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For The Purposes Of This Assignment, You Are A Union Steward Elected By The Members Of The Student Solidatity Union To Advocate For Them.

Utilizing information in the textbook, fill up the form and explain why you chose the form you chose. Defend your decision. Your answer should include a discussion of the advantages and disadvantages of your chosen path.

Labor Relations and Collective Bargaining

PRIVATE AND PUBLIC SECTORS

Tenth Edition

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

Louisville, Kentucky

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Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps.

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

2011033786

ISBN 10: 0-13-273001-4 ISBN 13: 978-0-13-273001-3

10 9 8 7 6 5 4 3 2 1

DEDICATION

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.

Christina Heavrin

Reviewers:

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

iii

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.

iv

BRIEF CONTENTS

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

v

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CONTENTS

Preface xxi

Acknowledgments xxv

PART I Labor Relations Overview 1

Chapter 1 Introduction to Labor Relations 1 SHRM CERTIFICATION 3

Welcome! 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

GM/NUMMI 24

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

vii

� 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

viii Contents

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

Privatization 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

Contents ix

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

Salting 137

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

x Contents

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

Time 168

Power 169

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

Contents xi

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

xii Contents

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

Contents xiii

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

Base 275

Roll-Up 276

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

xiv Contents

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

Seniority 325

Calculation of Seniority 326

Seniority List 326

Seniority and the Americans with Disabilities Act 328

Superseniority 329

Promotions 329

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

Contents xv

Determining Ability 335

Company Mergers 335

Subcontracting, Outsourcing, and Relocating 337

Employee Teams 340

Union Response to Employee Teams 341

Successorship 343

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

xvi Contents

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

Contents xvii

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

Summation 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

xviii Contents

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

Canada 478

Australia 479

European Union Nations 480

The European Union 480

Germany 484

France 485

Italy 488

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

Endnotes 538

Index 559

The glossary for this text can be found at http://www.prenhall.com/carrell.

Contents xix

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PREFACE

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,

xxi

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.

PEDAGOGICAL FORMAT

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.

xxii Preface

• 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.

COMPREHENSIVE COVERAGE

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.

Preface xxiii

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.

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