Labor Relations Final Exam

Brandy Weingrad

-Law firm that represents teachers and sanitation workers -She Became president of UFT -2002: the city negotiated with district council 37, brandy didn't like the settlement they came to -2002: Mayor Bloomberg is elected -Brandy struck a Multi lateral bargain: -Brandy wanted an increase in pay and Bloomberg wanted more control of the school board (he wanted to change some things in the school system) . Governor Pataki was running for re-election and wanted to become president What happened? - Brandy leads UFT to ENDORSE PATAKI who is republican and unions usually endorse democratic candidates, she LOBBIES TO GET BLOOMBERG MORE SEATS on the school board. --> Bloomberg designates a "special" pay increase for UFT (300 million)

Official trade union: ACFTU

-substantial portion of the Chinese workforce belongs to this unions, very integrated with the Chinese communist part, used as a communication and monitoring devise for the communist party to the workers

Recent attacks on public sector unions

1. A return of the sovereignty argument and new claims that public employees are overpaid (especially in terms of pensions) 2. Some of the attacks have been reversed e.g. Ohio vote rebuffing Governor Kasich and legislative cuts

International Labor Organization (ILO)

1. Agency of UN - tripartite structure [labor, government, management] 2. Conventions - e.g. child labor, freedom of association 3. Non-binding i.e. no enforcement powers 4. U.S. has not signed all ILO conventions 5. Other activities: assistance to governments, unions, employers, NGO's to improve training and labor relations systems, laws, and administrative agencies

Why is China and its labor relations so important?

1. China is a major global economic and military power 2. It is a key part of many MNCs' supply chains 3. Its economy has undergone major restructuring and has shifted toward a market form 4. China has both growing markets and persistent dominance by the Communist Party - is further market spread and economic growth possible with a strong continuing role for the Party? 5. Its labor relations system has been straining to adapt to expanding market forces and restive workers

Election unit determination by NLRB in US

1. Commodity of interests 2. History of association 3. Preference of parties -- e.g. craft severance issue

2010 to present

1. Concern over public sector pension funding and pay levels 2. Wisconsin and other state rollbacks in public employee bargaining rights and contract terms --> return of the taxpyaer revolt, an effort to bring down the sovereignty doctrine 3. Return of government sovereignty claim 4. Education regarding charter schools and teacher quality and evaluation

Two Competing Trends

1. Control passes from parent MNC to the global supplier --> LR and HR decisions are exported to the supplier (decentralization of decision making) 2. Production is not passed to the supplier, OEM still takes care of LR and HR

Common Interests v. egos

1. Difficulty across companies in bargaining association -- diversity of interests v. gains from coordination or standardization 2. Strong egos on both union and management sides -- negotiators need to continuously prove their worth

Codetermnination

1. Employee representatives elected to "supervisory board" (one less than management); specified in federal law, white-collar staff votes along with blue collar. 2. Works councils: employee representation on committee concerned with personnel matters; parallel forum to union representation, e.g., "social plans" for layoffs (these specify who gets laid off and the compensation to be received by laid off workers). - not based on seniority

Mayor Lindsay era (1966-1973)

1. Frequent strikes starting with transit in Jan. 1966 --> led by Mike Quill. Quill was arrested and put in prison, there he had a severe heart attack. Right before he have a press conference - Lindsay caved and the transit workers got a favorable contract 2. OLR created within City Government 3. OCB created as "neutral" administrative agency

Common structural economic features in transition economies

1. Government regulation of labor standards/conditions, including minimum wages, are very critical in emerging economies - enforceability??? 2. Large size of "informal" (unregulated) sector - some purposeful low wage ("free trade" zones) - Is the latter good policy?? 3. Importance of migration and migrant repatriated earnings e.g. Mexico to US, Philippines to Hong Kong and others 4. Significant roles played by nongovernmental organizations (NGO's) and International agencies (e.g. World Bank, IMF)

Union Structure

1. Industry or sectoral-wide bargaining common, e.g. I G Metal (agreements extended to nonunion firms). 2. Links to works councils.

The old labor relations system

1. LR and unions are state/party dominated 2. Historical reliance on the "iron rice bowl" 3. Highly regulated internal migration --> Government programs were provided through the firm.

A.Multilateral v. bilateral bargaining and the role of political power as an influence on relative and total bargaining power

1. Management: The diversity of management interests and actors in the public sector (e.g. school bargaining: management includes school board, superintendent, parents, community groups (PTA), state legislature, governor, Congress, state and federal departments of education, mayor, city council) 2. Multilateralism opens the door to politics and tactics such as end runs. 3. Political Influence: Due to multilateral bargaining and other factors political influence is a critical determinant of bargaining power, in addition to the traditional role played by relative power (strike leverage and the elasticity of demand for labor) e.g. support candidates that are sympathetic to them, give candidates money, vote 4. Total power: Total power also still matters in the pS. It entails the amount of total revenue (taxes and other revenue sources) that are available for the parties to distribute.

A. Life time employment

1. Not contractual, only a promise firms work hard to support; in extreme times firms do lay off, e.g., steel and shipbuilding. 2. Retirement traditionally at 55, now at age 60. 3. Covers roughly one-third of the work force; suppliers and temporary workers serve as the buffers to this system.

Nenko Pay system

1. Pay tied to seniority (age); so workers performing similar jobs can receive very different rates of pay. 2. Worker pay also varies as a function of performance appraisals. Note: Blue-collar workers receive regular appraisals, almost unheard of in the unionized sector in the U.S. 3. Other aspects of pay determination -- large companies also offer a bonus; often one-third of total earnings (this is distinct from Nenko). Pay increases in union contracts follow the spring wage offensive.

Process for taking advantage of pattern bargaining

1. Pick out weak unit 2. Bargain hard 3. trade job security for wage freezes 4. Find a mechanism to use interest arbitration to spread that modest settlement to other unions

Workforce Development (labor supply) Issues in Transition Countries

1. Problems of child labor and human trafficking 2. Poor educational systems or highly bifurcated educational attainment 3. Emergence in recent years of apparent oversupply of college graduates 4. Rural to urban migration - problems of social integration and discrimination e.g. China

Participation

1. Quality circles at the shop floor level. Note: supervisors are in the union and often are union stewards. 2. Participation through labor-management committees. 3. Few written grievances -- settled through worker-supervisor discussions, or passed to labor-management committee if the issue affects many workers.

1960's to mid-1970s

1. Rapid Growth in public sector unionism and bargaining 2. Led by teachers (AFT in NYC) -Demanded that the mayor bargain with them (Wagner) agreed to bargain, negotiated agreement. Spread to city employees across the country because courts started adjusting, also civil rights movement. 3. Some links to civil rights movement for sanitation workers (Martin Luther King was assassinated while on strike with sanitation workers, sanitation workers were mostly black, direct connection), Civil rights movement legitimated public employees challenging government

Broad Job Definitions

1. Relatively few classifications. 2. Job rotation and mobility; high corporate investments in training.

Pre-1960's

1. Sovereignty doctrine applied by many courts (key reason unionization was so weak (aggression from courts) --> argued that unions interfered with sovereignty of government 2. Sporadic unionism (e.g. Boston police strike in 1919 broken by then Governor Calvin Coolidge) 3. Whys is unionism so late in coming? In part because cicil service was the alternative (if you worked for gov't there were complaint procedures, merit promotions etc. Civil service in part substituted unionization), courts also restricted unionism

Mid 1970's to early 1980's

1. Taxpayers Revolt -Starts in NYC. The city was on the brink of default, Ford refused federal loan guarantees 2. Plateauing of public sector union growth 3. Concession bargaining in NYC, SF and other cities --> all of this institutionalized labor relations

Emerging changes in labor relations

1. The state sector is shrinking with mass layoffs and uneven adoption of more flexible labor practices within the remaining state enterprises 2. MNC sector is growing and has higher wages and more flexible/modern work and managerial practices 3. Labor mobility restrictions are being relaxed but not eliminated 4. Much conflict at the plant level e.g. auto sector, Foxconn, with much variation across regions 5. Labor law reforms five years ago- focus on individual rights; unevenly enforced 6. Some real CB in some regions with a few firms - feared by the national government as a potential avenue for democratization/instability 7. Cases of fake collective bargaining e.g. Walmart 8. Recent crackdown on labor activists and NGO's 9. Emerging trade war with U.S.?

The potency of the strike - strikes are illegal in the public sector

1. There is much variation across public services (police v. clerical). 2. There appears also to be much variation over time in the public's (and government officials' willingness to withstand a strike and across time) 3. In some states (22) for certain public service binding interest arbitration is the impasse resolution mechanism (police, firefighters often covered) --> strike threat is strong, even though striking is illegal: there will still be strikes when they're illegal, and when they strike it is BAD e.g. the blue flu --> everyone can call in sick, or they can give no tickets: there are other ways to strike

Bargaining power

1. Union often benefits from centralization -- vehicle to impose standardization and avoid lowest common denominator 2. But not always -- unions sometimes can whipsaw plants or companies, e.g. Big three auto and UAW 3. Union and employer interests not always opposed -- both try to standardize and create cartel, e.g. Coal (UMW and BCOA), clothing and garment industry (unions stabilize industry of small competitors)

The role of unions in transition economies

1. Unions are generally weak but not irrelevant 2. LR tends to be more political and less about contracts and company or plant level CB (union ties to political parties or state domination) 3. Political power 4. More common in public sector 5. Unions often strong at MNC's 6. Unions can be state dominated 7. Trend toward market liberalism

Non Governmental Organizations

1. Variation in focus - workers rights, immigrant rights, women's rights, etc. 2. Sweatshop movement (apparel) - Nike, Gap and others; FLA and WRC role 3. Fair trade movement e.g. coffee 4. Consumer goods focus - apparel, toys; lack of leverage with intermediate goods

A. Post-World War II elaboration of Japanese system -- the Japanese system did not take full form until then.

1. What led to the Japanese LR system - culture or historical factors? --A critical event was purging of the militants and the unsuccessful strikes in the early 1950s; note the public sector has different and often more militant unionism.

Union structure - enterprise unionism in private sector: e.g. toyota union, SONY union

1. White-collar staff included. 2. Militants purged in the 1950s.

B. Why Patterns?

1. Workers' wants are relativistic and not absolute -- workers are concerned with equity, orbits of coercive comparison. 2. Leaders use patterns to legitimate their bargains -- company and union leaders must justify their settlements to suspicious members and counteract rivals -- pattern following has legitimacy

Convergence debates

A. 1950s convergence theory (to US style system) B. 1970s view that country systems were persistently distinctive - focus on Japan, Germany, and Sweden C. New convergence theories - movement to US style market-oriented systems ? D. Is China exceptional - markets without democracy, is this sustainable??

The Various ways corporations benefit from Multi-national expansion

A. Access to cheaper (and possibly well skilled) labor and other resources and in some cases more realized government regulation B. Increased Bargaining leverage with labor due to substitution alternatives (alternative sources of production when moving abroad, greater relative bargaining power, therefore increased strike leverage) C. Other economic benefits: access to markets, tax advantages, currency diversification etc.

Methods to Improve International Labor Rights

A. Consumer Pressure Campaigns B. International or regional governmental or free trade agreement regulation C. National governmental regulation of labor conditions and standards D. International or cross national unionism E. Local unions within less developed countries F. Corporate Codes of Conduct G. Multi-stakeholder initiatives

Why were HR and LR originally decentralized within MNC's

A. Country legal, cultural, and historical differences e.g. France in August B. Production was decentralized given limited trade C. Contrast to other corporate functions such as finance and marketing

Spring 1975 Default Crisis (president Ford to City "Drop Dead")

A. Default on short term bonds (used to finance operating expenditures) with subsequent refinancing and rescheduling with state aid --> NYC is blocked from access to credit market - but they need the market to both LEGITIMATELY pay for construction projects and ILLEGITIMATELY pay salaries (they weren't supposed to be using the credit market to pay salaries) B. Creation by state of emergency financial control board C. substantial union concessions including layoffs and pay freezes and benefit reductions --> NY state loans money under the conditions of concessions such as the ones mentioned above. -Taxpayers revolt

Performance Issues

A. Does codetermination lead to effective employee and union participation? B. Does any LR system perform better than other LR systems? What criteria should we use to evaluate LR systems e.g. GNP growth, wage growth, degree of inequality, amount of due process?

German LR System Kew Features

A. Dual System - unions (CB) and co-determination B. Codetermination C. Union structure D. Government labor courts -- individual "owns" the grievance. E. Immigrants (guest workers) used as cyclical buffers.

Why do we focus on LR in Japan and Germany

A. Each country has been economically vibrant: Japan had rapid growth in the 1970s and 1980s; Germany has had vibrant economic growth and is a very strong exporter (Note, successful German re-unification in the 1990s). B. The U.S. LR system is becoming somewhat like the Japanese and German systems. C. The Japanese and German LR systems have some distinctive features very unlike the U.S. LR system.

Determinants of Bargaining Structure

A. Election Unit Determination by NLRB in US B. Bargaining power C. Common interests v. Egos

Types of Bargaining Structures

A. Employee interests covered 1. Craft -- single trade. 2. Industrial -- workers of all skill grads in a unit B. Employer interests covered 1. Decentralized -- single plant. 2. Intermediate case -- multiplant but single company 3. Centralized -- multiplant, multicompany, industry, multi industry

MNC Internal LR/HR: Competing pressures

A. In most countries there is not the sharp separation in how LR and HR matters are handled (they don't have our systems legal distinctions and traditions) B. For production activities that are outsources as part of a global supply chain, an MNC is inclined to also outsource the LR (and HR) associated with those activities C. for production activities that continue to be under the direct control of the MNC, the traditional practice was to have LR(and HR) decisions made locally, often at the plant level or in some cases, country level by local managers - LR/HR has traditionally been the most decentralized of corporate functions D. There are however some noteworthy recent examples of more regionalization and globalization within MNCs LR/HR function for production that continues under the direct control of the MNC

Pattern bargaining

A. Informal Centralization B. Why patterns? C. Pattern bargaining within plant work force as well as across plants and companies

Unions are generally disadvantaged by the growth of multinationals and cross-border capital mobility

A. Labor cannot move as easily across borders B. Multinational unionism (or even union coordination) historically has been weak C. Capital mobility, in effect, creates a new competitive menace for labor D. Unions in high-wage countries are particularly threatened by the movement of capital to low-wage countries E. Exceptions - union (workers) that produce goods for exports e.g. UE workers who build subway cars (in Elmira) and Boeing workers producing planes for export

Why are cross-national unions (or coordination by unions) traditionally so weak?

A. Lack of solidarity B. The lack of common interests C. Poor communication and different structures (sectoral vs. enterprise vs. plant-level unionism)

Japanese system key features

A. Life time employment B. Nenko pay system C. Broad Job definitions D. Union structure: enterprise unions system in private sector E. Participation

Recent CB Issues

A. MTZ-TWU . strike '05, MTA backs down on two tier pension demand and a mediated tentative settlement is reached B. Mediated 8 year long agreements with all units (including teachers, firefighters) in 2014 and 16 and eventually also the PBA police (in 2017) C. Recent successful joint efforts to reduce healthcare costs without slashing benefits Key role of experts, past joint task group, and mediation D. Fall 2018 settlement wit hUFT, which follows DC37 pattern and adds new joint iniatives

Collective Bargaining in the 1980s and 1990s

A. Pattern Bargaining linking teachers, DC 37, police, fire and others in the uniform forces coalition with occasional exceptions e.g. teachers get extra pat increases in 2002 deal (tied to state aid, UFT support for Pataki, and Mayor Bloomberg control of school board) B. Interest arbitration reinforces pattern bargaining (which is also often favored by a number of the inions on wither solidarity or power grounds). Arbitrators see their role as maintaining stability and avoiding parity war style upward payratcheting

Analytic issues

A. Post-World War II elaboration of Japanese system -- the Japanese system did not take full form until then. B. What has happened to lifetime employment and labor-management cooperation during the recent prolonged downturn?

Eras in Public Sector CB

A. Pre 1960's B. 1960's to mid 1970's C. Mid 1970s to early 1980's D. 1990s E. 2010 to present

History

A. Prioir to 1960: some unionization among city employees e.g. firefighters, police, transit, civil service 'forum', various teacher associations/organizations B. UFT formed in 1960; short strike in 1961 C. Mayor Wagner (son of senator wagner who co-authored NLRA), accepts on the early mid 1960's CB(but exercise tight managerial authority and maintains good political and personal links to labor leaders during his administration) - first CB signed between city and teachers, other teachers in big cities followed suit, then spread to other public employees D. Mayor Lindsay era (1966-1973)

Cross national unions responses

A. Promote favorable regional regulations (e.g. EU social dimension and social directives) B. Cross-national collective bargaining 1. Current examples - Maritime, airlines 2. Future formalization of European Works councils?? C. Cross-national pressure campaigns 1. Selective pressure campaigns—Renault in Europe 2. NAFTA/NAALC 3. Strategic alliances e.g. Steelworkers, food workers 4. Bottom-up network alliances e.g. Brazil

MNC Steps at Cross National LR/HR Where production is kept in-hosue

A. Regional LR/HR staffs are being created in some MNC;s B. More cross-country coordination of corporate policies C. More frequent cross-country comparisons of LR/HR performance, and this i affecting investments and plant closings (labors fear) D. Local manager concerns with the above E. Colgate- Palmolive example F. Balancing the cultures of central coordination and control with the advantage of local flexibility and responsibleness to culture law history politics etc.

Factors promoting more centrally coordinated and regional structures

A. Regional trade parts - EU, NAFTA, Mercousur, ASEAN --> trade has LIBERALIZES trade barriers have been substantially reduced so companies are using integrated global supply chains B. Expansion of global trade and MNC's C.Production consolidation - regional centers of excellence

Why is public sector CB important

A. Sizable component of our economy B. Heavily organized (36%) C. Largest and wealthiest unions are public sector (AFSCME, NEA) D. Important exception to post WW II decline (mid-1960s) E. Public sector labor is different [Public sector is not covered by the NLRA; state law applies; the laws vary]

Key Labor Groups in Municipal Workforce

A. Teachers - UFT - initially led by Albert Shanker who becomes President of AFT - 80,000 teachers plus 30,000 other members B. Police - PBA and senior officer unions, sometimes part of "uniform forces coalition," horizontal and vertical parity with firefighters C. Firefighters - UFA - Linked to police and sometimes in uniform forces coalition - 10,000 members D. Miscellaneous employees - District Council 37 of AFSCME. Key early strong leaders were Jerry Wurf (later president of AFSCME) and Victor Gotbaum, Currently fragile leadership - 121,000 members e.g. janitors E. Sanitation workers - often part of uniform forces coalition, parity link to 90% of police/fire base pay F. Transit workers - TWU, not fully part of city "pattern bargaining" - 60,000 transit workers

Unions and workers are under greater pressure from international competition due to:

A. The expansion of world trade and interdependence B. The extension of multinational corporations C. The integration of markets (e.g., EU, NAFTA, Mercusor, ASEAN pacts) and relaxation of barriers of trade

Arguments supporting public sector unions and CB

A. Union power seems to vary substantially across employee types and over time B. Is it fair to give management sole authority -- why should employee rights be different because of the sector in which employees work? C. Role of strike bans (e.g. NYS Taylor Law) and interest arbitration as a strike alternative

The value of comparative labor relations

A. We learn more about our own LR system by contrasting it with other systems. B. We can test theories or propositions with comparative analysis, e.g., causes of strikes (Kerr-Siegel). C. The other countries are important in their own right. D. Key LR system differences U.S. vs. most other countries

Why is it important?

A. helps us understand how CB works; who is represented by a contract; who is at the bargaining table B. Bargaining Structure is affected by bargaining power and critically influences the power held by each side i.e. bargaining structure is intertwined with bargaining power

Is CB different in the public and private sectors

A.Multilateral v. bilateral bargaining and the role of political power as an influence on relative and total bargaining power B. The elasticity of demand for labor C. The potency of the strike D. Recent attacks on public sector unions and CB

What will happen to this system as China continues to economically develop?

Almost all countries during industrialization form independent unions Hasn't happened yet for china

Interest arbitration in the private sector

Baseball pay is set through interest arbitration. Player can go before a interest arbitrator who sets their pay

Problem with this model

Enforceability. Audits are like asking a kid to grade their own homework. Policing themselves is especially difficult if the factory supplies to many companies, id a parent company says we'll cut you off if you don't improve practices the factory doesn't care they have other clients

Problems

Hard to negotiate and hard to enforce

Labor Court system in Germany

Having a union will provide a representative when one goes to labor court, one reason someone might want to join a union even if they'll be covered in a CB agreement without joining

Exceptions

High skilled labor: people in the media, athletes, actors --> more viewers, more exposure, more total power, more momey Boeing Workers --> skilled mechanics

Do public employees have too much power?

Hypothetically yes. But they're just using their political influence to decide who is management and thats just democracy!

How do you enforce the pattern?

INTEREST ARBITRATION -if interest arbitrators dont spread the pattern, wages could sky rocket (this is what interest arbitrators thing) - they believe they need a system to control the power of unions so that wage increases don't get out of control

Nation Shoe makers union was formed 1930's on what happened to the market?

International show market could have and should have formed to match the expanding market But unions did not become international to combat multinational corporations

The Elasticity of demand for labor

Is demand more inelastic in the public sector? Consider Marshall's conditions - YES 1. More difficult to substitute other factors for labor in public services such as teaching, police, fire. 2. Demand for final good is relatively inelastic --few competitors do exist such as private police and schools 3. High share of labor in total cost -- serves to disadvantage labor 4. Note: The above varies depending on which service -- police and fire (and teaching) may have inelastic demand, but public clerical or social workers may face elastic demand) --> Don't face a wage employment tradeoff, For which public employees is this not true? - postal service (automation) -clerical workers (automation)

A. Informal Centralization

Key settlements such as auto and steel receive much press and other attention

PERG

NY state equivalent of the NLRA

Will it ever happen?

No signs of independent unionism! Little pockets of negotiators, there are conflicts and strikes but no independent unions

How is it determined?

Performance of firm and appraisal system

1990s

Public concern over education quality 2. Privatization push

The Increasing role of NGO's

Rights groups purposed target labor conditions and standards

Grievance procedure

Same grievance procedure as in the US but no grievances! INFORMAL PROBLEM RESOLUTION Is this real unionism? yes just different: people work for a firm for their whole life, different relationship, supervisors are often the first level of union authority

Strong vs weak unions in NYC

Strong: police, fire, sanitation, teachers weak: District 37: not as much solidarity, not much wage employment tradeoff (elastic demand curve), racially divided union

Unions are more common in the PS

Unions and CB most common in the public sector or quasi-public sector (telecom, mining, airlines). The latter is relatively large in these countries. Just like US the government doesn't oppose as aggressively; cant just move plants abroad

Why hasn't the government allowed for independent unionism?

Unions are democratic, political turmoil, could form a national movement for political democracy

Problem with this model

Wage employment tradeoff, poor conditions give the country a competitive advantage, regulation costs money also lots of corruption, business community strong

Who do you bargain with first when pattern bargaining occurs?

You want to bargain with the WEAKEST union first. Weakest union is District 37. Get a moderate settlement and then go to the other unions and say you have to follow the pattern.

Trend toward market liberalism

a. Lessening of the size of the state sector/privatization e.g. Latin America (encouraged by US, World Bank, IMF) b. Labor market regulations weakening - layoffs and plant closings more frequent, overtime or weekend work restrictions are ending c. Unions weaker and CB more decentralized and contractual (less political)

Annular bonus

accounts for most of pay even in industries like the auto industry

Problems with a consumer pressure campaign

consumers don't change their behavior in the long run, doesn't apply to intermediate goods, people often don't change their behavior at all based on labor practices

Why are unions so week?

courts and government illegally and legally suppress workers, plants are very mobile, not much relative power, substitution of technology

Problems with this model

difficult to facilitate, enforce, coordinate

Unions can be state dominated

e.g. Argentina (Peronism), China (communist party) or paternalistic/boss e.g. Mexico One sanctioned union and no other form of unions allowed. Sometimes a link between the dominant political party and a union (mexico)

Multi-stakeholder initiatives

e.g. Better Factories Cambodia Program. Focused on improving safety in garment factories. Key to success is multi-stakeholder involvement with substantial remedial resources that help fund real improvements in factories and work conditions. Even in this program, however, penalties for non-compliance are lacking. Show managers that there are ways to improve conditions that aren't so onerous

International or cross national unionism

few examples of international collective bargaining; difficulties of cross-national union action.

OCB created as "neutral" administrative agency

i. union certification and other administrative functions ii. Interest arbitration is provided at impasse to all city employees except teachers (who get fact-finding) by vote of city council, with lindsay's support in 1969 iii. significant wage and benefit improvements (including police/fire "parity wars" and state legislature authorized pension gains)

Market for show making expanded, what happened:

labor challnged by competative pressure had to expand its jurisdiction to match the expansion of the market

Problems with this model

low income, high turnover, not much awareness, resistance from courts, employer, government

Political power

matters a lot (directly) in addition to total and relative power due to the heavy influence of government action and intervention (e.g. role of arbitration tribunals or government intervention in strikes)

Corporate codes of conduct

mixed motives - public relations vs. social concerns; corporate staff vs. plant/operations have diversity of interests; difficulty in monitoring compliance in light of the expansion of global supply chains e.g. what to do about suppliers who supply many companies and those sourcing patterns change frequently?

The ILO

most important actor, branch of the UN, international labor organization provide the technical assistance, writing laws, administration of safety laws

International or regional governmental or free trade agreement regulation

not many global or regional governmental bodies exist and those that exist don't have strong enforcement powers; differences of interests and views between the developed and less developed countries (who benefits from raising wages in less developed countries??); who makes the difficult wageemployment trade-off decision?

Local unions

often weak facing fierce government and/or employer opposition; does have the benefit of local control over wage-employment decision and likelihood of follow through and local responsiveness/innovation

Consumer Pressure Campaign

only works for consumer goods; will consumers significantly alter their purchases over these concerns? Will this sort of pressure have lasting and large effects?

Legal extension

plants in Germany where there is nor a single employee who is part of the union because of legal extension their wages and everything else is controlled by a union agreement made in that sector 90% gave CB agreements but only 30% are in unions

Problems with this model

resistance from employers and government, different laws and structures, less common interest, less solidarity, difference in interests regarding WHO GETS THE WORK

Historical reliance on the "iron rice bowl"

system/expectations in the large state sector - rigid wages with limited differentiation for skill or ability, little role for incentives, low pay with many benefits including food and housing allowances State enterprise: workers were guaranteed employment security, very little wage differentiation.

Unions often strong at MNC's

they are high total power targets and MNC's don't want to be conspicuous Private sector firms that do have CB are multi national corporations because they face more . pressure from governments that they don't put on domestic, the idea is "if we're going to let you produce here you should increase your labor practices"

LR and unions are state/party dominated

union officials are party officials, little real CB

National governmental regulation of labor conditions and standards

weak enforcement in many countries; governments often are "captured" by business interests and not interested in raising labor standards; suppose a government chooses unacceptably low labor standards, what then???

Highly regulated internal migration

with severe discrimination of urban migrants