HR 501 CH 13-14

Distributive Bargaining (p. 601)

The part of the labor-management negotiation process that focuses on diving a fixed economic "pie" between two sides. A wage increase for example, means that the union gets a larger share of the pie, management a smaller share. It is a win-lose situation.

Introduction

Unions help achieve worker goals such as higher wages, worker protection and a say in their workplace. The ability to strike is negotiating leverage. Such conflict must be balanced against common interests to assure the ability of the company to compete and survive.

Flexible Spending Accounts

Advantages: Pretax contribution; increase in take-home pay. Disadvantages: Administrative costs; balance goes to employer.

Impasse Resolution Procedures

1. Mediation: 1a. A procedure for resolving collective bargaining impasses by which a mediator with no formal authority acts as a facilitator and go-between in the negotiations. 1b. The most widely used third-party impasse procedure is mediation. Most mediators work for the Federal Mediation and Conciliation Service (FMCS), which is an independent agency that was set up by the Labor Management Relations Act (LMRA). There are also mediators that work in the public sector. The parties also could bring in their own mediator, if they are able to agree on a person and reach a payment arrangement. If one uses the FMCS, the service is free and voluntary. 2. Fact Finder 2a. A person who reports on the reasons for the labor-management dispute and the views and arguments of both sides and offers a nonbinding recommendation for settling the dispute. 2b. The Railway Labor Act and the national emergency procedures of the LMRA include fact-finding procedures. These processes have not always produced substantial results. Some states where strikes are prohibited in the public sector have established a fact-finding procedure. If one side is assigned blame by a neutral, a solution may follow even though the fact-finder holds no formal power. This is a semi-judicial process. A hearing is held when an impasse is reached in contract negotiation to determine where the parties differ. The parties must organize their points. The hearing will clarify positions and the gaps that exist. The fact-finder encourages the parties to present their justifications and records them. Some fact-finders are empowered to recommend a "fair" settlement. The fact-finder normally writes a report. This report will be released to the press. This should educate the public. If added costs are involved, the education process is a very important one for the taxpayers involved. The publicized report may also create pressure on one or both of the parties, especially if they are being extreme or otherwise unreasonable. The report may also be passed on to either an arbitrator (see interest arbitration below) or a governing body like the state legislature. A number of reservations have been expressed about fact-finding. There is no finality in the process itself. The final report is a recommendation and nothing more. Will the arbitrator or the Legislature pay attention to the fact finder's report, or will it merely delay the process and ultimately be ignored? Could the process be accelerated and resources saved by going immediately to a binding decision-making process like interest arbitration? Further, if a fact-finder issues a recommendation that is very unfavorable to the administrative powers that be, will he be employed again in the future? If the fact finder is worried about his future employability, he may not make recommendations that are likely to offend the government bodies involved. 3. Arbitration 3a. A procedure for resolving collective bargaining impasses by which an arbitrator chooses a solution to the dispute. 3b. One can combine mediation and arbitration. On rare occasions, this has been voluntarily undertaken in the private sector. The neutral would mediate first. Any unresolved issues will be arbitrated. This will put an end to an impasse in relatively short order. The main difficulty with this process is the parties need to be as open and flexible as possible in order for mediation to succeed. Some people may fear being too open because this could compromise their position in a subsequent arbitration on the unresolved issues. If the other side was intransigent, the arbitrator might render a decision that disadvantaged the more reasonable side. One really needs an experienced, trustworthy, and insightful neutral to carry this process out well.

Introduction

Average cost benefits is about 46.3% for every payroll dollar and about 31.6% of total compensation package.

Family- Friendly Policies (2 of 2)

Child Care 1. Supply and help employees collect information about cost and quality of available child care. 2. Provide vouchers or discounts for existing child care facilities or 3. Provide child care facilities at or near worksites.

Consolidate Omnibus Budget Reconciliation Act (COBRA)

Consolidate Omnibus Budget Reconciliation Act (COBRA): requires employers to permit employees to extend health insurance coverage at group rates for up to 36-months following a qualifying event, such as, termination.

Management's Preparation for Negotiations

Management Preparation in Seven Areas: 1. Establishing interdepartmental contract objectives. The employer's industrial relations department needs to meet with the accounting, finance, production, marketing, and other departments and set contract goals that will permit each department to meet its responsibilities. As an example, finance may suggest a cost figure above which a contract settlement would seriously damage the company's financial health. The bargaining team needs to be constructed to take these various interests into account. 2. Reviewing the old contract. This step focuses on identifying provisions of the contract that might cause difficulties by hindering the company's productivity or flexibility or by leading to significant disagreements between management and the union. 3. Preparing and analyzing data. Information on labor costs and the productivity of competitors, as well as data the union may emphasize, needs to be prepared and analyzed. The union data might include cost-of-living changes and agreements reached by other unions that could serve as a target. Data on employee demographics and seniority are relevant for establishing the costs of such benefits as pensions, health insurance, and paid vacations. Finally, management needs to know how much it would be hurt by a strike. How long will its inventory allow it to keep meeting customer orders? To what extent are other companies positioned to step in and offer replacement products? How difficult would it be to find replacement workers if the company decided to continue operations during a strike? 4. Anticipating union demands Recalling grievances over the previous contract, having ongoing discussions with union leaders, and becoming aware of settlements at other companies are ways of anticipating likely union demands and developing potential counterproposals. 5. Establishing the cost of possible contract provisions. Wages have not only a direct influence on labor costs but often an indirect effect on benefits costs (such as Social Security and paid vacation). Recall that benefits add about 45 cents to every dollar's worth of wages. Also, wage or benefit increases that seem manageable in the first year of a contract can accumulate to less manageable levels over time. 6. Preparing for a strike. If management intends to operate during a strike, it may need to line up replacement workers, increase its security, and figure out how to deal with incidents on the picket line and elsewhere. If management does not intend to operate during a strike (or if the company will not be operating at normal levels), it needs to alert suppliers and customers and consider possible ways to avoid the loss of their business. This could even entail purchasing a competitor's product in order to have something to sell to customers. 7. Determining strategy and logistics. Decisions must be made about the amount of authority the negotiating team will have. What concessions can it make on its own, and which ones require it to check with top management? On which issues can it compromise, and on which can it not? Decisions regarding meeting places and times must also be made.

Enforcement

National Labor Relations Board (NLRB) enforces NLRA ** Five-member board appointed by the president with 33 regional offices. ** NLRB's Major Functions: 1. Conduct & Certify representation elections. 2. Prevent unfair labor practices. ** ULP charges are filed and investigated by regional offices.

Employee Wellness Program

Passive: little or no outreach to individuals and provide no ongoing motivational support. Active: Assume that behavior change requires not only awareness and opportunity, but also support and reinforcement.

Union Membership 2

Reasons for decline in union membership: 1. Structural changes in the economy. 2. Increased employer resistance. 3. Substitution with HRM 4. Substitution by Government Regulation 5. Workers View 6. Union Actions and industry structure.

marginal tax rate definition

marginal tax rate: The percentage of an additional dollar of earning that goes to taxes. Example of marginal tax rates for an employee salary of $80k.

Employee Benefits Cost by Category, Private Sector Workers

% of Total Compensation: 1. 8% Legally required 2. 4.2% Retirement and Savings Plans 3. 7.6% Medical and other insurance. 4. 6.9% Payments for time not worked. 5. 3.5% Supplemental Pay Total Benefits= $9.60, 30.6% of total compensation ($31.32).

Four Categories of Workers' Compensation Benefits:

* Disability Income * Medical Care * Death Benefits * Rehabilitative Services

Table 14.5 Examples of Union Unfair Labor Practices.

* Mass picketing in such numbers that nonstriking employees are physically barred from entering the plant. * Ats of force or violence on the picketing line or in connection with a strike. * Threats to employees of bodily injury or that they will lose their jobs unless they support the union's activities. * Fining or expelling members for crossing a picket line that is unlawful. * Fining or expelling members for filing unfair labor practice charges or testifying before the NLRB. * Insisting during contract negotiations that the employer agree to accept working conditions that will be determined by a group to which it does not belong. * Fining or expelling union members for the way they apply the bargaining contract while carrying out their supervisory responsibilities. * Causing an employer to discharge employees because they spoke out against a contract proposed by the union. * Making a contract that requires an employee to hire only members of the union or employees "satisfactory" to the union. * Insisting on the inclusion of illegal provisions in a contract. * Terminating an existing contract and striking for a new one without notifying the employer, the Federal Mediation and Conciliation Service, and the state mediation services (where one exists). * Attempting to compel a beer distributor to recognize a union (the union prevents the distributor from obtaining beer at a brewery by inducing the brewery's employees to refuse to fill the distributor's orders). * Picketing an employer to force it to stop doing business with another employer who has refused to recognize the union (a "secondary boycott").

Labor Relations Outcomes

* Strikes: Impose significant costs on union members, employers and society. * Wages and Benefits: Unionized workers receive 26% higher wages that non-union counterparts. * Productivity: Unions believed to decrease productivity in three ways.... * Profits and Stock Performance May suffer if costs are raised

Table 14.4 (P. 592) Examples of Employer Unfair Labor Practices

* Threatening employees with loss of their jobs or benefits if they join or vote for a union. * Threatening to close down a plant if organized by a union. * Questioning employees about their union membership or activities in a manner that restrains or coerces them. * Spying or pretending to spy on union meetings. * Granting wage increases that are timed to discourage employees from forming or joining a union. * Taking an active part in organizing a union or committee to represent employees. * Providing preferential treatment or aid to one of several unions trying to organize employees. * Discharging employees for urging other employees to join a union or refusing to hire applicants because they are union members. * Refusing to reinstate workers when job openings occur because the workers participated in a lawful strike. * Ending operation at one plant and opening the same operation at another plant with new employees because employees at the first plant joined a union. * Demoting or firing employees for filing an unfair labor practice or for testifying at an NLRB hearing. * Refusing to meet with employees; representatives because the employees are on strike. * Refusing to supply the employees' representative with cost and other data concerning a group insurance plan covering employees. * Announcing a wage increase without consulting the employees' representative. * Failing to bargain about the effects of a decision to close one of employer's plants.

Unfair Labor Practices - Labor Unions

1. 1947 Taft-Hartley Act Outlawed unfair labor union practices. 2. 1959 Landrum-Griffin Act regulate unions' actions and internal affairs (like financial disclosure and conduct of elections). Section 8(b)(1)(a) of the NLRA states that a labor organization is not to "restrain or coerce employees in the exercise of the rights guaranteed in Section 7" (described earlier). Table 14.5 provides examples of union unfair labor practices.

American Federation of Labor and Congress of Industrial Organizations AFL-CIO

1. AFL-CIO is not a labor union but rather an association that seeks to advance the shared interests of its member unions at the national level. 2. There are 54 affiliated national and international unions and thousands of locals. 3. Represents labor's interests in public policy issues such as civil rights, economic policy, safety, and occupational health. 4. Provides information and analysis that member unions can use in their activities: organizing new members, negotiating new contracts, and administering contracts.

Nondiscrimination Rules, Qualified Plans, and Tax Treatment:

1. All benefits packages must meet certain rules to be classified as qualified plans. 2. A qualified plan receives more favorable tax treatment than a non-qualified plan. 3. Rules must be satisfied for a plan to obtain qualified status. 4. A benefit cannot discriminate in favor of "highly compensated employees"

Cash Balance Plans

1. An employer sets up an individual account for each employee and contributes a percentage of the employee's salary. 2. All contributions come from employer. 3. Account earns interest at a predefined rate.

The public sector

1. Around 35.7% of government emplyees were union members in 2014. 2. Strikes are illegal at the federal level and in many states for government workers. 3. In 2012, 4 of 19 major work stoppages were in the public sector.

Nature of the Workforce

1. Assessing employee benfits preferences is essential. 2. Market research methods assess employees preferences same way consumers demand for products and services assessed. 3. Care must be taken not to raise employee expectations regarding future changes. 4. Methods to determine employee preferences include interviews, focus groups and questionnaires: * What benefits are most important to you? * If you could choose one new benefit, what would it be? * If you were given X dollars for benefits, how would you spend it?

Staffing Responses to Control Benefits Cost Growth

1. Because benefits cost per hour can be reduced by having employees work more hours. 2. Classify employees as exempt, since they can reduce their benefit costs per hour without having to pay overtime. 3. Classify workers as independent contractors rather than employees, eliminating the employer's obligation to provide legally required benefits.

Summary

1. Benefits costs are substantial and continue to grow rapidly, most notably health care. 2. Employers must offer a benefits package that permits them to compete in the labor market. Beyond investing more money in benefits, this attraction and retention of quality employees can be helped by better communication of the value of the benefits package and by allowing employees to tailor benefits to their own needs trough flexible benefits plans. 3. Employees will increasingly become responsible for their own economic security and are being asked to increase proportion of costs they pay and to use data on health care quality to make better choices about health care.

Management's Willingness to Take a Strike

1. Can the company remain profitable over the long run if it agrees to the union's demands? 2. Can the company continue to operate in the short run despite a strike?

Union Security:

1. Checkoff Provision 2. Closed Shop 3. Union Shop 4. Agency Shop 5. Maintenance of Membership 6. Right-to-Work Laws

Preferred Provider Organization (PPO)

1. Contract with employers and insurance companies to provide care at reduce fees. 2. Do not provide benefits on prepaid basis. 3. Employees often are not required to use just PPOs. 4. Less expensive than traditional health care but more expensive than HMOs.

Questions Used by Arbitrators to Reach a Decision:

1. Did the employee know the rule and consequences of violating it?...... "Did the employee know what the rule or expectation was and what the consequences of not adhering to it were" (Noe, et. al, p. 608-9)? 2. Was the rule applied in a consistent and predictable way?...... "Was the rule applied in a consistent and predictable way? In other words, are all employees treated the same" (Noe, et. al, p. 608-9). 3. Were facts collected in a fair and systematic way?...... "Are facts collected in a fair and systematic manner? An important element of this principle is detailed record keeping. Both employee actions (such as tardiness) and management's response (verbal or written warnings)should be carefully documented" (Noe, et. al, p. 608-9). 4. Did the employee have the right to question facts and present a defense?...... "Does the employee have the right to question the facts and present a defense? An example in a union setting is a hearing with a shop steward present" (Noe, et. al, p. 608-9). 5. Does the employee have the right of appeal?...... "Does the employee have the right to appeal a decision? An example is a recourse to an impartial third party, such as an arbitrator" (Noe, et. al, p. 608-9). 6. Is there progressive discipline?...... "Is there progressive discipline? Except perhaps for severe cases, an arbitrator will typically look for evidence that an employee was alerted as early as possible that behavior was inappropriate and the employee was given a chance to change prior to some form of severe disciples, such as discharge" (Noe, et. al, p. 608-9). 7. Are there mitigating circumstances?...... "Are there unique mitigating circumstances? Although discipline must be consistent, individuals differ in terms of their prior service, performance, and discipline record. All of these factors may need to be considered" (Noe, et. al, p. 608-9).

Union and Management Interactions: Contract Negotiations (1 of 4)

1. Distributive Bargaining: negotiating for what are known as fixed resources, which typically means the price of a product or service. In these situations, you may need to adopt a distributive bargaining strategy, which is based on the idea that your gain means the other party's loss. In other words, your goal is to negotiate in such a way that when you reach an agreement, you have given up less than the other party. Your goal is to win as much as you can during the negotiation, and, typically, that means that the other party has to give up something. There is not enough for everyone to get what they want, so when one side gets something, the other side loses something. For example, let's say a vendor's "walk-away" price for a service is $5,000, but your "walk away" price is $4,800. Your goal is to get the vendor as close to your walk-away price as possible without blowing the deal. If you get that vendor to agree to $4750, that vendor loses $250 and you lose $50, which means you gave up less than the other party.

Retirement Plans - Defined Contribution

1. Does not promise employees a specific benefit level upon retirement. 2. Employers shift investment risk to the employee. 3. No need to calculate payments based on age and service. 4. Most prevalent in small companies.

Exclusions from NLRAs Coverage: The NLRA specifically excludes from its coverage individuals who are:

1. Employed as a supervisor 2. employed by a parent or spouse 3. employed as an independent contractor 4. employed in the domestic service of any person or family in a home. 5. employed as agricultural laborers. 6. Employed by an employer subject to the Railway Labor Act 7. Employed by a federal, state, or local government 8. employed by any other person who is not an employer as defined in the NLRA.

Benefits Communication Methods

1. Enrollment Materials 2. Communication with organization representative 3. One-to-One employee benefits counseling 4. Internet 5. Direct Mail 6. Newsletters 7. Benefit Fairs 8. Virtual Education 9. Social Media

The Labor Relations Frame Work

1. Environmental Context: * Legal * Stakeholder Needs * Globalization * High-Performance Work Systems 2. Participants: * Employees and their unions, management, and the government. 3. Web of Rules (rules of the game): Provides institutions that resolve conflict in a way that minimizes its costs to management, employees, and society. They describe the process by which labor and management interact and resolve disagreements (such as steps followed in settling contract grievances). Mediation, arbitration, and participation in decision making. These ideas formed the basis for the development in the 1940s of schools and departments of industrial and labor relations to train labor relations professions who, costly forms of conflict such as strikes (which were reaching record levels at the time) and maximize integrative (win-win) solutions to such disagreements. 4. Ideology: For the industrial relations system to operate properly, the three participants must, to some degree, have a common ideology (e.g., acceptance of the capitalist system) and must accept the roles of the other participants. Acceptance does not translate into the convergence of interests, however, to the contrary, some degree of worker-management conflict is inevitable because although the interests of the two parties overlap (e.g., survival of the firm and thus survival of workers' jobs and investors' profits), they also diverge in key respects (such as how to divide the economic profits between workers and investors).

Typical Provisions in Collective Bargaining Contracts (1-2)

1. Establishment and administration of the agreement: * Bargaining unit and plant supplements. * Contract duration and reopening and renegotiation provisions. * Union security and the checkoff. * Special bargaining committees. * Grievance Procedures * Arbitration and Mediation. * Strikes and lockouts. * Contract Enforcement 2. Functions, Rights, and Responsibilities: * Management rights clauses * Plant removal. * Subcontracting. * Union activities on company time and premises. * Union management cooperation. * Regulation of technological change. * Advance notice and consultation. 3. Wage Determination and Administration: * General provisions * Rate structure and wage differentials. * Allowances. * Incentive systems and production bonus plans. * Production standards and time studies. * Job classification and job evaluation. * Individual wage adjustments. * General wage adjustments during the contract period.

The international Context

1. Except for China, Russia, and Ukraine... U.S. has more union members than any other country. 2. Growing globalization of markets will continue to put pressure on labor costs and productivity.

Health Maintenance Organization (HMO)

1. Focus on preventive care and outpatient treatment. 2. Require employees to use only HMO services and provide benefits on a prepaid basis. 3. Physicians and health-care workers paid a flat salary to reduce incentive of raising costs.

Retirement Plans- Defined Benefit

1. Guarantees a specified retirement benefit level to employees. 2. Insulates employees from investment risk, which is borne by the company. 3. PBGC guarantees basic retirement benefit in case of financial difficulties. 4. ERISA increased fiduciary responsibilities of pension plan trustees, established vesting rights and portability provisions and established PBGC.

Types of employee wellness designs

1. Health Education: 2. Fitness Facilities: 3. Outreach/Follow-up:

Negotiation Stages and Tactics

1. Includes many individuals, as union proposals are presented. 2. Each side makes decisions regarding priorities, theirs and the other parties. 3. Momentum or pressure may build toward settlement as impasse becomes more apparent. 4. may involve interaction with negotiators or facilitators.

Sex, Age, and Disability

1. It is illegal for companies to require women to contribute more to a pension plan than men. 2. Employers cannot discriminate against employees over age 40 in pay or benefits. 3. Employees with disabilities have equal access to same health insurance coverage as other employees.

Summary

1. Labor unions seek to represent their members' interests in the workplace. 2. May witness diminished ability to compete effectively in global economy. 3. Management in non-union companies feel compelled to resist unionization. 4. Union has lost membership and bargaining power in the private sector. 5. Management and unions are seeking more effective ways of working together to enhance competitiveness while giving employees a voice in workplace decisions.

Reasons for benefits growth

1. Laws mandating benefits passed during and after the Great Depression 2. Wage and price controls instituted during WWII and Labor shortage. 3. Tax treatment of benefits programs- marginal tax rate. (The percentage of an additional dollar of earning that goes to taxes) 4. Cost advantage of groups vs. individual insurance. 5. Organized labor. 6. Employer differentiation.

Private Group Insurance: 1. Medical Insurance 2. Disability Insurance

1. Medical Insurance: most important benefit; most full-time employees get such benefits, especially in larger workplaces. 2. Disability Insurance: Includes short-term and long-term plans, need to be coordinated with benefits received from other programs.

Types of Defined Contribution Plans

1. Money purchase plans 2. Profit sharing plans 3. Employee Stock Ownership Plans. 4. 401(k) Plans

Benefits are unique because:

1. More regulation of benefits than direct pay. 2. Almost obligatory for employers to provide. 3. Complex for employees to understand. 4. Employers are passing health care costs increases to employees through higher premiums and deductibles.

Organizing Campaigns: Strategies and Tactics

1. NLRB may set aside election results if the employer created an atmosphere of confusion or fear of reprisals. 2. Associate union membership- A form of union membership by which the union receives dues in exchange for services (e.g. health insurance, credit cards) but does not provide representation in collective bargaining. 3. Corporate campaigns- Union activities designed to exert public, financial, or political pressure on employers during the union organizing process.

Union Structure, Administration, and Membership

1. National and International Unions: * Craft Unions. * Industrial Unions 2. Local Unions: responsible for contract negotiations and day-to-day contract administration, including grievance procedure. 3. AFL-CIO: Advances shared interest of its member unions at the national level.

Local Unions

1. Negotiation occurs at the local levels as well as over work rules and other issues that are locally determined. 2. Administration of the contract is largely carried out at the local union level. 3. Bulk of day-to-day interactions between labor and management takes place at the local union level. 4. National Union provides assistance. 5. Most union contract is with the shop steward.

Grievance Procedure

1. Negotiation process occurs every three years. 2. Negotiation & Administration processes are linked. 3. Effectiveness of grievance procedures' three criteria: 3.1: How well are day-to-day problems resolved? 3.2: How well does the process adjust to changing circumstances? 3.3: In multi-unit contracts, how well does the process handle local contract issues? 4. Duty of Fair Representation: all members have equal access to and representation by the union.

Factors that Impact Ability to Take a Strike

1. Product demand 2. Product Perishability 3. Technology 4. Availability of replacement workers. 5. Multiple production sites and staggered contracts. 6. Integrated facilities. 7. Competitor product sources

Social Security

1. Provides, old-age insurance, unemployment insurance, survivor's insurance, disability insurance, hospital insurance, and supplementary medical insurance. 2. Free from federal tax and state tax in some states. 3. Full benefits begin at age 65 or reduced benefits at 62. 4. Both employers and employees are assessed payroll tax. 5. Eligibility age for benefits and tax penalty for earnings influence retirement decisions.

Primary factors to look for that could mean a team violates national labor law: Table 14.12 (When teams may be illegal)

1. Representation: Does the team address issues affecting non-team employees? (Does it represent other workers?). 2. Subject matter: Do these issues involve matters such as wages, grievances, hours of work, and working conditions? 3. Management Involvement: Does the team deal with any supervisors, managers, or executives on any issue? 4. Employer Domination: Did the company create the team or decide what it would do and how it would function?

Affordable Care Act

1. Signed into law 2010. 2. Provisions That will impact employers. *** Penalties for not providing health benefits. *** Tax Increases *** Coverage of Dependents. *** Wellness Programs

Cooperative Labor-Management Strategies

1. Signs of transformation from adversarial approach to union-management relations: 1.1 : increasing worker involvement and high performance work practices and systems. 1.2 : Participation 1.3 : Re-organizing work to increase flexibility

Benefits Program

1. Social Insurance 2. Private Group Insurance. 3. Retirement 4. Pay for Time Not Worked 5. Family-Friendly Policies

Goals and Strategies 2

1. Society: Labor unions' major benefit to society has been balancing power and institutionalization of industrial conflict in the least costly way. 2. National Labor Relations Act (NLRA, 1935): Provides a legal framework conducive to collective bargaining. 3. Management: Decides to encourage or discourage unionization. 4. Labor Unions: Give workers formal and independent voice through collective action in setting employment terms and conditions.

Health Care: Controlling Cost and Improving Quality

1. U.S. spends more on health care than any other country. 2. Health-care expenditures have risen from 5% of GNP (Gross National Product) in 1960 to 16% (about $2.7 trillion) today. 3. U.S. trails Japan and Western Europe on measures of life expectancy and infant mortality. 4. There is a trend to shift costs to employees through the use of higher deductibles, coinsurance, exclusions and limitations, and maximum benefits.

Negotiation Preparation Checklist Analyzing Your Perspective

1. What do I want from this negotiation? List short-term and long-term goals and dreams related to the negotiation. 2. What are my strengths—values, skills, and assets—in this negotiation? 3. What are my weaknesses and vulnerabilities in this negotiation? 4. Why is the other party negotiating with me? What do I have that they need? 5. What lessons can I apply from past negotiations to improve my performance? 6. Where and when should the negotiation take place? 7. How long should talks last? What deadlines are we facing? 8. What are my interests in the upcoming negotiation? How do they rank in importance? 9. What is my best alternative to a negotiated agreement, or BATNA? That is, what option would I turn to if I'm not satisfied with the deal we negotiate or if we reach an impasse? How can I strengthen my BATNA? 10. What is my reservation point—my indifference point between a deal and no deal? 11. What is my aspiration point in the negotiation—the ambitious, but not outrageous, goal that I'd like to reach? 12. What are the other side's interests? How important might each issue be to them? 13. What do I think their reservation point and BATNA maybe? How can I find out more? 14. What does their BATNA mean in terms of their willingness to do a deal with me? Who has more power to walk away? 15. Is there a zone of possible agreement (ZOPA) between my reservation point and the other side's? If there clearly is no room for bargaining, then there's no reason to negotiate—but don't give up until you're sure. You may be able to add more issues to the discussion. 16. What is my relationship history with the other party? How might our past relationship affect current talks? 17. Are there cultural differences that we should prepare for? 18. To what degree will we be negotiating electronically? Are we prepared for the pros and cons of negotiating via email, teleconference, etc.? 19. In what order should I approach various parties on the other side? 20. What is the hierarchy within the other side's team? What are the patterns of influence and potential tensions? How might these internal dynamics affect talks? 21. What potential ethical pitfalls should we keep in mind during the negotiation? 22. Who are my competitors for this deal? How do our relative advantages and disadvantages compare? 23. What objective benchmarks, criteria, and precedents will support my preferred position? 24. Who should be on my negotiating team? Who should be our spokesperson? What specific responsibilities should each team member have? 25. Do we need to involve any third parties (agents, lawyers, mediators, interpreters)? 26. What authority do I have (or does our team have) to make firm commitments? 27. Am I ready to engage in interest-based bargaining? Be prepared to try to create value by trading on differences in resources, preferences, forecasts, risk tolerance, and deadlines. 28. If we disagree about how the future plays out, can we explore a contingency contract—that is, stipulate what will happen if each side's prediction comes true? 29. What parties not yet involved in the negotiation might also value an agreement? 30. Have I practiced communicating my message to the other side? How are they likely to respond? 31. Does the agenda make room for simultaneous discussion of multiple issues? 32. Is an agreement likely to create net value for society? 32. How can we reduce potential harm to outside parties?

Union and Management Interactions: Contract Negotiations (2 of 4)

2. Integrative Bargaining: negotiations in which it's in your interest to find a solution in which both parties feel as if they gained something in the deal. This is known as integrative bargaining, and the best way to think about this strategy is that it's a "win-win" for both parties. The idea is that you're negotiating in such a way that you take the other party's wants, needs, fears, and concerns into the equation. Instead of simply worrying about losing less than the other party, you are looking for a solution in which both parties have to give up something to finalize the deal. Using the previous illustration of negotiating with a vendor, integrative bargaining would seek to ensure that both you and the vendor lost an equal amount. With that in mind, you would agree to a price of $4,900, which means that the vendor loses $100 in the negotiation, and you also lose $100. You would both leave the negotiation table, with both of you feeling that you compromised but took each other's wants and needs into consideration.

Union and Management Interactions: Contract Negotiations (3 of 4)

3. Attitudinal Bargaining: ************Also known as Attitudinal Structuring: Such a bargaining involves shaping and reshaping of attitudes to positive and cooperative. Examples of attitudinal structuring and shaping may be from hostile to friendly, from non-cooperative to cooperative, from un-trust to trust, and so on. The need for attitudinal structuring or shaping is understood by the fact that any backlog of bitterness between the parties leads to bargaining impasse by erupting and destroying negotiations. Therefore, attitudinal structuring is required to maintain smooth and harmonious industrial relations. The attitudinal structuring helps achieve 'good-faith bargaining'.

Union and Management Interactions: Contract Negotiations (4 of 4)

4. Intra-organizational Bargaining: In practice, there are different groups in an organization by department-wise and level -wise. At times, different groups may perceive the outcomes of collective bargaining process differently. For example, the unskilled workers may feel that they are neglected or women workers may feel that their interests are not taken into consideration. Not only that, there may be differences even within the management. While personnel manager may support increase in wages, the finance manager may oppose the same on the ground that it will disturb the company's financial position. Given such situation, intra-organizational consensus is required for the smooth acceptance of the agreements arrived at collective bargaining. Thus, intra-organizational bargaining involves maneuvering to achieve consensus with the workers and management.

Typical Provisions in Collective Bargaining Contracts (2-2)

4. Job or Income Security * Hiring and transfer arrangements * Employment and income guarantees * Reporting and call-in pay * Supplemental unemployment benefit plans * Regulation of overtime, shift work, etc. * Reduction of hours to forestall layoffs * Layoff procedures; seniority; recall * Worksharing in lieu of layoff * Attrition arrangements * Promotion practices * Training and retraining * Relocation allowances * Severance pay and layoff benefits plan * Special funds and study committees 5. Plant Operations * Work and shop rules * Rest periods and other in-plant time allowances * Safety and Health * Plant committees * Hours of work and premium pay practices * Shift operations * Hazardous work * Discipline and discharge 6. Paid and Unpaid Leave * Vacations and holidays * Sick leave * Funeral and personal leave * Military leave and jury duty 7. Special Groups * Apprentices and learners * Workers with disabilities and older workers * Women * Veterans * Union representatives * Non-discrimination clause

Table 14.7 Most common issues raised by companies in representation election campaigns.

Company issues & Percentage of Campaigns. * Improvements not dependent on unionization: 85% * Wages good, equal to, or better than under union contract: 82% * Financial costs of union dues outweigh gains: 79% * Union is outsider: 79% * Get facts before deciding; employer will provide facts and accept employee decision: 76% * If union wins, strike may follow: 70% * Loss of benefits may follow union win: 67% * Strikers will lose wages; lose more than gain: 67% * Unions not concerned with employee welfare: 67% * Strike may lead to loss of jobs: 64% * Employer has treated employees fairly and/or well: 60% * Employees should be certain to vote: 54%

Unemployment Insurance

Eligibility for Benefits: 1. Have a prior attachment to the workforce. 2. Are available for work. 3. Are actively seeking work. 4. Were not discharged for cause.

Steps in a Typical Grievance Procedure Table 14.11

Employee-Integrated Grievance: Step 1: a. Employee discusses grievance or problem orally with supervisor. b. Union steward and employee may discuss problem orally with supervisor. c. Union steward and employee decide (1) whether problem has been resolved or (2) if not resolved, whether a contract violation has occurred. Step 2: a. Grievance is put in writing and submitted to production superintendent or other designated line manager. b Steward and management representative meet and discuss grievance. Management's response is put in writing. A member of the industrial relations staff may be consulted at this stage. Step 3: a. Grievance is appealed to top line management and industrial relations staff representatives. Additional local or international union officers may become involved in discussions. Decision is put in writing. Step 4: A. Union decides on whether to appeal unresolved grievance to arbitration according to procedures specified in its constitution and/or bylaws. b. Grievance is appealed to arbitration for binding decision. Discharge Grievance: a. Procedure may begin at step 2 or step 3. b. Time limits between steps may be shorter to expedite the process. Union or Group Grievance: a. Union representative initiates grievance at step 1 or step 2 on behalf of affected class of workers or union representatives.

Family-Friendly Policies

Family Medical Leave Act 1. Applies to organizations with 50 or more employees within a 75-mile radius. 2. Applies to childbirth or adoption; care for a seriously ill child, spouse, or parent; or for an employee's own serious illness. 3. Employees are guaranteed the same or comparable job when they return to work. 4. Employees with less than a year of service or those who work less than 25 hours a week are not covered.

Monitoring Future Benefits Obligations

Financial Accounting Statement (FAS) 106 1. Requires that any benefits (excluding pensions) provided after retirement (the major one being health care) can no longer be funded on a pay-as-you-go basis. 2. Effect on financial statements can be substantial. 3. Balance interests of shareholders, current employees, and retirees. FAS 106: the rule issued by the Financial Accounting Standards Board in 1993 requiring companies to fund benefits provided after retirement on an accrual rather than a pay-as-you-go basis and to enter these future costs obligations on their financial statements.

Unemployment Insurance

Four Objectives: 1. Offset lost income during involuntary unemployment. 2. Help unemployed workers find new jobs. 3. Provide incentive for employers to stabilize employment. 4. Preserve investments in skills by providing workers with income during short-term layoffs.

The Labor Relations Frame Work 2

Industrial relations model by Harry Katz and Thomas Kochan: Model is helpful in laying out the types of decisions management and unions make in their interactions and consequences of such decisions for the attainment of goals in areas such as wages and benefits, job security, and the rights and responsibilities of unions and management: 3 levels where these choices occur: 1. Strategic Level: management makes basic choices such as whether to work with its union(s) or to devote its efforts to developing nonunion operations. * environmental factors or competitive challenges offer both constraints and opportunities in implementing strategies 2. Functional Level: contract negotiations and union organizing occur. 3. Workplace Level: the arena in which the contract is administered. although the relationships between labor and management at each of the three levels are somewhat interdependent, the relationship at the three levels may also differ. Ex: building an effective relationship with its unions at the strategic level, there may be significant day-to-day conflicts over work rules, grievances, and so forth at any given facility or bargaining unit (workplace level).

Relationship of Retirement Savings to Age When Savings Begins and Type of Investment Portfolio

Investment portfolio of 60% stocks, 30% Bonds, and 10% cash (historical 7.31% average return).... darker color. Investment portfolio of 100% cash (historical 3.53% average return)... lighter color.

Unfair Labor Practices - Employers

NLRA prohibits certain activities by both employers and labor unions. Employers cannot: 1. Interfere with, restrain, or coerce employees in exercising their Section 7 rights. 2. Dominate or interfere with a union. 3. Discriminate against an individual for exercising his or her right to join or assist a union. 4. Discriminate against employees for providing testimony relevant to enforcement of the NLRA. 5. Refuse to bargain collectively with a certified union.

Negotiation states and tatics

Negotiations go through various stages. In the early stages, many more people are often present than in later stages. On the union side, this may give all the various internal interest groups a chance to participate and voice their goals. This, in turn, helps send a message to management about what the union feels it must do to satisfy its members, and it may also help the union achieve greater solidarity. Union negotiators often present an extensive list of proposals at this stage, partly to satisfy their constituents and partly to provide themselves with issues on which they can show flexibility later in the process. Management may or may not present proposals of its own; sometimes it prefers to react to the unions' proposals. During the middle stages, each side must make a series of decisions, even though the outcome is uncertain. How important is each issue to the other side? How likely is it that disagreement on particular issues will result in a strike? When and to what extent should one side signal its willingness to compromise on its position? In the final stage, pressure for an agreement increases as the deadline for a strike approaches. Public negotiations may be only part of the process. Negotiators from each side may have one-on-one meetings or small-group meetings where public relationspressures are reduced. In addition, a neutral third party may become involved, someone who can act as a go-between or facilitator. In some cases, the only way for the parties to convice each other of their resolve (Or to convince their own constituents of the other party's resolve) is to allow an impasse to occur. Various books suggest how to avoid impasses by using mutual gains or integrative bargaining tactics. FOr example, Getting to Yes, by Roger Fisher and William Ury, describes four basic principles: 1. Separate the people from the problem. 2. Focus on interests, not positions. 3. Generate a variety of possibilities before deciding what to do. 4. Insist that the results be based on some objective standard.

Funding, Communicating, and Vesting Requirements

Summary Plan Description (SPD): obligates employers to describe plan's funding, eligibility requirements, risk etc. 2. ERISA guarantees that employees, after working a certain number of years, earn the right to a pension upon retirement, referred to as vesting rights. 3. Vesting Schedules that may be used: * Employees are vested after five years of service. * Employers may vest employees over a three-to-seven year period, with at least 20% in the third year and each year thereafter.

Table 14.8 Percentage of firms using various methods to oppose union organizing campaigns

Survey of employers: * Consultants used: 41% * Unfair labor practice charges filed against employer: 24% Survey of union organizers: * Consultants and.or lawyers used: 70% * Unfair labor practices by employer ********** Charges Filed: 36% ********** Discharges or discriminatory layoffs: 42% * Company leaflets: 80% * Company letters: 91% * Captive audience speech: 91% * Supervisor meetings with small groups of employees: 92% * Supervisor intensity in opposing union ********** Low: 14% ********** Moderate: 34% ********** High: 51%

Managing Benefits: Employer Objectives and Strategies

Surveys and Benchmarking: 1. Company should know what competition is doing. 2. Survey information is available from private consultants, Bureau of Labor Statistics (BLS) and Chamber of Commerce. Cost Control: 1. Larger the benefit cost, greater the savings possibility. 2. Growth rate may result in serious future costs. 3. Cost containment efforts work to extent that the employee has significant direction in choosing how much to spend in a benefit category.

The process and legal framework of organizing

The NLRB is responsible for ensuring that the organizing process follows certain steps. At eh most general level, the NLRB holds a union representation if: 1. An election may be held if at least 30% of employees in the bargaining unit sign authorization cards. 2. Secret ballot election will be held. The union is certified by NLRB if a simple majority of employees vote for it. 3. Decertification election may be held if no other election has been held within the year or if no contract is in force. 4. Certain categories of employees cannot be included in bargaining units-agricultural laborers, independent contractors, supervisors, and managers. If more than 50% of the employees sign authorization cards, the union may request that the employer voluntarily recognize it. If 50% or fewer of the employee's sign, or if the employer refuses to recognize the union voluntarily, the NLRB conducts a secret-ballot election. The union is certified by the NLRB as the exclusive representative of employees if more than 50% of employees vote for the union. If more than one union appears on the ballot and neither gains a simple majority, a runoff election is held. Once a union has been certified as the exclusive representative of a group of employees, no additional elections are permitted for one year. After the negotiation of a contract, an election cannot be held for the contr's duration or for three years, whichever comes first. The parties to the contract may agree not to hold an election for longer than three years, but an outside party cannot be barred for more than three years.

Attitudinal Structuring (p. 601)

The aspect of the labor-management negotiation process that refers to the relationship and level of trust between the negotiations. Attitudinal structuring refers to the relationship and trust between labor and management negotiators. Where the relationship is poor, it may be difficult for the two sides to engage in integrative bargaining because each side hesitates to trust the other side to carry out its part of the deal. For example, the union may be reluctant to agree to productivity-enhancing work-rule changes to enhance job security if, in the past, it has made similar concessions but believes that management did not stick to its assurance of greater job security. Thus the long-term relationship between the two parties can have a very important impact on negotiations and their outcomes.

Duty of Fair Representation

The national labor relations act requirement that all bargaining unit members have equal access to and representation by the union.

Intra- Organizational Bargaining (p. 601) intraorganizational

The part of the labor-management negotiation process that focuses on the conflicting objectives of factions within labor and management. Intraorganizational bargaining reminds us that labor-management negotiations involve more than just two parties. Within management, and to an even greater extent within the union, different factions can have conflicting objectives. High-seniority workers, who are least likely to be laid off, may be more willing to accept a contract that has layoffs (especially if it also offers a significant pay increase for those whose jobs are not at risk). Less senior workers would likely feel very differently. Thus negotiators and union leaders must simultaneously satisfy both the management side and their own internal constituencies. If they do not, they risk the union membership's rejecting the contract, or they risk being voted out of offices in the next election. Management, too, is unlikely to be of one mind about how to approach negotiations. Some will focus more on long-term employee relations, others will focus on cost control, and still others will focus on what effect the contract will have on stockholders.

Integrative Bargaining (p. 601)

The part of the labor-management negotiation process that seeks solutions beneficial to both sides. Integrative Bargaining has a win-win focus; it seeks solutions beneficial to both sides. So if management needs to reduce labor costs, it could reach an agreement with the union to avoid layoffs in return for the union agreeing to changes in work rules that might enhance productivity.

Difference between Distributive Bargaining and Integration Bargaining

The primary difference between these two bargaining strategies is that in distributive bargaining, you don't take the other party's needs into consideration when making a deal. You are simply concerned with losing less than the other party, and all your focus is on getting a better deal than the other side. In contrast, integrative bargaining begins with the assumption that both parties need to feel as if they gave up an equal amount or that they compromised equally to complete a deal. Distributive bargaining is often filled with conflict, because both parties maintain an intractable position in their attempt to lose less than the other side. Integrative bargaining is typically less fraught with tension, as both sides enter the negotiation with the willingness to compromise to achieve a consensus.

Labor Unions in the U.S.

Top Eight Largest Labor Unions in the US: 1. National Education Association. 2. Service Employees International Union 3. American Federation of Teachers. 4. American Federation of State, County, and Municipal Employees 5. International Brotherhood of Teamsters. 6. United Food and Commercial Workers International Union 7. International Brotherhood of Electrical Workers. 8. Communications Workers of America.

Table 14.6 Most Common Issues Raised by Unions in representation election campaigns

Union Issues & Percentage of Campaigns. * Union will prevent unfairness and will set up a grievance procedure and seniority system: 82% * Union will improve unsatisfactory wages: 79% * Union strength will give employees voice in wages, working conditions: 79% * Union, not outsider, bargains for what employees want: 73% * Union has obtained gains elsewhere: 70% * Union will improve unsatisfactory sick leave and insurance: 64% * Dues and initiation fees are reasonable: 64% * Union will improve unsatisfactory vacations and holidays: 61% * Union will improve unsatisfactory pensions: 61% * Employer promises and good treatment may not be continued without union: 61% * Employees choose union leaders: 55% * Employer will seek to persuade or frighten employees to vote against union: 55% * No strike without vote: 55% * Union will improve unsatisfactory working conditions: 52% * Employees have legal right to engage in union activity: 52%

Pay for Time Not Worked

Vacation: * In Europe 20 days minimum vacation is mandated. * U.S. has no legal minimum; 10 days is common. Sick Leave Programs: * Provide full salary replacement for a limited period of time, usually not exceeding 26 weeks. * Amount based on length of service, accumulating with service.

Why do employees join unions?

Virtually every model of the decision to join a union focuses on two questions: 1. Is there a gap between pay, benefits, and other conditions of employment that employees actually receive vs. what they believe they should receive. 2. If such a gap exists, is it sufficiently large enough to motivate employees to remedy the situation? The outcome of an election campaign hinges on how the majority of employees answer these two questions.

Legal Framework Wagner Act of 1935 (NLRA) & Section 7 of the NLRA

Wagner Act of 1935 (NLRA): enshrined collective bargaining as the preferred mechanism for settling labor-management disputes. Section 7 of the NLRA: employees have the "right to self-organization, to form, join, or assist labor organizations, to bargain collectively..."

Table 14.9 What supervisors should and should not do to stay union-free

What to do: 1. Report any direct or indirect signs of union activity to a core management group. 2. Deal with employees by carefully stating the company's response to pro-union arguments. These responses should be coordinated by the company to maintain consistency and to avoid threats or promises. 3. Take away union issues by following effective management practice all the time: ***** Deliver recognition and appreciation. ***** Solve employee problems. ***** Protect employees from harassment or humiliation. ***** Provide business-related information. ***** Be consistent in treatment of different employees. ***** Accommodate special circumstances where appropriate. ***** Ensure due process in performance management. ***** Treat all employees with dignity and respect. What NOT to do: 1. Threatening employees with harsher terms and conditions of employment or employment loss if they engage in union activity. 2. Interrogating employees about pro-union or anti-union sentiments that they or others may have or reviewing union authorization cards or pro-union petitions. 3. Promising employees that they will receive favorable terms or conditions of employment if they forgo union activity. 4. Spying on employees known to be, or suspected of being, engaged in pro-union activities.

Worker's Compensation

Workers' compensation laws cover job-related injuries and death. * System is based on no-fault liability. * Covers 90% of U.S. workers. * Employees are not covered when injuries are self-inflicted or stem from intoxication or "willful disregard of safety rules."

Which of the following benefits involve the highest of costs? Select one: a. Legally required benefits b. Medical and other insurance c. Retirement and savings plans d. Payments for time not worked e. Supplemental pay

a. Legally required benefits Legally required benefits involve the highest of costs. It is followed by medical and other insurance and payment for time not worked.Refer To: Figure 13.4 The correct answer is: Legally required benefits

Which of the following is true of union actions across industries and states? Select one: a. One reason for the smaller union presence in southern states is the existence of right-to-work laws b. Non-manufacturing industries such as finance, insurance, and real estate have a higher union representation than manufacturing industries c. The Southern United States is more heavily organized than the rest of the country in terms of unionization

a. One reason for the smaller union presence in southern states is the existence of right-to-work laws The South is less heavily organized than the rest of the country in terms of unionization. One reason for the smaller union presence in southern states is the existence of right-to-work laws in such states. The correct answer is: One reason for the smaller union presence in southern states is the existence of right-to-work laws

A(n) _____ typically reports on the reasons for the labor-management dispute and the views and arguments of both sides. Select one: a. mediator b. fact finder c. arbitrator d. shop steward e. associate union member

b. fact finder A fact finder, most commonly used in the public sector, typically reports on the reasons for the dispute, the views and arguments of both sides, and (in some cases) a recommended settlement, which the parties are free to decline. That these recommendations are made public may give rise to public pressure for a settlement. The correct answer is: fact finder

The Pregnancy Discrimination Act of 1978 requires employers to: Select one: a. offer disability plans with pregnancy-related coverage b. treat pregnancy as they would any other disability when they do offer disability plans c. provide up to eight weeks of paid leave to the mother upon the birth of a child d. provide up to six weeks of unpaid leave to the father upon the birth of a child e. bear all the medical expenses related to the birth of their employee's child

b. treat pregnancy as they would any other disability when they do offer disability plans The Pregnancy Discrimination Act of 1978 requires employers that offer disability plans to treat pregnancy as they would any other disability. Experience with the Family and Medical Leave Act suggests that a majority of those opting for this benefit fail to take the full allotment of time. This is especially the case among female executives. The correct answer is: treat pregnancy as they would any other disability when they do offer disability plans

Survey information on competitors' benefits packages and information on benefits costs are available from the _____. Select one: a. public consultants b. Pension Benefit Guaranty Corporation (PBGC) c. Bureau of Labor Statistics (BLS) d. Legal Information Institute (LII) e. unemployment offices

c. Bureau of Labor Statistics (BLS) Survey information on benefit packages is available from private consultants, the U.S. Chamber of Commerce, and the Bureau of Labor Statistics (BLS). To compete effectively in the product market, cost information is also necessary. The BLS provides information on benefit costs for specific categories as well as breakdowns by industry, occupation, union status, and organization size. The correct answer is: Bureau of Labor Statistics (BLS)

Which of the following is a characteristic of a health maintenance organization (HMO)? Select one: a. Exclusion of outpatient care b. Provision of benefits on a reimbursement basis c. Payment of physicians on a flat salary basis d. Payment of physicians on a fee-for-service basis e. Physicians paid depending on the number of patients seen

c. Payment of physicians on a flat salary basis Many HMOs pay physicians and other health care workers a flat salary instead of using the traditional fee-for-service system, under which a physician's pay may depend on the number of patients seen. Paying on a salary basis is intended to reduce incentives for physicians to schedule more patient visits or medical procedures than might be necessary. The correct answer is: Payment of physicians on a flat salary basis

A list of unfair labor practices were added to the National Labor Relations Act (NLRA) through the _____. Select one: a. Wagner Act b. Walsh-Healey Act c. Smith-Connally Act d. Taft-Hartley Act e. Norris-La Guardia Act

d. Taft-Hartley Act Originally, the National Labor Relations Act (NLRA) did not list any union unfair labor practices. These were added through the 1947 Taft-Hartley Act. The 1959 Landrum-Griffin Act further regulated unions' actions and their internal affairs (such as financial disclosure and conduct of elections). The correct answer is: Taft-Hartley Act

The National Labor Relations Act (NLRA) is also known as the _____. Select one: a. Landrum-Griffin Act b. Davis-Bacon Act c. Healey Act d. Wagner Act e. Hartley Act

d. Wagner Act The most dramatic example of labor laws' influence is the 1935 passage of the Wagner Act (also known as the National Labor Relations Act, or NLRA), which actively supported collective bargaining rather than impeding it. As a result, union membership nearly tripled. The correct answer is: Wagner Act

Unions focus on equal pay for equal work. To ensure this, they prefer any difference in pay or promotions to be based on _____. Select one: a. skill b. merit c. conduct d. seniority e. expertise

d. seniority Unions typically seek to build group solidarity and avoid the possibly arbitrary treatment of employees. Any differences among employees in pay or promotions, they say, should be based on seniority (an objective measure) rather than on performance (a subjective measure susceptible to favoritism). The correct answer is: seniority

Employee wellness programs primarily aim at: Select one: a. providing treatment for ailing employees b. managing health-care costs by helping employees in need c. providing rehabilitation services d. managing insurance-related queries from employees e. changing health-related behaviors both on and off work time

e. changing health-related behaviors both on and off work time Employee wellness programs (EWPs) focus on changing behaviors both on and off work time that could eventually lead to future health problems. EWPs are preventive; they attempt to manage health care costs (and workers' compensation costs) by decreasing employees' needs for services. The correct answer is: changing health-related behaviors both on and off work time