1. Copyright 2000 - South-Western College Publishing Module 6 - 1 Examples of Workplace Rules How much to be paid? How much of an increase? What will be the criteria for increases? When will increase be given? Any fringe benefits associated with the job? What will be the criteria for promotion? What will be the criteria for layoffs, if necessary? Who will be trained? Who will be disciplined? How will discipline occur? What hours will be worked? Who will work what shift? For how long? Who is assigned what work? Pay for part-time workers. Procedure for moving from part-time to full-time.

2. Copyright 2000 - South-Western College Publishing Module 6 - 2 How are the rules made? Individual Bargaining Employer Unilateral Determination Collective Bargaining –With a union\labor organization as representative of employees –Usually done pursuant to legal procedures

3. Copyright 2000 - South-Western College Publishing Module 6 - 3 Forms of Rules Unarticulated - ad hoc (created as needed) Oral statements of intent Written statements of intent Oral policies Written polices Oral contracts Written contracts –individual bargaining –collective bargaining

4. Copyright 2000 - South-Western College Publishing Module 6 - 4 Procedures for Modifying Rules Modified at will of employer –Unarticulated - ad hoc (created as needed) –Oral statements of intent –Written statements of intent –Oral policies –Written policies –Oral contracts? Modified only with agreement of both parties or at an agreed-upon date –Written contracts –Collective agreements

5. Copyright 2000 - South-Western College Publishing Module 6 - 5 Collective Bargaining and Governance Focuses on how decisions are made –Unilaterally - no CB –Jointly - CB Permits workers to participate in decisions affecting them Transference of notions of democracy to the workplace –property rights only provide authority over property –does not necessarily provide authority over people

6. Copyright 2000 - South-Western College Publishing Module 6 - 6 Actions Associated with Employee Dissatisfaction Traditional View - Exit –When workers are dissatisfied they leave the firm –Quit Governance View - Voice –When Workers are dissatisfied they attempt to change terms and conditions of employment in the firm –Negotiate

7. Copyright 2000 - South-Western College Publishing Module 6 - 7 Democracy Rationale for Unionism Workplace is analogous to society Cannot have democracy in society without democracy in the workplace

8. Copyright 2000 - South-Western College Publishing Module 6 - 8 Economic View of Collective Bargaining Unions a disruption to competitive markets Unions cause a misallocation of resources

9. Copyright 2000 - South-Western College Publishing Module 6 - 9 Wn Wu EuEn UNIONIZED SECTOR NONUNION SECTOR Sn Su Wn Wu Wn

10. Copyright 2000 - South-Western College Publishing Module 6 - 10 Union Characteristics Unions are democratic organizations –corporations generally hierarchical –union leadership directly and fairly immediately answerable to membership Administered by –elected officials –staff appointed by elected officials

11. Copyright 2000 - South-Western College Publishing Module 6 - 11 Constraints on Union Strategy Minimal options for provision of services/representation (can’t get out of “business of representing workers) –collective bargaining –organizing –political action Unions have an institutionalized adversary in firms that question existence of unions –a firm will exist without a union –a union cannot perform main function without employers

12. Copyright 2000 - South-Western College Publishing Module 6 - 12 Internal Structure of Labor Movement in U.S. AFL-CIO –Federation of unions –Does not bargain with employers –Supports efforts of affiliates (Inter)national Union –Main component of U.S. Labor Movement –Constitution defines officers, how elected, authority, terms of office, full-time/part-time status, etc. –Examples: UAW, Teamsters, etc. –Regular activities financed by dues revenue

13. Copyright 2000 - South-Western College Publishing Module 6 - 13 Structure (cont.) Local Union –Chartered by international union –Charter and int’l constitution determine jurisdiction and autonomy jurisdiction - the occupational or industrial group of workers that the union may (attempt to) represent –Wide variation in size, complexity, etc. one-plant locals (typical UAW structure) locals that cover employees all over a geographic area

14. Copyright 2000 - South-Western College Publishing Module 6 - 14 Structure (cont.) Intermediate Bodies –Services to locals from international UAW Regions UPIU Regions –Coordinate activities among locals with common interests e.g., Corporate Councils in UAW –Internal governance UAW Regions

15. Copyright 2000 - South-Western College Publishing Module 6 - 15 HRM and Collective Bargaining Views of Employment HRM –EMPLOYMENT IS FOR BENEFIT OF ORGANIZATION –RULES ARE EMPLOYER DETERMINED –CONGRUENCE IS ENCOURAGED, CONFLICT AVOIDED CB –EMPLOYMENT IS FOR BENEFIT OF ORGANIZATION AND EMPLOYEE –RULES ARE NEGOTIATED –CONGRUENCE AND DIVERGENCE OF INTERESTS EXIST TOGETHER MANAGE CONFLICT

16. Copyright 2000 - South-Western College Publishing Module 6 - 16 Business Strategy and Industrial Relations TWO DISTINCT PERIODS – 1930’s - 1970’s – Since 1970’s

17. Copyright 2000 - South-Western College Publishing Module 6 - 17 Three Post-1970’s Employer Strategies DEUNIONIZATION – CONFLICT – INVESTMENT TRADITIONAL ADVERSARIALISM COOPERATION

18. Copyright 2000 - South-Western College Publishing Module 6 - 18 Deunionization - Conflict Use of legal right to bargain without concessions Union Options –accept an “unacceptable” contract –strike and risk replacement ER may permanently replace strikers Claim “good faith doubt” about union’s majority status “Pyramiding” of legal rights by employer

19. Copyright 2000 - South-Western College Publishing Module 6 - 19 Deunionization-Conflict Examples Module –Phelps Dodge Other Examples –Detroit Newspapers –Greyhound –Continental Airlines (mid ‘80’s) –Caterpillar?

20. Copyright 2000 - South-Western College Publishing Module 6 - 20 Different Bargaining and Contract Administration Models Adversarial: Positional Bargaining –Each side provides position to other party –Listens –Modifies position based on rationale and bargaining power Cooperative –Parties define problems and interests –Parties discuss problems and interests –Parties develop recommendations for possible solutions –Parties determine solutions

21. Copyright 2000 - South-Western College Publishing Module 6 - 21 Traditional Adversarialism/ Coexistence Examples –Trucking Industry United Parcel Service (module) –Aerospace –Airlines

22. Copyright 2000 - South-Western College Publishing Module 6 - 22 Examples of Cooperative Relationships Philip Morris and BCTW Local 13 National Steel and United Steelworkers of America Ford and UAW Philip Morris (Trenton, Ohio) and UAW

23. Copyright 2000 - South-Western College Publishing Module 6 - 23 Cooperation Creation of non-adversarial structures for communication Reduce labor costs by reducing the costs of adversarialism Permits firm to better exploit knowledge of workers Focus on common, rather than conflicting, interests

24. Copyright 2000 - South-Western College Publishing Module 6 - 24 Examples of Cooperative Relationships Ford (module) Xerox

25. Copyright 2000 - South-Western College Publishing Module 6 - 25 Fundamental Question Does Management challenge the institutional legitimacy/status of the union? –No Cooperation Institutionalized Adversarialism –Yes Deunionization

26. Copyright 2000 - South-Western College Publishing Module 6 - 26 Basic Legal Framework National Labor Relations Act Employee Choice to chose to be represented Some Exclusions –Some Employers Railway Labor Act –Some Employees –Independent Contractors

27. Copyright 2000 - South-Western College Publishing Module 6 - 27 Basic Legal Framework (cont.) Representation by “Bargaining Unit” –Majority Rule –Exclusive Representation - only one representative Unfair Labor Practices –Employer may not discriminate against employee for union activity –Employer must bargain for union representing employees

28. Copyright 2000 - South-Western College Publishing Module 6 - 28 Basic Legal Framework (cont.) Bargaining –Limited to terms and conditions of employment in U.S. –Broader in Canada Use of Economic Weapons to Determine Outcomes