Chap 12a dealing with employee management issues and relationships

PUBLIC SECTOR LABOR UNIONS • Public sector union members work for governments as teachers, firefighters, police officers, etc.. HISTORY of ORGANIZED LABOR • As early as 1792, shoemakers

Chapter Twelve

Dealing with Employee-Management Issues and Relationships

Copyright © 2010 by the McGraw-Hill Companies, Inc All rights reserved.

McGraw-Hill/Irwin

ORGANIZED LABOR

employee-management negotiations of job-related issues

• Labor unions were responsible for:

- Minimum wage laws

PUBLIC SECTOR

LABOR UNIONS

• Public sector union members work for governments as teachers, firefighters, police

officers, etc

• Many states face serious debt problems and want to cut labor costs But states with

public sector unions have limited ability to cut those costs

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GOALS of ORGANIZED LABOR

• 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

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Labor Union History

HISTORY of

ORGANIZED LABOR

• 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

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EMERGENCE of LABOR ORGANIZATIONS

• Knights attracted close to 800,000 members but fell from

prominence after a riot in Chicago

craft unions that championed fundamental labor issues; formed in

1886.

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INDUSTRIAL UNIONS

in mass production industries.

of unskilled workers; broke away from the AFL in 1935 and rejoined in

1955.

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

12.2million members

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Labor Legislation

EFFECTS of LAWS on

LABOR UNIONS

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Pro-Labor Legislation

EFFECTS of LAWS on

LABOR UNIONS

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Paved way for union growth

• 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.

Norris-La Guardia Act

National Labor Relations Board

Certification and Decertification

EFFECTS of LAWS on

LABOR UNIONS

• Collective Bargaining The process whereby union and management representatives

form an agreement, or contract, for employees.

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FORMING a UNION

in the WORKPLACE

• The National Labor Relations Board (NLRB) was created to oversee

labor-management issues and provide guidelines for unionization

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FORMING a UNION

in the WORKPLACE

bargaining agent for a group of employees.

them.

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EFFECTS of LAWS on

LABOR UNIONS

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Pro-Management Legislation

LABOR/MANAGEMENT

AGREEMENTS

union or pay dues to the union.

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UNION SECURITY AGREEMENTS

being hired for a job.

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UNION SECURITY AGREEMENTS

• 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.

However…

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UNION SECURITY AGREEMENTS

This led to the creation of the Agency Shop Agreement

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UNION SECURITY AGREEMENTS

• Agency Shop Agreement Allows employers to hire nonunion workers who don’t have

to join the union, but must pay fees.

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UNION SECURITY AGREEMENTS

Also,

because the Taft-Hartley Act granted states the power to outlaw union shop

agreements, some states passed…

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RIGHT-to-WORK LAWS

join or not to join a union,

which created the…

join or not join a union, if one exists in their workplace.

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STATES with

RIGHT-to-WORK LAWS

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LABOR / MANAGEMENT

AGREEMENTS

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LABOR/MANAGEMENT

AGREEMENTS

which labor and management will function over a period of time.

The CBA

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Using Mediation and Arbitration

USING MEDIATION and

ARBITRATION

final contract offers that each side will consider before an impasse is reached.

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USING MEDIATION and

ARBITRATION

key contract issues.

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Resolving Contract Disagreements

• Labor contracts outline labor and management’s rights and serves as a guide to

workplace relations

negotiated agreement.

employee interests on a daily basis.

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The GRIEVANCE RESOLUTION PROCESS

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TACTICS USED in CONFLICTS

• Tactics used by labor unions include:

STRIKES and BOYCOTTS

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

• Primary Boycott When a union encourages both its

members and the general public to not 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’s the subject of a

primary boycott.

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UNION TACTICS USED in CONFLICTS

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TACTICS USED in CONFLICTS

• Tactics used by management include:

- Lockouts

- Injunctions

- Strikebreakers

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LOCKOUTS, INJUNCTIONS and STRIKEBREAKERS

thus cutting off workers’ pay.

something.

resolved; called scabs by unions.

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CHALLENGES FACING

LABOR UNIONS

• The percentage 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.

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LABOR UNIONS in the FUTURE

• 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

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COMPENSATING EXECUTIVES

• 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

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COMPENSATING EXECUTIVES

in the FUTURE

• Boards of directors are being challenged concerning executive contracts

• Government and shareholders are putting pressure to overhaul executive

compensation

• Financial crisis of 2008-2009 strengthened the

argument of shareholders concerning limits on

compensation

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The QUESTION of PAY EQUITY

• Women earn 81% of what men earn

• This disparity varies by profession, experience and

level of education

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EQUAL PAY for EQUAL WORK

Equal Pay Act Factors that Justify Pay Differences

THE SALARY GENDER GAP

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

15 to 24

Women - $23,357 Men - $26,100

25 to 44

Women - $41,558 Men - $55,286

45 to 64

Women - $44,808 Men - $67,040

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WHAT’S SEXUAL HARASSMENT

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

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KINDS of SEXUAL HARASSMENT

• 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

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CHILDCARE ISSUES

• 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

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BUSINESSES RESPONSE to

CHILD CARE

• Benefits can include:

- Discounts with childcare providers.

- Vouchers that offer payment for childcare.

- Referral services identify high-quality childcare

facilities.

- On-site childcare centers

- Sick-child centers.

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FACING CHILDCARE ISSUES

• Who should pay for the cost of childcare - a dividing

issue among employees and businesses, and in the

workplace

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INCREASING ELDER CARE 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

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ELDER CARE in the

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.

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DRUG USE in the WORKPLACE

• Alcohol is the most widely used drug - 6.5% of full time employees are considered

VIOLENCE in the WORKPLACE

• 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

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