Labor Relations Test 1

• Industrial Workers of the World (IWW) guiding philosophy- overthrow the capatilistic system and workers had to take over the business. What happened to them

- more radial view -revolutionay unionism -critical industrial -seeks to overthrow capitalism

• Yellow Dog Contract- attempt by mgnt that they would not join union and is now illegal

-A promise by a worker not to join or support a union -Refusal to agree to such conditions meant either termination or not being hired -A union's attempt to organize employees could result in an injunction -If a union ignores such an injunction, there can be penalties for contempt of court

• Options for governing the workplace (who makes decisions, labor unions, mgnt)

-Free markets -Managers (HRM) -Independent employee representation -Government regulation -Worker control -What determines which system of workplace governance is best? -Preferred system of workplace governance is rooted in how one thinks the employment relationship works That is, one's desired school of thought

• Describe the "labor problem" in the early 1900's (how have they changed)

-Undesirable outcomes of inequitable or oppressive and exploitative, employment relationship -Long hours, low wages, unsafe conditions, and job insecurity

• Exclusive representation

-Wagner Act explicitly establishes exclusive representation when a union has the support of a majority of a group of employees -Without exclusivity, companies established multiple company unions -Allows secret ballot elections to determine whether a majority of workers support a specific union

• Haymarket Square riot-Don't need to know dates. Just what was big issue for strikes, and the outcome for historical events*

-dive for 8 hour work day -est. by AFL -rally to protest poilce repression of may day -ended w/ police firing and protester tossed a bomb

• American Federation of Labor (AFL)

-endorsed a system of craft unionism -It provided financial assistance to striking unions -Establishing and maintaining job standards through work rules -Control over decision making was seen as necessary to promote human dignity

Reasons for the AFL/CIO merger- why did they compete and why did they merge?

-path toward embracing AFL to improve wages, collective bardaining, and to improve work place conditions

• PATCO strike-*

...professional air traffic controller

• Wagner Act (National Labor Relations Act)- gave unions a number of rights, the 10 years later Taft-Hartly was made for mgnt rights

1. Employees can form unions 2. Employees can bargain collectively through a person they want. 3. Employees can engage in activities, can act together to aid and protect each other

• "Labor problem" solutions under each Labor Relations school (Mainstream economics)

1. Get gov out of way 2. The best protection an employee has against his or her current employer are other employers 3. As long as there is (perfect) competition, employment outcomes are not seen as a problem

• Workplace characteristics in the 1700's- mostly farms and small business, how has it changed

1. Late 1700's famers, single person business, didn't have strikes. Cant stike against yourself 2. 1800's ppl started working together, employ other ppl might take advantage 3. Local unions started to form 4. 1850's national unions- group of local unions 5. Later 1800's first big national union

• Knights of Labor- unions. Died bc of haymarket- what was main belief, why did they exist and why did they go away if they did

1. Uplift unionism- goes along with . Knights of Labor 2.Knights of labor- kept secrect, so the employer cant break it 3. Deserve better life of union workers. Wanted less hours so they could better themselves 4.Producer copperatives. 5. Central conflict 6. 1. conflict b/t farmers, shopkeepers and those who controlled the money. Producers vs. money controllers 7. 2, wanted to unite all the producers. Problem with those who control the money 8. 3. opposed the use 0f strikes and boycotts.

• Unfair labor practice

1. cant stop employees from forming union 2. Employers could set up company union 3. Employers couldn't not hire ppl bc they were already in a union 4. Couldn't fire anyone if they were in a union or had interest. 5. If unions won election then employers could not refuse to talk to the union

• Wagner Act (National Labor Relations Act)- what is it

1935 Wagener act (nation labor relations act) 1. Encouraged unionization 2. Created legal protections for members 3. Outlawed company unions 4. All three above still exist 5.Giant increase in ppl joining unions

• Sections 8(a), 8(b), 8(c), and 8(d) of Taft-Hartley Act- one or two sentence on each

8(a)- Modifies the third employer unfair labor practice to outlaw the closed shop 8(b)- 1. Cant force people to join union, cant threaten 2. Cant say, that you can only hire union members 3. Union cant refuse to bargain mgnt 4. Outlawed 2nd boycotts 5. Outlawed ppl from hirieng people that they knew weren't going to wokr 8(c)-Grants employers the right to express views and opinions except for threats and promises (employer free speech) 8(d)-neither bargaining party cant disagree to barging with one another, about hoursm wages and other terms. DON'T HAVE TO REACH AGREEMENT

• Industrial unions- 1920's whole industries (all auto workers) everyone

Around this time during wagner act- could unionize all industrys (Industrial Unionism****)

• Human Resource Management school

Believes that the labor problem stems from poor management Poor selection, motivation, training, supervision -Unions are unnecessary "outside, third parties" Unnecessary: effective management policies are best. Unions add unproductive conflict.

"Labor problem" solutions under each Labor Relations school (hr)

Better management

• How Labor Relations aims to create a balance between efficiency, equity, and voice

But efficiency, equity, and voice can clash -Equitable treatment might reduce flexibility and efficiency -Employee voice might make decision making more cumbersome and less efficient -Unions centralize power to better achieve equity, but become less responsive to individuals

• Craft unions- all electircians, carpenters, shoe makers

CRAFT- first union. Someone who does a craft. Blacksmith, carpenter, stone mason. Began in mid 1800's

Three possible explanations for the changes in private sector union density (2)

Demand for union services has declined -Unions not doing a good job of responding to the needs of a changing workforce -Employers have improved their responsiveness to employees' needs -Increased protective legislation has provided a substitute for unions

• Mainstream economics school

Econ driven view of workplace 1. Self interested agent- ppl work in their best OWN interest 2. EEV- best achieved from free market competition 3. Perfect com- everyone has same info results in the best competition 4. Employees are paid their economic value. If they feel they need to be paid more they will leave and go find pay. If they stay than they thinkn they deserve that pay Dont like unions monopolies that benefit a few at the expense of everyone else.

Three possible explanations for the changes in private sector union density

Employer resistance or opposition -American managers are hostile toward unions -Strong tradition of using union avoidance tactics -Failure to invest in nonunion operations -Actively fighting organization drives -Increased anti-union legislation in U.S. public sector

• Critical industrial relations school

Employers' dominant power in the workplace, and reinforced by significant influence over other societal institutions (e.g., legal system and law enforcement) -Emphasizes that capitalist institutions do not simply exist but are created by society Important but inadequate: An important mechanism for the struggle against capitalists and for protecting workers. With systemic imbalances, need greater social & political changes for true reform.

• Equity

Fair treatment for employees

• Voice

Give employees meaningful input into workplace decisions

• Great uprising of 1877-*

Great uprising of 1877- first railroad strike 1. Employer say I have property rights no one can tell me what to do. You can take my job or not along with the terms of work 2.We see violence at this time. 3.Employers bring in armed officers to but down the uprising 4. "social earthquake" employees started to push back 5.Employees were even violent to the new hires who were there to replace them **The Great Uprising of 1877 laid the foundation for future labor-management conflict rather than cooperation

Labor union

Group of workers who join together to influence the nature of their employment

• Principles of the Wagner Act (National Labor Relations Act)- in particular, what

Industrail relations -Wagner act: 3rd attempt and stuck, -IR-Mgnt has too much power and needs to balance power bt mgnt and labor -Wagner 1. labor is more than a commodity, is not raw material, employees have value Labor is more than a commodity Labor and management are not economic or legal equals There is a conflict of interest between workers and employers that cannot be resolved solely by management Employee voice is important

• Committee on Industrial Organizations (CIO)

Industrial unionism seeks to organize all the workers in a workplace or industry (as opposed to craft unionism) Aggressive organizing in heavy industry by the Committee on Industrial Organization (CIO) The CIO - a new federation to rival the AFL

• Union impact on efficiency (goal of labor relations is to balance efficiency and equity)

Job- less satisfied compared to nonunion workers bc : expectations, school of thought, lower level jobs- nature of the work Turnover- less turnover in unions bc: job security Productivity- mixed. Shock effect- managers have to manage ppl more professional and reasonably Profit- reduce profit bc they pay more and provide more benefits.

"Labor problem" solutions under each Labor Relations school (Industrial)

Labor unions and other government policies (e.g., minimum wage laws) to help increase worker power to better balance employer power

• Agency shop agreement

Like a union shop agreement, but rather than joining the union, workers must pay dues

• Trends in private sector and public sector union density

Private sector union density is less than 10 percent Private is decreasing while public is increasing

• Efficiency

Productive use of scarce resources

• Closed shop agreement- all related to right to work

Provision negotiated into a collective bargaining agreement that requires the employer to hire only union members

• Collective bargaining

Representatives of the employer and employees negotiate employment terms and conditions:

"Labor problem" solutions under each Labor Relations school (critical industrial relations)

Restructuring the nature of capitalism For some: replacing capitalism with socialism For others: significant changes in power structures and influence

• Three possible explanations for the changes in private sector union density(1)

Structural shifts -Decline in traditionally unionized industries Regional and demographic shifts -Increased numbers of women in the workforce -Increased education and skill levels

• Taft-Hartley Act-maybe employees have too much power uner wagner act

Taft-Hartley wwII came and stikes were forbidden for the duraiation of the war When war ended, the unions strikes peeked Great strike wave Now... maybe we went to far with wagner act** The passed taft-Hartley to correct wagner act** - added to amended to wagner act, 1st time there were restrictions on unions - better more clear that employers had

• Industrial relations school

The labor problem stems from unequal bargaining power between corporations and individual workers -So not opposed to markets or corporations -But sees labor markets as destructively competitive Important: necessary to counter corporate bargaining power and to balance efficiency, equity, and voice.

• Union density

The percentage of workers who are union members

• Union contract

The provisions that are written down and bound into a legally enforceable collective bargaining agreement

• Exclusive jurisdiction

There would be only one union per craft

• Management's unilateral rights versus bilateral negotiations between management and a union (look at collective barhaining)

U.S. policy encourages collective bargaining -Everyone has the right to join unions to protect their interests -But should society encourage or discourage the formation of labor unions? -Management's authority to unilaterally establish conditions of employment is replaced by bilateral negotiations -This way, workers have a collective voice

• Homestead strike-*

US steel with the 2 brothers, brought in milita that secured the mill Year after the strike, wages fro skilled workers dropped while 12 hour work days continued

• Union impact on equity

Wage- union higher pay Wage distribution- difference bt lowest paid and highest paid- more equal in unions Benefits- unions more benefits Just cause discipline and dishcharge- harder to fire Public policy- unions have positive impacts on benefits Seniority- ppl who have been there loner will ger treated better

• Union shop agreement

Workers must join the union within a certain amount of time after being hired

• Open shop

employer can hire anyone- mgnt wanted

• Closed shop

employer had agreement employer could only hire union member ***- if they had an open job they could only hire someone from this craft union

• Local union- international brotherhood of electr. Of savannah

international brotherhood of electr. Of savannah

• National union- ^^ of the united states

international brotherhood of the united states

• Pullman strike-*

made railroad cars. 2nd biggest labor strike -during great depression cut wages by 28% and laid off one quarter -mgnt and stock holders ooay didnt change - joined railway union that made railroad cars -included multiple occupations -workers began to boycott working -violance happened -strike died out when federal troops came involoved

• Purpose of secret ballot elections- to determine if a union will come into play

to determine if a union will come into play

• Wagner Act's (National Labor Relations Act) principle beliefs about

workplace conflict- mgnt had too much power, so had to balance and give some power to labor