Chapter Twelve Dealing with Employee-Management Issues and Relationships Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

ORGANIZED LABOR Unions -- Employee organizations whose main goal is to represent members in employee-management negotiations of job-related issues. Labor unions were responsible for:  Minimum wage laws  Overtime rules  Workers’ compensation  Severance pay  Child-labor laws  Job-safety regulations 12-2

PUBLIC SECTOR LABOR UNIONS Public sector union members work for governments as teachers, firefighters, police officers, etc. Many states face serious debt problems and want to cut labor costs. But states with public sector unions have limited ability to cut those costs. 12-3

GOALS OF ORGANIZED LABOR 12-4 To work with fair and competent management. To be treated with human dignity. To receive a reasonable share of wealth in the work it generates.

12-5 Labor Union History

HISTORY of ORGANIZED LABOR Craft Union -- An organization of skilled specialists in a particular craft or trade. As early as 1792, shoemakers in a Philadelphia craft union met to discuss fundamental work issues. Work weeks were 60+ hours, wages were low and child labor was rampant. 12-6

The FACTORY BLAZE that FIRED UP a MOVEMENT 12-7 On March 25, 1911, 146 women were killed in a fire at the Triangle Shirtwaist Company in New York City. The women were trapped by a door that was kept locked to prevent theft. Today labor leaders say that the Triangle fire is proof of why labor unions are crucial to maintaining workplace balance in the U.S.

EMERGENCE of LABOR ORGANIZATIONS Knights of Labor -- First national labor union; formed in Knights attracted close to 800,000 members but fell from prominence after a riot in Chicago. American Federation of Labor (AFL) -- An organization of craft unions that championed fundamental labor issues; formed in

INDUSTRIAL UNIONS Industrial Unions -- Labor unions of unskilled or semiskilled workers in mass production industries. Congress of Industrial Organizations (CIO) -- Union organization of unskilled workers; broke away from the AFL in 1935 and rejoined in

12-10 Labor Legislation

EFFECTS of LAWS on LABOR UNIONS Labor unions’ growth and influence has been very dependent on public opinion and law

EFFECTS of LAWS on LABOR UNIONS Pro-Labor Legislation

EFFECTS of LAWS on LABOR UNIONS Paved way for union growth The Norris-LaGuardia Act helped unions by prohibiting the use of Yellow-Dog Contracts - - A type of contract that required employees to agree to NOT join a union. Norris-La Guardia Act

EFFECTS of LAWS on LABOR UNIONS National Labor Relations Act (NLRA) Wagner Act Legal justification for union activities Collective Bargaining National Labor Relations Board Certification and Decertification

EFFECTS of LAWS on LABOR UNIONS Collective Bargaining -- The process whereby union and management representatives form an agreement, or contract, for employees

FORMING a UNION in the WORKPLACE The National Labor Relations Board (NLRB) was created to oversee labor-management issues and provide guidelines for unionization

FORMING a UNION in the WORKPLACE Certification -- The formal process by which a union is recognized by the NLRB as the bargaining agent for a group of employees. Decertification -- The process whereby employees take away a union’s right to represent them

EFFECTS of LAWS on LABOR UNIONS Pro-Management Legislation

EFFECTS of LAWS on LABOR UNIONS Labor-Management Relations Act Taft-Hartley Act (1947)

LABOR/MANAGEMENT AGREEMENTS Union Security Clauses -- Stipulate workers who reap union benefits must either join the union or pay dues to the union

UNION SECURITY AGREEMENTS Closed Shop Agreement -- Specified workers had to be members of a union before being hired for a job

UNION SECURITY AGREEMENTS Union Shop Agreement -- Declares workers don’t have to be members of a union to be hired but must agree to join the union within a specific time period. However… 12-22

UNION SECURITY AGREEMENTS The Taft-Hartley Act also granted states the power to outlaw union shop agreements. This led to the creation of the Agency Shop Agreement 12-23

UNION SECURITY AGREEMENTS Agency Shop Agreement -- Allows employers to hire nonunion workers who don’t have to join the union, but must pay fees

UNION SECURITY AGREEMENTS Also, because the Taft-Hartley Act granted states the power to outlaw union shop agreements, some states passed… 12-25

RIGHT-to-WORK LAWS Right-to-Work Laws -- Legislation that gives workers the right, under an open shop, to join or not to join a union, which created the… Open Shop Agreement -- Agreement in right-to- work states that gives workers the right to join or not join a union, if one exists in their workplace

STATES with RIGHT-to-WORK LAWS 12-27

LABOR / MANAGEMENT AGREEMENTS 12-28

LABOR/MANAGEMENT AGREEMENTS Negotiated Labor-Management Agreement (Labor Contract) -- Sets the terms under which labor and management will function over a period of time. The CBA 12-29

12-30 Using Mediation and Arbitration

USING MEDIATION and ARBITRATION Bargaining Zone -- The range of options labor and management have between initial and final contract offers that each side will consider before an impasse is reached

USING MEDIATION and ARBITRATION Mediation -- The use of a third party to encourage both sides to keep negotiating to resolve key contract issues. Arbitration -- An agreement to bring in a third party to render a binding agreement

Resolving Contract Disagreements Labor contracts outline labor and management’s rights and serves as a guide to workplace relations. Grievances -- A charge by employees that management isn’t abiding by the terms of the negotiated agreement. Shop Stewards -- Union officials who work permanently in an organization and represent employee interests on a daily basis

The GRIEVANCE RESOLUTION PROCESS 12-34

TACTICS USED in CONFLICTS Tactics used by labor unions include:  Strikes  Pickets  Work Slowdowns  Boycotts  Sickouts 12-35

STRIKES and BOYCOTTS Strikes -- A strategy in which workers refuse to go to work. Pickets Primary Boycott -- When a union encourages both its members and the general public to not buy the products of a firm in a labor dispute. Secondary Boycott -- An attempt by labor to convince others to stop doing business with a firm that’s not the subject of a primary boycott

UNION TACTICS USED in CONFLICTS  Sickouts 12-37

TACTICS USED in CONFLICTS Tactics used by management include:  Lockouts  Injunctions  Strikebreakers 12-38

LOCKOUTS, INJUNCTIONS and STRIKEBREAKERS Lockout -- An attempt by management to put pressure on workers by closing the business thus cutting off workers’ pay. Injunction -- A court order directing someone to do something or refrain from doing something. Strikebreakers -- Workers hired to do the work of striking workers until the labor dispute is resolved; called scabs by unions

CHALLENGES FACING LABOR UNIONS The percentage of union workers is falling. Many workers (like airline employees) have agreed to Givebacks -- Gains from labor negotiations are given back to management to help save jobs

LABOR UNIONS in the FUTURE Union membership will include more white-collar, female and foreign-born workers than in the past. Unions will take on a greater role in training workers, redesigning jobs and assimilating the changing workforce. Unions will seek more job security, profit sharing and increased wages

LABOR UNIONS BY STATE 12-42

UNION MEMBERSHIP by STATE LO 12-4

COMPENSATING EXECUTIVES CEO compensation used to be determined by a firm’s profitability or increase in stock price. Now, executives receive stock options and restricted stock that’s awarded even if the company performs poorly

COMPENSATING EXECUTIVES in the FUTURE Government and shareholders are putting pressure to overhaul executive compensation. Boards of directors are being challenged concerning executive contracts. Workers serve on the boards of directors of European companies 12-45

EQUAL PAY for EQUAL WORK Equal Pay Act Factors that Justify Pay Differences Skill Effort Responsibility Working Conditions 12-46

The QUESTION of PAY EQUITY Women earn 81% of what men earn. This disparity varies by profession, experience and level of education

The QUESTION of PAY EQUITY Comparable Worth Legislative proposal requiring that people in jobs requiring similar levels of education, training, or skills should receive equal pay 12-48

WHAT’S SEXUAL HARASSMENT Sexual Harassment -- Unwelcomed sexual advances, requests for sexual favors or other verbal or physical conduct that creates a hostile work environment

KINDS of SEXUAL HARASSMENT Quid pro quo sexual harassment involves threats like “Go out with me or you’re fired.” An employee’s job is based on submission. Hostile work environment sexual harassment is conduct that interferes with a worker’s performance or creates an intimidating or offensive work environment

SEXUAL HARASSMENT Sexual harassment laws cover men, women and foreign companies doing business in the U.S. Violations can be extremely expensive for businesses

CHILDCARE ISSUES The number of women in the workforce with children under three-years-old has increased. Childcare related absences cost businesses billions of dollars each year

BUSINESSES RESPONSE to CHILD CARE Benefits can include:  Discounts with childcare providers.  Vouchers that offer payment for childcare.  Referral services identify high-quality childcare facilities.  On-site childcare centers  Sick-child centers

FACING CHILDCARE ISSUES Who should pay for the cost of childcare - a dividing issue among employees and businesses, and in the workplace 12-54

INCREASING ELDER CARE CHALLENGES 29% of the adult population are providing some care to an elderly person. Care giving obligations cause employees to miss about 15 million days of work per year. Costs could rise up to $35 billion annually

ELDER CARE in the MODERN HOUSEHOLD More and more boomers are taking care of their parents while still working.  31% say that may delay their retirement.  The average cost of taking care of an aging parent is $5,534.  76% say they enjoy taking care of their parents.  54% say it made them closer. Source: Money, June

DRUG USE in the WORKPLACE Alcohol is the most widely used drug - 6.5% of full time employees are considered heavy drinkers. Over 8% of workers aged use illegal drugs and are more likely to be in workplace accidents. Drug abuse costs the U.S. economy $414 billion in lost work, healthcare costs and crime. Over 80% of major companies drug test workers

VIOLENCE in the WORKPLACE OSHA reports homicides account for 16% of workplace deaths. Violence is the number one cause of death for women in the workplace. Companies have taken action to deal with potential problems by using focus groups and other interactions