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