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

2. * * GOALS of ORGANIZED LABOR To work with fair and competent management. Be treated with human dignity. Receive a reasonable share of wealth in the work it generates. Employee - Management Issues LG1 12-2

3. * * 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. LG1 The Early History of Organized Labor Work weeks were 60+ hours, wages were low and child labor was rampant. 12-3

4. * * EMERGENCE of LABOR ORGANIZATIONS Knights of Labor -- First national labor union; formed in 1869. LG1 The Early History of Organized Labor Knights attracted 700,000 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 1886. 12-4

5. * * 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 1955. The AFL-CIO today has affiliations with 56 unions and about 10.5 million members. LG1 The Early History of Organized Labor 12-5

6. * * EFFECTS of LAWS on LABOR UNIONS Labor unions’ growth and influence has been very dependent on public opinion and law. 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. Collective Bargaining -- The process whereby union and management representatives form an agreement, or contract, for employees. LG2 Labor Legislation and Collective Bargaining 12-6

7. * * UNION SECURITY AGREEMENTS Closed Shop Agreement -- Specified workers had to be members of a union before being hired for a job. 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. Agency Shop Agreement -- Allows employers to hire nonunion workers who don’t have to join the union but must pay fees. LG3 Objectives of Organized Labor 12-7

8. * * 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. The Taft-Hartley Act of 1947 granted states the power to outlaw union shop agreements. 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. LG3 Objectives of Organized Labor 12-8

9. * * TACTICS USED in CONFLICTS Weapons used by labor unions include:  Strikes  Boycotts  Work Slowdowns  Pickets LG4 Tactics Used in Labor- Management Conflicts 12-9

10. * * TACTICS USED in CONFLICTS Weapons used by management include:  Lockouts  Injunctions  Strikebreakers LG4 Tactics Used in Labor- Management Conflicts 12-10

11. * * COMPENSATING EXECUTIVES Executive Compensation LG5 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. 12-11