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Chapter Twelve. Enhancing Union-Management Relations. The Historical Development of Unions. Early History Knights of Labor-utopian reformation Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society

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chapter twelve

Chapter Twelve

EnhancingUnion-Management Relations

the historical development of unions
The Historical Development of Unions
  • Early History
    • Knights of Labor-utopian reformation
      • Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society
      • Leaders wanted to change “the system”
      • Lost public favor after Haymarket riot of 1886 because workers didn’t dislike the system, they just wanted better treatment within it
      • Did not favor striking
the historical development of unions1
The Historical Development of Unions
  • American Federation of Labor (AFL)
    • Samuel Gompers-founder
    • goal of the union should be the those of its members, not those of its leaders.
    • goal: to improve members’ living standards
    • Used the strike as an effective labor weapon
    • Organized labor should play a part in politics
    • Members were skilled workers
organized labor today
Organized Labor Today
  • Union Membership
    • Approx. 14.5% of US workers belong to unions
    • AFL-CIO
      • The largest union with approx 13.1 million members
      • Includes actors, construction workers, carpenters, musicians, teachers, postal workers, firefighters, bricklayers, etc
    • Teamsters
      • Independent labor organization of professional drivers with approx 1.3 million members
    • United Auto Workers (UAW)
      • Represents employees in the automobile industry with approx 748,000 members
      • Part of AFL-CIO
organized labor today1
Organized Labor Today
  • Membership Trends- declined steadily since 1980
    • Heavily unionized industries have been decreasing or not growing as fast as non-unionized industries (steel vs hi-tech ind)
    • Largest employment growth is in service industries, which are typically not unionized
    • Companies are moving manufacturing to other (less unionized) countries and US regions
    • To entice better workers, management is providing benefits that reduce employee’s need for unionization
labor management legislation
Labor-Management Legislation
  • Fair Labor Standards Act (1938)
    • Set a minimum wage
    • Requires overtime rates for work in excess of 40 hours a week
    • Prohibits the use of child labor

Government on the side of workers

labor management legislation1
Labor-Management Legislation

Labor-Management Relations Act / Taft-Hartley Act (1947)

  • Defines refusal to bargain, harassment of non union workers, excessive union dues as unfair labor practices
  • Gives management right to post pros and cons of union membership during an organizing campaign
  • Presidential power to temporarily stop strikes that threaten national health and safety
  • Can work in unionized shop as a non unionized worker

Government on the side of business

who represents the workers
Who Represents the Workers
  • Bargaining Unit
    • The specific group of employees to be represented by the union
  • Jurisdiction
    • The right of a particular union to organize particular workers
      • like a police department\'s ability to arrest you. Cross county lines-new department must make the arrest.
    • When jurisdictions overlap or are unclear, employees may decide who will represent them
union management contract issues
Union-Management Contract Issues
  • Employee Pay
    • Forms of pay
      • Direct compensation: wages or salary
      • Deferred compensation: pension and retirement
    • Magnitude of pay
      • Parity with local and national industry pay levels
      • Real wage protection through cost-of-living clauses
      • Cost-sharing for benefits
union management contract issues1
Union-Management Contract Issues
  • Employee Pay
    • Pay determinants
      • Management seeks to tie wages to each employee’s productivity
      • Unions want pay according to seniority.
      • Management seeks to constrain benefits to only some employees to reward loyalty
      • Unions want equal application of benefits
union management contract issues cont d
Union-Management Contract Issues (cont’d)
  • Working Hours
    • Overtime
      • Time worked in excess of 40 hours in one week or in excess of eight hours in a single day
    • Special hourly rates for weekend or holiday work
    • The right of employees to refuse overtime
    • Premium pay for workers on less desirable shifts
    • Starting times (flex schedules)
    • Length of meal periods and work breaks
union management contract issues2
Union-Management Contract Issues
  • Management Rights
    • The firm wants to control whom it hires, how work is scheduled, how discipline is handled
    • Unions seek to control these matters and wants management to prove dismissal reasons, evenly distribute work and overtime
    • Some union executives have been given seats on corporate boards of directors
union negotiating tools
Union Negotiating Tools
  • Strikes-work stoppages
    • Picketing-public protesting
      • Employees hope to arouse public sympathy and encourage the public not to patronize the firm
      • Non-striking employees will honor the picket line and not report to work
      • Members of other unions will not cross the picket line to make deliveries or perform services
    • Wildcat strike
      • A strike not approved by the striker’s union
union negotiating tools1
Union Negotiating Tools
  • Slowdowns and Boycotts
    • Slowdown
      • Workers report to their jobs but work at a slower pace than normal
    • Boycott
      • A refusal to do business with a particular firm
      • Primary boycott: aimed at the employer directly involved in the dispute-work at Ford-don’t buy a Ford
      • Secondary boycott: aimed at a firm doing business with an employer involved in a labor dispute-work at Ford-don’t buy Firestone Tires
        • prohibited by the Taft-Hartley Act
management negotiating tools
Management Negotiating Tools
  • Lockouts and Strikebreakers
    • Lockout
      • A firm’s refuses to let employees enter the workplace - Work my way or don’t work at all
    • Strikebreaker
      • A nonunion employee who performs the job of a striking union member – Initially temporary but can become a permanent arrangement (scab)
negotiation middle ground
Negotiation Middle ground
  • Mediation and Arbitration
    • Mediation-informal go-between
      • The use of a neutral third party to assist management and the union during their negotiations
    • Arbitration-formal and binding
      • The use of a neutral third party to decide an issue when the two sides cannot agree