts.
A. Why Employees Unionize - Research reveals that employees join unions for two
primary reasons: (1) they are dissatisfied with how they are treated by their employer
and (2) they feel the union can improve their work situations. Figure 16-1 shows that
the major factors that can trigger unionization are compensation, working conditions,
management style, and employee treatment issues. Management is the primary
determinant of whether employees choose to unionize or not. If management treats
employees as valuable human resources, then employees generally feel no need for
outside representation. Antidotes for unionization efforts include providing
competitive compensation, good working environments, effective management and
supervision, and fair and responsive treatment of workers.
HR Headline: Business vs. Labor – Right to Work Laws

Under state “right to work” laws, union membership is not required to get a job and
employees can choose not to join the union even if the company is unionized. Michigan is
not a “right to work” state but business in Michigan has argued that the strong union
tradition was part of the state’s economic problem, and that making Michigan a right-to-
work state would send a message that they are “open for business.” Unions, of course,
disagree. The fact that the idea of right-to-work would even be considered in Michigan
shows how much power unions have lost in the last decade and a half.
Questions for Discussion:

1. Do you think that “right-to-work” laws are a good idea? Why or why not?
2. Do you think union membership will continue to decrease in the next five years?
Explain.
3. Would you consider joining a union? Why or why not?
B. Why Employers Resist Unions - Employers usually would rather not have to deal with
unions because doing so constrains what managers can and cannot do in a number of
areas. Some employers pursue a strategy of good relations with unions. Others may
choose an aggressive, adversarial approach.
1. HR Responsibilities with Unionization – The pattern of dealing with unionization

varies among organizations. In some organizations, operating management handles
labor relations and HR has limited involvement. In other organizations, the HR
unit takes primary responsibility for resisting unionization or dealing with
unionized employees.
II. UNIONS GLOBALLY
The ability of one country to create jobs and attract investment can be affected by their
union bargaining arrangements and their labor laws. As the world economy becomes more
integrated, unions worldwide are facing changes.
A. International Union Membership – The percentage of union membership varies

significantly from country to country. From highs in the Scandinavian countries near
50% to Europe’s roughly 10-30%. Union membership is falling in many advanced
countries, but collective bargaining is set in law as the way wages are determined in
Europe. In some countries, unions either do not exist at all or are relatively weak. In
other countries, unions are closely tied to political parties. Some countries require
that firms have union or worker representatives on their boards of directions. This
practice, called co-determination, is common in European countries. Recent labor
reform regulations in China are leading to increased union and worker
representation in the management of Chinese-owned factories. See the HR
Perspective: Unions in China.
HR Perspective: Unions in China

Recent labor reform regulations in China are leading to interesting changes in unions in
China. China presented a draft labor law and received over 200,000 comments from
Chinese citizens as well as business groups and international labor groups. Labor groups
felt there was a need for worker protection and business groups were concerned the new
law will raise costs and give them less flexibility to hire and fire as necessary. China wanted
the new law to bring more order to the workplace as the private sector continues to grow
and many workers lack contracts, do not get paid on time, and have little chance for
advancement. In China, the All China Federation of Trade Unions has long been criticized
by international labor leaders as being more aligned with the communist government than
with the workers. That “official union,” however, has begun aggressively to unionize
multinational companies. Observers note that the success of the new law will depend on
how vigilant the government will be in enforcing it.

1. Do you think union membership in China will increase in the next five years? Why or
why not?
2. Why do you think that a company like Wal Mart in China has been open to
unionization of its Chinese stores?
3. Do you think the Chinese government will be vigilant in enforcing the new Chinese
labor reforms? Why or why not?
LOGGING ON: Cornell Global Labor Institute – provides information and projects on
union efforts to strengthen the response to globalization challenges –
www.ilr.cornell.edu/globallaborinstitute
B. Global Labor Organizations - The International Labour Organization, based in

Switzerland, coordinates the efforts of labor unions worldwide and has issued some
principles and rights at work. Unions are also linking up as part of global labor
federations. The Union International Network (UIN) is an entity composed of unions
from numerous countries. U.S. unions are being very active in these global entities.
C. U.S. and Global Differences – The union movement in the U.S. has been characterized
by some approaches different from those used in other countries. In the U.S. the key
emphases have been the following:
 Economic issues – in other countries activism and political power are equal
concerns
 Organization by kind of job and employer – in other countries, national unions
bargain with the government or with employer groups
 Collective agreements as “contracts” – in other countries, the agreements are
made with the government and employers, sometimes for only one year
because of political and social issues
 Competitive relations – in many other countries, “tripartite” bargaining occurs
between the national government, employers’ associations, and national labor
federations
III. UNION MEMBERSHIP IN THE UNITED STATES
There has been a marked decline in union memberships over the past several decades. As
shown in Figure 16-2, unions represented more than 30% of the workforce from 1945
through 1960, but by 2009 represented less 12.4% of civilian workers. When unionized
government employees are excluded, unions represent only 7.4% of private-sector
workforce.
A. Reasons for U.S. Union Membership Decline – Several factors have contributed to the
decline of unions: 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 the nonunion alternative. Also, management has taken a
more activist stance against unions than during the previous years of union growth, and
economic downturns also have negative impacts. As a result of union activism in the
political arena, most workers now have laws giving them protection and benefits not
previously available. Ironically, this makes unions less necessary for many employees.
1. Geographic Changes – In recent years, job growth in the United States has been
greatest in states located in the South, Southwest, and Rocky Mountains. Most of
these states have “employer-friendly” laws, little tradition of unions, and relatively
small percentages of unionized workers. Another issue involves the movement of
many lower-skill jobs outside the United States to take advantage of cheaper labor
available in other countries. A major impetus for moving low-skill, low-wage jobs
to Mexico was the passage of the North American Free Trade Agreement
(NAFTA). An overall result of NAFTA has been that jobs that otherwise could
lead to unionization and the growth of unions have been out of the reach of U.S.
unions.
2. Industrial Changes - The shift in U.S. jobs from industries such as manufacturing,
construction, and mining to services industries is another cause for the decline of
unions. Figure 16-3 reveals that non-governmental union members are heavily
concentrated in transportation, utilities, and other industrial jobs; areas where
employment is declining compared to such areas as financial services and

wholesale/retail industries. In summary union membership is primarily
concentrated in the shrinking part of the economy and unions are not making in-
roads into the fastest growing segments.
3. Workforce Changes - Workforce and economic changes have contributed to the

decline in union representation of the labor force. The primary growth in jobs in
the U.S. has been in technical, financial, and other services areas. However, unions
face a major difficulty in organizing white-collar workers because these workers
see unions are resistant to change and not in touch with the concerns of the more
educated workers.
The growing percentage of women in the U.S. workforce presents another

challenge to unions, given that unions have not been as successful in organizing
women workers as they have in organizing men. Women in "pink-collar" and
lower-skilled, service jobs have been somewhat more likely to join unions than
women working in other white collar jobs.
B. Public-Sector Unionism - Unions have had some measure of success in organizing

public-sector employees, particularly with state and local government workers. The
government sector is the most highly unionized part of the U.S. workforce.
Unionization of state and local government employees presents some unique problems
and challenges. First, many unionized local government employees are in critical
service areas such as police, fire fighting, and sanitation. Consequently, over 30 states
have laws prohibiting public employee work stoppages. These laws also specify how
work-related issues will be resolved without strikes. In the federal government, past
executive orders and laws established methods of labor-management relations that
consider the special circumstances of federal employment.
C. Union Targets for Membership Growth - To counteract the overall decline in union
membership, unions are targeting a number of industries and types of workers. Seven
unions split from the AFL-CIO federation and formed the Change to Win Federation
(CRWF) with a goal of taking a more aggressive approach to organizing employees in
the retail, hospitality, home health care, and other service industries.
1. Professionals - While professionals in many occupations have been skeptical of the

advantages of unionization, some professionals who have turned to unionization
include engineers, physicians, nurses, and teachers. A frequent complaint of health-
care professionals is that they have lost control of patient-care decisions as a result
of managed care and the spreading drive to reduce health-care costs. These
complaints have led more health-care professionals to join unions.
2. Low-Skill Workers - typically have lower-paying, less desirable jobs and are
relatively dissatisfied. Janitors, building cleaners, nursing home aides, and
meatpacking are examples. Many of these individuals also are immigrants, a target
of recent union organizing efforts.
3. Contingent and Part-Time Workers - Unions have tried to unionize part-time,

temporary and other employees, aided in part by an NLRB decision that allows
temporary workers to be included in firms to be represented by unions.
IV. UNIONS IN THE UNITED STATES
A. Historical Evolution of U.S. Unions - The union movement in the United States began
with early collective efforts by employees to address job concerns and counteract
management power. As early as 1794, shoemakers organized a union, picketed and
conducted strikes. However, this movement received little initial support from courts in
the United States.
In 1886, the American Federation of Labor (AFL) was formed as a federation of

independent unions for purposes of organizing skilled craft workers and emphasizing
such bread-and-butter issues as wages and working conditions. However, it wasn’t
until 1938 with the formation of the Congress of Industrial Organizations (CIO), that
a labor organization focused on semiskilled and unskilled workers that were prevalent
in the emerging mass-production industries. Years later, the AFL and CIO merged to
form one coordinated federation, the AFL-CIO.
LOGGING ON: AFL-CIO – provides union movement information – www.aflcio.org
B. Union Structure - While there are many different kinds of unions, two basic types
developed over time: craft unions and industrial unions. A craft union is one whose
members do one type of work, often using specialized skills and training, such as
electricians. An industrial union includes many persons working in the same industry
or company, regardless of jobs held.
1. AFL-CIO Federation - The broadest level of union structure is the federation,

which is a group of autonomous national and international unions. The most
prominent federation in the U.S. is the AFL-CIO, which is a confederation of
national and international unions.
2. Change to Win – Seven unions left the AFL-CIO to form this federation.
Prominent unions in the CtW are the Teamsters, the Service Employees
International Union, and the United Food and Commercial Workers.
3. National and International Unions – are autonomous from their affiliated

federation. They collect dues, have their own governing board, and issue
specialized publications. Examples of national unions include the United Steel
Workers and the American Federation of State, County, and Municipal Employees.
They also help maintain financial records and provide a base from which additional
organization drives may take place. Like companies, unions find strength in size.
In the past several years, about 40 mergers of unions have occurred, and a number
of other unions have considered merging.
4. Local Unions - may be centered around a single employer or around a particular

geographic area. Officers are elected by the local union membership. Local unions
typically have business agents and union stewards. A business agent is a full-time
official employed by the union to operate the union office and assist union
members. A union steward is an employee of a firm or organization who is
elected to serve as the first-line representative of unionized workers
V. UNION-RELATED LABOR LAWS
There is historical evidence that management developed practices calculated to prevent

workers from organizing and engaging in collective bargaining. The federal government has
taken action over time to both hamper and protect unions.
A. Early Labor Legislation – Beginning in the late 1800’s federal and state laws related to
unionization was passed.
1. Railway Labor Act (RLA) – This act, passed in 1926, represented a shift in
government regulation toward encouraging companies and unions to work out
their differences through collective bargaining. It gave railroad employees “the
right to organize and bargain collectively through representatives of their own
choosing.” In 1936, provisions of the act were extended to cover the airline
industry. Some experts believe that some of the labor relations problems in the
airline industry stem from the complex and cumbersome provisions of the RLA.
2. Norris-LaGuardia Act - Enacted in 1932, this act blunted industry’s ability to

obtain injunctive relief to thwart unionization efforts. This act guaranteed workers
some rights to organize and restricted the issuance of court injunctions in labor
disputes
3. The Next Stage - The economic crisis of the early 1930s and the restrictions on
workers’ ability to organize into unions led to the passage of landmark labor
legislation. Later, other pressures and issues resulted in additional legislation
affecting labor-management relations. Three major acts comprise what has been
labeled the “National Labor Code”: (1) the Wagner Act, (2) the Taft-Hartley Act,
and (3) the Landrum-Griffin Act. Figure 16-4 shows each segment of the code
and identifies the primary focus of each act.
B. Wagner Act (National Labor Relations Act) - was an outgrowth of the Great
Depression and is acknowledged to be pro-union. In effect, this act established that the
official policy of the U.S. government was to encourage collective bargaining.
Specifically, it established the right of workers to organize unhampered by management
influences.
1. Unfair Labor Practices - To protect union rights, this act prohibited employers
from undertaking five specific unfair labor practices:
 Interfering with, restraining, or coercing employees in the exercise of their
rights.
 Dominating or interfering with the administration of a union.
 Encouraging or discouraging employee membership in a union.
 Discriminating in any manner with an employee who filed charges, or gave
testimony, under the law.
 Refusing to bargain collectively with representatives of the employees.
2. National Labor Relations Board (NLRB) – The Wagner Act established the NLRB
as an independent entity to enforce the provisions of the Wagner Act and
subsequent labor relations acts. Primary functions of the NLRB include
conducting unionization elections, investigating complaints by employers or
unions through the fact-find process, issuing opinions on its findings, and
prosecuting violations in court. The five members of the NLRB are appointed by
the President of the United States and confirmed by the U.S. Senate.
LOGGING ON: National Labor Relations Board – provides information on workplace

rights and other issues – www.nlrb.gov
C. Taft-Hartley Act (Labor Management Relations Act) – was passed in 1947 to answer
the concerns of many who felt that unions had become too strong. Viewed as a pro-
management act, it amended the Wagner Act. While retaining the rights of unions and
workers, it imposed obligations that included a series of unfair labor practices similar to
those prohibited by management. Coercion, discrimination against non-union
members, refusing to bargain, excessive membership fees, and other practices were
forbidden by unions. The act also established the Federal Mediation and Conciliation
Service (FMCS) as an agency to help management and labor settle labor contract
disputes.
1. National Emergency Strikes - The Taft-Hartley Act also allows the President of the
United States to declare that a strike presents a national emergency strike that
would impact the national economy significantly.
2. Right-to-Work Provision - Section 14(b) of the Taft-Hartley Act allows states to

enact laws that restrict compulsory union membership. State right-to-work laws
prohibit both the closed shop and union shop and may ban the agency shop as well.
An open shop is when workers are not required to join or pay dues to a union.
Open shops exist in states with right-to-work laws. Figure 16-5 indicates the
states with right-to-work laws.
The Taft-Hartley Act prohibits closed shops (except in construction-related

occupations), but permits both union shops and agency shops. A closed shop is a
firm that requires individuals to join a union before they can be hired.
The following types of arrangements may exist in non-right-to-work states:

 Union shop. Requires that individuals join the union, usually 30 to 60 days
after being hired.
 Agency Shop. Requires employees who refuse to join the union to pay
amounts equal to union dues and fees in return for the union's representation
services.
 Maintenance-of-membership shop. Requires workers to remain members of
the union for the period of the labor agreement.
D. Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) – passed in

1959 is the third segment of the National Labor Code. The law was aimed at
protecting individual union members against union corruption. Safeguards built into
this act include: unions must have bylaws, financial reports must be made, union
members have a bill of rights, and the Secretary of Labor will act as a watchdog of
union conduct. The democratic process for electing union officers and approving labor
contracts is also protected.
E. Civil Service Reform and Postal Reorganization Acts - Passed as part of this act, the
Federal Service Labor Management Relations statute made major changes in how the
federal government deals with unions, including areas that are and are not subject to
bargaining. At the federal level wages and benefits are not subjects for bargaining;
instead they are set by congressional action, not union negotiations. The Act established
the Federal Labor Relations Authority (FLRA) to oversee and administer union-
management relations in the federal government and to investigate unfair practices in
union organizing efforts. A related act, the Postal Reorganization Act of 1970
established the U.S. Postal Service as an independent entity, prohibited postal workers
from striking, and established a dispute resolution process.
F. Proposed Legislation - Other laws have been proposed. One would bar companies from
replacing workers who go on strike. The “Employee Free Choice Act” would allow
unions to sign up workers and become recognized without an election. Also, the
proposed law would require a contract be negotiated within a certain time period or a
contract can be imposed by an arbitrator. The proposed legislation has spawned
considerable concern among businesses.
VI. UNIONIZATION PROCESS
The typical union organizing process is outlined in Figure 16-6. The two primary ways in
which the process of unionizing an employer may begin are: (1) union targeting of an
industry or company, or (2) employee requests. The logic for targeting is that if the union is
successful in one firm or a portion of the industry, then many other workers in that industry
will be more willing to consider unionizing. The second impetus for union organizing
occurs when individual workers in an organization contact a union and express a desire to
unionize.
A. Organizing Campaign – A union usually mounts an organizing campaign to persuade

individuals to support its efforts.
1. Employers’ Union Prevention Efforts –Some employers hire expert consultants who
specialize in combating unionization efforts. Union prevention efforts that may be
conducted by consultants or done by management and outside labor attorneys
include: holding mandatory employee meetings; distributing anti-union leaflets and
mailing anti-union letters to employees’ homes, and providing and using anti-union
videos, emails, and other electronic means.
Many employers have a written “no-solicitation” policy to restrict employees and

outsiders from distributing literature or soliciting union membership on company
premises. The policy should be a long-term, established approach, not a single
action taken to counter a specific and immediate unionization attempt.
2. Unions’ Organizing Efforts – 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. Unions organizing
and negotiating successes are tied to the economy and economic trends. For
examples, see the HR Perspective: Good Times, Bad Times.
HR Perspective: Good Times, Bad Times

Employees join unions when they feel that unions can improve their lots in life. Although
union membership has been dropping, the point at which unions might be able to
improve more employees’ lots in life might reappear. Due to the economic downturn
more jobs are freelance and temporary with little or no benefits. However, looking into
the future it is possible to see better times for labor. In a decade retirement of the baby
boomers could cause labor shortages as could recovery from the recession. Also, the idea
of loyalty to a n employer is effectively gone in many places and the mechanism for
labors return remain intact – waiting for better times.

1. Do you agree that union membership will increase at the end of the decade? Why or
why not?
2. Do you think national health-care benefits will help or hurt union efforts? Explain.
3. Do you think younger workers are more or less favorable to unions? Explain.
To encourage individuals to become involved in unionization efforts, unions have

adopted electronic means, such as establishing Websites where interested workers
can read about benefits of unionization. Unions sometimes pay organizers to
infiltrate a targeted employer and try to organize workers. In this practice, known
as salting, the unions hire and pay people to apply for jobs at certain companies;
when the people are hired, they begin union organizing efforts. The U.S. Supreme
Court has ruled that refusing to hire otherwise qualified applicants, even if they are
also paid by a union, violates the Wagner Act.
B. Authorization Cards – A union authorization card is a card signed by an employee to

designate a union as her or his collective bargaining agent. Unions have been
advocating changing laws so that elections are not needed if over 50% of the eligible
employees sign authorization cards. Some employers have agreed to recognize the
union if a majority of workers signs authorization cards. Currently, the NLRB requires
that at least 30% of the employees in the targeted group must sign cards before a
certification election will be held. 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
he or she would like the opportunity to vote on having one.
C. Representation Election – An election to determine if a union will represent the
employees is supervised by the NLRB for private-sector organizations and by other
legal bodies for public-sector organizations.
1. Bargaining Unit – Before the election is held, the appropriate bargaining unit must
be determined. A bargaining unit is composed of all employees (union and non-
union) eligible to select a single union to represent and collectively bargain for
them. Eligibility, according to the NLRB, hinges on a “community of interest”
among employees with respect to wages, hours, working conditions, and other
factors that constitute their working relationships.
2. Supervisors and Union Ineligibility – Provisions of the National Labor Relations

Act exclude supervisors from being included in bargaining units for unionization
purposes, except for industries covered by the Railway Labor Act. While it is not
always clear who qualifies as a supervisor, the NLRB uses a detailed definition
that identifies a supervisor as any individual with authority to hire, transfer,
discharge, discipline, and use independent judgment with employees.
3. Election Unfair Labor Practices – Both the Wagner Act and the Taft-Harley Act
place restrictions on the pre-election activities of employers and unions. Once
unionizing efforts begin, all activities must conform to the requirements
established by applicable labor laws. Both management and the union must adhere
to those requirements, or the results can be appealed to the NLRB and
overturned. The HR On-the-Job highlights do’s and don’ts managers must be
aware of during unionization efforts.
HR On-the-Job: Unionization Do’s and Don’ts for Managers

Things that employers can legally do: 1) Tell employees how current wages/benefits
compare to other firms; 2) Tell employees why the employer opposes unionization; 3) Tell
employees the disadvantages of having a union; 4) Show employees articles about
unions/relate negative experiences elsewhere; 5) Explain the unionization process to
employees; 6) Forbid distribution of union literature during work hours in work areas; 7)
Enforce disciplinary policies/rules consistently and appropriately. Things that employers
cannot do legally: 1) Promise employees pay increases or promotions if they vote against
the union; 2) Threaten to close down/ move the company; 3) Spy on union meetings; 4)
Make a speech to employees at work within 24 hours of the election; 5) Ask employees
how they plan to vote or if they have signed cards; 6) Encourage employees to persuade
others to vote against the union; 7) Threaten employers with termination or disciplining
union-advocate employees

1. What do you think are the two most effective things that employers can do to prevent
unionization? Why?
2. What do you think are the reasons that most employees join a union? Explain.
3. Do you think it is a good idea for an employer to hire an outside consultant if
employees try to unionize?
4. Election Process – In order to win an election, the union must receive votes from a
majority of those voting in the election. In the past few years, unions have won
slightly more than half of the elections. In the event either side believes that unfair
labor practices were used by the other side, the election results can be appealed to
the NLRB which may order a new election. Where there is no appeal of an
election won by the union, the union will be granted certification by the NLRB.
D. Certification and Decertification – Official certification of a union as the legal

representative for designated private-sector employees is given by the NLRB, or for
public-sector employees by an equivalent body. Once certified, the union is free to
undertake good faith negotiations with the employer in an attempt to reach an
agreement. The employer must bargain; refusing to bargain with a certified union is an
unfair labor practice.
Decertification is a worker-initiated election process whereby a union is removed as

the representative of a group of employees. Employees attempting to oust a union
must obtain decertification authorization cards signed by at least 30% of the employees
in the bargaining unit before an election may be called. If a majority of those voting in
the election want to remove the union, the decertification effort succeeds.
E. Contract Negotiation (Collective Bargaining) - Collective bargaining, the last step in

unionization, is the process whereby representatives of management and workers
negotiate over wages, hours, and other terms and conditions of employment. It is a
give-and-take process between representatives of two organizations for the benefit of
both. The power relationship in collective bargaining involves conflict, and the threat
of conflict is an important aspect of collective bargaining. Union-management
relationships can follow one of several patterns. Figure 16-7 shows the relationship as
moving from conflict to cooperation. Collusion, at the extreme opposite end from
control, is illegal.
LOGGING ON: LaborNet – describes unions, news, legislation, and upcoming union
events – www.labornet.org
VII. COLLECTIVE BARGAINING ISSUES
There are a number of different issues addressed during collective bargaining. Two of the
most important are management rights and union security.
A. Management Rights – clauses are contained in virtually all labor contracts.

Management rights are those rights reserved to the employer to manage, direct, and
control its business. By including such a provision, management is attempting to
preserve its unilateral right to decide or make changes in any areas not identified in a
labor contract.
B. Union Security – Union security provisions are contract clauses to help the union
obtain and retain members. A growing type of union security in labor contracts is the
no-layoff policy, or job security guarantee.
1. Union Dues Issues - One union security provision is the dues checkoff which
provides that union dues will be deducted automatically from the payroll checks of
union members.
2. Types of Required Union Membership - Another form of union security results

from requiring union membership of all employees, subject to state right-to-work
laws. While the closed shop is illegal, except in limited construction-industry
situations, other types of arrangements such as union shops, agency shops, and
maintenance-of-membership may be negotiated.
C. Classification of Bargaining Issues - The NLRB has defined bargaining issues in three
ways - mandatory, permissive, and illegal.
1. Mandatory Issues – Mandatory issues are those that are identified specifically by
labor laws or court decisions as being subject to bargaining. They most often
relate to wages, benefits, nature of jobs, and other work-related subjects.
Mandatory subjects for bargaining now include such topics as employee dis-
charges, job security, grievances, work schedules, union security and dues check-
off, retirement and pensions, vacations, Christmas bonuses, rest and lunch-break
rules, safety rules, profit-sharing, and required physical examinations.
2. Permissive Issues – Permissive issues are those that are not mandatory but relate
to certain jobs. Examples include benefits for retirees, product prices for
employees, and performance bonds.
3. Illegal Issues – Illegal issues are those that require either party to take illegal
action, such as giving preference to individuals who have been union members
when hiring employees.
VIII. COLLECTIVE BARGAINING PROCESS
The collective bargaining process is made up of a number of stages: preparation and initial
demands, negotiations, settlement or impasse, and strikes and lockouts.
A. Preparation and Initial Demands – Both labor and management spend time preparing
for negotiations by gathering and analyzing employer and industry data concerning
wages, benefits, working conditions, management and union rights, productivity and
absenteeism. Typically, bargaining includes initial proposals of expectations by both
sides. The amount of rancor or calmness exhibited may set the tone for future
negotiations between the parties.
1. Core Bargaining Issues – are wages, benefits, and working hours and conditions.
Union wages and benefits are usually higher than non-unionized firms. Figure 16-
8 shows median earnings for union and non-union workers.
B. Continuing Negotiations – After opening positions have been taken, each side attempts
to determine what the other side values highly so the best bargain can be struck.
Trade-offs occur with each side determining exactly what to keep and what to give up.
1. Good Faith – Provisions in federal law require that both employers and union
bargaining representatives negotiate in good faith. In good-faith negotiations, the
parties agree to send negotiators who can bargain and make decisions, rather than
people who do not have the authority to commit either group to a decision.
Meetings must be scheduled at reasonable times and some give-and-take
discussions also must occur.
C. Settlement and Contract Agreement – After an initial agreement, the bargaining parties
usually return to their respective constituencies to determine if the informal agreement
is acceptable. Ratification of the labor agreement is based upon the union members
vote to accept the terms of the negotiated agreement. The agreement also contains
language on the duration of the contract. Figure 16-9 lists typical items in labor
agreements.
D. Bargaining Impasse - occurs when labor and management do not reach agreement on
the issues. If an impasse occurs the disputes can be taken to conciliation, mediation, or
arbitration.
1. Conciliation and Mediation – At times of an impasse, an outside party such as the

Federal Mediation and Conciliation Service may aid the two deadlocked parties to
continue negotiations and arrive at a solution. Conciliation is an attempt to keep
union and management negotiators talking so that they can reach a voluntary
settlement. Mediation is a process by which a third party helps the negotiators
reach a settlement. Sometimes, fact-finding helps to clarify the issues of
disagreement as an intermediate step between mediation and arbitration.
2. Arbitration – Arbitration is the process that uses a neutral third party to make a
decision. “Interest” arbitration is used to solve bargaining impasses primarily in the
public sector. However, this type of arbitration is not frequently used in the
private sector, because companies generally do not want an outside party making
decisions about their rights, wages, benefits, and other issues. On the other hand,
grievance, or “rights,” arbitration is used extensively in the private sector as the
final step in a grievance-arbitration procedure.
E. Strikes and Lockouts - occur as last resort actions by a union, or an employer, when a
labor dispute cannot be resolved through negotiation. During a strike, union members
refuse to work in order to put pressure on an employer to settle. In a lockout,
management shuts down company operations to prevent union members from working.
1. Types of Strikes – The following types of strikes can occur:

 Economic strikes happen when the parties fail to reach agreement during
collective bargaining.
 Unfair labor practice strikes occur as a union protest over what it claims to
be illegal employer actions such as refusal to bargain.
 Wildcat strikes occur during the life of the collective bargaining agreement by
employees striking without union authorization. Strikers can be discharged or
disciplined.
 Jurisdictional strikes occur when one union’s members walk out to force an
employer to assign work to them instead of to another union.
 Sympathy strikes express one union’s support for another involved in a
dispute, even though the first union has no disagreement with the employer.
Work stoppages due to strikes and lockouts are relatively rare, in part because of
the decline in union power. In addition, management has shown its willingness to
hire replacements, and some strikes have ended with union workers losing their
jobs.
2. Replacement of Workers on Strike - Management has always had the ability to

simply replace workers who struck, but the option was not widely used. Workers’
rights to reinstatement following settlement vary depending upon the type of
strike. For example, in an economic strike, an employer is free to replace striking
workers. With an unfair labor practices strike, workers who want their jobs back
must be reinstated at the end of the strike.
LOGGING ON: Federal Mediation & Conciliation Service – provides services and
resources to promote stable labor and management relationships – www.fmcs.gov
IX. UNION/MANAGEMENT COOPERATION

The adversarial relationship that exists between unions and management may lead to strikes
and lockouts. However, there is a growing recognition that cooperation between
management and labor unions is essential if organizations are going to compete in a global
economy. The HR Perspective: Union Helps Cut Costs at Ford describes such a relationship
HR Perspective: Union Helps Cut Costs at Ford

Like the other U.S. auto companies, Ford found itself behind the Asian companies. Ford
showed their union how big the cost gaps were and the UAW allowed local unions to tear
up existing contracts and negotiate new rules. The talks got into many areas, some very
sensitive, like absenteeism rates. The rates at Ford had been double the rates of Toyota.
Negotiated changes included capping the number of absences, outside contractors to
handle some jobs at one half the pay, outside companies to repair equipment, and four day
10 hour work weeks including weekends without overtime. As a result, when GM and
Chrysler both had to declare bankruptcy, Ford alone continued on as before.

1. Why do you think Ford was successful in working with the UAW when GM and
Chrysler were not?
2. Why do you think Ford employees had such a large number of absences compared to
the Japanese companies?
3. As Ford’s profits increase, do you think the work rules will change back to the way
they were before the changes? Why or why not?
A. Employee Involvement Programs - Some decisions by the National Labor Relations

Board appear to deter union-management cooperation. Prohibitions built into the
Wagner Act against employer-dominated unions, while successful in eliminating sham
“company unions,” have in recent years been applied to employee involvement
programs. At times, the use of teams of employees in non-union situations has been
held to be a violation of the Wagner Act under the “company union” proviso. One key
to decisions allowing employee involvement committees seems to be that these entities
not deal directly with wages, hours, and working conditions. Also, the committees
should be composed primarily of workers and they should have broad authority to
make operational suggestions and decisions.
B. Unions and Employee Ownership – Unions in some situations have encouraged

workers to become partial or complete owners of the companies that employ them.
This may be done by assisting members in putting together employee stock ownership
plans. These efforts have often been spurred by concerns that firms were preparing to
shut down, merge, or be bought out, resulting in a cut in the number of workers. Some
in the labor movement fear that such programs may undermine union support by
creating a closer identification with the concerns and goals of employers, instead of
“union solidarity.”
X. GRIEVANCE MANAGEMENT
Unions know that employee dissatisfaction can be a source of trouble, whether it is

expressed or not. It is important that employees have an outlet to seek resolution of their
complaints and grievances. A complaint is an indication of employee dissatisfaction that has
not been submitted in writing. If the employee is represented by a union and submits their
dissatisfaction in writing for formal resolution, the complaint is known as a grievance.
Without a grievance procedure, management may be unable to respond to employee
concerns because managers are unaware of them.
A. Grievance Responsibilities - Figure 16-10 shows a typical division of responsibilities

between the HR unit and the line managers for handling grievances. Managers must
accept the grievance procedure as a possible constraint on their decisions.
B. Grievance Procedures – Grievance procedures are formal communication channels

designed to settle a grievance as soon as possible after the problem arises. While first-
line supervisors are usually closest to a problem, supervisory involvement presents
some problems in solving a grievance at this level. To receive the appropriate
attention, grievances go through a specific process for resolution.
1. Union Representation in Grievance Procedures – A unionized employee generally

has a right to union representation if management is questioned by management
and if discipline may result. If these so-called Weingarten rights are violated, the
employee will be reinstated with pay. The NLRB recently issued a decision
extending these rights to non-union members in disciplinary situations. This
decision has been appealed to higher courts and may be overturned.
C. Steps in a Grievance Procedure - Grievance procedures can vary in the number of steps
included. Figure 16-11 shows a typical grievance procedure. If the grievance remains
unsettled after the first step, representatives from both sides would continue to meet to
resolve the conflict. Very few grievances reach the highest level, but if still not solved,
the grievance goes to arbitration.
Grievance arbitration is a means by which disputes arising from different

interpretations of a labor contract are settled by a third party. The U.S. Supreme
Court has ruled that grievance arbitration decisions issued under labor contract
provisions are enforceable. The most prevalent disputes taken to grievance arbitration
are those dealing with discipline and discharge, safety and health, and security issues.
CRITICAL THINKING ACTIVITIES

1. Discuss the following statement: “If management gets a union, it deserves one.”
Student responses will obviously 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. In addition, if employees feel that they do not receive
organizational justice from their employers, they turn to unions to for assistance in obtaining
what they feel is equitable. As Figure 16-1 shows, the major factors that can trigger
unionization are compensation, working environment, management style, and organizational
treatment issues. If management does not treat their workers as valuable, then workers will
feel a stronger need to unionize. Management must be attentive and responsive to worker
needs. Otherwise, management may get the union it deserves.
2. Suppose a co-worker just brought you a union leaflet urging employees to sign an
authorization card. What may happen from this point on?
The process is illustrated in Figure 16-6. More specifically, however, several scenarios
might occur. First is the possibility that fewer than 30% of the eligible employees would
sign authorization cards and the union would cease its organizing efforts for the present. On
the other hand, if sufficient cards are signed, the union would feel encouraged to increase its
organizing effort with such things as handbills, informational meetings, and small group
discussions. The union would likely emphasize to doubtful persons that their signature asks
only for an election to be held. Should at least 30 percent of the eligible employees sign
authorization cards, the union could proceed to take the steps necessary to have a
representation election conducted. At this point, the employer might undertake an
information program (within the defined limits of free speech) to convince employees to
reject the unionizing process.
3. As the HR manager, you have heard rumors about potential efforts to unionize
your warehouse employees. Use the www.genelevine.com to develop a set of guidelines
for supervisors if they are asked questions by employees about unionization as part of
a “union prevention” approach.
At this Website students can do a search for “union avoidance” and find many articles and
books listed. However, students can only receive a free preview unless they purchase the
materials. There is one eBook entitled “46 Good Reasons Why Employees Should Vote
“No.” The eBook provides legal, suggested answers to employee’s most frequently asked
questions regarding unions. In the partial preview, the Website provides two specific
questions.
“Do I have to join the union or sign a union card?” – Suggested answer: “No. You don’t
have to belong to the union to keep your job jeer, and don’t let anyone tell you that you do.
Federal law prevents the unions from forcing you to join. The unions did not start this
company, nor has the union even given a job or paid your wages, and the union never will.”
“If the union get in here, will we get the things the union has been promising?” – Suggested
answer: “The Company does not have to give in to any demand which is not for the good of
the company or which would not be a good business practice and might be harmful to the
company. You know that anything that would hurt the company would also hurt you. There
is no way for the union to force the company to fulfill the promises that the union may have
made to you.”
4. Public-sector unions now account for more than half of union members, while
private sector accounts for less than half. Why has this change occurred?
As the text discusses, union membership in the private sector has decreased due to
geographical, industrial and workforce changes. There has been a shift from manufacturing
to service sector jobs, more women in the workforce, more jobs moving to the south or
internationally, etc. Also, unions have been successful in raising wages and benefits so that
the need for unions is not as important as it was when unions first started unionizing
workers. Unions have had some measure of success in organizing public-sector employees,
particularly with state and local government workers. The government sector is the most
highly unionized part of the U.S. workforce. One reason is because the unions have been
aggressively going after the public sector workers and the government, as an employer,
does not tend to fight unions as much as private sector employers.
HR EXPERIENTIAL PROBLEM SOLVING
1. Employees in the shipping department have requested the implementation of a

“suggestion box” system to help them bring their concerns to the attention of
management and to help improve labor relations. Identify the advantages and
disadvantages of such a system.
Some advantages would be that it would give employees a sense that management is
concerned about what employees’ have to say and also it might prevent the employees from
forming a union. Disadvantages might be that it would tend to be used instead of face-to-
face communication and also it might be time consuming to try to answer all of the
comments put in the suggestion box.
2. If company management determines that the “suggestion box” request will be more
cumbersome than helpful, what are some alternative solutions that management can
suggest to the employees?
Students might suggest things such as regular meetings between employees and
management or a website where employees could post comments, etc.
CASE: TEAMSTERS AND THE FOP

1. Is it good or bad for one union to challenge another to represent these deputies?
Why or why not?
Students’ answers will vary but most will probably think that it is good for employees to
have a choice about which union they want to represent them. However, it can be disruptive
to the workplace.
2. Is the Teamsters rough approach appropriate and legal under the circumstances?
Based on the limited information provided, I don’t think there is any illegal behavior but the
approach certainly tends to be adversarial rather than collaborative. This type of behavior
will appeal to some employees but not others.
3. If you were sheriff which union would you rather deal with? Is there a lesson there?
Students’ responses will vary.
SUPPLEMENTAL CASES
Wal-Mart and Union Prevention – this case covers Wal-Mart efforts to stay nonunion.
(For the case, go to www.cengage.com/management/mathis.)
1. Describe the advantages and disadvantages of Wal-Mart’s aggressive union

prevention efforts.
Students’ views will vary. Some students might think that what Wal-Mart does is perfectly
legal and has no disadvantages. Other students might think that the disadvantage is that
some employees might feel intimidated into going along with Wal-Mart’s union prevention
program. Some students might mention that the advantage for Wal-Mart appears to be that
they are successful in keeping unions out of their stores.
2. Go to http://walmartwatch.com and review some of the articles and blogs. Then

identify your view of the Watch’s efforts.
Students’ answers will vary. Some students might be very supportive of Wal-Mart and
others might be very negative toward Wal-Mart. There are a lot of individuals on each side.
The Wilson County Hospital - The case deals with labor disputes in a unionized hospital.
(For the case, go to www.cengage.com/management/mathis.)
Questions
1. Discuss the hospital administrator’s refusal to bargain from both his viewpoint and a
legal viewpoint.
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?
Comments
The hospital administrator undoubtedly is still feeling bitter because of the union organizing
attempts. However, since 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.
This case demonstrates a very common problem in union/management relations. In this

situation, it is even possible that the basic cause for the organization of the nurses into a
union was the lack of any reasonable means to express their concerns. Thus unionization
was done to force needed changes in the organization.
Ultimately, bargaining over salaries and working conditions will have to occur. By working
with the union on a more harmonious basis, the administration may be able to reduce the
salary demands by making concessions on some working conditions and other operational
matters.

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What are some reasons employees join unions?

What are some reasons employees join unions?

What are some reasons employers resist unions?

What are some reasons employers resist unions?

Chapter 16: Union/ Management Relations 28

 Describe what a union is and explain why

 Identify several reasons for the decline in union

 Explain the nature of each of the major U.S. labor

 Discuss the stages of the unionization process.

 Describe the typical collective bargaining process.

 Define grievance and identify the stages in a

CHAPTER 16: UNION/MANAGEMENT RELATIONS

This chapter deals with the nature of unions, globalization of unions,

Why employees unionize is discussed. The two primary reasons are

Globalization of unions is explored by looking at union membership

globally, global labor organizations, and U.S. and global unionization

Steps in the unionization process are detailed including the organizing

Chapter Outline and Instructor Notes

decisions, and administrative rulings related to the nature of unions.

I. UNIONS: EMPLOYEE AND MANAGEMENT PERSPECTIVES

Unions continue to follow the goals of increasing compensation, improving working

HR Headline: Business vs. Labor – Right to Work Laws

Questions for Discussion:

1. HR Responsibilities with Unionization – The pattern of dealing with unionization

II. UNIONS GLOBALLY

A. International Union Membership – The percentage of union membership varies

HR Perspective: Unions in China

Questions for Discussion:

B. Global Labor Organizations - The International Labour Organization, based in

III. UNION MEMBERSHIP IN THE UNITED STATES

employment is declining compared to such areas as financial services and

3. Workforce Changes - Workforce and economic changes have contributed to the

The growing percentage of women in the U.S. workforce presents another

B. Public-Sector Unionism - Unions have had some measure of success in organizing

1. Professionals - While professionals in many occupations have been skeptical of the

3. Contingent and Part-Time Workers - Unions have tried to unionize part-time,

IV. UNIONS IN THE UNITED STATES

In 1886, the American Federation of Labor (AFL) was formed as a federation of

LOGGING ON: AFL-CIO – provides union movement information – www.aflcio.org

1. AFL-CIO Federation - The broadest level of union structure is the federation,

3. National and International Unions – are autonomous from their affiliated

4. Local Unions - may be centered around a single employer or around a particular

V. UNION-RELATED LABOR LAWS

There is historical evidence that management developed practices calculated to prevent

2. Norris-LaGuardia Act - Enacted in 1932, this act blunted industry’s ability to

 Refusing to bargain collectively with representatives of the employees.

LOGGING ON: National Labor Relations Board – provides information on workplace

2. Right-to-Work Provision - Section 14(b) of the Taft-Hartley Act allows states to

The Taft-Hartley Act prohibits closed shops (except in construction-related

The following types of arrangements may exist in non-right-to-work states:

D. Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) – passed in

VI. UNIONIZATION PROCESS

A. Organizing Campaign – A union usually mounts an organizing campaign to persuade

Many employers have a written “no-solicitation” policy to restrict employees and

action taken to counter a specific and immediate unionization attempt.

HR Perspective: Good Times, Bad Times

Questions for Discussion:

To encourage individuals to become involved in unionization efforts, unions have

B. Authorization Cards – A union authorization card is a card signed by an employee to