Bargaining UnitEstablishing a bargaining unitSlide 3Slide 4NLRB criteria for selecting a bargaining unit: (Based on 200,000 existing bargaining units)Slide 6Slide 7Slide 8Union Nonunion wage differential by skill levelSlide 10Slide 11NLRB criteria for selecting a bargaining unit: (Based on 200,000 existing bargaining units)Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Unit TypesSlide 20Type of UnionsMake up of Local UnionUnit Types: Single Employer, Single LocationUnit Types: Single Employer, Multiple LocationsUnit Types: Multiple EmployersSlide 26When firms grow: AccretionWhen firms merge or are acquired: SuccessorshipsBargaining UnitBargaining UnitGroup of workers within a plant, firm, Group of workers within a plant, firm, occupation or industry that, on the occupation or industry that, on the basis of commonality of interest or basis of commonality of interest or production process; is determined by production process; is determined by the NLRB to be the appropriate unit for the NLRB to be the appropriate unit for collective bargaining purposescollective bargaining purposesEstablishing a bargaining unitEstablishing a bargaining unitDoctrine of Exclusive RepresentationDoctrine of Exclusive RepresentationUnion is the exclusive representative of all Union is the exclusive representative of all employees in the bargaining unitemployees in the bargaining unit–Firm must deal with employees as a group—cannot Firm must deal with employees as a group—cannot divide and conquer; cannot enter separate agreements divide and conquer; cannot enter separate agreements with subsets of workerswith subsets of workers–Individual employees can bypass the union in bringing Individual employees can bypass the union in bringing grievances before the employer, grievances before the employer, butbut resolution cannot resolution cannot be inconsistent with the contractbe inconsistent with the contract–Exclusivity lasts minimum of one year, maximum of Exclusivity lasts minimum of one year, maximum of threethree–Union membership outside of a bargaining unit has Union membership outside of a bargaining unit has very little powervery little powerEstablishing a bargaining unitEstablishing a bargaining unitDoctrine of Exclusive RepresentationDoctrine of Exclusive RepresentationUnion must provide services to all Union must provide services to all employees in the bargaining unitemployees in the bargaining unitEstablishing a bargaining unitEstablishing a bargaining unitImportance of the definition of a bargaining Importance of the definition of a bargaining unitunitBroader representations means more power Broader representations means more power for union; better ability to disrupt productionfor union; better ability to disrupt productionMore diverse means more difficult/expensive More diverse means more difficult/expensive to provide servicesto provide servicesGerrymandering: Firm wants to add groups Gerrymandering: Firm wants to add groups that are less likely to vote for the union; union that are less likely to vote for the union; union wants the opposite.wants the opposite.Standardized bargaining unit leads to pattern Standardized bargaining unit leads to pattern bargaining—can set wage standards for the bargaining—can set wage standards for the industry, industry, even for the nonunion sectoreven for the nonunion sectorNLRB criteria for selecting a bargaining NLRB criteria for selecting a bargaining unit:unit: ( (Based on 200,000 existing bargaining Based on 200,000 existing bargaining units)units)Community of interest doctrine: Community of interest doctrine: similarity similarity of job function, earnings, benefits, hours, required of job function, earnings, benefits, hours, required skills, and supervision; production activities in skills, and supervision; production activities in close proximity, considerable interaction (KEY)close proximity, considerable interaction (KEY)History of bargaining: History of bargaining: If unit had been If unit had been organized before, was the unit effective? (LESS organized before, was the unit effective? (LESS COMMON)COMMON)NLRB criteria for selecting a bargaining NLRB criteria for selecting a bargaining unit:unit: ( (Based on 200,000 existing bargaining Based on 200,000 existing bargaining units)units)Employee interests: Employee interests: If two or more If two or more configurations are equally plausible, NLRB may use configurations are equally plausible, NLRB may use the secret ballot to assess employee preferences. the secret ballot to assess employee preferences. Globe Machinery and Stamping, Co. (1937)Globe Machinery and Stamping, Co. (1937)Company organizational structure: Company organizational structure: NLRB has NLRB has decided that bargaining units must be defined on a decided that bargaining units must be defined on a case-by-case basis. Workers who otherwise may case-by-case basis. Workers who otherwise may not be combined, but who all report to the same not be combined, but who all report to the same supervisor or work in the same production process supervisor or work in the same production process may be combined. (Bendix, 1937)may be combined. (Bendix, 1937) –Bendix (1977): NLRB denied petition for craft unions to Bendix (1977): NLRB denied petition for craft unions to from a separate group because of past plant-wide from a separate group because of past plant-wide bargaining history and joint production activities.bargaining history and joint production activities.NLRB criteria for selecting a bargaining NLRB criteria for selecting a bargaining unit:unit: ( (Based on 200,000 existing bargaining Based on 200,000 existing bargaining units)units)Union and Firm propose a mutually Union and Firm propose a mutually satisfactory unit (Stipulated unit)satisfactory unit (Stipulated unit)–NLRB must accept if consistent with NLRANLRB must accept if consistent with NLRAIndustry, occupation or firm traditionIndustry, occupation or firm traditionPublic InterestPublic InterestNLRB criteria for selecting a bargaining NLRB criteria for selecting a bargaining unit:unit: ( (Based on 200,000 existing bargaining Based on 200,000 existing bargaining units)units)Special groups:Special groups:–Craft WorkersCraft WorkersPurpose: Craft or skilled may be poorly treated when Purpose: Craft or skilled may be poorly treated when majority are unskilled (cross-subsidy of less-skilled)majority are