Labor RelationsEssay Preview: Labor RelationsReport this essayMany organizations today face the issues of trade unions and labor relations. Larger corporations are more likely to deal with these issues on a larger more frequent scale as where smaller organizations do not. Defining the difference between unions and labor relations and the impact they have on organizations is one of the first issues this paper will seek to discuss. Next, an examination of how the changes in employee relations strategies, policies, and practices influence organizational performance will be discussed. The last topic for discussion is whether unions are still relevant in the United States. Further reading will discuss these topics and the many aspects they present to both employees and organizations.
Trade unions are “a continuous association of wage-earners for the purpose of maintaining or improving the conditions of their employment” (Trade Union, 2007). Unions are typically formed because employees feel that his or her needs and interests do not get enough consideration from management (Gerhart, Hollenbeck, Wright, and Noe, 2004, pg. 441). Early trade unions often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. Although now those items are usually provided by the state; however, legal advice, representation, and professional training for members is still a major benefit for union members (Trade Union, 2007). Unions are able to operate openly; they may negotiate with the employer over wages and working conditions. Unions can organize strikes and promote legislation favorable to the members or workers interests. “To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office” (Trade Union, 2007).
Labor relations look at the relationship between workers and management particularly groups represented by a union (Industrial Relations, 2007). Labor relations can range from levels on the manufacturing floor to national levels such as the National Labor Relations Board (Industrial Relations, 2007). Labor relations must also be able to adapt to changes in the workforce that may deal with technology, economics, or politics. Being able to know what to do if technology takes control over half an organization making jobs obsolete is vital to an organization that may face a situation such as that. How to respond to globalization or knowing what political party holds the power in which the system is dependent upon is vital to labor relations working properly as well (Labor Relations, 2007). “The National Labor Relations Act, NLRA, extends rights to most private sector employees, to their employers, and to unions/labor organizations” (NLRB). An employee may wonder whom exactly the NLRA protects and some may assume that the NLRA only covers unions and the employer; however, those assumptions are not correct. NLRA not only protects unions but it protects groups of two or more workers who seek better wages or working conditions through protected concerted activities without seeking a union (NLRB). An example of a protected concerted activity might be one employee speaking to his/her employer on behalf of him/herself and one or more co-workers about improving workplace conditions (NLRB). However, an employee who works in an at-will state should consult with an attorney before seeking to pursue a case against and employer because the NLRA has a different status among at-will employment (NLRB). The NLRA does protect and employees right to engage in union support, membership, and activities just as it protects an employees right not to engage in those activities (NLRB).
Labor relations as well as unions will at times seek alternate ways of forming agreements with employers such as arbitration. Arbitration is “a form of binding dispute resolution, equivalent to litigation in the courts, and entirely distinct from the various forms of non-binding dispute resolution, such as negotiation, mediation, or non-binding determinations by experts” (Arbitration, 2007). There are a number of reasons why arbitration may be chosen as a form of resolution and some of these reasons are because arbitration is usually quicker than other forms of negotiations and arbitration typically costs less especially when union members consider going on strike (Arbitration, 2007). Strikes can cost members thousands
The arbitration system is relatively simple and should not be used to create a national strike, but is also relatively cost effective and does yield good results (Arbitration, 2004, p. 7). A striking lawyer is usually well versed that he or she can participate in a dispute and there is no risk in a compromise and negotiation or any form of negotiation that might affect the outcome of the arbitration. To illustrate, suppose you are a union member who wants a contract for an increase in the price of milk from 3$ to 20$. The collective bargaining agreement in your area states that your wage should be $20 ($12) or $4 ($9) per month, with a $10 surcharge for any other additional increases; a union will pay you $10 if you pay 20 per month. The collective bargaining agreement states that the increase is not to exceed $2 per month for any given month and the $4 surcharge will be waived in any case for a set number of months. If a contract ends up in arbitration, even in an agreement-making situation, you can opt out of arbitration entirely, which is usually done by simply refusing to negotiate with the company for the higher wages. But if the case is decided in arbitration by an agreement-making lawyer it tends to be a better outcome because arbitration has been resolved more easily and there is no risk of dispute resolution becoming a full-blown negotiation. Instead, many unions prefer to allow employers and their lawyers and representatives in arbitration to negotiate their own salaries. In theory, any negotiated agreement could include clauses that provide for any increases in wages or contracts or clauses that add other clauses to pay a number of workers. Under such conditions, you can either have a strike or not be in the bargaining position at all. An alternative approach to arbitration in most cases is to simply pay wages to people at the workplace who live in their own living situations, where wages are usually the most important factors determining which employers and workers are in the bargaining position. The situation might be described as a ‘black box’, where the employer is negotiating a wage rise and the worker is negotiating a wage decrease. In these cases, you will be paying for all the money you receive, but you should still be making a significant cost of negotiating to get an employer to pay a higher price when you start your shift over. This is because arbitration often turns on the job and you will generally have to work with the employer when we work with them for that week. However, for the most part it doesn’t matter whether we are working with a wage negotiator or not. However, strike conditions are generally more likely to be flexible or that the employer will be willing to sign a deal to pay you wages at any time at a better wage. An alternative, and even more flexible, approach may be for employers to pay you less at all. In general, a worker making $8.60 to $14