final written responses

Most states invoke some form of third-party dispute resolution to settle contract disputes that occur in the public sector. Explain the main dispute resolution options available to state lawmakers and discuss the degree of control both the third party neutral and the parties themselves have over the process

The three primary third-party dispute resolution mechanisms are mediation, arbitration, and fact-finding. In mediation, the neutral party is a mediator who tries to facilitate an agreement but lacks the power to force an agreement. A mediator has a high level of control over the negotiating process but not the outcome. In arbitration, the neutral third party is an arbitrator who forces an agreement on both parties by issuing a ruling that specifies the exact settlement terms. An arbitrator has a high level of control over the outcome but no involvement in the negotiating process. In fact-finding, the neutral third party is a fact finder who investigates the dispute and makes nonbinding recommendations for a settlement. A fact finder lacks control over both the process and the outcome.

What are the advantages and disadvantages to a unilateral grievance resolution method?

The key advantages to a unilateral grievance resolution method is expediency and, for the decision-maker, control. However, the disadvantages typically outweigh the advantages. Without a balanced dispute resolution process, workers are at the mercy of employers and markets. Unions and workers must rely on economic pressure such as strikes to challenge unilateral decisions. This is exactly the situation that the NLRA was intended to prevent. A grievance procedure that formally recognizes management and employee perspectives will help to provide stability and predictability in contract administration.

Implementing a new strategy for labor-management relations is difficult. What challenges does an organization that wants to make a change face and what are some of the strategies it might use to overcome resistance?

The key challenge that organizations face when making a change to a new labor-management strategy is resistance to change. Making change involves communication, building new competencies, establishing supportive policies and procedures, and motivating appropriate behaviors. To address resistance to change, the organization has several options. If it attempts to force change, it can use a variety of tactics including integrative and distributive bargaining, manipulation and co-optation, and explicit or implicit coercion. Second, it can foster change using education and communication, participation and involvement, and/or facilitation and support

Describe the four types of flexibility that are emphasized by businesses today. What are the employee concerns associated with each type of flexibility?

Traditional job control unionism conflicts with the need for greater flexibility in several ways.First, standardized wages tied to jobs rather than merit and ability-to-pay prevent wage flexibility and pay-for-performance. Detailed systems of narrow job classifications are a barrier to functional flexibility because it is difficult to reassign workers to different tasks in response to shifts in market demand. Restrictive work rules similarly limit functional flexibility and may also restrict employment flexibility through the use of part-time or temporary workers, subcontracting, or layoffs. Seniority-based procedures make it difficult to transfer and promote workers on the basis of skills and merit. Extensive bumping rights make frequent changes in deploying labor cumbersome. Lengthy contracts make it hard to achieve flexibility because changes cannot be made easily during the life of the contract. Reliance on past precedence in grievance decisions makes it hard to change processes and innovate. Finally, job control unionism encourages, rather than discourages, sharp divisions between labor and management that inhibit collaboration and decision-making based on shared common interests.

Evaluate the following statement: Due to changes in the environment of business and labor relations since the early 1970s, U.S. business can no longer afford to rely on traditional mass manufacturing methods of management. How has the environment changed and what challenges do these changes pose for the future?

Up until around 1974, U.S. manufacturers dominated both the U.S. and world economies. Monopoly profits in the hands of a few large firms were used to support generous wages and benefits in union contracts. Union workers enjoyed an increasing standard of living. With the advent of globalization, however, competition in domestic and international markets increasedand employers found their profit margins shrinking. This, in turn, put downward pressure on wages and benefits as well as pressure on jobs. Traditional mass manufacturing methods were not nimble enough to change to a much more diversified in consumer market that valued quality and differentiation over standardization and low price. Today's companies need greater flexibility, higher quality, as well as an ability to maintain lower costs. U.S. firms can no longer compete with low way countries in providing low cost, cheap, standardized products and are turning to higher quality, innovative products which are not amenable to a mass production environment. Hence, work organization in the U.S. must also adapt

Describe the seven tests of just cause. How do these tests protect the rights of employees?

When making a determination as to whether an employee was discharged for just cause, arbitrators will apply seven criteria. First, they will determine whether employees were given adequate notice or warning of the consequences of their conduct. Second, they will determine whether the rules were reasonably related to the discharged employee's performance. Third, they will ascertain whether the alleged violation was thoroughly investigated before discipline was meted. Fourth, they will evaluate the investigation procedures to determine whether they were fair and objective. Fifth, they will assess the proof, looking for "convincing" proof of guilt on the part of the employee. Sixth, they will examine similar past situations to ensure that the discipline was not discriminatory in nature. Finally, they will judge whether the discipline was reasonably related to the worker's record and the severity of the conduct.

What is "associational unionism" and why might it be better suited to meet the needs of today's labor force than the traditional model of unionism.

Associational unionism recognizes the fact the today's workers have multiple interests - political, occupational, industry-specific, and company-specific. Often they are interested in joining associations that pursue these interests in a nonadversarial way, through training, education, setting professional standards, and political lobbying. Associational unions would try to blend the multiple-interests and services currently provided by professional associationswith the power of unions to create a new organizational form. These organizations would havethe power to negotiate contracts and strike but, like a professional association, they could also use political pressure and publicity to achieve their ends and would not focus exclusively on issues related to the collective bargaining relationship. The associational model is not based on exclusive representation - workers would be able to join various associations that meet their specific interests and needs.

How has globalization affected the Australian labor relations system? How have unions responded to the threats posed by globalization?

Australian unions have been organized mostly on a craft or occupational basis. Australian labor agreements were determined on the basis of arbitration awards whereby a federal or state arbitration commission would issue an award specifying minimum standards for pay and working conditions for an entire occupation. Unions typically had members in more than one industry and managers often had to deal with multiple unions. Unions were often able to negotiate better contract terms, individually, with an employer than the minimum that was provided as a result of the arbitration awards process. Since the advent of globalization, union density has declined and, in response, unions have actively pursued a merger strategy to form fewer, but larger, unions that are more general in their membership. The centralized awards system has been increasingly supplanted by decentralized, enterprise level bargaining

Describe the similarities and differences between the Canadian labor relations system and the U.S. labor relations systems

Canada and the U.S. have a similar foundation for labor relations systems but there are some distinct differences in the details. Structurally, U.S. and Canadian firms and unions are very similar and operate under similar market conditions. The Canadian labor law is patterned after the Wagner Act and includes exclusive representation, similar bargaining structures and strategies, and union contracts are very similar. However, the Canadian labor law is not as centralized as the U.S. with each of the provinces making different decisions on a variety of factors. Some provinces, for example, provide for card check recognition, instant elections, and first contract arbitration. Canada does not have right-to-work laws and some provinces do not allow decertification elections during a strike or permanent strike replacements (and some do not even allow temporary strike replacements). Most strike replacements are not considered part of the bargaining unit and are not allowed to vote on union matters. Hence, there are some striking contrasts between the U.S. and Canadian systems of labor relations.

Explain the concept of codetermination and works councils as they apply to German labor relations.

Codetermination is an institutionalized system of employee voice in which employees are entitled to participate in workplace decision-making. German codetermination has two components: works councils and employee representation on corporate supervisory boards. A works council is a workplace-level committee of employees elected to represent all workers. These works councils have three important rights. Codetermination means that a company must jointly determine with the works council issues pertaining to work rules, discipline, work hours, leave schedules, pay and bonuses, overtime, safety, and personnel selection methods. In addition to codetermination rights, works councils have information and consultation rights which obligate the employer to share financial information and consult with the works council on major workplace changes. The existence of a works council does not depend on whether the employees are unionized. Works councils must meet with the employer at least once a month and the law mandates that the company and the works council must work together in a spirit of mutual trust for the good of employees and the company. A works council cannot strike but can sue an employer to fulfill its legal obligation

What is comparative labor relations and why is it important for developing a broader understanding of labor relations?

Comparative labor relations is the study of labor relations systems in different countries. A comparative perspective on labor relations is important for three reasons. First, considering labor relations in multiple countries provides a rich basis for thinking broadly about the underlying problem of balancing efficiency, equity and voice. Second, a comparative analysis of labor relations can provide ideas for reforming the U.S. system. Finally, increasingly companies are forging strategic alliances with companies overseas and managers need to develop an understanding of the differences that can exist between labor relations systems to navigate this new business landscape.

What is meant by the "escape, force, or foster change" strategies as ways to move toward a model of employee empowerment? Describe each strategy and discuss the challenges in fostering change

Managers in unionized business can try to reduce labor costs, achieve greater flexibility, and redesign jobs to empower employees by using escape, force, or foster change strategies. An escape strategy would be to move operations to a new location, one that is more amenable to an employee empowerment strategy, subcontract work, or decertify the union. A forcing strategy would involve pressuring the union to make contractual changes through hard bargaining (concession bargaining) that reduce labor costs and provide greater flexibility. Finally, a fostering strategy would seek to create a more cooperative labor-management relationship through education, integrative bargaining, trust-building and development of newlabor-management partnerships based on mutual gain

What does the research reveal about the effects of unions, both positive and negative?

Nonunion workplaces have traditionally relied on unilateral managerial control in resolving conflicts. In other words, employees who did not like management's decisions could accept it or quit. An open door policy encourages employees to talk with management about the decisions but ultimately, management retains control and employees have the same option (accept or quit). But recently there has been an increase in alternative methods of nonunion dispute resolution. Some of these processes mimic union grievance procedures in that they will have one or two levels of appeal beyond the immediate supervisor. Final decisions may be made by a management panel, joint management-employee panel, or by an outside arbitrator. Some settings use an "ombudsperson" who attempts to negotiate or "broker" a resolution between the supervisor and employee.

What are the problems associated with nonunion committees designed to provide an outlet for employee participation?

One key concern associated with nonunion committees is that they will not be true representatives of employees' interests. Because management often takes control over the structure and composition of these committees, they may be more likely to act on behalf of the organization than the workers. Further, the presence of nonunion committees may squelch the need, desire, or ability for more independent representation to flourish. The committees can be used as a way to manipulate employees and give them a false sense of voice in the workplace.

Explain the importance of seniority in union contracts and discuss the various ways in which seniority is used in making job-related decisions. Why is seniority preferable toother methods of making these same decisions?

One of the chief complaints against management in a traditional mass manufacturing setting was the potential for arbitrary and capricious treatment by supervisors. Consequently, unions pushed for the use of seniority as an objective criterion for making job-related decisions such as work and job assignments, promotions and wage increases, as well as determining the order of layoffs. Seniority is preferable to other methods such as merit or performance-based systems because it cannot be easily manipulated, it is visible and known to many, and thus protects workers from ill effects of supervisory bias and favoritism

In 2007-2008, more than 12,000 members of the Writers Guild of America wentout on strike after contract negotiations with the Alliance of Motion Picture and Television

Producers (AMPTP) came to impasse. The strike started in November, 2007 and concluded inFebruary, 2008 and, by some estimates, cost the industry around $2 billion. Given the expense of the strike to the industry and lost income to the writers, what other alternatives might the writers have considered in their quest to pressure the AMPTP to make concessions? Why do you think the Writers Guild decided to strike instead of pursuing these less costly alternatives?One possible action by the writers could have been to encourage a boycott of movies and television programs produced by members of the AMPTP. A boycott would encourage viewers to refuse to watch any programming such programming. This tactic would not, unfortunately, prove to be too successful for the writers for at least two reasons. One, the strikers would have difficulty convincing viewers to give up their shows voluntarily. Two, given the size of the AMPTP, it would be extremely difficult to provide viewers with accurate information as to which shows they should boycott.Another alternative to the boycott or a strike might have been to engage in a work slowdown or work-to-rule. Slowdowns would pressure the AMPTP by imposing costs through lowered productivity while still preserving the writers' jobs. However, a slowdown in this particular industry might anger viewers by lending unpredictability to the viewing schedule. This could possibly turn public sentiment toward the AMPTP and have the unfortunate effect of backfiring on the union.Intermittent strikes might have been another alternative for the writers but intermittent strikes are less effective in an industry where there are lots of employers and alternative program options. In addition, as with the slowdown the intermittent strikes would create unpredictability in scheduling programs and could backfire on the union.Finally, the writers could have embarked on a corporate campaign to create negative publicity for the AMPTP. Corporate campaigns can be very effective when safety is an issue or where there is clear management abuse because the public is more readily engaged in the story. However, no such abuses were at play in this situation where the primary concern was one of compensation. Given this, it would probably be more difficult garner public support

Most government employees do not have the right to strike, regardless of their reason for wanting to do so. Why are strikes generally prohibited in the public sector?

Public sector strikes are prohibited for a variety of reasons (or the combination of these reasons). First, it is argued that striking against the government is an unacceptable threat to the supreme authority of the government. Second, it is argued that public sector employee bargaining power is too high because there are no market-based checks on their demands. Therefore, allowing public sector employees to strike will give them too much power to pressure an employer to concede to its demands. Third, it is argued that government services are too critical to be interrupted by a strike and that allowing strikes to occur in the public sector will pose a danger to the public.

Explain how scientific management principles have influenced the nature of labor-management relations in the U.S.

Scientific management principles drove much of the mass manufacturing industry in the 20th century. These practices stress standardization, specialization, and efficiency achieved through time and motion studies. Key to the scientific management approach is the notion that engineers and managers, equipped with stop watches, video cameras, and calculators, can determine the most efficient way to do a job better than workers themselves can. The result was to "deskill" the workplace, making employees interchangeable, like parts to a machine. Workers were motivated through pay, rather than intrinsic rewards of the job. Worker input was not valued and supervisors were clearly "superior" in their roles. Employees were left feeling degraded, alienated, and bored by their jobs. These patterns of behavior have added to the adversarial relationship between management and labor in the U.S.

Describe the various kinds of employee empowerment/involvement programs that have been implemented since the 1970s. How effective have these program been?

Since the 1970s, several types of employee involvement programs have arisen. Quality circles provide a forum for workers to make suggestions about how to improve productivity and quality through regular group meetings with supervisors. High performance work systems combine flexibility with employee involvement in decision making. Quality of work life programs provide a forum for workers to make suggests about improving working conditions.Gainsharing programs reward worker suggestions for cost reduction and efficiency improvements. Self-directed work teams change the mass production mentality to one where employees are responsible for a full range of job tasks, maintenance and even personnel decisions. Research has linked the use of quality circles, work teams, and job rotation to higher levels of stress and cumulative trauma disorders such as carpal tunnel. On the other hand, employee satisfaction, esteem, and commitment may be achieved

What is social movement unionism and how might this approach be used to increase labor's bargaining power and protection for workers.

Social movement unionism rejects the narrow business unionism focus on workplace-based collective bargaining and instead sees labor unions as representatives of the entire working class and as part of a broader social movement of community, social, and political activist groups. Gains for workers would be won through social and political channels, rather than through workplace collective bargaining. Advocates of a stronger U.S. labor movement see greater social activism as one route to more power in society and at the bargaining table. As with solidarity unionism, grassroots participation and mobilization of the workforce are seen as keys to the success of social movement unionism.

Explain the primary purpose of the European Union and its stance on labor standards for member countries.

The European Union was formed primarily out of political, rather than economic needs. The primary method of achieving integration, however, has been economic. Economic concerns prevail over labor and social concerns as the EU takes the perspective that economic prosperity will drive positive social changes, including better treatment of workers. That said, there has been concern with labor standards to establish basic human rights and prevent social dumping between member countries. As a result, the Community Charter of Fundamental Social Rights of Workers, or Social Charter, was adopted in 1989 to outline desired standards on freedom of movement, fair remuneration, equal treatment for men and women, health and safety protections, working conditions, vocational training, freedom of association and collective bargaining, and rights to information, consultation, and business decision participation for workers

What is the International Trade Union Confederation and what are its main objectives?

The ITUC is a worldwide federation of national union federations such as the AFL-CIO in the U.S., the Trades Union Congress in Great Britain, and the DGB in Germany. The ITUC formed as a way to strengthen international union solidarity and have more influence in the global sociopolitical economic system. Its main objectives are to facilitate consultation, communication, and cooperation among unions. The ITUC collects and publishes information and research to keep unions abreast of international developments. It also provides education and training to union leaders and financial assistance to emerging labor movements. The ITUC is an important advocate for organized labor at the WTO and other organizations and/or conventions. Among other things, the ITUC pressures multinational corporations to adopt codes of conduct that respect workers' rights

What is the ILO and how does it address labor standards associated with globalization? What are the core labor standards of the ILO?

The International Labor Organization is a specialized agency of the United Nations focused on promoting social justice and internationally recognized human and labor right. The ILO has a unique tripartite structure with representatives from labor, corporations, and government sent from each country. Its primary activity is adopting and promoting minimum labor standards. The ILO has adopted a set of core labor standards around freedom of association and collective bargaining, abolition of forced labor, no discrimination in employment and pay,elimination of child labor and other issues. While not legally enforceable, the ILO relies on publicity, diplomacy, and technical assistance to encourage compliance with its labor standards

What is the NAFTA Side Agreement on Labor and how it is used to address labor issues in Mexico, the U.S., and Canada?

The NAFT side agreement on labor, called the North American Agreement on Labor Cooperation, was adopted to address labor's fears that low Mexican wages might undercut U.S. competitiveness, put downward pressure on U.S. wages and working conditions, and cause widespread plant closings and job loss. The NAALC provides 11 guiding principles that promote union activity, nondiscrimination, equal pay, minimum wages, and workplace safety. However there are no uniform standards and, at best, the NAALC provides a forum for complaints against employers to be heard. These complaints stem from violations of each country's individual laws and not an attempt to create common labor standards across the 3 countries.

What is the role of the World Trade Organization and what philosophy does it promote with respect to globalization?

The World Trade Organization is an international organization of over 150 countries that provides a forum for negotiating and enforcing global trade agreements. Initially it was created to administer the General Agreement on Tariffs and Trade (GATT) and to handle trade negotiations. The WTO promotes free trade through the reduction of trade barriers including tariffs, quotas, domestic subsidies, discriminatory government procurement policies, and regulations. The WTO allows countries to establish standard necessary to protect human, animal, or plant life or to conserve exhaustible natural resources as long as these are not trade barriers. The WTO has the authority to resolve trade disputes and any country found in violation must change its trade policy or pay damages.

What are the benefits and problems associated with international trade?

The benefits of international trade stem from the assumptions of a free and open market. Free trade across countries allows consumers and producers to benefit from specialization. A country with a comparative advantage in producing a particular product (due to its proximity to raw materials, skills and talents of its people or another factor) can capitalize on its strengths to produce that product more efficiently than other countries. This reduces the price to all consumers and frees other economies to develop their own comparative advantage. Free trade increases the size of markets and allows companies to take advantage of increased economies of scale at the same time it reduces the monopoly power of domestic (sometimes inefficient) producers. Countries benefit from increased growth and income while consumers enjoy lower prices and greater choices. The downside of international trade, however, is the loss of jobs and wealth as the economy adjusts to increased free trade. Faster growth may increase pollution and environmental degradation. The emphasis on comparative advantage overlooks the importance of corporate strategies to creating a competitive advantage and ignores the importance of governmental policy in creating these advantages. Finally market imperfections can distribute the benefits of international trade unevenly. Most particularly, unequal bargaining power between countries or between labor and capital owners can make it easier for exploitation to occur.

What are "Beck" rights, where do they stem from, and in what way are they related to agency shop agreements?

"Beck" rights are rights granted to union members by a 1988 Supreme Court case that questioned the right of unions to utilize union dues money for political purposes. In this case, the Supreme Court ruled that workers who are covered under the union contract, but who chose to remain nonunion, cannot be forced to pay full union dues. Rather, they are allowed to request a reimbursement of that portion of union dues money that is used for something other than collective bargaining and administration of the contract. While seemingly simple, itcan be difficult to disentangle individual union expenses and sort them into neat categories. For example, it is not entirely clear whether union organizing expenses could be considered asrelated to collective bargaining (the more members, the greater the collective power). In addition, it is not always clear at what level the expenditures should be calculated (e.g, the national or local level). "Beck" rights are related to agency shop agreements in that they essentially turn any union shop agreement into an agency shop agreement since a union member is always able to request reimbursement for the political part of their dues money. This obviously has the effectof reducing union dues revenues and results in weaker overall labor representation.

What is a European Works Council and what role does it serve?

A European Works Council is a transnational company-level committee of employees that has consultation and information rights. In other words, a EWC allows employees from each country to be informed about decisions that might affect them. EWC's must meet with management at least once per year to be informed and consulted regarding the progress of the business. It can also request a meeting with management when there are exceptional circumstances such as a plant closing. The requirement for what information must be provided and who represents the employees is decided by the national law of each country. The EWC is not empowered to conduct collective bargaining but rather to create an open and healthy dialog between management and labor.

What is a corporate code of conduct and how effective are they in securing labors' rights in an international, global economy?

A corporate code of conduct is a written statement of standards that a company pledges to follow in its business activities. They often specify fair business practices, labor standards, environmental standards, corporate citizenship and ethics, and respect for relevant laws. Corporate codes of conduct may address child labor, discrimination, and health and safety issues and, less frequently, collective bargaining rights. Corporate codes of conduct are voluntary and therefore not legally enforceable. This fact explains the relatively weak effect of corporate codes of conduct in addressing labor concerns in an international market. Because the codes are voluntary and rely on publicity rather than legal power for enforcement, it is difficult to enforce the content. Companies can create their own standards, exclude standards that serve their best interests, or change and ignore standards to suit their immediate needs. Further, the codes need not address all issues important to labor (e.g., collective bargaining). Companies that rely on self-monitoring have no accountability. While some codes are monitored by human rights groups, this can be controversial because enforcement may hold companies to high standards or these groups may not have the resources to adequately monitor many employers

What is the difference between an offensive and a defensive lockout and for each give an example of a situation in which an employer might want to use it. What are the rights of strikers and strike replacements in a lockout situation?

A defensive lockout occurs when an employer locks out employees to prevent losses from an expected strike. If an employer handles perishable goods and expects a strike but the union will not reveal the timing of its strike plans, the employer can lock out the employees to prevent losses stemming from the spoilable of its perishable products. This is a defensive action to protect the employer from significant economic losses.An offensive lockout occurs when an employer takes the initiative to pressure the union for a more favorable settlement. A common reason for this initiative is to control the timing of the work stoppage. An employer may want to use this lockout before a professional athlete begins their season to prevent them from striking right before a major game, which could result in significant economic losses for the owners.Both of these lockouts are legal as long as they protect or support employers' bargaining positions. However, they are not legal if they are overly aggressive and appear to be an attempt to destroy the union. Hiring temporary replacements is allowed during a lockout whereas permanent replacements are not

Union contracts convey a number of rights and obligations related to jobs. Describe these rights and obligations and discuss their advantages and disadvantages from the union and management perspectives

A key job right included in many union contracts is the right to a particular wage rate that is tied to the job, and not to individual characteristics. It is the right to be paid based on the job you are doing, not based on personal differences. Just as a job might be assigned a particular pay rate, it may also be assigned specific tasks and responsibilities. Job rights protect employees from arbitrary job expansion without commensurate pay increases, provide job security by preventing employers from assigning work outside the bargaining unit (either to other employees or through subcontracting/outsourcing). From management's perspective, job rights clarify job responsibilities and duties and make job assignment easier. Further, by agreeing to the contract, job holders must fulfill the performance standards of the job they are assigned, making it easier for supervisors to hold workers to acceptable performance standards

Explain the dimensions of a corporate global strategy. How does each affect labor relations?

A multinational corporation's global strategy has two central dimensions: configuration and coordination. Configuration involves the location of various activities, such as whether production is concentrated in one country and exported to other markets or whether production is globalized into various countries through foreign direct investment. It affects labor relations by influencing relative bargaining power between corporations and employees through, for example, threats to move operations from one country to another. The coordination dimension consists of the degree to which activities in different countries are homogenized versus autonomous. It affects labor relations in the degree of centralization versus decentralization of policies. Labor relations process will need to find ways to incorporate responses to local customs and problems. A highly centralized approach means that local customs and practices will likely not be honored and employees will need to conform to a common approach. A highly decentralized approach may introduce inefficiencies and inequities in treatment and local managers will need to build networks across the organization to facilitate coordination and learning.

How might an employer's approach to labor relations change in moving from a shareholder to a stakeholder model of corporate governance?

A stakeholder approach would represent a significant change in an employer's approach to labor relations. Rather than a traditional adversarial approach, high-performance work systems with extensive employee involvement would likely be more widespread. Employers would probably remain neutral in union organizing drives and be more likely to agree to voluntary recognition. Labor-management negotiations would be more integrative in nature. Grievance resolution would probably be more flexible and informal. Companies might be less likely to move production to different locations in response to union activity or modest labor cost differentials. More information would probably be shared with employees and their representatives and employees would have a voice in strategic decisions. Finally, unions might adopt less militant strategies and structures

Describe how arbitration compares to a typical court hearing. How is it different? How is it similar?

An arbitration hearing is likely a courtroom hearing in that the parties make extensive preparations to present their case to the arbitrator by conducting an investigation, studying thecontract, examining past practice and past cases, and preparing witnesses. Once at the hearing,the union and management make opening statements before proceeding. The party with the burden of proof will proceed first by presenting witnesses and evidence. These witnesses are cross-examined by the opposing party. Following cross-examination, the other party will present its witnesses and evidence and this is followed by cross-examination. The rules of evidentiary procedure are looser in arbitration than in the court system. In essence, the arbitrator can listen to and consider whatever information he or she deems helpful to the case. The arbitrator will, however, need to make assessment similar to those of a judge regarding issues like the credibility of witnesses, veracity of facts, and applicability of case law. As with court cases, the decision of the arbitrator is usually delivered at a later date, in a written summary of the case facts and the decision itself

What is the difference between an economic strike and an unfair labor practice strike? Describe the rights of strikers and strike replacements in both economic and unfair labor practice strikes

An economic strike is when employees are striking over wages, benefits, and work rules (mandatory bargaining issues) during contract negotiations. An unfair labor practice strike occurs in protest against an employer's unfair labor practices (i.e., violations of the NLRA). It is legal to have replacement workers do the work of strikers during an economic strike. Employers do not have to fire the replacements at the end of a strike in order to provide jobs to strikers who want to return to work. In other words, employers can hire permanent strike replacements as well as temporary strike replacements (who are discharged at the end of the strike).Strikers who have been permanently replaced are not necessarily entitled to immediate reinstatement to their jobs after they end their strike. However, these employees cannot be fired in the literal sense. Rather, at the conclusion of a strike, returning strikers are placed on apriority recall list, and as jobs become available, the employer must first offer jobs to the former strikers before hiring any new employee. In addition, the status of temporary or permanent replacements must be disclosed to them at the time of hire.By contrast, employers cannot use permanent replacements during an unfair labor practice strike (otherwise, employers could benefit from their own illegal actions). Unfair labor practice strikers are therefore entitled to immediate reinstatement at the conclusion of the strike. It is up to the NLRB to determine whether a strike is an economic or unfair labor practice strike. However, this determination can be complicated. If an unfair labor practice has"anything to do with" causing a strike or if it appears that the employer's unlawful conduct played a part in the employees' decision to strike, then the strike is an unfair labor practice strike. Also, an employer's unfair labor practice during an economic strike can convert the strike to an unfair labor practice strike.

What is an enterprise compact and how might it present an alternative to traditional union representation?

An enterprise compact is a document specifying the principles of a labor-management relationship based on union and employee involvement in business decision making. Employers agree to treat workers and unions as business partners. In return, the union commits to helping the employer maintain competitiveness and to share more of the risks (andrewards) of company success.

A recent certification election at Lutz Industries, a large manufacturing company, ended with the union winning representation rights. Management and the union are now preparing for their first contract bargaining sessions. Assume that you are the chief negotiator for the management team. Describe your goals for protecting management rights at Lutz Industries.

As chief negotiator, my main goal will be to preserve management's right to make decisions about anything that is not explicitly included in the contract. Importantly, I will then want to ensure that the contract is constrained to addressing wages, hours, and working conditions while leaving all other decisions up to management. I may want to explicitly protect some rights such as the right to hire, fire, direct and discipline the workforce, and determine the policies and methods of operation, including the introduction of new technologies and the ability to relocate or reallocate physical and human capital.

The number of strikes in the U.S. has been steadily declining since around 1975.What factors are likely to explain this decline?

Before the 1980's, strikes typically followed the business cycle. Since that time, however, strike activity has consistently declined and is no longer tied to the business cycle. There are several possible explanations, not mutually exclusive, for this trend. First, it is possible that over time employers and workers have learned that strikes are very costly for all involved and are not rational on a cost-benefit basis. Second, it is possible that more employers are engaged in union substitution practices that increase voice in the workplace and therefore decrease the need for strikes. Third, from a standard economic perspective, strikes occur because information is lacking or asymmetric. It's possible that employers and unions have better information in negotiations today than they did before and they are, therefore, better equipped to reach a settlement. For example, they may have access to more information on the economy, other contract settlements, and each other's strategic objectives. Finally, the decline may result from the increased acceptability of using strike replacements that started in the 1980s which has discouraged workers from using the strike weapon for fear of losing their jobs

Explain what a boycott is and discuss the limitations of the boycott as a tactic to pressure employers to agree to a union's terms in contract negotiations.

Boycotts are campaigns aimed at getting customers to stop doing business with a particular company as a way of pressuring that company to concede to the union's contract terms. Boycotts can be very effective if the union is successful in getting customers to withdraw there business but this can be difficult to do. Unions are only allowed to encourage the boycott the primary target of their labor dispute and are not allowed to apply pressure through other employers by conducting a secondary boycott (or boycott against an employer who is not the primary target.) This greatly limits the potential effectiveness of the boycott. The legal doctrine regarding boycotts is complicated and can make it difficult for both the employer and the union to know what is considered a "fair" boycott. The law can limit the boycott in such a way as to reduce its overall effectiveness (e.g., by treating separate businesses of a parent company as individual businesses.) In addition, as boycotts generally involve picketing, the law regarding picketing also limits the effectiveness of boycotts by restricting both the content and location of the picket.

Explain the concept of corporate social responsibility, its foundations, and its implications for labor relations systems.

Corporate social responsibility is a viewpoint that rejects the shareholder value model and, importantly, the notion that employees can be thought of primarily labor costs and the sole concern of business should be profit-maximization. The corporate social responsibility modelis grounded in the ethics of duty, fairness or justices, and virtue, rather than the ethics of utility and liberty. The corporate social responsibility viewpoint is broader in scope and viewsbusiness as, fundamentally, a human activity where profit maximization is important but must be balanced with respect for humanity and the corporation's role in society. Since corporations are legally sanctioned by governments, and shareholder rights are not unlimited, corporations can and should be asked to serve the public interest and not pure self-interest. Corporations, while private entities, are not purely private as they also serve a social function and can, therefore, be held to common social values. This perspective suggests that businesses should be held to societal norms that value human dignity and respect workers' interests and rights. The corporate responsibility perspective is consistent with the United Nationals model code of conduct for companies and includes concerns for environmental sustainability as well as worker rights.

Describe the relationship between Japanese and U.S. labor relations. What are the important features of the Japanese labor relations system and how does the system differ from that of the U.S.?

During the U.S. occupation of Japan following World War II, occupation authorities established Japanese labor law, using key features of the Wagner Act. In particular, the Japanese law establishes unfair labor practices and protects workers' rights to organize and bargaining collective. There are, however, some key differences. The Japanese system is organized around the concept of the enterprise union, or unions that represent workers at a single company only. As such, there are nearly 70,000 worker unions in Japan. Exclusive representation is not, however, a requirement and some companies have multiple unions. In sharp contrast to the U.S. system, labor unions and management have much closer ties, with union leaders sometimes moving into management ranks. Enterprise unionism is reinforced by strong ties between Japanese workers and the companies they work at, often for a lifetime. This system of lifetime employment encourages a more collectivist mentality and relationships between workers and management in Japan are generally much more cooperative than observed in the U.S. Employers are more likely to share information with employees and a number of companies have joint labor-management consultation

Describe the arguments for and against the use of permanent strike replacements in economic strikes

Employers argue that the ability to hire permanent strike replacements is necessary to maintain balance in the negotiating process. The main argument against allowing only temporary strike replacements is that it would be too difficult for employers to hire only temporary workers—they need the ability to offer permanent full time employees to be able to continue operations through a strike. Taking this ability away would give unions too much power, causing them to strike more frequently for increased demands that would reduce competiveness and destroy jobs.However, it has been argued that permanent strike replacements are effective in breaking a strike and/or decertifying a union. Workers are essentially fired for exercising their protected rights under the NLRA. Unions argue that this situation creates imbalance in the bargaining process and gives management too much power. They further argue that this is clearly contrary to the original intent of the NLRA

What are the advantages and disadvantages to foreign direct investment?

Foreign direct investment can open new investment opportunities and benefit countries by bringing in more resources which in turn creates new jobs and new technology. This provides the base for further economic development and growth. Foreign subsidiaries of multinational companies often pay higher wages than local domestic companies and share the profits. However, foreign direct investment can also result in the exploitation of workers with low bargaining power, degrade the environment where there are no protections (i.e., social dumping). Further, it can result in the loss of jobs and downward pressure on compensation for employees in the "home" countries.

How does France's labor movement differ from that of the U.S.?

France's labor union movement can best be described as political and ideological in nature. Union density is very low but there is high contract coverage by industry-level agreements. Multiple mechanisms for workplace representation exist. The CGT, with a membership of 800,000 has traditionally followed a communist philosophy, pursuing a socialist, rather than business unionism, agenda. The vast difference between union philosophy and employer interests makes it difficult to establish a stable system of labor relations in France. Strikes and worker protests are used more commonly in France than in the U.S. and primarily for the purpose of social change that would make the political environment more favorable toward unions, rather than trying to gain better terms and conditions in the workplace. The labor-relations climate has, however, been changing as unions are becoming more pragmatic and French labor law has attempted to institutionalize collective bargaining. French law provides for several forms of workplace-level employee representation apart from unions (e.g., employee delegates and works councils) Bargaining takes place on three levels: multi-industry, industry, and company. However, bargaining agreements remain relatively weak.

What is sector bargaining and how is it important to German labor relations? How is sector bargaining changing in response to the pressures of globalization?

Germany's labor relations system relies on two important mechanisms: codetermination and sector bargaining. Each major industry or sector has a dominant employer association and union and these two organizations engage in "sector bargaining" that results in a contract that covers the entire industry. Sector bargaining takes place at the regional level but is coordinated by the national union and thus pattern bargaining is common. Basic agreements on wages, pay structures, working time, and working conditions are negotiated and can be extended to other companies by the government. Contracts cover about 65% of workers and are legally enforceable. Strikes are illegal during the life of the contract. Globalization has increased pressure for decentralization of contracts and thus more companies are negotiating independently with unions, rather than through the employer association

Describe the three strategic roles of an HR manager. What are the major challenges for an HR manager in each role with regard to labor relations?

Human resource managers can be seen as having three roles: builder, change partner, and navigator. The builder assembles the basic components of an organization's HR function, coordinating staffing, compensation and other functions of HR. The major challenge for the builder is to create processes for negotiating and administering contracts that fit with the otherorganizational needs. In other words, to construct labor relations processes within the organization that can address day-to-day issues such as grievances, disciplinary actions, and the like. The change partner reshapes the HR function in response to organizational or environmental changes. The challenge facing the change partner is to shape labor-management relations in a way that will promote competitiveness in a global economy, allow flexibility in response to change, and maintain a healthy relationship between the employer and its employees. The navigator must continuously develop organizational competencies and performance by balancing the internal pressures faced by the builder and the external pressures faced by the change partner. The navigator is challenged with maintaining respect for union and employee needs while at the same time promoting competitiveness and creating flexibility.

Explain the relationship between labor market conditions and the probability of astrike occurring. What other factors do you believe might increase (or decrease) the incidence of strikes nationwide.

If the economy is strong and job opportunities are plentiful, employees may be more willing to go out on strike because there is less fear about losing their jobs. Hiring replacement workers will be more difficult in a strong economy. In a weak economy, however, jobs are scarce and there is significant anxiety about job loss as there are many available replacements.Ironically, it is usually when the economy is weak that unions would most like to strike as they are more likely to be asked for "give backs" at the bargaining table.In addition to the state of the economy, there are several other factors that may increase or decrease the likelihood of a strike. The size of the employer's inventory and/or the strength of product demand will influence the employer's concerns about the possibility of a strike. When there is a large inventory of finished products ready for sale, the employer will be less concerned than when inventory is strong (particularly if demand is also strong). The degree of union solidarity present in the bargaining unit is also a factor that can positively influence the likelihood of a strike. Finally, the ability of the employer to move production to another location, either temporarily or permanently, will influence the likelihood of a strike.

In 2012, President Obama introduced a "deferred action" initiative for immigrant youths illegally brought to the U.S. as children. This initiative would allow approximately 1.8million immigrants under the age of 31 a two-year, renewable reprieve from deportation provided they meet certain qualifications (e.g., graduation from HS, no felony convictions). In general, what are the advantages and disadvantages to immigration as a component of globalization?

Immigration provides an avenue for people to escape persecution or poor working and living conditions in their own country. It offers them the opportunity to find a better life for themselves. Given this, unskilled immigrant workers are often willing to take jobs that others are not and will work for less pay, thus making them a cheap source of labor for host country companies. Highly skilled immigrant workers can fulfill labor shortages in the host country which allows host country companies to continue operations and keep wage rates down. Immigration brings new cultures, foods, and ideas that can be beneficial to the destination country. These same things, however, can also cause tension in the destination country as citizens may feel their livelihood is threatened by immigrant workers and cultural differences can lead to misunderstandings and tension. Low-skilled immigrant workers can depress the labor market for high school students and dropouts. They can also create management challenges for employers and communities (e.g., language barriers, racial conflict).

Why might we expect labor relations practices around the world to converge to common practices? Is this occurring - why or why not?

In an integrated world economy, one might expect that labor relations systems around the world would converge as countries learn from each other and free trade standardizes certain practices such as pay and safety conditions. If certain labor practices are more productive than others, we would expect these practices to diffuse across countries. Efforts at political and legal integration, such as has been attempted in the European Union, should also drive policies and practices closer together. The research, however, does not indicate that country industrial relations systems are converging. Intense competition has, in fact, had somewhat the opposite effect as businesses seek more local flexibility and labor relations becomes more decentralized. Increasing decentralization create divergent local labor relations practices because of attempts to tailor these practices to the specific needs and constraints of individual workplaces and because local practices or the outcome of bargaining processes in which firms, unions, and other institutions such as work councils have varying degrees of influence. It is true, however, that these diverging practices are tending to fall into particular patterns such as an anti-union, low wage approach or a high performance work systems approach.

What is the difference between conventional arbitration and final offer arbitration and why might a state choose one over the other as its compulsory dispute resolution system?

In arbitration, the parties present their final offers (and arguments) to an arbitrator for review. Conventional arbitration allows the arbitrator to fashion any terms for a settlement that he or she deems fair. The arbitrator in this case is not constrained to the final offers in deciding the settlement terms. The uncertainty of what the arbitrator will choose and the loss of control by the negotiators over the settlement terms is intended to motivate negotiators to reach their own negotiated agreement without resorting to arbitration. It has traditionally been believed that such a system suffers from the "chilling effect." If arbitrators simply split the difference between the positions of labor and management, each side might hold back from making comprises during negotiations. Thus, the chilling effect may lead to an increase in impasse.In final offer arbitration, the arbitrator must choose either the union or management's offer and is not allowed to deviate from those final offers. Final offer arbitration was created to try to lessen the chilling effect of conventional arbitration. This offer comes in two variations: (1)total package final arbitration, in which the arbitrator must select one party's final offer on all the disputed contract terms (for example wages, health insurance holidays, etc.); and (2) issue-by-issue final offer arbitration, in which the arbitrator can choose either party's final offer on an issue-by-issue basis. It is generally believed that final offer arbitration puts the parties at greater risk of losing if their offers are unreasonable and, hence, should encourage the parties to come closer to an agreement during negotiations.

Describe the legal limitations on picketing. Why do so many restrictions exist?

In economic and unfair labor practice strikes, picketing is legal but with some limitations. Picket line misconduct such as violence or vandalism is not protected by the NLRA and can therefore result in discipline and loss of recall rights at the end of the strike, as well as potential criminal prosecution. Mass picketing that blocks entrances to an employer's property is also illegal. Injunctions by state courts are still used to restrain picketing, and it is not unusual for an injunction to limit the number of picketers at each entrance to an employer's property.Workers that choose to cross a picket line have a legal right to do so. Unions, however, have the right to discipline union members who cross a picket line. Union members, on the other hand, have a right to resign from the union to avoid discipline (e.g., expulsion or a fine). Boycotts are frequently supported by picketing, and the legality of such conduct can be especially complex in the construction industry when employees of numerous companies are working at the same construction site, also known as common situs picketing. When picketing of this type targets an entire work site, it is considered illegal because it includes secondary or neutral employers. The law seeks to balance the employees' right to publicize their dispute with the secondary and/or neutral employers' right to conduct business. Finally, picketing in a union recognition strike is limited to 30 days (with some exceptions)

What are international investment portfolios and how can they be beneficial as a component of globalization? How can they be potentially harmful?

International investment portfolios are packages of foreign stocks, bonds, and mutual funds owned by individual or institutional investors (e.g., a pension fund). International investment can be beneficial because investors may be able to influence decisions of foreign companies to address labor and environmental concerns. International investment provides companies in developing countries with working capital to fund their operations. These portfolios spread risk across countries and allow investments to find their most productive uses. The danger of international investment portfolios is the temptation to engage in currency speculation that creates high volatility in the foreign exchange markets. This volatility can destabilize developing country economies and can have severe negative effects on wages, job opportunities, and living standards.

What is job control unionism and how does it address the problems associated with management practices stemming from scientific management?

Job control unionism seeks to protect workers against managerial abuse by tightly controlling the rewards and allocation of jobs through rules and procedures laid out in a union contract. It seeks eliminate managerial subjectivity and favoritism in decision-making criteria and replace it with a more objective criterion; namely, seniority. Detailed work rules govern how work is performed, allocated, and rewarded; how promotions and job assignments will be determined;and how disciplinary may be meted (and on what bases). More broadly, job control unionism seeks to explicitly limit or modify excessive managerial authority that was present under a typical scientific management approach so as to retain control over important workplace decisions.

What is meant by labor-management partnerships and what challenges do they pose for unions?

Labor-management partnerships are formal initiatives in which workers and union leaders participate in organizational decision making beyond the daily work-related decisions of employee empowerment and collective bargaining. In this model, employees and their union representatives become full partners in running a business. To be successful, union leaders need to develop new skills to effectively guide partnership programs and make wise business decisions. They must continue to fulfill the traditional role of worker representative at the same time be cognizant of the business implications. They must acquire new knowledge and education on business matters and become more innovative and creative in solving workplace problems.

As the Director of HR at a unionized Midwestern precision auto parts manufacturing plant, you have been asked by the new CEO to examine the current mass production process and make suggestions for improving efficiency and accuracy of the products. The CEO is open to any an all suggestions that you might have for doing this and has indicated that she is a strong believer in employee participation. You have determined that there is a great deal of untapped potential in the knowledge, skills, and abilities of your current workforce and would like to generate greater employee participation and involvement in the company as a way to utilize this talent. Discuss the various types of employee involvement programs and make a decision as to which you will recommend to the CEO.

Many companies have tried quality of work life programs to provide a forum for workers to make suggests about improving working conditions. However, I need involvement beyond quality of work life. I need to improve the quality and efficiency of the plant. I could consider quality circles to provide a forum for workers to make suggestions about how to improve productivity and quality through regular group meetings with supervisors. However, quality circles do not change the underlying production process so I am skeptical that these will make a significant difference. Gainsharing programs reward worker suggestions for cost reduction and efficiency improvements but I am looking for something a little more extensive than this because I want to address quality as well. Self-directed work teams change underlying work processes and give employees responsibility for a full range of job tasks, maintenance and even personnel decisions. High performance work systems combine flexibility with employee involvement in decision making. I know from the research that these programs can positively influence employee satisfaction, esteem, and commitment may be achieved. On the other hand, research has linked the use of quality circles, work teams, and job rotation to higher levels of stress and cumulative trauma disorders such as carpal tunnel. Finally, I have the option of labor-management partnerships that would involve both the union and workers in organizational decision making that goes beyond daily work-related decisions. Kaiser-Permanente has been successful with this type of program. Transforming the workplace in this manner appeals to me but I also know it will be extremely difficult to implement without the full support of my CEO and the union. However, I believe it is the best option and so I decide to present labor-management partnership in my proposal to the CEO.

Describe what mediation is and explain the various stages involved in getting the parties to reach a mutually acceptable agreement.

Mediation is a dispute resolution process in which a natural third party - the mediator - helps negotiators avoid or resolve an impasse. The use of mediation does not need to wait until an impasse occurs, unlike strikes or arbitration. Mediators lack the authority to force a resolution by imposing a settlement on the negotiators; rather, mediation is essentially "assisted negotiation."There are several stages involved in getting the parties to reach a mutually acceptable agreement. First, the mediator sets the stage by collecting information and establishing the ground rules. Second, the mediator works on clarifying the disputed issues and on developing alternative solutions through problem solving. Third, the mediator works to achieve a workable agreement, which encourages the negotiators to reach a settlement.

The Mexican system of labor relations is an example of the gap that can exist between the legal protections provided to workers within a given country and the actual rights that exist. Describe the rights granted by Mexican law and discuss how those rights differ from the reality of the workers' lives.

Mexico's constitution was the first to explicitly include workers' rights. The constitution guarantees the right to organize unions, bargain collectively, and strike. It provides protections against unjust dismissal and dangerous working conditions. It also mandates minimum wages,overtime pay, profit sharing, and eight-hour day, a six day workweek and pregnancy and childbirth leave. Mexican unions must have at least 20 members but does not need to represent a majority of employees to engage in collective bargaining. While there is no explicit obligation for management to bargaining with the union, labor contracts are legally enforceable. However, the extent to which these rights are actually honored is questionable. There appears to be heavy government control over unions and, as such, they serve political rather workers' goals

Why might nonunion arbitration of grievances be inferior to arbitration under a union contract and how might these deficiencies be addressed?

Nonunion arbitration suffers from three key flaws. First, there are often limitations placed on discovery (i.e., the amount of information the grievant is given by the employer to make its case). Second, depending on how the costs are shared, the employee may not have the ability to pay for an attorney while the employer is likely to have greater access to legal counsel. Thus, the employee is at a disadvantage merely due to his or her limited ability to afford good counsel. Finally, since the arbitrators are often paid by the company, it is always a question as to whether they can remain unbiased in their decisions. In addition to these reasons, more employers are asking employees to sign mandatory arbitration clauses that require employees to agree to submit disputes to arbitration as a condition of employment. The key problem here is that the employees are being asked to waive their legal rights before they even know the facts of the case. To address these deficiencies, some states have proposed legislation that would include quality standards for nonunion arbitration such as ensuring employees have full access to information, expense sharing, remedies reflecting those found under the court system, judicial review of awards, and waivers on a case by case basis only.

Summarize Canada's experience with nonunion employee representation plans. How have these plans affected the Canadian labor movement?

Nonunion employee representation plans are legal in Canada. The joint councils have equal numbers of management and employee representatives and the employee representatives are elected every two years. Local councils meet monthly to discuss local workplace issues; local councils also send delegates to a district-level joint industrial council that discusses issues affecting multiple work sites. The councils are weaker than unions. The dark side to these councils is that they have been effective in preventing unionization. The upside is that employees have voice into decision-making. The threat of unionization provides an incentive for management to ensure that the workers see gains from the councils

Explain the concept of solidarity unionism and describe how this approach might be used to increase labor's bargaining power and protect union rights.

One of several proposals for increasing the strength of the U.S. labor movement, solidarity unionism seeks to enhance solidarity or cohesiveness within and across workplaces. Rather than focusing on ways to cooperate with employers, solidarity unionism sees its role as one ofprotector and advocate for worker rights. It is more likely to emphasize the differences between management and worker goals and look to ways to increase power and protection through the mobilization of workers and aggressive organizing and representation tactics. Solidarity unionism proposal include the concept of nonmajority unions, reduced union bureaucracy, grassroots activism, and occupational unionism. The solidarity model is quite close to the traditional business unionism model, with the distinction of greater worker involvement and activism.

How can organized labor use participation in ESOPs as both a defensive and offensive tool in strengthening labor's bargaining power?

Stock ownership as a defensive strategy refers to a union's acceptance of stock ownership plans as a substitute for higher wages and benefits (i.e., guaranteed compensation increases). In other words, to help keep a company competitive, the union agrees to stock ownership for its members, rather than outright pay increases. However, in recent years unions have becomemore aggressive about using their financial position (i.e., stock ownership) to take offensive action against employers as a way of protecting worker interests. Union pension funds, through significant ownership shares, use their rights as shareholders to submit shareholder proposal and resolutions to limit executive compensation, ensure the independence of outside board members, and bring about other changes in corporate strategies and governance. Purchasing and investment decisions can also be used as a way to reward companies that provide favorable treatment to workers or that are more likely to benefit union workers (i.e., investing in unionized companies).

Explain the circumstances under which a U.S. president is allowed to intervene in alabor dispute between management and a union that has resulted in a strike

The Railway Labor Act empowers the president of the United States to create a presidential emergency board if a railway or airline strike threatens prevent essential transportation service necessary for interstate commerce. The board has 30 days to investigate the dispute and issue a report that usually contains nonbinding recommendations for a settlement. The strike is allowed to proceed after 30 days In the private sector, Taft-Hartley allows the president to appoint a board of inquiry to investigate and report on disputed issues if a strike or threat of strike presents a danger to national health or safety. The president can seek a court-ordered injunction halting the strike or threatened strike for up to 80 days. Similarly, in the health care sector the president is allowed to appoint a board of inquiry and halt a strike if it would substantially interrupt the delivery of health care in the locality concerned. Finally, it is possible that the president could seize an operation to maintain production.

Summarize the efforts at the Saturn plant in Spring Hill, Tennessee to forge a new relationship between management and labor by using self-directed work teams. Why do you think the Saturn experiment failed?

The Spring Hill Saturn plan was an experiment in the use of self-directed work teams in auto-manufacturing, a traditional job control unionism stronghold. Saturn embraced team-based production and comanaged decision making at Saturn with the UAW. A series of formal join labor-management committees, called decision rings, were empowered with authority over extensive issues. The UAW was recognized as a legitimate stakeholder and participant in business decisions about technology, suppliers, pricing, etc. In 2003 the Spring Hill workers voted to return to the UAW master contract with General Motors and in 2009 General Motors sold the Saturn brand. In part the experiment failed due to factors outside the control of the parties but resistance to change from the traditional model of union representation and concerns over whether the union was "selling out" were certainly factors contributing to the plant's demise

How can four schools of thought on the labor problem from Chapter 2 be useful to considering options to regulating globalization to limit short term costs and problems associated with exploitation?

The alternatives to govern the global workplace parallel the alternatives for workplace governance (i.e., the four schools of thought on industrial relations). First, the free market argument suggests that no regulations are necessary and that, left to its own devices, the free market will determine the optimal outcomes for producers, consumers, and workers. Second, a human resource management perspective would suggest that corporate self-monitoring is the best approach. This position would advocate the adoption of corporate codes of conduct and the spread of best human resource management practices. Third, an industrial relations perspective would suggest that what is needed is a strong labor movement worldwide. This perspective would advocate a mix of laws protecting worker rights to unionization and protective labor legislation. Finally, the critical industrial relations perspective would suggest that none of these methods will be successful and that the only solution is worker control over factors of production, perhaps starting with a strong socialistic labor movement worldwide.

The People's Republic of China, ruled by the Communist Party of China, is the fastest growing major economy. From 2001-2008, China's real GDP grew 10.7 percent, driven largely by exports and infrastructure investments. China's growth, however, has not been without controversy surrounding its labor-management practices. Describe the labor relations system in China and discuss its deficiencies.

The government of China recognizes just one umbrella labor organization - the All China Federation of Trade Unions (ACFTU). Originally, the ACFTU's function was not to representworkers' interests in opposition to employers' interests as one would expect in a pluralist employment relationship. Instead, it was focused on promoting the common, national good and social harmony through enterprise unions that maintained labor discipline and administered state-sponsored housing and other social benefits programs. Enterprise unions were generally integrated with management and not "representatives" of employees as we would typically think of here in the U.S. Since the late 1980s, China has been transitioning tomore of a market-based economy and it has passed several labor laws to promote collective bargaining or "collective consultation." Enforcement of the laws, however, is still weak and labor problems, particularly problems with poor working conditions and wages, persist in China. Because the ACFTU remains the only legally approved union organization and is still closely aligned with the Communist Party of China, it does not provide effective representation to workers in China. This has led to increased grassroots efforts to call attention to China's labor conditions. These efforts include strikes and demonstrations but also an increasing use of media to call attention to the plight of the Chinese worker

Grievance arbitration, while effective in applying accepted standards of justice to the workplace, is sometimes criticized. Describe these criticisms.

The grievance process, including arbitration, is criticized as being excessively legal, formal, and reactive. The legal and formal nature of grievance procedures can be intimidating to the parties and may squelch creative thinking that would lead to a resolution as the parties become too locked into the formality of the process. It may also inhibit relationship building that would lead to informal resolution. In addition, it has been argued that the grievance process is primarily one in which parties react to a situation once it has arisen, rather than encouraging problem-solving that would prevent the situation from arising again

Suppose you are among those who believe that the NLRA should be deregulated. Justify your position and describe how labor-management concerns would be addressed under your proposed model of labor relations.

The perspective that the NLRA should be repealed or deregulated stems from a mainstream economics model and the ethics of libertarianism. Unions present a barrier to free markets by exercising monopoly power over labor. They cause harmful economic effects by artificially raising wages higher than the competitive market would sustain. As such, the NLRA reduces aggregate wealth, forces unwilling employers to negotiate wages that make them less profitable, and force workers to pay dues when they would prefer not to belong to a union. Unions should be subject to the same antitrust regulations that limit other business organizations from engaging in anticompetitive practices. However, a true free market perspective suggests that explicit restrictions should not be placed on unions - if they have theeconomic power to push their demands in a free market, they should be allowed to do so. In this regard, the deregulation perspective is not that different from Great Britain's system of voluntarism.

Suppose you are among those who believe that the NLRA should be transformed. What arguments support the claim that a complete overhaul is necessary? What alternative models might be considered as a replacement for the NLRA model of exclusive representation?

The primary reason for transforming the NLRA is the adversarial nature of labor relations in the U.S. which many argue is caused by the very nature of the NLRA. Proponents of transformation argue that adversarialism is bad for employees and employers in a global economy because it makes both representation and profit maximization more difficult. Specific features of the NLRA that foster adversarialism are the concepts of exclusive representation and majority support. Because a union must garner the support of a majority of workers, the representation process takes on an "us vs. them" flavor in which both sides try to make the other look bad to the employees who will be voting. One option to change the tone of the NLRA would be to provide legal support for nonmajority unions by requiring employers to negotiate with these unions. The contracts would not extend to all workers, only to those who are part of the union. A second option would be to supplement or replace the certification process with works councils. Other elements of transformation might include employee free speech rights, unjust dismissal procedures, employee representation on company boards, and the right to workplace information.

Explain the key differences between the shareholder and stakeholder models of corporate governance. Describe the legal, organizational, social, and individual changes that would facilitate a shift in corporate governance behaviors from the shareholder to stakeholder mentality.

The traditional shareholder model of corporate governance places the primary, if not exclusive, responsibility of managers on ensuring firm profitability. The shareholder perspective is based on utilitarian and libertarianism ethical views as well as a legal view of corporate governance based mainstream economic models. Firms that are not focused on profits, will not lead to the "greater good." The stakeholder model, on the other hand, criticizes the shareholder perspective as too narrowly focused on short-term financial results that treat employees as labor costs and denies meaningful input into business decisions. This perspective does not deny the importance of shareholder rights but also recognizes that these rights are granted by governments and society. As such, the stakeholder model suggests that corporations have other obligations that are necessary to meet the needs of society. Specifically, corporations should consider the needs of all stakeholders - employees, customers, suppliers, local communities, and others - in addition to shareholders. The stakeholder model advocates organizational change in governance goals but also greater legal changes in corporate governance that would reinforce the importance of other stakeholders' interests.

Suppose you are among those who believe that the NLRA needs to be strengthenedand reinforced. What kinds of changes might you advocate? Consider both legal decisions andlegislative changes.

The two main perspectives on strengthening the NLRA focus on either changing court interpretation of existing law (i.e., overturning prior case decisions) or changing the law itself.The first approach would focus on educating judges about labor issues and the historical intent of the NLRA in the hopes that future decisions would undo some of the damage. For example, the Mackay Radio decision as it pertains to permanent strike replacements in economic strikes could be challenged and overturned. The more common view, however, is that the law itself needs to change. Changes could either be remedial (i.e., small, incremental changes that focus on issues such as stronger monetary penalties, reduced election delays) or substantive (expanding NLRA coverage, removing restrictions on secondary boycotts, widening the list of mandatory bargaining items, changing representation election procedures,and eliminating strike replacements).

Describe the various steps to a grievance process in a typical union contract

The typical grievance procedure has four steps. The first step involves discussions between the employee (grievant) and the supervisor administering disciplinary action. If the grievance cannot be resolved at this stage, it can be appealed to step 2, at which time a union representative and a higher level manager (usually the supervisor's boss or the HR manager) will attempt to resolve the issue. The employee, if still unsatisfied with the outcome, can appeal to step 3 which usually involves an upper-level manager and union official. Finally, if no satisfactory settlement can be reached, the grievance can be appealed to final and binding arbitration

What criteria does a nonunion employee committee or representation plan need to meet to be considered legal under the NLRA?

To be considered legal under the NLRA, a nonunion employee committee must a) not give the illusion of being bilateral when they are, in fact, unilateral. Plans that are obviously one way are legal. Second, the committee must be made up of employees speaking for themselves, not on behalf of a larger group of employees. Third, nonunion plans that are primarily concerned with business issues such as quality and productivity, which lie outside the NLRA's scope, are generally held to be legal. Finally, employer domination is not allowed so employee latitude in controlling structure and function will increase the likelihood that the plan is acceptable.

In between proponents looking to strengthen the NLRA and those looking to regulate are individuals who argue a compromise position that the NLRA should be "loosened." What are the arguments for loosening the NLRA and what proposals have been suggested as ways to do this? Refer specifically to that section of the NLRA where modifications have been proposed

The view that argues the NLRA should be loosened focuses primarily on Section 8(a)(2) of the NLRA, the section that prohibits the use of company-dominated unions. The NLRA defines labor organizations quite broadly and can include labor-management committees as well as formal unions. The possibility that workplace committees could be ruled a violation of the NLRA has been argued to inhibit collaboration between management and labor and to unnecessarily preserve the atmosphere of adversarialism that has existed between labor and management. Thus, proponents of the "loosening" argument would like to see Section 8(a)(2)exceptions such as those proposed under the TEAM Act which would explicitly allow committees that do not attempt to negotiate collective bargaining agreements. A compromise position would be to loosen the NLRA in this regard while at the same time, making it easier for workers to unionize should they choose to do so. Another suggestion for loosening the NLRA would be to allow for employees committees that are explicitly charged with holding the employer accountable for violations of existing labor laws. If successful, this could provide employees with a platform for participating in employment law compliance tailored to the needs of each workplace. These committees might then also give additional voice to workers and allow them to shape broader codes of conduct within businesses. Employers could be encouraged to allow these committees by giving partial immunity from legal penalties when their compliance program includes effective committees.

Not all strikes are created equal. Describe the various kinds of strikes that might be used by employees and explain how they are treated under the law.

There are many different types of strikes but perhaps the two most important are the economicstrike and the unfair labor practice strike. Economic strikes are an attempt to pressure the employer to give better wages, benefits, and work rules during contract negotiations. Workers refuse to work until their terms are met. Economic strikes are the most frequent type of strikesin the U.S. and are protected by the NLRA when workers are striking over mandatory bargaining issues. This means workers cannot be disciplined or discharged from raising this strike. However, they can be replaced with either permanent or temporary strike replacements.An unfair labor practice strike occurs in protest of an employer's unfair labor practice(s) or violation of the NLRA. Workers cannot be disciplined, discharged, or permanently replaced but they can be temporarily replaced.A recognition strike occurs when employees are striking to force an employer to recognize and bargain with their union. These are protected by the NLRA but workers can be temporarily or permanently replaced. A sympathy strike occurs when workers strike in a showof support for other workers who are on strike. These strikes are protected under the NLRA aslong as strikes are not violating a no-strike clause in a contract. However, employees may be temporarily or permanently replaced. Wildcat strikes occur when union workers strike in violation of a no-strike clause prohibiting work stoppages over grievances during the life of the contract. These employees can be disciplined for striking by both the union and the employer. Finally, a jurisdictional strike occurs when a union strikes to force an employer to assign certain work to its members. These strikes are prohibited by the NLRA

All components of globalization have increased dramatically since the 1970s. Many companies in the U.S. now do business abroad, invest abroad, and have relocated facilities abroad. Given the extent of this corporate internationalization, why haven't unions followed suit to the same degree? In what ways have unions begun to collaborate?

There are significant barriers to transnational labor collaboration and unionization including language barriers, cultural and religious differences, and ideological differences regarding the role of workers and unions in society. As well, there are not yet strong interconnected social networks for unions and workers to share knowledge and strategies. Unions may fear losing domestic autonomy and control over their own domestic agendas. There are often significant legal barriers to cross-national unionization and collaboration between unions. Even union structure and goals differ widely throughout the world as demonstrated by the more social movement agenda of, say, French unions compared to the practical, business union model of U.S. unions. Finally, there is strong employer resistance to international unionization. The emphasis on international collaboration between unions has been on international solidarity campaigns in which union workers from one country show support for union workers in another country. They may, for example, contribute financial or public support to their cause. Global union federations are becoming increasingly successful in getting multinational corporations to sign international agreements to respect workers' rights to collective bargaining and minimum wage and safety standards. In addition, unions have been increasingly successful in using the Internet and social media as a way to apply public pressure to businesses throughout the world.

Describe the possible reasons for the increase in nonunion workplace dispute resolution systems in recent years.

There are three possible explanations for the increase in nonunion workplace dispute resolution systems. First, formal dispute resolution procedures can be part of a human resource strategy to increase organizational commitment and performance through high performance work systems. Second, the rising cost of litigation has employers looking for ways to avoid the possibility of costly lawsuits and the sometimes very high penalties assessed. Third, implementation of a grievance procedure can be a significant part of an employer's union substitution strategy

One of the key roles of an arbitrator is to interpret the language of a contract, even when that language is unclear or ambiguous. Describe the rules that arbitrators apply to try to fairly interpret the contract

To interpret a contract, arbitrators use three elements: contractual language, intent, and past practice. With regard to contractual language, the arbitrator will look to the ordinary meaning of words unless they are explicitly defined in the contract. More weight will be given to specific language than general language where, for example, the contract language might conflict. If the arbitrator is unable to resolve the dispute based on the plain language, he or she will consider the intent of the parties when the language was crafted. Here the union and management's notes from contract negotiations can be very helpful. Finally, the arbitrator will look to the past practices of the parties in handling the same or similar situations

Explain how job security protections differ across countries.

U.S. union workers typically enjoy greater job security than nonunion workers as a result of just cause clauses in the union contract. However, the vast majority of U.S. workers are subject to employment-at-will, which means an employer can fire a worker at any time, for good cause, no cause, or even a cause that is morally wrong. This contrasts starkly with the widespread unjust dismissal protections granted by most other democratized, industrialized countries. For example, German law requires discharges to be "socially justified" on the basis of poor performance or economic necessity once an employee has passed a six-month probationary period. Belgium, France, Great Britain, Italy and Spain all have similar protective legislation. In Mexico, employees have a 30-day probationary period followed by a just cause dismissal standard. In Japan, the doctrine of abusive dismissal protects workers against unjust dismissal. Canada has a just cause dismissal standard unless an employee is given several weeks notification. Thus, reliance on collective bargaining to establish a just cause dismissal standard, rather than granting this right to all full-time workers through labor legislation, is a unique feature of the U.S. labor relations system

What are the union's obligations under a typical union contract?

Under a typical union contract, the union is obligated to live up to the terms of the entire contract. In particular, the union usually gives up the right to strike during the life of the contract in exchange for final and binding arbitration. Unions can be sued for violating a collective bargaining agreement. Unions also have a duty of fair representation that requires them to fairly and without discrimination represent all bargaining unit members

Explain the British system of voluntarism and describe the legal restrictions placed on labor-management relations. In what way does the Irish labor relations system differ from that of the British?

Under the British system of voluntarism, collective bargaining is a purely voluntary activity between management and labor. There is no duty to represent, no duty to bargain, and labor contracts are not legally enforceable. Thus, the union must be able to present enough of an economic threat to the employer, through strikes, slowdowns, or other means, to convince the employer that a collective bargaining relationship is in its best interests. Enforcement of contracts follows a similar pattern. There are, however, some legal restrictions. The Trades Disputes Act makes labor unions immune from being sued for breach of contract and for striking. To protect the employer's interests, there are restrictions on secondary boycotts and closed shop agreements. To protect the workers' interests, democratic procedures for electing union officials are mandated. Many unionized workplaces have multiple unions as there is no exclusive representation requirement.The key difference between labor relations systems in Ireland and Great Britain is that the Irish system incorporates a system of social partnership on top of their system of voluntarism. Social partnership between labor, business, and the government results in a series of peak-level agreements on social and economics issues. Peak-level organizations are the highest national groups representing the public (the government), employees (the major labor federation, ICTU), and employers (the major employers' association, IBEC). These agreements might cover, for example, changes in the tax system, increased employment opportunities, and private sector pay guidelines.

Describe the three strategic roles for union leaders. What are the major challenges for a union leader in each role with regard to labor relations?

Union leaders face similar challenges to those of HR managers. As such, they also serve three strategic roles of builder, change partner, and navigator. Builders must create union structures that fulfill the labor movement's basic functions (organizing, bargaining, contract administration and political lobbying). These structures must be internally consistent, meet therequirements of a democratic organization, and perform routine administrative functions such as budgeting, strategic planning, and benchmarking. As change partners, union leaders must partner with rank-and-file members to construct new forms of representation that fit changes in the external environment. This means addressing issues such as workforce diversity, increased education levels, and increased competitive pressures on employers. Finally union leaders must be navigators that can balance the internal and external pressures faced by the builder and change partner. These pressures may be between new and existing members, between centralized power and decentralized responsiveness to local conditions, between centralized control and democratic processes, and between solidarity across workplaces and concern for individual needs.

If bargaining impasses occur so infrequently and so few working days are lost due to strikes, why is it important to study bargaining impasses and various alternative disputeresolution mechanisms?

While it is true that fewer than 3 percent of bargaining notices to the FMCS end up in strikes, it is important to study alternative dispute resolution mechanisms for several reasons. First, the possibility of a bargaining dispute underlies all labor negotiations because the threat of strikes, lockouts, and other pressure tactics ("economic weapons") can be used to try to force the other side to make additional concessions at the bargaining table. Second, bargaining in good faith to an impasse fulfills each side's legal obligation. Third, major strikes can have devastating consequences for workers, employers, and the public so understanding how they occur and how they can be avoided is important. Fourth, some dispute resolution methods canbe used before an impasse is reached (especially mediation), and others are designed to prevent an impasse from occurring (especially arbitration); thus their significance is greater than a low dispute rate might otherwise indicate. Finally, the method used to resolve bargaining disputes is a distinguishing feature between different labor relations systems or laws. The method chosen, can create differences in the labor relations environment.