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After reading chapter 14, you should be able to: Define unions and labor relations and their role in organizations; identify the labor relations goals of management, labor unions, and society; summarize laws and regulations that affect labor relations; describe the union organizing process; explain how management and unions negotiate contracts. | Chapter 14 Understanding Labor Relations and Collective Bargaining 1 A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining Only 12% of the private sector workforce is unionized Labor contracts typically stipulate: Wages Hours Terms and conditions of employment Introduction 2 Fundamentals of Human Resource Management 11e Union membership by industry Fundamentals of Human Resource Management 11e 3 Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals Greater job security: Collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire Influence over work rules: Unions represent workers and define channels for complaints and concerns Why Employees Join Unions 4 Fundamentals of Human Resource Management 11e Watch Solidarity Forever sung by Pete Seeger http://www.youtube.com/watch?v=9g1IArAW5Dk for a feel of what unions meant to people at the turn of the 20th century, when labor laws were almost nonexistent. Compulsory Membership Union shops Require that all employees hired into positions covered under the collective-bargaining agreement must join the union agency shops require nonunion employees to pay an amount equal to union fees and dues Right to work laws Prohibit union membership as a condition of employment Open shops Allow union membership to be totally voluntary Maintenance of membership clauses Require union members to remain for the duration of the contract dues check-off provisions require employers to withhold union dues from members’ paychecks Why Employees Join Unions 5 Fundamentals of Human Resource Management 11e Right to work laws 6 Fundamentals of Human Resource Management 11e The Wagner Act Also known as the national labor relations act “Bill of rights” for unions, guaranteeing right to organize and bargain collectively national labor | Chapter 14 Understanding Labor Relations and Collective Bargaining 1 A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining Only 12% of the private sector workforce is unionized Labor contracts typically stipulate: Wages Hours Terms and conditions of employment Introduction 2 Fundamentals of Human Resource Management 11e Union membership by industry Fundamentals of Human Resource Management 11e 3 Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals Greater job security: Collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire Influence over work rules: Unions represent workers and define channels for complaints and concerns Why Employees Join Unions 4 Fundamentals of Human Resource Management 11e Watch Solidarity Forever sung by Pete Seeger .