Union/Management Relations Chapter 12 © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–1

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–2 Nature of Unions UnionUnion  A formal association of workers that promotes the interests of its members through collective action. Why Employees UnionizeWhy Employees Unionize  They are dissatisfied with how they are treated by their employers.  They believe that unions can improve their work situations.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–3 FIGURE 16–1 Factors Leading to Employee Unionization

Why Employees Join Unions Dissatisfaction with managementDissatisfaction with management Social outletSocial outlet Opportunity for leadershipOpportunity for leadership Forced unionizationForced unionization Peer pressurePeer pressure 12-4

Dissatisfaction With Management CompensationCompensation Job securityJob security Management attitudeManagement attitude 12-5

Social Outlet Many people have strong social needsMany people have strong social needs Unions sponsor recreational and social activitiesUnions sponsor recreational and social activities People who develop close personal relationships will likely stand together in difficult timesPeople who develop close personal relationships will likely stand together in difficult times 12-6

Opportunity for Leadership Some individuals aspire to leadership rolesSome individuals aspire to leadership roles Can often satisfy those aspirations through union membershipCan often satisfy those aspirations through union membership Union also has hierarchy of leadershipUnion also has hierarchy of leadership Begins with union stewardBegins with union steward 12-7

Forced Unionization In 27 states without right-to-work laws, it is legal for employer to agree with union that new employee must join union after certain period of time (generally 30 days) or be terminatedIn 27 states without right-to-work laws, it is legal for employer to agree with union that new employee must join union after certain period of time (generally 30 days) or be terminated Called a union shop agreementCalled a union shop agreement 12-8

Peer Pressure Some join a union because they are urged to do so by other workersSome join a union because they are urged to do so by other workers Peers may constantly remind employee that he or she is not a member of unionPeers may constantly remind employee that he or she is not a member of union In extreme cases, union members have threatened nonmembers with physical violence, and have sometimes carried out these threatsIn extreme cases, union members have threatened nonmembers with physical violence, and have sometimes carried out these threats 12-9

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–10 Nature of Unions (cont’d) Why Employers Resist UnionsWhy Employers Resist Unions  Unionization constrains what managers can and cannot do in a number of areas.  Unionization can result in higher wages and benefits.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–11 FIGURE 16–8 Weekly Earnings of Union and Nonunion Workers Source: Bureau of Labor Statistics, “Union Members Summary,” January 22, 2010.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–12 FIGURE 16–2 Union Membership as a Percentage of the U.S. Civilian Workforce Source: U.S. Department of Labor, Bureau of Labor Statistics, 2010.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–13 FIGURE 16–3 Union Membership by Industry Source: U.S. Department of Labor, Bureau of Labor Statistics, 2010.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–14 Reasons for U.S. Union Membership Decline Causes of Membership Decline Geographic Changes Industrial Changes Workforce Changes

Unions Today Percent of wage and salary workers who are members of a union is 11.8%Percent of wage and salary workers who are members of a union is 11.8% 7.6 million public sector employees belonged to union, compared with 7.2 million union workers in private sector7.6 million public sector employees belonged to union, compared with 7.2 million union workers in private sector 12-15

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–16 U.S. and Global Differences in Union-Management Relations Key Differences Focus on Economic Issues Organization by Job and Employer Collective Agreements as “Contracts” Competitive Relations

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.16–17 Unions Globally Union membership is falling in advanced countries.Union membership is falling in advanced countries.  High unemployment is creating pressure for change. In some countries, unions are closely tied to political parties.In some countries, unions are closely tied to political parties. Child labor is an issue in some countries.Child labor is an issue in some countries. Co-determinationCo-determination  A practice whereby union or worker representatives are given positions on a firm’s board of directors.

A Global Perspective: Labor Unrest in China ACFTU has begun to put pressure on foreign-invested enterprises to establish unions and sign collective contractsACFTU has begun to put pressure on foreign-invested enterprises to establish unions and sign collective contracts Two years after strikes and suicides that rocked manufacturers in China, labor problems are again occurring. Strikes appear to be occurring dailyTwo years after strikes and suicides that rocked manufacturers in China, labor problems are again occurring. Strikes appear to be occurring daily