Labor Relations Development, Structure, Process Twelfth ...

Labor Relations

Development, Structure, Process Twelfth Edition

John A. Fossum

Center for Human Resources and
Labor Studies

Carlson School of Management

University of Minnesota

Mc
Graw
HEdiullcation

Brief Contents

About the Author v 9 Wage and Benefit Issues in
Bargaining 258
Preface vii
10 Nonwage Issues in
1 Introduction 1 Bargaining 308

2 The Evolution of American 11 Contract Negotiations 334
Labor 27
12 Impasses and Their
3 Employment Law and Federal Resolution 408
Agencies 62
13 Union-Management
4 Union Structure and Cooperation 444
Government 95
14 Contract Administration 479
5 Unions: Member and Leader
Attitudes, Behaviors, and 15 Grievance Arbitration 509
Political Activities 127
16 Public Sector Labor
6 Union Organizing Relations 543
Campaigns 157
17 A Survey of Labor Relations in
7 Union Avoidance: Rationale, Market Economies 580
Strategies, and Practices 197
Glossary 613
8 The Environment for Author Index 625
Bargaining 220 Subject Index 633

xi

Table of Contents

About the Author v Early Unions and the Conspiracy
Preface vii
Doctrine 29
Chapter1 Philadelphia Cordwainers 29
Commonwealth v. Hunt 29
Introduction 1 Pre-Civil War Unions 30
The Birth of National Unions 31
Contemporary Labor Relations 4 The National Labor Union 31
What Unions Do 5 The Knights of Labor 32
Collective Behavior 7 The American Federation of Labor 33
Labor Unrest 34
Growp CoAeswengss 7 The Industrial Workers of the World and the
Class Consciousness 7 Western Federation of Miners 37
External Threat 8 The Boycott Cases 39
Why Workers Unionize 9
Catalystfor Organization 9 Early Legislation 40
Individuais and Union Organizing 10 Trade Union Success and Apathy 41
Beliefs about Unions 13
Willingness to Votefor Union Representation 14 World War I 41
The Locol Community 15 The American Plan 41
Union Member Beließ 16 The End ofan Era 42
Unions, their Members, and Decision Industrial Unions 42
Making 16 The Industrial Union Leadership 43
Labor Unions in the "New Normal" 17 Organizing the Industrial Workforce 44
Why has the Labor Movement Been Legislation 45
in Decline? 18 Norris-LaGuardia Act (1932) 45
Transformation in Industrial Relations National Industrial Recovery Act (1933) 45
Systems 20 Wagner Act (National Labor Relations Act),
What Should Unions Do? 22
Summary and Preview 23 1935 46
Plan of the Book 24 Employer Intransigence 46
Key Terms 26
Selected Web Sites 26 Constitutionality of the Wagner Act 47

Chapter 2 27 Labor Power 48
The Evolution of American Labor World War II 50
Reconversion 51
Union Philosophies and Types in the
United States 28 Changing the Balance 52
Taft-Hartley Act 52
The New Production Paradigm 53

Retrenchment and Merger 53

Merger 54
Corruption 54

Landrum-Griffin Act 55

xii

Public Sector Union Growth 55 Table of Contents xiii
Federal Executive Orders 55
Civil Service Reform Act 56 Other Major Employment Laws 77
Effects of Implementation of Laws 82
Labor in Crisis and Transition 56 Federal Departments and Agencies 82
Rising Employer Militancy 56
Striker Replacements 57 Department of Labor 82
New Union Leadership 58 Federal Mediation and Conciliation Service 86
National Mediation Board 86
Summary 59 National Labor Relations Board 87
Discussion Questions 60 Pension Benefit Guaranty Corporation 90
Key Terms 61 Labor Law Reform: A Continuing
Selected Web Sites 61 Controversy 90
Trade Treaties 93
Chapter 3 Summary 93
Discussion Questions 94
Employment Law and Federal Key Terms 94
Selected Web Sites 94
Agencies 62
Chapter 4
Overview 62
Railway Labor Act (1926) 64 Union Structure and
Norris-Laguardia Act (1932) 66 Government 95
Wagner and Taft-Hartley Acts
The Local Union 95
(As Amended) 68 Local Union Democracy 97
Definitions 68 Functional Democracy 99
National Labor Relations Board 70 Independent Local Unions 102
Unfair Labor Practices 71
Representation Elections 73 National Unions 102
Unfair Labor Practice Charges and National Union Goals 104
NLRB Procedures 73 National Union Jurisdictions 105
Right-to-Work Laws 73 National Structure 106
Religious Objections to Union Membership in National-Local Union Relationship 114
Health Care Organizations 73 National Union Headquarters Operations 115
Federal Mediation and Conciliation Service 74 National Union Governance and Politics 117
National Emergency Disputes 74 National Unions and Public Policy 118
Suits, Political Action, and Financial
Relationships 74 TheAFL-CIO 118
Summary and Overview 74 The Change to Win Coalition 119
Landrum-Griffin Act (1959) 75 State and Local Central Bodies 120
Bill of Rights for Union Members 75
Reports Required ofUnions and Employers 75 Overview ofthe Union Hierarchy 121
Trusteeships 76 National Union Mergers 121
Other Federal Laws and Regulations 76 Union Finances 122
Byrnes Act (1936) 76
Copeland Anti-Kickback Act (1934) 76 Financial Malfeasance 123
Racketeer Inßuenced and Corrupt Organizations Pension Administration 124
Acf (1970; 76 Summary 125
Discussion Questions 125
Key Terms 126
Selected Web Sites 126

xiv Table of Contents

Chapter 5 GfMmzZ OrgßMz'zz'Mg Campaig?: Kw/es 174
Union Strategy and Tactics 176
Unions: Member and Leader Management Strategy and Tactics 182
Attitudes, Behaviors, and Political The Role of the NLRB 185
Activities 127 Election Certifications 185
Setting Aside Elections 185
The Individual and the Local Union 128 The lmpact of Board Remedies 186
Joining, Socialization, and Leaving 128 Election Outcomes 186
Member Participation 131 Other Types of Representation Oranges 187
Commitment to the Union 136 Contextual Characteristics Related to Election
Local Union Effectiveness and Member Results 187
Behavior 140 First Contracts 189
Worker Centers 191
The Individual as a Union Officer 140 "Members-Only" Representation? 192
Stewards 140 Summary 193
Local Officers 142 Discussion Questions 193
Key Terms 194
National Unions and Their Environment 144 Web Sites 194
Employment Law and Administration 144 Case: GMFC Custom Conveyer
The Economy 145 Division 195
Globalization and Organized Labor 145
Political Action 148 Chapter 7
Lobbying 152
Use of Union Duesfor Political Activity 153 Union Avoidance: Rationale,
Labor and the Progressive Political Agenda 154
Strategies, and Practices 197
Summary 155
Discussion Questions 156 Historical Overview 198
Key Terms 156 Capitalistic and Trade Union Philosophies 198
Selected Web Sites 156 Employer Resistance before World War 11 198
The Corporatist Period 199
Chapter 6 Union-Free Employment 200

Union Organizing Campaigns 157 The Economic Rationale 200
Inflexible Rules 201
Organizing and Union Effectiveness 158 Profitability 201
How Organizing Begins 158 Shareholder Vahle 201
Company Investment Decisions 202
T&e framework/br Orgam'zmg 159 Industrial Structure 202
Representation Elections 161
Bargaining-Unit Determination 164 Union-Free Approaches 203
Legal Constraints 164 Environmental Factors Associated with Union
Jurisdiction ofthe Organizing Union 165 Avoidance 203
The Unions Desired Unit 165 Wage Policies 204
The Employer's Desired Unit 166 Nonwage Policies 205
NLRB Policy 167 Employment Security 206
Other Issues in Unit Determination 169 Employee "Voice" Systems 207
The Railway Labor Act and Airline Mergers 170 Other Techniques 210
The Organizing Campaign 171
Employer Size and Elections 173

Table of Contents xv

Preventive Programs 213 Centralization and Decentralization in 255
Management Campaign Tactics in Bargaining 251
Changes in Industrial Bargaining Structures
Representation Elections 214 and Outcomes 252
Decertifications 216 Public Policy and Court Decisions 253
Job Structuring 217 lnfluence of Bargaining Power and Structure
Summary 217 Summary 255
Discussion Questions 218 Discussion Questions 256
Key Terms 218 Key Terms 256
Case: Locating the New Recreational Vehicle Case: Material Handling Equipment
Association Bargaining Group 257
Plant 219
Chapter 9
Chapter 8
Wage and Benefit Issues in
The Environment for Bargaining 220
Bargaining 258
The Legal and Political Structure 221
Regulation of Employment 222 Union and Employer Interests 259
Waxing and Waning of Corporatist Approaches Components of Wage Demands 259
in U.S. Labor Relations 224
Equity 259
Public Policy and Industrial Organization 225 Ability to Pay 260
Competition and Concentration in Standard ofLiving 261
Pay Programs 261
Markets 226 Pay Level 263
Regulation and Deregulation 227 Pay Structure 264
Global Competition 228 Pay Form 270
Labor Force Demographics and Employer Pay System 283
Union Effects on Pay 291
Growth 230 Union Effects on Pay Levels 291
Changes in Consumer Demand 231 Union Effects on Pay Structures and Inequality 297
Employer Interests 232 Union Effects on Pay Form 299
Union Effects on Pay Systems 300
Labor as a Derived Demand 232 Union Effects on Firm Performance 300
Labor-Capital Substitution 235 Productivity 300
Labor Markets 237 Organizational Investment and Groivth
Employee Interests 238 Decisions 302
Union Interests 239 Flexibility and Innovation 303
Bargaining Power 239 Profitability and Returns to Shareholders 303
Ability to ContinueOperations (or Take a Strike) 240 Wage Clauses Found in Contracts 305
Union Bargaining Power 242 Summary 305
Bargaining Structures 242 Discussion Questions 306
Multiemployer Bargaining 243 Key Terms 306
Industrywide Bargaining 245 Selected Web Sites 306
National/Local Bargaining 246 Case: Health Gare Bargaining and the
Wide-Area and Multicraft Bargaining 246 PPACA 307
Pattern Bargaining 247
Conglomerates and Multinationals 248
Coordinated Bargaining 249
Graft Units within an Employer 251

xvi Table of Contents

Chapter10 Bargaining Books 341

Nonwage Issues in Bargaining 308 Strike Preparation 342

Nonwage Provisions of Current Contracts 309 Strategy and Logistics 342
Union and Management Goals for Nonwage
Union Preparation 345
Issues 310
Design of Work 310 National-Level Activities 345

Work Design History 310 Local-Level Preparations 346
Hours of Work 315
Negotiation Requests 347
Federal Wage and Hour Laws 315
Collective Bargaining and Work Schedules 316 What Is Bargaining? 347
Entitlements to and Restrictions on Overtime 317
Shift Assignments and Differentials 317 Good-Faith Bargaining 349
Alternative Work Schedules 317
Faid Time Off 318 Behavioral Theories of Labor
Length of Contracts 318
Union and Management Rights 319 Negotiations 350
Discipline and Discharge 320
Grievance and Arbitration 321 Distributive Bargaining 350
Strikes and Lockouts 321
Union Security 322 Imfegrafwe BargazmMg 353
Working Conditions and Safety 323
Seniority and Job Security 324 Attitudinal Structuring 353
Layoff Procedures 325
Promotions and Transfers 325 Intraorganizational Bargaining 354
Time Awayfrom Work 326
Effects of Unions on Nonwage Outcomes 326 Bargainers and the Bargaining
Union Influences on Hiring 326
Promotions, Transfers, and Turnover 327 Environment 355
Retirement Programs 329
Job Safis/acfion 330 The Process of Negotiation 355
Summary 332
Discussion Questions 333 Attributes and Behaviors of the Parties 358
Key Terms 333
Case: GMFC Attitüde Survey 333 Perceptions of the Bargainers 361

Chapter 11 The Roles of the Actors in Negotiations 362

Contract Negotiations 334 Contract Negotiations 363

Management Preparation 336 Initial Presentations 364
Negotiation Objectives and the Bargaining Team 336
Revieiuing the Expiring Contract 336 BargßzmM# on Jssz/fg 364
Preparing Data for Negotiations 337
Identification of Probable Union Demands 338 Tactics in Distributive Bargaining 364
Costing the Contract 338
Committing to a Position 365

DeWZz'Mcs 366

Settlements and Ratifications 366

NoMagygemfMf 367

The Bargaining Environment and

Outcomes 367

Summary 370

Discussion Questions 371

Key Terms 371

Mock Negotiating Exercise 372

A. Contract Costing 372

B. Approach 378

C. Demands 378

D. Organization for Negotiations 380

E. Negotiations 381

F. Additional Information 381

Agreement between General Manufacturing

& Fabrication Company, Central

City, Indiana, and Local 384, United

Steelworkers of America AFL-CIO 386

Table of Contents xvii

Chapter12 Integrative Bargaining 447

Impasses and Their Resolution 408 MwfzW-GazMS Bargm'MZM# 448

Impasse Definition 408 FMCS Innovations 449
Third-Party Involvement 409
Mediation 409 The Use and Effects of Interest-Based

Mediator Behavior and Outcomes 410 Bargaz'm'Mg 451
Mediator Backgrounds and Training 413
Mediator Activity 413 Creating and Sustaining Cooperation 453
Fact-Finding 415
Fact-Finding and the Issues 415 Methods of Cooperation 455
Interest Arbitration 416
Review of Third-Party Involvements 416 Areawide Labor-Management
Strikes 418
Strike Votes and Going Out 418 Committees 455
Picketing 420
Slowdowns 422 Joint Labor-Management Committees 456
Corporate Campaigns 423
Coordinated Campaigns 424 Workplace Interventions 457
Employer Responses to Strikes 425
Rights of Economic Strikers 428 Alternative Governance Forms 464
Evidence on the Incidence, Duration, and Effects
of Strikes 429 Union Political Processes and the Diffusion
Boycotts 435
Lockouts 437 of Change 464
Perishable Goods 437
Multiemployer Lockouts 438 MamagemeMt Sfrafegy 466
Single-Employer Lockouts 439
Bankruptcies 439 Research on the Effects of Cooperation
Summary 441
Discussion Questions 442 acmss OrgaMz'zak'oMS 467
Key Terms 442
Selected Web Sites 442 Research on the Long-Term Effects of
Gase: GMFC Impasse 443
Cooperation 470
Chapter 13
High-Performance Work Organizations 471
Union-Management
Cooperation 444 Workplace Restructuring 472

Labor and Management Roles and the The Legality of Cooperation Plans 473
Changing Environment 444
Organizing and the Evolving Bargaining Employee Stock Ownership Plans 474
Relationship 445
Preferences of Management and Labor 446 The Diffusion and Institutionalization
Levels of Cooperation and Control 446
of Change 475

Maintaining Union-Management Cooperation

z» f/ze face of CWzge 475

Summary 476

Discussion Questions 477

Key Terms 477

Selected Web Sites 477

Case: Continuing or Abandoning the Special-

Order Fabrication Business 478

Chapter14

Contract Administration 479

The Duty to Bargain 479
Conventional Contract Administration 480
Empowered Work Environments 480

Issues in Contract Administration 480
Discipline 481
Incentives 481
Work Assignments 482
Individual Personnel Assignments 482

xviii Table of Contents

Hours of Work 482 Boys Markets Relaxes
Supervisors Döing Production Work 483 Norris-LaGuardia 512
Production Standards 483 14 Penn Plaza and Deferral of Statutory
Grievances to Arbitration 512
WortiMg CoWz't/'oMS 483 Additional Supreme Court Decisions on
SwbcoMfrach'Mg 483 Arbitration in Unionized Firnis 513
Outsourcing 484 NLRB Deferral to Arbitration 515
Fast Practice 484
Arbitration Procedures 516
Rules 484 Prearbitration Matters 516
Discrimination 484 Selection of an Arbitrator 516

PreWemce qf isswes 485 Sources and QWf/icßfz'oMS qf
Grievance Procedures 485 Arbitrators 518
Prehearing 521
Sfeps in f&e GriepgMce Procedura 485
Time Involved 489 Hearing Processus 522
Methods of Dispute Resolution 491 Representatives ofthe Parties 523
Project Labor Agreements 491
Grievance Mediation 491 PresenfafzoHoffbeGKse 523
Wildcat Strikes 492 Posthearing 523
Discipline for Wildcat Strikes 493 Evidentiary Rules 523
Investigations and Evidence 494 Arb'fra/ RemWies 525
Employee and Union Rights in Grievance Preparation of the Aioard 525
Processing 495 Procedural Difficulties and Their
To What Is the Employee Entitled? 495 Resolutions 526
Fair Representation 496
Grievances and Bargaining 498 Ezpedz'W Ar&z'fratzo» 528
Union Responses to Management Action 499 Inadequate Representation 529
Fractional Bargaining 499
Union Initiatives in Grievances 500 Arbitration of Discipline Gases 529
Individual Union Members and Grievances 502 Role of Discipline 529
Effects of Grievances on Employers and Evidence 530
Employees 504 Uses of Punishment 530
Summary 506 SuWamcf Abwse Coses 532
Discussion Questions 507 Sexual Harassment Violations 532
Key Terms 507
Gase: New Production Equipment: Greater Fighting 533
Efficiency with Less Effort Work-Family Conflicts 533
or a Speedup? 507 Off-Duty Speech and Expression of
Opinions 533
Chapter15
Grievance Arbitration 509 Social Media Postings and Tiveets 534
E-Mail Abuse 535
What Is Arbitration? 509 510 Arbitration of Past-Practice
Development of Arbitration Disputes 535
Arbitral Decisions and the Role
Lincoln Mills 510 of Arbitration 536
Steelworkers'Trilogy 510 Summary 538
Discussion Questions 538
Key Terms 538
Selected Web Sites 538

Cases 539 Table of Contents xix
Case 1 539
Case 2 540 Chapter17
Case 3 541 A Survey of Labor Relations in
Case 4 541 Market Economies 580

Chapter 16 The Development of Labor Movements 581
The Structure of Labor Movements 583
Public Sector Labor Relations 543
Works Councils 584
Public Sector Labor Law 543 Globalization 586
Federal Labor Relations Law 544 Organizing and Representation 590
State Labor Laws 546 Bargaining Issues 595
Bargaining Structures 596
Public Employee Unions 551 Impasses 600
Bargaining Rights and Union-Management Cooperation 602
Contract Administration 604
Organizing 558 Public Sector Unionization 607
Public Sector Bargaining Processes 559 Comparative Effects of Unionization 607
Europe, the Euro, the North-South
Bargaining Structures 559 Divide, and Demographics—Pacing the
Management Organization for Future 609
Bargaining 560 The Euro 609
Multilateral Bargaining 560 The North-South Divide 610
Bargaining Outcomes 562 Demographics 611
Union-Management Cooperation 566 Summary 611
Impasse Procedures 568 Discussion Questions 612
Fact-Finding 568 Key Terms 612
Arbitration 569
Strikes 574 Glossary 613
Summary 576
Discussion Questions 577 Author Index 625
Key Terms 577
Case: Teacher Bargaining at Pleasant Subject Index 633
Ridge 578