Based on the findings of the Management Employee Relations in Corrections (MERIC) project, this management guide for correctional administrators is designed to facilitate enlightened and responsible management within the context of public sector labor relations. The introduction to the guide describes the MERIC study and discusses trends in state collective bargaining, labor relations in the public sector, labor relations in state prison administration, and the impact of prison employee unionization. The guide is divided into five chapters which cover the following issues: general issues in collective bargaining, issues relating to employee benefit provisions, issues involving union role in state correctional administration, issues involving other correctional services, and future issues. A public agency index concludes the guide, and a glossary of collective bargaining terms and a list of public sector labor relations resources are appended. (BM)