3. • Labor RelationsLabor Relations
 The relationship between an employer and unionizedThe relationship between an employer and unionized
employees.employees.
 Also referred to as union–management relations orAlso referred to as union–management relations or
industrial relationsindustrial relations
 Refers to the system in which employers, workersRefers to the system in which employers, workers
and their representatives and, directly or indirectly,and their representatives and, directly or indirectly,
the government interact to set the ground rules for thethe government interact to set the ground rules for the
governance of work relationships.governance of work relationships.

4. Labor UnionLabor Union
 An organization of workers banded together toAn organization of workers banded together to
achieve economic goals.achieve economic goals.

5. Types of UnionsTypes of Unions
• Craft UnionsCraft Unions
 Workers in a specific skill,Workers in a specific skill,
craft, or trade.craft, or trade.
• Industrial UnionsIndustrial Unions
 Unions composed of all theUnions composed of all the
workers in an industry.workers in an industry.
• Employee AssociationsEmployee Associations
 Organizations that functionOrganizations that function
as labor unions.as labor unions.

6. Unions and Right-to-WorkUnions and Right-to-Work
• Closed ShopClosed Shop
 All prospective employees must be members of the recognizedAll prospective employees must be members of the recognized
union before they can be employed.union before they can be employed.
• Union ShopUnion Shop
 All employees must join the union within a specified period or beAll employees must join the union within a specified period or be
fired.fired.
• Agency ShopAgency Shop
 All employees must pay union dues even if they choose not toAll employees must pay union dues even if they choose not to
join the union.join the union.
• Maintenance-of-Membership ClauseMaintenance-of-Membership Clause
 An employee who has joined the union must maintain thatAn employee who has joined the union must maintain that
membership as a condition of employment.membership as a condition of employment.

7. Administration of Labor LawsAdministration of Labor Laws
• National Labor Relation Board (NLRB)National Labor Relation Board (NLRB)
 The five-person NLRB has the power to enforce theThe five-person NLRB has the power to enforce the
basic labor laws.basic labor laws.
 Basic functions are:Basic functions are:
 To hold an election to establish the bargaining agent forTo hold an election to establish the bargaining agent for
employees of a given firm.employees of a given firm.
 To certify unions as the exclusive bargaining agent forTo certify unions as the exclusive bargaining agent for
employees.employees.
 To investigate charges of unfair labor practices against theTo investigate charges of unfair labor practices against the
employer or the union.employer or the union.
 To see that unfair labor practices either are not committed orTo see that unfair labor practices either are not committed or
are punished.are punished.

8. Rights of Employees
• To organize.
• To bargain collectively.
• To expect no discrimination against them by management
because they are union members.
• To expect no discrimination against them by management if they
bring charges of unfair labor practices against the employer.
• To get a job without first being a member of a union.
• Not to have to join a union unless the union and the employer
have signed a valid union-shop agreement in one of the states
that do not have right-to-work laws.
• Not to be charged exorbitant initiation fees and dues by a union
with a valid union-shop agreement.
• To receive financial reports from the union.

9. Unfair Labor Practices of Unions
• To coerce employees into or restrain them from engaging in union
activities.
• To force management to discriminate against employees in
violation of the law.
• To refuse to bargain in good faith.
• To require managers to pay money for work not done.
• To engage in a strike or boycott to force management to commit
illegal acts.
• To charge excessive initiation fees and dues where there is a
union shop.

10. Unfair Labor Practices of Employers
• To interfere with, restrain, or coerce employees who are exercising
their rights under the law.
• To dominate or interfere with the forming or administering of unions,
or to contribute support to them.
• To discriminate in hiring or in any other terms of employment in
such a way as to encourage or discourage membership in a union.
• To discharge or otherwise discriminate against employees for filing
charges against the employer or testifying under the law.
• To refuse to bargain with the union representative.

11. Union Principles and ObjectivesUnion Principles and Objectives
• Union PrinciplesUnion Principles
 Strength through unity (solidarity)Strength through unity (solidarity)
 Equal pay for the same jobEqual pay for the same job
 Employment practices based on seniorityEmployment practices based on seniority
• Union ObjectivesUnion Objectives
 Higher payHigher pay
 Shorter working hours (daily, weekly, or annual basis)Shorter working hours (daily, weekly, or annual basis)
 Improved working conditions, both physical andImproved working conditions, both physical and
psychologicalpsychological
 Improved security for both the person and the jobImproved security for both the person and the job

12. Union Methods to Achieve UnionUnion Methods to Achieve Union
ObjectivesObjectives
• To organize a firm’s employees.To organize a firm’s employees.
• To become recognized as the employees’To become recognized as the employees’
exclusive bargaining agent.exclusive bargaining agent.
• To engage in collective bargaining.To engage in collective bargaining.
• To go on strike or threaten to strike.To go on strike or threaten to strike.
• To process grievances.To process grievances.

13. Union Appeals to Employees’ DesiresUnion Appeals to Employees’ Desires
• Union organizers appeal to five main desires ofUnion organizers appeal to five main desires of
employees:employees:
 Job protectionJob protection
 Interference runningInterference running
 Participation in managementParticipation in management
 Economic gainsEconomic gains
 Recognition and participationRecognition and participation

14. Collective BargainingCollective Bargaining
• Collective BargainingCollective Bargaining
 The process by which representatives of theThe process by which representatives of the
employer and the employees meet at reasonableemployer and the employees meet at reasonable
times and places to confer in good faith over wages,times and places to confer in good faith over wages,
hours, and other terms and conditions ofhours, and other terms and conditions of
employment.employment.
• Alternatives to a Bargaining ImpasseAlternatives to a Bargaining Impasse
 Call in an outside mediator who will bring the partiesCall in an outside mediator who will bring the parties
together and try to help them reach an agreement.together and try to help them reach an agreement.
 Agree to bring the issue to an outside arbitrator, whoAgree to bring the issue to an outside arbitrator, who
will make a decision binding on both parties.will make a decision binding on both parties.
 For the union to go on strike or for management toFor the union to go on strike or for management to
stage a lockout.stage a lockout.

15. Conducting a Strike or LockoutConducting a Strike or Lockout
• StrikeStrike
 When employees withhold theirWhen employees withhold their
services from an employer.services from an employer.
• PicketingPicketing
 Striking employees walking backStriking employees walking back
and forth outside the place ofand forth outside the place of
employment, usually carrying aemployment, usually carrying a
sign.sign.
• LockoutLockout
 A closing of a company’sA closing of a company’s
premises to the employees andpremises to the employees and
refusing to let them work.refusing to let them work.

16. Reaching an AgreementReaching an Agreement
• Agreement or ContractAgreement or Contract
 A document preparedA document prepared
when an accord has beenwhen an accord has been
reached to bind thereached to bind the
company, union, andcompany, union, and
workers to specificworkers to specific
clauses in it.clauses in it.
Typical Agreement ClausesTypical Agreement Clauses
1.1. Union recognitionUnion recognition
2.2. WagesWages
3.3. Vacation and holidaysVacation and holidays
4.4. Working conditionsWorking conditions
5.5. Layoffs and rehiringLayoffs and rehiring
6.6. Management prerogativesManagement prerogatives
7.7. Hours of workHours of work
8.8. SenioritySeniority
9.9. ArbitrationArbitration
10.10. Renewal clauseRenewal clause

17. Living with the AgreementLiving with the Agreement
• Supervisors’ Rights under the AgreementSupervisors’ Rights under the Agreement
1.1. To decide what work is to be done.To decide what work is to be done.
2.2. To decide how, when, and where it will be done.To decide how, when, and where it will be done.
3.3. To determine how many workers are needed to do the work safely.To determine how many workers are needed to do the work safely.
4.4. To decide who will do each job, as long as the skill classifications andTo decide who will do each job, as long as the skill classifications and
seniority provisions are observed.seniority provisions are observed.
5.5. To instruct, supervise, correct, and commend employees in theTo instruct, supervise, correct, and commend employees in the
performance of their work.performance of their work.
6.6. To require that work performance and on-the-job personal behaviorTo require that work performance and on-the-job personal behavior
meet minimum standards.meet minimum standards.
7.7. To recommend promotions and pay increases, as long as they do notTo recommend promotions and pay increases, as long as they do not
violate the union agreement.violate the union agreement.
8.8. To administer discipline according to the agreed-upon procedure.To administer discipline according to the agreed-upon procedure.

18. Types of Legally Required BenefitsTypes of Legally Required Benefits
• Social Security and MedicareSocial Security and Medicare
 Retirement benefitsRetirement benefits
 Disability and survivorsDisability and survivors
• Workers’ CompensationWorkers’ Compensation
 On-the-job injury insuranceOn-the-job injury insurance
• Unemployment InsuranceUnemployment Insurance
 Benefits and compensationBenefits and compensation
• Family and Medical LeaveFamily and Medical Leave
 Up to 12 weeks unpaid leaveUp to 12 weeks unpaid leave
 Continued health care benefits and return to workContinued health care benefits and return to work