Labor Relations Exam 1

What is a Labor Union

a group of workers seeking collective influence, voice or protection

Goals of a Union

Collective Bargaining, protection, influence

What is Union Density

Percentage of union employees in a given industry or country. Higher levels indicate greater union bargaining power.

Union Membership

Number of union members who are employees as a percentage of the total number of employees in a given industry or country

Unionization rate

total membership of unions in a profession, sector, or country

Labor relations

study of how employee representation typically through labor unions

Goals of Labor relation

strike a balance between efficiency, equity and voice

Efficiency

productive use of scarce resources for economic prosperity.

corporations want to increase their profit margins and get the most out of their employees

Equity

standard of fair treatment for employees

Voice

the ability of employees to have meaningful input into workplace decisions and raise concerns and influence decisions

Why isn’t efficiency enough

Equity and voice provide boundaries that drive efficiency. Workers are human beings and the quality of employment and the nature of the workplace are important.

Significant Challenge in Labor Relations

Conflicts between property rights (business) and workers rights, and the desire to balance them.

Contemporary US Labor Relations

Collective Bargaining

Detailed Union Contracts

Shifts in Membership

Collective Bargaining

representatives of the employer and employees negotiate employment terms and conditions (such as pay, policy, rights and resolutions)

Detailed Union Contract

result of collective bargaining and includes negotiated and mandatory items

Representation Gap

Employees want more representation in the workplace. 1/3 to ½ of nonunion workers want a union, especially in the private sector

Why Union Density has declines sharply in the private sector

Society has shifted from a manufacturing economy to a service and gig work economy

Taft Hartley Act restricted power of labor unions

Negative views towards unions

Property Rights

Legal ownership of resources like land, capital, and goods, allowing individuals or organizations to use, transfer or benefit from them

Labor Rights

protections granted to workers, including fair wages, safe working conditions and the right to tot unionize

4 Processes of Labor Relations

1. Unionization

2. Collective Bargaining

3. Contract Building

4. Resolution

4 schools of though

Neoliberalism

Human resource management school

Industrial relations school

Critical industrial relations school

Neoliberalism School

Focus on economy activity through the free market

Perfect competition gives optimal allocation and pricing
Unions are bad and interfere with wages and discipline

Remove government regulations

HR management school

Labor problems stem from poor management

must embrace motivated practices, compensation strategies, training and procedures

Unions are unnecessary if you have good management policies

Industrial Relations School

The labor problems stems from unequal bargaining power between corporations and individual workers

Unions are important bc they better balance corporate power

Critical Industrial Relations School

Grows out of earlier Marxist Industrial relations school

Radical perspective

Focuses on how dominant groups design and control institutions to serve their own interests

Restructure the nature of capitalism and introduce socialism

unions are important but inadequate

Unions effect on society

job satisfaction= less satisfied (due to poor conditions)

turnover=lower

productivity= mixed evidence

profits= lower (due to higher compensation

benefits=higher

Business impact of unions

unsafe conditions led to high turnover, low. productivity, and strikes which disrupted operations and profitability

Societal impact of Unions

Workers suffering, health hazards and inequality, fueling social unrest and demands for reforms, which pressures the government to intervene and improve labor standards

Todays critical issues

Growing labor market disparities

problems of low wage workers trying to move out of poverty

corporate pressures for cost control, quality and flexibility

Labor problems of the early 1900’s

undesirable outcomes of inoediquetable and contentious or oppressive and exploitative relationship

Long hours, low wages, unsafe conditions, insecurity

Great Uprising of 1877

Due to a 10% wage cut, workers on several railroads went on strike in July which quickly spread

Federal troops were sent in and it got violent

Laid the foundation for the future “society earthquake”

The Haymarket Tragedy

A rally to protest police repression of May Day strikers in Chicagos Haymarket square in support of the 8 hour workday

Linked to the KOL which led to its demise

ended violently- a bomb exploded and labor activists were executed

The Pullman Strike of 1894

Railroad strike that led to George Pullman laying of hundreds during economic recession- cut wages but kept rent and living costs high

Angry workers walked out in Mar

Halted rail traffic in 27 states

National Labor Union

Established in 1866 (first one)

reform unionism, importance of a labor party

didn’t like strikes and favored political action

supported 8 hour workday

Knights of Labor (KOL)

Established in 1869

uplift unionism- divine nature of man

strikes conflicted with goal of moral betterment and favored arbitration

included skilled and unskilled workers, women and black workers

The American Federation of Labor (AFL)

Established 1886

A union federation, not a union per se

Samual Gompers led this

Focused on skilled craft workers and practical gains such as wages and hours

strikes were the main weapon

The Industrial Workers of the World

Established in 1905

Revolutionary unionism and overthrow of capitalism

favored strikes but also violence and sabotage

New Deal

a collection of reforms by Roosevelt intending to restart economic growth in the Depression era in the US

Industrial school of thought (government regulation)

labor unrest and strikes were widespread

Closed shops

workplace where only union members can be hired

Open shops

opposed closed shops, promoting the idea that workers should not be forced to join a union or pay dues as a condition of employment

Right to Work Laws

prohibit requirements for workers to join a union or pay union dues, even if a union represents the workforce

designed to reduce union power and give workers the choice to opt out of union membership while still benefiting from union negotiated contracts

Wagner Act

Established workers rights to form unions, engage in collective bargaining and strike

Also created the National Labor Relations Board to enforce these rights

Taft Hartley Act

Amended the Wagner Act to limit union power.
Prohibited certain union practices (closed shops), allowed states to pass Right to Work laws, and required union leaders to affirm they were not communists

Restricted strikes and boycotts deemed harmful to the national economy

Landrum Griffin Act

Aimed to combat union corruption. It established rules for union elections, financial transparency and member rights within unions

Railroad Labor Act

Designed to avoid labor strikes in the railroad industry (and later Airline)

Promotes mediation and arbitration for dispute resolution and grants workers the right to organize and bargain collectively, but with more emphasis on keeping transportation services running during disputes

Statutory Laws

refers to laws formally enacted by legislative bodies

-business law

-labor law

-employement law

NLRB in Labor Relations

protects workers rights

addresses unfair practices

oversees union elections

Steps to forming a union

-Employees could initiate a strike and ask for support

-Union supporters campaign with sign cards or a petition

-authorization cards to show support

-secret ballot election in which the union and employer abide by majority decision

FOE

Providing workers with facts, options and personal experience

TIP

threaten, intimidate and make a promise to/spy on workers (illegal)

Employee free choice act

an amendment to the Wagner act that provides card check recognition, penalties for violation and contracts

Section 7 of Wager Act

Guarantees employees the right to self organization. to form and join unions, to bargain collectively, and to engage in concerted activities for mutual aid and protection

Section 8 of the Wagner Act

Employer Unfair Labor Practices

Interfering with or coercing employees in exercising their rights

dominating or supporting a union

discriminating to encourage or discourage membership

retaliating against employees for filing charges or giving testimony

refusing to bargain collectively with the union

Section 9 of the Wagner Act

Grants exclusive representation to majority supported unions and establishes collective bargaining rights over wages, hours and conditions

Union Unfair Labor Practices under the Taft Hartley Act

Coercing employees

Causing employer discrimination

engaging in secondary boycotts

charging excessive feed

featherbedding (being paid for work not preformed)

Section 7 of the Taft Hartley Act

adds employees right to refrain from union activities

When a labor complaint has merit

a hearing held before an administrative law judge who can order remedies

How many states currently have right to work laws

28 states

Janus v. Afscme (2018)

Mandatory public sector agency fees violate free speech, the public sector is now right to work

Authorization cards

preprinted form authorizing a union to represent the employee in collective bargaining. Signing cards show interest in unionization to the union, employer and NLRB. At least 30% of employees must sign cards to trigger an election, over 50% can lead to voluntary recognition

Secret Ballot elections

Conducted by the NLRB at the workplace using confidential ballots. Each eligible employee votes for or against union representation. The election determines if the union becomes certified as the employees bargaining representative e

Campaigning during union elections

Occurs between petition filing and the election

Both sides try to influence votes

Supervisor controversy

2006 Kentucky River decisions by the Bush era redefined '“assign”, “responsibly” and “independent judgement”. Critics argue these definitions make it easier to classify workers as supervisors, excluding them form NLRA protections and bargaining units

Employee Free Choice Act

Proposed (2009) to amend the Wagner Act and ease unionization by allowing card check recognition, imposing arbitration if no contract is reached within 2 years, increasing penalties for unfair labor practices, and court injections.

Grievance

formal complaint about a contract or workplace rule violation

Lockout

employers prevents workers from working to pressure the union

Four core labor relations processes

union organizing

collective bargaining

contract administration

conflict resolution

Craft unionism

organizes workers by trade or skill, such as electricians, historically associated with the AFL

Industrial unionism

organizes workers across hobs within an industry, such as auto factory workers, associates with the CIO

Congress of industrial organizations

organized workers across entire industries, including steel and auto production

Agency Shop

nonmembers pay representation fees rather than full dues

public sector agency fees were barred by Janus v AFSCME

Free Rider

Worker receives union negotiated benefits without financial supporting the union

Scope

who the union represents and which issues it covers (pay, benefits, schedules, safety and discipline

Soul

The unions purpose and values- economic gains, social change and worker empowerment

Mobilization

get members to take collective action (rally, petition, or demonstration)

Deep organizing

build lasting coworker relationships, worker leaders, trust and collective power

Three levels of union structure

Local Union
National Union

Federation

Local union

closest to workers, represent members at a workplace or local area

often participates in contract negotiations

National Union

coordinates local unions across workplaces or regions

provides legal help, training, research, support

Federation

brings multiple unions together

coordinated broad labor advocacy and campaigns