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Chapter 8. Administrative Issues . Job Security and Seniority. Technological Change. Contract Negotiations and Administration. Accommodating Disabilities. Employee Training. Safety and Health. Work Restructuring. Administrative Issues. Technology and Job Protection.

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chapter 8

Chapter 8

Administrative Issues

administrative issues

Job Security and Seniority

Technological Change

Contract Negotiations and Administration

Accommodating Disabilities

Employee Training

Safety and Health

Work Restructuring

Administrative Issues

MGMT 523 – Chapter 8

technology and job protection
Technology and Job Protection
  • Technological Change
    • Involves the introduction of labor-saving machinery
    • Is a non-mandatory bargaining issue
  • Automation
    • Machines and automatic controls displace humans who formerly did the same work.
    • Alters job characteristics and required skills

MGMT 523 – Chapter 8

the union s role
The Union’s Role
  • Negotiate contract language
  • Lobby for or against government regulation and assistance programs
  • Provide direct services to members to assist them in adjusting to or coping with change
  • Become voluntarily involved in the technology selection process

MGMT 523 – Chapter 8

technological change

Higher productivity

The elimination of menial and dangerous jobs

Higher wages and better working conditions

Shorter hours

Increased skill levels


Elimination and deskilling of jobs

Displaces intellectual skills

Higher capital investment

Market oversupply

Increases the capability for monitoring

Technological Change

MGMT 523 – Chapter 8

job security and personnel changes

Job Content

Job Assignment

Job Security Work Rules


Working Hours



Job Security and Personnel Changes

MGMT 523 – Chapter 8

warn act of 1988
WARN Act of 1988
  • Covers employers with 100 or more employees
  • Requires 60 days’ advance notice of plant closing or major layoff
  • Exempts firms in financial collapse and unforeseen operational difficulties
  • Employees and unions must sue their employer to recover damages

MGMT 523 – Chapter 8

subcontracting outsourcing
  • Contracting work to an outside vendor
  • Not a mandatory bargaining issue when:
    • It is motivated solely by economic conditions
    • It is a common method of business in the industry
    • It follows previous similar subcontracting practices
    • It has no adverse impact on current bargaining-unit employees
    • The union has been given the opportunity to bargain over changes in subcontracting practices

MGMT 523 – Chapter 8

management s right to subcontract
Management’s Right to Subcontract
  • Presence and clarity of labor contract language
  • Established past subcontracting practices
  • History of prior subcontracting negotiations
  • The intended duration of the decision
  • Employer’s business justification
  • Evidence of union animus in the subcontracting decision

MGMT 523 – Chapter 8

work relocation
Work Relocation
  • Employers not obligated to bargain if:
    • Performance is significantly different from the previous location
    • Labor costs were not a factor in decision
    • The union could not have offered significant labor cost concessions
  • Duty to bargain over the effects
    • Transfer rights, severance pay, pension rights

MGMT 523 – Chapter 8

jurisdictional disputes
Jurisdictional Disputes
  • Two or more unions representing different bargaining units claim work
  • Workers claim work that should be rightfully their work has been assigned outside the bargaining unit
  • Workers within the bargaining unit disagree over work assignment

MGMT 523 – Chapter 8

seniority and personnel changes
Seniority and Personnel Changes
  • An employee’s continuous service with the firm.
  • Used to apportion out rights unrelated to job performance
  • Super-seniority

MGMT 523 – Chapter 8

legal issues involving seniority
Legal Issues Involving Seniority
  • Bona fide seniority systems are permitted
  • Can be awarded retroactively
  • Permitted in layoffs where the layoff may or does adversely impact minorities
  • Reverse discrimination claims are invalid if the affirmative action plan:
    • Is a negotiated settlement between the union and employer
    • Does not harm majority employees

MGMT 523 – Chapter 8

alternatives to layoffs
Pay freezes

Pay cuts

Work rule changes

New products

Normal attrition

Hiring freezes

Voluntary leave

Early retirement

Working hours reduction

Rotating layoffs

Work relocation

Work sharing

Alternatives to Layoffs

MGMT 523 – Chapter 8

types of employee training
Types of Employee Training
  • Formal Programs
    • Apprenticeships
    • New employee orientation
    • Safety and health
    • Basic skills
    • Job-specific skills
    • Workplace practices
  • Informal Training
    • On-the-job
    • Mentoring

MGMT 523 – Chapter 8

work restructuring
Work Restructuring
  • Employee involvement
  • Worker participation
  • Cross-training
  • Multiskilling
  • Self-managed work teams

MGMT 523 – Chapter 8

safety and health
Safety and Health
  • Factors prompting the inclusion in labor agreements:
    • The standards and provisions of OSHA
    • Emergence of new biological, ergonomic, and chemical hazards in the workplace
    • Rising health-care treatment costs
    • Increases in legal claims by injured workers

MGMT 523 – Chapter 8

  • Reasonable Accommodation
    • Requires employers to make adjustments to job for qualified persons
    • Cannot conflict with other employees’ seniority rights
    • Does not require the lowering of behavior or performance standards

MGMT 523 – Chapter 8