MGMT 360 Chapter 6 Collective Bargaining

Collective Bargaining

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Bargaining Structure

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Pattern Bargaining

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Bargaining Unit

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Lock-in agreement between unions

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Leapfrogging

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Whipsaw bargaining strategy

-An employer's use of the terms of an agreement with one bargaining unit as leverage in negotiating with other bargaining units.

Withdrawal from multi-employer bargaining group

-An employer cannot withdraw from bargaining without the union's consent once bargaining has commenced.

Selection of the Negotiating Team: Size

-Smaller is better (no more than nine members).
-Parties may attempt to match the size of the other team.
-Centralized bargaining tends to expand team size.

Selection of the Negotiating Team: Member Qualifications

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Reasons for Costing Proposals

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General Costing Approaches

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Distributive bargaining

-Negotiation process is a win-lose (zero-sum) exercise in which one party must lose something in order for the other party to win.
-Each party relies on its bargaining power to come as close as possible to the other party's resistance point.

Integrative (win-win or interest-based) bargaining

-Both bargaining parties seek to satisfy each party's substantive interest while strengthening their relationship.
-The effect of bargaining power is reduced by advance agreement on how bargaining proposals will be evaluated.

Strategies and Tactics

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Chamberlain and Kuhn's Concept of Bargaining Power

-A party's power is defined as equal to the other party's cost of disagreement divided by their cost of agreement to the first party's terms.

Assumptions

-Both parties are rational and use the same approach to the costing of proposals.
-Either party will accept the other party's proposal if it costs that party more to disagree than to agree.
-Bargaining power "costs" can be estimated precisely and aren't s

Factors Affecting Bargaining Power

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Factors Affecting a Union's Disagreement and Agreement Costs

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Factors Affecting Management's Agreement and Disagreement Costs

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Intraorganizational Bargaining

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Ethical and Legal Considerations in Collective Bargaining

-Unacceptable negotiating tactics
-Emotional manipulation
-Misrepresenting information
-Inappropriate information gathering
-"Bluffing" - making false promises or threats with no intention to execute them
-Misrepresenting information to your opponent's co

Conformance to Professional Standards by Negotiators

-To obtain the best possible settlement benefiting their party's interests.
-To convince the parties involved that they are effective negotiators.
-To communicate honestly and respectfully so as to enhance the continuing labor relations relationship.

Good Faith Bargaining

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Totality of Conduct

-NLRB assesses a party's overt behavior and intent in deciding the merit of an unfair labor practice charge.

Sources of Violations of Good Faith Bargaining

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Categories of Bargaining Issues: Illegal Subjects

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Mandatory Subjects

-Issues that directly affect wages, hours, and terms and conditions of employment.
-Issues that can be bargained to impasse (neither party will agree to a change of position on the issue).

Voluntary (Nonmandatory or Permissive) Subjects

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Specific Bargaining Violations: Management Per Se ULPs

-Refusing to meet with the union to negotiate proposals.
-Implementing a wage change without consulting the union (unilateral change in a mandatory item).
-Reaching a bargaining impasse on a nonmandatory issue.
-Refusing to furnish information necessary f

Union Per Se ULPs

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Totality of Conduct Doctrine

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Boulwarism

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Bad-Faith Bargaining Conduct

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Management Rights

-The discretionary freedom of management to decide about and to direct the operations of the firm is derived from:
-The property rights of the owner.
-The laws of agency�the legal responsibility of managers to act as agents for the owner.

Reserved Rights Doctrine

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Successor Employer

-Has a legal duty to bargain with an existing union over the terms of a new labor agreement if there is substantial continuity in the operation of the purchased firm as determined by:
-Percentage of union employees retained.
-Change in the location of the

Successorship Clause

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The Bildisco Decision

-A bankrupt firm can abandon (or seek modification of) the terms of a labor contract if:
-The firm seeks to make a fact-based proposal to the union to modify the contract.
-Modification is necessary to reorganize the firm and treats all parties fairly.
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Remedial Orders of the NLRB

-A cease-and-desist order that halts further ULPs
-A requirement to post written notices of employee basic rights under the LMRA, ULPs, and the respondent's pledge to cease ULPs
-A requirement to take affirmative actions (make-whole remedies) that restore

Ratification

-Union negotiators are typically only authorized to reach a tentative agreement on contract terms.
-Indicates union members' approval of, but not necessarily satisfaction with, contract provisions.

Factors Affecting Ratification

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