HRMD 610Week 6Assignment 2Spring 2019 110818General Instructions:   Each class is likely to be different.  If you assume you know what is required, you may make a mistake that can be

OER HRMD 610

Week 5

Introduction

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Last week, we learned about employee relations. This week, we learn about a related topic - labor relations, which is the term used to describe how an organization relates to and negotiates with its employees who are members of unions. Unions are independent entities that work with management on behalf of employee groups to secure and maintain wages, benefits, and workplace conditions. Not all companies engage in labor relations because not all companies have employees who belong to one or more unions. Who does belong to a union?

The U. S. Bureau of Labor Statistics reports each year on union membership. It provides the total membership number. It also shows the breakdown by public and private sector workers, the types of jobs that are involved, and the rates by demographic traits, such as race and gender. It also reports the locations in the country that are highly unionized and those that are not. Please take a look at the statistics by reviewing the “Union Members Summary” at (http://www.bls.gov/news.release/union2.nr0.htm). 

Why do you think the numbers are what they are, especially since, in general, “Union workers continue to receive higher wages than nonunion workers and have greater access to most employer-sponsored employee benefits” (United States Department of Labor, 2013, http://www.bls.gov/opub/mlr/2013/04/art2full.pbf).

In the United States, labor relations is a relatively new field, having gained popularity in the 1920s with the passage of the Railway Labor Act (RLA) in 1926. By some estimates, the railroad industry in the 1920s employed more than 2 million employees and was the main mode of long-range transportation for both people and goods (http://www.encyclopedia.com/topic/Railroads.aspx). Prior to the passage of the RLA, railroad workers often engaged in work stoppages and protests in order to bring attention to the low wages and unsafe working conditions they endured. In some cases, federal and/or state police were called to intervene to bring order and allow the railways to operate. The RLA was the first federal law that codified employees’ right to join a union and to elect union representatives without coercion or interference from their employer. The Act covers “freight and commuter railroads, airlines, companies directly or indirectly controlled by carriers who perform services related to transportation of freight or passengers and the employees of these railroads, airlines and companies” (Pennsylvania Federation, n.d., http://www.pennfedbmwe.org/Docs/reference/RLA_Simplified.html) and prohibits unions from calling a strike unless the union has exhausted the legally required negotiation and meditation processes. 

Nine years after the passage of the RLA, the Wagner Act (1935) was enacted. This law was broader in nature than the RLA in that it applies to almost all private-sector workers, not just those in the transportation industry. The Wagner Act is enforced by the National Labor Relations Board, and gives employees the right to participate in labor unions and prohibits management from engaging in unfair labor practices, such as punishing employees who engage in union activities and dominating or illegally assisting unions (Cornell University Law School, n.d., https://www.law.cornell.edu/wex/unfair_labor_practices_ulps). While the Wagner Act defined actions that were determined to be unfair for employers to engage in, the Taft-Hartley Act (1947) created a list of unfair labor practices for unions. Prohibited union activities include, but are not limited to, coercing employees to join and refusing to bargain in good faith. The Act also allows states to pass “right-to-work” laws that allow employees to refuse to join the union that acts on behalf of their employee group. One other law that heavily influences labor relations is the Landrum-Griffin Act (1959). This Act amended the Taft-Hartley Act and protects employees from possible abuse and corruption by union leaders. 

It should be noted that labor relations in the private sector are often very different from labor relations in the public sector due to the fact that many states expressly limit the ability of public sector employees to engage in collective bargaining. Also, federal government agencies have to adhere to the Federal Service Labor-Management Relations Statute (FSLMRS) enacted in 1978. It is also known as the Federal Labor Relations Act (FLRA), governed by the Federal Labor Relations Authority.  “The basic framework of the FSLMRS is similar to that of the NLRA; however, employee rights are more restricted under the FSLMRS, given the unique nature of their employer, the federal government. Federal employees have the right to organize and collectively bargain, but they cannot bargain over wages or strike. Additionally, the President has the power to unilaterally exclude an agency or subdivision from coverage under the FSLMRS if he determines that its primary work concerns national security” (Congressional Research Service, 2012, https://www.fas.org/sgp/crs/misc/R42526.pdf). 

The Wagner Act established the actions that must be taken for employees to obtain union certification (i.e., organize into one or more labor unions) and the Taft-Hartley Act established the actions employees must take to terminate their union affiliation. Both certification and decertification are overseen by the National Labor Relations Board (NLRB). Once a union is recognized in an organization, the company and the union must negotiate in good faith a contract that outlines the terms of the relationship between all parties (organization, union, and employees). The process of negotiating the contract is known as collective bargaining and the NLRB has determined that it must include certain topics such as wages, work hours, and working conditions. Other topics can be included if both the company and union agree to add them.   Collective bargaining cannot include topics that violate the NLRA or federal or state employment laws. 

In cases of labor disputes, unions have several options to encourage organizations to reach an agreement. They include strikes and boycotts. Organizations have options as well and can employ lockouts, which occur when the organization stops operations while negotiation is in progress.  Obviously, strikes, boycotts, and lockouts all take a financial toll on the organizations and employees involved. Companies can also experience negative publicity and reduced customer confidence, which can impact sales, market share, and stock price. As a result, it is important that HR professionals involved in labor relations be well-versed in the applicable laws, processes, and outcomes. This week’s readings will give you a sound understanding of those topics. 

There are times when an employee will disagree with the ways in which management implements or interprets the terms of the union contract. In such cases, the employee can file a grievance. In most organizations, grievance procedures have many steps that progress from informal discussions to formal mediation or arbitration. In some cases, the employee makes the initial complaint in writing; but, in many instances, the first step is simply a verbal statement of concern to the employee’s supervisor. It is best for all parties involved if a grievance can be resolved at the first step when usually only the employee and his/her supervisor are involved. If that is not possible, the grievance escalates and involves more and more people. The union representative assigned to the work place may become involved in the complaint and, if the issue still is not resolved, the union’s grievance committee and national representatives along with the organization’s HR Department, senior-level managers, and/or attorneys may step in to facilitate the process. At the highest level, grievances could be decided by an independent arbitrator or mediator. While both hear the facts and arguments of the grievance, only the arbitrator is authorized to make a ruling that is binding by all parties. As a result, many organizations prefer mediation, which is less formal than arbitration, does not involve witnesses or cross-examination, and does not have the potential to result in a binding decision (Done, 2015, http://www.siop.org/tip/backissues/tipjan99/3Done.aspx). If mediation is not successful, organizations can turn to arbitration.

References

Congressional Research Service. (2012). Federal labor relations statutes: An overview.  Retrieved August 31, 2016, from https://www.fas.org/sgp/crs/misc/R42526.pdf.

Cornell University Law School, (n.d.). Unfair Labor Practices. Retrieved August 31, 2016, from https://www.law.cornell.edu/wex/unfair_labor_practices_ulps.

Done, R. S. (1999). Resolving Conflict Within the Organization: Creating "Win-Win" Solutions With Mediation. Society for Industrial and Organizational Psychology, Inc., Retrieved August 31, 2016, from http://www.siop.org/tip/backissues/tipjan99/3Done.aspx.

Encyclopedia.com. (n.d.). Dictionary of American History. The Gale Group Inc. Retrieved August 31, 2016, from http://www.encyclopedia.com/topic/Railroads.aspx.  

The Pennsylvania Federation. (n.d.). The Railway Labor Act simplified. Retrieved August 31, 2016, http://www.pennfedbmwe.org/Docs/reference/RLA_Simplified.htm.

United States Department of Labor, Bureau of Labor Statistics. (2013). Differences between union and nonunion compensation, 2001–2011. Monthly Labor Review. Retrieved August 31, 2016, from http://www.bls.gov/opub/mlr/2013/04/art2full.pdf.

United States Department of Labor, Bureau of Labor Statistics. (2018). Union Members Summary. Retrieved July 6, 2018, from http://www.bls.gov/news.release/union2.nr0.htm.