Intro to Business: Chapter 12

although it varies by profession, job experience, education, and tenure, women in the US today earn what percent of what men earn?

81 percent

grievance

a charge/complaint by employees that management is not abiding by the terms of the negotiated labor management agreement

injunction

a court order directing someone to do something or to refrain from doing something specific court will issue if it believes that violence may occur or property will be destroyed the tactic management uses when asking the courts to order strikers back to work or limit the number of pickets

job security

a future focus of labor unions due to the effect of job losses from offshore outsourcing

yellow dog contract

a type of contract that required employees to agree as a condition of employment not to join a union; prohibit by the Norris-LaGuardia Act in 1932

strike

a union strategy in which workers refuse to go to work; the purpose is to further workers' objectives after an impasse in collective bargaining when workers stop production by refusing to work; a union strategy labor unions frequently use as a tactic in a labor dispute

the labor management relationship is changing to one of cooperation because globalization increases the need for US firms to be more ___

competitive

certification

formal process whereby a union is recognized by national labor relations board (NLRB) as bargaining agent for a group of employees

unions will depend on the following industries for growth

health care information technology

between 1990 and 2030, the number of people who are over 65 is expected to

increase to 70 million (p 343)

goals of labor unions in 1970s

increase worker pay and benefits

result of a prolonged strike

is often continued open hostility between labor and management

reason public employees such as police many unionize to negotiate agreements but are not allowed to strike is that

it endangers public safety

employers should support employees with elder care needs because

it will help to retain experienced workers

the national football league asked for assistance in negotiating a new contract from the

national mediation board

national labor relations board (NLRB)

oversees union election campaigns and investigates labor practices 5 members are appointed by the US president

major legislation affecting labor management relations

p 329

steps in union-organizing and decertification campaigns

p 330

issues in a negotiated labor management agreement

p 331

different forms of union agreements

p 332

the grievance resolution process

p 333

mediation

the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute NOT binding

bargaining zone

the range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse

labor union

the right to form one did not exist until the Wagner Act (National Labor Relations Act) in the early 1930s Samuel Gompers

workers hired to replace striking workers until a labor dispute is resolved are called __.

strikebreakers

arbitration

the agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute BINDING

knights of labor

the first national labor union; formed in 1869 by Uriah Smith Stephens first national labor union whose goal was to gain significant political power offered membership to all private working people, including employers, and promoted social causes as well as labor and economic issues. intention was to gain significant political power and eventually restructure the US economy fell from prominence after being blamed for a bomb that killed eight policemen during a labor rally at Haymarket Square in Chicago in 1886

decertification

the process in which workers take away a union's right to represent them

collective bargaining

the process whereby union and management representatives from a labor management agreement, or contract, for workers

shop stewards

union officials who work permanently in an organization and represent employee interests on a daily basis role: - handle early stages of a grievance - represent employee interests on a daily basis

congress of industrial organizations (CIO)

union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955 organizing force behind formation of CIO was John L Lewis of the Mineworkers Union reason org started: - organize all workers in an industry (skilled or unskilled)

goals of labor unions in 1980s

union recognition and job security

the shift from an agricultural to an unregulated industrial economy at the beginning of the 20th century created an abusive work environment that led to the formation of __

unions

sexual harassment

unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment the civil rights act of 1991 governs sexual harassment of both men and women. in 1997, the supreme court reinforced this fact when it said same sex harassment also falls within the purview of sexual harassment law. to remedy this, states like California and Connecticut require companies w/ 50+ employees to provide sexual harassment prevention training to supervisors sexual harassment laws apply to foreign companies operating in the US

a major factor that led to the formation of labor unions to improve working conditions

was the lack of power of workers compared to that of management

primary boycott

when a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute

hostile work environment sexual harassment

when conduct unreasonably interferes with a worker's job performance or creates an intimidating, hostile, or offensive work environment

blue flu

when strikes are prohibited workers sometimes display their frustrations by engaging in sickouts arrange as a group to be absent from work and claim illness as the reason

cooling off period

when workers in a critical industry return to their jobs while the union and management continue negotiations

strikebreakers

workers hired to do the jobs of striking workers until the labor dispute is resolved workers who cross picket lines to replace workers on strike during a labor dispute (also known as scabs)

the reason labor unions opposed the north american free trade agreement (NAFTA) is because members

would lose low-paying wage jobs to workers in other nations

future contract negotiations will likely focus on evolving workplace issues such as:

- * two-tiered wage plans - elder care - worker retraining - drug testing - other work related issues

employees and management have differing perspectives on such issues as executive compensation and the need to provide flexible schedules because

- US managers prefer to maintain the current situation as it exists - there is now a huge difference between the pay of average workers and top executives - management is slow to recognize changing workforce demographics

during the 1930s, labor unions won the right to:

- a minimum wage for workers - organize and join unions in interstate commerce industries

employers are concerned with changing demographics of mothers in the workforce because:

- absences for child care cost US employers billions of dollars annually - the number of women workers with children under 18 has grown nearly 75% since 1975 - single workers and single income families do not want to subsidize child care

labor management and reporting and disclosure act (landrum griffin act) of 1959

- amended taft hartley act and the wagner act - guaranteed individual rights of union members in dealing with their union, such as the right to nominate candidates for union office, vote in union elections, attend and participate in union meetings, vote on union business, and examine union records and accounts - required annual financial reports to be filed with the US department of labor -> one goal of this act was to clean up union corruption

labor management relations act (taft hartley act) of 1947

- amended the wagner act - permitted states to pass laws prohibiting compulsory union membership (*right to work laws*) - set up methods to deal with strikes that affect national health and safety - prohibited secondary boycotts, closed shop agreements, and featherbedding (the requiring of wage payments for work not performed) by unions the taft hartley act of 1947 provides a cooling off period which: - is called for by the president of the US - requires workers to return to their jobs in a critical industry - lasts up to 80 days -> this act gave more power to management

unions use picketing in a labor dispute

- as an informational tool - to alert the public to an issue - create attention and sympathy for their cause

some of the goals of management are to:

- balance the demands of stakeholders - maximize productivity - produce a profit

which of the following are part of the wagner act (national labor relations act)

- employers must bargain in good faith about wages - established NLRB to oversee union elections - unions may strike, picket, and boycott employers

the wagner act of 1935 led to the growth of the congress of industrial unions (CIO) because it:

- established the NLRB to oversee union elections - allowed unions to strike and picket - prohibited unfair labor practices by employers

national labor relations act of 1935 / wagner act

- gave employees right to form or join labor organizations (or refuse to join or form) - the right to collectively bargain with employers through elected union representatives - right to engage in labor activities such as strikes, picketing, and boycotts - prohibited certain unfair labor practices by the employer and the union - established the national labor relations board to oversee union election campaigns and investigate labor practices -> gave great impetus to the union movement

controversial issues between labor and management such as offshore outsourcing, safety, and health care have developed as a result of factors in the business environment such as

- global competition - government policies and regulations

many small businesses have found that implementing creative child care programs can:

- help them compete with large companies to find qualified employees - attract qualified employees - retain qualified employees

employers try to prevent workplace violence by:

- hiring managers with good interpersonal skills - seeking employee input through focus groups - hiring consultants to deal with potentially violent problems

in the future, unions are likely to focus on:

- immigration policy - child and elder care - offshore outsourcing

major goals of labor unions are:

- improve working conditions for members - provided a unified voice for members - represent its members in negotiations

labor unions have declined in economic and political power as a result of:

- increased global competition - achieving many of their goals - fewer manufacturing jobs

changes in public opinion have affected labor unions by:

- influencing passage of laws to curb the power of management - prohibiting compulsive union membership - the passing of laws to curb corruption in unions

critics of organized labor today believe that unions are no longer needed because

- inhuman conditions no longer exist - the legal system protects workers - changed management philosophies do not allow sweatshops to develop

tactics used by management to achieve their goals in a labor dispute:

- injunctions - lockouts

the benefits organized labor has won for workers includes:

- minimum wage laws - workplace safety laws - more negotiating power with managers - more political power - overtime rules - workers' compensation for disability - severance pay - child labor laws and safety - job safety regulations +

individuals who abuse illegal drugs are:

- more likely to file workers' compensation claims - more likely to be in workplace accidents - going to cost employers twice as much in health care costs as other workers

based on university of michigan study, one view of improving pay equity for women is that increased education will automatically close the pay gay. another view supported by the economic policy institute is that while women early less:

- more women live below poverty level - women w/ children are less likely to go into business - education alone is not the answer

a legal agreement that clarifies the terms and conditions under which labor and management will operate over a period of time is a...

- negotiated labor management agreement - labor contract

which issues create labor management controversy today

- outsourcing - technology

sources of employee grievances (complaints)

- overtime rules - promotions - layoffs - transfers - job assignments

ceo compensation and bonuses are theoretically determined by a firm's:

- profitability - increase in stock price

norris laguardia act of 1932

- prohibited courts from issuing injunctions against nonviolent union activities - outlawed contracts forbidding union activities - outlawed the use of yellow dog contracts by employers ->allow non violent union activities ->outlaw use of yellow dog contracts yellow dog contracts were contractual agreements forced on workers by employers whereby the employee agreed not to join a union as a condition of employment

to help companies be more competitive, unions and management are now cooperating to:

- redesign jobs - assimilate more diverse workers - train workers

companies can reduce problems related to sexual harassment by:

- responding quickly to complaints of harassment - setting up grievance procedures that are effective - training employees about their sexual harassment policies

fair labor standards act of 1938

- set a minimum wage and maximum basic hours for workers in interstate commerce industries - the first minimum wage set was 25 cents per hour, except for farm and retail workers

among those who oppose child care benefits for co-workers are:

- single income families - single workers

in the future, unions will be different than when most members were in heavy manufacturing because:

- the workforce will be diverse - labor and management must work together to be competitive - workers are in service industries

employees and the public are frustrated by high levels of executive compensation because:

- top level execs are often rewarded whether or not the company is successful - the diff between the pay of execs and that of the avg worker is too large - execs use company money for luxury "perks"

unions will have to include more white collar, female, and foreign born workers because:

- unions must seek potential members in service industries - there are more of them in service industries - the workforce is more diverse

the old explanations of pay disparity between men and women are no longer valid because:

- women are competing with men in more occupations and knowledge based jobs - fewer women leave the workforce for an extended time

US executives believe they should receive huge compensation packages because they:

- work 70+ hour weeks - travel excessively

steps in union certification

1) contact employees of organization 2) campaign for signatures on authorization cards 3) union obtains signed authorization cards from at least 30% of employees it is trying to represent 4) NLRB examiner determines that 30% of employees have signed authorization cards and determines appropriate bargaining unit 5) election campaign 6) secret ballot election 7) union must receive more than 50% of the votes cast

steps in union decertification

1) labor contract is not in effect and union has been the bargaining agent for at least 12 months 2) employee or employee representative campaigns for signatures in a decertification petition 3) employee representative files petition with the NLRB 4) NLRB determines if 30% of the employees in the bargaining unit favor decertification 5) decertification campaign 6) secret ballot election 7) determine if more than 50% of votes cast favor decertification

elder care costs employers productivity because of:

absenteeism / turnover / productivity

open shop agreement

agreement in right to work states that gives workers the option to join or not join a union, if one exists in their workplace

negotiated labor management agreement (labor contract)

agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time

drug testing (p 344)

alcohol is the most widely used drug in the workplace w/ an estimated 6.5% of full time US employees believed to be heavy drinkers. 40% reflects the number of industrial injuries and fatalities related to alcohol abuse according to the dept of health and human services' substance abuse and mental health services associated more than 8 percent of full time workers ages 18-49 use illegal rugs. in some industries such as food services and construction, the percentage of workers using illegal drugs is much higher.

secondary boycott

an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the taft hartley act ex: boycotting a supermarket that carries goods produced by a canning company that is subject to strike

lockout

an attempt by management to put pressure on unions by temporarily closing the business workers receive no pay during a lockout

union

an employee organization whose main goal is representing its members in employee-management negotiation of job related issues

american federation of labor (AFL)

an organization of craft unions that championed fundamental labor issues; founded in 1886 federation of craft unions led by Samuel Gompers in 1890s

craft union

an organization of skilled specialists in a particular craft or trade

the nonprofit American Arbitration Association is the dominant organization providing ___ for dispute resolution

arbitrators

industrial revolution

brought enormous productivity increases, gained through mass production and job specialization, that made the US an economic world power. This growth, however, created problems for workers in terms of productivity expectations, hours of work, wages, job security, and unemployment the industrial revolution made the US an economic world power through huge increases in PRODUCTIVITY form mass production

the new coalition formed by the teamsters' james p hoffa and the service employees international union (SEIU) in 2005 is known as:

change to win

closed shop agreement

clause in a labor agreement that specifies that workers had to be members of a union before being hired (was outlawed by the taft hartley act in 1947)

agency shop agreement

clause in a labor management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee

union shop agreement

clause in a labor management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period labor agreement by which workers do not have to be members of a union to be hired by must agree to join within a specified period of time

in germany, executive compensation is about 40 percent of that is in the US because their board of directors have many workers on them is a process known as:

co-determination some european countries such as germany have much lower ratios of executive to average worker compensation because of codetermination

givebacks

concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs during recent financial difficulties in the auto industry, labor unions offered to help management by reducing costs through GIVEBACKS

changes in social and economic environment

determine the goals of labor in a given period

comparable worth

determined with: - levels of education - training - skills should receive equal pay regardless of man or woman

labor analysts' forecasts for the future of labor unions

differ from regaining strength to continued decline

the substances that create the greatest safety problems in the workplace are ___ and ___.

drugs and alcohol

quid pro quo sexual harassment

employee's submission to conduct a sexual advance or request as a condition of employment ex: go out with me or you'll never be promoted ex: an employee's agreement to go on a date with her supervisor as a condition for keeping job

companies that have sexual harassment policies are still subject to complaints because:

employees do not know what the policies mean

health-spending accounts

employers can support employees by offering __ __ accounts which allow employees to pay elder care expenses with pretax dollars

violence in the workplace (p 345)

even though workplace violence has declined since 1990s, the threat has in no way disappeared. the bureau of labor statistics reports that more than 2 million americans are impacted by workplace violence annually. the occupational safety and health administration (OSHA) reports that homicides account for 16 percent of all workplace deaths and are the number one cause of death for women in the workplace. in fact, 1/6 violent crimes in the US occurs at work.

industrial unions

labor organizations of unskilled and semiskilled workers in mass production industries such as automobiles and mining includes: - skilled workers - unskilled workers - workers in a specific union

right to work laws

legislation that gives workers the right, under an open shop agreement, to join or not join a union if it is present

the NFL used a __ to force players to agree to a new labor management agreement

lockout

the supreme court decision in 1938 allowing companies to hire replacement workers has resulted in

more hostility and violence

the aging of the workforce and the increasing numbers of people over 65 mean that

more older workers will be concerned with elder care

workers originally formed labor unions to __ themselves from unfair treatment and bad working conditions

protect

union security clause

provision in a negotiated labor management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union included because all workers who benefit from having a union should help pay for it

the purpose of a strike in a labor dispute is to

reduce a company's production and revenue

equal pay act of 1963

requires companies to give equal pay to men and women doing the same job

managers who are proactive anticipate problems with employees and work to ___ them

resolve

the taft hartley act led to the merger of AFL and CIO because it

restricted union power

goals of labor unions in 1930s

right to organize

a union would give back previous gains such as pay raises or other benefits won in earlier negotiations:

to save jobs

employee free choice act (EFCA)

would make it much easier for unions to organize workers, would replace the secret ballot now used in union certification with a card check whereby workers could openly approve union representation simply by signing a card unions have strongly urged congress to pass this act