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Enhancing Union-Management Relations

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Chapter TwelveLearning ObjectivesLearning Objectives (cont’d)Union-Management RelationsThe Historical Development of UnionsThe Historical Development of Unions (cont’d)Slide 7Historical Overview of UnionsOrganized Labor TodayOrganized Labor Today (cont’d)Slide 11Labor-Management LegislationLabor-Management Legislation (cont’d)Slide 14The Unionization ProcessSteps in Forming a UnionSteps in Forming a Union (cont’d)Slide 18Collective BargainingUnion-Management Contract IssuesSlide 21Union-Management Contract Issues (cont’d)Slide 23Slide 24Steps in Resolving a GrievanceUnion and Management Negotiating ToolsUnion and Management Negotiating Tools (cont’d)Slide 28Chapter TwelveEnhancingUnion-Management RelationsCopyright © Houghton Mifflin Company. All rights reserved. 12 - 2Learning Objectives1. Explain how and why labor unions came into being.2. Discuss the sources of unions’ negotiating power and trends in union membership.3. Identify the main focus of several major pieces of labor-management legislation.4. Enumerate the steps involved in forming a union and show how the National Labor Relations Board is involved in the process.Copyright © Houghton Mifflin Company. All rights reserved. 12 - 3Learning Objectives (cont’d)5. Describe the basic elements in the collective-bargaining process.6. Identify the major issues covered in a union-management contract.7. Explain the primary bargaining tools available to unions and management.Copyright © Houghton Mifflin Company. All rights reserved. 12 - 4Union-Management Relations•Labor Union–An organization of workers acting together to negotiate their wages and working conditions with employers•Union-Management (Labor) Relations–The dealings between labor union and business management, both in the bargaining process and beyond itCopyright © Houghton Mifflin Company. All rights reserved. 12 - 5The Historical Development of Unions•Early History–Craft union•Organization of skilled workers in a single craft or trade•Limited to a single city; lasted for a short time–Knights of Labor•Formed as a secret society•Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society•Lost public favor after Haymarket riot of 1886Copyright © Houghton Mifflin Company. All rights reserved. 12 - 6The Historical Development of Unions (cont’d)•Early History (cont’d)–American Federation of Labor (AFL)•Samuel Gompers’ goal: to improve members’ living standards•Used the strike as an effective labor weapon–Industrial Workers of the World (IWW)•A radical movement to overthrow capitalismCopyright © Houghton Mifflin Company. All rights reserved. 12 - 7The Historical Development of Unions•Evolution of Contemporary Labor Organizations–Industrial union•An organization of both skilled and unskilled workers in a single industry–Congress of Industrial Organizations (CIO)•Formed by industrial unions that withdrew from the AFL–AFL-CIO•Both labor groups agreed to merge in 1955 to gain strength and stop fighting each other over the right to represent particular groups of employeesCopyright © Houghton Mifflin Company. All rights reserved. 12 - 8Historical Overview of UnionsSources: U.S. Bureau of Labor Statistics, Dictionary of U.S. Labor Organizations, 1986–1987; www.aflcio.org; Statistical Abstract of the United States, 2001.Copyright © Houghton Mifflin Company. All rights reserved. 12 - 9Organized Labor Today•Union Membership–Approx. 14.5% of the nation’s workers belong to unions–AFL-CIO•The largest union with approx 13.1 million members•Includes actors, barbers, construction workers, carpenters, retail clerks, musicians, teachers, postal workers, painters, steel and iron workers, firefighters, bricklayers, newspaper reporters–Teamsters•Independent labor organization with approx 1.3 million members–United Auto Workers (UAW)•Represents employees in the automobile industry with approx 748,000 members•Part of AFL-CIOCopyright © Houghton Mifflin Company. All rights reserved. 12 - 10Organized Labor Today (cont’d)•Membership Trends–Union membership has declined steadily since 1980–Heavily unionized industries have been decreasing or not growing as fast as non-unionized industries–Firms have moved from unionized areas (Northeast, Great Lakes region) to less unionized areas (Southeast, Southwest)–Largest employment growth is in service industries, which are typically not unionized–Some companies are moving manufacturing to other (less unionized) countries–Management is providing benefits that reduce employee’s need for unionizationCopyright © Houghton Mifflin Company. All rights reserved. 12 - 11Organized Labor Today (cont’d)•Union-Management Partnerships–The adversarial nature of past union-management relations has given way to limited cooperative partnerships between unions and companies•Companies gain increased productivity, improved quality, and reduced costs•Workers gain increased response to their needs, more decision-making opportunities, less supervision, more responsibility, and increased job security•Unions gain credibility, strength, and increased membershipCopyright © Houghton Mifflin Company. All rights reserved. 12 - 12Labor-Management Legislation•Norris-LaGuardia Act (1932)–Made it difficult for businesses to obtain court orders banning strikes, picketing, and union membership drives•National Labor Relations Act / Wagner Act (1935)–Established rights of workers to organize, be represented by a union, and to negotiate with management–Forbids unfair labor practices, particularly those related to unionization–Established the National Labor Relations Board (NLRB) to enforce the act•Overseeing union representation elections•Investigating complaints filed under the provisions of the actCopyright © Houghton Mifflin Company. All rights reserved. 12 - 13Labor-Management Legislation (cont’d)•Fair Labor Standards Act (1938)–Set a minimum wage–Requires overtime rates for work in excess of 40 hours a week–Prohibits the use of child labor•Labor-Management Relations Act / Taft-Hartley Act (1947)–Balances the union power and management authority–Defines certain union activities as unfair labor practices–Gives management more rights during union organizing campaigns–Gives the president power to obtain a temporary injunction to stop strikes that


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