 |
Labor Relations Update
One-on-One with Oliver Bell
February 2, 2011 |
|
|
Oliver Bell, Inc. | Vol. 1, Issue No. 3 |
|
Labor Relations Trends in 2011, cont.: Bell's Analysis |
|
|
This week's edition of the Oliver Bell, Inc. Labor Relations Update continues to discuss predictions for Labor Relations trends in 2011. Articles include:
- Union Membership Trends in Decline
- Economic Trends Impact Union-free Employer & Union Employer Wage Adjustments & Negotiations
- Union Elections to Increase in 2011
- Change Management Success - Suggested Approaches
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.
Also take a look at our new website at www.oliverbell.com.
Thanks,
Oliver |
Union Membership Rates 2010 (Part 1) - A Downward Trend: General Information
Union Membership is still in decline. The Bureau of Labor Statistics recently released its 2010 union membership update. The union membership rate is defined as "the percent of wage and salary workers who were members of a union." For 2010, total union membership, public and private sector, was 11.9%. This is down from 12.3% in 2009. The number of wage and salary workers currently in unions is 14.7 million. This is a decrease of 612,000. Over half of all unionized workers, 7.6 million, currently work for a government entity. This is a new trend. BLS has recorded these statistics since the early '80s when union membership was over 20% of the workforce and there were 17.7 million union workers. Private sector union membership has routinely been higher than public sector membership, but apparently those days are gone.
Some of the trends for union membership include:
- Overall, there are 7.1 million union members in the private sector. This is 6.9% of private sector workforce or roughly 1 out of 14 employees. Clearly 13/14 employees are union-free. The private sector industries with the highest unionization rates included transportation and utilities (21.8%), telecommunications (15.8%), and construction (13.1%). The lowest rates were in agriculture and related industries (1.6%) and in financial activities (2.0%)
- In the public sector, there are 7.6 million members representing 36.2% of public sector workforce. Local government workers like teachers, police officers, and fire fighters, etc. had the highest union membership rate at 42.3%.
- By occupation, the highest membership rates were in education, training, and library occupations at 37.1% and protective service occupations at 34.1%. The lowest occupational rates were in sales and related occupations at 3.2% and farming, fishing, and forestry occupations 3.4%
- The highest union membership rates by state are New York (24.2%), Alaska (22.9 %), Hawaii (21.8%), Washington (19.4%), and California (17.5%).
- The lowest union membership rates by state are North Carolina (3.2%), Arkansas (4.0%), Georgia (4.0%), Louisiana (4.3%), and Mississippi (4.5%)
In the next issue, we will also include membership demographic trends. |
|
2011 Economic Trends - The Impact on Wage Adjustments and Negotiations
How will wage trends impact the bargaining table this year? 2009 and 2010 were tough years for hourly wage increases nationally but, at least there were increases. In 2009, the average increase was 1.4%. In 2010, the average increase was 2.0%. Salaries increased at 1.5% and 1.6% respectively. It is clear, the recession still has a grip on economic decision making and will impact how union and nonunion employers adjust wages this year. Unemployment continues at 9.4% and many believe it will continue above 9% for this year. The Department of Commerce reports the economy grew at 2.9% overall. That is almost enough growth to sustain flat unemployment rates. Many economists believe that growth rates at or above 5% for periods of a year or longer reduce unemployment rates by 1 point or more annually. We clearly are not there yet.
On Thursday, January 27th, I attended an economic forecast outlining emerging opportunities and new challenges that included Angelos Angelou of Angelou Economics and Greg Ip, US Economics Editor of the Economist, as featured speakers. Both men were very informative. Mr. Angelou's assessment was more positive than Mr. Ip's, but both men made compelling arguments for their position. My take away from the presentations is that we have not yet fully bottomed out and that when we do... the bottom will not be a single point but more of a trough, an extended bottom. Further, while the recovery may begin in late 2011, it will not be truly felt before mid 2012 at the earliest. Employment rates in some states, like Texas, will continue to improve, but the jobs coming into the market may not be as high paying as many that have left the market.
Unionized Employers
I would expect these circumstances to set the stage for potentially contentious negotiations in many industries. The way to avoid this conflict is to re-evaluate business models, communicate models to your labor counterparts in advance of negotiations, and seek common ground for the survival of both organizations that could mutually benefit employees. Failure for labor and management to meet halfway could have dire economic consequences. We could see an increase in strikes in 2011 and 2012 unless this is properly addressed. If a business fails, there will be no employees and no union. Union leaders must recognize this. Conversely company leaders should not use the situation to take advantage. Shared short term pain to reach a new plateau, where the company can experience renewed growth and employees can retain employment, is in the interest of all.
Union-Free Employers
For those of you looking at your 2011 wage adjustments, the key concepts are survival, fairness and long-term relationships. Your human capital is your most valuable asset... treat your people as well as the circumstances allow... and then do a little better. I encourage all to do what you feel is right and the best for your business situation. When you treat your employees right voluntarily... they are loyal to you voluntarily. They will deliver when times are tough. |
|
Union Elections 2011 - Elections will Increase...Will You Be Target?
The big question on everyone's mind is: Will representation elections increase or decrease in 2011? The answer without a doubt is YES! Union Elections will increase. The key question is by what mechanism?
In our last issue, we reported that everyone should expect an increase in requests for neutrality agreements. We stand by that prediction. A neutrality agreement can still have an election component. In these cases, the union has simply convinced the employer to play a second tier role and not seek victory. So, if neutrality agreements increase, elections will increase.
But further, we expect a large number of employers, especially auto part suppliers, healthcare providers, and retailers to decline neutrality agreements. When they do, the unions in question will file petitions with the National Labor Relations Board and a government supervised election will follow. So again... YES, elections will increase.
Employers must ask themselves if they are ready for a union campaign:
- Do you have a pre-petition checklist?
- Do you have an election checklist?
- Do you have a post campaign checklist?
- What would you do if a union showed up at your front gate or front door step tomorrow soliciting your employees?
We expect union organizing efforts to increase in several sectors including automotive, healthcare, retail, grocery, light and heavy manufacturing, and restaurants, to name but a few. All employers would be well served by an internal assessment of your work climate to determine if employees feel like they are being treated fairly. If employees feel like they are being treated fairly, your risk of unionization is lower. If your employees feel like they are getting the short end of the stick and are frustrated by certain conditions at work, the greater the frustration the more likely they are to look to an outside entity, like a union, for help.
|
|
Bell, Inc. Change Management Overview & Services Case Study
Many people talk about "change management" and doing it effectively. It would probably not shock you to learn that when our firm is called to assist with a labor relations situation (election, grievance resolution, climate assessment), it is often as a result of a couple of key issues. One issue is the relationship of leaders with employees. The other issue is typically change management.
Mismanaged change or at a poor outcome of change often leads to a "riled up" work force. Therefore our role in change management is often that of "change management fixer." In other words, some companies, who implement change unsuccessfully or at least the change appears to be unsuccessful, find themselves in situations where the result is negative. Now they must change this perception. Negative change management is especially hurtful to the productivity and morale of the effected business unit. The company must quickly reverse this trend. Sometimes the missteps are minor and easy to correct. On other occasions, more work is required.
We assist in this reversal or recovery, which is often done in crisis mode, as the company is not only dealing with the impact of an undesirable outcome of the change but also labor unrest. We enter the situation, assess management perceptions of employee issues, collect employee perceptions of key issues, calm down the workforce, stabilize the management team and help implement communications initiatives to right the ship and create engagement.
We have lived through many realities and horrors on the back end of poor change implementation. Therefore, we are very good on the front end helping organizations avoid these issues, as we have done on several occasions. We prefer operating in this proactive manner, but we cannot deny that we have performed some great rescues.
Our recommendation, if you are looking at major change in your organization, consider letting us help you avoid pitfalls by applying our knowledge that we have acquired in crisis resolution before you ever reach that point. As you can imagine, it is much better to be proactive when we are helping people adjust to the change, rather than the other way around. Some services we offer include:
Climate Assessments/Employee Focus Groups/Gap Analysis:
- We solicit feedback from management and employees about the nature of the change and workplace issues to develop a situational snapshot so all can understand the environment
- We allow managers and employees (usually in separate forums) to ask questions and provide responses so they can feel engaged and gain greater confidence/trust in the organization. Employees inherently know change is beneficial to management as they assume management would not do themselves harm. The issue for employees is how proposed changes might affect the workforce. (We also have a process for joint/blended employee-management focus groups.)
- Our focus groups create a degree of transparency that employees crave and leaders benefit from. We can also provide a Gap Analysis so management can understand the difference in issue perception between employees and management. Issue alignment tends to denote understanding and/or satisfaction. Differences in perception reveal miscommunication, dissatisfaction, and frustration that may lead to employees looking outside the organization for a solution or resisting change all together.
Management skills training programs on managing change
- Depending on the situation any number of areas could be touched on such as strategic and tactical planning, the role of a supervisor, effective communications, relationship building, conflict resolution, team engagement and more.
- Business Objective Communication Teams - We encourage employers to form onsite communications teams to deal with key issues. We can advise and assist in effective message creation and delivery. These communicators become the prime factors in engaging the workforce and aligning interests. It is a powerful tool especially if the metrics used to gauge effectiveness of the communications strategy are tied to business results.
To implement change, you must overcome resistance and create engagement. It is not enough just to counteract resistance. That can still leave you dead in the water. By inviting employees to participate and including them in discussions/decisions, you overcome the workforce's leading objection to most issues (not being included or "feeling in on things").
We have been very successful at helping teams understand resource constraints and developing solutions within the acceptable business parameters. You have to tell employees and managers why and how (a) being engaged, (b) being interested (focused) at work and (c) implementing change is going to help them.
Remember, if you are asking someone to change, they automatically think the change is good for you, the personal question for them is... "Is your change good for me?" They want to know WIIFM - "what's in it for me?" What we do is help explain the change so it can sell itself. Good change sells itself. This gives you a good result. |
|
|
Tying it all together...
This past week, I had the honor of being the keynote speaker for The Salvation Army Boys & Girls Clubs of Metropolitan Houston Youth of the Year Scholarship Dinner. I spoke to hundreds of kids and parents about the value of education, making good decisions and learning to reach for opportunity (and not just waiting for life to happen to you).
As employers, we have a responsibility to our employees. For the most part, they have worked hard to get where they are and their ambitions are to be helpful and productive. It is our obligation to build a team by harnessing those ambitions, including employees in communications, recognizing not only great work, but consistently dependable work and being sympathetic to their personal problems. At the end of the day, everyone wants to be successful, it is our job as leaders to help make that happen.
The Salvation Army awarded over $140,000 in scholarships that night. Each of the winners (ages 12 to 18) gave incredibly inspiring speeches about how they plan to persevere in life, get an education, enter the workforce and make a good life for themselves.
I for one, can't wait to see what they become. |
|
Services Include
- Positive Employee Relations
- Focus Group Facilitation
- Satisfaction & Alienation Audits
- Improving Labor-Management Relations
- Union Free Intiatives
- Supervisor Training
- Employee Training
- Online Training
- Communications Support
- Collective Bargaining
- Contract Administration Training
- Noncontract grievance resolution
- Workplace Investigations
- Representation Elections
We work in all areas Employee Relations to help you arrive at a solution to better your workplace. |
|
|
|
About Us
February 2011 is already here. The year has begun at breakneck pace. We continue our emphasis on providing information to our professional contacts. We are pushing information out to you on developing Labor Relations, Human Resources, EEO, Investigation and Litigation related workplace issues that could impact your workforce.
We will provide solutions and input for unionized employers and nonunion employers. The goal will be to help you improve your relationship with your workforce whatever the labor scenario. Union or no union... employers want positive employee relations.
We are regularly updating our website. Visit our new site at www.teambellinc.com. Also take a moment view our blog and look for us on twitter. 2011 is going to be a banner year.
We wish each of you the very best. |
|
|
|
|
|