Chapter 1 - A framework for analyzing collective bargaining and industrial relations. The main contents of the chapter consist of the following: The Participants, assumptions about labor and conflict, the three levels of industrial relations activity, the institutional perspective, the performance of collective bargaining, the plan of the book.
Chapter A Framework for Analyzing Collective Bargaining and Industrial Relations McGrawHill/Irwin An Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGrawHill Companies, Inc. All rights reserved 1 3 1 3 The Participants • Management • Labor • Government 1 4 1 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 1 5 1 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 1 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 1 6 1 7 1 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 1 8 1 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 1 9 1 9 TradeOffs 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 1 10 1 10 The Three Levels of Industrial Relations Activity • Strategic Level Strategies and structures of longterm influence • Functional Level The process and outcomes of collective bargaining • Workplace The daily union/employer interaction and contract administration 1 11 Conceptual framework for the study of collective bargaining 1 11 1 12 1 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 1 13 1 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 1 14 The Performance of Collective Bargaining 1 14 • 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 1 15 1 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 1 16 1 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 nonunion alternatives? • Labor: Is leadership adversarial or flexible? 1 17 1 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 1 18 1 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 1 19 1 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) 1 20 International and Comparative Industrial Relations 1 20 • 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 newlyindustrialized 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 1 21 1 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 1 22 1 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 .. .Chapter A Framework for Analyzing Collective Bargaining and Industrial Relations McGrawHill/Irwin An Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGrawHill Companies, Inc. All rights reserved... globalization has fundamentally increased management's power and advantage 1 21 1 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. ... and their organizations Composed of at least three groups: • Owners and shareholders • Top executives and line managers • Industrial relations and human resource staff professionals 1 5 1 5 Labor