NATIONAL WORKFORCE ASSISTANCE COLLABORATIVE

Labor-Management Relations Best Practice Guidelines

Labor-management relations encompasses the mutual relationship between an organization's employer and employees, and in unionized workplaces, their union representatives. Labor-management relations deals with:

• The policies and practices governing the employees' relationship to the company, to the job, and to his or her colleagues; and
• The process for establishing and modifying these policies and practices.

Best practice labor management relations programs share the following characteristics:

RELATIONSHIPS

1. Policies and practices governing employees' relationship to the company demonstrate respect and value for employees and their representative organizations, and promote mutual trust.

1.1 Basic terms of employment are fair and equitable. Pay and benefits will: a) be at or above market rates, b) reflect the employer's ability to pay, and c) make employees partners in the creation and distribution of wealth.

1.2 There is a long-term commitment to the partnership reflected in efforts to ensure employment security. The company helps employees assess their skills and explore job alternatives, facilitates lifelong learning and job movement, and, if it comes to that, supports no-fault exits.

1.3 The work environment supports a high quality of work life and ensures employees' health and safety.

2. Policies and practices governing employees' relationship to the job stimulate pride in work.

2.1 All workers are trained to know what the business is about, the challenges the company faces, and the contribution they make to the company's productivity.

2.2 There is individual and collective involvement in problem solving at all levels of the company.

2.3 There is individual and collective involvement in decision making related to management systems (plant & equipment, quality & product, organization & procedures, planning process).

2.4 Ongoing professional development and technical training strategies equip workers with a broad range of skills to increase labor flexibility, develop employees' capacity, and maximize employees' contribution.

2.5 The organization of work promotes employee skill development, commitment, responsibility, flexibility, and organizational productivity.

2.6 Employees are compensated based on the skills and experience they possess.

3. Policies and practices governing employees' relationship to colleagues ensure there is no disadvantage to any individual or groups of employees.

3.1 Policies and practices minimize social and economic distinctions between management and other employees.

3.2 Issue resolution systems provide due process, allow free speech, and provide the ability to confront those in authority.

PROCESS

4. The process for establishing and modifying the policies and practices governing the employees' relationship to the company, to the job, to his or her colleagues, and to the success of the firm builds commitment by both labor and management to improve individual and firm performance.

4.1 Development and modification of policies and practices governing the employees' relationship to the company, to the job, to his or her colleagues, and to the success of the firm is conducted in an atmosphere of mutual respect, trust, and good will. In unionized firms, the process of development and modification has a foundation of partnership reflected in a professional approach to the collective bargaining process.

4.2 The involvement and commitment of management and workers from the outset (and in unionized firms, their unions) is integral to the development and modification of policies and practices.

4.3 Consultation occurs between and among management and workers (and in unionized firms, their unions) during the process of identifying the issues that need to be addressed in establishing and modifying policies and practices, and in setting the objectives that the company wishes to achieve. The consultation also focuses on the evaluation of the options available to address the issues identified, the changes required, and the means and timing of their implementation.

4.4 Development and modification of policies and practices is designed to elicit input to the final agreement from all parties through two-way communication and negotiation. It is supplemented by communication mechanisms that distribute relevant information throughout the organization to receive feedback from all of the workforce. (In unionized firms, this feedback is channeled through worker representatives as well.) There is full and complete information disclosure so that employees can participate as equal partners.

4.5 Development and modification of policies and practices takes account of human value, the need to increase productivity, and customer requirements.

4.6 Development and modification of policies and practices is future directed and value driven, not rule driven or position driven.

4.7 Monitoring and review of the performance of the workplace is ongoing. Through a consultative and problem solving process, policies and practices are adapted and changed to continually improve the status of the labor-management partnership.

4.8 In unionized firms, there is a recognition that the union is an independent source of power for workers that protects employees' interests in the workplace and helps to equalize the power relationship with management by providing a representative structure, ensuring a meaningful voice, promoting employment security and positive rewards, and promoting and ensuring continuous learning and skill enhancement.

4.9 The rights of employees to select representatives of their own choosing is recognized at both unionized and unrepresented workplaces as integral to all aspects of a democratic, high performance workplace.

4.10 There is a comprehensive training and development program to assist both workers and managers to acquire the communication, interpersonal, group, and industrial relations skills needed to develop and implement best practice policies and practices.