10.3 Labor unions and collective bargaining

Labor unions and collective bargaining are crucial aspects of employment law and labor relations. These institutions aim to protect workers' rights and improve their working conditions through organized representation and negotiation with employers.

The collective bargaining process involves preparation, negotiation, and ratification of agreements between unions and employers. This process is governed by laws like the National Labor Relations Act, which establishes rights and responsibilities for both employees and employers in the unionized workplace.

Labor Unions in the US

Role and Purpose of Labor Unions

Top images from around the web for Role and Purpose of Labor Unions

• 

  On this Labor Day, let’s remember what unions have done for America - Fabius Maximus website View original

  Is this image relevant?

• 

  Progressive Charlestown: The Workers First Agenda View original

  Is this image relevant?

• 

  The Labor Relations Process | OpenStax Intro to Business View original

  Is this image relevant?

• 

  On this Labor Day, let’s remember what unions have done for America - Fabius Maximus website View original

  Is this image relevant?

• 

  Progressive Charlestown: The Workers First Agenda View original

  Is this image relevant?

1 of 3

Top images from around the web for Role and Purpose of Labor Unions

• 

  On this Labor Day, let’s remember what unions have done for America - Fabius Maximus website View original

  Is this image relevant?

• 

  Progressive Charlestown: The Workers First Agenda View original

  Is this image relevant?

• 

  The Labor Relations Process | OpenStax Intro to Business View original

  Is this image relevant?

• 

  On this Labor Day, let’s remember what unions have done for America - Fabius Maximus website View original

  Is this image relevant?

• 

  Progressive Charlestown: The Workers First Agenda View original

  Is this image relevant?

1 of 3

• Represent the collective interests of workers in a particular industry or occupation
• Negotiate with employers on behalf of their members to secure better wages, benefits, and working conditions
• Engage in collective bargaining with employers to establish the terms and conditions of employment for their members, which are typically outlined in a legally binding contract (collective bargaining agreement or CBA)
• Advocate for workers' rights and interests through political lobbying, public campaigns, and legal action
  • Support legislation that benefits workers (minimum wage increases, workplace safety regulations, and anti-discrimination laws)
• Provide various services to their members (job training, legal representation, and grievance procedures for resolving disputes with employers)

Decline of Labor Unions in the US

• Union membership has fallen from a peak of around 35% of the workforce in the 1950s to about 10% in 2021
• Decline attributed to factors such as globalization, automation, and changes in labor laws and public attitudes towards unions

Collective Bargaining Process

Stages of Collective Bargaining

• Preparation: Union and employer gather information and develop their bargaining positions
• Negotiation: Parties meet to discuss and negotiate the terms of the CBA
• Ratification: If an agreement is reached, it is submitted to the union membership for ratification

Legal Framework for Collective Bargaining

• Primarily established by the National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act
  • Guarantees the right of private sector employees to organize, join unions, and engage in collective bargaining
• National Labor Relations Board (NLRB): Independent federal agency responsible for enforcing the NLRA and overseeing the collective bargaining process
  • Conducts union elections, investigates unfair labor practices, and adjudicates disputes between unions and employers
• Principle of "good faith" negotiation: Requires both parties to make a sincere effort to reach an agreement
• Employers are prohibited from engaging in unfair labor practices (interfering with union activities or discriminating against employees based on their union membership)

Rights and Responsibilities under the NLRA

Employee Rights

• Organize, form, join, or assist labor unions
• Engage in collective bargaining through representatives of their own choosing
• Participate in concerted activities for the purpose of collective bargaining or other mutual aid or protection (known as "Section 7 rights")

Employer Responsibilities

• Prohibited from interfering with, restraining, or coercing employees in the exercise of their Section 7 rights
  • Cannot threaten employees with adverse consequences for engaging in union activities, promise benefits to discourage union support, or spy on union meetings
• Must bargain in good faith with the union that represents their employees
  • Make a sincere effort to reach an agreement, provide relevant information requested by the union, and refrain from unilateral changes to the terms and conditions of employment without first bargaining with the union

Employee Responsibilities and Protections

• Abide by the terms of the collective bargaining agreement (job duties, work schedules, and dispute resolution procedures)
• Allowed to engage in strikes and other concerted activities to pressure employers during collective bargaining
  • Employers may hire replacement workers during a strike but cannot terminate striking employees or refuse to reinstate them after a strike ends

Impact of Labor Unions and Collective Bargaining

Positive Effects

• Improve wages, benefits, and working conditions for their members through collective bargaining
  • Can lead to higher job satisfaction, employee morale, reduced turnover and absenteeism, and increased productivity
• Collective bargaining agreements often include grievance procedures and due process protections
  • Promote fairness and stability in the workplace, reduce conflict, and improve communication between employees and management

Negative Effects

• Increase labor costs for employers, which may lead to reduced profitability or competitiveness
  • Higher wages and benefits negotiated by unions can put financial pressure on organizations, particularly in industries with thin profit margins or intense competition
• May lead to adversarial relationships between employees and management, especially during contentious contract negotiations or strikes
  • Can create a climate of distrust and hinder cooperation and flexibility in the workplace
• Unions may resist changes to work practices or technology that could displace workers, potentially impeding innovation and productivity
• Collective bargaining agreements may limit management's ability to make quick decisions or adapt to changing market conditions

Empirical Research Findings

• Mixed results on the impact of unions on organizational performance
  • Some studies suggest unionized firms have lower profitability and productivity compared to non-union firms
  • Others find no significant difference or even positive effects in certain industries or regions