End of 2016, Beginning of 2017 - Astronology® Looks Back on an Exciting Year in HR

We find ourselves again at the end of another year! Can you believe the 4th quarter of 2016 is coming to a close? Continuing with previous year ending Astronology® releases, we will review some hot button issues & events in Human Resources in 2016, and how they may reappear in the HR realm during 2017.

Work Stoppage…to reappear again?
In September, many were surprised to learn that a college campus, Long Island University’s Brooklyn Campus (LIK-Brooklyn), was undergoing a faculty lockout. In a September Astronology®, we discussed work stoppages and learned that they are not held often. Lockouts and other forms of work stoppage occur with even large organizations, such as the NFL and Kellogg’s. Is it possible that other organizations can possibly find themselves in a similar bind in 2017? We certainly hope not. However, there have been murmurs of another sports franchise narrowly avoiding a lockout in the upcoming year. As a result, we do need to be mindful of the issue.

Minimum Wage Challenges?
In recent years, we have been peppered with discussions over living wages, the “Fight for $15” campaign, and their impacts on Human Resources and compensation. In April of this year, we saw New York Governor Andrew Cuomo reveal plans to raise the minimum wage to $15 by 2021. Other cities have also followed suit…or have already begun rolling schedules to reach higher wages. With the presidential elections over, and President-Elect Donald Trump making cabinet selections, many wonder what will become of the federal minimum wage. We all eagerly wait to see what happens with the minimum wage in 2017.

FLSA Final Rule. Is it on? Or off?
A number of organizations worked closely with their Human Resources partners and departments to prepare for the enactment of the FLSA Final Rule announced in May 2016. In some cases, job descriptions had to be clarified in order to help distinguish levels of positions. In other cases, adjustments in pay had to be made to ensure compliance. Then suddenly in November, a few days shy of the December 1 active date, an injunction was called and everything was put on pause. With a new presidential administration coming in, organizations are left with questions. Will the FLSA Final Rule push through? Will it be completely thrown out? Is it possible the mandate will be reformed? Only time will tell. We all anxiously await. In the meantime, it’s been suggested that organizations that have already made adjustments keep them, as the federal hold on the FLSA rule does not change any city or state laws.

Technology Marches Onward!
It’s predicted that by the year 2020, millennials will make up 75% of the workforce. This advancing change in workforce makeup also has accompanied an advance in technology. This technology can take many forms, including automation, gamification in performance reviews, and data analysis. Astron is especially hopeful to seeing more advancements in the area of HR technology and data analysis as a part of organizations’ strategic decision making processes.

As 2016 comes to a close, we eagerly look forward to 2017 for some answers to questions and some surprises in Human Resources. Were there other topics from 2016 that you think may make a resurgence in 2017? Why not share your thoughts with Astronology®! We’d love to hear your opinions!

Work Stoppage in the 21st Century

What do the NFL, the cereal brand Kellogg’s, and Long Island University Brooklyn Campus (LIU-Brooklyn) have in common? They all have dealt with employee lockouts in the last five years. Given the September 14th end to the LIU-Brooklyn faculty lockout, in this issue of Astronology® we discuss lockouts and work stoppage in general.

Strike vs. Lockout…what’s the difference?
Both lockouts and strikes are forms of work stoppage. However, the ways they develop are different. Strikes occur when employees decide as a group to stop working during a labor dispute. In some cases, striking can be illegal. For instance, certain labor contracts, as well as certain public service employees, are not allowed to strike. An exception to this rule could be if the job has hazardous work conditions. Oftentimes, the National Labor Relations Board (NLRB) determines whether a strike is lawful.

Strikers fall under two categories. The objectives of “economic strikers” are better wages, hours, and/or working conditions. The objectives of “unfair labor practice strikers” involve rectifying unfair labor practice(s) allegedly committed by the employer.

Lockouts occur when management decides that employees should stop working during a labor dispute. In some instances, employers will hire replacement workers, even though locked out employees are entitled to their jobs after the lockout ends. The NLRB lists a number of things employers can do with respect to lockouts and strikes, including the following:

• Lock out employees defensively – provided it is not to interfere with or defeat union activity.
• Lock out employees defensively – in response to a “whipsaw” strike.
• Lock out employees offensively – if the sole purpose is to “bring economic pressure to bear in support of a legitimate bargaining position.”
• Hire temporary replacements to continue operations during a strike or lawful lockout.
• Hire permanent replacements to continue operations during an economic strike.

How often do work stoppages occur? According to the Bureau of Labor Statistics (BLS), there were only 12 major strikes and lockouts in 2015. These stoppages idled 47,000 workers. The lowest annual report was a total of five major strikes and lockouts back in 2009.

Lockouts in the Education Field

In the case of LIU-Brooklyn, the faculty lockout was an unprecedented move in the higher education field. SHRM mentioned in an online article that these lockouts rarely occur for a number of reasons. For instance, it is speculated that the current NLRB is more prone than prior boards to rule against employers. Publicized lockouts also can give the employer a negative label in the eyes of the public. In the case of the higher education sector, where the needs of the student are directly linked to the quality of the staff, if the staff isn’t happy, students aren’t either. For the business and advertising aspects of higher education, this is bad publicity, and bad for business.

LIU-Brooklyn initiated its faculty lockout in order to avoid a strike, since previous negotiations have resulted in strike votes. The faculty lockout, which started September 2nd, lasted until September 14, 2016. The solution reached? LIU administration extended the faculty members’ previous contracts until May 2017, and will reimburse healthcare costs incurred during the time period of the lockout for the affected 400 professors.

What of the other companies mentioned in the beginning of this article? Back in May 2015, Kellogg’s was found guilty of unlawfully locking out 200 employees for nine months at its Memphis, Tennessee cereal plant. Kellogg’s had to bargain with the union, offer to reinstate any locked out workers who had not returned to work, and give back pay and benefits lost during the lockout. For the NFL, in 2011 the 18 week, four day lockout ended with NFL owners approving a 10 year bargaining collective agreement that was later ratified by NFL players.

Has your organization ever faced a form of work stoppage? How was it handled? Share your thoughts with Astronology® and we may feature your response in a future article!