Chapter Twelve

Dealing with Dealing with Employee- Employee-

Management Management Issues and Issues and

RelationshipsRelationships

Employed WorkersEmployed Workers In UnionsIn Unions

14.9%16.0%

18.0%20.1%

13.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1983 1985 1990 1995 2000

Source:Source: U. S. News & World Report, 3/5/01

Union Membership Union Membership by Industry (2000)by Industry (2000)

0

5

10

15

20

25

30

35

40 Service

Construction

Manufacturing

Transportation &Public Util.Wholesale/ Retail

Government

Source: Source: Bureau of Labor Statistics

Pro-union attitudesPro-union attitudes Poor management/ Poor management/

employee relationsemployee relations Negative Negative

organizational organizational climateclimate

Poor work Poor work conditionsconditions

Union’s reputationUnion’s reputation Job securityJob security

Why Employees Why Employees

Join UnionsJoin Unions

Why Employees Why Employees

Don’t Join UnionsDon’t Join Unions

Anti-union attitudeAnti-union attitude Good management/ Good management/

labor relationslabor relations Positive Positive

organizational organizational climateclimate

Good work Good work conditionsconditions

Union’s reputationUnion’s reputation Peer pressurePeer pressure

History of Labor UnionsHistory of Labor Unions Craft Unions Craft Unions

Knights of Knights of LaborLabor

AFLAFL

CIOCIO

Industrial UnionsIndustrial Unions

AFL/CIOAFL/CIO

National Labor National Labor Relations Act, Relations Act, 1935 (Wagner Act)1935 (Wagner Act)

skilled specialists

1869, all working people

1886, craft unions

1935, industrial unions

1955, merger

employee rights

unskilled and semi-skilled, by manufacturing sector

Major LegislationMajor Legislation Norris-La Guardia Act, 1932 Norris-La Guardia Act, 1932

NLRA (Wagner Act), 1935NLRA (Wagner Act), 1935

Fair Labor Standards Act, 1938Fair Labor Standards Act, 1938

Taft-Hartley Act, 1947Taft-Hartley Act, 1947

Landrum-Griffin Act, 1959Landrum-Griffin Act, 1959

pro-union, outlawed injunctions, yellow-dog contracts

minimum wage (25¢) and maximum hours

permitted right-to-work laws, no closed shops

individual rights of union members (anti-corruption)

pro-union, right to join unions, collective bargaining

Labor-Management Relations Act

Labor-Management Reporting and Disclosure Act

Objectives of Organized Objectives of Organized LaborLabor

1970s- Pay/Benefits1970s- Pay/Benefits

1980s- Job Security 1980s- Job Security & Union Recognition& Union Recognition

1990s- Job Security/ 1990s- Job Security/ Global CompetitionGlobal Competition

Organized Labor Organized Labor IssuesIssues

Right-To-Work Laws & Open ShopRight-To-Work Laws & Open Shop

Right-To-Work States = Right-To-Work States = 2121

opportunity to join or not join a union if available

Union Security ClausesUnion Security Clausesemployees who benefit from union must

join or pay dues to the union

Union AgreementsUnion AgreementsClosed Shop (illegal)Closed Shop (illegal)

Union Shop (most)Union Shop (most)

Agency Shop (small %)Agency Shop (small %)

Open Shop (few)Open Shop (few)

Employers could only hire current union members

Joining the union is a condition of keeping job

Employees need not join a union, but must pay dues

Union membership is voluntary

Labor IssuesLabor IssuesCollective BargainingCollective Bargaining

CertificationCertification

DecertificationDecertification

Labor and management form an agreement for workers

Process of getting union recognized by NLRB

workers take away a union’s right to represent them

Resolv

ing

R

esolv

ing

D

isp

ute

sD

isp

ute

s

Mediation/ArbitrationMediation/Arbitration

Bargaining ZoneBargaining Zone

Mediation/Mediation/Mediator- Mediator- suggestionssuggestions

Arbitration- Arbitration- binding decisionbinding decision

range of option between initial and final offers

third party who encourages continued negotiations

binding decision of a third party

Factors That Affect theFactors That Affect theCollective Bargaining Collective Bargaining

ProcessProcess

Union Union Rep.Rep.

MgmtMgmt.Rep..Rep.

BargaininBargaining Topicg Topic

State of State of EconomEconom

yy

Goals of Goals of Bargaining Bargaining

PartiesParties Precedents Precedents in in

BargainingBargaining

Labor Labor LawLaw

Public Public SentimenSentimen

tt

Issues Issues Being Being

DiscusseDiscussedd

Union Union TacticsTactics

StrikeStrikeSickoutsSickoutsBoycottBoycott

PrimaryPrimary

SecondarySecondary

On

Strikepublic is urged not to buy

products of the firm

businesses are urged not to do business with the firm

Management Management TacticsTactics

Yellow-Dog Contracts- outlawedYellow-Dog Contracts- outlawed

LockoutsLockouts

InjunctionInjunction

StrikebreakersStrikebreakers

employees agree not to join a union when hired

management temporarily closes business (no pay)

court ordered return to work

workers hired to work during a strike

Controversial Controversial Employee-Management Employee-Management

IssuesIssues

Executive Executive CompensationCompensation

Comparable Comparable WorthWorth

Sexual Sexual HarrassmentHarrassment

Child CareChild Care

Elder CareElder Care Aids/Drug Aids/Drug

Testing, Testing, Violence in Violence in WorkplaceWorkplace

Employee Stock Employee Stock Ownership Ownership Plans(ESOPs)Plans(ESOPs)

CEO Pay as Multiple CEO Pay as Multiple of Average Worker Payof Average Worker Pay

050

100150200250300350400450500

1960 1970 1980 1990 1995 1996 1997 1998 1999

Source: Source: Executive Excess 2000, Institute for Policy Studies & United for a Fair Economy

Women’s Earnings Women’s Earnings as % of Men’s by Ageas % of Men’s by Age

0

10

20

30

40

50

60

70

80

90

20-24 45-54 55-64

Source: Source: Business and Professional Women/USA

Types of Types of Sexual HarassmentSexual Harassment

Gender Gender HarassmentHarassment

Seductive Seductive BehaviorBehavior

Sexual BriberySexual BriberySexual CoercionSexual CoercionSexual ImpositionSexual Imposition

Percentage of Workers Percentage of Workers Responsible for An Aging Responsible for An Aging

RelativeRelative

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1980 1992 1998

Major Types of Major Types of Workplace ViolenceWorkplace Violence

Employee attacks

supervisor17%

Customer attacks

employee6%

Boy/ Girl friend attacks

employee4%

Spouse attacks

employee3%

Other13%

Employee attacks

employee57%

Negotiated labor management agreement

Congress of Industrial Organizations

Employee Stock Ownership Plans

American Federation of Labor

Strike Decertification Strikebreakers Unions

Industrial Unions Bargaining zone Arbitration Lockout

Agency shop agreement

Collective bargaining

Secondary boycott

Injunction

Knights of Labor Closed-shop agreement

Certification Givebacks

Right-to-work-laws Comparable worth Primary boycott Grievance

Union Security Clause

Open shop Agreement

Craft Union Mediation

Union Shop Agreement

Yellow-dog contracts

Cooling off period

Shop steward