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Chapter 12


          Dealing with
           Union and
           Employee-
          Management
            Issues



McGraw-Hill/Irwin        Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
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
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
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
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
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
                                                        12-6
Employee
-Management       PUBLIC SECTOR
Issues
    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
Employee
-Management
Issues                   PUBLIC SECTOR JOBS
    LG1




          Source: St. Louis Post-Dispatch, September 5, 2011 and U.S. Bureau of Labor Statistics, accessed August 2011.
                                                                                                                          12-8
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.
                                         12-9
The History
of Organized
Labor
                  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
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
The History
of Organized
Labor
               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
The History
of Organized
Labor
                 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
Public Sector
Union
Membership
                    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
Labor Legislation
and Collective
Bargaining
                    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
Labor Legislation
and Collective
Bargaining
                    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
Union Organizing
Campaigns
                   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
Union Organizing
Campaigns
                   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
Objectives of
Organized Labor
Over 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
Objectives of
Organized Labor
Over 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
Objectives of
Organized Labor
Over 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
Objectives of
Organized Labor
Over Time             STATES with
     LG3          RIGHT-to-WORK LAWS




                                       12-22
Resolving Labor-
Management
Disagreements
             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
Mediation and
Arbitration
                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
Mediation and
Arbitration
            The GRIEVANCE RESOLUTION
    LG3              PROCESS




                                       12-25
Tactics Used in
Labor-
Management        TACTICS USED in CONFLICTS
Conflicts
     LG4




     • Tactics used by labor unions include:
           - Strikes
           - Boycotts
           - Work Slowdowns
           - Pickets




                                               12-26
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
Management
Tactics
             TACTICS USED in CONFLICTS
    LG4


    • Tactics used by management include:


          - Lockouts


          - Injunctions


          - Strikebreakers



                                            12-28
Management
Tactics
             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
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
Future of Unions
and Labor-
Management         CHALLENGES FACING LABOR
Relations
      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
Future of Unions
and Labor-
Management
Relations
                   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
Future of Unions
and Labor-
Management
Relations
               UNION MEMBERSHIP by STATE
      LG4




                                           12-33
Progress
Assessment   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
Executive
Compensation   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
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
Executive
Compensation
                                          PLAY BALL!
    LG5                             Salaries in Professional Sports




          Source: KREM Spokane, www.krem.com, accessed June 2011.
                                                                      12-37
Executive
Compensation   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
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
Pay Equity
             EQUAL PAY for EQUAL WORK
     LG5        Equal Pay Act Factors that Justify Pay Differences



     • Skill

     • Effort

     • Responsibility

     • Working Conditions



                                                                     12-40
Pay Equity
                      THE SALARY GENDER GAP
     LG5




           Source: U.S. Census Bureau, www.census.gov, accessed June 2011.

                                                                             12-41
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.
                                                              12-42
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.



                                                        12-43
Sexual
Harassment    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
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
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
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
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
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
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.


                                                       12-50
Violence in the
Workplace         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
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?
                                                         12-52

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Chap012

  • 1. Chapter 12 Dealing with Union and Employee- Management Issues McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 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. 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. 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. 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. 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 12-6
  • 7. Employee -Management PUBLIC SECTOR Issues 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. Employee -Management Issues 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. 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. 12-9
  • 10. The History of Organized Labor 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. 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. The History of Organized Labor 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. The History of Organized Labor 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. Public Sector Union Membership 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. Labor Legislation and Collective Bargaining 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. Labor Legislation and Collective Bargaining 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. Union Organizing Campaigns 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. Union Organizing Campaigns 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. Objectives of Organized Labor Over 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. Objectives of Organized Labor Over 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. Objectives of Organized Labor Over 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. Objectives of Organized Labor Over Time STATES with LG3 RIGHT-to-WORK LAWS 12-22
  • 23. Resolving Labor- Management Disagreements 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. Mediation and Arbitration 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. Mediation and Arbitration The GRIEVANCE RESOLUTION LG3 PROCESS 12-25
  • 26. Tactics Used in Labor- Management TACTICS USED in CONFLICTS Conflicts LG4 • Tactics used by labor unions include: - Strikes - Boycotts - Work Slowdowns - Pickets 12-26
  • 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. Management Tactics TACTICS USED in CONFLICTS LG4 • Tactics used by management include: - Lockouts - Injunctions - Strikebreakers 12-28
  • 29. Management Tactics 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. 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. Future of Unions and Labor- Management CHALLENGES FACING LABOR Relations 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. Future of Unions and Labor- Management Relations 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. Future of Unions and Labor- Management Relations UNION MEMBERSHIP by STATE LG4 12-33
  • 34. Progress Assessment 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. Executive Compensation 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. 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. Executive Compensation PLAY BALL! LG5 Salaries in Professional Sports Source: KREM Spokane, www.krem.com, accessed June 2011. 12-37
  • 38. Executive Compensation 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. 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. Pay Equity EQUAL PAY for EQUAL WORK LG5 Equal Pay Act Factors that Justify Pay Differences • Skill • Effort • Responsibility • Working Conditions 12-40
  • 41. Pay Equity THE SALARY GENDER GAP LG5 Source: U.S. Census Bureau, www.census.gov, accessed June 2011. 12-41
  • 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. 12-42
  • 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. 12-43
  • 44. Sexual Harassment 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. 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. 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. 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. 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. 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. 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. 12-50
  • 51. Violence in the Workplace 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. 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? 12-52

Editor's Notes

  1. Company: Bright Horizons
  2. See Learning Goal 1: Trace the history of organized labor in the United States. Many of the benefits that workers ’ enjoy today are due to the battles unions have fought over the past 100 years. Students are often surprised that a little over 100 years ago the average work week was between 60 to 80 hours. The 40 hour work week is a direct result of unions.
  3. See Learning Goal 1: Trace the history of organized labor in the United States.
  4. See Learning Goal 2: Discuss the major legislation affecting labor unions. Public Sector Jobs This slide shows the amount of public sector jobs in today’s U.S. workforce. Of the 131.1 million total U.S. jobs (nonfarm), the public sector holds 21.4 million jobs. Federal government workers stat excludes postal workers. Local government workers stat excludes teachers.
  5. See Learning Goal 1: Trace the history of organized labor in the United States.
  6. See Learning Goal 1: Trace the history of organized labor in the United States.
  7. See Learning Goal 1: Trace the history of organized labor in the United States. The 100th anniversary of the Triangle Shirtwaist fire came at a time when public union workers in Wisconsin, Ohio, and other states battled to retain their right to collectively bargain.
  8. See Learning Goal 1: Trace the history of organized labor in the United States.
  9. See Learning Goal 1: Trace the history of organized labor in the United States.
  10. See Learning Goal 1: Trace the history of organized labor in the United States. Today, at least seventeen states are trying to restrict union rights and cut labor costs.
  11. See Learning Goal 2: Discuss the major legislation affecting labor unions.
  12. See Learning Goal 2: Discuss the major legislation affecting labor unions. In states like Wisconsin and Ohio, public and private union members have joined together to fight any efforts to take away collective bargaining among public employees.
  13. See Learning Goal 2: Discuss the major legislation affecting labor unions. The National Labor Relations Act (often referred to as the Wagner Act) created the NLRB.
  14. See Learning Goal 2: Discuss the major legislation affecting labor unions. Why Join a Union? This slide lists some of the key reasons why a person might consider joining a union. The power of unions has waned as the economy has shifted from an industrial economy into a service based economy. Ask students: Are unions necessary in today ’s modern working environment?
  15. See Learning Goal 3: Outline the objectives of labor unions. Unions attempt to address their most pressing concerns in the labor contract.
  16. See Learning Goal 3: Outline the objectives of labor unions.
  17. See Learning Goal 3: Outline the objectives of labor unions.
  18. See Learning Goal 3: Outline the objectives of labor unions. This map can be used as the basis for an interesting classroom exercise. The United States ’ auto industry has been in the news with the financial difficulties of General Motors and Chrysler well chronicled. Have students use the internet to research the location of any new auto plants in the United States. Research will uncover many new auto related jobs are in right-to-work states. For example, a recent article in the Boston Globe profiled Alabama’s auto related job growth. In 2001, Alabama had 21,000 auto related jobs that number now stands at over 48,000. Many would argue this trend of locating in the southeast is due to the states’ right-to-work laws.
  19. See Learning Goal 3: Outline the objectives of labor unions.
  20. See Learning Goal 3: Outline the objectives of labor unions. In 2011, the National Football League and National Football League Players Association asked for the assistance of a federal mediator in their attempt to forge a new contract between the players and the league.
  21. See Learning Goal 3: Outline the objectives of labor unions.
  22. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
  23. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
  24. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
  25. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. Employers have had the right to replace striking workers since a 1938 Supreme Court ruling, but this tactic was used infrequently until the 1980s.
  26. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
  27. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. The percentage of union membership has fallen over the past fifty years. In 1945 35.5% of all workers were unionized; today that number stands at only 12.4%.
  28. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. Both public and private sector union members now face challenges as they try to maintain remaining wage and fringe benefit gains achieved in past negotiations.
  29. See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future. Union Membership by State The slide presents union membership by state in the U.S. Washington, California, New York, Hawaii and Alaska lead the states with unionization rates greater than 17%. Most of the Southern states (Arkansas, Louisiana, Tennessee, Mississippi, North Carolina, South Carolina, Virginia, and Georgia) have the lowest percentage of union workers with unionization rates less than 4.9%. Today the largest union in the United States is the Service Employees International Union (SEIU) with 2.2 million members.
  30. 1. The major laws that affected union growth are: - The Norris-LaGuardia Act prohibited employers from using contracts that forbid union activities and paved the way for union growth in the United States. - The National Labor Relations Act or Wagner Act allowed collective bargaining and created the National Labor Relations Board. - The Fair Labor Standards Act set a minimum wage and maximum basic hours for work. - The Labor-Management Relations Act or Taft-Hartley Act amended the Wagner Act and permitted states to pass laws prohibiting compulsory union membership, set up methods to deal with strikes that impact national health and safety, closed-shop agreements and prohibited wage payments for work not performed (featherbedding). This law weakened union power in the U.S. - The Labor-Management Report and Disclosure Act or Landrum-Griffin Act amended theTaft-Hartley Act and Wagner Act, guaranteed individual rights of union members in dealing with their union such as the right to nominate candidates for union office, vote in union elections, attend and participate in union meetings, vote on union business and examine union records and accounts. The goal of this legislation was to eliminate union corruption. 2. Unions and their objectives have frequently shifted with social and economic trends. In the 1970s, the primary objective was additional pay and benefits; while in the 1980s unions focused on job security. During the 1990s and 2000s, job security remained a key issue as unions tried to cope with global competition and outsourcing. 3. The major tactics used by unions include: strikes, boycotts, work slowdowns and pickets. Management tactics include: lockouts, injunctions and bringing in strikebreakers. 4. To remain relevant, unions must attract new members. This includes more professional, female and foreign born workers. Both the Teamsters Union and Service Employees International Union are targeting workers in health care, technology and finance.
  31. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Peter Drucker suggested CEO pay should be no more that 20x the lowest paid employee. The average is now 400x.
  32. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. With unemployment still high, would companies be better off hiring new workers instead of using their newly found profits for executive pay?
  33. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Play Ball! Ask students: What do you expect to make when you graduate? What do these minimum salaries say about what society values? (Student answers will vary.) Ask students: Why are the minimum and highest salaries paid to female basketball players so much lower than the male players?
  34. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  35. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Today women earn almost 60 percent of the bachelor ’s and master’s degrees awarded.
  36. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Equal Pay for Equal Work This slide presents the Equal Pay Act factors that justify pay differences: skill, effort, responsibility, and working conditions. The Equal Pay Act prohibits unequal pay to men and women who perform jobs that require substantially the same skills, efforts, responsibilities, etc. Ask the students: Is it fair that different genders receive different pay? (Most will say “NO.”) Yet, in the U.S., women earn only about 80% of what men earn. There are, however, significant disparities by profession, education level, etc.
  37. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. The Salary Gender Gap This slide presents the inequity in earnings: what women of certain ages earn compared with the average salary earned by a male in the same age range. Ask the students: What are some of the reasons behind this salary gender gap? ( Answers will vary but could include issues like women working part-time to raise children or women leaving the workforce due to family issues. ) If time permits have students read Chapter 3 of Thomas Sowell ’s awarding winning book, Economic Facts and Fallacies, which explores this issue in depth and will provide for a rich classroom discussion.
  38. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Students should realize that sexual harassment covers all employees as well as vendors, suppliers and others who come in contact with company employees. Businesses need to take all allegations seriously and develop a protocol for investigating each claim.
  39. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  40. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. You Make the Call… A sk the students: Have you felt uncomfortable in situations that can be described as sexual harassment? How about the male students in class? Discuss the situations on the slide with students and then specifically discuss what constitutes sexual harassment. 3. For the conduct to be considered illegal under specific conditions: The employee ’s submission to such conduct is explicitly or implicitly made a term or condition of employment, or an employee’s submission to or rejection of such conduct is used as the basis for employment decisions affecting the worker’s status. If the conduct unreasonably interferes with a worker ’s job performance or creates an intimidating, hostile or offensive work environment.
  41. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  42. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  43. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. As the population ages caring for one ’s parents and other relatives will be a bigger employment related issue. Proactive companies will develop benefits to meet this challenge.
  44. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Elder Care in the Modern Household As boomers ’ parents age, more and more have started bringing them into their homes. 25% of boomers expect to live with their parents again. Ask students: Do you think this will delay more retirements? What does this mean for the young workforce?
  45. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  46. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
  47. See Learning Goal 5: Assess some of today ’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. Warnings Signs of Possible Workplace Violence Managers and workers must be on the lookout for possible signs of workplace violence. Most companies do not have formal training or a formal policy to deal with workplace violence. Ask students to discuss the following question: What actions can management take to prevent workplace violence? ( Firms that maintain positive employee relations tend to experience fewer problems. The key to prevention of workplace violence is being proactive.)
  48. Executive pay in the U.S. is significantly higher than in other countries. For example, the typical European CEO earns only about 40 percent of what their U.S. counterpart makes. Equal pay for equal work refers to giving equal pay to men and women who do the same job. This concept was codified in the 1963 Equal Pay Act. Pay equity goes beyond this concept and says people in jobs that require similar levels of education, training, or skills should receive equal pay. For example, the pay of an occupation traditionally considered a women ’s job, such as a bank teller, should pay the same as a truck driver typically considered a man’s job. Sexual harassment refers to any unwelcome sexual advance, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment. This behavior is considered illegal if the conduct unreasonably interferes with a workers ’ job performance or creates an intimidating, hostile, or offensive work environment. It is also considered illegal if the sexual harassment constitutes a quid pro quo. Issues of childcare or elder care are of concern to employers, since these issues account for reduced productivity, absenteeism and high turnover. Another issue to consider is who pays for the care of a child or an aging parent. Companies are addressing these issues by arranging discounts at national child care chains, subsidizing payment for childcare, developing referral services to identify high quality providers of care, creating on-site child care centers or sick-child centers, offering health-spending accounts allowing workers to set aside pretax dollars for elder-care expenses and offering flexible work schedules.