Business Law 101

By Albert L Kelley

PHASES OF LABOR RELATIONS

 

 

There are three phases in the labor relations process: First is the recognition of the legitimate rights and responsibilities of the union and the management representatives. This includes the right of employees to unionize and the responsibilities under the various laws.

 

Second is the negotiation of the labor agreement, which includes the strategies employed during the negotiations. Third is the administration of the labor agreement; that is, making sure all the provisions of the agreement are followed. This includes the procedures for strikes and lock-outs when provisions are not followed. These phases are cumulative. Each relies on the previous phase to work. If you don’t recognize a union’s right to form, you won’t negotiate an agreement. If you don’t negotiate the agreement, there is nothing to administer.

 

Labor relations involve various participants: management officials, union officials, employees, government, and even third parties, such as mediators and negotiators. These players are grouped into two sections which reflect the workers and the management. The workers are often in a tough position here, especially if they like their employer. If the employer takes care of the workers, they may feel a loyalty to the employer as well as a loyalty to their union. This can cause a conflict, as their interest are not necessarily the same and a benefit to one may hurt the other. Management’s primary responsibility is to the shareholders. If the management goes against the wishes of the union, the union may go on strike which could hurt the value of the shares.

 

There are various influences that affect labor relations. These include technology, the market, public opinion and the economy.   Each of these plays a part in the negotiating a labor agreement. For example, if public opinion is against the unions, their position is weaker and the terms are less advantageous. This is why, when there is a strike, both sides try to flood the media with their positions to sway the public to back them. Another example is technology. If a business is trying to bring in robotics, the workers could see this as a threat to their jobs, even though it may strengthen the company as a whole.

 

The company may determine that for economic reasons it needs to take a non-union strategy. These include the following:

 

Union Suppression – This is an attempt to bust up an already existing union. It includes the use of illegal tactics, refusing to bargain with the union in violation of the NLRB, decertification of the union, filing for bankruptcy and encouraging strikes so that non-union replacement workers can be brought in.

 

Union Avoidance – The employer attempts to eliminate the need for a union through positive human resource techniques. Another method is to develop subsidiary companies – one with a union and one without (called double-breasting).

 

Union Substitution – This includes various tactics used to take over the purpose of the union such as forming employee committees for the discussion of grievances, paternalism – where the employer takes a fatherly position with his employees, worker participation in company decisions and company sponsored employee organizations.

 

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Leo University. He is also the author of “Basics of Business Law” and “Basics of Florida’s Small Claims Court” (Absolutely Amazing e-Books). This article is being offered as a public service and is not intended to provide specific legal advice. If you have any questions about legal issues, you should confer with a licensed Florida attorney.

 

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