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BUSN101 Ch.12 Dealing with Union and Employee-Management Issues

An employee organization whose main goal is representing its memebers in employee-management negotiations of job related issues
Craft union
An organization of skilled specialist in a particular craft or trade
Knights of Labor
The first national labor union; formed in 1869
American Federation of Labor (AFL)
An organization of craft unions that championed fundamental labor issues; founded in 1886
Industrial unions
Labor organizations of unskilled workers in mass-production industries such as automobiles and mining
Congress of Industrial Organizations (CIO)
Union organization of unskilled workers; broke away form the American Federation of Labor (AFL) in 1935 and rejoined it in 1955
Yellow-dog contract
A type of contract that required employees to agree as a condition of employment no to join a union; prohibited by the Norris-LaGuardia Act in 1932
Collective bargaining
The process whereby union and management representatives form a labor-management agreement, or contract, for workers.
Formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees
The process by which workers take away a unions right to represent them
Negotiated labor-management agreement (Labor contract)
Agreement that set the tone and clarifies the terms under which management and labor agree to function over a period of time
Union security clause
Provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either officialy join or at least pay dues to the union
Closed shop agreement
Clause in a labor-management agreement that specified workers had to be members of a union before being hired (was outlawed by the Taft-Hartley Act in 1974)
Union shop agreement
Clause in the labor-management that says workers of a union to be hired, but must agree to join the union within a prescribed period
Agency shop agreement
Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee.
Right-to-work laws
Legislation that gives workers the right, under an open ship agreement, to join or not to join a union if it is present
Open shop agreement
Agreement in the right-to-work states that gives workers the option to join or not to join a union, if one exists in their workplace
A charge by employees that management is not abiding by the terms if the negotiated labor-management agreement
Shop stewards
Union officials who work permanently in a organization and represent employee interests on a daily basis
Bargaining zone
THe range of options between the initial and final offer that each party will considere before negotiations dissolve or reach an impasse.
The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute
The agreement to bring in an impartial thrid party (a single arbitrator ir a panel of abritrators) to render a binder decision in a labor dispute
A union strategy in which workers refuse to go to work; the purpose is to further workers’ objectives after an impasse in collective bargaining
Cooling-off period
When workers in a critical industry return to their jobs while the union and management continue negotiations
Primary boycott
When a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute
Secondary boycott
An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the Taft-Hartley Act.
An attempt by management to put pressure on unions by temporarily closing the business
A court order directing someone to do something of to refrain from doing something
Workers hired to do the jobs of striking workers until the labor disute is resolved
Concessions made union members to management; gains from labor negoations are given back to management to help employers remain competitive and thereby save jobs
Sexual harassment
Unwelcome sexual advances, request for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment
Why did workers originally form unions?
Workers originally formed unions to protect themselves from intolerable work conditions and unfair treatment from owners and managers. They also wanted to secure some say in the operations of their jobs.
Labor unions were largely responsible for:
Labor unions were largely responsible for:
a. the establishment of minimum wage laws
b. overtime rules
c. workers’ compensation
d. severance pay,
e. child labor laws
f. job safety regulations
Why has union strength declined in the last 2 decades?
It is suggested that the reasons for the decline in union strength/membership are global competition, shifts from manufacturing to service and high-tech industries, growth in part-time work, and changes in management philosophies. Others believe that the membership decline is related to labor’s success in seeing the issues it has promoted become law.
Most historians agree that today’s unions are an outgrowth of:
Most historians agree that today’s unions are an outgrowth of the economic transition caused by the Industrial Revolution. Workers who went from agricultural jobs to factory jobs found that strength through unions could lead to improved job conditions, better wages and job security.
The Industrial Revolution changed the economic structure of the United States.
Formal labor organizations date back to
Formal labor organizations date back to the time of the American Revolution, as early as 1792.
How did the Industrial Revolution impact the formation and growth of unions?
The Industrial Revolution changed the economic structure of the United States. Productivity increases from mass production and job specialization made the U.S. a world economic power.

This growth brought problems for workers in terms of expectations, hours of work, wages and unemployment. Workers who failed to produce lost their jobs. People had to go work when they were ill or had family problems. Hours of work were expanded, and an 80-hour work week was not uncommon. Wages were low, and the use of child labor was widespread.

The first nation labor organization was the:

Its intention was to:

The first national labor union was the Knights of Labor.

The intention of the Knights of Labor was to gain significant political power and eventually restructure the entire U.S. economy.

What was the AFL and why did the AFL limit membership?
The American Federation of Labor, AFL, was an organization of craft unions that championed fundamental labor issues.

The AFL limited membership to skilled workers assuming they would have better bargaining power in getting concessions from employers.

Why was the CIO formed?
The Congress of Industrial Organizations broke away from the AFL, and was formed to organize both craftspeople and unskilled workers.
How was the AFL-CIL created?
The AFL and the CIO merged in 1955 after each organization struggled for leadership for several years.
Five major pieces of labor-management legislation are:
a. Norris-LaGuardia Act 1932
b. National Labor Relations Act (Wagner Act) 1935
c. Fair Labor Standards Act 1938
d. Labor Management Relations Act (Taft-Hartley Act) 1947
e. Labor Management Reporting and Disclosure Act (Landrum-Griffin Act) 1959
The major elements of the Norris Laguardia Act are that it:
a. Prohibited courts from issuing injunctions against nonviolent union activities
b. Outlawed contracts forbidding union activities
c. Outlawed yellow dog contracts.
What are the major provisions of the Wagner Act (National Labor Relations Act)?
The Wagner Act (National Labor Relations Act) gave employees the right to form or join labor organizations, and the right to collectively bargain in good faith with employers who were obligated to meet at reasonable times. It also gave workers the right to engage in strikes, picketing, and boycotts. The act prohibited certain unfair labor practices by management, and established the National Labor Relations Board. It also provided workers with a clear process to remove a union as its workplace representative.
The NLRB provides:
The NLRB provides guidelines and offers legal protection to workers that seek to vote on organizing a union to represent them in the workplace. This process is called certification.
How would the Employee Free Choice Act benefit unions?
The Employee Free Choice Act would benefit unions in that it would make I easier for unions to organize workers. The legislation would replace the secret ballot now used with card check, whereby workers would approve union representation by simply signing a card.
What did the Fair Labor Standards Act do for workers?
The Fair Labor Standards Act set a minimum wage and maximum basic hours for workers.
What act did the Taft-Hartley Act amend, and what does Taft-Hartley permit and prohibit?
The Taft-Hartley Act amended the Wagner Act. It permitted states to pass right to work laws, and set up methods to deal with strikes affecting national health and safety. The act also prohibits secondary boycotts, closed- shop agreements, and featherbedding.
What are the major elements of the Landrum-Griffin Act?
The Landrum-Griffin Act amended the Taft-Hartley Act and the Wagner Act. It guaranteed individual rights of union members in dealing with their union, and required annual financial reports to be filed with the U.S. Department of Labor. One goal of this act was to clean up union corruption.
How have the objectives or organized labor shifted with social and economic trends?
The primary objectives of labor unions in the 1970s were additional pay and additional benefits. In the 1980s the focus shifted to issues related to job security and union recognition. In the 1990s and early 2000s, the focus was again on job security due to global competition and outsourcing.
List the general topics covered in labor-management agreements.
The general topics covered in labor-management agreements are:
a. Management rights g. Hours of work and time-off policies
b. Union recognition h. Job rights and seniority principles
c. Union security clause i. Discharge and discipline
d. Strikes and lockouts j. Grievance procedures
e. Union activities and responsibilities k. Employee benefits, health and welfare
f. Wages
Distinguish between:

Union security clause:
Union shop agreement:
Agency shop agreement:
Closed shop agreement:
Open shop agreement:

Union security clause: Stipulates that employees who reap benefits from a union must either officially join or at least pay dues to the union.

Union shop agreement: Workers do not have to be members of a union to be hired for a job, but must agree to join the union within a prescribed period of time.

Agency shop agreement: Employers may hire nonunion workers, who are not required to join the union, but must pay a special union fee or pay regular union dues.

Closed shop agreement: Specified that that workers had to be members of a union in order to be hired. This practice was outlawed by the Taft-Hartley Act.

Open shop agreement: Gives workers the option to join or not join a union when one is present in the workplace.

What areas will be the focus of union negotiations in the future?
In the future unions will focus on
a. child and elder care d. offshore outsourcing
b. worker retraining, e. employee empowerment
c. two-tiered wage plans f. and integrity and honesty testing
What are generally the source of grievances?
Sources of grievances are:
a. overtime rules d. transfers
b. promotions e. job assignments
c. layoffs
In the negotiations process, when does mediation become necessary? What is the job of a mediator?
Mediation becomes necessary if labor-management negotiators aren’t able to agree on alternatives within the bargaining zone. The mediator evaluates facts in a dispute and makes suggestions for resolving the dispute.
How does arbitration differ from mediation?
In arbitration, an impartial third party will render a binding decision in the labor dispute. A mediator can only make a suggestion.
What are the tactics used by labor (unions) in labor-management disputes?
Tactics used by labor in labor-management disputes are:
a. Strikes c. Boycotts
b. Picketing d. Work slowdowns
What are the possible effects of a strike?
A strike attracts public attention to a labor dispute and at times causes operations in a company to slow down or totally shut down. Strikes can lead to a resolution of a dispute, but have also led to violence and extended bitterness. Few labor disputes lead to a strike today.
What is picketing and what is the purpose of picketing?
When strikers picket, they walk around the outside of the organization carrying signs and talking with the public and the media about the issues in a labor dispute. Unions also use picketing as an informational tool before going on strike.

The purpose is to alert the public about an issue that is stirring labor unrest even though no strike has been voted.

Why are public safety workers often prohibited from striking? What action is often taken as an alternative?
Workers such as police officers or fire fighters are prohibited because of the potential for economic and social problems if those workers go off the job. As an alternative, many workers will engage in “sick-outs”, sometimes known as the “blue flu”, which is when workers arrange in groups to be absent from work and claim illness as the reason.
The tactics available to management in labor-management disputes are:
Tactics available to management in labor-management disputes include:
a. Lockouts c. Use of strikebreakers
b. Injunctions
Under what conditions might management seek an injunction?
Management might seek an injunction to
a. order striking workers back to work
b. limit the number of pickets that can be used during a strike
c. deal with actions that could be detrimental to the public welfare
For a court to issue an injunction management must:
For a court to issue an injunction management must show “just cause”, such as the possibility of violence or the destruction of property.
New issues that affect labor-management relations include:
New issues that affect labor-management relations include:
a. increased global competition
b. advancing technology
c. offshore outsourcing
d. the changing nature of work
What is the state of union membership today?
Membership in unions has declined from a peak of almost 36% in 1945 to just 12.4% today, and only 7.6% of workers in the private sector are unionized. Union membership varies by state. The largest union today is the National Education Association.
How will unions have to change in order to grow in the future?
For unions to grow, they will have to include white collar, female, and foreign born workers.
How are unions assisting management today?
Unions are helping management in training workers, redesigning jobs, and assimilating the new workforce. They are helping to recruit and train foreign workers, unskilled workers, and others who may need special help in adapting to the job requirements of the new economy.
What is the central issues regarding executive compensation today?
The central issue regarding executive compensation seems to be the level of executive pay. The average CEO of a major corporation makes 180 times the average hourly worker’s pay.

There is also considerable frustration about the fact that some CEOs are forced to resign due to poor performance, yet are still give considerable compensation upon leaving.

What is the controversy surrounding using stock options as a form of compensation for CEO’s?
Stock options account for a major portion of executive pay, and a problem arises when executives are compensated with stock options even when the company doesn’t meet expectations.
What did management consultant Peter Drucker say regarding the level of executive compensation?
Management consultant Peter Drucker suggested that CEOs should not earn much more than 20 times as much as the company’s lowest paid employee.
How does the pay of U.S. executives compare to executive pay in other countries? What bay be an explanation for the difference?
European executives typically earn about 40 percent of what U.S. CEOs make.
One explanation for the difference between the pay of American CEOs and that of European chief executives is that European companies often have workers who sit on the board of directors. Since boards set executive pay, this could be a reason why pay is less for European executives.
Describe the issue of pay equity.
Pay equity goes beyond the concept of equal pay for equal work. Pay equity revolves around the concept of “comparable worth”, the idea that people in jobs that require similar levels of education, training, or skills should receive equal pay. It centers on comparing jobs that have traditionally been held by women with those that have traditionally been held by men.
What explains the disparity between women’s pay and men’s pay, and how is the disparity changing?
In the past the primary explanation for the pay disparity between men and women was that women only worked a portion of their available years once they left school, whereas men worked all of those years. This explanation no longer applies. Now the explanation is that many working women devote more time to their families and so opt for lower paying jobs.

Studies have found that earnings of women with a college degree earn today close to what men earn.

In evaluating sexual harassment, a person’s conduct on the job could be considered illegal if:
Conduct can be considered sexually harassing if:
a. an employee’s submission to such conduct is made either explicitly or implicitly a term of employment or is the basis for employment decisions.
b. the conduct interferes with a worker’s job performance or creates an intimidating, hostile or offensive work environment.
What is the difference between “quid pro quo” sexual harassment and “hostile environment” harassment?
“Quid pro quo” harassment could be a threat such as “go out with me or you are fired”, for example. This explicitly creates a term or condition of employment.

A “hostile environment” is created when an individual’s conduct interferes with a worker’s job performance or creates an intimidating or offensive work environment. A key term is “unwelcome”, which refers to behavior that would offend a reasonable person.

What is a problem with implementing harassment policies?

What could companies do to help prevent lawsuits?

A major problem with implementing harassment policies is that workers and managers often know that a policy exists but have no idea what it says. Many companies have also set up rapid, effective grievance procedures and reacted promptly to allegations of harassment.

Companies could offer management training, and require sexual harassment workshops for all employees, which can be done on the Internet.

Child care issues raise the concerns of employers for two key reasons:
Child- care issues are important to employers today because:
a. It is estimated that child care related absences already cost American businesses billions of dollars each year
b. They raise the question of who should pay for child care services.
What controversial questions surround child care in the public and private sector?
The questions surrounding child care today concern:
a. responsibilities for child- care subsidies
b child care programs
c. parental leave
List five kinds of programs companies are providing to help with child care concerns.
Companies have responded to the need for safe, affordable day care by providing:
a. Discount arrangements with national child care chains.
b. Vouchers that offer payments toward whatever child care the employee chooses.
c. Referral services that help identify quality child care facilities.
d. On-site child care centers.
e. Sick-child care centers.
What conditions illustrate why the issue of elder care has become important in today’s workplace?
The issue has become important because the workforce in the U.S. is aging, and many workers are going to confront the problem of how to care for older parents. The number of households with at least one adult providing elder care has dramatically increased in the last two decades and is expected to continue to grow.

Current estimates suggest that companies are presently losing $11 billion a year in reduced productivity, absenteeism, and turnover from employees who have responsibilities with aging parents.

What programs can business offer to employees dealing with elder care responsibilities?
Companies can allow employees to move to flextime, telecommuting, part-time employment or job sharing. Certain companies offer employees employee assistance programs or elder care management services. However, few companies offer any type of elder care benefits programs.
What is expected to happen to the cost to companies of elder care issue in the United States?
It is expected that costs to companies will rise as more experience and high ranking employees become involved in caring for older parents and relatives. Estimates are that costs could go as high as $25 billion annually. Companies already realize that transfers and promotions are often out of the question for employees whose parents need ongoing care. The problem will continue to exist well into the 21st century.
What is the loss to business due to substance and alcohol abuse? What have companies done in response?
Approximately 40 percent of industrial injuries and fatalities can be linked to alcohol consumption. Individuals who use drugs are three and a half times more likely to be involved in workplace accidents and five times as likely to file a worker’s compensation claim. According to the U.S. Department of Labor drug use costs U.S. companies $276 billion in lost work, health care costs, crime traffic accidents and other expenses, and over $140 billion in lost productivity annually.

In response, over 70% of major companies now test workers and job applicants for substance abuse.

Describe the impact of workplace violence in the workplace?
There is a growing trend toward violence in the workplace. Workplace homicides account for 16 percent of all workplace deaths and are the number one cause of death for women in the workplace. One in six violent crimes in the U.S. occurs at work.
What actions have firms taken to deal with the growing threat of workplace violence?
Many firms have begun to hold focus groups for employee input, have hired managers with strong interpersonal skills, and employed skilled consultants to deal with the growing employee/management issue of workplace violence.

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