Understanding Labor Relations and Unionization: Employer and Union Practices - Prof. Naomi, Study notes of Human Resource Management

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Employee benefits and services - generally defined as in-kind (noncash) payments to employees for their membership or participation in the organization  Benefits - used to describe payments for protection against health and accident- related problems, for income protection after retirement (pensions), and for time not spent working (e.g., vacations, holidays, sick days and absences, breaks, washup and cleanup)  Services - a wide array of auxiliary conveniences and facilities provided to employees, which generally make life more enjoyable  Increase Productivity○ Contain Costs○ Flexible benefits plan - provides all employees with a base package of benefits and services from a wide array of options  Targeted benefits plan - provides different types and levels of benefits and services depending on an employee's location and position in the organization  Improve Retention○ Support Business Strategies○ The Strategic Importance of Providing Employee Benefits and Services• Mandatory benefits and services - benefits and services required by the federal and state governments  Voluntary benefits and services - benefits and services that are offered by employers but not required by law  Other HR Activities○ Labor Markets Unions Laws and Regulations The External Environment○ Company Culture The Organizational Environment○ Employee Benefits and Service Within an Integrated HRM System• The HR Triad• Social Security Act of 1935 - provides for retirement, disability, and unemployment insurance  Social Security Insurance○ Unemployment Compensation○ Workers' Compensation and Disability○ Extending FLMA protections for unpaid leave of up to 26 weeks to family members caring for a military service member with a serious injury or illness incurred in the line of duty  Extending FMLA protections for unpaid leave of up to 12 weeks to military Provisions:□ Family and Medical Leave Act of 1993 (FMLA) - requires employers with 50 or more workers to grant an employee up to 12 weeks of unpaid leave annually for the birth or adoption of a child, to care for a spouse or an immediate family member with a serious health condition, or when unable to work because of a serious health condition  Family and Medical Leave○ Mandatory Benefits and Services• Chapter 12 - Providing Benefits and Services Exam 4 MANA 4330 Page 1 Extending FMLA protections for unpaid leave of up to 12 weeks to military family members for "qualifying exigencies," which include short-notice deployment and postdeployment activities  Permitting employers to require that employees use the company's customary leave request procedures for FMLA leave  Permitting employers to require that employees follow the company's existing rules for use of paid time off when such leaves are combined with FMLA leave  Qualified plan - covers a broad class of employees (e.g., not just executives), meets Internal Revenue Code requirements, and consequently, is qualified to receive favorable tax treatment  Nonqualified plan - does not adhere to the strict tax regulations, covers only select groups of employees (e.g., only senior management), and does not receive favorable tax treatment  Defined Benefits Plans○ Noncontributory plan - if only the employer contributes to the retirement account Contributory plan - when both the employee and the employer contribute to the retirement account  401(k)s and 403(b)s Employee Stock Ownership and Profit Sharing Plans Defined Contribution Plans○ Portable benefits - benefits that employees can take with them when they leave the firm for a different employer  Cash Balance Plans○ Employee Retirement Income Security Act of 1974 (ERISA) - designed to protect the interests of workers covered by private, voluntary retirement plans by regulating the management of pension funds □ Pension Benefit Guaranty Corporation (PBGC) - administers the required insurance program and guarantees the payment of basic retirement benefits to participants □ ERISA Economic Recovery Tax Act of 1981 - allows employees to make tax-deductible contributions to (1) an employer-sponsored pension, profit-sharing, or savings account or (2) to an individual retirement account (IRA) □ Other Laws Related to Retirement Plans Legal Considerations○ Voluntary Benefits and Services: Retirement Savings Plans and Pensions• Conventional Insurance Plans Primary care physicians (PCPs) - gatekeepers of the employees' health care□ Health Maintenance Organizations Preferred Provider Organizations Point-of-Service Plans Health savings accounts (HSAs) - tax-free accounts funded by employees, employers or both that set aside money to pay health care expenses □ Consumer-Driven Plans Medical Care○ Wellness Programs○ Employee assistance programs (EAPs) - designed to assist employees with chronic personal problems that hinder their job performance and attendance  Employee Assistance Programs○ Voluntary Benefits and Services: Health Care Benefits and Services• Voluntary Benefits and Services: Paid Leave• MANA 4330 Page 2 Promote health at work by providing technical assistance and support Develop human resources for the field of occupational health Establish relevant and useful registration and data systems Raise public awareness Strengthen research on occupational health Country Culture 1. Comply with OSHA standards, rules and regulations 2. Comply with employers orders related to the Act 3. Use all safety and personal protective equipment provided by or as directed by OSHA or their employer Employees' responsibilities specified by OSHA:○ The HR Triad• 1. The nature of the work itself and the times for doing that work (e.g., vehicle driving, shift work, working hours) 2. The tools and technology used to do the job (e.g., heavy machinery, ladders, personal computers) 3. The availability of guns brought to work Factors that affect workplace accidents:□ Shift work - to any arrangements for daily work hours that differ significantly from the standard daylight hours □ Working Conditions No stable set of personal characteristics always contributes to accidents. Nevertheless, certain psychological and physical characteristics seem to make some people more susceptible to accidents □ Employee Characteristics Occupational Accidents○ Workplace Violence Occupational Injuries○ Workplace Safety Hazards• Occupational Illnesses○ Hazards to Mental Health○ Organizational Change Physical Environment Job characteristics theory - employees are more satisfied and motivated when their jobs are meaningful, create a feeling of responsibility, and are designed to ensure that some feedback is available □ Poorly Designed Jobs Stress-Prone Employees Workplace Stressors○ Job burn-out - particular type of stress that seems to be experienced by people who work in health care, education, police work, customer response centers, and the airline industry  Emotional Exhaustion Depersonalization Low Personal Accomplishment Engaged workers - those who have invested themselves into their work; they have high-energy and effective connection with their work □ Performance Deterioration Job Burn-Out○ Workplace Hazards to Health and Well-Being• Interventions to Improve Workplace Safety• MANA 4330 Page 5 Incidence rate - a measure that takes into account the number of injuries and illnesses in a year □ □ Incidence Rate Frequency rate - a measure of the number of injuries and illnesses for every million hours worked □ □ Frequency Rate 1. Deaths 2. Permanent total disabilities 3. Permanent partial disabilities 4. Temporary total disabilities Severity rate - reflects the hours actually lost because of injury or illnesses□ □ Severity Rate Measuring and Monitoring Safety○ Work Environment Design Training employees in effective safety behaviors Defining clear safety goals and measures Appraising and providing feedback on safety performance Linking safety performance to rewards and consequences Sound performance management applied to safety entails:□ Safety Performance Management Improved Working Conditions Health and Safety Committees Alcohol and Drug Testing Accident Prevention○ Varying workers' tasks, particularly the motions used to accomplish them, during the day □ Providing small, 10-to 30-second breaks every 30 minutes□ Providing longer breaks from the video display terminals every 2 hours□ Allowing discretion in how employees work (e.g., in their posture, schedule, pace, work processes) □ Minimizing the number of keystrokes whenever possible□ Providing opportunities to learn about their job performance, what they contribute to projects, and their value to the organization □ Educating employees on the value of ergonomics□ Reducing sources of environmental stress (e.g., heat, glare, noises)□ Helping workers discover the features and functions of their workspace that enable them to adjust their environment for safety and comfort □ Employers can help reduce repetitive motion injuries Injury Prevention○ Verbal threats - Individuals often talk about what they may do. An employee might say, "Bad things are going to happen to so-and-so" or "That propane tank in the back could blow up easily." □ Physical actions - Troubled employees may try to intimidated others, gain access to places where they don’t belong, or flash a concealed weapon in the □ Common signs of violent employee: Violence Prevention○ Interventions to Improve Workplace Safety• MANA 4330 Page 6 to places where they don’t belong, or flash a concealed weapon in the workplace to test reactions. Frustration - Most cases of workplace violence don't involve a panicked individual who perceives the world as falling apart. A more likely candidate is an employee who has a frustrated sense of entitlement to a promotion, for example. □ Obsession - An employee may hold a grudge against a coworker or supervisor, which in some cases can stem a romantic interest. □ Record Keeping of Workplace Chemicals Monitoring Exposure to Hazardous Substances Measuring and Monitoring Health and Well-Being○ Presenteeism - employees going to work even though they are sick□ Reducing Presenteeism Genetic Screening Illness Prevention○ Cognitive-behavioral stress management training - helps employees change their beliefs about their challenging situations  Relaxation stress management training - used to increase employee's awareness of their tension and learn techniques to increase calmness  Stress Management○ Weight Loss Smoking Cessation 1. Educating employees, their families, and the surrounding community about how to avoid HIV infection 2. Free and voluntary testing and counseling 3. Treatment for other sexually transmitted diseases that facilitate HIV transmission 4. Distribution of free condoms Effective prevention programs have four components:□ HIV/AIDS Health Assessments The reward does not exceed 20 percent of the cost of coverage The program is designed to promote health or prevent illness Eligible employees can qualify for the reward at least once a year The reward does not discriminate based on medical condition, meaning the company must provide reasonable alternatives to employees who would have difficulty meeting the health goal  Incentives like health care insurance premium discounts can be given as long as:□ Wellness Incentives Wellness Programs○ 1. To enhance employee well-being 2. To improve morale 3. To reduce absenteeism 4. To promote good employee relations 5. To enjoy the benefits of their cost-effectiveness Top five reasons employers offer EAPs to their employees: Employee Assistance Programs○ Evaluate Revise Assessing Intervention Effectiveness○ Interventions to Improve Workplace Health and Well-Being• Current Issue• MANA 4330 Page 7 Managing funds and property of the union responsibly Bonding all officers who handle funds Filing information and financial reports annually Complying with numerous officer election regulations The Landrum-Griffin Act specifies a number of responsibilities for unions and their officers:○ The Extended HR Triad• Psychological contract - consists of an employee's unspecified expectations about reasonable working conditions, requirements of the work itself, the level of effort that should be expended on the job, and the nature of the authority the employer should have in directing the employee's work  Dissatisfaction○ Lack of Power○ Management Efforts○ Union instrumentality - the value an employee feels a union would have, after weighing the costs and benefits against the likelihood of a union's being able to obtain those benefits  Union Instrumentality○ Attraction of Unionization• Union salting - the practice of union organizers seeking employment in companies without disclosing their true backgrounds in order to establish a base for union organizing activities □ Establishing Contact between the Union and Employees Authorization Cards and Request for Elections Soliciting Employee Support○ Bargaining unit - the group of employees that will be represented by the union Determination of the Bargaining Unit○ Preelection Campaign○ Certification election - determines whether the union is recognized as the legal representative of the employees in the organization □ Election and Certification Decertification elections - determine whether a union is removed as the legal representative of the employees in the organization □ Election and Decertification Election, Certification, and Decertification○ The Union Certification Process• The type of bargaining How the collective bargaining agreement is negotiated The issues being negotiated The conflict resolution techniques used Terms of a settlement depend on:○ Distributive bargaining - each party negotiates with the goal of achieving its own best possible outcome □ Adversarial relationship - between union and management, the union's role is to gain concessions from management during collective bargaining and to preserve those concessions through the grievance procedure □ Distributive Bargaining Integrative bargaining - focuses on creative solutions that reconcile (integrate) the parties' interests and yield joint benefits □ Integrative Bargaining Types of Bargaining○ The Collective Bargaining Process• MANA 4330 Page 10 the parties' interests and yield joint benefits Cooperative relationship - requires that union and management solve problems, share information, and integrate outcomes □ Concessionary bargaining - employers seek givebacks or concessions from the unions, promising job security in return □ Two-tier wage systems - in which a separate, lower-paying wage system is created for new workers □ Concessionary Bargaining Frequent meetings during the life of the contract◊ A focus on external events and problem areas rather than on internal problems ◊ Use of the skills of outside experts in decision making◊ Use of problem-solving (integrative) approach◊ Characteristics of continuous bargaining Continuous bargaining - joint committees with representatives from both labor and management meet on a regular basis to explore issues and solve problems of common interest □ Continuous Bargaining Intraorganizational bargaining - the representatives for labor and management confer with their respective constituents over changes in bargaining positions □ Intraorganizational Bargaining Negotiating Committees The Negotiating Structure Preparation of specific proposals for changes in contract language1. Determination of the general size of the economic package that the company expects to offer during the negotiations 2. Preparation of statistical displays and supportive data that the company will use during negotiations 3. Preparation of a bargaining book for use by company negotiators that compiles information on the issues that will be discussed, giving an analysis of the effect of each issue, its use in other companies and other facts 4. To prepare for union negotiations, management needs to complete four tasks:□ Financial situation of the company and its ability to pay Attitude of management toward various issues, as reflected in the past negotiations or inferred from negotiations with similar companies  Attitudes and desires of employees Unions collect information on:□ Preparation of Bargaining Factors Affecting Bargaining Negotiating the Agreement○ Mandatory issues - those that are employers and employee representatives (unions) are obligated to meet and discuss; there are, according to the act, "wages, hours, and other terms and conditions of employment"  Permissive issues - those that are not specifically related to the nature of the job but still of concern to both parties  Prohibited issues - concern illegal or outlawed activities - that is, issues that may not be discussed in collective bargaining sessions  Total Compensation Benefits and Services Hours of Employment Institutional Issues Issues for Negotiation○ MANA 4330 Page 11 Institutional Issues Administrative Issues Strike - occurs when the union is unable to get management to agree to a demand it believes is critical and tells employees to refuse to work at the company □ Reinstate strikers in all of the positions that remain unfilled, unless the employer has substantial business reasons for doing otherwise 1. Establish a preferential hiring list for displaced strikers to facilitate their recall as new openings occur 2. Employers will be expected to:□ Strikes Lockout - occurs when management refuses to allow employees to work□ Lockouts Slowdowns Primary Boycotts Corporate Campaigns Mediation Arbitration Conflicts and Their Resolution○ Outright violation of the agreement Disagreement over facts Dispute over the meaning of the agreement Dispute over the method of applying the agreement Argument over the fairness or reasonableness of actions Common sources:□ An employee who feels that the labor contract has been violated usually contacts that union steward, and together, they discuss the problem with the supervisor. If the problem is simple and straightforward, it is often resolved at this level 1. If agreement cannot be reached at the supervisor level, or if the employee is not satisfied, the complaint can enter the second step of the grievance procedure. Typically, an HR representative of the company now seeks to resolve the grievance 2. If the grievance is sufficiently important or difficult to resolve, it may be taken to the third step. Although contracts vary, they usually specify that top-level management and union executives be involved at this stage. These people have the authority to make the major decisions that may be required to resolve the grievance 3. If the grievance cannot be resolved at the third step, an arbitrator will likely need to consider the case and reach a decision. The arbitrator is a neutral, mutually acceptable individual who may be appointed by the FMCS or some private agency. The arbitrator holds a hearing, reviews the evidence, and then rules on the grievance. The decision of the arbitrator is usually binding 4. Common grievance procedure involves:□ Wildcat strike - if a contract specifically forbids strikes during the tenure of the collective bargaining agreement, a strike is not legal □ Grievance Procedure Common types of union grievance - discipline and discharge; however there are these issues: □ Grievance Issues Contract Administration○ Maintenance and Evaluation• MANA 4330 Page 12