Group 5: COA BLK 2E-A

Leader: DENUS, Ashley Crishel MA ELEC 1

Assisstant Leader: KITONGAN, Vervaine
Members:
BUENO, Josef Carlo
CALINGAYAN, Zyerine
GAMBOA, Ardhen
SANNAD, Trixie Carol Ann
TUNDAY, Sahanie
Date of Reporting: August 2, 2023

COLLECTIVE BARGAINING AND LABOR RELATIONS

LO 1 Define unions and labor relations and their role in organizations.

Unions - It is an organization formed for the purpose of representing their

members’ interests in dealing and resolving conflicts with employers.

Labor Relations - It is a field that emphasizes skills that managers and union
leaders can use to foster effective labor management cooperation, minimize
costly forms of conflict (such as strikes), and seek win-win solutions to
disagreements.

Labor Relations involves Three Level of decisions:

1. Labor Relations Strategy
a. For Management - the decision involves whether the
organization will work with unions or develop (maintain) no-
union operations. This decision is influenced by outside
forces such as public opinion and competition.
b. For unions - the decision involves whether to fight changes
in how unions relate o the organization or accept new kinds
of labor management relationships.

2. Negotiating Contracts - Contract Negotiations in a union setting

involves decisions about pay structure, job security, work rules,
workplace safety, and many other issues. These decisions affect
worker’s and the employer’s situation for the long term of the
contract.
 3. Administering Contracts - These decisions involve day-to-day
activities in which union members and he organizations managers
have disagreements. Issues include complaints of work rules being
violated or workers being treated unfairly in particular situations. A
formal grievance procedure is typically used to resolve these
issues.

Roles of Unions and Labor Relations in an organization

1. National and International Unions - Most union member belongs to a

national or international union.

Most national unions in the United States are affiliated with the American
Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
which is not a labor union but an association that seeks to advance the
shared interest of its member unions at the national level.

Labor Union may either craft or industrial union:

a. Craft Union - A labor union whose members all have a particular
skill or occupation. They are often responsible for training their
members through apprebnticeships and for supplying craft
workers to employers.
Example: National Education Asossication for Teachers.
b. Industrial Union - Consists of members who are linked by their work
in a particular industry. Typically, it represents many different
occupations. Changing employees is less common than it is
among craft workers, and employees who change employers
remain members of the same union only if they happen to moveto
other employers covered by that union.

2. Local Unions - Most national unions consist of multiple local units. Even
when a national union plays the most critical role in negotiating the
terms of a collective bargaining contract, negotiation occurs at the
local level for work rules and other issues that are locally determined. In
addition, administration of the contract largely takes place at the local
union level. As a result, most day-to-day interaction between labor and
management involves the local union.

Membership in the local union depends on the type of union. For an

industrial union, the local may correspond to a single large facility or to
 a number of small facilities. In a craft union, the local may cover a city
or a region.

Most of workers’ contact is with the union steward, an employee elected

by union members to represent them in ensuring that the terms of the
contract are enforced. The union steward helps investigate complaints
and represents employees to supervisors and other managers when
employees file grievances alleging contract violations.

Trend is Union Membership

Union membership in the United States peaked in the 1950s, reaching over
one-third of employees. Since then, the share of employees who belong to
unions has fallen. The decline has been driven by falling union membership in
the private sector, while the share of government workers in unions has mostly
held steady.

Factors that causes the decline of Union Membership:

a. Change in the structure of the economy—Much recent job growth has
occurred in the service sector of the economy, while union strength has
traditionally been among urban blue-collar workers. Services industries
such as finance, insurance, and real estate have lower union
representation than manufacturing. Also, much business growth has
been in the South, where workers are less likely to join unions.

b. Management efforts to control costs—On average, unionized workers

receive higher pay than their nonunionized counterparts, and the
pressure is greater because of international competition. In the past,
union membership across an industry such as automobiles or steel
resulted in similar wages and work requirements for all competitors.
Today, U.S. producers must compete with companies that have entirely
different pay scales and work rules, often placing the U.S. companies at
a disadvantage.

c. Human resource practices—Competition for scarce human resources

can lead employers to offer much of what employees traditionally
sought through union membership.

d. Government regulation—Stricter regulation in such areas as workplace

safety and equal employment opportunity leaves fewer areas in which
unions can show an advantage over what employers must already offer
Unions in Government
Unlike union membership for workers in businesses, union membership among
government workers has remained strong. Union membership in the public
sector grew during the 1960s and 1970s and has remained steady ever since.
Over one-third of government employees are union members, and a larger
share are covered by collective bargaining agreements. Among them are
nurses, park rangers, school librarians, corrections officers, and many workers
in clerical and other white-collar occupations. One reason for this strength is
that government regulations and laws support the right of government workers
to organize.
Labor relations with government workers are different in some respects, such
as regarding the right to strike. Strikes are illegal for federal workers and for state
workers in most states. At the local level, all states prohibit strikes by police
(Hawaii being a partial exception) and firefighters (Idaho being the
exception). Teachers and state employees are somewhat more likely to have
the right to strike, depending on the state.

Impact of Unions on Company Performance

a. Organizations are concerned about impact of unionization on
productivity, profits, and stock performance.
b. Experts have conflicting views
c. Research reflects average effects on unions, not individual companies
and innovative labor relations
d. Skillful labor relations can positively influence outcomes

LO 2 Identify the labor relations goals of management, labor unions, and

society. (initial)

Management Goals - to increase the organization’s profits.

Managers tend to prefer options that lower costs and raise output. When
deciding whether to discourage employees from forming a union, a concern
is that a union will create higher costs in wages and benefits, as well as raise
the risk of work stoppages. Managers may also fear that a union will make
managers and workers into adversaries or limit management’s discretion in
making business and employment decisions.

When an employer has recognized a union, management’s goals continue to

emphasize restraining costs and improving output. Managers continue to
prefer to keep the organization’s operations flexible, so they can adjust
activities to meet competitive challenges and customer demands. Therefore,
in their labor relations managers prefer to limit increases in wages and benefits
and to retain as much control as they can over work rules and schedules.

Labor Union Goals - have the goals of obtaining pay and working conditions
that satisfy their members and of giving members a voice in decisions that
affect them. They obtain these goals by gaining power in numbers.

The more workers who belong to a union, the greater the union’s power. More
members translates into greater ability to halt or disrupt production. Larger
unions also have greater financial resources for continuing a strike; the union
can help to make up for the wages the workers lose during a strike. The threat
of a long strike—stated or implied—can make an employer more willing to
meet the union’s demands.

Benefits packages also tend to be more generous for union members.

However, union goals related to compensation have become more complex
since globalization’s downward pressure on wages. Especially in
manufacturing, some unions have accepted two-tier wage systems in which
existing workers’ wage rates are protected while new workers are hired at a
lower tier.

Two-Tiered Wage System is designed to more effectively protect

the poor and vulnerable workers and enable enterprises to
improve productivity and gain-sharing. The mandatory floor wage
(1st tier) serves as a social protection – set to be slightly higher than
the poverty threshold to ensure basic needs of workers and their
families, but not too close, or exceed average wage to provide
space in setting better terms and conditions of employment.

As in the case of two-tier wage structures, unions typically want to influence

the way pay and promotions are determined. Unlike management, which tries
to consider employees as individuals so that pay and promotion decisions
relate to performance differences, unions try to build group solidarity and
avoid possible arbitrary treatment of employees.

The survival and security of a union depend on its ability to ensure a regular
flow of new members and member dues to support the services it provides.
Therefore, unions typically place high priority on negotiating two types of
contract provisions with an employer that are critical to a union’s security and
viability.

Two types of contract Provisions

1. Checkoff provisions - the employer, on behalf of the union,

automatically deducts union dues from employees’ paychecks.
 2. Provisions relating to union membership or contribution. - security
provisions related to union membership are closed shop, union
shop, agency shop, and maintenance of membership.

Closed Shop - Union security arrangement under which a

person must be a union member before being hired; illegal
for those covered by the National Labor Relations Act.

Union Shop - Union legal membership security arrange-

ment that requires employees to join the union within a
certain amount of time (30 days) after beginning
employment.

Agency Shop - similar alternative union security

arrangement that requires the payment of union dues but
not union membership.

Maintenance of Membership - Union security rules not

requiring union membership but requiring that employees
who join the union remain members for a certain period of
time.

Societal Goals

The activities of unions and management take place within the context of
society, with society’s values driving the laws and regulations that affect labor
relations.

LO 3 Summarize laws and regulations that affect labor relations.

The laws and regulations pertaining to labor relations affect unions’ size and
bargaining power, so they significantly affect the degree to which unions,
management, and society achieve their varied goals. These laws and
regulations set limits on union structure and administration and the ways in
which unions and management interact.

National Labor Relations Act (NLRA)

Federal law that supports collective bargaining and sets out the rights of
employees to form unions. It is perhaps the most dramatic example of labor
law's influence is the 1935 passage of the Wagner Act, also known as the
National Labor Relations Act (NLRA), which actively supported collective
bargaining.
Section 7 of te NLRA sets out the rights of employees, including the “right to self
organization, to form, join, or assist labor organizations, to bargain collectively
through representatives of their own choosing and to engage in other
concerted activities for the purpose of collective bargaining.” Employees also
have the right to refrain from these activities, unless union membership is a
condition of employment. The following activities are among those protected
under the NLRA:

● Union organizing
● Joining a union, whether recognized by the employer or not
● Goin out on strike to secure better working conditions
● Refraining from activity on behalf of the union

In Section 8(a), the NLRA prohibits certain activities by employers as unfair labor
practices. In general, employers may not interfere with, restrain, or coerce
employees in exercising their rights to join or assist a labor organisation or to
refrain from such activities. Employers may not dominate or interfere with the
formation or activities of a labor union. They may not discriminate in any aspect
of employment that attempts to encourage or discourage union activity.
Finally, employers may not refuse to bargain collectively with a labor
organisation that has standing under the act.

When employers or unions violate the NLRA, remedies typically include

ordering that unfair labor practices stop. Employees may be required to rehire
workers, with or without back pay.

Laws Amending the NLRA

In later amendments to the NLRA- the Taft-Hartley Act of 1947 and the
Landrum-Griffin Act of 1959- Congress established some restrictions on union
practices deemed unfair to employers and union members.

Under the Taft-Hartley Act, unions may not restrain employers through actions
such as the following:

● Mass picketing in such numbers that non striking employees physically

cannot enter the workplace
● Engaging in violent acts in connection with a strike
● Threatening employees with physical injury or job loss if they do not
support union activities
● During contract negotiations, insisting on illegal provisions, provisions that
the employer may hire only workers who are union members or
 “satisfactory” to the union, or working conditions to be determined by a
group to which the employer does not belong.
● Terminating an existing contract and striking for a new one without
notifying the employer, the Federal Mediation and Conciliation Service,
and the state mediation service.

The Taft-Hartley Act also allows the states to pass so-called right-to-work laws,
which make union shops, maintenance of membership, and agency shops
illegal. In addition, the Landrum-Griffin Act regulates unions’ actions with
regard to their members, including financial disclosure and the conduct of
elections. This law establishes and protects the rights of union members. These
include the right to nominate candidates for union office, participate in union
meetings and secret-ballot elections, and examine unions’ financial records.

National Labor Relations Board (NLRB)

Enforcement of the NLRA rests with the National Labor Relations Board (NLRB).
This federal government agency consists of a five-member board, the general
counsel, and 52 regional and other field offices. Because the NLRB is a federal
agency, its enforcement actions are limited to companies that have an
impact on interstate commerce, but as a practical matter, this extends to all
but purely local businesses.

The NLRB has two major functions: to conduct and certify representation
elections and to prevent unfair labor practices. It does not initiate either of
these actions but responds to requests for action.

1. Representation Elections- The NLRB is responsible for ensuring that the

organizing process follows certain steps. When a majority of workers vote
in favor of a union, the NLRB also conducts elections to decertify unions,
following the same process as for representation elections. It is also
responsible for determining the appropriate bargaining unit and the
employees who are eligible to participate in organizing activities.Most
employees who are on strike and who have been replaced by other
employees are eligible to vote in an election that occurs within 12
months of the onset of the strike.
2. Prevention of Unfair Labor Practices- The NLRB prevents unfair labor
practices by educating employees about their rights and responsibilities
under the National Labor Relations Act and by responding to
complaints. The deadline for filing a charge is six months after the
alleged unfair practice. All parties must serve with a copy of the charge.
 The NLRB has the authority to issue cease-and-desist orders to halt unfair
labor practices. It also can order the employer to reinstate workers, with
or without back pay.

LO 4 Describe the union organizing process.

Union Organizing

> Unions begin their involvement with an organization’s employees by

conducting an organizing campaign. To meet its objectives, a union needs to
convince a majority of workers that they should receive better pay or other
employment conditions and that the union will help them do so.

The Process of Organizing

The organizing process begins when union representatives make contact with
employees, present their message about the union, and invite them to sign an
authorization card. For the organization process to continue, at least 30% of
the employees must sign an authorization card.

If over half the employees sign an authorization card, the union may request
that the employer voluntarily recognize the union. If the employer agrees, the
NLRB certifies the union as the exclusive representative of employees. If the
employer refuses, or if only 30% to 50% of employees signed cards, the NLRB
conducts a secret-ballot election. The arrangements are made in one of two
ways

1.) For a consent election, the employer and the union seeking representation
arrive at an agreement stating the time and place of the election, the choices
included on the ballot, and a way to determine who is eligible to vote.

2.) For a stipulation election, the parties cannot agree on all of these terms, so
the NLRB dictates the time and place, ballot choices, and method of
determining eligibility.

On the ballot, workers vote for or against union representation, and they may
also have a choice from among more than one union. If the union (or one of
the unions on the ballot) wins a majority of votes, the NLRB certifies the union.
If the NLRB finds the election was not conducted fairly, it may set aside the
results and call for a new election. Conduct that may lead to an election
result’s being set aside includes the following examples:

• Threats of loss of jobs or bene! ts by an employer or union to influence votes

or organizing activities.

• A grant of bene! ts or a promise of bene! ts as a means of influencing votes

or organizing activities.

• Campaign speeches by management or union representatives to

assembled groups of employees on company time less than 24 hours before
an election.

• The actual use or threat of physical force or violence to influence votes or

organizing activities.

The “HR Oops!” box describes another situation in which a union has contested
election results.

Management Strategies

> Sometimes an employer will recognize a union after a majority of employees

have signed authorization cards. More often, there is a hotly contested
election campaign. During the campaign, unions try to persuade employees
that their wages, benefits, treatment by employers, and chances to influence
workplace decisions are too poor or small and that the union will be able to
obtain improvements in these areas. Management typically responds with its
own messages providing an opposite point of view. Management messages
say the organization has provided a valuable package of wages and benefits
and has treated employees well. Management also argues that the union will
not be able to keep its promises but will instead create costs for employees,
such as union dues and lost income during strikes.

Union Strategies - The traditional union organizing strategy has been for
organizers to call or visit employees at home, when possible, to talk about issues
like pay and job security.

Associate Union Membership - Alternative form of union membership in which

members receive discounts on insurance and credit cards rather than
representation in collective bargaining.

Corporate Campaigns - Bringing public, financial, or political pressure on

employers during union organization and contract negotiation.
 ● Another winning union organizing strategy is to negotiate employer
neutrality and card-check provisions into a contract. Under a neutrality
provision, the employer pledges not to oppose organizing attempts
elsewhere in the company. A card-check provision is an agreement
that if a certain percentage by law, at least a majority of employees sign
an authorization card, the employer will recognize their union
representation.

Decertifying a Union

> The Taft-Hartley Act expanded union members’ right to be represented by

leaders of their own choosing to include the right to vote out an existing union.
This action is called decertifying the union. Decertification follows the same
process as a representation election. An election to decertify a union may not
take place when a contract is in effect.

LO 5 Explain how management and unions negotiate contracts.

COLLECTIVE BARGAINING

- Negotiation between union representatives and management

representatives to arrive at a contract defining conditions of
employment for the term of the contract and to administer that
contract.

BARGAINING OVER NEW CONTRACTS

● The process begins with preparation, including research into the other
side’s strengths and demands.
● In the early stages of negotiation, many more people are present than
at later stages. The union presents its demands, and management
sometimes presents demands as well.
● Then the sides evaluate the demands and the likelihood of a strike.
● In the final stages, pressure for an agreement increases and a neutral
third party may be called on to help reach a resolution.

BARGAINING BREAKS DOWN

If bargaining breaks down, the impasse may be broken with a strike, lockout,
mediation, fact finder, or arbitration.
WORK STOPPAGES

Strike - A collective decision by union members not to work until certain

demands or conditions are met.

Lockout - An employer’s exclusion of workers from a workplace until they meet

certain conditions.

ALTERNATIVE TO WORK STOPPAGES

Mediation - Conflict resolution procedure in which a mediator hears the views

of both sides and facilitates the negotiation process but has no formal authority
to dictate a resolution.

Fact Finder - Third party to collective bargaining who reports the reasons for a
dispute, the views and arguments of both sides, and possibly a recommended
settlement, which the parties may decline.

Arbitration - Conflict resolution procedure in which an arbitrator or arbitration

board determines a binding settlement.

LO 6 Summarize the practice of contract administration.

CONTRACT ADMINISTRATION

- the process of ensuring that the terms of a labor agreement between a

union and management are enforced. This involves monitoring
compliance with the agreement, resolving conflicts over interpretation
or violation of the agreement, and developing a positive working
relationship between the union and management. The process of
contract administration is ongoing and occurs throughout the life of the
agreement, not just during negotiations for a new contract.

Grievance Procedure - The process for resolving union-management conflicts

over interpretation or violation of a collective bargaining agreement.

Steps in an Employee-Initiated Grievance Procedure

STEP 1

- Employee ( and union steward) discusses problem with supervisor.

 - Union steward and employee decide whether problem was resolved.
- Union steward and employee decide whether contract was violated.

STEP 2

- Written grievance was submitted to production superintendent, another

line manager, or industrial relations representative.
- Steward and manager discuss grievance.
- Management puts response in writing.

STEP 3

- Union appeals grievance to top line management and senior industrial

relations staff.
- Additional local or international union officers may be involved.
- Decision resulting to appeal is put into writing.

STEP 4

- Union decides whether to appeal unresolved grievance to arbitration.

- Union appeals grievance to arbitration for binding decision.

LO 7 Describe new approaches to labor-management relations.

● The growing role of employee empowerment and the shrinking size of

union membership have helped to propel new approaches to labor
relations, including an emphasis on cooperation between unions and
management and the use of nonunion systems for employee
representation.

LABOR-MANAGEMENT COOPERATION

● In contrast to the traditional view that labor and management are

adversaries, some organizations and unions work more cooperatively.
Cooperation may feature employee involvement in decision making,
self-managing employee teams, labor-management problem-solving
teams, broadly defined jobs, and sharing of financial gains and business
information with employees.
● If such cooperation is tainted by attempts of the employer to dominate
or interfere with labor organizations, however, such as by dealing with
wages, grievances, or working conditions, it maybe illegal under the
NLRA.
● In spite of such legal concerns, cooperative labor relations seem to
contribute to an organization’s success.

NONUNION REPRESENTATION SYSTEMS

● In some organizations without a union, there is a management-

established system to represent workers.
● Another nonunion approach is the worker center, a nonprofit
organization offering its members services such as training, legal advice,
lobbying, and worker advocacy.
● Most worker centers are not part of unions, so they are not constrained
by some of the requirements on unions. Instead of negotiating contracts
with management, worker centers pressure employers through publicity
campaigns, and they lobby legislators to pass laws favorable to their
members.