The 3 worst mistakes if a union knocks on your door
January 15, 2010 by Jim GiulianoPosted in: Employment law, Special Report, policies
A recent court case shows the worst blunders a company can make when a union tries to organize workers.
The case involved a Wisconsin firm that was confronted with a labor union’s efforts to get workers to join. Management at the company reacted by taking three stern steps:
- Requiring that employees get approval from the company before posting any union material on company bulletin boards.
- Telling union advocates they violated company policy in distributing pro-union flyers in the company parking lot.
- Telling union advocates that passing out union buttons in the workplace and leaving buttons near a time clock violated company policy.
Further, the company discouraged employees from talking about the union during working hours, and told shift leaders they were classified as “supervisors” and so were prohibited from participating in union activities.
The NLRB found that the company violated the National Labor Relation Act, and a court affirmed the finding.
What should have been done
So, where did the company go wrong?
Bulletin boards. Courts have ruled that employees don’t have open access to employer bulletin boards. Why, then, couldn’t the company stop employees from posting union messages on the boards? The short answer is that the company had no bulletin-board policy, but all of a sudden instituted one when employees tried to post union material. That, the court said, was clear evidence that union-organizing was being singled out.
Distribution of union material. Again, courts recognize that employers have property rights and the right to limit distribution of material during working hours and in the workplace. However, the court ruled that the company crossed a legal line when it banned such activities as placing flyers on employees’ vehicles in the company parking lot. The bottom line is that employers have strong rights in the workplace and during duty hours. Those rights weaken when the employee leaves the building and is no longer on duty — even if the activity takes place in a company-owned parking lot. The company ban on leaving union buttons near time clocks similarly was ruled illegal, since it didn’t interfere with work and wasn’t a work-time activity. Note: The court saw through the company’s attempt to characterize the ban as an “anti-clutter” policy.
Reclassifying “supervisors.” The shift leaders, who were reclassified as supervisors and barred from union activity, did not have the authority to transfer or direct employees or to recommend rewards. The court ruled that the sudden reclassification of the shift leaders — without substantially changing their duties and responsibilities — was a clearly illegal attempt to stifle pro-union activity.
Cite: Loparex LLC v. NLRB.
Tags: Loparex LLC v. NLRB, NLRB, union
January 15th, 2010 at 12:25 pm
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January 18th, 2010 at 1:39 pm
My company had extensive training on this because so many companies make the above mistakes and some even go as far as terminating employees in retaliation for union activities.
January 18th, 2010 at 2:25 pm
If only employers would realize that offering decent wages and benefits, and treating their employees like human beings — basically exhibiting kindness and common sense — would help keep unions at bay…
January 18th, 2010 at 2:27 pm
I have never been exposed to Unions. That said, I have only heard negative things about them. Can someone fill me in on the positives. Why would anyone want to pay part of their paycheck to a Union? What do they get out of it?
January 18th, 2010 at 2:44 pm
RandiG: Amen to that! That’s the “Golden Key”!
JAGGER: I am not sure what benefits a union has besides the ones for the people who run them. Back in the day, I am sure we needed them for fair wages, work conditions, discrimination, wrongful termination etc. These days, employees are protected by laws that would virtually eliminate the need for unions. I believe unions are losing their footing which is why they are so anxious for this bill to pass in their favor. Then, they will be able to see who voted for what and strong arm the people that vote against them. Unions promise things that they can’t deliver and they prey on bitter, weakminded employees who have a sense of entitlement and still wouldn’t be satisfied even with what the union does deliver.
January 18th, 2010 at 2:50 pm
At one time unions were a necesary evil. Since the implementation of OSHA, NLRB, EEOC, MSHA, all 4 letter aconyms, their main purpose seems to be to cause as much hate and discontent as possible while subsidizing political agendas. We had a union drive a while back. An employee got fired for insubordination. The next pay day he was passing out union flyers at the end of the driveway, (Our security gaurds at the gate wouldn’t let him in as a terminated employee). The flyers advertised an “organizational meeting” at a local bar complete with free food and drinks. The owner is a cousin of one of our managers. Cost the union over $4000 in catering etc. Total number of employees that showed up???? 0. We haven’t had an issue since. Last drive before that got some union goons arrested and jailed for multiple years for intimidating our OTR drivers and the vote thrown out. Workers are getting smarter.
January 18th, 2010 at 3:09 pm
My boyfriend is pushing for the union because of the company he works for stopped pay increases and pretty much cut everything positive out so that the supervisors will hit yearly numbers. I dont know much about the union and am reading more to understand it. My boyfriend on the other hand loves the union and says everything will be so much better if the employees become part of the union. He says he has worked there 4 years and 4 years ago he was making much more money and the other guys as well. He also mentioned he could understand if he was doing a bad job or doing something wrong but there equipment is starting to not even be replaced by the supervisors. Not to mention the supervisors are family. This is a huge cooporation example. Nationwide and larger. Do you think Union will be better? I just dont understand why majority of the people I hear from are so against the union and others are for it.
January 18th, 2010 at 3:11 pm
To respond to Jagger’s question, some advantages of belonging to a union are:
1. In the event of a layoff, employees are selected by seniority. Politics and favoritism are excluded using this method.
2. Open jobs are awarded by the same method, again eliminating favoritism.
3. There is a contract, which establishes workplace rules. If either side breaks a rule, they will be held accountable. Rules can’t be changed unless both parties agree.
4. Wages and benefits are defined for the life of the contract. The company can’t unilaterally change those promises.
5. Union employees generally earn higher wages and have better benefits than their non-union counterparts.
6. If an employee has a complaint, there is an established process to resolve that complaint. That process includes arbitration if the problem cannot be resolved between the company and union.
7. If a pension is bargained into the contract, the company cannot unilaterally change or eliminate it for the life of the contract.
I have worked with unions for over 30 years and have found that most companies have been organized because they either didn’t treat their employees fairly or their employees had that perception.
January 18th, 2010 at 3:20 pm
Jagger: We as business owners have the right to treat our employees with respect and honor. I’m in a very tuff industry and I know that my employees are the one’s who are making my life easier. I don’t need unions promising falls hope. At one point my company was union and the employees turned on them becuase the only time they would show up was when it was time to review the contract. I personally see no value of unions; unions are and always benefit more then the employee. If you don’t believe me look up UNION RETIREMENT FUNDS.
January 18th, 2010 at 3:22 pm
I have worked in management for over 30 years in both union and non-union shops. The ONLY positive I was ever able to see with being union is that it protected the jobs of those undeserving and sub-standard employees. If you are a low class employee, join the union. You’ll keep your job forever!
January 18th, 2010 at 3:57 pm
in response to # Guy Says:
January 18th, 2010 at 3:11 pm
To respond to Jagger’s question, some advantages of belonging to a union are:
1. In the event of a layoff, employees are selected by seniority. Politics and favoritism are excluded using this method. (what if the most qualified has the least seniority – do you want subpar workers doing the job?)
2. Open jobs are awarded by the same method, again eliminating favoritism. (shouldn’t that most qualified get the job?)
3. There is a contract, which establishes workplace rules. If either side breaks a rule, they will be held accountable. Rules can’t be changed unless both parties agree. (most employers have employee handbooks.)
4. Wages and benefits are defined for the life of the contract. The company can’t unilaterally change those promises. (but are the benefits really better?)
5. Union employees generally earn higher wages and have better benefits than their non-union counterparts. (have you checked out the underfunded liability for union pensions – who’s making up that shortfall.)
6. If an employee has a complaint, there is an established process to resolve that complaint. That process includes arbitration if the problem cannot be resolved between the company and union.
7. If a pension is bargained into the contract, the company cannot unilaterally change or eliminate it for the life of the contract. (most nonunion workplaces have a retirement plan in which the money in it belongs to the employee – even if he quits or is fired.)
January 18th, 2010 at 4:09 pm
Unions appeal to those who “will not” perform their duties and responsibilities – I did not say “cannot” perform their duties etc…. I would work with those folks until they could.
Seems to be the entity for those whom defiance is their MO in life. I have personally found that those who are bitter, angry people subscribe to the need for this type of representation. The union relies on purley darwinian approach to leadership – with those who are the nastiest, and physically toughest rise to the top.
Safety protects people, Value (Excellent Quality+Price) protects jobs.
January 18th, 2010 at 4:18 pm
The only people that belong to Unions are complete idiots that can’t think of anything themselves. For the girl who’s boyfriend loves the Union…how long do you think it will be before his company outsources to China rather than dealing with the Unions. Unions are a way of stifling competition in the labor market just like a monoply is. Unions raise prices for consumers. The reason why Almost all American car companies will be out of business in the next 10 years (even with government help) is because the companies can’t compete with superior products at a better price. Heck, superior products at a higher price. I would rather have a toyota than a ford, gm, chevy anyday. When does a manual labor job justify getting $100k plus benefits a year to put on brakes. I have worked at 6 companies over my life time. Being in a union was nice, until companies realized that they could ship jobs overseas. The last two companies I worked for became unionize….guess what happened, no job in this country in 3 years. They got 9 workers for what they were paying me and those guys work 14 hour days. You can’t compete with that. The bottom line is America has become fat and lazy with serious entitlement issues. What happened to Americans working hard and then working harder in tough times? If it continues like this, there are 3 billion people willing to fight and work for our jobs….what are you willing to do? Unions won’t help and current employment laws protect workers better than unions anyways. If America continues to Unionize, companies won’t hire here and our recession will continue longer. Just look at our unemployment now and look at the cities with heavily Unionized labor forces. The is no coincidence that unemployment is highest there and economic growth is lowest. See Detroit, Syracuse, Albany. Hiring and firing people based on seniority is the stupidest thing ever, what happened to hiring the best person for the job. The smartest, brightest, hardest working? As far as pensions, another joke on the tax payers……save your money and put it into 401ks, IRAs, and private accounts. Social Security will fail and so will your pensions.
January 18th, 2010 at 4:21 pm
Here is my two cents worth. Unions drive up the cost of goods for example GM has to add up to $1500.00 to the cost of each car sold to cover the cost of the unions requirement for health insurance. GM pays the full premiums for 1.1 million employees, retirees and dependents. (retirees out number current employees 2 to 1) This story was posted in USA Today back in June of 2005, before they filed bancruptcy. This just to show you how these unions will cost these companys 10’s or 100’s of millions of dollars in addition to costing the consumer more at the retail level.
Another problem with the union if the union decides for a work stoppage or walk out then everyone stops work and no one gets any money. How many americans can afford to miss paychecks for a couple of weeks or more.
January 18th, 2010 at 4:25 pm
As stated earlier, at a point in our country’s history, unions were needed due to so much mistreatment of workers by employers. The Federal government has stepped in with so many employment laws that it is very difficult to terminate an employee. Employers who treat their employees with respect and honesty will not have to worry about a union gaining a foothold. My experience with unions is that they are in it for the money; whether it be from dues or the 6-figure salaries that can be earned as a union officer. If you take away common sense, you have a union officer or steward. It is sorrowful that employees think that a union will solve their problems when, in reality, they create more. Once you’ve joined that union, try to get out and see how your fellow “union brothers” treat you.
January 18th, 2010 at 4:29 pm
I’m not taking sides, however, if you look at GM as an example the white collar workers have lost benefits, pay, etc. and the union workers have been able to keep a much better hold on benefits, pay, etc. because the Union has negotiated for them. I am non-union my husband is union. We have this debate often. I don’t think either of us wins.
January 18th, 2010 at 4:37 pm
As most of you have said, there is no need for a union IF the company treats its workers with dignity & respect. My husband’s company, unfortunately, is not one of these. My husband was a site supervisor for a security company. Because he would treat his workers with respect and he was respected more than the management of the company, his manager demoted him, moved him to a site that was further away from home, and is now giving him hours on different shifts during the same week or cutting his hours to 1 day a week – saying that they have no work for him (however part-time employees are being given his hours). When I called the Dept. of Labor I was told that since he is an at-will employee his boss can demote him, reduce his pay, reduce his hours, and do anything he wants to him with no reason at all – and there is nothing hy husband can do about it. When he tries to speak to the owner of the company he just tells him to speak to his manager. His manager is the person he is having problems with. I wish there was a security officers union that could come into that company…I believe ALL the guards would join it simply to get protection from managers like this. THAT IS WHY THERE ARE UNIONS.
January 18th, 2010 at 4:41 pm
CC, the major problem is that union workers are far more likely to lose their jobs to outsourcing or the company going under. The unions have come close to destroying the U.S. auto industry, and it may still happen. People want to “buy American” (not just cars), but who can afford American products when union demands have driven costs out of the range of most non-union workers. Unions have outlived their usefulness in the U.S. and are now a liability.
January 18th, 2010 at 5:08 pm
It’s not a popular statement and is also probably politcally incorrect but yes, unions have brought the demise of the auto industry and for that matter several other industries. When you are paid an exhorbitant wage, with exhorbitant benefits, and are shocked that your job has been outsourced to a foreign country, then you need to wake up. Yes, GM caused most of their own problem by promising big things to their unions when they were making money hand over fist, and yes, their executives were paid huge bonuses and stock options. That was then and this is now. On a daily basis I deal with union employees who feel that they are “entitled” to great wages, excellant benefits, and complain about their job when they’ve been with the company for 10+ years. If it’s so bad and the company is “screwing” you so bad, then go somewhere where you won’t get “screwed.” Why work where you’re unhappy. I sometimes think that the union mentality is to see how far into a hole they can take the employer and some employers never recover; hence plant closures, bankruptcies, and just closing the doors. The white collar workers generally do “float” the bargaining unit employees by paying higher premiums for their benefits and by smaller annual salary increases (if any).
January 18th, 2010 at 5:31 pm
All the answers here is more or less what I had thought they would be. That is why Union membership has slipped to (I think the average was) 8% in 2008. Always being a small business owner (really small – less than 50 emp) the owner has always been the boss…..no supervisors with any power…..no Unions. We alway make sure we pay our employees at least a few cents more than average Union wages, give them benefits (Health Insur, Dental, small life policy) and treat them as equals and a necessary and valued part of the Company. That said, this past 2 years, no raises have been given because the Company is scratching by to stay solvent until things get better. Our employees understand, knowing there is no place else to go anyway keeps them here and our little Company afloat. If we had to pay more now, because of an Union Agreement we might have made when we were more profitable, we would have to close our doors, and no one would have a job.
January 18th, 2010 at 6:02 pm
Hmm, so Toyota cars are cheaper then GM? Let’s be honest even if GM cut wages in half and gutted the benefits do you think you would pay less for your next car. I also think Unions are proof that you can buy loyalty if you have talked with any long-term UAW’s. Having over 30 years of insider info. it really is management that drove GM into the whole. The employees tried to put out good products but the managers refused to stop lines, pull bad products etc. until GM finally had made a bad name for itself with bad quality cars. Talk to GM workers and other Union workers don’t read media, etc. if you want real facts. Agree Unions have mostly served there purpose and are on their way out. Agree that employers doing the right think by their employees is the best prevention of Unions.
January 18th, 2010 at 6:10 pm
cc — I’ll grant that upper management is also to blame for the U.S. automakers’ woes. not just the unions. Greed is always a factor on both sides.
January 19th, 2010 at 10:12 am
The only time I worked in an organization with a union was right out of high school (many moons ago). I was a secretary at a hospital and one of the unions went on strike. I had to enter through a side entrance of the hospital because they were blocking the main entrance and threatening people as they entered.
I currently work for a non-profit agency. We receive payment for the services we provide from several other agencies, school districts, and the state. Over the years, when something happened that a few people didn’t like, there was talk about forming a union. Other employees pointed out to the following: A union wouldn’t be able to get them higher wages because we had contracts with our funding sources and, even when those contracts were up for renewal, it wasn’t assured that the agency would be able to obtain an increase. The agency couldn’t afford to pay any additional money towards benefits. They would still have to come to work on time and put in a full day’s work. They’d have to pay union dues. Interestingly, they decided not to try to form a union.
January 19th, 2010 at 10:17 am
All very good responses! I have learned a lot just reading everyone’s take on Unions pro and con.
January 20th, 2010 at 10:55 am
I agree with Guy’s statement earlier “most companies have been organized because they either didn’t treat their employees fairly or their employees had that perception.”
Personally, I was in a union when I was a deputy sheriff and it did absolutely NOTHING for me. I have seen friends in unions, who have had their grievances against the company bartered away for other union benefits, rather than being resolved. I don’t trust unions and do not relish having a “second boss.” However, when executives and other management are totally unresponsive to workers and do not treat workers fairly, then I am all for sicking the union beast on them. It probably won’t be effective in getting the company to treat employees fairly, it probably will cost the company lots of money and may possibly bankrupt the company, but at least the executives will be unemployed, as well. By the way, I have noticed a lot of unemployed executives lately.
January 20th, 2010 at 11:57 am
I was talking to my Dad about unions and I forgot that he was in a Union all his work life so he thinks EVERY company needs them. I asked him what they had ever done for him and he couldn’t think of a thing besides job protection and fair wages. My Dad was a MODEL employee, made a good living, had a great boss and working environment, worked from 5AM to 4PM for 30 years, Retired with 300+ Sick Days, a great retirement package (these don’t even exist anymore), retired at 56 years of age and probably paid the union a bunch of uncessary $$. He says he remembers vaguely that the union existed before he was employed and they said he had to join.
January 20th, 2010 at 12:04 pm
In response to Jagger’s question, and to give a more balanced response than Guy, here are some of the realities of belonging to a union:
1. In the event of a layoff, employees are selected by seniority. Politics, favoritism, loyalty, merit, ability and hard work are excluded using this method.
2. Open jobs are awarded by the seniority and in many cases nepotism. How may employers hire on the basis of “favoritism”??? Not too many, and unions do cut down on this. However, to get a union job, it very often comes down to “who you know” in the union.
3. There is a contract, which establishes workplace rules. If either side breaks a rule, they will be held accountable. Rules can’t be changed unless both parties agree.
4. Wages and benefits are defined for the life of the contract. The company can’t unilaterally change those promises.
5. Union employees generally earn higher wages and have better benefits than their non-union counterparts. They also drive some companies in bankruptcy and everyone loses their jobs – both management and union employees.
6. If an employee has a complaint, there is an established process to resolve that complaint. That process includes arbitration if the problem cannot be resolved between the company and union. Many non-union companies have a similar process.
7. If a pension is bargained into the contract, the company cannot unilaterally change or eliminate it for the life of the contract.
I have worked with unions for over 30 years and have found that most companies have been organized because they either didn’t treat their employees fairly or their employees had that perception. Agreed, however alot of companies also get unionized because of greed and union promises – by their most incompetant employees want to avoid getting fired.
January 29th, 2010 at 11:55 am
Unions are a mistake management makes. RandiG is absolutely right. If you treat employees fairly and create a positive work environment then employees don’t feel the need for Unions. Unions exist to make management the enemy so they can get employees to pay for protection. Once management fails and a Union gets in the door then they are stuck. I have worked with Unions and have found them to be a detriment to the workplace. Union shops are NEVER happy shops.
January 29th, 2010 at 1:41 pm
Most employees that are part of a union have a sense of entitlement. Some employees do the minimum amount of work for the maximum amount of pay. My first HR Job was HR Secretary at a Manufacturing facility for cookware. The office workers were NON union and the warehouse distributor and manufacturing employees were union. The employees in the office had to walk on egg shells around the union employees because they would look for any little thing to complain about. I thought the one good thing the Union did for these employees was to give their kids college scholarships but when you look at the big picture, it not a scholarship because the employees have to pay dues so they pretty much were using their own money anyway.
February 1st, 2010 at 12:51 pm
My husband has worked for both union and non-union coal mines. He hates unions. He’s worked every job underground that he could so he would have a better view of how to handle things as part of the salaried management team that he’s now on.
While working for a union-mine, he noticed something that needed to be done and went to do it, only to be told NOT to because he was taking someone else’s job. The other employees warned him to be careful about stuff like that, especially around the union guys, as they wouldn’t like it.
He feels that unions are like leeches that suck away productivity and initiative on the part of employees, while providing them very little in the way of benefits.
February 1st, 2010 at 2:57 pm
Jagger asked what are the advantages to being a member of a union. Previously, I mentioned union members often have better protection of their pensions. Workers at Delphi Corporation now have proof of that. Here is the link to the article in the Milwaukee Journal/Sentinel:
http://www.jsonline.com/business/83179737.html.
“…..thousands of Delphi salaried retires could see their monthly penison checks cut between 30% and 70%…….It’s especially upsetting given that the pensions of Delphi’s hourly wage retirees, represented by the United Auto Workers, will not be reduced. That’s because when General Motors spun off Delphi in 1999l, it agreed to ‘top up’ the hourly employees’ pensions if their plan ever fell short……..The 20,000 salaried retirees…..had no such agreement.” Many of these retirees did not retire volunatarily but were “forced into retirement by Delphi’s bankruptcy.”
Advantage: Union
February 1st, 2010 at 3:14 pm
Hey Guy, Another question. If the Company goes bankrupt, who pays the pensions? The Union?
February 1st, 2010 at 5:49 pm
From both a professional and personal point of view, I believe unions have long outlived their usefulness.
I’m a non-union manager in a union shop. It has become nearly impossible to fire non-productive, irresponsible employees.
Time and time again, we write up discipline actions. Feeling that we, as an employer can get rid of lazy, unsafe trouble makers… simply not true.
One example was an OTR truck driver of “ours” she abandoned her truck/load on the side of the freeway. IMO –this gal is a certifiable mental case. Not only did she just leave the truck and trailer in an unsafe position endangering the public—she left without telling us where we could locate our vehicle. Two weeks post termination, for a serious a violation clearly spelled out in our employee’s hand book; she filed a grievance against us with the union. When we wouldn’t back down, the union switched tactics and said she had been engaging in union activities, and that we had retaliated by termination. The union brought in the NLRB—more time, more attorneys’ and more money out the window.
The nut is still fighting us, 4 years later with the union’s blessing/backing only now, it has evolved into an workers comp. claim—for carpel tunnel
On a personal level- my brother in law has been a member of the Pipefitter’s for 30 years.
Their pension/health and welfare system is severely underfunded primarily due to embezzlement by union leadership. His retirement date was pushed out another 7 years to partially make up for the shortfall; they also cut surviving spouses’ benefits substantially. They and several other “brotherhoods/unions pensions” are under investigation by the DOL.
The money no longer exists –and the membership will take it in the shorts. In my opinion unions help no one except their own high-powered, corrupt representatives, and lazy entitled workers.
February 2nd, 2010 at 7:08 am
Jagger,
By law, pension funds are kept separate from other funds, earmarked for payment of pensions when due. If the company goes bankrupt, the pension fund remains for the payment of the pensions that are owed to workers. If the pension is underfunded, whatever money is in the fund is turned over to the Pension Benefit Guaranty Company, an entity operated by the government to manage what funds are available and distribute them to those who qualify. That is what happened to the salaried workers at Delphi – the pension fund was underfunded so when Delphi declared bankruptcy, there wasn’t enough money to pay what was promised to those workers. The union workers’ fund had been “topped up” by the company, so there was enought money to pay the pensions as promised.
The advantage to being a member of the union in this case is obvious.