Union Representation

MHR 6751, Labor Relations and Collective Bargaining 1

Course Learning Outcomes for Unit III Upon completion of this unit, students should be able to:

3. Critique the concept of collective bargaining.

Reading Assignment Chapter 5: Why and How Unions Are Organized

Unit Lesson As you may have noticed, our objective for this unit’s lesson is to critique the concept of collective bargaining. If we continue our line of thought comparing collective bargain to the divorce process, you will have a better understanding of the process and, therefore, will be better prepared to make such a critique. We have all heard horror stories related to negotiations (e.g., violence, vandalism, fraud, etc.) and bitter divorce battles. A battle you may have seen or heard about is the bitter divorce and custody battle between Halle Berry and Olivier Martinez. Aggressive and bad behavior does happen in negotiations, but there are also consequences for such behavior. We will discuss the process and possible consequences in this unit. Let’s review. We have decided it is time to negotiate our relationship because it has changed in the past three years and is no longer working for us. Consequently, things are a little tense between us, so it is time to take the next step. We want to maintain a good relationship, but, at the same time, we each have certain issues that must be resolved to our satisfaction if we want to maintain any sort of relationship in the future. We have researched our current position and have given each other notice. As I mentioned, we want to maintain a good relationship, and, as you know, that requires good communication between both parties as we work through the negotiation process. As part of this good communication, it is wise to establish rules of engagement early on so that both parties clearly understand what acceptable behavior is and what non-acceptable behavior is. For example, we both want to be clear that honest information is essential to successful negotiations. Lying or falsifying documents is not acceptable behavior. Hiding assets is also not acceptable behavior. In some divorce processes, a spouse will hide assets in order to reduce the final asset valuation. If I hide the fact that I own an apartment in New York, I reduce my total assets, thereby reducing the amount of alimony and child support I will have to pay. I create a picture misrepresenting my true value and potential to pay. Some organizations also try to underplay their ability to pay in order to justify not increasing wages or not providing increased benefits. However, if an organization states that they cannot pay an increase in wages, they must turn over their financial reports to the union for review. We want to be clear that threats or intimidation of any kind is not acceptable. You will often see in a divorce case one spouse insisting that the other will never see the children again if they do not get what they want. This is an unacceptable practice to our negotiation process. While we are establishing our rules, we also want to establish subjects of bargaining. For example, in the collective bargaining process, there are mandatory, illegal and permissive subjects of bargaining. Some subjects such as wages, hours, and conditions of work are mandatory subjects for bargaining. Illegal subjects would be things that are considered illegal such as discrimination or pay below minimum wage. Permissive subjects are everything else that is not mandatory or illegal. In the divorce process, our mandatory subjects of bargaining would be subjects such as child custody and visitation, child support, and alimony. Of course, if we have a prenuptial agreement, that would also be a mandatory subject to discuss. We could establish illegal subjects for the divorce process as former sexual encounters or arrest records and permissive subjects everything else. For example, a permissive subject might be the distribution of the family heirlooms or family pets.

UNIT III STUDY GUIDE

Organization of Unions

MHR 6751, Labor Relations and Collective Bargaining 2

UNIT x STUDY GUIDE

Title

Other areas we will want to establish are acceptable time lines and consequences for not meeting those time lines as well as consequences for not reaching an agreement. Collectively, we need to decide on a reasonable estimation for resolving our negotiation. Is it reasonable to reach an agreement in four weeks, six weeks, or even eight weeks? Is it unreasonable to drag the process out for six to eight months? What are our options if one party violates our rules? What is the next step if we cannot reach an agreement? Are we willing to consider mediation and arbitration? The collective bargaining process and the National Labor Relations Board (NLRB) guidelines easily answer some of these questions. For example, all parties are expected to bargain in good faith, which means honestly—no bullying, no falsification of documents, and no hiding of assets when it comes time to discuss ability to pay. It also means working towards a successful resolution and not stalling or dragging the process. Depending upon the former contact and the estimates changes, contract negotiations might take two weeks or they may take five weeks. Depending upon how well we communicate and work together, negotiations may take longer, but at some point negotiations have to end in an agreement. Just as in a divorce case, negotiation is costly for both parties. Swift resolution is in the best interest of both parties. Management is losing time from other duties by attending the negotiation meetings, and union representatives are taken from their other duties to participate in the negotiation process. Lengthy negotiations can lead to increased tension and potential conflict. Additionally, as part of the collective bargaining process, if one party violates our agreed-upon rules, we have the option to file an unfair labor practice complaint against that party. If an unfair labor practice is filed, then the National Labor Relations Board (NLRB) will review our negotiations, and then the NLRB has the option to modify and finalize the collective bargaining agreement. Both parties will have to live with the modifications for the duration of the contract (three to five years). Both the union and management can commit an unfair labor practice, so both parties are equally able to violate the rules. Just as in a divorce process, both parties have the opportunity to play dirty. Making accusations and tarnishing reputations are common among disputing divorce parties and would be considered an unfair labor practice in the collective bargaining process. As I mentioned previously, we need to agree that if we cannot come to a collective agreement, if we reach an impasse, we agree that we will try mediation prior to going to arbitration and prior to staying at state of impasse. An impasse is when two parties cannot reach a mutually satisfying agreement. As you may recall from your readings, mediation is a third party working towards resolution, but the resolution is not binding. A mediator tries to find common ground between the two parties, and from that common ground the mediator can work towards an agreement that both parties can live with. Arbitration, on the other hand, is binding. An arbitrator works with both parties and ultimately makes the final decision as to what the agreement will consist of. In our divorce analysis, the arbitrator may be the judge who decides what the final divorce decree entails. If collective bargaining goes to mediation or arbitration, both union and management agree who will preside over the meetings, and both share in the costs. Today, many people go through mediation while working on the final divorce settlement because it is significantly cheaper than working though divorce attorneys, and, in some states, mediation is required prior to the final divorce decree—especially if children are involved. Unions and management can save money as well by going through mediation if it comes to that point. The collective bargaining process takes time. Each party wants to present their best case and negotiate the best solution; therefore, effective communication is essential between the two parties and all those involved in the process. There will be offers and counter offers and more offers and more counter offers until terms are reached that both parties can live with for the next three to five years. Each party needs to be patient and ready to counter the offers with counter offers. The more prepared each party is, the less time the negotiations will take. Less time means less money for both parties. The process will run more smoothly when both parties establish rules of engagement, conditions of the process, and next steps when an agreement cannot be reached. In the next unit, we will look at some tactics used during negotiations (both effective and not-so-effective tactics) and different ways to build trust.