12 * * * * * Dealing With Employee- Management Issues and

12 * * * * * Dealing With Employee- Management Issues and
Relationships * CHAPTER 12 Nickels McHugh McHugh * * 1-1 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

U.S. Workers Unionized Also available on a Transparency Acetate
See Learning Goal 1: Trace the history of organized labor in the United States. U.S. Workers Unionized This slide presents what percent of wage and salary workers in the U.S. are union members. The membership rate has declined from a high of 20.1 percent in 1983 to the lowest level of 12.5 percent in 2005. Share with students some interesting highlights from the 2005 data: The 12.5 percent represents nearly 15.7 million wage and salary workers. Black workers were more likely to be a union members than were white, Asian, or Hispanic workers. Men were more likely to be union members than women. Public sector workers had a union membership rate more than four times that of private-sector. (Source: Bureau of Labor Statistics News, January 20, 2006) Source: Bureau of Labor Statistics News, January 20, 2006

A. The Early History of Organized Labor
I. EMPLOYEE-MANAGEMENT ISSUES II. LABOR UNIONS FROM DIFFERENT PERSPECTIVES Learning goal 1 Trace the history of organized labor in the United States. A. The Early History of Organized Labor Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

C. Mediation and Arbitration
III. LABOR LEGISLATION AND COLLECTIVE BARGAINING Learning goal 2 Discuss the major legislation affecting labor unions. A. Objectives of Organized Labor Learning goal 3 Outline the objectives of labor unions. B. Resolving Labor-Management Disagreements C. Mediation and Arbitration Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

TACTICS USED IN LABOR-MANAGEMENT CONFLICTS Learning goal 4
Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. A. Union Tactics B. Management Tactics C. The Future of Unions and Labor-Management Relations Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

CONTROVERSIAL EMPLOYEE-MANAGEMENT ISSUES
Learning goal 5 Explain some of today’s controversial employee–management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. A. Executive Compensation B. Pay Equity C. Sexual Harassment D. Child Care E. Elder Care F. Drug Testing G. Violence in the Workplace Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

CONTROVERSIAL EMPLOYEE-MANAGEMENT ISSUES Learning goal 5
Explain some of today’s controversial employee–management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. A. Executive Compensation B. Pay Equity C. Sexual Harassment D. Child Care E. Elder Care F. Drug Testing G. Violence in the Workplace Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

I. EMPLOYEE-MANAGEMENT ISSUES
The relationship of employees and their managers has always been affected by certain issues. The text presents several of the KEY EMPLOYEE-MANAGEMENT ISSUES: executive compensation, pay equity, child care and elder care, ESOPs, and other employee-management issues. These issues must be worked out through open discussion, goodwill, and compromise. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

A UNION is an employee organization that has the main goal of representing members in employee-management bargaining over job-related issues. Workers originally formed unions to protect themselves from intolerable working conditions and unfair treatment. Labor unions are largely responsible for minimum wage laws, child-labor laws, and other significant worker benefits. However, in the 1990s and early 2000s, unions failed to regain their previous power, and membership declined. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

The decline may be due to the successful achievement of objectives.
Workers originally formed unions to protect themselves from intolerable working conditions and unfair treatment. Labor unions are largely responsible for minimum wage laws, child-labor laws, and other significant worker benefits. However, in the 1990s and early 2000s, unions failed to regain their previous power, and membership declined. REASONS FOR UNION DECLINE: Some suggest that global competition, the shift to a service economy, and changes in management philosophy have caused the decline. The decline may be due to the successful achievement of objectives. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

LABOR UNIONS FROM DIFFERENT PERSPECTIVES Learning goal 1
Trace the history of organized labor in the United States. Your opinion about unions usually depends upon which side of the management fence you are on. Most historians generally do agree on the reason unions were started in the first place. The INDUSTRIAL REVOLUTION moved workers out of the field and into the factories. Workers learned that STRENGTH THROUGH UNITY (unions) could lead to improved job conditions, better wages, and job security. But some argue that organized labor has become a large industrial entity in itself and the real issue of protecting workers has become secondary. Critics also argue the current legal system and management philosophy reduce the risk that sweatshops will reappear. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

History of Labor Unions
Craft Union Organized Knights of Labor AFL Organized Industrial unions CIO Organized AFL/CIO See Learning Goal 1: Trace the history of organized labor in the United States. See text pages:

C. THE EARLY HISTORY OF ORGANIZED LABOR
As early as 1792, CORDWAINERS (shoemakers) met to discuss labor issues in Philadelphia. The cordwainers were a CRAFT UNION that is, an organization of skilled workers in a particular craft or trade. A craft union usually met to achieve a specific goal and then disbanded. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Objectives of Organized Labor
1970s- Pay/Benefits 1980s- Job Security & Union Recognition 1990s-2000s- Job Security/ Global Competition See Learning Goal 3: Outline the objectives of labor unions. See text pages:

The Industrial Revolution changed the economic structure of the U.S.
As the Industrial Revolution intensified, the problems were NO LONGER SHORT-TERM. Workers who failed to produce lost their jobs. Wages were low, child labor existed, and unemployment benefits were nonexistent. There was a need for an organization that would attack LONG-TERM PROBLEMS such as child labor and subsistence wages. The first national labor organization was the KNIGHTS OF LABOR formed by URIAH SMITH STEPHENS in 1869. It included employers as well as workers, and promoted social, labor, and economic causes. After they were blamed for the Haymarket Square bombing in 1886, the Knights of Labor fell from prominence. The AMERICAN FEDERATION OF LABOR (AFL) was formed in 1886 under the leadership of SAMUEL GOMPERS. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Membership in the CIO soon rivaled that of the AFL.
The AFL, a federation of MANY INDIVIDUAL CRAFT UNIONS, championed fundamental labor issues. An unauthorized committee in the AFL began to organize workers in INDUSTRIAL UNIONS, organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining. When the AFL rejected these unions, JOHN LEWIS, president of the UNITED MINE WORKERS UNION, formed a new, rival organization. The CONGRESS OF INDUSTRIAL ORGANIZATIONS (CIO), a union organization of unskilled workers, broke off from the AFL in 1935. Membership in the CIO soon rivaled that of the AFL. The AFL and CIO struggled for power in the labor movement until the TWO ORGANIZATIONS MERGED in 1955 under the leadership of GEORGE MEANY. The AFL-CIO now has affiliations with 53 labor unions and has 9 million members. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Why Employees Join Unions Why Employees Don’t Join Unions
Union Involvement Why Employees Join Unions Pro-union attitudes Poor management/ employee relations Negative organizational climate Poor work conditions Union’s reputation Job security Why Employees Don’t Join Unions Anti-union attitude Good management/ labor relations Positive organizational climate Good work conditions Union’s reputation Peer pressure Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

III. LABOR LEGISLATION AND COLLECTIVE BARGAINING Learning goal 2
Discuss the major legislation affecting labor unions. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

The NORRIS-LA GUARDIA ACT paved the way for union growth.
The growth and influence of organized labor in the U.S. has depended on two major factors: the LAW and PUBLIC OPINION. The NORRIS-LA GUARDIA ACT paved the way for union growth. It prohibited employees from using contracts that forbid union activities. A YELLOW-DOG CONTRACT is a type of contract that requires employees to agree as a condition of employment not to join a union. The NATIONAL LABOR RELATIONS ACT (or WAGNER ACT) provided legal justification for union activities. COLLECTIVE BARGAINING is the process whereby union and management representatives form a labor-management agreement, or contract, for workers. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

The Wagner Act expanded labor’s right to collectively bargain.
The Act also established the NATIONAL LABOR RELATIONS BOARD (NLRB), to oversee labor-management relations. CERTIFICATION is the formal process whereby a union is recognized by the NLRB as the bargaining agent for a group of employees. DECERTIFICATION is the process by which workers take away a union’s right to represent them. The Wagner Act provided clear procedures for both. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Legislation & Collective Bargaining
Norris-La Guardia Act National Labor Relations Act Fair Labor Standards Act Labor-Management Relations Act Labor-Management Reporting and Disclosure Act See Learning Goal 2: Discuss the major legislation affecting labor unions. See text pages: 325

OBJECTIVES OF ORGANIZED LABOR Learning goal 3
Outline the objectives of labor unions. Union objectives change over time due to shifts in social and economic trends. In the 1970s, the primary objective of labor unions was ADDITIONAL PAY AND BENEFITS. Throughout the 1980s, objectives shifted to JOB SECURITY and UNION RECOGNITION. The 1990s and early 2000s also focused on job security, but the biggest issue is GLOBAL COMPETITION. The AFL-CIO opposed the North Atlantic Free Trade Association (NAFTA) in 1994 and the Central American Free Trade Agreement (CAFTA) fearing union workers would lose jobs to nations with LOWER LABOR COSTS. Both agreements passed and were signed by the President. The NEGOTIATED LABOR-MANAGEMENT AGREEMENT (the labor contract) sets the tone and clarifies the terms under which management and labor agree to function over a period of time. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Organized Labor Issues
Union Security Clauses Closed Shop Union Shop Agency Shop Right-To-Work Laws & Open Shop See Learning Goal 3: Outline the objectives of labor unions. See text pages:

COMMON ISSUES IN LABOR-MANAGEMENT AGREEMENTS:
A UNION SECURITY CLAUSE is a provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either join or pay dues to the union. A CLOSED-SHOP AGREEMENT is a clause that specified workers had to be members of a union before being hired. (This was outlawed by the Taft-Hartley Act in 1947). Under the UNION SHOP AGREEMENT , workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed time. Under the AGENCY SHOP AGREEMENT employers may hire nonunion workers; employees are not required to join the union but must pay a union fee. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

The Taft-Hartley Act gave states the right to pass right-to-work laws.
Twenty-two states have passed RIGHT-TO-WORK LAWS that give workers the right, under an open shop, to join or not join a union if it is present. An OPEN SHOP AGREEMENT is an agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace. Future labor negotiations will include issues such as child and elder care and immigration policies. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

RESOLVING LABOR-MANAGEMENT DISAGREEMENTS
The negotiated agreement becomes the basis for union-management relations. Labor and management do not always agree on the interpretation of the labor-management agreement. If such a disagreement cannot be resolved, a grievance may be filed. A GRIEVANCE is a charge by employees that management is not abiding by the terms of the negotiated labor agreement. The vast majority of grievances are resolved by shop stewards. SHOP STEWARDS are union officials who work permanently in an organization and represent employee interests on a daily basis. MEDIATION AND ARBITRATION Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

RESOLVING LABOR-MANAGEMENT DISAGREEMENTS MEDIATION AND ARBITRATION
The BARGAINING ZONE is the range of options between the initial and final offers that each party will consider before negotiations dissolve or reach an impasse. If negotiations don’t result in an alternative within this bargaining zone, mediation may be necessary. MEDIATION is the use of a third party, called a mediator, who encourages both sides to continue Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

negotiating and often makes suggestions for resolving the dispute.
The mediator makes SUGGESTIONS not DECISIONS , for settling the dispute. The National Mediation Board provides federal mediators when requested by both sides. ARBITRATION is the agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute. Many negotiated labor-management agreements call for the use of an arbitrator in disputes. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Union Tactics Strike Cooling-off Period Boycott Primary Secondary
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. See text pages:

IV. TACTICS USED IN LABOR-MANAGEMENT CONFLICTS Learning goal 4
Describe the tactics used by labor and management during conflicts and discuss the role of unions in the future. Both sides use specific tactics if labor and management reach an impasse in collective bargaining. UNION TACTICS The strike has always been the most powerful tactic unions use to achieve their objectives. A STRIKE is a union strategy in which workers refuse to go to work; the purpose is to further workers’ objectives after an impasse in collective bargaining. Strikes can slow down or stop operations in a company. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Strikers may also picket, or walk around outside the firm carrying signs and talking with the public about the issues in the labor dispute. Strikes have lead to resolution of labor disputes, but have also generated violence and residual bitterness, such as happened after the United Auto Workers strike against Caterpillar in the 1990s. The public often realizes how important a worker is when he or she goes on strike. Many states prohibit job actions by state workers even though they can unionize. Often police, teachers, or others engage in SICKOUTS (or the BLUE FLU) when union members don’t strike but refuse to come to work on the pretext of illness. Employees of the federal government can organize unions but cannot strike. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Under the provisions of the Taft-Hartley Act, the President can request a cooling-off period to prevent a strike in a critical industry. In a COOLING-OFF PERIOD workers in a critical industry return to their jobs while the union and management continue negotiations. Cooling-off periods, which can last up to 80 days, have been ordered for American Airlines pilots in 1997 and West-coast dockworkers in 2002. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

SOCIAL ATTITUDES also affect the likelihood of a strike.
Very FEW LABOR DISPUTES LEAD TO A STRIKE but it still remains a powerful weapon. SOCIAL ATTITUDES also affect the likelihood of a strike. After President Reagan fired striking air traffic controllers in 1981, other unions became hesitant to strike. The strike by the Major League Players Association in 1994 was unpopular. UPS workers, however, had public support for their strike in 1997, encouraging other unions to use the strike option. PRIMARY AND SECONDARY BOYCOTTS. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

PRIMARY AND SECONDARY BOYCOTTS.
A PRIMARY BOYCOTT is when a union encourages both its membership and the general public not to buy the products of a firm involved in a labor dispute. A SECONDARY BOYCOTT is an attempt by labor to convince others to stop doing business with a firm that is the subject of the primary boycott. Labor unions can legally authorize PRIMARY boycotts, but the Taft-Hartley Act prohibits the use of SECONDARY boycotts. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

To get an injunction, management must show “just cause.”
MANAGEMENT TACTICS A LOCKOUT (rarely used today) is an attempt by management to pressure on unions by temporarily closing the business. However, lockouts have been used against West-coast dockworkers and NBA players. Management most often uses injunctions and strikebreakers to defeat labor demands. An INJUNCTION is a court order directing someone to do something or refrain from doing something. Management can seek injunctions to order striking workers back to work or limit the number of pickets. To get an injunction, management must show “just cause.” 1945 (35.5%) to 12.5% today Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

THE FUTURE OF LABOR-MANAGEMENT RELATIONS
MANAGEMENT TACTICS The use of STRIKEBREAKERS workers who are hired to do the jobs of striking workers until the labor dispute is resolved, has been a source of hostility in labor relations. THE FUTURE OF LABOR-MANAGEMENT RELATIONS New labor-management issues have emerged. Many unions have even granted concessions or GIVEBACKS concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs. The unionized share of the workforce has DECLINED from its peak in 1945 (35.5%) to 12.5% today Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Unions are targeting women in relatively low-paying fields.
The largest labor union in the U.S. is the NATIONAL EDUCATION ASSOCIATION (NEA) with 2.7 million members. To grow, unions will have to expand BROADEN THE TYPE OF WORKERS they represent. Unions are targeting women in relatively low-paying fields. In order for U.S. firms to remain competitive with foreign firms, unions are likely to assume a role in maintaining competitiveness in the face of increased global competition. Unions have taken on NEW ROLES helping management in training workers and redesigning jobs. In exchange for cooperating with management, unions may receive improved job security, profit sharing, or higher wages. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

CONTROVERSIAL EMPLOYEE-MANAGEMENT ISSUES Learning goal 5
Explain some of today’s controversial employee-management issues such as executive compensation, pay equity, child care and elder care, AIDS testing, and violence in the workplace, and employee stock ownership plans (ESOPs). EXECUTIVE COMPENSATION The U.S. free market system was built using incentives such as large salaries for performance. However, today government, boards of directors, stockholders, unions, and employees have argued that executive compensation is GETTING OUT OF LINE. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Equal Pay Act Based On… Skill Effort Responsibility Working Conditions
Establishment See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Equal Pay Act Based On…, This slide presents the Equal Pay Act factors: skill, effort, responsibility, working conditions, and establishment. Equal pay act prohibits unequal pay to men and women who perform jobs that require substantially the same skills, efforts, responsibilities, etc. Ask the students – Is it fair to receive different pay for different gender? (Most will say “NO.”) Yet, in the U.S., women earn about 80% of what men earn, though there are significant disparities by profession, education level, etc.

In 2004, the average total compensation for a CEO was $36 million.
Even after adjustments for inflation, this is an enormous increase over time. In the past, an executive’s compensation and bonuses were determined by the FIRM’S PROFITABILITY or INCREASE IN STOCK PRICE. The assumption is that the CEO will improve the performance of the company and raise the price of the firm’s stock. Today, many executives receive STOCK OPTIONS (the ability to buy the company stock at a set price at a later date) or RESTRICTED STOCK (issued directly to the CEO.) Stock options account for 57% of CEO compensation. Restricted stock adds 22% The problems arise when executives are handsomely compensated, even when the company doesn’t do well. Poor executives can often leave the company yet still receive huge monetary benefits. The late management consultant Peter Drucker suggested that CEOs should not earn much more than 20 TIMES as much as the company’s lowest-paid employee. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Many executives guide their companies to prosperity.
Some companies (such as the firm of Herman Miller) followed his advice, but many have not. Today, the average chief executive of a major corporation makes TIMES THE PAY OF AN AVERAGE HOURLY WORKER. Global comparisons: American CEOs earn two to three times as much as executives in Europe and Canada. In Europe, workers account for 50% of the seats on the board of directors according to a process called CO-DETERMINATION. The U.S. public is now pressing for full disclosure concerning executive compensation. However, most U.S. executives are responsible for multibillion-dollar corporations and work 70+ hours a week. Many executives guide their companies to prosperity. Good CEOs are a scarce commodity. equal pay. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Grievance Resolution Process
See Learning Goal 3: Outline the objectives of labor unions. See text page: 331

Executive $ In 2005, CEOs of 500 biggest companies received an aggregate 6% pay raise. Average paycheck in 2005: $10.9 million Top 3 earners in 2005: Richard Fairbanks, Capital One Financial, $249.3 million Terry Semel, Yahoo!, $231 million Henry Silverman, Cendant, $140 million Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Executive $ This slide presents the top three CEO paychecks for 2005. The aggregate raise for 2005 was 6% for the CEOs of the 500 biggest US companies. This compares to a raise of 54% they received in 2004. Share the following interesting insights with students: Average paycheck for these CEOs was a little less than a $1 million per month. The CEO who delivered the most value for the money: John Bucksbaum, General Growth Properties. Pay: 624,000 per year over last 6 years while delivering 37% annual return to shareholders. (Source: Forbes, April 20, 2006) 4. Ask the students – What do they expect to make when they graduate? Are this CEO pay worth it? (The answer for whether it is worth it should be tied to the performance of the company.) Source: Forbes, April 20, 2006

PAY EQUITY The EQUAL PAY ACT OF requires companies to pay equal pay to women and men who do the same job. PAY EQUITY is the concept that people in jobs that require similar levels of education, training, or skills should receive equal pay. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

This goes beyond EQUAL PAY FOR EQUAL WORK.
b. The issue of pay equity centers on comparing the value of jobs, which shows that “women’s” jobs tend to pay less. 3. Women earn approximately 80% of what men earn. a. Once this difference could be explained because women only worked 50 to 60% of their available years. b. Today, such extended leaves by women are rarer. c. One reason for the disparity is that many women devote more time to their families and accept lower paying jobs with flexible hours. 4. In the 1980s pay critics proposed instituting a concept called comparable worth that required people in jobs that require similar levels of education, training, or skills should receive equal pay. a. The concept later fell out of favor. b. It is difficult to determine whether comparable worth creates greater equality or simply chaos. 5. There is evidence that education and knowledge-based skills are reducing women’s inequality. a. In many fields women now earn as much as men. This goes beyond EQUAL PAY FOR EQUAL WORK. The issue of pay equity centers on comparing the value of jobs which shows that “women’s” jobs tend to pay less. Women earn approximately 80% of what men earn. Once this difference could be explained because women only worked 50 to 60% of their available years. Today, such extended leaves by women are rarer. One reason for the disparity is that many women devote more time to their families and accept lower paying jobs with flexible hours. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

The concept later fell out of favor.
This goes beyond EQUAL PAY FOR EQUAL WORK. b. The issue of pay equity centers on comparing the value of jobs, which shows that “women’s” jobs tend to pay less. 3. Women earn approximately 80% of what men earn. a. Once this difference could be explained because women only worked 50 to 60% of their available years. b. Today, such extended leaves by women are rarer. c. One reason for the disparity is that many women devote more time to their families and accept lower paying jobs with flexible hours. 4. In the 1980s pay critics proposed instituting a concept called comparable worth that required people in jobs that require similar levels of education, training, or skills should receive equal pay. a. The concept later fell out of favor. b. It is difficult to determine whether comparable worth creates greater equality or simply chaos. 5. There is evidence that education and knowledge-based skills are reducing women’s inequality. a. In many fields women now earn as much as men. In the 1980s pay critics proposed instituting a concept called comparable worth that required people in jobs that require similar levels of education, training, or skills should receive equal pay. The concept later fell out of favor. It is difficult to determine whether comparable worth creates greater equality or simply chaos. There is evidence that education and knowledge-based skills are reducing women’s inequality. In many fields women now earn as much as men. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

SEXUAL HARASSMENT becomes ILLEGAL when:
SEXUAL HARASSMENT refers to unwelcome sexual advances, requests for sexual favors, and other conduct of a sexual nature (verbal or physical) of a sexual nature that create a hostile work environment. SEXUAL HARASSMENT becomes ILLEGAL when: An employee’s submission to such conduct is made either explicitly or implicitly a term or CONDITION OF EMPLOYMENT or an employee’s submission to or rejection of such conduct is used as the BASIS FOR EMPLOYMENT DECISIONS affecting the worker’s status. The conduct UNREASONABLY INTERFERES with a worker’s job performance or creates an INTIMIDATING, HOSTILE, OR OFFENSIVE WORKING ENVIRONMENT Both men and women are covered under the CIVIL RIGHTS ACT of 1991 that governs sexual harassment. The Supreme Court ruled that SAME-SEX HARASSMENT should be treated the same. Women still file the majority of sexual harassment cases. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

Sexual Harassment Charges
Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Sexual Harassment Charges This slide presents the total number of sexual harassment charges filed with EEOC. As can be seen from the chart, the total number of charges have been on the decline since FY It declined from 15, 836 cases in FY 2000 to 12,679 in FY 2005. The percent of cases filed by men have increased from 9.9% of charges in FY 1995 to 14.3% of charges in FY 2005. Ask the students – Have they felt uncomfortable in situations that can be described as sexual harassment? How about the male students in class? Source: The U.S. Equal Employment Opportunity Commission Stats

The number of complaints filed with the EEOC has leveled off.
In 1996, the U.S. Supreme Court broadened the scope of what can be considered a hostile work environment. Recent cases have introduced the concept of a HOSTILE WORKPLACE, which is any workplace where a particular behavior that is unwelcome, or that would offend a reasonable person. The number of complaints filed with the EEOC has leveled off. Ninety percent of sexual harassment cases are settled out of court. Now, small companies are seeing more lawsuits. Managers and workers are now much more sensitive to comments and behavior of a sexual nature. One of the major problems is that workers and managers often know a policy concerning sexual harassment exists, but they HAVE NO IDEA WHAT IT SAYS. One expert suggests that companies should REQUIRE SEXUAL HARASSMENT WORKSHOPS for all employees. Many companies have set up rapid effective grievance procedures and promptly react to an employee's allegations of harassment. Also available on a Transparency Acetate See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

2005 Union Membership by Industry
Also available on a Transparency Acetate See Learning Goal 3: Outline the objectives of labor unions. 2005 Union Membership by Industry This slide presents the union membership in U.S. by industry. In 2005, the unionization rate for government workers was 36.5%. Within public sector, local government workers had the highest unionization rate of 41.9% (teachers, police officers, and fire fighters.) Among major private industries: transportation and utilities had the highest rate of 24%, information industries had 13.6%, construction had 13.1%, and manufacturing had 13% unionization rate. (Source: Bureau of Labor Statistics News, January 20, 2006) Source: Bureau of Labor Statistics News, January 20, 2006

Mediation/Arbitration
Bargaining Zone Mediation/Mediator- suggestions Arbitration- binding decision See Learning Goal 3: Outline the objectives of labor unions. See text pages:

Controversial Employee -Management Issues
Executive Compensation Pay Equity Sexual Harassment Child Care Elder Care Drug Testing Violence in Workplace See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. See text pages:

Most Unionized States Also available on a Transparency Acetate
See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Most Unionized States This slide presents the top five unionized states in the U.S. New York leads the states with unionization rate at 26.1%. The other top states are Hawaii (25.8%), Alaska (22.8%), Michigan (20.5%), and New Jersey (20.5%). (Source: Investor’s Business Daily, January 24, 2006) Source: Investor’s Business Daily, January 24, 2006

Least Unionized States
Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Least Unionized States This slide goes well with the previous slide and presents the five least unionized states in the U.S. South Carolina has the lowest unionization rate at 2.3%. The other least unionized states are North Carolina (2.9%), Arkansas (4.8%), Virginia (4.8%), and Utah (4.9%). (Source: Investor’s Business Daily, January 24, 2006) Source: Investor’s Business Daily, January 24, 2006

UnitedHealth Group Inc.
CEO Pensions CEO Company Name Pension Value Lee R. Raymond Exxon Mobil Corp. $8.1M Henry A. McKinnell Pfizer Inc. $6.5M Edward E. Whitacre Jr. AT&T Inc. $5.4M William W. McGuire UnitedHealth Group Inc. $5.0M Robert L. Nardelli Home Depot Inc. $4.6M See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. CEO Pensions This slide presents the top five CEO pensions. It is not only that these CEOs are paid handsomely every year, but their retirement benefits are fabulous as well. Leading the pack is Lee Raymond of ExxonMobil with annual pension of about $8.1 million. Again the question for students – Are they worth it? (Answers should point out performance-driven criteria and shareholder interests.) Source:

Earnings Gap (What women of various races earn, compared with a dollar earned by a white male)
Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Women’s Earnings to $1 a White Man Makes By Race This slide presents the inequity in earnings: what women of various races earn, compared with a dollar earned by a white male. Hispanic women are the worse situation with earning only $0.525 compared with a dollar earned by a white male. Native American women earns $0.578, African American women earns $0.625, White women earns $0.70, and finally, Asian American women earns $0.75 compared with a dollar earned by a white male. (Source: Business Week, June 7, 2004) Source: Business Week, June 7, 2004

You Make the Call Two colleagues walk by you as one delivers the punch line to a very dirty joke. You feel the joke is inappropriate. Is this sexual harassment under the law? An employee meets with you and tells you that, five years ago, a then-supervisor was sexually harassing him. What do you do? An employee thinks she may have been sexually harassed. She explains the circumstances to you and asks, “Wouldn’t you be upset?” What should be your response? Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. You Make the Call Review the slide with the students in class. Have them get into groups in class and answer the questions. Have at least three groups with the following composition: Group I all women, Group II all men, and Group III a mixture of men and women. It will be interesting to review the comments from each group regarding their opinions. Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of Share with the class how sexual harassment can occur in a variety of circumstances: The victim as well as the harasser may be a women or man or of the same sex. The harasser can be the victim’s supervisor, an agent of the employer, a supervisor in another area, co-worker, or a non-employee. The victim does not have to be the person harassed but could be anyone affected by the offensive conduct. Unlawful sexual harassment may occur without economic injury to or discharge of the victim. The harasser’s conduct must be unwelcomed. Prevention is the best tool to eliminate sexual harassment in the workplace. Employers are encouraged to take the following steps as prevention: Clearly communicate to employees that sexual harassment will not be tolerated. Establish a grievance process. Take immediate and appropriate action when an employee complains. Conduct on-going seminars to educate workers on this issue. When investigating sexual harassment, EEOC looks closely at the whole record; if a company is actively educating workers and responds to issues, the courts are placing blame on the individuals. (Source: U.S. EEOC)

You Make the Call You’re investigating a sexual harassment claim, and all five of the witnesses you’ve interviewed so far have backed up the claim of sexual harassment. Should you continue to interview others? After conducting a thorough investigation, you conclude that sexual harassment has not taken place. What’s next? Also available on a Transparency Acetate See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. You Make the Call (cont’d) Review the questions in class with the students. As noted in the comments from 12-12, have the students continue in the groups to ask the questions. I would have the same gender make up for the groups as we did for Share with the students some interesting figures compiled from menweb.org regarding sexual harassment frequencies by gender: The majority of sexual harassment is done by men towards women (50-67%)…sexual harassment does happen to men (15-30%) and the laws and guidelines are often written if sexual harassment is only a male to female thing. A recent survey of federal workers by the U.S. Merit Systems Protection Board found that 42% of the women and 14% of the men had reported such harassment. The San Francisco Chronicle published that 85% of the girls and 75% of the boys reported some experience of sexual harassment in school.

Amount Injured Per Every 1000 Workers
See Learning Goal 5: Explain some of today’s controversial employee-management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace. Amount Injured Per Every 1000 Workers This slide presents the riskiest jobs – the risk of being a victim of violence in a given year. Looking at the top five riskiest jobs, ask the students -- do these jobs make sense as to why they are risky? Ask the students – In your opinion, what jobs are risky from violence in the workplace perspective? Interestingly, a college teacher’s job is identified as the 15th most riskiest. This information is based on the data from the National Crime Victimization Survey. Source: Crimeprevention.rutgers.edu

Also available on a Transparency Acetate
See Learning Goal 1: Trace the history of organized labor in the United States. Why Employees Join Unions/Why Employees Don’t Join Unions This acetate gives the student a very good comparison of why people choose a union or choose not to be represented by a union. The union’s reputation is an item that is listed on both sides of the ledger; “Ask the class what their perception is of union activity and support?” (There are several recent documented incidents of corruption and betrayal that surround these organizations. The most recent occurred in New York City, with AFL-CIO President John Sweeney’s Service Employees Union. Gus Bevona, the President of SEIU’s New York local was forced to leave his $530,000 per year job due to scandals over money for a private penthouse that the union was paying. Source:

12 * * * * * Dealing With Employee- Management Issues and

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12 * * * * * Dealing With Employee- Management Issues and

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