Chapter 12 Dealing with Union and EmployeeManagement Issues McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc All rights reserved Chapter Twelve LEARNING GOALS Trace the history of organized labor in the United States Discuss the major legislation affecting labor unions Outline the objectives of labor unions Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future Assess 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 12-2 Profile DAVID STERN National Basketball Association (NBA) • Started with the NBA as an outside legal counselor in 1966 • Spearheaded settlements between players and coaches that led to free agency, salary caps and revenue sharing • Commissioner since 1984, he’s led the league to unprecedented growth 12-3 Chapter Twelve NAME that COMPANY As the number of women in the workplace began growing rapidly about 25 years ago, this company recognized that providing child care benefits would be a real advantage for companies Today it is the largest provider of child care at worksites, operating about 700 child care centers for 400 companies including 90 companies in the Fortune 500 Name that company! 12-4 Employee -Management Issues ORGANIZED LABOR LG1 Unions Employee organizations whose main goal is to represent members in employee-management negotiations of job-related issues •Labor unions were responsible for: - Minimum wage laws Overtime rules Workers’ compensation Severance pay Child-labor laws Job-safety regulations 12-5 Employee -Management Issues LG1 PUBLIC SECTOR LABOR UNIONS • Public sector union members work for governments as teachers, firefighters, police officers, etc • Many states face serious debt problems and want to cut labor costs But states with public sector unions have limited ability to cut those costs • In 2011 Governor of Wisconsin challenged public sector labor unions by eliminating union bargaining rights for state and public employees 12-6 Employee -Management Issues LG1 PUBLIC SECTOR JOBS 12-7 Employee -Management Issues GOALS of ORGANIZED LABOR LG1 • To work with fair and competent management • To be treated with human dignity • To receive a reasonable share of wealth in the work it generates 12-8 The History of Organized Labor LG1 HISTORY of ORGANIZED LABOR Craft Union An organization of skilled specialists in a particular craft or trade •As early as 1792, shoemakers in a Philadelphia craft union met to discuss fundamental work issues • Work weeks were 60+ hours, wages were low and child labor was rampant 12-9 The History of Organized Labor LG1 EMERGENCE of LABOR ORGANIZATIONS Knights of Labor First national labor union (formed in 1869) •Knights attracted 700,000 members, but fell from prominence after a riot in Chicago American Federation of Labor (AFL) An organization of craft unions that championed fundamental labor issues (formed in 1886) 12-10 Executive Compensation LG5 Salaries in Professional Sports Includes Endorsements 12-36 Executive Compensation LG5 Executive Salaries 12-37 Executive Compensation LG5 CEO/ Executive Salaries 12-38 Pay Equity LG5 EQUAL PAY for EQUAL WORK Equal Pay Act Factors that Justify Pay Differences • Skill • Effort • Responsibility • Working Conditions 12-39 Pay Equity THE SALARY GENDER GAP LG5 Source: U.S Census Bureau, www.census.gov, accessed June 2011 12-40 Violence in the Workplace VIOLENCE in the WORKPLACE LG5 • OSHA reports homicides account for 16% of workplace deaths • Violence is the number one cause of death for women in the workplace • Companies have taken action to deal with potential problems by using focus groups and other interactions 12-41 Violence in the Workplace LG5 WARNING SIGNS of POSSIBLE WORKPLACE VIOLENCE • Unprovoked outbursts of anger or rage • Threats or verbal abuse • Repeated suicidal comments • Paranoid behavior • Increased frequency of domestic problems 12-42 Sexual Harassment WHAT’S SEXUAL HARASSMENT LG5 • Sexual Harassment Unwelcomed sexual advances, requests for sexual favors or other verbal or physical conduct that creates a hostile work environment • Sexual harassment laws cover men, women and foreign companies doing business in the U.S • Violations can be extremely expensive for businesses 12-43 Sexual Harassment KINDS of SEXUAL HARASSMENT LG5 Quid pro quo sexual harassment involves threats like “Go out with me or you’re fired.” An employee’s job is based on submission Hostile work environment sexual harassment is conduct that interferes with a worker’s performance or creates an intimidating or offensive work environment 12-44 Drug Testing LG5 DRUG USE in the WORKPLACE Alcohol is the most widely used drug 9% of heavy drinkers and 10% drug users missed work due to hangover, while 6% went to work drunk or high in October 2013 survey, while 11% heavy drinkers and 18% drug users skipped work in the month of September 2013, alone •Over 8% of full-time and 10.2% workers aged 18-49 use illegal drugs and are more likely to be in workplace accidents •Drug abuse costs the U.S economy $414 billion in lost work, healthcare costs and crime •Over 80% of major companies drug test workers 12-45 Elder Care LG5 ELDER CARE in the MODERN HOUSEHOLD More and more boomers are taking care of their parents while still working -31% say this may delay their retirement -The average cost of care of aging parent is can be between $20-$400K per year, with maintenance fees in care facilities Approximately $5,534 in local facilites, and $1,000 – $4,000 in your home -76% say they enjoy taking care of their parents -54% say it made them closer 12-46 Child Care FACING CHILDCARE ISSUES LG5 • The number of women in the workforce with children under three-years-old has increased • Childcare related absences cost businesses billions of dollars each year • Who should pay for the cost of childcare – this is a dividing issue among employees and businesses 12-47 Child Care LG5 BUSINESSES RESPONSE to CHILD CARE • Benefits can include: - Discounts with childcare providers - Vouchers that offer payment for childcare - Referral services identify high-quality childcare facilities - On-site childcare centers - Sick-child centers 12-48 Elder Care LG5 INCREASING ELDER CARE CHALLENGES • Nationwide 29% of the adult population are providing some care to an elderly person • Care giving obligations cause employees to miss about 15 million days of work per year • Costs could rise up to $35 billion annually 12-49 Progress Assessment PROGRESS ASSESSMENT • How does top-executive pay in the U.S compare with top-executive pay in other countries? • What’s the difference between pay equity and equal pay for equal work? • How is the term sexual harassment defined and when does sexual behavior become illegal? • What are some of the issues related to childcare and elder care and how are companies addressing those issues? 12-50 ... rights for state and public employees 12- 6 Employee -Management Issues LG1 PUBLIC SECTOR JOBS 12- 7 Employee -Management Issues GOALS of ORGANIZED LABOR LG1 • To work with fair and competent management... 12- 4 Employee -Management Issues ORGANIZED LABOR LG1 Unions Employee organizations whose main goal is to represent members in employee- management negotiations of job-related issues •Labor unions... the AFL in 1935 and rejoined in 1955 creating the AFL-CIO, having affiliations with 56 unions with approximately 12. 2 million members 12- 12 Public Sector Union Membership PUBLIC UNIONS LG1 • For