Deck 16: Union-Management Relations

Question 1

Driving Away the UAW
Volkswagen (VW) Motors is a German-headquartered automobile manufacturer. A common practice in German companies is to utilize a "works council," a supervisory body made up of workers and managers who consult on business operations. U.S. labor laws strictly forbid such worker involvement without the official recognition of a labor union. So, the UAW saw an opportunity to organize workers at the VW Chattanooga, Tennessee, plant with the blessing of company management. Since the plant is overseen by German leadership, the union felt it would be supported in its efforts. However, workers at the plant would have the final say regarding union representation.
VW management did, in fact, seem to be on the UAW's side and had agreed to allow the union to be recognized based on a card check procedure rather than a representation election. The company allowed union organizers to campaign inside the plant, a highly unusual move. The labor union in Germany, a "cousin" of the UAW, had pushed for the welcoming posture to the U.S. union. Company and German union officials were highly committed to establishing a works council and felt that allowing the UAW to organize workers would allow that process to happen.
The company had pledged to remain neutral, but many of its actions appeared to strongly assist the union in its efforts. Not all employees at the plant favored representation by the union, but they were denied the right to hold meetings or campaign inside the plant. Such collusion between a company and union is potentially a violation of the Taft-Hartley Act. Workers insisted on the right to a secret ballot election, and the company eventually agreed.
In the highly contested battle, workers voted 712?626 not to join the UAW. With the undeniable support from the company, the UAW could hardly look for unfair labor practice violations. The vote was clear. Workers prefer dealing directly with plant management and working without labor union representation. In the weeks and months following the election, the UAW initially requested that the NLRB schedule a do-over election. Their contention was that local and state politicians had swayed workers with a promise of economic benefits if the workforce remained union free. They eventually dropped their request and accepted the no vote from the workers.
Since the election, the UAW has established an "American-style works council," a nonbargaining-unit local of the union. The group will meet with company representatives to discuss workplace issues but will not be empowered to negotiate a contract. The UAW remains hopeful that this works council will serve as a jumping off point for a full-fledged union in the future.
Under what circumstances might a company side with a union in its attempt to organize employees? How would you, as an employee, feel if your employer supported you joining a union?

Answer 1

Leading manufacturing company in Germany V Motors indirectly supported its workers to form a union and become a part of it. But the workers and employees were not very positive in the formation of union party and did not paid attention towards the urge of UAW. The UAW (Union Association of Workers) feel that local and state politicians have promised workers to pay them with good incentives and pay hike if they remain union free. But UAW is still hopeful that someday they would be successful in making a union party at V Motors.
The circumstances under which a company might side with a union in its attempt to organize in its attempt could be that when the company feels that there is a requirement of a union party that will make employees to ask for their rights. The company might side with a union party if it feels that employees are still layman and are not getting their deserving rights and benefits by being union free.
As an employee, if my employer supported me joining a union, I would feel very strange. This is because generally no company and employer want its employees to form union party and become a member of it. As union parties are considered to be rebellious and creates unnecessary obstacles in the smooth functioning of the company and its processes. Thus it would be very strange and weird if my employer asks me to join a union party.

Question 2

Discuss the following statement: If management gets a union, it deserves one.

Answer 2

Union formation is a process where employees and workers in a company comes to together and forms an association where they fight for their rights. The company and employees are not always in agreement with each other and when the disagreements gets stretched then the employees form union party and the representatives of the union talks with the company management with their issues and rights.
The statement, "If management gets a union, it deserves one" could be explained by saying that if a company possess a union party then the practices of that company related to employees might have been wrong somewhere and thus employees have to raise their voice against the injustice by forming a union.
Employees form union parties to make their issues focus by the management more seriously otherwise there is no other reason for employees to form unions. If the management listens and pays attention to the needs and aspirations of the employees and workers then formation of union parties does not exist.
To conclude it could be said that if a company has a union party then the company deserve s to have it. This is because the company might have not given due and fair attention to the workers requirements and thus the workers gave company union party.

Question 3

Labor Agreement Takes Flight
The threat of a work stoppage by the machinists' union at Boeing did not stop the company from demanding a labor contract that allows it to reduce costs and improve productivity. Boeing was determining where to produce the new version of its 777 long-range jet at the time of labor negotiations with its union workers in Everett, Washington. Company officials told workers that production of major sections of the new aircraft might be assigned to its facility in South Carolina, a right-to-work state, or possibly at a not-yet-established facility in the U.S. Southwest. Several states were wooing the company with tax incentives and other economic rewards to set up operations. The Washington State production facility is the company's oldest and has traditionally been the hub of manufacturing. But high labor costs are making alternate locations more attractive.
The company's threats to move production to a more labor-friendly location played against the union's threat to reject a contract offer and hit the picket lines. Striking is the union's most potent weapon to convince management that its demands are serious. The 32,000 employees represented by the International Association of Machinists (IAM) have had a contentious relationship with Boeing for many years. Labor peace is critical in an industry with long lead times and significant capital investments. Both the company and union understand the importance of good relations, yet somehow they manage to come to terms only after each side has wielded its power.
Initially, the union workers rejected the proposed contract, which included deep concessions on wages, seniority, and retirement benefits. A number of high-profile local and state civic leaders weighed in and urged the union members to accept the deal. After several additional rounds of proposals and counterproposals, the labor agreement was ratified in a 51% to 49% vote. The contract will run for eight years, giving both sides a long-term assurance of certainty. Likewise, the state also offered several financial incentives for Boeing to keep the work in Washington. The final contract delivered a critical element to the company, replacing an expensive defined benefit pension plan with a defined contribution 401(k) plan.
Despite the ability to withhold labor by striking against an employer, this tactic is rarely used because it is costly to employees as well as the company. Unions take to the streets only under circumstances that cannot be resolved in any other way. Boeing and the IAM can now work more cooperatively until the next contract in several years. Answer the following questions about Boeing's business decision regarding the location of its operations:
How much weight do you think companies should put on tax and other incentives to locate their operations in a particular state or city? Is it a good thing for taxpayers?

Answer 3

One of the biggest aircraft manufacturing companies BO is regularly threatened by its employees and workers to fulfill their demands. The unions formed at this company begin strikes every now and then just to ensure that management pays more serious attention to their needs and aspirations. BO is forced to keep the production to its oldest manufacturing plant in Washington but the company had other plans to shift its production project at Carolina where labor cost is low as compared to Washington.
As per my opinion, companies should put reasonable weight on tax and other incentives to locate their operations in a particular state or city. This is because if a particular state or city is offering large amount of tax benefit and is providing god incentives and other facilities, then it is completely correct for the companies to put their production plants there. This way the production cost and other costs related to the final product will get reduced. And then it could be a win-win situation for all.
It is also a good thing for the taxpayers because they will have to pay less tax to the state as well as central government for their production plant operations. Reduced tax and other benefits are all provided by the particular state or city where company starts its production plant, thus taxation policy that comes into effect varies from location to location. And it is a very good thing for companies if they get to pay less tax.

Question 4

Unionization Do's and Don'ts
Employers can take numerous actions to prevent unionization. All managers and supervisors must adhere to NLRB and other requirements to avoid unfair labor practices. Listed below are some common do's and don'ts.
? Do (Legal)
• Tell employees that the employer opposes unionization and explain why.
• Tell employees how current wages and benefits compare with those in other firms.
• Correct any inaccurate information presented by union supporters.
• Tell employees the disadvantages of having a union (dues, assessments, etc.).
• Show employees articles about unions and relate negative experiences elsewhere.
• Explain the unionization process to employees accurately.
• Forbid distribution of union literature during work hours in work areas.
• Enforce disciplinary policies and rules consistently and appropriately.
? Don't (Illegal )
• Tell employees that they will be given pay increases or promotions if they vote against the union.
• Suggest that the company will close down or move if a union is voted in.
• Monitor union meetings.
• Discriminate against employees who are taking part in union activities.
• Visit employees' homes to talk them out of voting for the union.
• Make a speech to employees or groups at work within 24 hours of the election.
• Ask employees how they plan to vote or if they have signed authorization cards.
• Encourage employees to persuade others to vote against the union.
• Tell employees that they will be terminated or disciplined if they advocate the union.
After you have read these Dos and Don'ts, consider the following questions:
What are the advantages and disadvantages of hiring a "union buster" expert to assist if a company is faced with a union organizing attempt?

Question 5

Unfair Labor Practices
Specific actions taken by employers and unions have been designated as illegal by various labor laws. These unfair labor practices (ULPs) typically work at cross-purposes to workers' interests for fair treatment and representation.
To protect union rights, the Wagner Act prohibited employers from committing unfair labor practices. Several of those practices were identified as follows:
• Interfering with, restraining, or coercing employees in the exercise of their right to organize or to bargain collectively
• Dominating or interfering with the formation or administration of any labor organization
• Encouraging or discouraging membership in any labor organization by discriminating with regard to hiring, tenure, or conditions of employment
• Discharging or otherwise discriminating against an employee because the employee filed charges or gave testimony under the act
• Refusing to bargain collectively with representatives of the employees
To protect workers and companies from inappropriate labor union actions, the Taft-Hartley Act prohibited the following unfair labor practices:
• Refusing to engage in good-faith negotiations with employers
• Engaging in activities that might cause employers to discriminate against employees because of their union or nonunion status
• Coercing or discriminating against members
• Charging members excessive membership fees
• Failing to adequately represent all those covered by a collective bargaining agreement
• Engaging in secondary boycotts with neutral parties if the company and union are in a labor dispute
Unions, companies, and employees can file a ULP charge with the NLRB depending upon the issue at hand. The NLRB investigates and resolves these charges. Over the past decade, the NLRB has handled an average of 22,000 complaints each year. Less than 10% typically result in a formal complaint being issued against the alleged wrongdoer. Answer the following questions after reading the previous section on ULPs:
What should companies do to reduce the chance of ULPs? Who should receive training regarding these labor issues?

Question 6

Driving Away the UAW
Volkswagen (VW) Motors is a German-headquartered automobile manufacturer. A common practice in German companies is to utilize a "works council," a supervisory body made up of workers and managers who consult on business operations. U.S. labor laws strictly forbid such worker involvement without the official recognition of a labor union. So, the UAW saw an opportunity to organize workers at the VW Chattanooga, Tennessee, plant with the blessing of company management. Since the plant is overseen by German leadership, the union felt it would be supported in its efforts. However, workers at the plant would have the final say regarding union representation.
VW management did, in fact, seem to be on the UAW's side and had agreed to allow the union to be recognized based on a card check procedure rather than a representation election. The company allowed union organizers to campaign inside the plant, a highly unusual move. The labor union in Germany, a "cousin" of the UAW, had pushed for the welcoming posture to the U.S. union. Company and German union officials were highly committed to establishing a works council and felt that allowing the UAW to organize workers would allow that process to happen.
The company had pledged to remain neutral, but many of its actions appeared to strongly assist the union in its efforts. Not all employees at the plant favored representation by the union, but they were denied the right to hold meetings or campaign inside the plant. Such collusion between a company and union is potentially a violation of the Taft-Hartley Act. Workers insisted on the right to a secret ballot election, and the company eventually agreed.
In the highly contested battle, workers voted 712?626 not to join the UAW. With the undeniable support from the company, the UAW could hardly look for unfair labor practice violations. The vote was clear. Workers prefer dealing directly with plant management and working without labor union representation. In the weeks and months following the election, the UAW initially requested that the NLRB schedule a do-over election. Their contention was that local and state politicians had swayed workers with a promise of economic benefits if the workforce remained union free. They eventually dropped their request and accepted the no vote from the workers.
Since the election, the UAW has established an "American-style works council," a nonbargaining-unit local of the union. The group will meet with company representatives to discuss workplace issues but will not be empowered to negotiate a contract. The UAW remains hopeful that this works council will serve as a jumping off point for a full-fledged union in the future.
What role should politicians and lawmakers play in union votes such as the one in Chattanooga? Do lawmakers have a vested interest in the success of businesses within their legislative territory?

Question 7

Suppose a coworker just brought you a union leaflet urging employees to sign an authorization card. What questions would you ask of the union supporter? What may happen from this point on?

Question 8

Labor Agreement Takes Flight
The threat of a work stoppage by the machinists' union at Boeing did not stop the company from demanding a labor contract that allows it to reduce costs and improve productivity. Boeing was determining where to produce the new version of its 777 long-range jet at the time of labor negotiations with its union workers in Everett, Washington. Company officials told workers that production of major sections of the new aircraft might be assigned to its facility in South Carolina, a right-to-work state, or possibly at a not-yet-established facility in the U.S. Southwest. Several states were wooing the company with tax incentives and other economic rewards to set up operations. The Washington State production facility is the company's oldest and has traditionally been the hub of manufacturing. But high labor costs are making alternate locations more attractive.
The company's threats to move production to a more labor-friendly location played against the union's threat to reject a contract offer and hit the picket lines. Striking is the union's most potent weapon to convince management that its demands are serious. The 32,000 employees represented by the International Association of Machinists (IAM) have had a contentious relationship with Boeing for many years. Labor peace is critical in an industry with long lead times and significant capital investments. Both the company and union understand the importance of good relations, yet somehow they manage to come to terms only after each side has wielded its power.
Initially, the union workers rejected the proposed contract, which included deep concessions on wages, seniority, and retirement benefits. A number of high-profile local and state civic leaders weighed in and urged the union members to accept the deal. After several additional rounds of proposals and counterproposals, the labor agreement was ratified in a 51% to 49% vote. The contract will run for eight years, giving both sides a long-term assurance of certainty. Likewise, the state also offered several financial incentives for Boeing to keep the work in Washington. The final contract delivered a critical element to the company, replacing an expensive defined benefit pension plan with a defined contribution 401(k) plan.
Despite the ability to withhold labor by striking against an employer, this tactic is rarely used because it is costly to employees as well as the company. Unions take to the streets only under circumstances that cannot be resolved in any other way. Boeing and the IAM can now work more cooperatively until the next contract in several years. Answer the following questions about Boeing's business decision regarding the location of its operations:
If you were a member of the IAM, how would you feel about the company's threats to move the jobs elsewhere? After settling the contract disputes, what would be your level of loyalty and commitment to the company?

Question 9

Unionization Do's and Don'ts
Employers can take numerous actions to prevent unionization. All managers and supervisors must adhere to NLRB and other requirements to avoid unfair labor practices. Listed below are some common do's and don'ts.
? Do (Legal)
• Tell employees that the employer opposes unionization and explain why.
• Tell employees how current wages and benefits compare with those in other firms.
• Correct any inaccurate information presented by union supporters.
• Tell employees the disadvantages of having a union (dues, assessments, etc.).
• Show employees articles about unions and relate negative experiences elsewhere.
• Explain the unionization process to employees accurately.
• Forbid distribution of union literature during work hours in work areas.
• Enforce disciplinary policies and rules consistently and appropriately.
? Don't (Illegal )
• Tell employees that they will be given pay increases or promotions if they vote against the union.
• Suggest that the company will close down or move if a union is voted in.
• Monitor union meetings.
• Discriminate against employees who are taking part in union activities.
• Visit employees' homes to talk them out of voting for the union.
• Make a speech to employees or groups at work within 24 hours of the election.
• Ask employees how they plan to vote or if they have signed authorization cards.
• Encourage employees to persuade others to vote against the union.
• Tell employees that they will be terminated or disciplined if they advocate the union.
After you have read these Dos and Don'ts, consider the following questions:
What recommendations would you give to line managers who are dealing with the inevitable disagreements between employees who support the union and those who do not? How can work unit dynamics and performance be affected during a union organizing campaign?

Question 10

Unfair Labor Practices
Specific actions taken by employers and unions have been designated as illegal by various labor laws. These unfair labor practices (ULPs) typically work at cross-purposes to workers' interests for fair treatment and representation.
To protect union rights, the Wagner Act prohibited employers from committing unfair labor practices. Several of those practices were identified as follows:
• Interfering with, restraining, or coercing employees in the exercise of their right to organize or to bargain collectively
• Dominating or interfering with the formation or administration of any labor organization
• Encouraging or discouraging membership in any labor organization by discriminating with regard to hiring, tenure, or conditions of employment
• Discharging or otherwise discriminating against an employee because the employee filed charges or gave testimony under the act
• Refusing to bargain collectively with representatives of the employees
To protect workers and companies from inappropriate labor union actions, the Taft-Hartley Act prohibited the following unfair labor practices:
• Refusing to engage in good-faith negotiations with employers
• Engaging in activities that might cause employers to discriminate against employees because of their union or nonunion status
• Coercing or discriminating against members
• Charging members excessive membership fees
• Failing to adequately represent all those covered by a collective bargaining agreement
• Engaging in secondary boycotts with neutral parties if the company and union are in a labor dispute
Unions, companies, and employees can file a ULP charge with the NLRB depending upon the issue at hand. The NLRB investigates and resolves these charges. Over the past decade, the NLRB has handled an average of 22,000 complaints each year. Less than 10% typically result in a formal complaint being issued against the alleged wrongdoer. Answer the following questions after reading the previous section on ULPs:
If the NLRB files a ULP charge against a company, what recourse does the company have? How can the company respond if it believes that the ULP is without merit?

Question 11

As the HR manager, you have heard rumors about potential efforts to unionize your warehouse employees. Use the Employment Law Information Network ( www.elinfonet.com/human-resources/Union-Avoidance ) website to develop a set of guidelines for supervisors if they are asked questions by employees about unionization as part of a "union prevention" approach.

Question 12

Several states have limited public-sector union power. What are some reasons for lawmakers taking this stand? What are the advantages and disadvantages of workers in the public sector belonging to labor unions? How does this impact taxpayers?

Question 13

There has been some discussion among the employees in your company's insurance claims processing unit about forming a union. Company management has asked you to research existing labor agreements in the industry. You utilize the Department of Labor's Office of Labor-Management Standards website and access a collective bargaining agreement from the Online Public Disclosure Room ( http://www.dol.gov/olms/regs/compliance/rrlo/lmrda.htm ). You find the contract between the American National Insurance Company and the United Food and Commercial Workers. The UFCW is the union your employees are talking to, so you want to see how they have worked with other employers. You review the contract and highlight points that you think are interesting and notable.
A. Assess the Management Rights clause. Has the company retained important rights, or does it appear that the union has substantial power to direct business operations? Are there additional rights you think should be retained by the company? Has the union included language to protect its own security and interests?
B. Evaluate the compensation and benefits that employees receive. Is paid time off adequate or overly generous? Do employees receive generous retirement benefits? What is your overall evaluation of how "tough" the union is likely to be if your employees elect it as a representative?