ch 15 comp unions

union role in wage and salary admin

4 explanations for decline

basis of pay

Most contracts specify hourly and overtime pay, premium pay, and pay schedule.

union decline

declining industries are unionized, growing industries less so workers do not see unions as a solution reduced union organizing efforts mgt is taking an increasingly hard stance against unions in general and union demands in particular

deferred wage inc

negotiated at initial contract with timing and amount specified

pay for knowledge

pay ee more for learning a variety of different jobs or skills

cost of living adjustment

periodic adjustments based on changes in the consumer price index

Role of Unions in Wage and Salary Policies and Practices

role outlined primarily in the CONTRACT basis of pay, occupation wage differentials, experience/merit differentials, other differentials, vacation and holidays wage adjustment provisions.

changing stance of unoins

two tier wages

workers show strong interest in joining a union when

workplace relations are bad mgt is not trustworthy workers feel they have little influence over decisions affecting them unions may be down but not out

Contracts usually specify occupation-wage differentials.

A single rate prevails within occupations. Though rare, some contracts specify a single standard rate for all jobs.

Wage ranges

Agreements may specify wage ranges. Seniority moves workers through the range. This process is automatic progression. Less common, is moving employees through the wage range based on merit. Disputed merit appraisals may be grieved. A third method of moving through the range is to combine automatic and merit progression. Automatic up to midpoint, merit-based thereafter.

general wage levels union impact

Do unions raise wages? Making comparisons is difficult due to measurement problems. Ideal situations rarely exist. One strategy is compare firms within the same industry at different levels of unionization. Another strategy is compare two industries that vary dramatically in level of unionization. The Bureau of Labor Statistics has data on unionized and nonunionized firms. The best conclusion about union versus nonunion wage summarizes 114 studies. Unions do make a difference in wages; across all studies and all time periods. The size of the gap varies from year to year. Union employees in the public sector earn about 22% more than nonunion workers. There are some large variations across unions, depending on the occupation. Wage concessions have become more prominent. Experts claim these concessions reduce the union workers' advantage

structure of wages

Two dimensions of the union impact on the structuring of wage packages include: the division b/w direct wages and ee benefits the evolution of two tier wage pay plans

structure of wages two tier

Two-tier wage pay plans differentiate pay based on hiring date. For management, wage tiers can be used as a cost control strategy to allow expansion or investment, or as a cost-cutting device to allow economic survival.

structure of wages benefits

Unions add 30 - 40% to benefits. Unionization means higher expenditures. 213% higher pension and 136% higher insurance.

profit sharing

advantages are debatable saving and creating jobs is rapidly becoming top priority

gain sharing plans

align workers and management to streamline operations and cut costs. Cost savings are split between the organization and the workers. Unions delay taking a stand until real costs and benefits are apparent.

lump sum

awards are one-time cash payments, not added to base wages. One-third of contracts offer these awards

Spillover effect

employers avoid unionization by offering wages, benefits, and conditions won in unionized firms. Management avoids union 'interference' in decision making and workers enjoy rewards. Occurs less often as union power diminishes.

reoopener clause

specific wages will be renegotiated at a specified time or conditions

Employee stock ownership plans (ESOPs)

A company under intense competition may control base wage by giving employees part ownership.

other contractual differential provisions

Different pay for employees in different geographic regions, and cost of living. Some contracts provide for part-time and temporary employees. Some pay above full-time wages, some below. Vacation and holiday entitlements are frequently found in labor contracts.

Unions and alternative reward systemps

Lump-sum . Employee stock ownership plans (ESOPs) pay for knowledge plans unions may favor these plans as they make each worker more valuable and less expendable gain sharing plans

Wage adjustment provision

Multiyear contracts make provisions for wage adjustments. Three major ways these adjustments might be specified. deferred wage inc reopener clause cost of living adj

impact of unions on wage determination

general wage and benefit levels structure of wages nonunion firms also known as spillover effect wage and salary policies and practices in unionized firms