Chapter twelve
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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

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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


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