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HUMAN RESOURCES MANAGEMENT
CHECK POINT 38: LABOR-MANAGEMENT RELATIONS

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1. principles of labor-management relations
2. labor unions
3. why do people join labor unions?
4. types of labor-management relations
5. important federal laws related to labor unions
6. unfair labor practices
7. additional legal issues related to labor unions
8. standard unionization procedure
9. tips to avoid unionization
10. the collective bargaining process
11. collective bargaining strategy
12. types of collective bargaining items
13. agreement between the company and employees
14. a list of mandatory bargaining items
15. third party assistance in resolving conflicts
16.

Business Mediation Program

17. a strike
18. the final agreement
19. for serious business owners only
20. the latest information online
 

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HUMAN RESOURCES MANAGEMENT
CHECK POINT 38: LABOR-MANAGEMENT RELATIONS

Please Select Any Topic In Check Point 38 Below And Click.

1. principles of labor-management relations
2. labor unions
3. why do people join labor unions?
4. types of labor-management relations
5. important federal laws related to labor unions
6. unfair labor practices
7. additional legal issues related to labor unions
8. standard unionization procedure
9. tips to avoid unionization
10. the collective bargaining process
11. collective bargaining strategy
12. types of collective bargaining items
13. agreement between the company and employees
14. a list of mandatory bargaining items
15. third party assistance in resolving conflicts
16.

Business Mediation Program

17. a strike
18. the final agreement
19. for serious business owners only
20. the latest information online
 

DO I NEED TO KNOW THIS CHECK POINT?

 

WELCOME TO CHECK POINT 38

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HOW CAN YOU BENEFIT FROM CHECK POINT 38?

 
The main purpose of this check point is to provide you and your management team with detailed information about Labor-Management Relations and how to apply this information to maximize your company's performance.
 
In this check point you will learn:
 
• About principles of labor-management relations.
• About labor unions and related statistics.
• What motivates people join labor unions?
• About five types of labor-management relations.
• About important federal laws related to labor unions.
• About unfair labor practices and other issues related to labor unions.
• Steps in the standard unionization procedure.
• About tips to avoid unionization.
• About the collective bargaining process and bargaining strategy.
• About an agreement between a company and employee. and much more.
 

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 38

 
You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.
 
You and your team should adhere to basic lean management guidelines on a continuous basis:
 
Treat your customers as the most important part of your business.
Provide your customers with the best possible value of products and services.
Meet your customers' requirements with a positive energy on a timely basis.
Provide your customers with consistent and reliable after-sales service.
Treat your customers, employees, suppliers, and business associates with genuine respect.
Identify your company's operational weaknesses, non-value-added activities, and waste.
•. Implement the process of continuous improvements on organization-wide basis.
Eliminate or minimize your company's non-value-added activities and waste.
Streamline your company's operational processes and maximize overall flow efficiency.
Reduce your company's operational costs in all areas of business activities.
Maximize the quality at the source of all operational processes and activities.
Ensure regular evaluation of your employees' performance and required level of knowledge.
Implement fair compensation of your employees based on their overall performance.
Motivate your partners and employees to adhere to high ethical standards of behavior.
Maximize safety for your customers, employees, suppliers, and business associates.
Provide opportunities for a continuous professional growth of partners and employees.
Pay attention to "how" positive results are achieved and constantly try to improve them.
Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. PRINCIPLES OF LABOR-MANAGEMENT RELATIONS

LABOR-MANAGEMENT RELATIONS

Business owners and managers must be fully familiar with sound principles of labor-management relations to ensure a healthy and productive environment within the organization.

If you don't have employees in your business then this check point is not applicable to you. However, if you do have employees, you would like to find out what is involved in developing sound labor-management relations to ensure harmony in the workplace and maximize organizational performance.

Labor-Management Relations represent an essential ingredient of every organizational structure and should be based on the following principles outlined below.

PRINCIPLES OF LABOR-MANAGEMENT RELATIONS

1.

Mutual acceptance and respect.

2.

A free enterprise system.

3.

Free collective bargaining.

4.

A problem-solving attitude.

 

ADDITIONAL INFORMATION ONLINE

The Art Of Problem Solving - Part 1 By NYSCEA Partnership.
The Art Of Problem-Solving - Part 2 By NYSCEA Partnership.
Employee And Labor Relations By Sheryl Wolowyk, My HR Pro.
HR Role In Labor Relations By Viki Scott And Canadian HR Reporter.
Understanding Each Others' Worlds - Part 1 By NYSCEA Partnership.

2. LABOR UNIONS

LABOR UNIONS

Labor-Management Relations are frequently influenced by labor unions or other similar organizations. This applies primarily to medium-sized and larger organizations. Small business owners usually do not have substantial involvement with labor unions. Nevertheless, it is advisable to be aware of the existing labor union practices.

A Labor Union, or a Trade Union, is an organization of employees established to protect, to promote, and to improve the economic, social, and political interests of its members. The main objective of the labor union is to secure the economic well-being of workers in various industrial sectors. It is important, therefore, to evaluate the objectives of labor unions and to assess how they compare with the usual interests of the company's management.

LABOR UNION STATISTICS

At present, about 18 million American workers, or about 14% of the total work force, belong to labor unions.

American Federation Of Labor (AFL), formed in 1886, merged with the Congress Of Industrial Organizations (CIO) in 1955 to become the biggest labor union organization in the U.S. history. AFL-CIO is a voluntary federation of 109 national and international unions with about 13 million members.

In addition, there are about 5 million workers who belong to labor unions other than those affiliated with AFL-CIO. About 75% of these workers belong to two major independent unions - Teamsters with about 1.3 million members and United Auto Workers (UAW)

United Auto Workers with about 1 million members. (39)

ADDITIONAL INFORMATION ONLINE

AFL-CIO.
President Barack Obama Addresses AFL-CIO.
AFL-CIO 2013 Convention, Address By Richard Trumka.
AFL-CIO 2013 Convention, Address By Sen Elizabeth Warren.
Unions Ensure Workers Have A Voice On The Job By AFL-CIO.

3. WHY DO PEOPLE JOIN LABOR UNIONS?

WHY DO PEOPLE JOIN LABOR UNIONS?

Labor Unions play an important role in the working lives of millions of people nation-wide. Sometimes, Workers join a labor union because it is easier to obtain employment through the union than on the open labor market. In other instances, workers expect the labor union to protect their rights during the process of conflict management between the company and employees.

In addition, labor unions are instrumental in the process of the Wage Rate adjustment procedures. They also mediate during the process of Collective Bargaining between the company and employees as well as establish a system of industrial justice through grievance and arbitration agreements.

ADDITIONAL INFORMATION ONLINE

What Have Unions Done For Us? By PPWC Union.
Your Public Sector Union At Work By Andrew Klavan.
Do You Know How Unions Really Work? By Kerry Coates.
Who Is More Productive Union Vs. Non-Union By Dominic Giarratano.
Union Members On Why You Should Join A Union By Irish Congress Of TU.

4. TYPES OF LABOR-MANAGEMENT RELATIONS

LABOR-MANAGEMENT RELATIONS

Federal legislation and the modern business environment facilitated the development of the following types of Labor-Management Relations illustrated below.(40)

TYPES OF LABOR-MANAGEMENT RELATIONS

1.

Closed Shop.
In this instance, only union members can be hired by a company. This provision was outlawed in 1947. However, it still remains in effect in certain industries in some states.

2.

Union Shop.
In this instance, employees are hired by a company but they must join the union within a prescribed period of time and pay union dues in order to remain on the job.

3.

Agency Shop.
In this instance, all company employees, including non-union members, must pay union dues. It is assumed here that the union's efforts benefit all employees.

4.

Open Shop.
In this instance, union membership decision rests with employees. Those employees who do not join the union are not liable for union dues.

5.

Maintenance Of Membership Arrangement.
In this instance, employees are not obliged to belong to a union. Those employees who are union members, however, must maintain their membership in the union during the employment period.

 

ADDITIONAL INFORMATION ONLINE

Labor-Management Relations By USAFHRMS.
Benefits Of Labor-Management Collaboration By Veronica Diver.
Reagan On Union-Management Relations -Part 1 By Daniel JB Mitchell.
Reagan On Union-Management Relations - Part 2 By Daniel JB Mitchel.
Why Labor And Management Relationships Are Important By Lyle Balister.

5. IMPORTANT FEDERAL LAWS RELATED TO LABOR UNIONS

FEDERAL LAWS

As a result of union activities, certain Federal Laws have been passed and implemented since the 1930's. Some of the most important federal laws related to Labor Unions are outlined below.

FEDERAL LAWS RELATED TO LABOR UNIONS

The Norris - La Guardia Act Of 1932.

  • This was the first law that encouraged the activities of labor unions and guaranteed each employee the right to collective bargaining, "free of interference, restraint, and coercion". This law also restricted the courts' powers against activities such as picketing and payment of strike benefits.

The National Labor Relations Act Of 1935 Or The Wagner Act Of 1935.

  • This law banned certain types of unfair labor practices, provided for secret ballot elections for unionization of employees, and created The National Labor Relations Board (NLRB) for enforcing the above mentioned provisions.

The Labor Management Relations Act Of 1947.

  • This law prohibited unfair labor practices by unions, specified the rights of employees as union members, stipulated the right of employers, and permitted the President of the United States to temporarily prohibit strikes during national emergencies.

The Labor Management Reporting And Disclosure Act Of 1959.

  • This law was designed to protect union members from possible misconduct on the part of their unions.
 

ADDITIONAL INFORMATION ONLINE

Employer Liable For Job Discrimination By John Sarnow.
Salaried Employees May Be Entitled to Overtime? By Sharon L. Preston.
What Should You Know About The Wage And Hour Laws By Gibson Vance.
Employees Are Protected Under The Law From Retaliation By Sharon L. Preston.
Employer's Reason For Discharge Trumps Evidence Of Age-Bias By John Sarnow.

6. UNFAIR LABOR PRACTICES

THE WAGNER ACT

The National Labor Relations Act Of 1935 Or The Wagner Act Of 1935 stipulates Five Unfair Labor Practices which are not permitted in the workplace. It is important that you and your management team are familiar with these unfair practices and ensure that your company always abides by the prevailing rules and regulations.(41)

FIVE UNFAIR AND PROHIBITED LABOR PRACTICES

1.

Company's management should not "interfere with, restrain, or coerce employees" in exercising their legally sanctioned right of self-organization.

2.

Company's management should not interfere with either the formation or the administration of labor unions. Additional management actions are prohibited under 1 and 2: bribing employees, creating a spy system in a company, moving the business to avoid unionization, and blacklisting union sympathizers.

3.

Company's management is prohibited from discriminating in any way against employees for their labor union activities.

4.

Company's management can't discharge or discriminate against any employee simply because he or she had filed "unfair practice" charges against the company.

5.

Company's management can't refuse to conduct a collective bargaining process with representative duly selected by their employees.

 

ADDITIONAL INFORMATION ONLINE

Unfair Labor Practices By Law Info.
Unfair Labor Practices By USAFHRMS.
Unfair Business Practices By Law Info.
Defamation And Gossip In The Workplace By Law Info.
FLSA Protects Workers From Unfair Labor Practices By Gibson Vance.

7. ADDITIONAL LEGAL ISSUES RELATED TO LABOR UNIONS

ADDITIONAL IMPORTANT LEGAL ISSUES RELATED TO LABOR UNIONS

The Labor Management Relations Act Of 1947 provides employers with explicit collective bargaining rights, as well as freedom of expressing their opinion about labor organizations. A manager, for example, may tell employees that, in his opinion, unions are "worthless, damaging to the economy, and serve no purpose". Furthermore, the manager may suggest that "unionization and subsequent additional wage demands might cause a permanent shutdown of the company."

The Labor Management Reporting And Disclosure Act Of 1959 stipulates additional restrictions imposed on employers in the event of unionization. Companies, for example, are prohibited from paying their employees in an effort to discourage them from joining the union. Employers and unions are also required to submit extensive reports prior to employment of labor-management consultants.

8. STANDARD UNIONIZATION PROCEDURE

STANDARD UNIONIZATION PROCEDURE

It is important that managers be familiar with the Standard Unionization Procedure. This procedure generally includes the following five steps outlined below. (42)

STEPS IN THE STANDARD UNIONIZATION PROCEDURE

Step 1: Initial Contact.

This contact may be initiated by a representative of a union that seeks to expand its activities, or by a dissatisfied employee who would like to see the company unionized.

Step 2: Authorization Cards.

The union needs to justify to the National Labor Relations Board (NLRB) that a substantial number of employees might be interested in the company's unionization. For this purpose at least 30% of the company's employees must sign authorization cards.

Step 3: The Hearing.

If management does not oppose the company's unionization, no hearing is required. However, if management decides to oppose the unionization of their company, then a hearing regarding unionization is required. This hearing is conducted by NLRB. If the results of the hearing will favor the unionization, then NLRB will issue an election date.

Step 4: The Campaign.

Prior to the election date, both the union representatives and the company's  management may campaign among employees for and against unionization.

Step 5: The Election.

The final election may take place when the union succeeds in obtaining 30% of the signed authorization cards, agreement concerning the bargaining unit, and approval by the NLRB.

9. TIPS TO AVOID UNIONIZATION

TIPS TO AVOID UNIONIZATION

According to Matthew Goodfellow, most companies usually lose the NLRB Elections if management does not pay sufficient attention to the Level Of Morale and Motivation of employees. It is essential, therefore, that management spend time and effort, even when the atmosphere is calm, to test the "temperature" of employees' sentiments and find ways to remove irritants. Doing this will reduce the possibility that an election will ever take place. (43)

Furthermore, management often appoints ineffective committees to manage campaigns instead of conducting prompt anti-union programs. Managers also over-emphasize the importance of Money and Benefits. It should be remembered that employees may want more money, but quite often if they feel the company treats them fairly, decently, and honestly, they are satisfied with reasonable competitive rates and benefits. It is only when employees feel that they are ignored, not cared for, and disregarded, that money and benefits become a major issue.

Finally, managers should receive appropriate Training regarding administration of Pre-Union Conditions, Union Literature, and Solicitation Rules.

 

ADDITIONAL INFORMATION ONLINE

Todd Harris With More Union Busting Rhetoric On MSNBC.
Confessions Of A Union Buster By Martin Jay Levitt, World Class Fas.
Union Busting 101 - "Fear" - Part 1 By Martin Jay Levitt And David Williams.
Rachel Maddow Connects Union Busting To EFCA Opposition By Only Obvious.
"Right To Work" Is A Euphemism For Union Busting By J. Epstein And M. Bashir.

10. THE COLLECTIVE BARGAINING PROCESS

THE COLLECTIVE BARGAINING PROCESS

If employees do join a labor union, management should prepare itself for the Collective Bargaining Process.

According to the National Labor Relations Act: "Collective bargaining means that management and employees are required by law to negotiate, in "good faith" over salaries, wages, working hours, employee benefits, and other terms and conditions of employment."

Both management and employees must appoint Representatives to participate in the collective bargaining process. Management should select one or more of its senior members, who usually deal with human resources issues, or alternatively, the company's legal labor counsel. Employees are generally represented by their selected negotiators, their local union officials, or both.

ADDITIONAL INFORMATION ONLINE

Collective Bargaining And Negotiation By P. P. Roy.
Collective Bargaining - Definition By B2B Whiteboard.
Interview On Collective Bargaining Process By Renee Montaigne.
Collective Bargaining - Bargaining Tactics By G. Clifton And D. Heitner.
Union Management Labor Relations Contract Negotiations By Jon Markosy.

11. COLLECTIVE BARGAINING STRATEGY

COLLECTIVE BARGAINING STRATEGY

One of the most important aspects of the negotiating process is the development of a Collective Bargaining Strategy. Management should, therefore, plan its strategy in advance to establish the maximum level of concessions that could be granted to employees during the process of negotiations. Additional considerations related to a sound bargaining strategy by management are outlined below.

ELEMENTS OF A COLLECTIVE BARGAINING STRATEGY

1.

To ensure continuous control over the company.

2.

To evaluate all demands from employees on a package basis.

3.

To make adequate provisions in the event of local union representation in the bargaining process.

4.

To ensure that employees are informed of the progress of negotiations.

5.

To ensure that the process of negotiations provides positive results for management, employees, and the company.

 

ADDITIONAL INFORMATION ONLINE

TSA Collective Bargaining By Senator Cardin.
Collective Bargaining: Gov. Scott Walker On Fox News.
Chris Christie Believes In Collective Bargaining On CBS.
What Is Collective Bargaining By Lisa Olson And WISN 12 News.
Government Union Collective Bargaining 101 By The Heritage Foundation.

12. TYPES OF COLLECTIVE BARGAINING ITEMS

COLLECTIVE BARGAINING ITEMS

The collective bargaining process may entail negotiations over a broad range of items called Collective Bargaining Items.  All such items are generally classified into three categories illustrated below.
 

TYPES OF COLLECTIVE BARGAINING ITEMS

   

Mandatory 
Bargaining Items

 

Voluntary 
Bargaining Items

 

Illegal 
Bargaining Items

These items are prescribed by federal law and include over 70 basic items as described below. Lack of agreement on mandatory issues can result in a legal  strike.

 

These items are all permissible items, not included in the mandatory items list that may become the subject of the negotiating process. A strike over these issues is not legal.

 

These items are not allowed by law to be negotiated.

13. AGREEMENT BETWEEN THE COMPANY AND EMPLOYEES

AGREEMENT BETWEEN THE COMPANY AND EMPLOYEES

Management and employees normally start the Collective Bargaining Process by presenting their demands to each other. These demands are examined and negotiated to bring about a possible agreement that will satisfy both parties. Finally, when all the differences are settled, a formal agreement is signed.

14. A LIST OF MANDATORY BARGAINING ITEMS

A list of Mandatory Bargaining Items is Illustrated below. (44)
 

A LIST OF MANDATORY BARGAINING ITEMS

  • Agency shop.
  • Arbitration.
  • Arbitrator's right to enforce law.
  • Arrangement for negotiation.
  • Bonus payments.
  • Cancellation of seniority upon plant relocation.
  • Change in insurance carrier and benefits.
  • Change of employee status to independent contractor.
  • Change of payment from hourly to salary.
  • Checkout.
  • Company houses.
  • Contract clause providing for supervisors' seniority in unit.
  • Discharge.
  • Discounts of company products.
  • Discriminatory racial policies.
  • Duration of agreement.
  • Employee physical examination.
 
  • Grievance procedures.
  • Group insurance - health, accident, life.
  • Holidays -paid.
  • Hours.
  • Job posting procedures.
  • Layoff plan.
  • Lunch period.
  • Management-rights clause.
  • Merit wages.
  • Most-favored nation clause.
  • Motor carrier.
  • Non-discriminatory hiring hall.
  • No-strike clause.
  • Overtime pay.
  • Partial plant closing.
  • Pension plan.
  • Piece rates.
  • Plant closing.
  • Plant close down and relocation.
  • Plant reopening.
  • Plant rules.
  • Price of meals provided by company.
 
  • Procedures for income tax withholding.
  • Production ceilings imposed by union.
  • Profit-sharing plan.
  • Prohibition against supervisors doing unit work.
  • Promotions.
  • Reinstatement of economic strikers.
  • Rest period.
  • Retirement age.
  • Safety.
  • Seniority.
  • Severance pay.
  • Shift differentials.
  • Sick leave.
  • Stock purchase plan.
  • Sub-contracting.
  • Super-seniority for union stewards.
  • Transfers.
  • Union security and checkout.
  • Vacation-paid.
  • Wages.
  • Work assignments.
  • Workloads.
  • Work rules.
  • Work schedule.
 

ADDITIONAL INFORMATION ONLINE

You can obtain additional information about collective bargaining procedures and other related issues provided by Institute Of Collective Bargaining online.

15. THIRD PARTY ASSISTANCE IN RESOLVING CONFLICTS

ASSISTANCE FOR RESOLVING CONFLICTS BY A THIRD PARTY

Sometimes, management and employees are not able to reach an agreement during the collective bargaining process. In this case, it is advisable to seek a Third Party Assistance, which may perform one of the following functions illustrated below.

THREE OPTIONS OF ASSISTANCE 
FOR RESOLVING CONFLICTS BY A THIRD PARTY

   

Fact-Finding Mission

 

Mediation

 

Arbitration

The objective here is to identify all relevant facts.

 

The objective here is to stimulate management and employees by means of listening, suggesting, communicating, explaining, and convincing both parties to reach an amicable agreement.

 

The objective here is to collect all pertinent facts related to the dispute and provide a final decision which will be binding on both parties.

 

ADDITIONAL INFORMATION ONLINE

Mock Arbitration By Victoria Law.
Basic Objections For Arbitration By Geek Quenn.
What Is Arbitration? By Jim McCartney, AAMS 2010.
What Is Arbitration? By Paul Meissner, CM Hart Hayslett.
Pre-Arbitration Hearing By Maris Stella Swift, Geek Queen.

16. BUSINESS MEDIATION PROGRAM

WHAT IS A BUSINESS MEDIATION PROGRAM?

A new program has become popular in recent years with many business owners. This program is called Business Mediation Program (BMP) and it is focused on resolving conflicting situations in non-legal ways, i.e. avoiding expensive and protracted legal options of resolving conflicts in Courts. 

The Business Mediation Program may address a broad range of Potential And Real Conflicts, which may exist between employers and employees, as well as between various businesses. It is advisable to give the mediation option a very strong consideration instead of opting for more expensive and complicated methods of resolving conflicts by litigating them in Courts.

Note:

Additional information regarding the Business Mediation Program (BMP) may be obtained from the Member Benefits Department at Lean Business Club by e-mail: Info@LeanBusinessClub.com

ADDITIONAL INFORMATION ONLINE

Mediation In Action By AcasorgUK.
What Is Mediation? By Beatrice Rosller, Chancen Manufactur.
Mediation: A Better Way of Doing Business - Part 1 By Terry Detrick.
Mediation: A Better Way Of Doing Business - Part 2 By Andrea Braeutigam.
Mediation: A Better Way Of Doing Business - Part 3 By Andrea Braeutigam.

17. A STRIKE

A STRIKE

Management should also be aware that if an agreement with employees is not reached, a Strike may ensue.  A strike is a process of an organized, temporary refusal by employees to provide services to the company.

It is essential, however, to prepare for the possibility of a strike and to have a proper Plan Of Action in the case of Work Stoppage. It must also be realized that each strike is a costly exercise and should be avoided. Please note, however, that strikes are generally happening only in large companies. Thus, small business owners should not be concerned with this issue.

18. THE FINAL AGREEMENT

THE FINAL AGREEMENT

When management and employees finally reach an agreement, a Contract must be signed by both parties. Such a contract should cover all relevant details agreed upon during the negotiating process and may include the following major subjects. (45)

ELEMENTS OF THE FINAL AGREEMENT 
BETWEEN A COMPANY AND ITS EMPLOYEES

1.

Management rights.

2.

Union security and dues checkout.

3.

Grievance procedures.

4.

Arbitration of grievances.

5.

Disciplinary procedures.

6.

Compensation rates.

7.

Hours of work and overtime.

8.

Benefits: vacations, holidays, insurance, pensions.

9.

Health and safety provisions.

10.

Employee security-seniority provisions.

11.

Contract expiration date.

19. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

20. THE LATEST INFORMATION ONLINE

 

LESSON FOR TODAY:
Labor-Management Relations Means
Being Able To See The Other Person's Point Of View!

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