Chapter 13 – Enhancing Union-Management
relations
Labour Union – organization of workers acting together to negotiate
wages and working conditions of employees
Union-management (labour) relations – Dealings between labor
unions and businesses.
Why join a Union
To combat alienation
Union membership increases job security
If dissatisfied with elements of job
Personal backgrounds
Employment contract states that they must join a union
Collective bargaining
*Process of negotiating a labour contract with management
The First Contract
o Preparation by both parties
o Back and forth bargaining
o If no agreement union strikes (rare for first contract)
o If agreement reached ratification by union members
needed
o If union accepts contract is legally binding otherwise not
Later Contracts
o Preparations occur near expiration date of contract
o Problems arising from first contract discussed
o Pressure builds as deadline draws near
o Union takes vote whether to strike if no agreement is
reached at expiration date
o More pressure on businesses if strike looming
Payment discussed in contacts
Forms of payment
o Primary – wage/salary and benefits for employees
o Deferred compensation - pension and retirement
Magnitude of Pay
o Unions try to keep constant nationally
o Main indicator = cost of living
o Financial position of employer is important
o Also affected by benefits employees receive
Pay Determinants
o Individual pay is addressed
o Management want pay to be linked with productivity
, o Unions want pay to be linked with Seniority
o Management only want profit sharing for long term
employees
o Unions want profit sharing for all employees
Working hours
o Overtime is more than 40 hours a week
o Must be at least 1 and a ½ times normal pay
o Employees with less desirable shifts get paid premiums
Security
o Job Security – protection against loss of employment
o Union security – Protection of unions position as employees
bargained
Greater ratio of union member: non-union members = more
security
1. Closed shop – workers must join union before they can
be hired
2. Union Shop – new employees must join union after
specific time
3. Agency shop – Employees can choose to join or not
4. Maintenance shop – if join union remain member as long
as at certain firm
Management rights
o Firm wants to control
1. Who gets hired
2. Work schedule
3. Discipline
o Unions want to control the same
o Some cases union members have seat on board of directors
Grievance procedures – formally resolving employee complaints
1. Original Grievance – when employee believes he/she is being
treated unfairly. With supervisor and employee
2. Broader discussion – If problem not resolved in first discussion
2nd one is held with supervisor, employee and steward (union)
3. Full-Scale Discussion – Not resolved in 2nd. Same as above and
union grievances council and higher level manager
4. Arbitration – Neutral party hears both sides of story and
decides
Types of strikes
o Picketing – Marching up and down with signs informing public
o Wildcat strike – Strike not approved by union
o Slowdowns – employees do jobs at slower rate
o Boycott – Refusing to trade with certain firm
o Lockout – Firm not allowing employees into workplace
relations
Labour Union – organization of workers acting together to negotiate
wages and working conditions of employees
Union-management (labour) relations – Dealings between labor
unions and businesses.
Why join a Union
To combat alienation
Union membership increases job security
If dissatisfied with elements of job
Personal backgrounds
Employment contract states that they must join a union
Collective bargaining
*Process of negotiating a labour contract with management
The First Contract
o Preparation by both parties
o Back and forth bargaining
o If no agreement union strikes (rare for first contract)
o If agreement reached ratification by union members
needed
o If union accepts contract is legally binding otherwise not
Later Contracts
o Preparations occur near expiration date of contract
o Problems arising from first contract discussed
o Pressure builds as deadline draws near
o Union takes vote whether to strike if no agreement is
reached at expiration date
o More pressure on businesses if strike looming
Payment discussed in contacts
Forms of payment
o Primary – wage/salary and benefits for employees
o Deferred compensation - pension and retirement
Magnitude of Pay
o Unions try to keep constant nationally
o Main indicator = cost of living
o Financial position of employer is important
o Also affected by benefits employees receive
Pay Determinants
o Individual pay is addressed
o Management want pay to be linked with productivity
, o Unions want pay to be linked with Seniority
o Management only want profit sharing for long term
employees
o Unions want profit sharing for all employees
Working hours
o Overtime is more than 40 hours a week
o Must be at least 1 and a ½ times normal pay
o Employees with less desirable shifts get paid premiums
Security
o Job Security – protection against loss of employment
o Union security – Protection of unions position as employees
bargained
Greater ratio of union member: non-union members = more
security
1. Closed shop – workers must join union before they can
be hired
2. Union Shop – new employees must join union after
specific time
3. Agency shop – Employees can choose to join or not
4. Maintenance shop – if join union remain member as long
as at certain firm
Management rights
o Firm wants to control
1. Who gets hired
2. Work schedule
3. Discipline
o Unions want to control the same
o Some cases union members have seat on board of directors
Grievance procedures – formally resolving employee complaints
1. Original Grievance – when employee believes he/she is being
treated unfairly. With supervisor and employee
2. Broader discussion – If problem not resolved in first discussion
2nd one is held with supervisor, employee and steward (union)
3. Full-Scale Discussion – Not resolved in 2nd. Same as above and
union grievances council and higher level manager
4. Arbitration – Neutral party hears both sides of story and
decides
Types of strikes
o Picketing – Marching up and down with signs informing public
o Wildcat strike – Strike not approved by union
o Slowdowns – employees do jobs at slower rate
o Boycott – Refusing to trade with certain firm
o Lockout – Firm not allowing employees into workplace
