chapter 11 the future of business gitman & mcdaniel 5 th edition the future of business gitman...

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THE FUTURE OF BUSINESSGitman & McDaniel

5th Edition

THE FUTURE OF BUSINESSGitman & McDaniel

5th Edition

Chapter

11Understanding

Labor-Management RelationsUnderstanding

Labor-Management Relations

Prepared byDeborah Baker

Texas Christian University

Prepared byDeborah Baker

Texas Christian University

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2Ch

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1 What is the historical development of American labor unions?

2 What role did federal law play in the development of the union-management relationship?

3 What is the union organizing process?

4 What is the collective bargaining process, and what key issues are included in the union contract?

5 How do employees file a grievance?

6 What economic tactics do unions and employers use in labor-management conflicts?

7 What trends will affect American workers and labor-management relations?

Learning Goals


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Principles of Labor-Management Relations

An organization thatrepresents workers in

dealing with management over disputes involving

wages, hours, and working conditions

An organization thatrepresents workers in

dealing with management over disputes involving

wages, hours, and working conditions

Labor UnionLabor Union

The process of negotiatinglabor agreements that

provide for compensationand working arrangementsmutually acceptable to the union and to management

The process of negotiatinglabor agreements that

provide for compensationand working arrangementsmutually acceptable to the union and to management

Collective BargainingCollective Bargaining


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The Labor Relations Process

1. Union organizing1. Union organizing

2. Negotiating a labor agreement2. Negotiating a labor agreement

3. Day-to-Day administration of agreement

3. Day-to-Day administration of agreement


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What is the historical developmentof American labor unions?

What is the historical developmentof American labor unions?

Learning Goal 11


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Emergence of Unions and Collective Bargaining1

Congress ofIndustrial Organizations

Congress ofIndustrial Organizations 19351935

AFL-CIOAFL-CIO 1955 1955

American Federation of Labor

American Federation of Labor 18811881

Industrial unionsIndustrial unions

Merger of AFL and CIO

Merger of AFL and CIO

Craft unionsCraft unions


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The Labor Movement Today1

Collective bargaining

Worker relations / member services

AFL-CIOAFL-CIOAFL-CIOAFL-CIO

Local UnionsLocal UnionsLocal UnionsLocal Unions

National andNational andInternational UnionsInternational Unions

National andNational andInternational UnionsInternational Unions

Community / Political activities


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20031


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2 Learning Goal 2

What role did federal law playin the development of the

union-management relationship?


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2 The Legal Environment of Unions

Norris-LaGuardiaAct of 1932

Norris-LaGuardiaAct of 1932

The Anti-Injunction Act

Banned the use of injunctions to prevent strikes Made yellow-dog contracts unenforceable


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Wagner Act of 1935

Wagner Act of 1935

National Labor Relations Act

Encouraged the formation of unions and the use of collective bargaining

Provided a means for resolving disputes over union representation

Protected workers from unfair labor practices


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Taft-Hartley Act of 1947

Taft-Hartley Act of 1947

Labor-Management Relations Act

Defined unfair union practices Outlined the rules for dealing with strikes of major

economic impact Broadened employer options for dealing with

unions Further defined the rights of employees as

individuals


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A method of attempting to settle labor disputes

using a specialist as a “go-between.”


using a specialist as a “go-between.”

MediationMediation


using a specialist as a mediator.


using a specialist as a mediator.

ConciliationConciliation


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Landrum-Griffin Act of 1959

Landrum-Griffin Act of 1959

Labor-Management Reporting and Disclosure Act

Deals with the internal affairs of labor unions–Bill of rights for members

–Rules for electing union officials

–Safeguards to help make unions financially sound Requires that unions file annual financial reports


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3 Learning Goal 3

What is the union organizing process?


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3 Benefits Stressed by Unions

Often Stressed Seldom Stressed

Almost Always Stressed

Grievance procedures

Job security

Improved benefits

Higher pay

More influence in decision making

Better working conditions

Lobbying opportunities

Higher-quality products

Technical training

More job satisfaction

Increased production


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3Employer Arguments Against

Unionization An employee can come directly to management

You will pay monthly dues of $15 to $30

Merit-based decisions are better than seniority-based

Pay and benefits are similar to the industry’s leading firms

We meet all health and safety standards of OSHA

Performance and productivity are more important than union representation in determining pay raises


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3 Union Organizing Process


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4

What is the collective bargaining process, and what key issues are included in the

union contract?

Learning Goal 4


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4Process of Negotiating Labor

Agreements


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4 The Union Contract

Union SecurityUnion Security

Management RightsManagement Rights

WagesWages

Job BenefitsJob Benefits

Job SecurityJob Security

IssuesIssuescovered in the covered in the Union ContractUnion Contract

IssuesIssuescovered in the covered in the Union ContractUnion Contract


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4 Union Security

Agency ShopAgency Shop Does not require workers to join the union

Does not require workers to join the union

Open ShopOpen ShopWorkers can work at a unionized company without having to join

the union

Workers can work at a unionized company without having to join

the union

Union ShopUnion Shop Nonunion workers can be hired, but they must join the union

Nonunion workers can be hired, but they must join the union

Closed ShopClosed Shop Only union members can be hired Only union members can be hired


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4 Benefits

Higher wages for overtime, holiday work, and less desirable shifts

Insurance programs

Payment for certain nontime work

Pensions

Income-maintenance plans


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How do employees How do employees file a grievance?file a grievance?

How do employees How do employees file a grievance?file a grievance?

5 Learning Goal 5


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5

ArbitrationArbitration

The process of settling a labor-management dispute by having a

third party make a decision, which is binding on both the

union and the employer

The process of settling a labor-management dispute by having a

third party make a decision, which is binding on both the

union and the employer

GrievanceGrievanceA formal complaint, filed by the

employee or by the union, charging that management has violated the

contract

A formal complaint, filed by the employee or by the union, charging that management has violated the

contract

Grievance and Arbitration


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5

Step 1:Step 1:oral presentationoral presentation

Step 1:Step 1:oral presentationoral presentation

Step 3:Step 3:higher-level higher-level

grievance meetinggrievance meeting

Step 3:Step 3:higher-level higher-level

grievance meetinggrievance meeting

Step 4:Step 4:arbitrationarbitrationStep 4:Step 4:

arbitrationarbitration

Step 2:Step 2:grievance in writinggrievance in writing

Step 2:Step 2:grievance in writinggrievance in writing

Employee with grievance

The Grievance Procedure


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6

What economic tactics do unionsWhat economic tactics do unionsand employers use in and employers use in

labor-management conflicts?labor-management conflicts?

What economic tactics do unionsWhat economic tactics do unionsand employers use in and employers use in

labor-management conflicts?labor-management conflicts?

Learning Goal 6


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6Managing Labor-Management

Conflict

Strike

Boycott

Picketing

Corporate campaign

Union StrategiesUnion StrategiesUnion StrategiesUnion Strategies Employer StrategiesEmployer StrategiesEmployer StrategiesEmployer Strategies

Lockout

Strike replacements

Mutual-aid pact

Shift production


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7

What trends will affect What trends will affect American workers and American workers and

labor-management relations?labor-management relations?

What trends will affect What trends will affect American workers and American workers and

labor-management relations?labor-management relations?

Learning Goal 7


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Trends in Labor-Management Relations

7

Layoffs in several highly-unionized industry sectors Layoffs in several highly-unionized industry sectors

Shortages of skilled labor in the unionized craftsShortages of skilled labor in the unionized crafts

Effort to reverse the decline in union membershipsEffort to reverse the decline in union memberships

chapter 11 the future of business gitman & mcdaniel 5 th edition the future of business gitman...

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