Chapter 12          Dealing with           Union and           Employee-          Management            IssuesMcGraw-Hill/...
Chapter Twelve                 LEARNING GOALS    1. Trace the history of organized labor in the United       States    2. ...
Chapter Twelve                 LEARNING GOALS    4. Describe the tactics used by labor and       management during conflic...
Profile                       DAVID STERN               National Basketball Association (NBA)      • Started with the NBA ...
Chapter Twelve                 NAME that COMPANY    As the number of women in the workplace began       growing rapidly ab...
Employee-ManagementIssues                     ORGANIZED LABOR    LG1    • Unions -- Employee organizations whose main     ...
Employee-Management       PUBLIC SECTORIssues    LG1            LABOR UNIONS    • Public sector union members work for    ...
Employee-ManagementIssues                   PUBLIC SECTOR JOBS    LG1          Source: St. Louis Post-Dispatch, September ...
Employee-ManagementIssues              GOALS of ORGANIZED LABOR    LG1    • To work with fair and      competent      mana...
The Historyof OrganizedLabor                  HISTORY of     LG1        ORGANIZED LABOR     • Craft Union -- An organizati...
The TRIANGLE FIRE                  (Spotlight on Small Business)• On March 25, 1911, 146 women  were killed in a fire at t...
The Historyof OrganizedLabor               EMERGENCE of LABOR     LG1         ORGANIZATIONS     • Knights of Labor -- Firs...
The Historyof OrganizedLabor                 INDUSTRIAL UNIONS     LG1     • Industrial Unions -- Labor unions of unskille...
Public SectorUnionMembership                    PUBLIC UNIONS     LG1     • For the first time in U.S. history, 7.6 millio...
Labor Legislationand CollectiveBargaining                    EFFECTS of LAWS on      LG2             LABOR UNIONS      • L...
Labor Legislationand CollectiveBargaining                    COLLECTIVE BARGAINING      LG2            and the PUBLIC SECT...
Union OrganizingCampaigns                   FORMING a UNION in the     LG2               WORKPLACE     • The National Labo...
Union OrganizingCampaigns                   WHY JOIN a UNION?     LG2        • Pro-union attitudes        • Poor          ...
Objectives ofOrganized LaborOver Time         LABOR/MANAGEMENT     LG3             AGREEMENTS     • Negotiated Labor-Manag...
Objectives ofOrganized LaborOver Time   UNION SECURITY AGREEMENTS     LG3     • Closed Shop Agreement -- Specified workers...
Objectives ofOrganized LaborOver Time         RIGHT-to-WORK LAWS     LG3     • Right-to-Work Laws -- Legislation that give...
Objectives ofOrganized LaborOver Time             STATES with     LG3          RIGHT-to-WORK LAWS                         ...
Resolving Labor-ManagementDisagreements             RESOLVING DISAGREEMENTS     LG3     • Labor contracts outline labor an...
Mediation andArbitration                USING MEDIATION and    LG3             ARBITRATION     • Bargaining Zone -- The ra...
Mediation andArbitration            The GRIEVANCE RESOLUTION    LG3              PROCESS                                  ...
Tactics Used inLabor-Management        TACTICS USED in CONFLICTSConflicts     LG4     • Tactics used by labor unions inclu...
Union Tactics                STRIKES and BOYCOTTS     LG4     • Strikes -- A strategy in which workers refuse to go to    ...
ManagementTactics             TACTICS USED in CONFLICTS    LG4    • Tactics used by management include:          - Lockout...
ManagementTactics             LOCKOUTS, INJUNCTIONS and    LG4          STRIKEBREAKERS    • Lockout -- An attempt by      ...
WALKING a FINE LINE                  (Making Ethical Decisions)• Shop-Til-You-Drop is seeking workers to fill the  jobs of...
Future of Unionsand Labor-Management         CHALLENGES FACING LABORRelations      LG4                  UNIONS      • The ...
Future of Unionsand Labor-ManagementRelations                   LABOR UNIONS in the FUTURE      LG4      • Union membershi...
Future of Unionsand Labor-ManagementRelations               UNION MEMBERSHIP by STATE      LG4                            ...
ProgressAssessment   PROGRESS ASSESSMENT    • What are the major laws that affected union      growth, and what does each ...
ExecutiveCompensation   COMPENSATING EXECUTIVES    LG5    • CEO compensation used to be determined by a      firm’s profit...
EXECUTIVE PAY REMAINS             on the RISE                      (Legal Briefcase)• Some companies defy common sense by ...
ExecutiveCompensation                                          PLAY BALL!    LG5                             Salaries in P...
ExecutiveCompensation   COMPENSATING EXECUTIVES    LG5             in the FUTURE    • Boards of directors are being challe...
Pay Equity             The QUESTION of PAY EQUITY     LG5     • Women earn 81% of what       men earn.     • This disparit...
Pay Equity             EQUAL PAY for EQUAL WORK     LG5        Equal Pay Act Factors that Justify Pay Differences     • Sk...
Pay Equity                      THE SALARY GENDER GAP     LG5           Source: U.S. Census Bureau, www.census.gov, access...
SexualHarassment             WHAT’S SEXUAL HARASSMENT    LG5    • Sexual Harassment -- Unwelcomed sexual       advances, r...
SexualHarassment             KINDS of SEXUAL HARASSMENT    LG5    • Quid pro quo sexual harassment involves threats      l...
SexualHarassment    YOU MAKE the CALL…    LG5    1. Two colleagues walk by you as one delivers the       punch line to a v...
Child Care             FACING CHILDCARE ISSUES     LG5     • The number of women in the workforce with       children unde...
Child Care                 BUSINESSES RESPONSE to     LG5               CHILD CARE     • Benefits can include:            ...
Elder Care             INCREASING ELDER CARE     LG5          CHALLENGES     • 29% of the adult population       are provi...
Elder Care                                ELDER CARE in the     LG5                       MODERN HOUSEHOLD     • More and ...
Drug Testing               DRUG USE in the WORKPLACE     LG5     • Alcohol is the most widely used drug - 6.5% of full    ...
Violence in theWorkplace                  VIOLENCE in the WORKPLACE     LG5     • OSHA reports homicides account for 16% o...
Violence in theWorkplace         WARNING SIGNS of POSSIBLE     LG5            WORKPLACE VIOLENCE     • Unprovoked outburst...
ProgressAssessment   PROGRESS ASSESSMENT    • How does top-executive pay in the U.S. compare      with top-executive pay i...
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Chap012

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Chap012

  1. 1. Chapter 12 Dealing with Union and Employee- Management IssuesMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Chapter Twelve LEARNING GOALS 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 12-2
  3. 3. Chapter Twelve LEARNING GOALS 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 12-3
  4. 4. 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 . 12-4
  5. 5. 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! 12-5
  6. 6. Employee-ManagementIssues 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 12-6
  7. 7. Employee-Management PUBLIC SECTORIssues LG1 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. • The Governor of Wisconsin challenged public sector labor unions by eliminating union bargaining rights for state and public employees. 12-7
  8. 8. Employee-ManagementIssues PUBLIC SECTOR JOBS LG1 Source: St. Louis Post-Dispatch, September 5, 2011 and U.S. Bureau of Labor Statistics, accessed August 2011. 12-8
  9. 9. Employee-ManagementIssues 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. 12-9
  10. 10. The Historyof OrganizedLabor HISTORY of LG1 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. 12-10
  11. 11. The TRIANGLE FIRE (Spotlight on Small Business)• 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 workplace balance in the U.S. 12-11
  12. 12. The Historyof OrganizedLabor EMERGENCE of LABOR LG1 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). 12-12
  13. 13. The Historyof OrganizedLabor INDUSTRIAL UNIONS LG1 • 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 12.2 million members. 12-13
  14. 14. Public SectorUnionMembership PUBLIC UNIONS LG1 • For the first time in U.S. history, 7.6 million of the 14.7 union members work in government. • Taxpayers, not stockholders, are paying the cost of union workers wages and benefits. • The huge state and local government revenue losses caused by the economic crisis put pressure to reduce wage and benefit costs. 12-14
  15. 15. Labor Legislationand CollectiveBargaining EFFECTS of LAWS on LG2 LABOR UNIONS • Labor unions’ growth and influence has been very dependent on public opinion and law. • The Norris-LaGuardia Act helped unions by 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. 12-15
  16. 16. Labor Legislationand CollectiveBargaining COLLECTIVE BARGAINING LG2 and the PUBLIC SECTOR • Collective bargaining among public union workers has become a key issue today. • One of the issues is the fact that public employees are paid by the taxpayers. • When it is perceived that public employees are 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. 12-16
  17. 17. Union OrganizingCampaigns FORMING a UNION in the LG2 WORKPLACE • 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. 12-17
  18. 18. Union OrganizingCampaigns WHY JOIN a UNION? LG2 • Pro-union attitudes • Poor management/employee relations • Negative organizational climate • Poor work conditions • Union’s reputation • Job security 12-18
  19. 19. Objectives ofOrganized LaborOver Time LABOR/MANAGEMENT LG3 AGREEMENTS • Negotiated Labor-Management Agreement (Labor Contract) -- Sets the terms under which labor and management will function over a period of time. • Union Security Clause -- Stipulates workers who reap union benefits must either join the union or pay dues to the union. 12-19
  20. 20. Objectives ofOrganized LaborOver Time UNION SECURITY AGREEMENTS LG3 • 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. 12-20
  21. 21. Objectives ofOrganized LaborOver Time RIGHT-to-WORK LAWS LG3 • Right-to-Work Laws -- Legislation that gives workers the right, under an open shop, to join or not to join a union. • The Taft-Hartley Act of 1947 granted states the power to outlaw union shop agreements. • Open Shop Agreement -- Agreement in right- to-work states that gives workers the right to join or not join a union, if one exists in their workplace. 12-21
  22. 22. Objectives ofOrganized LaborOver Time STATES with LG3 RIGHT-to-WORK LAWS 12-22
  23. 23. Resolving Labor-ManagementDisagreements RESOLVING DISAGREEMENTS LG3 • Labor contracts outline labor and management’s 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. 12-23
  24. 24. Mediation andArbitration USING MEDIATION and LG3 ARBITRATION • 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. 12-24
  25. 25. Mediation andArbitration The GRIEVANCE RESOLUTION LG3 PROCESS 12-25
  26. 26. Tactics Used inLabor-Management TACTICS USED in CONFLICTSConflicts LG4 • Tactics used by labor unions include: - Strikes - Boycotts - Work Slowdowns - Pickets 12-26
  27. 27. Union Tactics STRIKES and BOYCOTTS LG4 • 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. • Secondary Boycott -- An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott. 12-27
  28. 28. ManagementTactics TACTICS USED in CONFLICTS LG4 • Tactics used by management include: - Lockouts - Injunctions - Strikebreakers 12-28
  29. 29. ManagementTactics LOCKOUTS, INJUNCTIONS and LG4 STRIKEBREAKERS • 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. 12-29
  30. 30. WALKING a FINE LINE (Making Ethical Decisions)• Shop-Til-You-Drop is seeking workers to fill the jobs of striking workers.• Many students at your college are employees and others are supporting the strike.• You need money and legally it’s permissible for you to replace striking workers.• What will you do? What are the consequences? 12-30
  31. 31. Future of Unionsand Labor-Management CHALLENGES FACING LABORRelations LG4 UNIONS • The number of union workers is falling. • Many workers (like airline employees) have agreed to Givebacks -- Gains from labor negotiations are given back to management to help save jobs. 12-31
  32. 32. Future of Unionsand Labor-ManagementRelations LABOR UNIONS in the FUTURE LG4 • Union membership will include more white-collar, female and foreign-born workers than in the past. • Unions will take on a greater role in training workers, redesigning jobs and assimilating the changing workforce. • Unions will seek more job security, profit sharing and increased wages. 12-32
  33. 33. Future of Unionsand Labor-ManagementRelations UNION MEMBERSHIP by STATE LG4 12-33
  34. 34. ProgressAssessment PROGRESS ASSESSMENT • What are the major laws that affected union growth, and what does each one cover? • How do changes in the economy affect the objectives of unions? • What are the major tactics used by unions and by management to assert their power in contract negotiations? • What types of workers do unions need to organize in the future? 12-34
  35. 35. ExecutiveCompensation COMPENSATING EXECUTIVES LG5 • CEO compensation used to be determined by a firm’s profitability or increase in stock price. • Now, executives receive stock options and restricted stock that’s awarded even if the company performs poorly. 12-35
  36. 36. EXECUTIVE PAY REMAINS on the RISE (Legal Briefcase)• Some companies defy common sense by rewarding failure.• After posting $8 billion losses, Stanley O’Neal of Merrill Lynch left with a $165 million severance.• Executive pay in 2008-2009 was lower than it had been in years.• As the economy improved, CEO pay shot back up faster than it had in over 60 years. 12-36
  37. 37. ExecutiveCompensation PLAY BALL! LG5 Salaries in Professional Sports Source: KREM Spokane, www.krem.com, accessed June 2011. 12-37
  38. 38. ExecutiveCompensation COMPENSATING EXECUTIVES LG5 in the FUTURE • Boards of directors are being challenged concerning executive contracts. • Government and shareholders are putting pressure to overhaul executive compensation. • The passage of the Dodd- Frank Act was intended to give shareholders more say in compensation decisions. 12-38
  39. 39. Pay Equity The QUESTION of PAY EQUITY LG5 • Women earn 81% of what men earn. • This disparity varies by profession, experience and level of education. • Young women actually earn 8% percent more than male counterparts due to their higher graduation rates. 12-39
  40. 40. Pay Equity EQUAL PAY for EQUAL WORK LG5 Equal Pay Act Factors that Justify Pay Differences • Skill • Effort • Responsibility • Working Conditions 12-40
  41. 41. Pay Equity THE SALARY GENDER GAP LG5 Source: U.S. Census Bureau, www.census.gov, accessed June 2011. 12-41
  42. 42. SexualHarassment 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. 12-42
  43. 43. SexualHarassment 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. 12-43
  44. 44. SexualHarassment YOU MAKE the CALL… LG5 1. Two colleagues walk by you as one delivers the 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? 12-44
  45. 45. 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. 12-45
  46. 46. Child Care BUSINESSES RESPONSE to LG5 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. 12-46
  47. 47. Elder Care INCREASING ELDER CARE LG5 CHALLENGES • 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. 12-47
  48. 48. Elder Care ELDER CARE in the LG5 MODERN HOUSEHOLD • More and more boomers are taking care of their parents while still working. - 31% say that may delay their retirement. - The average cost of taking care of an aging parent is $5,534. - 76% say they enjoy taking care of their parents. - 54% say it made them closer. Source: Money, June 2010. 12-48
  49. 49. Drug Testing DRUG USE in the WORKPLACE LG5 • Alcohol is the most widely used drug - 6.5% of full time employees are considered heavy drinkers. • Over 8% of 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. 12-49
  50. 50. Violence in theWorkplace 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. 12-50
  51. 51. Violence in theWorkplace WARNING SIGNS of POSSIBLE LG5 WORKPLACE VIOLENCE • Unprovoked outbursts of anger or rage • Threats or verbal abuse • Repeated suicidal comments • Paranoid behavior • Increased frequency of domestic problems 12-51
  52. 52. ProgressAssessment 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? 12-52

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