Labor relations

Labor relations (hereinafter, the Relations) is the systematic study of attitudes, motivations, and behaviors which two or more job-market actors assume toward each another.

Definitions

According to Labor Relations and Collective Bargaining by Michael R. Carrell and Christina Heavrin (10th edition),

Labor relations. Any activity between management and unions or employees concerning the negotiation or implementation of a collective bargaining agreement.

Connotations

A few connotations are related to the Relations. Depending on the country of practice and context, the Relations is:

• A sub-field of labor history that studies the human relations with regard to work both in its broadest sense and how this connects to questions of social inequality in the international context.
• A sub-field of industrial relations in academia. The courses in the Relations usually cover labor history, labor law, collective bargaining, contract administration
• The study and practice of managing those employment situations which involve labor unions in the American context. National Labor Relations Act is a cornerstone for collective bargaining in the private sector of the United States. Civil Service Reform Act of 1978 largely regulates that in the public sector. Labor and Employment Relations Association is the leading association for scholars and practitioners of the Relations in the United States.

Glossary

• Across the board increase. A general raise in wages applied at one time to the pay tables of employees in a bargaining unit, also referred to as a “general wage increase.”
• Arbitration. A method of settling a labor-management disputes by having an impartial third party hold a formal hearing, take testimony, and render a final and binding decision.
• Bargaining unit. A group of employees that has certified as appropriate to be represented by a labor union for the purposes of collective bargaining. Some states in the United States require certification by a special body such as Public Employment Relations Commission (PERC) in the State of Washington.
• Collective bargaining. The process by which management and union representatives negotiate the employment conditions for a bargaining unit for a designated period of time. The parties have a mutual obligation to bargain in good faith in an effort to reach agreement with respect to wages, hours, and working conditions. This obligation does not compel either party to agree to a proposal or to make a concession. Commonly referred to as negotiation or “contract bargaining.”
• Collective bargaining agreement (CBA). The contract that embodies the results of the negotiations between the employer and the union, and sets forth their agreements.
• Community of interest. A group of factors, such as duties, skills, working conditions, reporting lines, and other job-related issues, to be considered in determining whether a group of employees should be grouped together as an appropriate bargaining unit.
• Concerted activity. Action taken by an employee or employees (generally on behalf of fellow workers) in order to improve working conditions or benefits. Bargaining law considers this type of activity protected from retaliation or reprisal.
• Counter-proposal. An offer made by one party in collective bargaining negotiations in response to a proposal by the other party.
• Decertification. A vote by members of a collective bargaining unit to dissociate from the labor union that represents them. Some states of the United States require that employee decertification petitions and proceedings are handled by a special body such as Public Employment Relations Commission (PERC) in the State of Washington.
• Union dues (membership fee). The basic fees that employees pay on a monthly basis to the union in order to obtain full rights of membership. The amount of dues is set by the union and may be a flat fee and/or a percentage of pay.
• Dues deduction. The withholding, by the employer, of union dues and fees from employees’ salary payments and the transmittal of these funds to the union. In the State of Washington, employees must provide written authorization in order for the dues and fees to be withheld from their paychecks.
• Duty of fair representation. The legal obligation for a union to fairly represent all employees in the bargaining unit without regard to factors such as union membership or membership in a protected class.
• Duty to bargain. The legally enforceable obligation of each party in a collective bargaining relationship to meet at reasonable times and places and negotiate in good faith with respect to wages, hours, and terms and conditions of employment.
• Federal mediation and conciliation services (FMCS). An independent, federal agency that provides mediation, conflict resolution, training, and arbitration services to the private sector and governmental agencies.
• Good faith bargaining. The legal requirement that two parties in a collective bargaining relationship meet and negotiate at reasonable times and places, with a willingness to reach an agreement on the terms of a collective bargaining agreement.
• Grievance. Generally, this is a formal complaint filed by the union alleging a violation, misapplication, or misinterpretation of one or more terms of the parties’ collective bargaining agreement. Collective bargaining agreements vary and may define this term differently.
• Illegal subjects of bargaining (prohibited subjects of bargaining). Topics that the parties are forbidden to bargain over. These include proposals for bargaining that would violate state or federal laws.
• Impasse. The point in collective bargaining negotiations at which either party determines that no further progress can be made toward reaching an agreement.
• Joint labor-management committee (joint labor-conference committee, joint labor-management, union-management, on conference committee depending on the union's traditions). A forum for communication between the union and management to deal with matters of general concern between the parties. Such committees typically function in an advisory capacity, and do not include any decision-making or collective bargaining authority.
• Just cause. Referenced in many collective bargaining agreements, a widely-used term that requires the employer to use good and sufficient reasons to discipline employees. There are generally accepted elements of just cause that an employer must prove to an arbitrator in order for a disciplinary action to be upheld.
• Management rights. The inherent rights of an employer to make decisions regarding its business.
• Mandatory subjects of bargaining. Bargaining issues that neither party may refuse to negotiate. They include wages, hours, and other terms and conditions of employment.
• Mediation. During negotiations, one or both parties may call in a mediator, who is a neutral third party. The mediator has no power to force a settlement, but works with the parties to help them arrive at a mutually acceptable agreement.
• Memorandum of understanding (MOU). A formal, signed agreement that serves as an addendum to the collective bargaining agreement. An MOU usually addresses a significant issue that emerged during the term of the agreement, and it represents the mutual understanding between the parties on that issue. An MOU can also be referred to as a memorandum of agreement (MOA), a letter of understanding (LOU), or a letter of agreement (LOA).
• Past practice. The history of the way parties have behaved toward one another in the past that bears upon the expectations the parties have regarding negotiations in the future. Such practices, sanctioned by use and acceptance, are not specifically included in the collective bargaining agreement. To constitute a past practice the issue must be: 1) clear to the parties; 2) consistent in its application over a period of time; and 3) condoned by the parties. Arbitrators use past practice to interpret ambiguous language in the collective bargaining agreement.
• Permissive subject of bargaining. Issues that are neither mandatory nor prohibited. Parties may agree to negotiate them, but neither party may insist upon its positions on a permissive topic to the point of impasse.
• Ratification. Formal approval of a newly-negotiated agreement by a vote of the employees in a bargaining unit. Eligible voters in a union ratification are determined by the union’s bylaws and constitution. For most Washington state employees, the ratified agreements are then subject to legislative approval of the economic terms.
• Representation fee. In an agency shop environment, employees who opt not to join the union as a full member must typically pay a fee to the union in lieu of member dues, which helps the union pay for its representational duties such as negotiating a collective bargaining agreement and representing employees in grievances and arbitrations. This is also referred to as a “fair share fee.”
• Shop steward (shop delegate, individuals steward, individuals delegate). A bargaining unit member selected by a group of fellow members and/or appointed by union officials to carry out union representational duties in the workplace. Shop stewards are typically employees of the same employer as the represented, unlike union representatives who are paid employees of the union.
• Strike. A temporary stoppage of work by a group of employees, not necessarily union members, to express a complaint, enforce a demand for changes in conditions of employment, obtain recognition, or resolve a dispute with management. The right to strike is not granted to employees of the State of Washington, for instance.
• Tentative agreement (TA). The agreement reached through bargaining prior to its ratification or final approval by the negotiators’ constituencies.
• Unfair labor practice (ULP). A violation of collective bargaining law by either party, which could include refusal to engage in collective bargaining or interfering with, restraining, or coercing employees in the exercise of their collective bargaining rights granted by statute.
• Union representative (union agent, labor advocate, union business agent). A union staff member responsible for carrying out union representational duties in the workplace. A union representative is typically a paid employee of the union, (unlike a shop steward, who is usually an employee of the same employer as the represented who is involved with the union).
• Union security provision. The part of the collective bargaining agreement that addresses union membership, which directly affects union dues and fees.

Related lectures

• Introduction to Labor Relations.