CONTRACT ADMINISTRATION
• Traditional collective bargaining during the term
of the collective agreement
• Normally carried out through the grievance
procedure
– Substitute for right to strike
• Means by which the collective agreement is
enforced on day-to-day basis
• Traditional Roles of Parties
– Management acts
– Union reacts through the grievance procedure
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Administration of the Grievance
Procedure
• In almost all cases, it is a multistep
procedure involving successfully higher
levels of union and management
– decision-making authority
– increasing detachment and objectivity
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Steps in a Typical Grievance
Procedure
• Employer -Reps
– 1 - F/L Supervisor
– 2 - Plant/Site Labor
Relations Director
– 3 - Corp. Labor
Relations/Reg. LR
– 4 - Arbitration
• Union Reps
– 1 - Steward/
Committeeperson
– 2 - Local President/
Chief Steward/ Chair
of Barg Committee
(highest plant level)
– 3 - Int. Rep./Local
Pres./Bus. Agent
– 4 - Arbitration
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How is a Grievance Filed?
• A grievance is normally filed by initiating
the grievance procedure
– Starts the process at Step 1
– Union legally obligated to file a grievance if
employee insists
• Duty of Fair Representation
• Legal obligation to represent the employee fairly
and in a non-arbitrary and non-capricious manner
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Why Are Grievances Filed?
• Relationship Determinants
– Nature of the relationship – adversarial or cooperative?
• Individual Determinants
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less satisfied with their jobs
poorer attitudes toward supervisors
greater feelings of pay inequity
stronger beliefs that workers should participate in decision-making
were less satisfied and more active in unions, less educated
more likely to be African-American
• Organizational Determinants
– Cost of leaving high (high wages and high unemployment
– Perceived strictness of management/supervision
• Union Determinants
– Union policies (such as writing all grievances)
– Union politics
5
What is a Contractual/Legal
Grievance?
• Defined by the collective agreement
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any dispute over the interpretation of the agreement
“express, written terms of the agreement”
“any difference of opinion”
“(a)ny difference of opinion, controversy, or dispute . . .
concerning conditions of employment, or concerning
the interpretation or application of this agreement”
• Typically a grievance will cite the contract
provision that is alleged to be violated
6
Processing of Grievance
• As cases go through the steps of the
procedure, formality increases
• Union
– Controls the grievance procedure
– Grievant (Grievor) has no right to have case
taken beyond Step 1
7
Grievance Procedure – Prior to
Arbitration
• Most grievances are resolved prior to final
and binding arbitration
• Law generally requires the parties to share
information with each other during
grievance process
– Somewhat analogous to the bargaining process
– Purpose is to enhance chances for agreement
• Grievance procedure a blend of the formal
and the informal
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Resolutions
• Grievance Withdrawn
– Outright but without prejudice (to future cases)
– With an agreement on the matter for the future
• Grievance Granted
– Outright but without prejudice (to future cases)
– With an agreement on the matter for the future
• Compromise
– Discharge
• Employee monetary settlement
• Last chance agreement
• Almost all grievances are resolved prior to
arbitration
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Should Union Go Arbitration?
Yes
• Merits of the grievance
– Union – contract violated
– Employer- no violation
• Test case, need certainty in
a matter
• Legal obligation to fairly
represent employees
• Union policy
No
• Merits of the grievance
– Union – no violation
– Employer – violated contract
• Not a strong enough case to
use as a test case
• Cost is high relative to
benefit (non-discharge case)
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Concepts of the Grievance
Procedure
• Legalistic Concept
– As a series of steps that must be followed prior
to going to arbitration
• Bargaining Concept
– As a vehicle for meeting and solving problems
that arise during the term of the collective
agreement
• By resolution
• By creating agenda items for bargaining
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Examples of Bargaining Concept
• City in Michigan Housing Case
• Soft-Drink Company Pay Case
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Arbitrator Selection Systems
• Ad Hoc – Administering Agencies
– Federal Mediation and Conciliation Service
– State Agency (Michigan Employment Relations
Commission)
– American Arbitration Association (private)
• Permanent Panel
– Rotate
– Earliest hearing date
• Single Umpire
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Issues Associated with Selection
Systems
• Ad Hoc
– Arbitrator clean slate, absence of preconceptions
– Not familiar with industry or parties
• Permanent Panel
– Familiar with parties
– May have preconceptions of parties
• Single Umpire
– Similar to permanent panel
– Certainty
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