2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-2 CHAPTER SIX LABOR AND MANAGEMENT: GOALS, STRUCTURE, AND RIGHTS The previous two chapters have described the historical development and legal framework of the U.S. labor relations system. This chapter examines the structure and strategies used by labor unions and employers to achieve efficiency and/or equity and/or voice. Some strategies can involve mutual gains while others conflict. Balancing these conflicts is the central issue in labor relations and labor law.

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-3 LEARNING OBJECTIVES To understand….. The traditional U.S. union strategies (especially, business unionism, job control unionism, and the servicing model) and their alternatives (especially social unions, and the organizing model). The structure of unions and the labor movement in the United States. The range of possible management strategies toward labor unions and how they relate to human resources strategies and business strategies. The relative importance of property rights and labor rights in U.S. labor relations and why these competing human rights should be balanced.

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-4 LABOR GOALS AND STRATEGIES In considering union strategies, it is important to clearly distinguish between the scope and soul of employee representation. The scope of representation describes the breadth of the representational activities. The soul of representation captures how the representation is pursued or delivered, especially the extent of rank and file participation.

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-5 The Soul and scope of Employee Representation INSERT BOX 6.2

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-6 UNION STRATEGIES INSERT BOX 6.3

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-7 THE STRUCTURE OF THE U.S. LABOR MOVEMENT Union density is the fraction of workers who belong to or are covered by a union. Private sector density has declined since the 1950s, it is currently at 10%. Public sector density has hovered between 35 and 40% since 1980. In 2001 total number of workers covered by unions was 17,875,000, or 18.8% of all employed workers.

8. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-8 THE STRUCTURE OF THE U.S. LABOR MOVEMENT The range of union coverage differs across: Occupations Industries States There are significant regional differences in union membership. Differences in union densities can have important effects on bargaining power and labor relations.

9. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-9 U.S. Union Membership and Coverage, 2001 INSERT BOX 6.4

10. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-10 U.S. Union Contract Coverage by Industry, Occupation, and State Insert box 6.5

11. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-11 THE STRUCTURE OF THE U.S. LABOR MOVEMENT Most union members have the greatest contact with their local union. A local union may represent many workers from: A single workplace (industrial local) A single occupation from several workplaces (craft local) Multiple occupations in multiple industries (amalgamated local)

12. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-12 THE STRUCTURE OF THE U.S. LABOR MOVEMENT Craft and amalgamated locals are likely to have elected business agent to administer the contracts that have been negotiated with various employers. Most worksites also have one or more elected or appointed shop stewards who are the primary point of contact for most unionized employees. Steward’s most important responsibilities are processing grievances that have been filed within their work group. Local unions are governed by a president and executive committee who are democratically elected.

13. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-13 THE STRUCTURE OF THE U.S. LABOR MOVEMENT There are approximately 100 national unions in the U.S. Largest national unions are: National Education Association (NEA) Teamsters United Food and Commercial Workers (UFCW) Service Employees International Union (SEIU) American Federation of State, County, and Municipal Employees (AFSCME) NEA has over 2M members other unions have over 1M each. Some unions are called international because they have locals in Canada.

14. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-14 THE STRUCTURE OF THE U.S. LABOR MOVEMENT National unions have greater power than local unions. National unions charter locals and often have final authority over local actions. When bargaining with larger companies, the national union may directly handle collective bargaining. With smaller companies, a local union’s negotiating team will take the lead.

15. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-15 The Structure of the U.S. Labor Movement INSERT BOX 6.6

16. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-16 UNION DEMOCRACY Since providing voice is one of the primary roles of labor unions, it is imperative that unions are democratic. Democracy in unions is also championed on the belief that democratic unions are more effectively representing their members. Union democracy can be analyzed along three dimensions: Procedural (the extent of democratic procedures within unions, such as free speech). Behavioral (the extent that behaviors within unions support democracy, such as voting rates). Substantive (the extent to which the union leadership is responsive to the wishes of the rank and file ).

17. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-17 THE STRUCTURE OF THE U.S. LABOR MOVEMENT Historically, it has been easy to distinguish between national craft unions representing Workers in a single craft (ex: United Brotherhood of Carpenters) and national industrial unions representing all workers in a single industry (e: United Auto Workers) Today, many unions currently represent a very diverse set of occupations and industries. Today’s unions can be better described as a general union, rather that a craft or industrial union. Today there are questions whether national unions are responsive to needs of members. Or whether competition, rival unionism, might lead to better contracts through more aggressive bargaining.

18. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-18 AFL-CIO Most U.S. national unions, including internationals, are affiliated with the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO). The AFL-CIO plays an important leadership role in the direction and coordination of the U.S. labor movement. The AFL-CIO is a support organization whose main functions are: Political lobbying Research Education

19. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-19 AFL-CIO STRUCTURE INSERT BOX 6.7

20. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-20 MANAGEMENT GOALS AND STRATEGIES The goal of business is to provide products and services that meet some demand. Business strategies are developed In order to achieve business goals. Business strategies are often divided into two general types: Cost leadership Strategies (emphasizing low cost) Differentiation strategies (emphasizing product quality and features) To pursue a business strategy, management designs a functional strategy that includes a human resource strategy whose bottom line is effectiveness and efficiency.

21. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-21 MANAGEMENT GOALS AND STRATEGIES Human resource strategies can be divided into three categories: Strategies to minimize labor costs Strategies to develop and reward employees. Strategies that incorporate employees into decision making as strategic partners. The three categories of HR strategies are associated with three overall patterns or cultures of corporate HR/IR systems: Confrontational Professional Embracing

22. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-22 Managerial Goals and Strategies Insert BOX 6.8

23. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-23 MANAGEMENT GOALS AND STRATEGIES Within the three broad patterns of there are two possible management attitudes towards labor unions: Union avoidance-The extent that management works towards remaining nonunion, or becoming nonunion if unionized. Union avoidance tactics can involve either union suppression or union substitution. Union acceptance-The extent that management accepts, perhaps begrudgingly, the presence of a union, or drive to establish a union.

24. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-24 UNION AVOIDANCE TACTICS

25. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-25 CONFLICTING GOALS MEANS BALANCING RIGHTS A major theme of labor relations is striking a balance between the conflicting goals of labor and management. How do we judge if the U.S labor relations system is working? Labor evaluates a system based on the degree to which equity and voice are achieved. Management focuses on efficiency.

26. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-26 CONFLICTING GOALS MEANS BALANCING RIGHTS At a fundamental level, the issue comes down to rights. The rights of business are primarily property rights. Historically, property rights emphasized private property as a fundamental freedom against coercive governments (loss of liberty). Modern economic and legal view is that property rights are bundles of rights that are essential for economic efficiency and development.

27. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-27 ARE LABOR RIGHTS HUMAN RIGHTS? Human rights can be traced back to various early religious and moral philosophical traditions, including all of the major religions, which “share a universal interest in addressing the integrity, worth, and dignity of all persons, ad consequently, the duty toward other people.” The prime foundation of human rights is the belief that there are basic rights that everyone is entitled to simply by being human. Created in (1919), the International Labor Organization (ILO) sought to address the issue of human rights of labor, recognizing that positive economic and social rights in which governments have a responsibility for ensuring adequate standards of living including employment opportunities, income, housing, medical care, safety, and education.

28. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-28 EXCERPTS FROM THE EIGHT FUNDAMENTAL CONVENTIONS OF THE INTERNATIONAL LABOR ORGANIZATION Freedom of Association Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87) Right to Organize and Collective Bargaining Convention, 1949 (No. 98) Abolition of Forced Labor Forced Labor Convention, 1930 (No. 29) Abolition of Forced Labor Convention, 1957 (No. 105) Equality Discrimination (Employment and Occupation) Convention, 1958 (No. 111) Equal Remuneration Convention, 1951 (No. 100) Elimination of Child Labor Minimum Age Convention, 1973 (No. 138) Worst Forms of Child Labor Convention, 1999 (No. 182)

29. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-29 ARE LABOR RIGHTS HUMAN RIGHTS? The basic dimensions of workplace equity and voice are recognized worldwide as human rights. Human dignity and freedom are violated if people are not able to maintain a minimal standard of living and are subjected to onerous working hours in dangerous and unhealthy conditions. Due process protections against arbitrary and discriminatory discipline and discharge are essential for human dignity. Denying workers the freedom of association, “denies individuals what they need to live-a fully human life”-human dignity-and undermines democracy-freedom. Strong arguments can be made that equity and voice are human rights.

30. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-30 ARE LABOR RIGHTS HUMAN RIGHTS? But what happens when property rights conflict with labor rights? Property and labor rights are both human rights No accepted hierarchy so they should be balanced Balancing property rights and labor rights is a key theme in labor relations The labor relations processes try to balance property and labor rights The NLRB tries to balance property and labor rights in its decisions Watch for this theme throughout the rest of the course