Understanding business 11th by mchugh nickels chap012

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... O

Dealing with

Union and Employee- Management

Issues

CHAPTER 12

LEARNING OBJECTIVES

1 Trace the history of organized labor in the United

States

2 Discuss the major legislation affecting labor unions

3 Outline the objectives of labor unions

LEARNING OBJECTIVES

4 Describe the tactics used by labor and management

during conflicts, and discuss the role of unions in the future

5 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

DEMAURICE SMITH

NFL Players Association

and gained a reputation as a

dedicated trial lawyer

NFL Players Association in

2009

• Shortly after starting the job he

was thrown right into the middle

NAME that COMPANY

The late management consultant Peter Drucker

suggested that CEOs should not earn more than

20 times the salary of the company’s lowest-paid employee Most firms ignore his suggestion but

at our company, executive pay is capped at 19 times the average employee’s salary Still, we

are one of the fastest growing companies in the United States

Name that company!

ORGANIZED LABOR

• Unions Employee organizations whose main goal

is to represent members in employee-management

negotiations of job-related issues

- Minimum wage laws

- Overtime rules

- Workers’ compensation

- Severance pay

- Child-labor laws

PUBLIC SECTOR LABOR UNIONS

LO 12-1

governments as teachers, firefighters, police

officers, etc

to cut labor costs But states with public sector

unions have limited ability to cut those costs

sector labor unions by eliminating union

bargaining rights for state and public employees

GOALS of ORGANIZED LABOR

HISTORY of ORGANIZED LABOR

hours, wages were low and

child labor was rampant

LO 12-1

• Craft Union An organization of skilled specialists

in a particular craft or trade.

craft union met to discuss fundamental work

issues

The FACTORY BLAZE that

FIRED UP a MOVEMENT

• On March 25, 1911, 146 women

were killed in a fire at the Triangle

Shirtwaist Company in New York

City

• The women were trapped by a

door that was kept locked to

prevent theft

• Today labor leaders say that the

Triangle fire is proof of why labor

unions are crucial to maintaining

• 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).

INDUSTRIAL UNIONS

• Industrial Unions Labor unions of unskilled or

semiskilled workers in mass production industries.

• Congress of Industrial Organizations (CIO)

Union organization of unskilled workers; broke away from the AFL in 1935 and rejoined in 1955.

• The AFL-CIO today has affiliations with 56 unions and has about 12.5 million members

PUBLIC UNIONS

• For the first time in U.S history, 7.2 million of the

14.5 union members work in government

of union workers wages and benefits

losses caused by the economic crisis put

pressure to reduce wage and benefit costs

EFFECTS of LAWS on

LABOR UNIONS

LO 12-2

dependent on public opinion and law

prohibiting the use of Yellow-Dog Contracts A

type of contract that required employees to agree to

NOT join a union.

• Collective Bargaining The process whereby

union and management representatives form an

agreement, or contract, for employees.

COLLECTIVE BARGAINING

and the PUBLIC SECTOR

LO 12-2

has become a key issue today

employees are paid by the taxpayers

winning more or better health care, more or better hours of work, and so on, some have questioned whether or not such negotiations should be

allowed to continue

FORMING a UNION in the

WORKPLACE

LO 12-2

• The National Labor Relations Board (NLRB) was created to oversee labor-management issues and provide guidelines for unionization

• Certification The formal process by which a

union is recognized by the NLRB as the bargaining

agent for a group of employees.

• Decertification The process whereby employees

take away a union’s right to represent them.

WHY JOIN a UNION?

LABOR/MANAGEMENT

AGREEMENTS

LO 12-3

• Negotiated Labor-Management Agreement

(Labor Contract) Sets the terms under which

labor and management will function over a period of

UNION SECURITY AGREEMENTS

• Closed Shop Agreement Specified workers had

to be members of a union before being hired for a job.

• Union Shop Agreement Declares workers don’t have to be members of a union to be hired, but must agree to join the union within a specific time period.

• Agency Shop Agreement Allows employers to

hire nonunion workers who don’t have to join the

union, but must pay fees.

UNION SECURITY AGREEMENTS

RIGHT-to-WORK LAWS

• Right-to-Work Laws Legislation that gives

workers the right, under an open shop, to join or not to join a union.

power to outlaw union shop agreements

• Open Shop Agreement Agreement in

right-to-work states that gives right-to-workers the right to join or not join a union, if one exists in their workplace.

RIGHT-to-WORK STATES

RESOLVING DISAGREEMENTS

rights, and serves as a guide to workplace

relations

• Grievances A charge by employees that

management isn’t abiding by the terms of the

negotiated agreement.

• Shop Stewards Union officials who work

permanently in an organization and represent

employee interests on a daily basis.

USING MEDIATION and

ARBITRATION

LO 12-3

• Bargaining Zone The range of options between

initial and final offers that each side will consider

before negotiations dissolve or reach an impasse.

• Mediation The use of a third party (mediator) to

encourage both sides to keep negotiating to resolve

key contract issues.

• Arbitration An agreement to bring in a third party

to render a binding agreement.

The GRIEVANCE RESOLUTION

PROCESS

LO 12-3

TACTICS USED in CONFLICTS

STRIKES and BOYCOTTS

• Secondary Boycott An

attempt by labor to convince

others to stop doing business

with a firm that is the subject of

a primary boycott.

• Strikes A strategy in which workers refuse to go to work.

• Primary Boycott When a union encourages both its

members and the general public not to buy the products

of a firm in a labor dispute

TACTICS USED in CONFLICTS

- Lockouts

- Injunctions

- Strikebreakers

LOCKOUTS, INJUNCTIONS and

STRIKEBREAKERS

LO 12-4

• Lockout An attempt by management to put

pressure on workers by closing the business, thus

cutting off workers’ pay.

• Injunction A court order directing someone to do

something or refrain from doing something.

• Strikebreakers Workers hired to do the work of

striking workers until the labor dispute is resolved;

called scabs by unions.

To CROSS or NOT to CROSS?

jobs of striking workers

and others are supporting the strike

you to replace striking workers

CHALLENGES FACING LABOR

UNIONS

LO 12-4

negotiations are given back to management to help

save jobs.

LABOR UNIONS in the FUTURE

female and foreign-born workers than in the past

role in training workers,

redesigning jobs and

assimilating the changing

workforce

security, profit sharing and

UNION MEMBERSHIP by STATE

TEST PREP

growth, and what does each one cover?

objectives of unions?

management to assert their power in contract

negotiations?

stock options and restricted

stock that’s awarded even if

the company performs

poorly

COLLEGE ATHLETES:

WHAT are THEY WORTH?

towns reap huge revenues on sports weekends

draw a salary

players won a ruling that gave them the right to unionize

•

PLAY BALL!

Salaries in Professional Sports

COMPENSATING EXECUTIVES

in the FUTURE

Dodd-Frank Act was intended to

give shareholders more say

in compensation decisions

LO 12-5

concerning executive contracts

pressure to overhaul executive compensation

The QUESTION of PAY EQUITY

men earn

profession, experience and

level of education

8% percent more than male

counterparts due to their

higher graduation rates

EQUAL PAY for EQUAL WORK

Equal Pay Act Factors that Justify Pay Differences

• Skill

• Effort

THE SALARY GENDER GAP

WHAT’S SEXUAL HARASSMENT?

• Sexual Harassment Unwelcomed sexual

advances, requests for sexual favors or other verbal

or physical conduct that creates a hostile work

environment.

cover men, women and

foreign companies doing

business in the U.S

KINDS of SEXUAL HARASSMENT

like “Go out with me or you’re fired.” An

employee’s job is based on submission

conduct that interferes with a worker’s

performance or creates an intimidating or

offensive work environment

YOU MAKE the CALL…

punch line to a very dirty joke You feel the joke

is inappropriate Is this sexual harassment under the law?

2 An employee thinks she may have been

sexually harassed when her boss

complimented her blouse She explains the

circumstances to you and asks, “Wouldn’t you

be upset?” What’s your response?

FACING CHILDCARE ISSUES

children under three-years-old has increased

cost businesses billions of

dollars each year

of childcare – this is a

dividing issue among

employees and businesses

BUSINESSES RESPONSE to

CHILD CARE

LO 12-5

• Benefits can include:

- Discounts with childcare

INCREASING ELDER CARE

CHALLENGES

LO 12-5

providing some care to an

elderly person

employees to miss about 15

million days of work per year

billion annually

ELDER CARE in the MODERN HOUSEHOLD

LO 12-5

parents while still working

$5,534.

DRUG USE in the WORKPLACE

full time employees are considered heavy

drinkers

and are more likely to be in workplace accidents

in lost work, healthcare costs and crime

VIOLENCE in the WORKPLACE

workplace deaths

women in the workplace

potential problems by using focus groups and

other interactions

WARNING SIGNS of POSSIBLE

WORKPLACE VIOLENCE

LO 12-5

TEST PREP

with top-executive pay in other countries?

equal pay for equal work?

when does sexual behavior become illegal?

and elder care and how are companies