Human Capital SUST
What does it mean that employees have "no right to know rights?"
Their rights do not need to be posted in work place establishments
What factors contributed to employee interest in joining/supporting the Industrial Workers of the World (IWW)? Are any of the factors then comparable to the economic landscape in the U.S. today?
-Wanted to create systemic change --- all of us or nothing -Would refuse to sign contracts--somehow would reinforce capitalist hierarchy -Rise of big business: sharp contrast between big corps and individuals -Today there is still tremendous income inequality, stagnant wages for the same hours, big companies dominate -High levels of market concentration in the 1920s-- small firms and there are essentially monopolies in the market
IR school power imbalance?
IR School: there is a power imbalance (solution: equal bargining power!) -Labor issues come from unequal barganing power, employees on the losing end -Bargining power increases via unions and regulations -Does NOT view labor as a commodity -Focused on collective action, collective bargining power
What are the four schools of thought about the employment relationship? Neoliberal Be prepared to explain each.
Neoliberal: -there is no power imbalance, the employer and employee are equal -Competition is the defining characteristics of human relations -Individual self interest is what prevents power imbalances from happening
What weaknesses of the IR School are highlighted by the Keller & Barker article? Explain.
-Police unions have become too powerful in the sense that quality of policing has declined bc they can get away with a lot more -Lawyer fees were covered in the contract--left more leeway for what they are able to do -Article suggests there is too much power towards employees---not only bc of compensation Bankrupted San Antonio, has yielded a lot of power---should all industries be allowed to do that? -Have used their leverage to make ppl feel unsafe if they don't have a police force -Have used barganing for their own interest, not the common good
Distinguish between the AFL and the CIO. How did the CIO develop and why were they successful?
AFL (American Federation of Labor): craft unionism: organizing according to skill (skilled workers only) Dismissive of unskilled workers bc: unskilled workers do not have any leverage bc they are easily replacable CIO (Congress of Industrial Organizations): industrial unionism/business unionism --organize all workers in a workplace regardless of occupation or skill levels Made for the rejects of AFL - want to include everyone Isnt looking for one big union like IWW--CIO is still separated by industry IWW was still too radical in comparison to CIO Mass manufacturing began to emerge so did CIO
What is an "agency shop?" How does the concept of "right-to-work" relate to the concept of an agency shop? What might unions be concerned about right-to-work laws?
An agency shop is a form of union security agreement where the employer may hire union or non-union workers, and employees need not join the union in order to remain employed. However, the non-union worker must pay a fee to cover collective bargaining costs Right to work acts prohibit both union and agency shops Cannot force anyone to join, cannot require them to pay fees if they don't join Essentially, have to join Def 1: Right-to-Work laws prohibit labor unions and employers from entering into contracts that only employ unionized workers for the jobs in the contract. This allows employees to receive the benefits of the union contract without having to pay their share of dues and fees to the union. Right-to-work laws prohibit labor unions and employers from requiring workers to pay union dues as a condition of employment. This means that employees who work at a unionized workplace and do not support the union or do not want to be part of the union can opt out of paying dues.
2. Based on the Rosalsky article, what are some of the assumptions contained in standard economics model? What impact does learning "Econ 101" have on student behaviors and viewpoints - could it impact the behavior of future managers? Explain.
Assumption: supply = demand, perfect competition Perfect rationality Shelfish actors Govt interventions only do harm, markets are better Impact of econ 101: Has a conservative slant which has made economists shelvish and employees does not leave room for equity or voice Impacts future managers: Ignores voice and equity of future employees Prioritizes GREED
Assumptions of Efficiency is Enough
Assumptions: Employers and employees are rational actors -- employment relationship is an economic exchange Employee and employer have equal power Many employment options for both employee and employer Employee transition costs associated with job losses and gains are LOW
Based on the article by Clegg, what are some weaknesses with the Critical IR school of thought? Explain.
Clegg: (got rid of managers in tech) Ending hierarchy only masks a structure that is already in place There will always be some hierarchy, cant get away from it despite reform Hierarchy always has some benefits bc of control Cant ever eliminate it
Why do you think the coal company hired Italian immigrants and Black workers from Alabama to replace the striking minors? Why not hire others from nearby surrounding counties?
Coal companies hired these people because they knew they could pay them less since they are not protected by the government and are considered lower class citizens -Would prevent white miners from grouping together with AA+ Italians, so use racial and ethnic tension as a means of preventing collective bargaining "they are taking our jobs" -Difficult for these people to leave, so they are less likely to speak up and against the company, more risk adverse and less likely to join union -Nearby counties might see discrepancies in wages which could either make the locals demand more or vice versa
According to the textbook, which of these groups were the preferred strikebreakers from 1890-1940: African Americans, Prison Inmates, College students? Why?
College students Generally upper class --no sympathy for working class More skilled and high trainable ---young and able bodied Seen as respectable --- improve struck firm PR
Critical IR school imbalance?
Critical IR School: there's a power imbalance (solution: revolution) -Corporations shape labor relations to benefit themselves Improving work is just an illusion -Want to overthrow capitalism, the whole system because there is a flawed access to influence -Those with money control politics and access to education -Change the system!ge the system!
What is "welfare capitalism?" Which School of Thought does this most resemble?
Definition: employers seek to win worker loyalty and increase efficency by: Employers are employing benefits to employees Training supervisors betters Better hire and firing standards --not arbitrary Wages incentives Positive work experience Employee voice Resembles HR school the most Seems like a sophisticated managerial strategy to control the workplace and prevent unionization Union avoidance by killing the labor market with kindness to ensure employees were loyal to company not to govt, local community, or union
1. "Isn't Efficiency Enough?" Why does the author of the textbook pose this question?
Efficiency: quick movement of labor where market demand is high Efficiency omits equity and voice Equity + voice= if you don't like how your employer treats you then you can leave and it continues to increase equity and voice?? Not really look @ assumptions Assumptions: Employers and employees are rational actors -- employment relationship is an economic exchange Employee and employer have equal power Many employment options for both employee and employer Employee transition costs associated with job losses and gains are LOW
HR school power imbalance?
HR School: there is a power imbalance (solution: management ) -If there are issues, management should fix it If HR is done well, unions are unnecessary -Does NOT view labor as a commodity, it has unique characteristics
What is the National Labor Relations Board (NLRB)? What is the role of the NLRB?
Independent federal agency responsible for conducting representation elections and adjudicating unfair labor practices General counsel: conducts representation elections, investigates and prosecutes unfair labor practices 5 member board of appointees: hears and decides cases Typically if a union wants to be recognized, they go to NRLB and then use a secret ballot vote Violations go to regional office where admin law judge gives yes or no, then can be appealed to general counsel or 5 member board Rulings can be enforced in federal court Typically involve reinstatement of employees
Who is Joe Kenehan? What is his biggest challenge? What school of thought do you think best captures his view of the employment relationship? What does it mean "he is a Red?" Explain.
Joe is a union organizer (United Mine Workers) looking to overthrow the local coal companies unfair treatment of coal miners Challenge: Joes' biggest challenge is trying to maintain solidarity and overcoming the anti union agency who is looking to prevent unions from forming (include guy's name here) Joe's ideology aligns with the industrial relations school Joe was a wobblie= Wobblies= members of IWW (One Big Union ppl) Red= striking miners wore red bandanas around their necks
How does Desmond link the nature of capitalism in the U.S. today to slavery and plantations? Explain.
Low Road Capitalism: Businesses are structured like plantations --try to extract as much as possible, expand as quickly as possible America exploits labor in the same way it is exploited right now Best Bookkeepers were slave owners: constantly weighed cotton almost every hour Slave owners were the first managers: Focused in on productivity and took extremes to ensure that they were efficient, Bought more slaves to increase output First to use depreciation: understood when slaves reached peak productivity 20-40 Kept records on capital costs on land, farming supplies, and things for slaves Wanted to prevent rebellion: locked any farm equipment that could be used for uprising
Why did the minors walk out of the mine?
Matewan was set in the 1920s, time of post war boom in which a lot of people became wealthy Battle of Blair Mountain (1921), unionization efforts ended until 1933 -Tipping point: The minors walked out of the mine due to unfair wage cuts ($1, paid via how much coal you extract) -Mining company had title on homes, paid wages via coupons to the store The company controlled housing, goods and services, medical, basically everything -Terrible conditions, v unsafe, so people are dying very quickly because of lack of health and safety -Voice and Equity were no where to be found (also signed contracts to prevent unionization)
Suppose an employer refuses to hire someone because their race or ethnicity. Is this an unfair labor practice under the Wagner Act? What Section of the Wagner Act, 8(a)(1) - 8(a)(5), would be violated? Explain.
NO This is not an unfair labor practice under the Wagner Act. The only mention of hiring discrimination is in Section 8(a)(3) of the Wagner Act: "by discrimination in regard to hire or tenure of employment of any term or condition of employment to encourage or discourage membership in any labor organization?" Wagner Act doesn't eliminate the employer's property rights: owning building, products, intellectual property Critical ir: collectively employees would own everything and collectively make decisions
How is the IWW different from the American Federation of Labor (AFL)? Be sure to discuss the concepts of "business unionism" and "craft unionism "in your comparison. What factors limited the IWW's ability to grow? Why would the government and employers be particularly concerned about the activities of the IWW?
Note AFL was a union federation and was comprised of several member unions AFL: business unionism---immediate improvements in working conditions (wages, working hours , etc) Business unionism accepts capitalism and the need for employers to make a profit yet win labor's fair share of profits via collective bargining Pragmatic, business like approach not based on employee representation, not idealistic based on morals AFL: also mainly craft unionism --unions divided by craft or trade and focused on concerns from a single occupation Mostly represented skilled workers Received financial assistance Lobbied influence via collective bargining AFL had a staff of economists to help when in need OVERALL: transactional Exclusive jurisdiction: only support union members in craft VERY EXCLUSIONARY IWW: Revolutionary Unionism --- Radicalism killed IWW Revolutionary unionism: unskilled and skilled workers together into one union regardless of background, needed to have workers control econ and political institutions, no voting just direct worker action Took ppl of all backgrounds, regardless of race, gender, class Opposed war bc workers in the US would be fighting workers abroad, but guided by big men, ironically its unpatriotic No signed contracts because they legitimized capitalist systems and restricted ability to participate in direct action (rather than wait for a contract to expire) Govt disliked them bc they went to all lengths to be violent and overturn the government-- was cut throat China is concerned about independent union: Bottom line: AFL was working within the system --- IWW tried to destroy the system
What is the "open shop movement?" What is ironic about Figure 3.3 on page 76?
Open shop: to maintain union free workplaces, employer selects employee Wanted to control hiring Was the opposite of closed shop where craft unions were -Restricting entry to keep wages high Workers determined all aspects of work Irony: its wanting collective action within a company -- boycotting firms that hire union workers--its ok for employers to use collective action but not employees
According to Monbiot, the emphasis on neoliberalism has been problematic. Why? Are there elements of neoliberalism that are useful and important to consider?
Problematic bc human condition has to be in constant competition Emphasis on winning, rich get richer Too much freedom where market winners stay at the top Rich credit themselves "by merit" LABOR IS A COMMODITY
What role does religion play in labor-management relations? Explain.
Religion leads miners to gain respect bc it emphasizes morals Religion is a tool to control the masses -- effective tool to get people to change their opinions Religion served as a form of civil society but was not focused on labor The child preacher, Danny, was against unionization and used preaching as a form for disincentivizing the collective actions in union
Based on the articles by Scheiber & Creswell, and Griffith what are some weakness of the HR school of thought?
S&C: -Only one thing can fix management: unions -HR school places too much blame on management -HR is a natural conflict of interest Tries to protect company while also "advocating" for an employee HR employees are in the same power structure so there is no independent authority to make changes -CEO/Csuite interests will always be prioritized Griffith (Airbnb) -Assumption employer and employee value each other when the employer always has more power -Not a family--someone can always get fired (during covid Airbnb fired a ton of its "family") -Common interests...not really.
3. Based on the Pearlstein article: Why is the Business Roundtable Statement of Purpose Important? Do you think COVID19 has or could impact business acting on the Statement of Purpose?
Shows a shift towards taking equity and voice into account Due to the "great resignation" effect of covid, managers realize more than ever that treating employees fairly is essential to maintaining steady levels of employment
Based on the articles by Thaler and Ioannou, what are some weaknesses with the Neoliberal school of thought? Explain.
Thaler Markets are unfair bc those who pay the highest price benefit the most If you have money, you have the most access to resources Iaonnou Scooter rechargers used to make $20 a scooter initially, now only make $4 a scooter Its good until it isn't good, market must readjust itself Market will be flooded, price drops Wild swings of markets=no longer good opp Demand exceeds supply then demand catches up
How does "Baseball Players Cross the Picket Line" illustrate a major criticism that the IWW has with mainstream unions? Is this problem illustrated in the film Matewan?
The baseball players are only looking after themselves-- not like they are looking out for everyone Against IWW: An injury to one is an injury to all These baseball players operate within the system and will stay at the hotel they are told to stay at regardless of moral disagreements In addition, these players have signed contracts which bind them to a company and not to the union itself---they are still property of the company Also this isnt one big union--shows how trade unionism creates factions that prevent collectivism and this incident shows how they have forgotten their roots as a union to support other unions
Distinguish between the unitarist, pluralist, and class conflict views of the conflict. Which School of Thought matches with each of these?
Unitarist: Human Resource School Employees and employers have a unite of interests and management works to align these interests for the benefit of all Conflict is not inherent -- manifestation of poor management Pluralist: Industrial Relations School Employees and employers have some conflicts of interests and some shared interests (mixed motive) All interests are legitimate, so employee interests cannot always be prioritized :( Class Conflict: Critical Industrial Relations School Inherent and antagonistic conflicts of interests between employer and employee More of a social conflict than on an employee vs employer level
Violence is one way to settle this dispute between the minors and the coal company. Why might the coal company desire some violence and the destruction of property? Assume you were a policy maker, what would you suggest is needed to prevent these disputes escalating to work stoppages and violence?
Violence makes the company look better bc it reconfirms that the union is violent and that the company is a harbor for peace Violence can serve as a way to leverage power so it the company can use its power to shut down any strikes-- seen as a way to reclaim power and can even crush the movement all together
Why was the Taft-Hartley Act passed? Table 4.6 (page 122) identifies the central changes to the Wagner Act arising from Taft-Hartley. Identify three of these changes that you feel will be most important in terms of dramatically altering the power relationship between employers and employees in the U.S. Explain.
Wagner act had swung the pendulum too far towards labor, too much bargining power in that direction Labor relations had been left to common-law which was centered in free market capitalism Pendulum favored employers: prevent strikes, issued injunctions, union leaders jailed, union supporters blacklisted Summary of Law: created framework for unfair practices for unions Restriction on Union Actions Enhanced rights on individuals and employers New dispute resolution procedures No secondary boycott--unions cannot boycott a company that does not directly employ employees is being boycotted is illegal Ex: boycott a chip maker -- cannot tell ppl to boycott grocery store where its sold and told ppl not to shop there Union is boycotting chip maker, but it affects grocery store so not allowed bc not employed by grocer Instead must boycott the product and told consumers not to buy it at the store
What point is the Owensboro Area Building & Construction Trades Council AFL-CIO trying to make with this set of letters? Is it relevant to the issue of right-to-work? Explain.
Was it used as test to see if Owensboro Chamber of Commerce was actually willing to uphold union values and would charge all members the fee Owensboro Area Building and Construction Trades Council was trying to not pay the dues, which demonstrates how the in right to work states, union contracts most cover all workers including those not in the union and don't pay dues In these states, workers do not have to pay union dues as a condition of employment--- in this case the OABCTC was trying to see if it could work to not have to pay dues to remain in the council
Explain why Figure 2.2 (page 32) in the textbook depicts the HR School of Thought. How would you change the label on the wheel barrow to make this a Neoliberal School of Thought? How would you change the label to make it an Industrial Relations School drawing?
Wheelbarrow: competition, IR: equal bargining power
Explain the concept of "exclusive representation."
With a majority support, unions are the only representative of said group of workers hence another union or a company union cannot claim to represent some of the employees within this group No longer could companies make unions to weaken independent unions Any % could be considered majority but simple majority is accepted This number is determined via secret ballot vote Employer must bargin with union only if it is the majority
Was there much opposition to the Wagner Act? Explain and provide examples.
YES Repub/Laissez faire employers hated it bc it got into affairs of private companies and "interfered with economic efficency + individual & corporate liberty" Wagner: thought it increased individual freedom bc gave employees the room to join together and discuss issues --just like employers had Also increased workers purchasing power by preventing wage undercuts The act sought to prevent union recognition strikes but failed initially STRIKES: General Motors sit down strike and Memorial Day Massacre Federal judges passed injunctions against it American Liberty League: conservative lawyers with money who spread lies about the act -This Act went to the supreme court and was upheld 5-4: those who thought it should've stayed to the state legislature were slammed down bc supreme court claimed that a patchy framework of unionization would've restricted interstate trade (DECLARED CONSTIUTIONAL IN 1937 - 2 yr gap) Union density was high-bc of craft unionism so it was hard to replace these workers
In what ways did the following inhibit workers who tried to engage in collective action, organize, strike, and engage in boycotts?
a) Conspiracy Doctrine: Viewed as people who are conspiring to hurt the community just because they joined together and refused to work for low wages and in bad conditions. In addition, shoe prices and unemployment would increase and profits would fall b) Injunctions: court ordered restrains on action to prevent harm or damage to someone else, used to prevent strikes or prevent unionizing b) Yellow Dog Contract: promise by a worker not to join a union or support a union: refusal to adhere will result in employment termination-- seen as valid bc they were voluntary and employees were not economically coerced into doing it due to lack of other jobs c) Sherman Antitrust Act: Law written to prevent monopolies-- United States antitrust law which prescribes the rule of free competition among those engaged in commerce. The Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. The Sherman Act broadly prohibits 1) anticompetitive agreements and 2) unilateral conduct that monopolizes or attempts to monopolize the relevant market.
