Module 5: Employee and Labor Relations. 22% PHR (49 questions) 18% SPHR (41 questions)
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1 Module 5: Employee and Labor Relations 22% PHR (49 questions) 18% SPHR (41 questions) 5-1
2 Milestones in Employee and Labor Relations Knights of Labor organized 1869 AFL founded 1886 Clayton Act 1914 Sherman Anti- Trust Act 1890 Railway Labor Act 1926 Wagner Act (NLRA) and founding of NLRB and Social Security Act 1935 Norris- LaGuardia Act 1932 National Industrial Recovery Act 1933 Taft- Hartley Act 1947 SHRM 1948 Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) 1959 Union membership peaks 1950s Industrial revolution 5-2
3 Why People Join Unions 5-3
4 Recent Union Trends 5-4
5 National Labor Relations Act (Wagner Act) Key act that applies to all workers, not just union workers. Allows workers to: Organize themselves. Form, join, or assist labor organizations. Bargain collectively. Engage in concerted activity for the purpose of mutual aid and protection. 5-5
6 Employee Relations and EEO Laws EEO laws prohibit employment discrimination. Laws provide protection that some employees once looked to unions to provide. The EEOC is responsible for handling complaints related to discrimination. As a general rule, complaint charges must be filed within 180 days of the alleged discrimination. EEOC may ask an employer to initiate mediation before it investigates a complaint. 5-6
7 EEOC Complaint Process 5-7
8 The Litigation Process Notification of counsel after delivery of complaint Answering the complaint Scheduling conferences Discovery process Summary judgment Pretrial and trial 5-8
9 Common Law Based on court decisions rather than statutory law. Employment-at-will (EAW) is one of the most important common-law doctrines. Employers have the right at any time, with or without prior notice, to hire, fire, demote, or promote anyone they choose unless there is a law or contract to the contrary. Employees may quit at any time for any reason, with or without prior notice. 5-9
10 Exceptions to EAW 5-10
11 Common-Law Tort Claims Tort law protects a person s: Physical safety and well-being. Enjoyment of their property. Financial resources. Reputation. Tort claims arise when these rights are affected. 5-11
12 Negligent Hiring/Retention Claims can be prevented by conducting background and reference checks on applicants. 5-12
13 Defamation Injuring someone s reputation by making a false and malicious statement. Statement may be spoken (slander) or written (libel). Statement must be shown to be: False and malicious. Harmful to an employee s reputation. Made without a legitimate business reason. 5-13
14 An employer is usually protected against charges of defamation in a referencechecking situation if the employer A. shows remorse for harming the employee s reputation. B. provides honest and accurate references about former employees. C. makes verbal comments but does not put them in writing. D. tries to verify the accuracy of information. Answer: B 5-14
15 Fraudulent Misrepresentation 5-15
16 Other Common-Law Tort Claims 5-16
17 Common-Law Contract Issues Contract definition: Agreement between two or more persons to do or not do something in exchange for something of value. Contract law provides remedies if the contract is breached. Contracts can be written or oral. 5-17
18 Agreements Enforced by Law 5-18
19 Global Employee and Labor Relations Laws that govern international employee and labor relations include: 5-19
20 Positive Characteristics of Union- Free Organizations 5-20
21 Feedback and Communication in Union-Free Organizations Attitude (climate) surveys HR/labor relations reviews Skip-level interviews Open-door meetings Department meetings Employee committees Electronic communications Problem-solving procedures Counseling 5-21
22 Total Rewards in a Union- Free Environment Provide information on: Compensation and salary data. Market comparisons. Salary grades. How raises are awarded. Cost of health care. Develop: Performance appraisal systems. Rewards and recognition programs. 5-22
23 Labor/Management Cooperative Strategies 5-23
24 Employee Involvement (EI) Links the shared interests of the employee and the company for mutual benefit. Gives employees the freedom and responsibility to make job-related decisions. Also known as participative management or empowerment. HR communicates company goals, develops and maintains EI programs, and helps build trust in employees. 5-24
25 EI Strategies: Job Design Aims at balance between: Efficiency Division of labor Standardization Specialization Employee satisfaction Skill variety Task identity Task significance Autonomy Feedback Job enlargement, rotation, and enrichment 5-25
26 The degree to which an employee completes an assignment with a tangible outcome is an example of A. skill variety. B. task significance. C. task identity. D. autonomy. Answer: C 5-26
27 EI Strategies: Alternate Work Schedules Flextime Telecommuting Compressed workweeks Schedules Phased retirement Regular part-time Job sharing 5-27
28 EI Strategies: Workplace Teams Work teams Task forces Committees Teams Self-directed teams Project teams Teams are accountable for specific objectives and performance goals. Teams and job design combine to increase productivity and job satisfaction. 5-28
29 Employee Surveys Attitude Surveys Measure job satisfaction Opinion Surveys Measure data on specific issues Value of surveys is in measuring improvements over regular time periods. Employees should be guaranteed anonymity and given feedback on results. 5-29
30 Employee Focus Groups Small group participating in a structured discussion with a facilitator. Provide qualitative data on specific issues. Can be used in conjunction with or independent of a survey. Provide in-depth feedback on specific issues. 5-30
31 Common Errors in Interpreting Data Rush to conclusions Manipulated results Errors Graphical misrepresentation Analysis paralysis Analysis errors 5-31
32 Policies, Procedures, and Work Rules Policy Procedure Work rule Broad statement that reflects philosophy, objectives, or standards; general in nature. Detailed, step-by-step descriptions; specify what, when, where, and who. Reflects management decisions regarding specific actions to be taken or avoided in a given situation. 5-32
33 Guidelines for Employee Handbooks Keep it simple and current. Distinguish between company-wide policies and job specifics. Accommodate multilingual requirements. Obtain evidence of receipt. Create an appealing, well-written book. Improperly drafted handbooks can create an employment-at-will exception. 5-33
34 Behavior Issues Absenteeism: Time lost when employees do not come to work as scheduled Tardiness: Time lost when employees report to work late When taking disciplinary action for excessive absenteeism or tardiness, do not count absences protected by FMLA, USERRA, or state law. 5-34
35 Preventive Measures to Avoid Disciplinary Action 5-35
36 Sequence of Disciplinary Action Document all steps even the oral steps. 5. Discharge 4. Final written warning 3. First written warning 2. Oral warning 1. Problem solving and open dialogue 5-36
37 An employee is accused of a violation of a dischargeable work rule. The HR manager should A. Confront the employee and have an open dialogue. B. Give an oral warning. C. Place the employee on administrative leave and conduct an investigation. D. Terminate on the spot. Answer: C 5-37
38 ADR Options Open-door policy (preventive) Ombudsperson (increases management access but not empowered to settle) Peer review (may recommend changes to company policy; often limited to suspensions and discharges) Mediation (nonbinding) Arbitration (binding or nonbinding) 5-38
39 Sherman Anti-Trust and Clayton Acts Sherman Anti-Trust Act Primarily directed at monopolistic employers. Resulted in injunctions issued against union activities. Clayton Act Clarified and supplemented the Sherman Anti- Trust Act. Minimally restricted injunctions against labor. Legalized peaceful strikes, picketing, and boycotts. 5-39
40 Railway Labor Act Passed to reduce labor conflict and the possibility of transportation strikes. Gave railroad employees the right to organize and bargain collectively through representatives of their own choosing. Covers both railroad and airline employees today. 5-40
41 Norris-LaGuardia Act 5-41
42 National Labor Relations Act (Wagner Act) 5-42
43 Labor-Management Relations Act (Taft-Hartley Act or LMRA) 5-43
44 Labor-Management Relations Act (Taft-Hartley Act or LMRA) 5-44
45 Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act or LMRDA) 5-45
46 Which of the following restores the balance of power by making union unfair labor practices unlawful? A. Norris-LaGuardia Act B. National Industrial Recovery Act C. National Labor Relations Act D. Labor-Management Relations Act Answer: D 5-46
47 Road to Unionization The process begins with the union organizing campaign. 5-47
48 Organizing Campaign Most effective organizing is done inside the workplace by employees. Employees can solicit only during non-working time and may distribute literature in non-work areas during non-working time. Solicitation rules must apply to all causes and organizations. Activities include salting, leafleting, meetings, home visits, phone calls, and Internet and media campaigns. 5-48
49 Picketing Organizational picketing Induces employees to accept the union as their representative. Recognitional picketing Obtains employer s recognition of the union. Informational picketing Informs the public that the employer is nonunion. 5-49
50 Management Rights in a Campaign Management has the right to: Speak out against the organizing attempt. Point out the consequences of a strike. Communicate through supervisors and group meetings. Hire consultants to work against unionization. Point out the financial costs of a union. Safeguard employee names and addresses (until the NLRB orders an election). 5-50
51 Neutrality Agreement Contract between a union and an employer under which the employer agrees not to oppose a union s attempt to organize its workforce. Common provisions include: Gag rule. No secret ballot election. Union access to employer premises. Union access to personal employee information. Employee attendance at captive audience speeches. 5-51
52 Authorization Cards Before ordering an election, the NLRB requires at least 30% of eligible employees to sign authorization cards. The union typically wants 50% of eligible employees to sign authorization cards before they petition for an election. 5-52
53 Petition for Certification Petition for certification generally leads to an election supervised by the NLRB. 5-53
54 Types of Elections 5-54
55 NLRB Determinations 5-55
56 In determining the appropriateness of a bargaining unit, the NLRB would consider A. if more than 50% of the employees signed authorization cards. B. if employees are frequently transferred across plants or offices. C. the percentage of temporary workers in the proposed unit. D. the percentage of managers and supervisors in the workforce. Answer: B 5-56
57 Bars to the Election Process Contract bar Statutory bar Certification-year bar Voluntary-recognition bar Blocking-charge bar Prior-petition bar 5-57
58 Voter Eligibility Eligible employees must be on the payroll: During the pay period prior to the direction of election. During the pay period preceding the election date. Striking employees who have been permanently replaced: May vote in any election conducted within 12 months after the strike s commencement. Election time and place Employers must post NLRB notices. 5-58
59 Election Campaign Once the election is scheduled, the campaign escalates. Management has a captive audience advantage and can present speeches during working hours. 5-59
60 Election Challenges must be made before the vote is accepted into the ballot box. NLRB determines validity of challenged ballots after the election if they have potential to affect the outcome. 5-60
61 The NLRB has scheduled an election. Within seven days, the company must file the A. names and addresses of all employees eligible to vote. B. telephone numbers of all employees eligible to vote. C. company policies that deal with time off for voting. D. names of employees the company feels should not be eligible to vote. Answer: A 5-61
62 Counting of Eligible Votes Unchallenged ballots are counted immediately after the election. Of those casting a ballot, a simple majority + 1 is required for certification. If 1,000 are eligible to vote but only 800 vote, 401 votes are needed for certification. A tie results in no certification. 5-62
63 Certification If the union loses, the NLRB certifies the election results. If the union wins, the NLRB certifies it as the exclusive representative of the bargaining unit. 5-63
64 Other Paths to Unionization Employer volunteers recognition based on proof of majority status in accordance with neutrality agreement. Union convinces employer to grant recognition. Union convinces employer to witness its majority status. NLRB orders employer to bargain with the union if serious ULPs have been committed. 5-64
65 Union Decertification Terminates union representation. Management may not guide or support the effort. At least 30% of the employees in the bargaining unit must petition for a decertification election. If the petition is valid, a secret-ballot election is held. A majority of the voting employees must approve decertification (a tie vote also removes the union). 5-65
66 If employees successfully vote to decertify a union on June 30 in a given year, what is the earliest date a new election can be held? A. Within 30 days B. Between 60 and 90 days C. After January 1 D. After one year Answer: D 5-66
67 Union Deauthorization Removes the union s authority to negotiate or enforce union security clauses. Occurs without management support or guidance. At least 30% of the employees in the bargaining unit must petition for deauthorization. After investigation, the NLRB orders an election. A majority of the employees eligible to vote must approve deauthorization (failure to vote is the same as a vote against deauthorization). 5-67
68 Rights and Responsibilities Employer Exercise freedom of speech. File ULPs. Protect property. Discipline or terminate for just cause. Employee Sign authorization card. Form a union. Strike. Circulate petition for redress of a grievance. Agent-principal relationship: Employers are responsible for managers and supervisors; unions are responsible for agents and officers. 5-68
69 Unfair Labor Practices A violation of a right under laborrelations statutes. Can be initiated by an individual employee, a union, or management. The NLRB adjudicates ULPs in the private sector; the FLRA or state agency processes cases in the public sector. 5-69
70 Employer ULPs: Interference, Restraint, and Coercion The NLRA prohibits employers from: 5-70
71 Avoiding ULPs To avoid ULPs, do not: T I P S Threaten. Interrogate. Promise. Spy. Be aware of agentprincipal relationship. 5-71
72 Other Employer ULPs Domination and unlawful support of labor organizations Electromation, Crown Cork and Seal Company, E. I. Dupont & Company Discrimination to discourage union membership Retaliation against employees who file charges or testify Refusal to bargain in good faith 5-72
73 Union ULPs: Restraints and Coercion The LMRA prohibits unions from engaging in: 5-73
74 Union ULPs: Duty of Fair Representation Union must act fairly on behalf of all members. Union may not ignore grievances that have merit or base decisions on discrimination or personal feelings. Union must represent nonmembers in bargaining and grievance issues in the same way it represents dues-paying members. 5-74
75 Other Union ULPs Forcing unlawful discrimination by the employer Excessive or discriminatory membership fees Refusal to bargain Featherbedding A union cannot force an employer to commit an act in violation of contract provisions. Fees must be appropriately based on industry wages and practices. The union must bargain in good faith. The union cannot require more workers than necessary. 5-75
76 Collective Bargaining Process SPHR only 5-76
77 Collective Bargaining Subjects SPHR only Mandatory subjects (required by law and NLRB) Illegal subjects (unlawful by statute) Permissive subjects (voluntary) Overtime Seniority Vacation/holidays Closed shops Discriminatory hiring Benefits for retired union members Settlement of ULPs Neutrality agreements 5-77
78 Collective Bargaining Patterns SPHR only Union negotiates agreements similar to those existing in the industry or region. More than one employer negotiates with the union. Employer bargains with several unions simultaneously but on a separate basis. 5-78
79 Contract Negotiations SPHR only Win-win negotiation Principled Integrative Interest-based Win-lose negotiation Positional Distributive Good-faith bargaining requires that both parties enter into discussion with fair and open minds and a desire to reach an agreement. 5-79
80 Violations of Good-Faith Bargaining SPHR only Surface bargaining Lack of concession Refusal to advance proposals and demands Dilatory tactics Imposing conditions Bypassing the representative Commission of ULPs Refusal to provide information Refusal to bargain 5-80
81 Other Bargaining Conditions Unlawful circumvention SPHR only Bargaining proposals not disclosed to the union may not be discussed with employees. Notice requirements The party desiring contract renegotiation must notify the other party of its intention to bargain a new agreement. Duty of successor employers or unions Selling a majority interest in a unionized company does not affect the company s bargaining obligations. 5-81
82 Contract Clauses SPHR only Union security clauses Dues checkoff Management rights Employee seniority and security (bumping) Compensation, benefits, and working conditions Strikes and lockouts Zipper clause Term of agreement 5-82
83 Formal Grievance Procedure 4. Third party 3. Higher-level management 2. Intermediate supervisor SPHR only 1. Immediate supervisor 5-83
84 When handling a union grievance, you should A. accept informal amendments to the contract if they are in the company s interest. B. avoid bias by not reviewing prior grievance records. C. ask the union to identify the violated contract provisions. D. rely on the union steward s investigation of the grievance. Answer: C SPHR only 5-84
85 The Weingarten Case Deals with the rights of union employees to have another person present during investigatory interviews. When supervisors ask for information that could lead to disciplinary action When employees are asked to defend their conduct SPHR only Person attending must be affiliated with the union, not an attorney or relative. 5-85
86 An employer is conducting an investigatory interview with a union employee. According to the Weingarten rights, the A. employer is obligated to provide representation if the employee cannot find anyone. B. employee may request that a labor attorney be present. C. employer is not required to inform the employee of these rights. D. employee may request that the interview be postponed for 48 hours. Answer: C SPHR only 5-86
87 Arbitration SPHR only 5-87
88 The Arbitration Process Opening statements Presentation of evidence Summation Award Both parties identify issues, state what is to be proved, and specify relief sought. Parties present evidence and essential documents to prove their cases. Both sides have equal time for closing arguments. The arbitrator presents the decision in written format and signs it. SPHR only 5-88
89 Arbitration SPHR only 5-89
90 Lockouts and Strikes 5-90
91 Protected Concerted Activities The right of a union to strike and picket The right of other employees not to cross a picket line The right of management to continue operations with: Supervisors Nonstriking regular employees Newly hired replacements 5-91
92 Strike Categories Economic Sympathy Strikes ULP Jurisdictional Wildcat (unprotected) 5-92
93 Replacement of Strikers Strike occurs as the result of ULPs. Employer must reinstate striking workers. Strike is an economic strike. Employer is not required to displace permanent replacement workers except as future opportunities become available. 5-93
94 Legal Picketing During Strikes Informational Consumer Picketing Areastandards Common situs 5-94
95 Secondary Boycotts Directed at the primary party through action against a third party. Employers may lose neutrality and be subject to union pressure in the following cases: Ally doctrine Single/joint employer or alter ego doctrines Double breasting Straight-line operations Hot cargo clauses 5-95
96 Which provision would allow a union to picket a chain of assisted-living facilities at all of their locations? A. Ally doctrine B. Common situs picketing C. Single/joint employer doctrines D. Straight-line operations Answer: C 5-96
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