A Labor Relations Manager is a human resources (HR) professional who manages relationships between employers, employees, and labor unions. They help ensure compliance with labor laws, maintain fair workplace practices, and foster productive labor relations.
In particular, these managers negotiate collective bargaining agreements in industries and countries with higher union membership rates. Regardless of whether employees are unionized (or are in the process of forming a union), labor relations managers handle workplace disputes among employees or between employees and management and advise company leadership on best practices to prevent disputes from occurring in the first place.
Key responsibilities of the labor relations manager
Negotiating collective bargaining agreements, engaging with unions
One key responsibility of a labor relations manager is negotiating collective bargaining agreements (CBAs). This involves negotiating with employee unions to establish equitable terms for employee wages, benefits, and working conditions that balance employee needs with organizational goals. Whether labor relations managers negotiate with unions regularly depends on the industry in which they work and the country where they reside.
If the negotiations are extensive, reaching a final CBA between a company and the union can take a long time. For example, although the coffee retailer Starbucks recognized the existence of an employee union in early 2024, a CBA still had not been formalized by early 2025, and conversations between the parties were at a standstill.
Additionally, labor relations managers collaborate closely with legal teams and HR colleagues to draft labor agreements that adhere to relevant employment laws and regulations.
What skills and qualifications are needed?
- Negotiation and mediation skills. Experience in collective bargaining, union contract negotiations, and workplace dispute resolution.
- Contract management and legal compliance. Proficiency in interpreting and enforcing labor agreements and contracts.
Resolving workplace disputes and grievance handling
Labor relations managers are crucial in resolving labor issues that arise within organizations. A central component of their job is to investigate employee grievances and workplace complaints, gathering relevant information promptly from all parties to understand the full context of issues.
These professionals also act as mediators between employees, unions, and management, facilitating dialogue to find mutually acceptable solutions that prevent conflicts from escalating into litigation or work stoppages (strikes).
According to the Society for Human Resource Management (SHRM), having a comprehensive policy for addressing employee grievances is wise for employers and employees for different reasons. “An effective grievance procedure provides employees with a mechanism to resolve issues of concern,” they wrote. “The grievance procedure may also help employers correct issues before they become serious issues or result in litigation.”
What skills and qualifications are needed?
- Conflict resolution and employee advocacy. Strong ability to mediate disputes and maintain balanced labor relations.
Ensuring compliance with labor laws and employment regulations
A labor relations manager ensures that organizations adhere to labor laws and employment regulations across all jurisdictions in which their organization operates. This includes staying up to date with local, regional, and federal labor laws, such as the National Labor Relations Act (NLRA), Fair Labor Standards Act (FLSA), and Occupational Safety and Health Administration (OSHA) standards in the U.S and labor directives in the EU.
A company’s inability to adhere to labor laws and employment regulations can hurt its reputation among current and potential employees and customers. It is also expensive. For example, the retailer Dollar General has been repeatedly fined by OSHA for blocking exits with excess inventory, preventing employees from quickly leaving the building in an emergency.
Many of Dollar General’s errors could have been avoided if a labor relations manager had conducted compliance audits and risk assessments to identify potential vulnerabilities. Such reviews proactively address issues to prevent labor law violations and safeguard the organization’s legal and ethical standing.
What skills and qualifications are needed?
- Employment and labor law expertise. In-depth knowledge of the NLRA, FLSA, OSHA, and union regulations.
Conducting labor market research and workforce analysis
Market research and workforce analysis inform effective labor strategies. Labor relations managers are responsible for analyzing industry trends in union activity, monitoring labor law changes, and assessing employee relations patterns to anticipate potential challenges. These data-driven insights help organizations adapt to ever-changing labor dynamics, align workforce policies with industry standards, and make informed decisions that support business objectives and employee satisfaction.
While corporations often discourage attempts to unionize to the extent possible within the law, tech giant Microsoft has taken a different approach in recent years, seemingly in response to analyzing changes in the market. “Microsoft’s continued leadership and success will require that we continue to learn and adapt to a changing environment for labor relations in the years ahead,” Brad Smith, President and Vice Chair of Microsoft, wrote in 2022. He also stated, “resisting lawful employee efforts to participate in protected activities, including forming or joining a union,” does not benefit stakeholders.
Microsoft’s acceptance of unions aligns with popular sentiment. A Gallup poll revealed that 67% of Americans approve of unions, up from just 48% in 2009.
What skills and qualifications are needed?
- Data analysis and workforce strategy. Experience in analyzing labor trends and making policy recommendations.
Advising management on employee relations policies
To prevent disputes between employees and employers, labor relations managers advise managers on effectively creating a positive workplace culture that promotes collaboration, trust, and employee engagement. Labor relations managers can be invaluable during a merger and acquisition process, advising managers on methods to keep employees engaged in a period of change and uncertainty.
Labor relations managers also train leadership teams on effective labor relations practices and how to comply with legal requirements. This equips them with the tools to navigate complex workforce dynamics while maintaining strong employer-employee relationships.
Labor relations manager vs. other HR roles
Labor relations managers play a distinct role within the broader HR landscape, setting them apart from HR managers and employee relations specialists.
- HR managers. HR managers handle general HR functions, while labor relations managers specialize in union interactions, labor law compliance, and dispute resolution.
- Employee relations specialist. These specialists focus on internal workplace culture and conflict resolution, whereas labor relations managers handle union negotiations and legal compliance.
FAQs
What does a labor relations manager do?
They manage union negotiations, labor law compliance, and employee dispute resolution to ensure fair and legal workplace practices.
What skills are needed to be a labor relations manager?
Employment law knowledge, negotiation expertise, conflict resolution, contract management, and workforce analysis skills.
What qualifications are needed to become a labor relations manager?
Labor relations managers have significant HR experience, especially in resolving employer-employee issues. In addition to a four-year degree from a college or university, they may have an advanced degree in human resources, law, or business administration.
Preferred credentials include the Society for Human Resource Management’s Senior Certified Professional (SHRM-SCP), the National Public Employer Labor Relations Association’s Certified Labor Relations Professional (CLRP), and the HR Certification Institute’s Professional in Human Resources (PHR).
How does a labor relations manager differ from an HR manager?
HR managers handle broad HR tasks, while labor relations managers specialize in union relations, labor law compliance, and dispute resolution.
Why is labor relations management important?
Managing labor relations helps companies avoid labor disputes, comply with employment laws, and maintain positive workplace relationships.
What industries and organizations require labor relations managers?
High-demand industries include manufacturing, healthcare, government, and transportation, along with workplaces that have unions.
Focus on employees, not on creating a legal entity
Creating a workplace where employees are treated fairly and paid appropriately is the best way to prevent labor disputes. But doing that is easier said than done—especially in new markets with different cultural norms and labor laws. Organizations seeking to do business in new countries may seek support ensuring that their HR polices adhere to local labor laws and regulations. Partnering with Velocity Global, a global employer of record (EOR)— helps your business remain compliant while allowing you to focus on international expansion. Contact Velocity Global to find out more.
