Transcript Slide 1

Redefining Union
Prevention
Including an overview of the
Employee Free Choice Act (EFCA)
Agenda
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Overview of EFCA
NLRB Changes During Clinton Administration
Why Companies Oppose Unions
Company Employee Relations Strategy
Why Employees Organize
Managers and Supervisors Role in Maintaining Union Free
Status






Do’s – Don’ts
Typical Unionization Process
Early Warning Sign
Union Authorization Cards
Election Procedures
Overview of Company Labor Audit
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What is a Union
A labor union is a group of employees that
ban together to bargain collectively with
their employer.
 Unions just like companies are in business
to make money.
 Employees who are happy – who like their
work and their supervisor – have no
interest in a union.

3
National Labor Relations Board
Union Election Statistics
Fiscal Year 2008
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No. Union Elections
No. Won by Union
No. Lost by Union
Total Employees Voting
Total Employees Unionized
Total Employees Remaining
Union Free
1,503
938 (62.4%)
565 (37.6%)
104,382
61,950
42,432
4
Overview of
Employee Free
Choice Act (EFCA)
Employee Free Choice ACT
(EFCA) is legislation to “Amend the
National Labor Relations Act”
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QUOTE
“I support this bill because in order to restore a sense of
shared prosperity and security, we need to help working
Americans exercise their right to organize under a fair and
free process and bargain for their fair share of the wealth our
country creates.”
“The current process for organizing a workplace denies too
many workers the ability to do so. The Employee Free
Choice Act offers to make binding an alternative process
under which a majority of employees can sign up to join a
union. Currently, employers can choose to accept—but are
not bound by law to accept—the signed decision of a majority
of workers. That choice should be left up to workers and
workers alone.”
Senator Barack Obama, 2007
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EFCA
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Can eliminate secret ballot elections
NLRB can force union representation with
majority “card check” process
Union can demand bargaining to begin after
certification
If contract is not signed within 90 days union or
employer can request federal mediation
Can lead to binding arbitration within 30 days
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EFCA cont.
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Damages of three times back pay for unlawfully
terminated employee
EFCA would impose $20,000 penalty upon each
violation
March 1, 2007 House of Representatives
passed the Act by vote of 241 to 185
March 30, 2007 Senate voted 51 – 48 to table
discussion. 60 votes are needed to re-address
bill…stay tuned.
President Obama (co-sponsor) has promised to
sign bill if passed.
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EFCA
Small Business Exemption

Small businesses are excluded providing:
 $500,000
gross volume (1959)
 $3.3 million (based on inflation today)
 Must have minimum of 3 bargaining eligible
employees
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CURRENT NLRB Rules vs. EFCA
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Current
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Union Authorization Cards
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Secret Ballot Election within
42 days

NLRB Certified Election
If Union Wins:

Both parties must bargain in
good faith

EFCA
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Union Authorization Cards
showing majority status
If Union Wins:

Both parties must bargain in
good faith
 If no agreement in 90 days –
federal mediation
 If no agreement in 30 days of
mediation – binding arbitration
for 2 year contract
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CURRENT NLRB Rules vs. EFCA
Improper Termination During Organization Process

Current
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Re-instatement
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EFCA
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Back pay plus 2X liquidated
penalties for improper
termination
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Civil penalties of up to
$20,000 per violation
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Section 8 Restrictions
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Employers shall not
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Interfere with employees
engaging in concerted
activity
Dominate or assist labor
unions
Discriminate because of
concerted activity
Retaliate for filing charge
with the Board
Refuse to bargain
collectively with Union
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Unions shall not
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Restrain or coerce
employees engaged in
concerted activity
Cause discrimination
against employee b/c of
union membership
Refuse to bargain
collectively with Employer
Engage in unlawful strikes
or boycotts or numerous
other specified activities
Charge excessive or
discriminatory fees
Engage in unlawful
picketing
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Clinton Administration’s Impact on
Organized Labor
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Reduced time from petition to election from 50 to 42
days
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AFL-CIO loan of $10 MM to Teamsters strike fund
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AFL-CIO devoted 34% of budget to organizing (3%
previous)
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AFL-CIO re-opened Organizing Institute and tripled
in size
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Linda Chavez-Thompson first female minority
executive
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Clinton Administration’s Impact on
Organized Labor
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Continue to offer 100% backing to Edward Kennedy
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Union elections increased 12% with union winning
50.3%
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Hiring and training new organizers at record rate and
targeting women and minorities
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College students recruited for summer organizing
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Created long-term organizing strategies involving
southern and midwestern United States
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Clinton Administration’s Impact on
Organized Labor
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Increased visibility of local organizing efforts by
aligning with churches, religious and Civil Rights
organizations
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Increased lobbying efforts for more liberal changes
in labor laws that support organizing efforts
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Established corporate campaign strategies
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Improved awareness through more effective use of
Internet and web pages
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Expanded use of celebrities
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New Organizing Tactics
Blitz Campaigns
Women organizers
Student organizers
Church support
Religious overtones
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Percentage of Unionized Labor
Force
Union Membership as a Percentage of
the U.S. Civilian Workforce
40%
35%
30%
25%
20%
15%
10%
5%
0%
36%
32.50%
30.10%
22.00%
22%
16.10%
13.50%
12.00%
1945 1950 1960 1970 1980 1990 2000 2006
Year
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Union Membership by Industry
Government
36.20%
Utilities
28.20%
Transportation
22.00%
Industry
Construction
17.60%
Educational Services
13.50%
Communications
13.00%
Manufacturing
11.70%
Mining
10.90%
Wholesale/Retail Trade
5.00%
Agriculture
2.30%
Financial, Insuranace
1.40%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Union Members as Percentage of Total Workers in Industry
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Why Companies Oppose Unions
According to Economists Richard K. Vedder and Lowell E. Galloway
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Economic cost of unions from 1947-2000 exceeds
$50 trillion of lost income and output
States with a 10% unionized workforce can
expect 0.7% increase in unemployment rate
Average UAW worker earns over $81.00 per hour
in salary/ benefits with retiree health care. In
2000 economists predicted plan would begin
bankruptcy auto industry by 2009.
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Why Companies Oppose Unions
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Disruptions caused by strikes
Labor contract provisions may put employer in a
uncompetitive situation
Unions often create divisiveness between
employer and its employees – “us versus them”
Employer loses the right to deal with employees
individually
Increased expense and difficulty in administering
work rules, etc.
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Companies Disadvantages of
Unionization
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Negative effect on Quality and Service
Lack of managerial flexibility
Management time wasted
Divided loyalty between company and union
employees
Higher operating cost
Dealing with job actions
Strikes
Sick outs
Slow downs
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Companies Disadvantages of
Unionization
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Unions have employees file numerous and
erroneous charges
OSHA
EEO/State Human Rights Commission
Department of Labor
State Insurance Health Agencies
Increase in Workers Compensation claims
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Company Labor Relations Strategy
….Company Statement re: Unions
We want to maintain a positive ongoing
relationship among all our employees.
We will respect our employees and maintain
candid and honest communications concerning
the business and the impact to our employees.
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Implementing An Effective Union Avoidance
Strategy

Example of company policy on unions:

The reason our employees haven’t wanted a union is simple. Over
the past years we have consistently provided steady employment,
safe working conditions, fair treatment and promotional
opportunities as well as wages and benefits which are competitive
in our industry and we are committed to maintaining these high
employment standards for the future.
In addition, every employee is treated as an individual and
respected as an important member of our team. This means you
can speak directly with your supervisor or any other member of
the management team and we can work directly with you without
interference from a union. We want you to share your ideas and
concerns with us because we believe that our growth is a direct
product of our team efforts and contributions. A union can add
nothing to our team nor can they get anything more than the
company is willing to provide. We believe unions create artificial
walls that hamper your individual success and the team success of
this facility. We firmly believe that union is not necessary!
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Why Employees Organize
Favoritism
 Lack of Appreciation
 Concerns about Job Security
 Lack of Communication
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 Not
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feeling “in on things”
Money is usually not a primary motivator
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Why Employees Organize
Compensation
• Non-competitive pay
Working Environment
• Inadequate staffing
• Inadequate benefits
• Inequitable pay raises
• Mandatory overtime
• Poor working conditions
DESIRABILITY OF
UNIONIZATION
Management Style
Employee Treatment
•Arbitrary management
decision making
•Use of fear and intimidation
•Lack of recognition
•Job insecurity
•Unfair discipline and policies
•Lack of response to complaints
•Harassment & abusive treatment
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Maintain a Pro-Employee Environment
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EVERYONE:
L.O.Y.A.L.
L = Listens
O = Observes
Y = Doesn’t Yell
A = Advocates
L = Learns
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Front-line leaders role in
preventative labor
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The key to maintaining a union free status
is being a dedicated and positive leader
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It cannot be repeated enough that in the
eyes of the employee, the supervisor/
manager is the employer.
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Traits of a good leader
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Accurate
 Accurate
when explaining policy, procedures
and providing feedback.
 One wrong word or forgotten sentence can
change the entire meaning of what was said.
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Knowledgeable
 Understanding
policies and procedures before
trying to interpret them for employees.
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Traits of a good leader cont…

Clear
 Uses
words and terms that are sure to be
understood by employees.
 Impartial, does not take sides

Ask questions
 Get
employees to ask questions
 Doesn’t take it for granted that everyone
understands the point simply because no one
asks any questions or everyone says they
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understand
Traits of a good leader cont…
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Careful
 Conscious
of their facial expressions,
gestures, posture and tone of voice
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Rewards initiative
 Gives
credit where credit is due
 If you take credit for an employee’s idea or
suggestion, you can be sure that employee
will never suggest anything again
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Traits of a good leader cont…
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Acts with integrity
 24-7
 Once
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lost/may not return
Most important executive trait
 Fortune
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article
Guard it
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Communication is critical
A good leader has learned to
listen…
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Best Ways to Remain Union Free
Make the Union Unnecessary
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Maintain consistency
Share timely and factual updates
 Formally
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and Informally
Be proactive
Know and uniformly apply rules
 Weigh
cost/benefit and be able to justify any deviation
from rule
 Beware of the application of rules not previously
applied in practice
 Review disciplinary actions
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Best Ways to Remain Union Free
Make the Union Unnecessary
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Avoid employee perceptions of unfairness or
favoritism
Show greater appreciation for employees
is critical – give praise along with
suggestions for improvement when needed
 Feedback
36
Best Ways to Remain Union Free
Make the Union Unnecessary

Show employees they do not need a third party
coming into the facility to ensure fair treatment
and consideration
 As
long as employees are treated fairly, there is no
need for a union
 Without a union, problems can be resolved
individually and there is more personal contact
between employees and management
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Recognizing Unexplained Change

Before a Company can react to the attempted
unionization of its employees, it must be aware
of it’s existence
The Key: BE AWARE

Communicate “change” timely and accurately
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Typical Unionization Process
Organizing Campaign
Authorization Cards
Representation Election
Certification
Contract Negotiation
(Collective Bargaining)
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ORGANIZING
CAMPAIGN
Recognizing Early Warning Signs
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Good performers begin slipping
Argumentative questions in front of employee
groups and supervisors
Group complaints and petitions start to appear
A “new” leader starts to appear
Employees appear to be divided into two groups
Increase in employee turnover
An increase in union terms such as:
Seniority

Grievance
Bumping
Security
More questions regarding wage administration,
benefits and policies
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Recognizing Early Warning Signs
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Unwanted postings
Articles on unions
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Strangers begin appearing in parking lots, entrances
Union literature begins to appear
Applicants who are over qualified
Employees stop talking to supervisors
Supervisors “grapevine” goes dead
More group discussions/Employees get quiet when a
member of management comes up
Employees start questioning supervisory authority
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Recognizing Early Warning Signs
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More time spent in break rooms, restrooms and
parking lot
More and more employees at local “watering holes”
Former employees begin showing up at the facility
or hanging out
Employees normally not seen together forming
groups
Nature and frequency of employee complaints
Anti-company graffiti
Any other event out of the ordinary
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REMEMBER,
EARLY SIGNS ARE
USUALLY THE TIP
OF THE ICEBERG
44
New Organizing Approaches
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Blitz campaigns
Large amount of organizers
Weekend organizing
100% home visits from Friday – Monday
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Specific union not identified
No cards at work
No visible organizing during initial card signing
70% cards signed prior to petition
Utilize churches
Personal attacks on management
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Importance of Front-line Supervisors
and Local Management
The front-line supervisor is the most
important factor influencing employee
decisions in any attempt by a union to
organize employees
 The front-line supervisor has the most
daily contact with employees

46
Importance of Front-line Supervisors
and Local Management
The front-line supervisor has the best
opportunity to communicate
management’s point of view – “eyeball-toeyeball”
 The front-line supervisor represents the
“eyes and ears” of management
 Simply put…to the Employee, the frontline supervisor is the “Company”

47
Importance of Communicating with
Employees
Role of Supervisor

Communication is key: supervisors must give
employees the opportunity to ask questions and
create an atmosphere in which they are not
afraid to ask questions
 Participate


in two-way communications
Supervisors must listen to employees and inform
management about any inkling of union activity
Recognize there are problems in every group of
employees
48
Importance of Communicating with
Employees
Role of Supervisor
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Bring problems to the attention of top management for
resolution
Solve problems either by explaining the policy or taking
steps to correct the situation
Seek to learn what the employees think of the company
Sell company benefits
Know employee’s background and relationships
Discipline consistently
Avoid favoritisms in scheduling, assignments, overtime,
etc.
Supervise people – not a file
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What Supervisors Can Do and Say
TAKE ACTION
 Silence is not golden
 Silence

implies support/lack of opposition
Supervisors have the right to speak out
about unions.
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“What can I share (Do)???”
F.O.R.E.
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FACTS

Communicate facts and correct any false or
inaccurate statements made by the union
 Example:
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Cost of union dues and assessments
Strike replacements
Discuss the unions false promise
Don’t guess at answers to a question
52
OPINIONS

Supervisors should express their opinions about
the union
 However,
they should not threaten, nor promise
employees any benefits.

Supervisors can and must tell employees why a
union is unnecessary at the company.
“…In my opinion, unions are out to protect their own
interest before the interest of the employees.”
…”and here are some examples”
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RULES
Establish clear lines and limits of tolerance
 Clearly communicate work rules to
employees
 Administer discipline uniformly and avoid
making “exceptions” for anyone
 Follow the employee handbook and insure
it is being followed by your employees

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EXPERIENCES
Share your experiences, co-workers, and
others personal experiences regarding
unions.
 Give personal and real work examples to
employees about the many disadvantages
of a union.

55
What Supervisors Cannot Do and
Say
For supervisors and managers, these “don’ts” are
largely common sense rules and can be
remembered by the acronym…
S.P.I.T.
Don’t make any statement if there is any doubt in
your mind as to their correctness or
interpretation.
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SPY

Supervisors cannot:
 Ask
employees if they have signed cards or
attended meetings
 Give the impression that they are observing
the employees union activity

Don’t take notes if you see employees meeting in
groups
 Tell
employees that co-workers are informing
you about union activity
“I heard you said a lot at the Union meeting last night.”
57
PROMISE

Supervisors cannot:
 Promise
increased wages, promotions, or benefits to
obtain support for the employer
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Do not speculate over what ‘could’ happen or
‘what you think was meant’ by something sent
out by the company
Do not negotiate with employees
“If you vote against the union, I’ll see to it that you
get a promotion.”
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INTERROGATE

Supervisors cannot:
 Ask
employees what they think about the union
 Ask employees if they have signed a union
authorization card
 Ask employees how they intend to vote
 Call employees individually or in small groups into
offices or private areas to talk about the union
“Who is going to the Union meeting tonight?”
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THREATEN

Supervisors cannot:
 Threaten
loss of job or reduction of income or
benefits if union wins
 Say there will be a strike if the union wins
 Threaten that the operation will be moved or
shut down if the union wins
“I’ll see to it that you’ll never get another promotion
or wage increase.”
60
Union Authorization
Cards
Union Authorization Cards
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May file petition for election with 30% signed cards
May demand recognition with more than 50%
With more than 50% cards signed and an Unfair
Labor Practice, company may be forced to bargain in
good faith without election
With more than 50% cards signed and union loses
election if company has committed Unfair Labor
Practice, the company may be forced to bargain in
good faith
62
Representation
Election
Representation Election
NLRB orders within 42 days of petition
 Agreement of eligible voting employees
 Secret ballot
 Monitored by NLRB representative
 Simple majority wins
 Election certification

64
Most Important Aspect of Contract
Negotiation

The need for a Management’s Rights Clause
Termination
Layoffs
Hiring practices
Transfers
Suspensions
Discipline
Size of workforce
Work schedule
Safety rules
65
Overview of HR Labor Audit
(Full Audit with Book)
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On-going training of managers/supervisors
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Unions will have

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

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No longer wait until signs of activity
Your company information
Wage data
Employee’s home address
Manager’s names
Card signing has already began
Section on why companies oppose unions
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
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Employer impact
Front-line supervisor impact
Sample company policy on unions
66
Overview of HR Labor Audit

Overview of National Labor Relations Act
(NLRA)
 Relevant
NLRB procedures with elections
Filing election petition
 Processing petition

Voting eligibility
 Election day
 Certification

67
Union Authorization Cards
30% required for election
 Assume they have 70%
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68
Overview of Management’s
Response to Activity
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Identify internal organizers
Identify external organizers
Identify problem department/shifts
Develop employee profile=1, 2 or 3 (red light,
yellow light, green light)
Identify union/local/city
Identify issues
Identify supervisor training needs
Contact legal support team
69

Handling demand for recognition prompt and
unconditional rejection
 Review
legal issues

Best ways to remain union free
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Common early warning signs
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Supervisor’s Do’s/Don’ts
S
P
I
T
70

Avenues of company communication
 Small
groups
 Handouts
 Videos
 Posters
 One-on-one conversations
71

Management response to union
propaganda
 Dues
 Strikes
 Negotiations
 Current
wage/benefit status
 Company philosophy
 Union fines/assessments
72

Audit discipline procedures
73
The only way to
guarantee a company
victory in a union
election is
NOT TO HAVE AN
ELECTION
THANK YOU