Oliver J. Bell, Inc. Newsletter

Labor Relations Update

One-on-One with Oliver Bell

January 20, 2011

Vol. 1, Issue No. 2

Labor Relations Trends in 2011: Bell's Analysis

Thank you for the great feedback and response to our first Labor Relations Update. This newsletter is a great way for us to keep in touch with you and our other clients. Our goal is to help you stay up to date on what is promising to be a year full of changes in labor relations. How will you and your industry be impacted? Stay tuned!

This week's edition of the Oliver J. Bell, Inc. Labor Relations Update discusses predictions for labor relations trends in 2011. Also, many of you asked for further insight regarding the recent NLRB suggested Notice Posting change and other things we might expect from the NLRB in 2011.

If you would like to see a specific topic discussed in an upcoming newsletter, or have any questions please do not hesitate to call (512.249.6200) or email me at oliver@oliverbell.com.

Thanks,

Oliver

Unions To Increase Use of "Neutrality Agreements"

While unions continue to wait for modifications to organizing rules, expect them to approach employers in greater numbers seeking "Neutrality Agreements." Many in management are familiar with neutrality agreements. However, some of your peers in the operations leadership and human resource leadership world are not.

A "Neutrality Agreement" is a unilateral request from a labor union to an employer asking the employer to stand down and be neutral (say nothing) while the union attempts to organize your employees. The union does not stand down. It accelerates its organizing efforts in exchange for not disparaging the employer during the organizing campaign. A union will often ask the employer to sign a document agreeing to this action. The signed document can be a binding agreement enforceable in other jurisdictions.

No employer is required to agree to or sign a neutrality agreement. A neutrality agreement is the equivalent of forfeiting your 1^st amendment rights to free speech regarding organizing issues in the workplace. You have a right to discuss issues you feell will impact your business. If you want to sign away that right in a Neutrality Agreement, that is your perogative. If you do not want to sign such a document, that is also your right. Don't be buffaloed or deceived into signing a neutrality agreement that is not in your business' interest and your employees' interests.

Collective Bargaining Agreements: To Become More of a Balancing Act Than Ever

2011 will be an interesting year for those negotiating new Collective Bargaining Agreements (CBAs). Some unionized industries (auto makers, certain services) where union members have made concessions over the past few years... have now begun to show some early signs of recovery in a recession laden economy. While the recovery is not fully proved, employers should expect unions in those industries to ask for more. Employers should expect unions to ask for a return to the pre-recession status quo or certainly a move in that direction. If business indicators are moving in the right direction for the industries in question. Employers should consider positive changes (however slight) in pay and benefits and other terms and conditions of employment. These considerations should also be hedged by your interpretation of where the economy is now headed for your industry.

For those unionized employers that overestimated their economic success over the past few years or are still mired in recession, but maintained or even improved pay, benefits and terms and conditions for union members during this downturn - unions should expect those employers to ask for freezes at a minimum and potentially concessions. Each employer will have to handle such situations on a case by case basis, but in instances where CBAs signed three years ago anticipated '08, '09 & '10 to be the glory years for the employer and that did not happen... well both employers and unions are going to have a reality to check to make sure jobs, companies, and opportunities for work survive into the future.

Employer Trend: Relationship Building... Via Labor-Management Focus Groups

We directly observed the souring of relationships between some employers and employees during the recession. How can this be changed? In 2011, take advantage of the opportunity to create Employee-Management/Labor-Management focus groups.

In the union-free environment, the goal of such a meeting will be for management to gain insight into key employee issues and effect change that will positively impact the workplace. In a unionized environment, the focus groups will resemble noncontract grievance resolution to improve relationships. This will occur in the form of Labor-Management focus groups designed to determine historical issues that have been impediments to success and replacing them with positive ideas focused on future performance, work environment, and culture. The recommendations and action plans from such focus groups can be binding or nonbinding depending on the commitment and maturity of the participants.

Many "old school" labor relations professionals on both sides of the aisle (union and management) may initially discount this approach. However, we have proof positive that the approach works if the parties are willing to engage and at least listen... especially since the outcomes can be nonbinding if the parties elect that path. We encourage you to be a leader and experiment with this dynamic approach.

NLRB Trends: Bell's Situation Assessment

Two weeks ago, we mentioned the National Labor Relations Board (NLRB) Rule Proposal for posting of notices regarding organizing. Some in labor relations may view this as a good step... some may view as a negative. Regardless of your bias, this action foreshadows a trend we have talked about for several months. That trend will be the use of bureacratic rule making to circumvent legislation to "make it easier for unions to organize" in any workplace. Expect rule change proposals from the NLRB regarding not only notice posting but also:

Shorter election time frames (as short as 7 days),
Introduction of mediation for first contracts
Greater penalties (including financial penalties) for unfair labor practices.

In other words, expect an effort to implement the failed Employee Free Choice Act legislation via rule making. Proposals to make these changes will be on the table in full or in part not later than June 2011. Don't be suprised if changes in each of these areas are proposed in 30-60 day increments over the first half of 2011.

Labor Relations Trends for 2011 - In This Issue

Uptick in Neutrality Agreements

CBAs - A New Balancing Act

Labor-Management Focus Groups Can Change Your Culture

NLRB Trends: Regulation & The Back Door to EFCA

Employer Action

The most important thing you can do in the face of rapid change is stay ahead of the curve. One way to do this is to engage your workforce in labor-management focus groups.

Whether you are union or nonunion, we encourage you to partner with your employees or union leaders and align your business strategies. We have proof positive that this approach WORKS if the parties are willing to engage and at least listen. At the end of the day, aligning your business strategy with your labor relations strategy will help you successfully navigate impending changes.

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We work in all Human Resources disciplines to help you arrive at a solution to better your workplace.

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