2. Chapter 1
A Framework for Analyzing Collective Bargaining and Industrial Relations
McGraw-Hill/Irwin
An Introduction to Collective Bargaining & Industrial Relations, 4e
Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

3. The Participants
Management
Labor
Government

4. Management
Responsible for promoting the goals of employers and their organizations
Composed of at least three groups:
Owners and shareholders
Top executives and line managers
Industrial relations and human resource staff professionals

5. Labor Encompasses both employees and the unions that represent them
Employees influence whether the firm meets its objectives
Shapes the growth and demands of unions

6. Assumptions About Labor and Conflict
Labor is more than just a commodity
Some acquired skills are of unique value to the employer
Skills may not be easily marketable
Not always easy to change jobs
A Multiple Interest Perspective
Industrial relations policies must consider both employer and employee interests

7. The Inherent Nature of Conflict
There is an inherent conflict of interest between employer and employees
It is economic, not pathological
Arises from a clash of economic interests
Workers seek higher pay and job security
Employers pursue profits
Society has an interest in limiting the intensity of work conflicts

8. Common as Well as Conflicting Interests
Both management and labor can benefit from increasing productivity
It can produce both higher wages and higher profits
No single best objective satisfies all parties
Successful relationships occur when both parties resolve issues and pursue joint gains

9. Trade-Offs among Conflicting Goals
Focusing on any single goal is inappropriate
It would destroy collective bargaining as an instrument for accommodating the multiple interests of workers and employers
Unions would not survive if suppressed
Management could not compete in the global market with excessive labor costs

10. The Three Levels of Industrial Relations Activity
Strategic Level
Strategies and structures of long-term influence
Functional Level
The process and outcomes of collective bargaining
Workplace
The daily union/employer interaction and contract administration

11. Conceptual framework for the study of collective bargaining

12. The Institutional Perspective
Developed by “institutional” economist John Commons - the father of industrial relations
Described as “a shift from commodities, individuals, and exchanges to transactions and working rules of collective action”
Placed great value on negotiation and compromise among the divergent interests

13. Sidney and Beatrice Webb
Institutionalists in the U.S. were influenced by these two British economists & reformists
They rejected Marx’s theory that exploitation of workers would lead to the overthrow of the system
They shared Marx’s belief that workers have unequal bargaining power and needed protection
Institutionalists advocated legislation for the right to join unions, and workplace issues such as safety, health, child labor laws, and minimum wages

14. The Performance of Collective Bargaining
Measured by how well it serves the parties and the public
Labor’s Goals: Wages, benefits, safety conditions, and employee satisfaction, and quality of life
Management’s Goals: Costs, productivity, profit, quality, managerial control, employee motivation and turnover
Public’s Goals: Industrial peace & union democracy; balance and fairness. Security without corruption

15. The Environment
The external environment sets the context for collective bargaining & influences outcomes
It includes five key dimensions –
The economic environment
Law & public policy
The demographic context
Social attitudes
The technological context
Laws and macroeconomic conditions can alter the balance of bargaining power

16. The Strategic (Top) Tier
Involves strategies and structures that guide the long-term direction of industrial relations
Management: Committed to working with the union, or seeking non-union alternatives?
Labor: Is leadership adversarial or flexible?

17. The Functional (Middle) Tier
The process of contract negotiations takes place here & the terms and conditions of the labor agreement are established
In the middle tier we find:
Union organizing & bargaining structure
The negotiations process
Impasse resolution
Bargaining outcomes

18. The Workplace Tier The workplace tier involves issues such as:
management of conflict
delivery of due process
motivation, participation, supervision of workers, and the structuring of jobs
Administration of the bargaining agreement is an important part of this tier

19. Public Sector Collective Bargaining
Chapter 13 addresses the rules and procedures of public sector collective bargaining
The chapter identifies the differences from the private sector
For example, public employees are not covered by the National Labor Relations Act (NLRA)

20. International and Comparative Industrial Relations
The changes occurring globally warrant the special attention given in Chapter 14
The labor movement has been at the forefront of the sweeping political changes in the former Communist bloc nations and newly-industrialized countries such as South Korea
International trade and competitiveness have moved to the forefront of economic policy in the U.S.
In particular, there is much discussion about whether globalization has fundamentally increased management's power and advantage

21. Labor Policy
Chapter 15 assesses the broad public and social issues and their impact on industrial relations
Reviews the many changes emerging in U.S. collective bargaining
Considers the various policy options
Addresses the merits and implications of the alternative policies

22. Summary
There have been many changes in the workplace in recent years, including:
The expansion of the participatory process
The team form of work organizations
Globalization has increased management’s advantage
A shift in American industrial relations from the middle level to both the strategic and workplace levels
Concern for job security, union decline, and participation programs are all part of a transformation in industrial relations