354 Human Resources Management for Public and Nonprofi t Organizations
job qualifi cations, selection, placement, promotion criteria, and the functions
of the civil service commission or merit system are often excluded from
bargaining in the public sector. The Iowa Public Employee Relations Act
specifi cally excludes the public retirement system from the scope of man-
datory bargaining. Other states exclude the merit system. Illegal topics
for nonprofi t and private organizations could include a closed shop union
security provision or contract terms in violation of state or federal laws.
For example, contract clauses that permit unions to discriminate against
persons of color or against members of certain religious groups would be
illegal because they violate Title VII of the 1964 Civil Rights Act and many
state fair employment practice acts.
Employer and Management Rights
The missions of public sector organizations are decided by legislative
bodies. The managers responsible for the performance of these functions are
accountable to those legislative bodies and ultimately to the people. Major
decisions made in bargaining with public employees are inescapably political
because they involve critical policy choices. The matters debated at the
bargaining table are not simply questions of wages, hours, and vacations.
Directly at issue are questions of the size and allocation of the budget,
tax rates, the level of public services, and the long - term obligation of the
government. These decisions are political in the sense that they are to
be made by elected offi cials who are politically responsible to the voters.
They are generally considered legislative decisions and not subject to delega-
tion (Edwards, Clark, & Craver, 1979). Therefore, public sector employers
tend to have more discretion than nonprofi t or private sector employers in
exercising their management rights.
Impasse Resolution
When management and labor are unable to agree to contract terms, an
impasse occurs. Third - party intervention often becomes necessary to help
resolve their differences. Three procedures are commonly used to resolve
impasses: mediation, fact fi nding, and arbitration.
Mediation When a bargaining impasse occurs, either one or both of the
parties may request mediation: the introduction of a neutral third party
into the negotiation process to assist the bargaining parties in resolving
their differences. Mediators often meet with the parties individually at