Labor Relations: Still Relevant for HR Professionals?
by Howard M. Leftwich, Ph.D.

Labor relations have been prominent in the Greater Cincinnati news media lately: a major national effort by two unions to organize Cintas employees; a strike by service employees at Miami University; strikes against Kroger and other supermarket chains on the West Coast and elsewhere; a unionization vote among middle managers of the City of Cincinnati; and a drive to organize adjunct faculty at the University of Cincinnati.

Do these news items indicate that labor relations remain a significant part of the HR function in the early 21^st century?  Or are they isolated incidents that may be of interest to the news media but of little relevance to most HR professionals? 

As has been widely reported, unionization has declined to less than nine percent of the private sector workforce.  Can labor relations still be considered an important competency for the HR profession when fewer than one in ten private sector employees belong to a union?

In this article I contend that labor relations remain an important competency for HR professionals despite the long-term decline in private sector union density.  (“Density” is simply the percentage of any specified group of employees belonging to unions).  My conclusion is based on experience during the many years I served as a professor at the University of Cincinnati, teaching and researching in labor relations and human resources, directing the Master of Arts in Labor and Employment Relations (MALER) degree program, and interacting with HR and labor relations professionals.

First, private sector union density is a poor guide to the extent of unionization in particular industry groups.  Inter-industry variations in union density are sizeable.  Although some groups, such as financial services, are almost entirely non-union, other important groups, such as railroad and airline transportation,  are heavily unionized.  HR professionals in these industry groups must be knowledgeable about labor relations.   Negotiating and administering collective bargaining agreements and making day-by-day HR decisions in light of these agreements are a vital part of the HR function. 

Second, union density remains at almost 40 percent of the public sector workforce.  Collective bargaining is widespread among teachers, police and firefighters, and other  public employees.  Clearly, labor relations remain an important competency for many public sector HR professionals.  

Third, globalization can increase both the significance of labor relations and the complexity of labor relations duties.  Responsibilities of HR professionals in the growing number of multinational firms may extend to facilities abroad.  In some countries, such as Canada and many nations in Europe, union density exceeds that of the United States, often by a wide margin.  Dealing with unions is a vital part of the HR function for many companies operating in these countries.  In addition to understanding the basics of labor relations, top performance by HR professionals with international responsibilities may  require knowledge of labor relations institutions, practices, and laws and socio-economic environments that differ considerably from the United States.  Such knowledge may be especially important at the level of strategic planning and decision making.   

Fourth, labor relations competencies can be a prerequisite for excellent performance by HR professionals in many nonunion companies.  Some major facets of labor relations, such as those relating to organizing and establishing unions, are more important in nonunion companies than in those already organized.

Here are a few examples of labor relations issues relevant in nonunion companies. What may cause employees to think about unionizing?  What is the role of HR and management in determining employee attitudes toward unionization?  How do organizing campaigns get started?  What processes and tactics are commonly utilized?  How may questions of union recognition be resolved?  What are the implications of union recognition and collective bargaining for the company and its employees? 

Labor relations are extensively regulated by law. HR professionals in nonunion companies should know the major legal regulations, especially those governing union organizing and management responses.  They should also understand the process by which labor relations laws are administered and the remedies for violations

But being knowledgeable about labor relations is only the beginning of the HR professional’s responsibilities in both nonunion and unionized companies. It must be determined who in the company needs to know what about labor relations for effective job performance.  Cost-effective and continuing education and training programs must be in place to teach, reinforce, and update competencies and emphasize the importance of utilizing them in the performance of duties. 

For example, what must line managers, particularly first-line supervisors, know about labor relations if they are to be effective?  Their actions can significantly affect to the desire of employees to unionize.  Also, employers can be found guilty of unfair labor practices (violations of labor relations law) due to inadvertent acts of managers who are unaware of applicable legal guidelines.

 HR professionals also may need to evaluate selection criteria, performance evaluation criteria, and compensation systems for managers to promote better performance of activities relating to labor relations, whether the focus is on dealing with an incumbent union or potential unionization.  Finally, there may be a need to improve systems for monitoring the performance of tasks and functions relating to labor relations.

In assessing the importance of labor relations to HR professionals in nonunion companies, keep in mind that efforts to organize nonunion employees are ongoing. Emphasis is being given to increasing the resources devoted to organizing, developing innovative organizing tactics, and identifying employee groups who may be receptive to unionization.

Despite the long-term decline in private sector union density, it is likely that labor relations will remain an important part of the HR function, both in its day-by-day and strategic aspects.  The training and continuing education of HR professionals should be planned with this in mind. 

Dr. Howard M. Leftwich is a successful educator of HR professionals.  As a professor at the University of Cincinnati he taught courses and conducted research in labor relations and human resources and served as director of UC’s acclaimed MA degree program in Labor and Employment Relations.  Since his recent retirement from UC Dr. Leftwich continues to be active in HR professional education and is affiliated with Gravett and Associates.  He offers a number of workshops and can tailor programs to meet the needs of individual clients.  Dr. Leftwich can be contacted at howard.leftwich@uc.edu.