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Bovee Bia8 Im 12
Bovee Bia8 Im 12
Chapter 12
LABOR RELATIONS
Chapter Overview
Chapter Outline
2. Management can provide factual information about the union but they
cannot threaten employees for engaging in union activities
D. Arbitration can also be used to interpret or apply the provisions of the CBA
Classroom Activities
Details:
1. Break students into groups of four or five. (2 minutes)
2. Ask half of the groups to come up with some major benefits of unions, and
ask the other half of the groups to come up with some major pitfalls of
unions. Elect a group leader/facilitator and a note taker in each group. Ask
each group to finalize their viewpoints from notes and then elect group
representatives or speakers. (10 minutes)
3. Ask representatives/speakers from two opposing teams to debate each other
in front of the whole class, using ideas generated in prior group discussions.
One group will address the benefits of unions, while the other will counter
with pitfalls of unions. The teams may go back and forth, attacking each
other’s viewpoints and rationales. (8 minutes)
End-of-Chapter
Behind the Scenes
Boeing and the IAM: A Project Saved, But Strife Remains
12-2 Would it be fair to the residents of Washington state for Boeing to get
nearly $9 billion in tax breaks–money that could have been used for
schools, roads, and other public needs? Why or why not?
Student responses will vary according to personal opinions. Some might feel it
is not fair to the general public to allocate the funds to a private company
instead, while others might believe that this investment is worth it to keep the
jobs in Washington, and secure the resulting benefits this has for the economy.
(LO: 12.4; AACSB: Ethical understanding and reasoning)
12-3 Is it economically healthy for the United States when individual states
compete against one another to attract companies, as Washington and
South Carolina have done in the case of Boeing, for example? Why or why
not?
Student responses will vary according to personal opinions. Some might feel it
is not wise for states to undercut each other like this, while others might feel
that this helps keep companies lean and competitive. (LO: 12.4; AACSB:
Analytical thinking)
layoffs; better working conditions and workplace safety; formal processes for
employee grievances, discipline, and other matters; as well as solidarity and
recognition. (LO: 12.1)
12-5 How did the Wagner Act affect the balance of power between unions and
employers?
The Wagner Act tilted the balance of power towards unions by affirming and
protecting rights of employees to join and assist labor unions, and outlawing
attempts by employers to interfere with employees’ rights to organize unions.
Union membership grew dramatically in the decade that followed, to the point
where unions could virtually shut down entire industries through strikes. (LO:
12.2)
12-10 How does the relationship between labor and management reflect the
potential for conflict in the stakeholder model?
The stakeholder model states that various stakeholders of a company,
including both management and employees, may have conflicting interests
and motives. On one hand, management’s main goal for the company is to
maximize profitability. Such a goal can be partially achieved by minimizing
labor costs. Labor union’s main goal, on the other hand, is to maximize its
members’ wages and benefits. In this case, the goals of management and labor
unions are in direct conflict with each other. (LO: 12.1; AACSB: Analytical
thinking)
12-11 What are some of the explanations for the decline in labor union
membership in the past 50 years?
Students’ answers will vary. True to the often-combative nature of the union-
management relationship, each side blames the decline of organized labor on
the other. Some business leaders say unions don’t have anything relevant to
offer workers in today’s environment of more enlightened and supportive
management. Union leaders often accuse management of using every tactic
they can think of, both legal and illegal, to thwart unionization efforts. (LO:
12.6; AACSB: Analytical thinking)
12-12 Why have alt-labor groups caught on in the past few years, when the
union model is already in place as a way to advocate for workers?
Student responses will vary. Answers might include the idea that this
movement is trying to take power back into the hands of the rank and file,
reacting negatively to union leadership, which may have grown so powerful as
to be seen as an “other” with its own agenda in the same way that
management can. (LO: 12.6; AACSB: Analytical thinking)
12-15 What advice would you give the founders of a new company who want to
avoid unionization efforts among their workforce as the company grows?
Students’ answers will vary, but at a minimum they will need to advise the
founders to tread carefully and learn what they are allowed and not allowed to
do under the Wagner Act. For instance, managers and owners are allowed to
provide factual information about the union and labor relations laws and share
personal experiences about life in a unionized workplace. However, they are
not allowed to threaten employees for engaging in union activities or
interrogate employees regarding union sympathies or voting plans. (LO: 12.3;
AACSB: Application of knowledge)
12-16 A co-worker is arguing that the President should not have the authority
to issue an injunction to stop a strike because doing so violates the legal
rights of workers. How would you respond?
Visit MyBizLab for suggested answers. (LO: 12.2; AACSB: Application of
knowledge)
In a brief email message to your instructor, summarize this dilemma and its
possible effects on employee-management relations.
Students’ email messages will vary depending on personal opinions. (LO: 12.1;
AACSB: Information technology)
12-19 Should the federal government step in and mandate one set of union laws
for all 50 states so that companies can play states against each other in
labor negotiations? Why or why not?
Visit MyBizLab for suggested answers. (LO: 12.4; AACSB: Ethical
understanding and reasoning)
CHECKPOINTS
LEARNING OBJECTIVE 12.1: Explain the role of labor unions, and contrast
the perspectives of employees and employers on the issue of unionization.
Critical thinking:
(1) Why is it so difficult to come up with a single conclusive answer about the effects
of unionization on business productivity?
In a review of 73 studies on unionization, researchers found 45 studies that showed a
positive effect of unions on productivity and 28 studies that showed negative effect.
The same analysis suggests that unions have had a net negative effect on productivity
in the UK and Japan but a net positive effect on productivity in the U.S.
(2) How do labor relations demonstrate the stresses inherent in the stakeholder
model?
Labor relations involve managers and employees, two of the major stakeholders for
businesses. They have conflicting interests and goals, in that managers want to
reduce labor costs to maximize profitability, while employees and unions want to
maximize the income and benefits of employees. Such conflicts are consistent with
the stresses inherent in the stakeholder model.
(2) Would you rather be promoted on the basis of seniority or of merit? Why?
Students’ answers will vary depending on personal opinions.
Critical thinking:
(1) Why are disputes between labor and management often more complicated than
just matters of money?
Such disputes are often more complicated than just matters of money because
supporters and opponents of unions often have profoundly different beliefs about
fundamental economic principles and the ideal nature of society itself.
(2) Would you agree that the struggle between labor and management has, to at least
some degree, been a matter of legislative overcorrection? Why or why not?
Students’ answers may vary, but the statement is true to a certain extent since history
has indicated the back-and-forth power shift between unions and management as
legislators passed laws that alternately favored unions and management.
(2) Given the long and complex history of unionization, many people now have an
emotional response to the word union. Do you respond positively or negatively when
you hear the word? Why?
Students’ answers will vary depending on personal opinions.
Critical thinking:
(1) Why does the concept of an agency shop exist, since employees in such facilities
aren’t required to join the union?
The concept of an agency shop exists even though employees in such facilities aren’t
required to join the union because it effectively “forces” the employees to join the
union. Since employees in an agency shop are required to pay the equivalent of union
dues even if they are not required to join the union, most employees in agency shop
situations would just go ahead and join the union—“I might as well get the benefits
since I am already paying.”
(2) Why do union organizers usually gather authorization cards from well over 50
percent of the employees in a bargaining unit before petitioning the NLRB for a
certification election?
Research indicates that a significant number of employees who sign cards end up
voting against the union in the secret-ballot election.
(2) Union supporters argue that all workers benefit from the improvements in
working conditions that unionization has helped bring about over the years; do you
agree that all workers are in unions’ debt? Why or why not?
Students’ answers will vary depending on personal opinions.
Critical thinking:
(1) Given the history of union-management relations, why do you think mediation
tends to be so successful at resolving bargaining impasses?
Mediation tends to be more successful in resolving bargaining impasses since an
impartial third party is involved to study the situation, explore new options, improve
communication, and make recommendations for resolution of the differences.
Another important reason for its success is that it does not require a legally binding
settlement, as in the case of arbitration. In arbitration, both sides will lose the
freedom to negotiate and the arbitrator could decide wage, benefits, work rules and
other essential aspects of operating a business, even though the arbitrator may have
little or no experience in that industry.
(2) Would you refuse to shop at a store that was being picketed by union members?
Why or why not?
Students’ answers will vary depending on personal opinions.
Critical thinking:
(1) Is it in a union’s best interest for its members to comply with all the terms of a
CBA? Why or why not?
Yes. A union is in the best negotiation position with the management when its
members are in compliance with the terms of a collective bargaining agreement.
(2) What risks do unions and employers take in deciding to use arbitration?
In arbitration, unions and employer will lose the freedom to negotiate and an
arbitrator could decide wage, benefits, work rules and other essential aspects of
operating a business, even though that the arbitrator may have little or no experience
in that industry.
(2) Do you believe that employees should be given multiple chances after committing
minor offenses in the workplace, as progressive discipline procedures allow? Why or
why not?
Students’ answers will vary depending on personal opinions.
Critical thinking:
(1) What evidence would you need to reach a solid conclusion about why union
membership has declined in the private sector over the past 50 years?
Students’ answers may vary, but true to the often-combative nature of the union-
management relationship, each side blames the decline of organized labor on the
other. Some business leaders say unions don’t have anything relevant to offer
workers in today’s environment of more enlightened and supportive management.
Union leaders often accuse management of using every tactic they can think of, both
legal and illegal, to thwart unionization efforts.
(2) Why do you suppose different surveys generate such wildly varying responses to
questions about whether nonunion employees would like to join a union?
Responses to such surveys vary depending on who is doing the asking and how the
question is phrased. For instance, answers become very different when respondents
were asked a simple yes or no question rather than “definitely” and “probably,”
regarding whether nonunion employees want to join the union or not.
(2) Would you support the efforts of an alt-labor group if attaining its goals would
result in higher prices for you as a consumer? Why or why not?
Students’ answers will vary depending on personal opinions.