1. PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved. CHAPTER 1 Union-Management Relationships in Perspective

2. Copyright © 2005 South-Western. All rights reserved.1–2 Phases in the Labor Relations Process 1.Recognition of rights and responsibilities  Legal protections and constraints on union and management representatives 2.Negotiation of the labor agreement  Strategies, tactics, and dispute resolution techniques 3.Administration of the negotiated labor agreement  Management administers the agreement.  Union monitors management’s compliance with the terms of the agreement.

3. Copyright © 2005 South-Western. All rights reserved.1–3 Rights and Responsibilities of Flight Attendants in Two Drug and Alcohol Testing Situations Exhibit 1.1a

4. Copyright © 2005 South-Western. All rights reserved.1–4 Rights and Responsibilities of Flight Attendants in Two Drug and Alcohol Testing Situations Exhibit 1.1b

5. Copyright © 2005 South-Western. All rights reserved.1–5 Elements in the Labor Relations Process Exhibit 1.2

6. Copyright © 2005 South-Western. All rights reserved.1–6 Labor Relations’ Focal Point: Work Rules Work Rule Categories  Rules governing compensation  Wages, overtime payments, vacations, shift premiums  Rules specifying employees’ and employers’ job rights and obligations  No strike/no lockout, performance standards, promotion qualifications, job specifications, layoff provisions Characteristics of Work Rules  Common or unique  Vague or specific  Change over time

7. Copyright © 2005 South-Western. All rights reserved.1–7 Examples of Work Rules Professional Baseball  The Player and the Club recognize and agree that the Player’s participation in certain other sports may impair or destroy his ability and skill as a baseball player. Accordingly, the Player agrees that he will not engage in professional boxing or wrestling and that except with the written consent of the club, he will not engage in skiing, auto racing, motorcycle racing, sky diving or in any game or exhibition of football, soccer, professional league basketball, ice hockey, or other sport involving a substantial risk of personal injury. Television  The latest version of the script will be made accessible to the Player in the casting office 24 hours in advance of a scheduled reading or immediately after the scheduling of the interview, whichever last occurs. Exhibit 1.3

8. Copyright © 2005 South-Western. All rights reserved.1–8 Participants in the Labor Relations Process Management Officials  Corporate, divisional, plant-level managers  Management consultants, “union avoidance” experts Union Officials  Elected officers and representatives Employees  Vote to organize and vote to ratify negotiated agreements

9. Copyright © 2005 South-Western. All rights reserved.1–9 Participants…(cont’d) The Government  Executive, legislative, and judicial branches  Actions (laws and regulations) can change labor- management relationships.  Federal, state, and local levels of government Third-Party Neutrals  Mediators  Facilitate bargaining activities.  Arbitrators  Consider disputed issues and make decisions binding on both labor and management.

10. Copyright © 2005 South-Western. All rights reserved.1–10 Constraints or Influences on Work Rules State of the Economy  Inflation, interest rates, unemployment, and productivity affect job security. Labor Market  Skills and wage levels in the relevant labor market  Demand for labor and shifts in labor market sectors Product Market  Vulnerability of disruption to product supply to customers from the potential for labor strikes  Use of outsourced materials and products

11. Copyright © 2005 South-Western. All rights reserved.1–11 Constraints or Influences…(cont’d) Financial Market  Availability and cost of funds for investment  Exchanges rates that affect plant location choice  Funds borrowed to support ESOPs  Capital investments in nonunion and offshore facilities Technology  Equipment changing or eliminating skills required  Pace and scheduling of the work  Work environment and tasks  Information exchange

12. Copyright © 2005 South-Western. All rights reserved.1–12 Constraints or Influences…(cont’d) International Forces  North American Free Trade Agreement (NAFTA)  U.S. firms’ overseas investments  Globalization and the global economy (24/7)  Multinational firms’ plant location strategies  Low-wages in newly industrializing countries  Rising volume of imports Public Opinion  Influential individuals and organizations  Attitudes and traditions of the community

13. Copyright © 2005 South-Western. All rights reserved.1–13 How Unions Enhance Public Opinion Monitoring and reacting to negative comments made in the media. Getting organized labor’s positive message out to the community. Forming alliances with various groups in the community.

14. Copyright © 2005 South-Western. All rights reserved.1–14 Exhibit 1.4 Union Membership Trends, 1960-2002 SOURCE: Updated from “Union Membership in 2002” Washington, DC. Bureau of Labor Statistics, U.S. Department of Labor, updated annually). http://www.stats.bls.gov/news.release/February 25, 2003.

15. Copyright © 2005 South-Western. All rights reserved.1–15 Union Membership Is Declining Structural Changes in the Labor Force  Shift from manufacturing to knowledge-based jobs  Growth in professional, technical, and service workers  Shifts in workforce demographics (more females and younger workers)  Employment growth primarily (80%) in smaller firms  Increases in the use of contingent workers  Economic recessions

16. Copyright © 2005 South-Western. All rights reserved.1–16 Union Membership Is Declining (cont’d) Organizational Practices  Union-avoidance practices by firms  Improved human resources practices Companies’ Use of Current Law Governing the Workplace  Legal loopholes favoring management  Insufficient resources