Labor Relations and Collective Bargaining
PRIVATE AND PUBLIC SECTORS
Michael R. Carrell
Founding Director Alternative Dispute Resolution Center
Northern Kentucky University
Christina Heavrin, J.D
Former Labor Negotiator and Special Counsel to the Mayor Louisville/Jefferson County Metro Government
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Library of Congress Cataloging-in-Publication Data Carrell, Michael R.
Labor relations and collective bargaining : private and public sectors / Michael R. Carrell, Christina Heavrin. — 10th ed. p. cm.
9th ed. has subtitle: Cases, practice, and law. Includes bibliographical references and index. ISBN-13: 978-0-13-273001-3 (alk. paper) ISBN-10: 0-13-273001-4 (alk. paper)
1. Collective labor agreements—United States. 2. Collective bargaining—Law and legislation—United States. 3. Industrial relations—United States. I. Heavrin, Christina. II. Title. KF3408.C37 2013 344.7301’89—dc23
ISBN 10: 0-13-273001-4 ISBN 13: 978-0-13-273001-3
10 9 8 7 6 5 4 3 2 1
We dedicate this work to the thousands of former students who inspired us to write yet another edition of this book!
In addition, we dedicate it to our colleagues on both sides of the negotiation table, from whom we have learned through practice much of the material presented in this book.
Finally, we dedicate it to our families, who have given us time on weekends, holidays, and evenings to write books:
Colleen Sue, my wife, loving mother of our girls, and 2011 “Employee of the Year” Shari Diane, my firstborn and a model parent and homeowner Amber Maureen, my Hanover College graduate and Oregon graduate student Lexi Savannah, my NKU Accounting and Spanish major, and her new husband Sean Toon Annabelle Michael, my Dixie Heights High School 2011 Valedictorian Autumn Rain, Boompa’s dance partner and first grader
Michael R. Carrell
As always, this is dedicated to my husband, Mike Ward, my son and his wife, Jasper and Amanda, Jax, my grandson, and my son, Kevin.
We also dedicate this tenth edition to the following reviewers who provided insightful suggestions:
Tenth edition reviewers: Jerry Carbo, Shippensburg University
Diane Galbraith, Slippery Rock University
Bob Hoell, Georgia Southern University
David Jacobs, Morgan State University
Gundars Kaupins, Boise State University
Louis J. Manchise, Northern Kentucky University
Sophie Romack, John Carroll University
Josh Schwarz, Miami University David Strecker, Oklahoma State University
Reviewers of prior editions:
Robert Hatfield, Western Kentucky University; Anthony Chelte, Western New England College; Dawn Addy, Florida International University; James Browne, Colorado State University–Pueblo; Ross Prizzia, University of Hawaii West; Jim Hall, Santa Clara University; Jack Dustman, Northern Arizona University; Douglas McCabe, Georgetown University; Mel Schnake, Valdosta State University; James Kyle, Indiana State University; James Castagnera, Rider University; Joe Benson, New Mexico State University; Ronald Atkins, Salve Regina University; Katie Laskowitz, Purdue University; Jeffrey Bailey, University of Idaho; Kenneth Kovach, George Mason University; Richard Posthuma, University of Texas–El Paso; James Wanek, Boise State University; Steve Briggs, DePaul University; Thomas Lloyd, Westmoreland
County Community College; J. Dane Partridge, Virginia Polytechnic Institute; Virginia C. Rogers, University of South Dakota; Ronney Vandeveer, Purdue University; Lane Tracey, Ohio University; Deborah Kottel, University of Great Falls; Debra J. Cohen, George Mason University; R. Richard Sabo, California State Polytechnic University; Robert A. Figler, University of Akron; Deb Buerkley, Southwest State University; William Sharbrough, The Citadel; David R. Bloodsworth, University of Massachusetts; Larry Donnelly, Xavier University; Roger Wolters, Auburn University; Louis White, University of Houston at Clear Lake; Steven Willborn, University of Nebraska at Lincoln; John Vahaly, University of Louisville; and Robert C. Miljus.
PART I Labor Relations Overview 1
Chapter 1 Introduction to Labor Relations 1 Chapter 2 Private Sector Labor Relations: History and Law 39 Chapter 3 Public Sector Labor Relations: History and Law 79
PART II The Collective Bargaining Process 117
Chapter 4 Establishing a Bargaining Unit and the Organizing Campaign 117 Chapter 5 Negotiation Models, Strategies, and Tactics 160 Chapter 6 Negotiating a Collective Bargaining Agreement 205
PART III Cost of Labor Contracts 245
Chapter 7 Wage and Salary Issues 245 Chapter 8 Employee Benefits 285 Chapter 9 Job Security and Seniority 322
PART IV The Labor Relations Process in Action 359
Chapter 10 Unfair Labor Practices and Contract Enforcement 359 Chapter 11 Grievance and Disciplinary Procedures 406 Chapter 12 The Arbitration Process 430 Chapter 13 Comparative Global Industrial Relations 465
Appendix A Texts of Statutes 503
Appendix B Collective Bargaining Simulation 532
Appendix C Labor Media Guide 535
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PART I Labor Relations Overview 1
Chapter 1 Introduction to Labor Relations 1 SHRM CERTIFICATION 3
What is Labor Relations and Why Study it? 3 KNOW YOUR RIGHTS! 6
Labor Unions Today: Pros and Cons 7
Why Join a Union? 10 HARD AND SOFT ISSUES 10 CAPITALISM AND COLLECTIVE BARGAINING 12
Union Membership 13 UNION LEADERS 14 WORKPLACE CHANGES 16
Employee Free Choice Act 18
Opportunities for Growth 18 STRATEGIC INDUSTRY FOCUS 18
Hospitality Industry 19
Health Care Industry 19
Airline Industry 20
Casino Industry 21
Shipping Industry 22
Professional Workers 22
Immigrant Workers 22
Foreign-Owned U.S. Auto Plants 23
Labor–Management Cooperation 23
Types of Unions 25
Unions in Professional Sports 29 BASEBALL 30
National Labor Relations Board (NLRB) 31
Jurisdiction of the NLRB 32 PERSONS 32 LABOR DISPUTE 32 AFFECTING COMMERCE 32 EMPLOYEES 33 EMPLOYERS 33 LABOR ORGANIZATIONS 33
Preemption 33 Summary 34
� CASE STUDY 1-1: Job Performance 34 � CASE STUDY 1-2: Grooming Standards at Southwest Airlines 35
You Be the Arbitrator: Should an Employee’s File Be Expunged? 36
Chapter 2 Private Sector Labor Relations: History and Law 39 The Roots of the American Labor Movement 41
Growth of National Unions 42
Unions, People, Incidents 42
Molly Maguires 43
Railway Strike of 1877 43
The Haymarket Square Riot 45
Knights of Labor 46
Homestead, Pennsylvania, 1892 46
Pullman Strike, 1894 46
Eugene Debs 48
American Federation of Labor 49
Samuel Gompers 50
Bunker Hill & Sullivan Mining Incident, Coeur d’Alene, Idaho 50
Industrial Workers of the World 51
Women’s Trade Union League 52
Ludlow, Colorado, Massacre, 1914 52
John L. Lewis 53
Congress of Industrial Organizations 54
Early Judicial Regulation 55
The Cordwainers Conspiracy Cases 55
Use of Labor Injunctions 56
The Erdman Act 57
Unions Gain a Foothold 58
Pro-Labor Legislation 60
The Clayton Act 60
The National War Labor Board 60
The Railway Labor Act 61
The Creation of a National Labor Policy 62
The Norris-La Guardia Act 62
The National Labor Relations Act (The Wagner Act) 62
The Fair Labor Standards Act 63
The Labor-Management Relations Act (Taft-Hartley Amendments) 65
The Labor-Management Reporting and Disclosure Act of 1959 67
The Employee Free Choice Act 68
Workforce Diversity 69
African Americans and Unions 70
Women and Unions 71
Immigrants and Unions 72 Summary 73
� CASE STUDY 2-1: Interfering with the Employee’s Right to Unionize 73 � CASE STUDY 2-2: Discriminating Against Union Members 74
You Be the Arbitrator: Management Rights 76
Chapter 3 Public Sector Labor Relations: History and Law 79 Defining the Public Sector 82
THE FEDERAL GOVERNMENT 83 STATE GOVERNMENT 84 LOCAL GOVERNMENT 85
History of Public Sector Labor Relations 86 PENDLETON ACT 86 EARLY PUBLIC SECTOR UNIONS 86
The Push for Public Sector Collective Bargaining 87
Public Sector Labor Laws 89
The Sovereignty Doctrine 89
Federal Employees 89 EXECUTIVE ORDERS 89 POSTAL REORGANIZATION ACT OF 1970 91 THE CIVIL SERVICE REFORM ACT OF 1978, TITLE VII 91 NATIONAL SECURITY PERSONNEL SYSTEM 91
State and Local Government Employees 93
Public Sector Unions 94
Contrasting Public and Private Sector Labor Relations 96
Collective Bargaining’s Impact on Governmental Budgeting 97 PATTERN BARGAINING 98 INABILITY TO PAY 98
Bargaining Differences in the Public Sector 99 MULTILATERAL BARGAINING 99 OPEN NEGOTIATIONS 99
Lack of “Union Security” in the Public Sector 101
Supervisors in Bargaining Units 101
Size of Public Sector Bargaining Units 102
The Right to Strike 102 THE PROFESSIONAL AIR TRAFFIC CONTROLLERS’ (PATCO) STRIKE 102
Resolving Impasse in the Public Sector 104
Alternative Dispute Resolution Procedures 106
Enforcement of Collective Bargaining Rights 107
Current Public Sector Challenges 107
School Vouchers 109
Taxpayer Revolt 111 Summary 113
� CASE STUDY 3-1: Collecting Union PAC Money 113 � CASE STUDY 3-2: Resolving Impasse by Binding Arbitration 114
You Be the Arbitrator: Bereavement Leave 116
PART II The Collective Bargaining Process 117
Chapter 4 Establishing a Bargaining Unit and the Organizing Campaign 117 Bargaining Unit Determination 118
Bargaining Unit 120
Appropriate Unit 120 COMMUNITY OF INTEREST 121 HISTORY OF BARGAINING 121 EMPLOYEE WISHES 121 EMPLOYEE UNIONIZATION 122 THE UNIT AND EMPLOYER ORGANIZATIONAL STRUCTURE 122 PUBLIC INTEREST 122 ACCRETION 122 STIPULATED UNITS 122 SUPERVISORS 122
Types of Units 124 CRAFT UNITS 124 DEPARTMENTAL UNITS 125 ONE EMPLOYER, MULTIPLE LOCATIONS 125 MULTIEMPLOYER UNITS 125 RESIDUAL UNITS 125 REMAINING UNITS 125 CONSTRUCTION INDUSTRY UNITS 126 HEALTH CARE INSTITUTION UNITS 126
Union Structure 127
Types of Unions 127 CRAFT UNIONS 127 INDUSTRIAL UNIONS 128
Levels of Unions 128 LOCAL UNIONS 128 LOCAL OFFICERS 129 NATIONAL (OR INTERNATIONAL) UNIONS 131 INTERMEDIATE ORGANIZATIONAL UNIONS 131 FEDERATION OF UNIONS 131
Change to Win 132 INDEPENDENT UNIONS 132
Bargaining Unit Determination in the Public Sector 134
Public Sector Unions 134
The Organizing Drive 134
Union Organizing Strategies 136
Union Avoidance Strategies by Management 137
Management “TIPS” and “FORE” in Campaigns 138
Countersalting Steps 141 ORGANIZING AT THE WORKPLACE 141 SOLICITING UNION SUPPORT 141 PICKETING DURING AN ORGANIZATIONAL CAMPAIGN 142
Representation Election Procedures 143
Prohibited Conduct During an Election 146
Voluntary Recognition 148
NLRB Directive 150 FIRST CONTRACT BARGAINING 150
Decertification Elections 152
Representation Elections in the Public Sector 154
Exclusive Representation 154 Summary 155
� CASE STUDY 4-1: Salting 155 � CASE STUDY 4-2: Exclusive Representation 157
You Be the Arbitrator: “Just Cause” for Termination 158
Chapter 5 Negotiation Models, Strategies, and Tactics 160 Negotiating Sessions: “At the Table” 162
Opening Session 162 GROUND RULES 164
Recognizing Common Bargaining Tactics 165 CONFLICT 165 CONCEALMENT 165 PACKAGING 165 THROWAWAY ITEMS 166 CAUCUSING 166 FLEXIBILITY 166 COMPROMISE 167 SAVING FACE 167
Critical Elements in a Negotiation: Information, Time, Power 168
Information 168 BATNA 168 RELATIVE BATNA 168
Ethics in Negotiations 170
Bargaining Strategies 172
Distributive Bargaining 173 THREE KEY STARTING VALUES 174
Opening Offers: Anchors 176 DESIRED OUTCOME STRATEGY 177 NORMS 179 RELATIONAL NORM 180 FAIRNESS NORM 181 RECIPROCITY NORM 182 GOOD-FAITH BARGAINING NORM 182 FRAMING POSITIONS 183 REFRAME OFFERS 183
Use of Framing Questions 184
Applying Norms and Frames 185
Integrative Bargaining 186
Integrative versus Distributive Bargaining 187 THE INTEGRATIVE NEGOTIATION PROCESS 188
Principled Negotiations 188 KEY #1: POSITIONS VERSUS INTERESTS 188 KEY # 2: SEPARATE PEOPLE FROM ISSUES 189 KEY # 3: FOCUS ON OBJECTIVE CRITERIA 189 KEY # 4: DEVELOP MUTUAL GAINS OPTIONS 190 THE CATEGORIZATION METHOD 191
Interest-Based Bargaining 194 IBB STEPS 194
Reaching Agreement 196
Point of Crisis 196
The Closing Stage 196
Tentative Agreement 197 Summary 198
� CASE STUDY 5-1: Good-Faith Negotiations 199 � CASE STUDY 5-2: Selection of Bargaining Team Members 201
You Be the Arbitrator: Negotiations 203
Chapter 6 Negotiating a Collective Bargaining Agreement 205 The Bargaining Process 206
The People Who Bargain 206 UNION REPRESENTATIVES 206 MANAGEMENT REPRESENTATIVES 207 NEGOTIATING SKILLS 207
Preparation Stage 208
Categories of Bargaining Subjects 208 WAGES 211 CONDITIONS OF EMPLOYMENT 212
Sources of Bargaining Issues 213
Bargaining Stage 214
Pressure Bargaining: Possible Strikes 215
Reaching Impasse 215 STRIKES 215 CALLING A STRIKE 215 MANAGEMENT RESPONSE 216 WHY STRIKES OCCUR 217 TYPES OF STRIKES 218
Permanent Striker Replacement 219 PICKETING 221 LOCKOUT 222 NO-STRIKE, NO-LOCKOUT PROVISIONS 222
Resolution Stage: Beyond Impasse 223 MEDIATION 223 INTEREST ARBITRATION 225 FACT-FINDING 225
FINAL-OFFER ARBITRATION 225 MEDIATION–ARBITRATION 226
Reducing an Agreement to Writing 226
Key Provisions of a CBA 227
Union Security 227 UNION SECURITY CLAUSE 228 FORMS OF UNION SECURITY 230
Right-to-Work Laws 231 RESEARCH ON RIGHT-TO-WORK 233 LENGTH OF THE COLLECTIVE BARGAINING AGREEMENT 234
Management Rights 234 RESERVED RIGHTS 235 RESTRICTED RIGHTS 235 GRIEVANCE AND ARBITRATION 236
Contract Bar 236
Bargaining in the Public Sector 237 MULTILATERAL BARGAINING 237 PRESS INTEREST 237 SUNSHINE LAWS 237 NO RIGHT TO STRIKE 238 RESOLVING AN IMPASSE 238 Summary 238
� CASE STUDY 6-1: Surface Bargaining 239 � CASE STUDY 6-2: Impasse in Negotiations 240
You Be the Arbitrator: School Bus Drivers 242
PART III Cost of Labor Contracts 245
Chapter 7 Wage and Salary Issues 245 Union Wage Concerns 248
Worker/CEO Pay Gap 250
Union Wage Objectives 250
Industrial Differentials 252
Management Wage Concerns 252
Wage Laws 253 MINIMUM WAGES 253 OVERTIME COMPENSATION 254 THE DAVIS-BACON ACT 255 WALSH-HEALEY ACT 256
Negotiated Wage Adjustments 256
Standard Rate, Pay Range Systems 256
Piece-Rate Systems 256
Deferred Wage Increases 257
Cost-of-Living Adjustments 258
Profit Sharing 260 VARIABLE WAGE FORMULA 261
Scanlon Group Incentive Plans 261
Two-Tier Wage Systems 262
Lump-Sum Payments 263
Concession Bargaining 264 PUBLIC SECTOR CONCESSIONS 265
Executive Pay 268
Payback Agreements 268
Employer Concessions 268
Wage Negotiation Issues 269
Productivity Theory 269
Ability to Pay 270
Job Evaluation 271
Wage Surveys 273
Costing Wage Proposals 273
Total Negotiated Costs 277 Summary 278
� CASE STUDY 7-1: Premium Pay Rates 278 � CASE STUDY 7-2: Incentive Pay 280
You Be the Arbitrator: Scheduling Saturday as Part of the Workweek 282
Chapter 8 Employee Benefits 285 Required Benefits 287
Negotiated Benefits 288
Income Maintenance Plans 289
Pension Plans 289
Cost Containment 289
Public Sector Pensions 289
Traditional Pension Plans 290
ESOP: An Alternative Retirement Plan 292
Employee Retirement Income Security Act 292
Issues in Pension Negotiations 293 VESTING 293 QUALIFIED PLAN 293 CONTRIBUTORY PLANS 293 AGE OR SERVICE REQUIREMENT 294 DISQUALIFICATIONS 294 BUYOUT 294 BENEFIT FORMULA 294
Wage Employment Guarantees 295
Supplemental Unemployment Benefits 295
Severance Pay 296
Death and Disability Plans 297
Health Care 299
Health Care Cost Containment 299
Behavior Modification Programs 300
Health Reimbursement Arrangements 301
Domestic Partners 301
Voluntary Employees Beneficiary Association 301
Wellness Programs 302
Employee Assistance Programs 303
The Consolidated Omnibus Budget Reconciliation Act 304
Pay for Time Not Worked 304
Paid Holidays 306
Paid Vacations 308
Sick Leave 311
Paid Leaves of Absence 311
Premium Pay 312
Bilingual Language Skills 313
Travel Pay 313
Employee Services 313
Flexible Benefit Plans 314 ADVANTAGES OF FLEXIBLE PLANS 315
Child Care 316 CHILD CARE CENTERS 316
Elder Care Programs 316
Credit Unions 317
Public Sector Benefits Issues 317 Summary 317
� CASE STUDY 8-1: Paid Leaves of Absence 318 � CASE STUDY 8-2: Employee Benefits 319
You Be the Arbitrator: Not Working a 40-Hour Week 321
Chapter 9 Job Security and Seniority 322 Job Security 323
Calculation of Seniority 326
Seniority List 326
Seniority and the Americans with Disabilities Act 328
Job Bidding 330
Layoff and Recall Rights 331
Layoffs and Affirmative Action Plans 334
Advanced Notice of Shutdown 334
Worker Adjustment and Retraining Notification Act 334
Determining Ability 335
Company Mergers 335
Subcontracting, Outsourcing, and Relocating 337
Employee Teams 340
Union Response to Employee Teams 341
Successor Employer Rights 344 BANKRUPTCY 345
Employee Alcohol and Drug Testing 345
Employee Attitudes Toward Drug Testing 349
Social Media Usage 350
Public Sector Security Issues 351 Summary 351
� CASE STUDY 9-1: Relocating Work Without Bargaining 352 � CASE STUDY 9-2: Drug Testing 356
You Be the Arbitrator: Subcontracting Work or Union Busting? 357
PART IV The Labor Relations Process in Action 359
Chapter 10 Unfair Labor Practices and Contract Enforcement 359 Interference with Employees’ Right to Organize 361
Unfair Labor Practices That Interfere With Organizing a Bargaining Unit 362 TYPICAL UNFAIR LABOR PRACTICES IN AN ORGANIZING CAMPAIGN 364 UNION INTERFERENCE WITH AN ORGANIZING CAMPAIGN 367
Employer Domination and Interference 369
Employee Teams and the NLRA 369
Employer Support and Assistance 370
Discrimination Against Union Members 370
Protected Concerted Activities 372 STRIKES 374 ILLEGAL STRIKES 375
Prominent U.S. Strikes 376
Weingarten Rule 378
Union Restraint or Coercion of Employees 379
Duty to Bargain in Good Faith 381
Nature of the Duty 381
Totality of Conduct Doctrine 381
Surface Bargaining 382 DELAYING TACTICS 383 UNILATERAL CHANGES BY EMPLOYER 383 BYPASS THE UNION 384 AUTHORITY TO SETTLE 384 COMMITTING UNFAIR LABOR PRACTICE 384
Duty to Furnish Information 384
Rights and Prohibited Conduct During the Term of a Contract 385
Duty to Bargain during the Contract Term 385
Union Demand to Negotiate During a CBA 386
Employer’s Unilateral Action During a Contract Term 387
Prohibited Economic Activity During a Contract Term 387 SECONDARY BOYCOTTS 388 SHOP-INS 389 HOT CARGO AGREEMENT 389 HOT CARGO AND SWEATSHOPS 390 FEATHERBEDDING 390
The Authority of the NLRB 391 UNFAIR LABOR PRACTICES 391
Section 10(J): Court Injunctions 394 CONTRACT ENFORCEMENT BY NLRB 396
Court and NLRB Deferral to Arbitration 396
Public Sector Unfair Labor Practices and Contract Enforcement 398
Federal Government 398
State and Local Governments 399
Individual Rights Within Unions 399
Duty of Fair Representation in Contract Negotiations 399 RIGHT TO REFRAIN FROM UNION ACTIVITIES 399 UNION SECURITY CLAUSES 399 FAIR REPRESENTATION IN CONTRACT ENFORCEMENT 400 Summary 401
� CASE STUDY 10-1: Unfair Labor Practice by an Employer 401
� CASE STUDY 10-2: Unfair Labor Practice by a Union 402 You Be the Arbitrator: Refusing to Arbitrate 404
Chapter 11 Grievance and Disciplinary Procedures 406 Steps in a Grievance Procedure 409
Step 1: Employee, Steward, Supervisor 410
Step 2: Written Grievance 410
Step 3: Shop Steward, Department Head 410
Step 4: Union Grievance Committee, Director of Personnel and Industrial Relations 411
Step 5: Arbitration 411
Functions of Grievance Procedures 413
Employee Misconduct 414
Minor Offenses 417
Serious Offenses 418
Last Chance Agreement 418
Disciplinary Procedures 419
Disciplinary Procedure 420
Grounds for Discharge 420
Grievance Mediation 422
Public Sector Grievance Issues 424 Summary 425
� CASE STUDY 11-1: Insubordination of a Police Officer While in Pursuit of a Stolen Vehicle 425
� CASE STUDY 11-2: Sleeping on the Job 426 You Be the Arbitrator: Employee Writing Threats 428
Chapter 12 The Arbitration Process 430 Types of Arbitration 431
Demand for Rights Arbitration 434
History and Legal State of Arbitration 435
Arbitration of Statutory Rights in Union and Nonunion Cases 439
Title VII Cases 439
The Federal Arbitration Act and Individual Employment Agreements 440
Selecting the Arbitrator 443
Arbitration Services 444
Qualifications of Arbitrators 444
Tripartite Arbitration Board 446
Determining Arbitrability 447 DOUBLE JEOPARDY 448
Hearing Procedures 449
Opening Statement 449
Rules of Evidence 449
Assessing Credibility of Witnesses 449
Presenting Documents, Photographs, and Videos 450
Examination of Witnesses 450
Arbitrator’s Award and Opinion 450
Case Preparation 451
Decision Criteria 451
Just Cause 452
Seven Tests of Just Cause for Discipline 455
Arbitration Issues in the Public Sector 457
Interest Arbitration 457
Rights Arbitration 458 Summary 460
� CASE STUDY 12-1: Drug and Alcohol Testing 461 � CASE STUDY 12-2: Arbitrability 462
You Be the Arbitrator: Can a “Just Cause” Standard Be Satisfied Without Proving Fault? 463
Chapter 13 Comparative Global Industrial Relations 465 Globalization 467
Foreign Direct Investment 467
Multinational Enterprises 467
Financial Markets 468
Deregulation and Liberalization 468
Trade Unions 469
Worldwide Labor Movement 469
Industrial Revolution 469
Democratic Revolution 470
Capitalist Revolution 470
Growth of Trade Unions 472
International Labour Organization 473
Anglophone Countries 475
Great Britain 475
European Union Nations 480
The European Union 480
Far East 491
Japan 491 THREE KEY PREMISES OF JAPANESE LABOR RELATIONS 491
China 493 Summary 496
� CASE STUDY 13-1: Freedom of Movement 497 � CASE STUDY 13-2: Discrimination Against Union Official 499
You Be the Arbitrator: Minimum Wage 501
Appendix A Texts of Statutes 503 National Labor Relations Act 503
Labor-Management Relations Act 520
Appendix B Collective Bargaining Simulation 532 Appendix C Labor Media Guide 535
The glossary for this text can be found at http://www.prenhall.com/carrell.
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FOCUS OF THE BOOK
Welcome to the tenth edition of Labor Relations and Collective Bargaining, which over the past 30 years has become the standard for labor relations textbooks. The PHR and SPHR Certification Guide lists only one textbook for the employee and labor relations functional area for students preparing for the Society for Human Resource Management (SHRM) professional exams—this textbook! This new edition includes several significant changes from the ninth edition, including two entirely new chapters and a focus on labor relations in the public sector as well as private sector. We sincerely thank the reviewers of prior editions for suggesting many of the changes. The tenth edition contains over 100 updates derived from both court and NLRB decisions and recent labor events. At the same time, it maintains the hallmark features of past editions.
NEW TO THIS EDITION!
• Chapter 1 is a totally new introduction to the field of labor relations, which defines the field of labor relations and explains why all students will learn important organizational concepts that are relevant to many fields of interest. In addition the chapter discusses the pros and cons of labor unions, and why people join unions. Types of unions and labor–management cooperation are also covered.
• Chapter 3 is a totally new chapter that defines public sector labor relations (local, state, federal government) and provides its history. In addition, the chapter outlines important contrasts between private and public sector labor relations.
• Chapter 5 includes an explanation of the two primary methods of negotiation: distributive bargaining and integrative bargaining. Practical “real-life” examples of both methods are included in the chapter. These negotiation techniques can be utilized by students in a variety of personal and professional situations.
• Chapter 5 includes a discussion of ethics in negotiations. In collective bargaining, people are faced with difficult and unique ethical situations as they strive to conceal their “bottom-line” interests while building trust through open, honest negotiations.
• Chapter 6 includes a new section on conflict resolution techniques—mediation, arbitration, and fact-finding. As an alternative to an impasse, these techniques are explained and their advantages and disadvantages presented.
• Chapter 9 includes coverage of social media usage by employees, which has become a growing job security issue. Increasing use of Facebook, Twitter, You Tube, and so on has caused employers to develop and negotiate new policies to address productivity and legal concerns.
• New NLRB and Court Decisions. This edition includes over 100 changes from the prior edition that reflect new NLRB and court decisions as well as recent union and labor relations events.
• Appendix C is a Labor Media Guide which includes a brief summary of a mixture of award-winning documentaries, popular Hollywood first-run movies, and other unique media which focus on labor events and can “bring to life” the human element and circum- stances of American labor history. Each is available on DVD, and the Instructor’s Manual contains suggested scenes, labor issues presented, suggested relevant text chapters, and relevant discussion questions.
Labor Relations and Collective Bargaining: Private and Public Sectors, tenth edition, introduces students to collective bargaining and labor relations with an emphasis on application,
as well as a thorough coverage of labor history, laws, and practices. Drawing on over 60 years of experience in negotiating, labor law, and teaching, we have developed a text for readers who need a practical working knowledge of labor relations in the private and/or public sectors. The text focuses on collective bargaining and labor relations with an emphasis on the real-world situations one faces on the job, including a chapter on negotiating strategies and tactics that can be used in any professional or personal situation. Sections of actual labor agreements as well as ar- bitration cases and decisions of the National Labor Relations Board (NLRB) and the courts illustrate and emphasize contemporary issues of collective bargaining and labor relations. In addition, experts in the fields of labor law and arbitration have contributed tips on how the concepts learned can actually be applied.
The focus of the book is as follows:
a. Appropriate Courses. This text is designed for and has been adopted in both graduate and undergraduate courses in labor relations and collective bargaining in both public sector courses (political science, public administration, etc.) and private sector business management courses.
b. Text Focus. This text provides an applied approach while including thorough coverage of significant court and NLRB decisions as well as labor events.
c. Approach. This text provides an applied, practical approach to labor relations based on the authors’ 60-plus years of experience. The approach is illustrated by the many examples of provisions from current labor agreements and the inclusion of NLRB and court decisions within each chapter, as well as cases for students at the end of each chapter, “Tips from the Experts,” “You Be the Arbitrator” sections at the end of each chapter, and a thorough coverage of all issues contained in collective bargaining agreements.
d. Prerequisites. No specific courses need to be taken before a course that uses this text at the graduate or undergraduate level. Most students have little or no knowledge of the subject before taking such a course.
e. SHRM. This text provides coverage of the employee and labor relations functional areas of the SHRM certification exams.
f. AACSB. This text can be used in a course that is designed to provide coverage of manageri- al content.
A student-oriented chapter format was designed to integrate theory with the bread-and-butter issues at the core of most actual negotiations. This integration, which includes the following material, provides a sense of how issues in the real world are resolved:
• Labor News. These chapter-opening articles summarize current labor relations activities to help students relate current events to the day-to-day labor practices discussed in the chapter
• In-Chapter Marginal Definitions. Terms unique to labor relations and collective bargain- ing are defined in the margins of pages where the term first appears for the convenience of students. A complete glossary of all labor relations and collective bargaining terms and concepts appears online at www.prenhall.com/carrell.
• Chapter Cases. Several short cases, which include the decisions of the arbitrator or judge, illustrate those points discussed within each chapter while bridging the gap between theory and practice.
• Tips from the Experts. In several chapters labor relations professionals answer questions about the collective bargaining process and point out pitfalls for employers and employees involved in the labor relations field.
• Labor Profiles. In many chapters, a number of profiles of labor leaders or of innovations in the labor relations process help the student understand the concepts in the chapter and the history of labor relations in the United States.
• Contract Provisions. Illustrating key provisions with numerous new examples from contracts, including Agreement between General Electric Aviation and Lodge No. 912, International Association of Machinists and Aerospace Workers, AFL-CIO, 2007–2011; Agreement between the Kroger Company and the United Food and Commercial Workers International Union AFL-CIO, 2007–2010; Agreement between Louisville/ Jefferson County Metro Government and Fraternal Order of Police Lodge # 614, 2008–2011; Agreement between Duke Energy Ohio, Inc. and local Union 1347 International Brotherhood of Electrical Workers, AFL-CIO, 2006–2009; and Agreement between C. Lee Cook Division, Dover Resources, Inc. and Lodge No. 681, International Association of Machinists and Aerospace Workers, AFL-CIO, 2007–2012.
Chapter-end and end-of-text materials include the following:
• “You Be the Arbitrator.” A real-world arbitration case at the end of each chapter allows students to assume the role of arbitrator who is presented with the facts, relevant provisions of a labor agreement, and the positions of the union and management. Students are asked to decide an award and opinion, cite the most relevant facts, and decide what actions might have taken to avoid the conflict.
• Case Studies. Case studies help students understand both sides of the issues. The case studies describe the facts and lawsuits, but actual decisions are not provided. These cases are taken from court and NLRB decisions and allow students to play the role of the arbitrator or judge in deciding cases.
• Key Terms and Concepts. A list of the important terms and concepts discussed in the chapter, including the vocabulary unique to labor relations, is provided. The student should be able to recognize, define, and discuss the terms after completing the chapter. Key terms appear in boldface and are defined in context.
• Review Questions. Straightforward questions focus on the major areas covered. If the review questions present any difficulty, the student should reread the appropriate material.
• Glossary. A glossary of all key terms that appear in bold print in the chapters can be found online at www.prenhall.com/carrell.
• Texts of Major Labor Legislation. The text of the National Labor Relations Act and the Labor Management Relations Act, as amended, is included at the end of this book to provide a ready reference to these important documents.
This text comprehensively treats the environment of labor relations, the activity of collective bargaining, and the need for administrating an agreement after it has been signed. The text explores labor relations issues in both the private and public sectors, the impact of diversity in the workplace, and how global labor relations affect U.S. interests.
Part One traces the development of collective bargaining. Chapter 1 outlines exactly what is the field of labor relations and why students should study it. Also, the pros and cons of unions and why people join unions are discussed. Chapter 2 focuses on the roots of the American labor movement and discusses the laws that led to and finally established the collective bargaining process. Chapter 3 discusses the history of public sector labor relations (local, state, federal governments). In addition significant contrasts between the private sector (for-profit small to large businesses) and public sector are explained.
Part Two examines the collective bargaining process. Chapter 4 discusses how bargaining units are formed, the organizational campaigns by both unions and employers, and the represen- tation election process. The rights of unions to represent members as well as the obligations of unions to their members are also explored in this chapter. Chapter 5 outlines the bargaining process “at the table” including the two most common negotiating methods, distributive and integrative bargaining, as well as the critical elements of time, information, power, and BATNA. In addition the unique ethical challenges faced by negotiators are discussed. Chapter 6 provides a detailed discussion of the collective bargaining process, including preparation and bargaining subjects, strikes, and key contract provisions. Part Three covers the costs of collective bargaining agreements. Chapter 7 covers wage and salary issues including the different types of compensa- tion provisions that are negotiated in collective bargaining agreements. Chapter 8 looks at the benefits negotiated in most contracts, including forms of pay for time not worked, pensions, health care, premium payments, and employee services. Chapter 9 presents the critical issues of job security and employee seniority and alcohol and drug testing. In addition new important issues including employee social media usage and employee teams are presented.
Part Four presents the operational processes involved in enforcing collective bargaining agreements. Chapter 10 explores unfair labor practices, protected and prohibited employee activi- ties, duty to bargain in good faith, and the NLRB. Chapter 11 presents widely used grievance and disciplinary, types of employee misconduct, and procedures to resolve grievances between employers and employees. Chapter 12 describes the types of arbitration used in labor relations, the historical and legal state of arbitration, and the arbitration process Chapter 13 is a timely look at globalization and its impact on U.S. workers. The chapter contains a comparative review of the worldwide labor movement as well as the state of industrial relations in other countries, including Great Britain, Germany, Japan, and China.
The site http://www.pearsonhighered.com/educator is where instructors can access the resources available with this text in downloadable, digital format.
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To access the supplements listed here, please visit the Instructor’s Resource Center (IRC) Online at www.pearsonhighered.com/carrell.
Collective Bargaining Simulation Appendix B provides a collective bargaining simulation of an actual agreement negotiated by the authors. The instructor can access the following: the entire agreement, a list of the priorities of both the union and management that were involved in the negotiations, a summary of the changes agreed to in the actual negotiation, and the entire new agreement at www.pearsonhighered.com/carrell.
This bargaining exercise is based on a real-world negotiation involving the renegotiation of a contract between the Fraternal Order of Police union and management of the Louisville Metro Police Department. Students can negotiate an agreement in which several pay and benefits issues as well as noneconomic issues are addressed. The instructor may share with students the actual new agreement negotiated by the parties after their own negotiations have been completed.
Exercises Student exercises that appeared at the end of chapters in prior editions are now available to the instructor in the Instructor’s Manual.
The website www.pearsonhighered.com/carrell features an interactive and exciting online student study guide. Students can access multiple-choice, true/false, and Internet-based essay questions that accompany each chapter in the text. Objective questions are scored online, and incorrect answers are keyed to the text for student review.
CourseSmart eTextbooks Developed for students who want to save on required or recommended textbooks, CourseSmart eTextbooks online save students money off the suggested list prices of the print text. Students simply select their eText by title or author and purchase immediate access to the content for the duration of the course using any major credit card. With a CourseSmart eText, students can search for specific keywords or page numbers, make notes online, print out reading assignments that incorporate lecture notes, and bookmark important passages for later review. For more information or to purchase a CourseSmart eTextbook, visit www.coursesmart.com.
We wish to thank the collective bargaining, labor law, and arbitration experts who so graciously agreed to contribute to the text. They are Kay Wolf and Thomas C. Garwood, Jr., formerly of Garwood, McKenna & McKenna, P.A., Orlando, Florida; Nancy E. Hoffman, general counsel, Civil Service Employees Association, Inc., Local 1000, AFSCME, AFL-CIO, New York; Phyllis Florman, arbitrator, arbitration office of Volz & Florman, Louisville, Kentucky; Scott D. Spiegel of Lynch, Cox, Gilman & Mahan, P.S.C., Louisville, Kentucky; Steve Barger, executive secretary-treasurer, Kentucky State District Council of Carpenters, AFL-CIO; Kenzie Baker, vice president, Local Union 1347 International Brotherhood of Electrical Workers, AFL-CIO; Richard A. Ille, vice president, General Electric Aviation, Evendale, Ohio; Mr. Lennie Wyatt, president, Local 1099, United Food and Commercial Workers Union, Monroe, Ohio; Kevin Garvey, director collective bargaining UCFW Union, Local No. 1099, Monroe, Ohio; Lisa Crain, director human resources, C. Lee Cook, Louisville, Kentucky; Frank E. Warnock, City Solicitor, City of Covington, and for his numerous and significant contributions, a special acknowledg- ment of Louis J. Manchise, vice-chair, Alternative Dispute Resolution Center, NKU, and former director, Federal Mediation Service, FMCS.
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ABOUT THE AUTHORS
Michael R. Carrell Dr. Carrell is the founding director of the Alternative Dispute Resolution Center at Northern Kentucky University, located in the greater Cincinnati area. In 2010 Dr. Carrell received the pres- tigious Lifetime Achievement Award at the Annual Labor–Management Conference for his career as a negotiator, author, and teacher in the field of human resource management and labor relations. From 1998 to 2007, he served as the dean of the NKU College of Business. Carrell received his doctorate from the University of Kentucky, and his MBA and BA in economics from the University of Louisville. In addition he received professional certification from the Harvard Law School Program on Negotiation. His professional career has included positions as a person- nel director, labor negotiator, and mediator. In addition, he was elected to the City of Louisville Board of Aldermen for five terms, and served as president of the board and mayor pro tem for three terms. His academic career spans four decades and includes positions at the University of Louisville, as well as serving as business dean at California State University, Bakersfield; University of Nebraska–Omaha; Morehead State University; and Northern Kentucky University.
Dr. Carrell has authored over 50 scholarly works in some of the leading management and human resource journals including The Academy of Management Journal, The Academy of Management Review, The Dispute Resolution Journal, Organizational Behavior and Human Performance, Personnel Journal, The Personnel Administrator, HR Magazine, Labor Law Journal, Business Forum, Personnel, The Journal of Accountancy, Training, and Public Personnel Management. Dr. Carrell has also published several books in the fields of negotiation, collective bargaining and labor relations, organizational behavior, and human resource manage- ment. During his academic career he has received awards for both outstanding research and teaching.
Christina Heavrin Ms. Heavrin has practiced law for 32 years primarily in the public sector as an attorney for local government in her hometown of Louisville, Kentucky. In addition to negotiating numerous litigation settlements and contracts, she has negotiated a number of major agreements, such as a multimillion-dollar property exchange that relocated major industries and railroads from the city’s downtown wharf, resulting in the development of both an award-winning public park and a successful industrial park in the city’s enterprise zone; an agreement between the state of Kentucky, Jefferson County, the City and a for-profit hospital for guaranteed indigent health care services for city residents; a tax-sharing agreement between the City of Louisville and Jefferson County that enabled the two governments to share revenue of over $200 million and to combine their economic development programs; and a multimillion-dollar expansion of Waterfront Park that included a major environmental cleanup and the construction of a minor-league baseball stadium in downtown Louisville. When voters approved the merger of the City of Louisville and Jefferson County Governments, Ms. Heavrin was appointed special counsel to the first mayor of the Metro Government. Her duties included negotiating over 40 collective bargaining agree- ments between Louisville Metro Government and unions that represent about 6,000 employees. Recently Ms. Heavrin was appointed General Counsel to the Kentucky Cabinet for Health and Family Services by Governor Steve Beshear.
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Workers have a right to organize into unions and to bargain collectively with their employers . . . and a strong free labor movement is an invigorating
and necessary part of our society
DWIGHT D. EISENHOWER (34TH U.S. PRESIDENT)
Chapter Outline 1.1 Welcome! 1.2 What Is Labor
Relations and Why Study It?
1.3 Labor Unions Today: Pros and Cons
1.4 Why Join a Union? 1.5 Union Membership 1.6 Opportunities for
1.7 Labor–Management Cooperation
1.8 GM/NUMMI 1.9 Types of Unions
1.10 Unions in Professional Sports
1.11 National Labor Relations Board (NLRB)
Introduction to Labor Relations
PART I Labor Relations Overview
The rights of public sector employees to form unions and collectively bargain came under attack in Wisconsin, Indiana, and Ohio as Republican governors sought large wage and benefit concessions to balance state budgets. Source: David Joles/The Star Tribune/AP Images.
2 Part I • Labor Relations Overview
Collective Bargaining Rights and Public Unions in Historic Fight!!! In 2011 public sector unions’ very right to exist was challenged in a fashion unlike any other in modern times! Midwestern states including Indiana, Ohio, and Wisconsin—the state that gave birth to public sector unions in the 1950s—witnessed Republican governors and state houses not only demanding large cuts in wages and benefits to balance state budgets, but also go so far as to try and strip government employees of their right to form unions and bargain collectively. In Wisconsin, for example, union leaders agreed to accept the cuts needed to balance the state budget, but Governor Scott Walker still demanded that public employees’ right to bargain collectively be ended by state law. Many including Republican Pat Wellnitz asked why it is necessary to strip employees of their rights if they are willing to make the necessary conces- sions; “ending collective rights is pretty drastic, even for a staunch Republican,” said Wellnitz. Newly elected Republican Ohio governor John Kasich, citing budget problems, also supported a bill that would end the collective bargaining rights for 35,000 state workers and 20,000 university employees in his state. In addition, police and firefighters would lose the right to binding arbitra- tion required to end a negotiation impasse. However, Hamilton County commissioner Todd Portune testified before a legislative committee that in Cincinnati local unions had “pitched in” to make the cuts needed to balance the budget. These