Chapter 11- Globalization, final written responses
What is a European Works Council and what role does it serve?
A European Works Council is a transnational company-level committee of employees that has consultation and information rights. In other words, a EWC allows employees from each country to be informed about decisions that might affect them. EWC's must meet with management at least once per year to be informed and consulted regarding the progress of the business. It can also request a meeting with management when there are exceptional circumstances such as a plant closing. The requirement for what information must be provided and who represents the employees is decided by the national law of each country. The EWC is not empowered to conduct collective bargaining but rather to create an open and healthy dialog between management and labor.
Describe the arguments for and against the use of permanent strike replacements in economic strikes
Employers argue that the ability to hire permanent strike replacements is necessary to maintain balance in the negotiating process. The main argument against allowing only temporary strike replacements is that it would be too difficult for employers to hire only temporary workers—they need the ability to offer permanent full time employees to be able to continue operations through a strike. Taking this ability away would give unions too much power, causing them to strike more frequently for increased demands that would reduce competiveness and destroy jobs.However, it has been argued that permanent strike replacements are effective in breaking a strike and/or decertifying a union. Workers are essentially fired for exercising their protected rights under the NLRA. Unions argue that this situation creates imbalance in the bargaining process and gives management too much power. They further argue that this is clearly contrary to the original intent of the NLRA
What is a corporate code of conduct and how effective are they in securing labors' rights in an international, global economy?
A corporate code of conduct is a written statement of standards that a company pledges to follow in its business activities. They often specify fair business practices, labor standards, environmental standards, corporate citizenship and ethics, and respect for relevant laws. Corporate codes of conduct may address child labor, discrimination, and health and safety issues and, less frequently, collective bargaining rights. Corporate codes of conduct are voluntary and therefore not legally enforceable. This fact explains the relatively weak effect of corporate codes of conduct in addressing labor concerns in an international market. Because the codes are voluntary and rely on publicity rather than legal power for enforcement, it is difficult to enforce the content. Companies can create their own standards, exclude standards that serve their best interests, or change and ignore standards to suit their immediate needs. Further, the codes need not address all issues important to labor (e.g., collective bargaining). Companies that rely on self-monitoring have no accountability. While some codes are monitored by human rights groups, this can be controversial because enforcement may hold companies to high standards or these groups may not have the resources to adequately monitor many employers
What is the difference between an offensive and a defensive lockout and for each give an example of a situation in which an employer might want to use it. What are the rights of strikers and strike replacements in a lockout situation?
A defensive lockout occurs when an employer locks out employees to prevent losses from an expected strike. If an employer handles perishable goods and expects a strike but the union will not reveal the timing of its strike plans, the employer can lock out the employees to prevent losses stemming from the spoilable of its perishable products. This is a defensive action to protect the employer from significant economic losses.An offensive lockout occurs when an employer takes the initiative to pressure the union for a more favorable settlement. A common reason for this initiative is to control the timing of the work stoppage. An employer may want to use this lockout before a professional athlete begins their season to prevent them from striking right before a major game, which could result in significant economic losses for the owners.Both of these lockouts are legal as long as they protect or support employers' bargaining positions. However, they are not legal if they are overly aggressive and appear to be an attempt to destroy the union. Hiring temporary replacements is allowed during a lockout whereas permanent replacements are not
What is "associational unionism" and why might it be better suited to meet the needs of today's labor force than the traditional model of unionism.
Associational unionism recognizes the fact the today's workers have multiple interests - political, occupational, industry-specific, and company-specific. Often they are interested in joining associations that pursue these interests in a nonadversarial way, through training, education, setting professional standards, and political lobbying. Associational unions would try to blend the multiple-interests and services currently provided by professional associationswith the power of unions to create a new organizational form. These organizations would havethe power to negotiate contracts and strike but, like a professional association, they could also use political pressure and publicity to achieve their ends and would not focus exclusively on issues related to the collective bargaining relationship. The associational model is not based on exclusive representation - workers would be able to join various associations that meet their specific interests and needs.
Explain the dimensions of a corporate global strategy. How does each affect labor relations?
A multinational corporation's global strategy has two central dimensions: configuration and coordination. Configuration involves the location of various activities, such as whether production is concentrated in one country and exported to other markets or whether production is globalized into various countries through foreign direct investment. It affects labor relations by influencing relative bargaining power between corporations and employees through, for example, threats to move operations from one country to another. The coordination dimension consists of the degree to which activities in different countries are homogenized versus autonomous. It affects labor relations in the degree of centralization versus decentralization of policies. Labor relations process will need to find ways to incorporate responses to local customs and problems. A highly centralized approach means that local customs and practices will likely not be honored and employees will need to conform to a common approach. A highly decentralized approach may introduce inefficiencies and inequities in treatment and local managers will need to build networks across the organization to facilitate coordination and learning.
How might an employer's approach to labor relations change in moving from a shareholder to a stakeholder model of corporate governance?
A stakeholder approach would represent a significant change in an employer's approach to labor relations. Rather than a traditional adversarial approach, high-performance work systems with extensive employee involvement would likely be more widespread. Employers would probably remain neutral in union organizing drives and be more likely to agree to voluntary recognition. Labor-management negotiations would be more integrative in nature. Grievance resolution would probably be more flexible and informal. Companies might be less likely to move production to different locations in response to union activity or modest labor cost differentials. More information would probably be shared with employees and their representatives and employees would have a voice in strategic decisions. Finally, unions might adopt less militant strategies and structures
What is the difference between an economic strike and an unfair labor practice strike? Describe the rights of strikers and strike replacements in both economic and unfair labor practice strikes
An economic strike is when employees are striking over wages, benefits, and work rules (mandatory bargaining issues) during contract negotiations. An unfair labor practice strike occurs in protest against an employer's unfair labor practices (i.e., violations of the NLRA). It is legal to have replacement workers do the work of strikers during an economic strike. Employers do not have to fire the replacements at the end of a strike in order to provide jobs to strikers who want to return to work. In other words, employers can hire permanent strike replacements as well as temporary strike replacements (who are discharged at the end of the strike).Strikers who have been permanently replaced are not necessarily entitled to immediate reinstatement to their jobs after they end their strike. However, these employees cannot be fired in the literal sense. Rather, at the conclusion of a strike, returning strikers are placed on apriority recall list, and as jobs become available, the employer must first offer jobs to the former strikers before hiring any new employee. In addition, the status of temporary or permanent replacements must be disclosed to them at the time of hire.By contrast, employers cannot use permanent replacements during an unfair labor practice strike (otherwise, employers could benefit from their own illegal actions). Unfair labor practice strikers are therefore entitled to immediate reinstatement at the conclusion of the strike. It is up to the NLRB to determine whether a strike is an economic or unfair labor practice strike. However, this determination can be complicated. If an unfair labor practice has"anything to do with" causing a strike or if it appears that the employer's unlawful conduct played a part in the employees' decision to strike, then the strike is an unfair labor practice strike. Also, an employer's unfair labor practice during an economic strike can convert the strike to an unfair labor practice strike.
What is an enterprise compact and how might it present an alternative to traditional union representation?
An enterprise compact is a document specifying the principles of a labor-management relationship based on union and employee involvement in business decision making. Employers agree to treat workers and unions as business partners. In return, the union commits to helping the employer maintain competitiveness and to share more of the risks (andrewards) of company success.
The number of strikes in the U.S. has been steadily declining since around 1975.What factors are likely to explain this decline?
Before the 1980's, strikes typically followed the business cycle. Since that time, however, strike activity has consistently declined and is no longer tied to the business cycle. There are several possible explanations, not mutually exclusive, for this trend. First, it is possible that over time employers and workers have learned that strikes are very costly for all involved and are not rational on a cost-benefit basis. Second, it is possible that more employers are engaged in union substitution practices that increase voice in the workplace and therefore decrease the need for strikes. Third, from a standard economic perspective, strikes occur because information is lacking or asymmetric. It's possible that employers and unions have better information in negotiations today than they did before and they are, therefore, better equipped to reach a settlement. For example, they may have access to more information on the economy, other contract settlements, and each other's strategic objectives. Finally, the decline may result from the increased acceptability of using strike replacements that started in the 1980s which has discouraged workers from using the strike weapon for fear of losing their jobs
Explain what a boycott is and discuss the limitations of the boycott as a tactic to pressure employers to agree to a union's terms in contract negotiations.
Boycotts are campaigns aimed at getting customers to stop doing business with a particular company as a way of pressuring that company to concede to the union's contract terms. Boycotts can be very effective if the union is successful in getting customers to withdraw there business but this can be difficult to do. Unions are only allowed to encourage the boycott the primary target of their labor dispute and are not allowed to apply pressure through other employers by conducting a secondary boycott (or boycott against an employer who is not the primary target.) This greatly limits the potential effectiveness of the boycott. The legal doctrine regarding boycotts is complicated and can make it difficult for both the employer and the union to know what is considered a "fair" boycott. The law can limit the boycott in such a way as to reduce its overall effectiveness (e.g., by treating separate businesses of a parent company as individual businesses.) In addition, as boycotts generally involve picketing, the law regarding picketing also limits the effectiveness of boycotts by restricting both the content and location of the picket.
Explain the concept of corporate social responsibility, its foundations, and its implications for labor relations systems.
Corporate social responsibility is a viewpoint that rejects the shareholder value model and, importantly, the notion that employees can be thought of primarily labor costs and the sole concern of business should be profit-maximization. The corporate social responsibility modelis grounded in the ethics of duty, fairness or justices, and virtue, rather than the ethics of utility and liberty. The corporate social responsibility viewpoint is broader in scope and viewsbusiness as, fundamentally, a human activity where profit maximization is important but must be balanced with respect for humanity and the corporation's role in society. Since corporations are legally sanctioned by governments, and shareholder rights are not unlimited, corporations can and should be asked to serve the public interest and not pure self-interest. Corporations, while private entities, are not purely private as they also serve a social function and can, therefore, be held to common social values. This perspective suggests that businesses should be held to societal norms that value human dignity and respect workers' interests and rights. The corporate responsibility perspective is consistent with the United Nationals model code of conduct for companies and includes concerns for environmental sustainability as well as worker rights.
What are the advantages and disadvantages to foreign direct investment?
Foreign direct investment can open new investment opportunities and benefit countries by bringing in more resources which in turn creates new jobs and new technology. This provides the base for further economic development and growth. Foreign subsidiaries of multinational companies often pay higher wages than local domestic companies and share the profits. However, foreign direct investment can also result in the exploitation of workers with low bargaining power, degrade the environment where there are no protections (i.e., social dumping). Further, it can result in the loss of jobs and downward pressure on compensation for employees in the "home" countries.
Describe the three strategic roles of an HR manager. What are the major challenges for an HR manager in each role with regard to labor relations?
Human resource managers can be seen as having three roles: builder, change partner, and navigator. The builder assembles the basic components of an organization's HR function, coordinating staffing, compensation and other functions of HR. The major challenge for the builder is to create processes for negotiating and administering contracts that fit with the otherorganizational needs. In other words, to construct labor relations processes within the organization that can address day-to-day issues such as grievances, disciplinary actions, and the like. The change partner reshapes the HR function in response to organizational or environmental changes. The challenge facing the change partner is to shape labor-management relations in a way that will promote competitiveness in a global economy, allow flexibility in response to change, and maintain a healthy relationship between the employer and its employees. The navigator must continuously develop organizational competencies and performance by balancing the internal pressures faced by the builder and the external pressures faced by the change partner. The navigator is challenged with maintaining respect for union and employee needs while at the same time promoting competitiveness and creating flexibility.
Explain the relationship between labor market conditions and the probability of astrike occurring. What other factors do you believe might increase (or decrease) the incidence of strikes nationwide.
If the economy is strong and job opportunities are plentiful, employees may be more willing to go out on strike because there is less fear about losing their jobs. Hiring replacement workers will be more difficult in a strong economy. In a weak economy, however, jobs are scarce and there is significant anxiety about job loss as there are many available replacements.Ironically, it is usually when the economy is weak that unions would most like to strike as they are more likely to be asked for "give backs" at the bargaining table.In addition to the state of the economy, there are several other factors that may increase or decrease the likelihood of a strike. The size of the employer's inventory and/or the strength of product demand will influence the employer's concerns about the possibility of a strike. When there is a large inventory of finished products ready for sale, the employer will be less concerned than when inventory is strong (particularly if demand is also strong). The degree of union solidarity present in the bargaining unit is also a factor that can positively influence the likelihood of a strike. Finally, the ability of the employer to move production to another location, either temporarily or permanently, will influence the likelihood of a strike.
In 2012, President Obama introduced a "deferred action" initiative for immigrant youths illegally brought to the U.S. as children. This initiative would allow approximately 1.8million immigrants under the age of 31 a two-year, renewable reprieve from deportation provided they meet certain qualifications (e.g., graduation from HS, no felony convictions). In general, what are the advantages and disadvantages to immigration as a component of globalization?
Immigration provides an avenue for people to escape persecution or poor working and living conditions in their own country. It offers them the opportunity to find a better life for themselves. Given this, unskilled immigrant workers are often willing to take jobs that others are not and will work for less pay, thus making them a cheap source of labor for host country companies. Highly skilled immigrant workers can fulfill labor shortages in the host country which allows host country companies to continue operations and keep wage rates down. Immigration brings new cultures, foods, and ideas that can be beneficial to the destination country. These same things, however, can also cause tension in the destination country as citizens may feel their livelihood is threatened by immigrant workers and cultural differences can lead to misunderstandings and tension. Low-skilled immigrant workers can depress the labor market for high school students and dropouts. They can also create management challenges for employers and communities (e.g., language barriers, racial conflict).
What is the difference between conventional arbitration and final offer arbitration and why might a state choose one over the other as its compulsory dispute resolution system?
In arbitration, the parties present their final offers (and arguments) to an arbitrator for review. Conventional arbitration allows the arbitrator to fashion any terms for a settlement that he or she deems fair. The arbitrator in this case is not constrained to the final offers in deciding the settlement terms. The uncertainty of what the arbitrator will choose and the loss of control by the negotiators over the settlement terms is intended to motivate negotiators to reach their own negotiated agreement without resorting to arbitration. It has traditionally been believed that such a system suffers from the "chilling effect." If arbitrators simply split the difference between the positions of labor and management, each side might hold back from making comprises during negotiations. Thus, the chilling effect may lead to an increase in impasse.In final offer arbitration, the arbitrator must choose either the union or management's offer and is not allowed to deviate from those final offers. Final offer arbitration was created to try to lessen the chilling effect of conventional arbitration. This offer comes in two variations: (1)total package final arbitration, in which the arbitrator must select one party's final offer on all the disputed contract terms (for example wages, health insurance holidays, etc.); and (2) issue-by-issue final offer arbitration, in which the arbitrator can choose either party's final offer on an issue-by-issue basis. It is generally believed that final offer arbitration puts the parties at greater risk of losing if their offers are unreasonable and, hence, should encourage the parties to come closer to an agreement during negotiations.
Describe the legal limitations on picketing. Why do so many restrictions exist?
In economic and unfair labor practice strikes, picketing is legal but with some limitations. Picket line misconduct such as violence or vandalism is not protected by the NLRA and can therefore result in discipline and loss of recall rights at the end of the strike, as well as potential criminal prosecution. Mass picketing that blocks entrances to an employer's property is also illegal. Injunctions by state courts are still used to restrain picketing, and it is not unusual for an injunction to limit the number of picketers at each entrance to an employer's property.Workers that choose to cross a picket line have a legal right to do so. Unions, however, have the right to discipline union members who cross a picket line. Union members, on the other hand, have a right to resign from the union to avoid discipline (e.g., expulsion or a fine). Boycotts are frequently supported by picketing, and the legality of such conduct can be especially complex in the construction industry when employees of numerous companies are working at the same construction site, also known as common situs picketing. When picketing of this type targets an entire work site, it is considered illegal because it includes secondary or neutral employers. The law seeks to balance the employees' right to publicize their dispute with the secondary and/or neutral employers' right to conduct business. Finally, picketing in a union recognition strike is limited to 30 days (with some exceptions)
What are international investment portfolios and how can they be beneficial as a component of globalization? How can they be potentially harmful?
International investment portfolios are packages of foreign stocks, bonds, and mutual funds owned by individual or institutional investors (e.g., a pension fund). International investment can be beneficial because investors may be able to influence decisions of foreign companies to address labor and environmental concerns. International investment provides companies in developing countries with working capital to fund their operations. These portfolios spread risk across countries and allow investments to find their most productive uses. The danger of international investment portfolios is the temptation to engage in currency speculation that creates high volatility in the foreign exchange markets. This volatility can destabilize developing country economies and can have severe negative effects on wages, job opportunities, and living standards.
Describe what mediation is and explain the various stages involved in getting the parties to reach a mutually acceptable agreement.
Mediation is a dispute resolution process in which a natural third party - the mediator - helps negotiators avoid or resolve an impasse. The use of mediation does not need to wait until an impasse occurs, unlike strikes or arbitration. Mediators lack the authority to force a resolution by imposing a settlement on the negotiators; rather, mediation is essentially "assisted negotiation."There are several stages involved in getting the parties to reach a mutually acceptable agreement. First, the mediator sets the stage by collecting information and establishing the ground rules. Second, the mediator works on clarifying the disputed issues and on developing alternative solutions through problem solving. Third, the mediator works to achieve a workable agreement, which encourages the negotiators to reach a settlement.
Explain the concept of solidarity unionism and describe how this approach might be used to increase labor's bargaining power and protect union rights.
One of several proposals for increasing the strength of the U.S. labor movement, solidarity unionism seeks to enhance solidarity or cohesiveness within and across workplaces. Rather than focusing on ways to cooperate with employers, solidarity unionism sees its role as one ofprotector and advocate for worker rights. It is more likely to emphasize the differences between management and worker goals and look to ways to increase power and protection through the mobilization of workers and aggressive organizing and representation tactics. Solidarity unionism proposal include the concept of nonmajority unions, reduced union bureaucracy, grassroots activism, and occupational unionism. The solidarity model is quite close to the traditional business unionism model, with the distinction of greater worker involvement and activism.
In 2007-2008, more than 12,000 members of the Writers Guild of America wentout on strike after contract negotiations with the Alliance of Motion Picture and Television
Producers (AMPTP) came to impasse. The strike started in November, 2007 and concluded inFebruary, 2008 and, by some estimates, cost the industry around $2 billion. Given the expense of the strike to the industry and lost income to the writers, what other alternatives might the writers have considered in their quest to pressure the AMPTP to make concessions? Why do you think the Writers Guild decided to strike instead of pursuing these less costly alternatives?One possible action by the writers could have been to encourage a boycott of movies and television programs produced by members of the AMPTP. A boycott would encourage viewers to refuse to watch any programming such programming. This tactic would not, unfortunately, prove to be too successful for the writers for at least two reasons. One, the strikers would have difficulty convincing viewers to give up their shows voluntarily. Two, given the size of the AMPTP, it would be extremely difficult to provide viewers with accurate information as to which shows they should boycott.Another alternative to the boycott or a strike might have been to engage in a work slowdown or work-to-rule. Slowdowns would pressure the AMPTP by imposing costs through lowered productivity while still preserving the writers' jobs. However, a slowdown in this particular industry might anger viewers by lending unpredictability to the viewing schedule. This could possibly turn public sentiment toward the AMPTP and have the unfortunate effect of backfiring on the union.Intermittent strikes might have been another alternative for the writers but intermittent strikes are less effective in an industry where there are lots of employers and alternative program options. In addition, as with the slowdown the intermittent strikes would create unpredictability in scheduling programs and could backfire on the union.Finally, the writers could have embarked on a corporate campaign to create negative publicity for the AMPTP. Corporate campaigns can be very effective when safety is an issue or where there is clear management abuse because the public is more readily engaged in the story. However, no such abuses were at play in this situation where the primary concern was one of compensation. Given this, it would probably be more difficult garner public support
Most government employees do not have the right to strike, regardless of their reason for wanting to do so. Why are strikes generally prohibited in the public sector?
Public sector strikes are prohibited for a variety of reasons (or the combination of these reasons). First, it is argued that striking against the government is an unacceptable threat to the supreme authority of the government. Second, it is argued that public sector employee bargaining power is too high because there are no market-based checks on their demands. Therefore, allowing public sector employees to strike will give them too much power to pressure an employer to concede to its demands. Third, it is argued that government services are too critical to be interrupted by a strike and that allowing strikes to occur in the public sector will pose a danger to the public.
What is social movement unionism and how might this approach be used to increase labor's bargaining power and protection for workers.
Social movement unionism rejects the narrow business unionism focus on workplace-based collective bargaining and instead sees labor unions as representatives of the entire working class and as part of a broader social movement of community, social, and political activist groups. Gains for workers would be won through social and political channels, rather than through workplace collective bargaining. Advocates of a stronger U.S. labor movement see greater social activism as one route to more power in society and at the bargaining table. As with solidarity unionism, grassroots participation and mobilization of the workforce are seen as keys to the success of social movement unionism.
How can organized labor use participation in ESOPs as both a defensive and offensive tool in strengthening labor's bargaining power?
Stock ownership as a defensive strategy refers to a union's acceptance of stock ownership plans as a substitute for higher wages and benefits (i.e., guaranteed compensation increases). In other words, to help keep a company competitive, the union agrees to stock ownership for its members, rather than outright pay increases. However, in recent years unions have becomemore aggressive about using their financial position (i.e., stock ownership) to take offensive action against employers as a way of protecting worker interests. Union pension funds, through significant ownership shares, use their rights as shareholders to submit shareholder proposal and resolutions to limit executive compensation, ensure the independence of outside board members, and bring about other changes in corporate strategies and governance. Purchasing and investment decisions can also be used as a way to reward companies that provide favorable treatment to workers or that are more likely to benefit union workers (i.e., investing in unionized companies).
Explain the primary purpose of the European Union and its stance on labor standards for member countries.
The European Union was formed primarily out of political, rather than economic needs. The primary method of achieving integration, however, has been economic. Economic concerns prevail over labor and social concerns as the EU takes the perspective that economic prosperity will drive positive social changes, including better treatment of workers. That said, there has been concern with labor standards to establish basic human rights and prevent social dumping between member countries. As a result, the Community Charter of Fundamental Social Rights of Workers, or Social Charter, was adopted in 1989 to outline desired standards on freedom of movement, fair remuneration, equal treatment for men and women, health and safety protections, working conditions, vocational training, freedom of association and collective bargaining, and rights to information, consultation, and business decision participation for workers
What is the International Trade Union Confederation and what are its main objectives?
The ITUC is a worldwide federation of national union federations such as the AFL-CIO in the U.S., the Trades Union Congress in Great Britain, and the DGB in Germany. The ITUC formed as a way to strengthen international union solidarity and have more influence in the global sociopolitical economic system. Its main objectives are to facilitate consultation, communication, and cooperation among unions. The ITUC collects and publishes information and research to keep unions abreast of international developments. It also provides education and training to union leaders and financial assistance to emerging labor movements. The ITUC is an important advocate for organized labor at the WTO and other organizations and/or conventions. Among other things, the ITUC pressures multinational corporations to adopt codes of conduct that respect workers' rights
What is the ILO and how does it address labor standards associated with globalization? What are the core labor standards of the ILO?
The International Labor Organization is a specialized agency of the United Nations focused on promoting social justice and internationally recognized human and labor right. The ILO has a unique tripartite structure with representatives from labor, corporations, and government sent from each country. Its primary activity is adopting and promoting minimum labor standards. The ILO has adopted a set of core labor standards around freedom of association and collective bargaining, abolition of forced labor, no discrimination in employment and pay,elimination of child labor and other issues. While not legally enforceable, the ILO relies on publicity, diplomacy, and technical assistance to encourage compliance with its labor standards
What is the NAFTA Side Agreement on Labor and how it is used to address labor issues in Mexico, the U.S., and Canada?
The NAFT side agreement on labor, called the North American Agreement on Labor Cooperation, was adopted to address labor's fears that low Mexican wages might undercut U.S. competitiveness, put downward pressure on U.S. wages and working conditions, and cause widespread plant closings and job loss. The NAALC provides 11 guiding principles that promote union activity, nondiscrimination, equal pay, minimum wages, and workplace safety. However there are no uniform standards and, at best, the NAALC provides a forum for complaints against employers to be heard. These complaints stem from violations of each country's individual laws and not an attempt to create common labor standards across the 3 countries.
Explain the circumstances under which a U.S. president is allowed to intervene in alabor dispute between management and a union that has resulted in a strike
The Railway Labor Act empowers the president of the United States to create a presidential emergency board if a railway or airline strike threatens prevent essential transportation service necessary for interstate commerce. The board has 30 days to investigate the dispute and issue a report that usually contains nonbinding recommendations for a settlement. The strike is allowed to proceed after 30 days In the private sector, Taft-Hartley allows the president to appoint a board of inquiry to investigate and report on disputed issues if a strike or threat of strike presents a danger to national health or safety. The president can seek a court-ordered injunction halting the strike or threatened strike for up to 80 days. Similarly, in the health care sector the president is allowed to appoint a board of inquiry and halt a strike if it would substantially interrupt the delivery of health care in the locality concerned. Finally, it is possible that the president could seize an operation to maintain production.
What is the role of the World Trade Organization and what philosophy does it promote with respect to globalization?
The World Trade Organization is an international organization of over 150 countries that provides a forum for negotiating and enforcing global trade agreements. Initially it was created to administer the General Agreement on Tariffs and Trade (GATT) and to handle trade negotiations. The WTO promotes free trade through the reduction of trade barriers including tariffs, quotas, domestic subsidies, discriminatory government procurement policies, and regulations. The WTO allows countries to establish standard necessary to protect human, animal, or plant life or to conserve exhaustible natural resources as long as these are not trade barriers. The WTO has the authority to resolve trade disputes and any country found in violation must change its trade policy or pay damages.
How can four schools of thought on the labor problem from Chapter 2 be useful to considering options to regulating globalization to limit short term costs and problems associated with exploitation?
The alternatives to govern the global workplace parallel the alternatives for workplace governance (i.e., the four schools of thought on industrial relations). First, the free market argument suggests that no regulations are necessary and that, left to its own devices, the free market will determine the optimal outcomes for producers, consumers, and workers. Second, a human resource management perspective would suggest that corporate self-monitoring is the best approach. This position would advocate the adoption of corporate codes of conduct and the spread of best human resource management practices. Third, an industrial relations perspective would suggest that what is needed is a strong labor movement worldwide. This perspective would advocate a mix of laws protecting worker rights to unionization and protective labor legislation. Finally, the critical industrial relations perspective would suggest that none of these methods will be successful and that the only solution is worker control over factors of production, perhaps starting with a strong socialistic labor movement worldwide.
What are the benefits and problems associated with international trade?
The benefits of international trade stem from the assumptions of a free and open market. Free trade across countries allows consumers and producers to benefit from specialization. A country with a comparative advantage in producing a particular product (due to its proximity to raw materials, skills and talents of its people or another factor) can capitalize on its strengths to produce that product more efficiently than other countries. This reduces the price to all consumers and frees other economies to develop their own comparative advantage. Free trade increases the size of markets and allows companies to take advantage of increased economies of scale at the same time it reduces the monopoly power of domestic (sometimes inefficient) producers. Countries benefit from increased growth and income while consumers enjoy lower prices and greater choices. The downside of international trade, however, is the loss of jobs and wealth as the economy adjusts to increased free trade. Faster growth may increase pollution and environmental degradation. The emphasis on comparative advantage overlooks the importance of corporate strategies to creating a competitive advantage and ignores the importance of governmental policy in creating these advantages. Finally market imperfections can distribute the benefits of international trade unevenly. Most particularly, unequal bargaining power between countries or between labor and capital owners can make it easier for exploitation to occur.
Suppose you are among those who believe that the NLRA should be deregulated. Justify your position and describe how labor-management concerns would be addressed under your proposed model of labor relations.
The perspective that the NLRA should be repealed or deregulated stems from a mainstream economics model and the ethics of libertarianism. Unions present a barrier to free markets by exercising monopoly power over labor. They cause harmful economic effects by artificially raising wages higher than the competitive market would sustain. As such, the NLRA reduces aggregate wealth, forces unwilling employers to negotiate wages that make them less profitable, and force workers to pay dues when they would prefer not to belong to a union. Unions should be subject to the same antitrust regulations that limit other business organizations from engaging in anticompetitive practices. However, a true free market perspective suggests that explicit restrictions should not be placed on unions - if they have theeconomic power to push their demands in a free market, they should be allowed to do so. In this regard, the deregulation perspective is not that different from Great Britain's system of voluntarism.
Suppose you are among those who believe that the NLRA should be transformed. What arguments support the claim that a complete overhaul is necessary? What alternative models might be considered as a replacement for the NLRA model of exclusive representation?
The primary reason for transforming the NLRA is the adversarial nature of labor relations in the U.S. which many argue is caused by the very nature of the NLRA. Proponents of transformation argue that adversarialism is bad for employees and employers in a global economy because it makes both representation and profit maximization more difficult. Specific features of the NLRA that foster adversarialism are the concepts of exclusive representation and majority support. Because a union must garner the support of a majority of workers, the representation process takes on an "us vs. them" flavor in which both sides try to make the other look bad to the employees who will be voting. One option to change the tone of the NLRA would be to provide legal support for nonmajority unions by requiring employers to negotiate with these unions. The contracts would not extend to all workers, only to those who are part of the union. A second option would be to supplement or replace the certification process with works councils. Other elements of transformation might include employee free speech rights, unjust dismissal procedures, employee representation on company boards, and the right to workplace information.
Most states invoke some form of third-party dispute resolution to settle contract disputes that occur in the public sector. Explain the main dispute resolution options available to state lawmakers and discuss the degree of control both the third party neutral and the parties themselves have over the process
The three primary third-party dispute resolution mechanisms are mediation, arbitration, and fact-finding. In mediation, the neutral party is a mediator who tries to facilitate an agreement but lacks the power to force an agreement. A mediator has a high level of control over the negotiating process but not the outcome. In arbitration, the neutral third party is an arbitrator who forces an agreement on both parties by issuing a ruling that specifies the exact settlement terms. An arbitrator has a high level of control over the outcome but no involvement in the negotiating process. In fact-finding, the neutral third party is a fact finder who investigates the dispute and makes nonbinding recommendations for a settlement. A fact finder lacks control over both the process and the outcome.
Explain the key differences between the shareholder and stakeholder models of corporate governance. Describe the legal, organizational, social, and individual changes that would facilitate a shift in corporate governance behaviors from the shareholder to stakeholder mentality.
The traditional shareholder model of corporate governance places the primary, if not exclusive, responsibility of managers on ensuring firm profitability. The shareholder perspective is based on utilitarian and libertarianism ethical views as well as a legal view of corporate governance based mainstream economic models. Firms that are not focused on profits, will not lead to the "greater good." The stakeholder model, on the other hand, criticizes the shareholder perspective as too narrowly focused on short-term financial results that treat employees as labor costs and denies meaningful input into business decisions. This perspective does not deny the importance of shareholder rights but also recognizes that these rights are granted by governments and society. As such, the stakeholder model suggests that corporations have other obligations that are necessary to meet the needs of society. Specifically, corporations should consider the needs of all stakeholders - employees, customers, suppliers, local communities, and others - in addition to shareholders. The stakeholder model advocates organizational change in governance goals but also greater legal changes in corporate governance that would reinforce the importance of other stakeholders' interests.
Suppose you are among those who believe that the NLRA needs to be strengthenedand reinforced. What kinds of changes might you advocate? Consider both legal decisions andlegislative changes.
The two main perspectives on strengthening the NLRA focus on either changing court interpretation of existing law (i.e., overturning prior case decisions) or changing the law itself.The first approach would focus on educating judges about labor issues and the historical intent of the NLRA in the hopes that future decisions would undo some of the damage. For example, the Mackay Radio decision as it pertains to permanent strike replacements in economic strikes could be challenged and overturned. The more common view, however, is that the law itself needs to change. Changes could either be remedial (i.e., small, incremental changes that focus on issues such as stronger monetary penalties, reduced election delays) or substantive (expanding NLRA coverage, removing restrictions on secondary boycotts, widening the list of mandatory bargaining items, changing representation election procedures,and eliminating strike replacements).
In between proponents looking to strengthen the NLRA and those looking to regulate are individuals who argue a compromise position that the NLRA should be "loosened." What are the arguments for loosening the NLRA and what proposals have been suggested as ways to do this? Refer specifically to that section of the NLRA where modifications have been proposed
The view that argues the NLRA should be loosened focuses primarily on Section 8(a)(2) of the NLRA, the section that prohibits the use of company-dominated unions. The NLRA defines labor organizations quite broadly and can include labor-management committees as well as formal unions. The possibility that workplace committees could be ruled a violation of the NLRA has been argued to inhibit collaboration between management and labor and to unnecessarily preserve the atmosphere of adversarialism that has existed between labor and management. Thus, proponents of the "loosening" argument would like to see Section 8(a)(2)exceptions such as those proposed under the TEAM Act which would explicitly allow committees that do not attempt to negotiate collective bargaining agreements. A compromise position would be to loosen the NLRA in this regard while at the same time, making it easier for workers to unionize should they choose to do so. Another suggestion for loosening the NLRA would be to allow for employees committees that are explicitly charged with holding the employer accountable for violations of existing labor laws. If successful, this could provide employees with a platform for participating in employment law compliance tailored to the needs of each workplace. These committees might then also give additional voice to workers and allow them to shape broader codes of conduct within businesses. Employers could be encouraged to allow these committees by giving partial immunity from legal penalties when their compliance program includes effective committees.
Not all strikes are created equal. Describe the various kinds of strikes that might be used by employees and explain how they are treated under the law.
There are many different types of strikes but perhaps the two most important are the economicstrike and the unfair labor practice strike. Economic strikes are an attempt to pressure the employer to give better wages, benefits, and work rules during contract negotiations. Workers refuse to work until their terms are met. Economic strikes are the most frequent type of strikesin the U.S. and are protected by the NLRA when workers are striking over mandatory bargaining issues. This means workers cannot be disciplined or discharged from raising this strike. However, they can be replaced with either permanent or temporary strike replacements.An unfair labor practice strike occurs in protest of an employer's unfair labor practice(s) or violation of the NLRA. Workers cannot be disciplined, discharged, or permanently replaced but they can be temporarily replaced.A recognition strike occurs when employees are striking to force an employer to recognize and bargain with their union. These are protected by the NLRA but workers can be temporarily or permanently replaced. A sympathy strike occurs when workers strike in a showof support for other workers who are on strike. These strikes are protected under the NLRA aslong as strikes are not violating a no-strike clause in a contract. However, employees may be temporarily or permanently replaced. Wildcat strikes occur when union workers strike in violation of a no-strike clause prohibiting work stoppages over grievances during the life of the contract. These employees can be disciplined for striking by both the union and the employer. Finally, a jurisdictional strike occurs when a union strikes to force an employer to assign certain work to its members. These strikes are prohibited by the NLRA
All components of globalization have increased dramatically since the 1970s. Many companies in the U.S. now do business abroad, invest abroad, and have relocated facilities abroad. Given the extent of this corporate internationalization, why haven't unions followed suit to the same degree? In what ways have unions begun to collaborate?
There are significant barriers to transnational labor collaboration and unionization including language barriers, cultural and religious differences, and ideological differences regarding the role of workers and unions in society. As well, there are not yet strong interconnected social networks for unions and workers to share knowledge and strategies. Unions may fear losing domestic autonomy and control over their own domestic agendas. There are often significant legal barriers to cross-national unionization and collaboration between unions. Even union structure and goals differ widely throughout the world as demonstrated by the more social movement agenda of, say, French unions compared to the practical, business union model of U.S. unions. Finally, there is strong employer resistance to international unionization. The emphasis on international collaboration between unions has been on international solidarity campaigns in which union workers from one country show support for union workers in another country. They may, for example, contribute financial or public support to their cause. Global union federations are becoming increasingly successful in getting multinational corporations to sign international agreements to respect workers' rights to collective bargaining and minimum wage and safety standards. In addition, unions have been increasingly successful in using the Internet and social media as a way to apply public pressure to businesses throughout the world.
Describe the three strategic roles for union leaders. What are the major challenges for a union leader in each role with regard to labor relations?
Union leaders face similar challenges to those of HR managers. As such, they also serve three strategic roles of builder, change partner, and navigator. Builders must create union structures that fulfill the labor movement's basic functions (organizing, bargaining, contract administration and political lobbying). These structures must be internally consistent, meet therequirements of a democratic organization, and perform routine administrative functions such as budgeting, strategic planning, and benchmarking. As change partners, union leaders must partner with rank-and-file members to construct new forms of representation that fit changes in the external environment. This means addressing issues such as workforce diversity, increased education levels, and increased competitive pressures on employers. Finally union leaders must be navigators that can balance the internal and external pressures faced by the builder and change partner. These pressures may be between new and existing members, between centralized power and decentralized responsiveness to local conditions, between centralized control and democratic processes, and between solidarity across workplaces and concern for individual needs.
If bargaining impasses occur so infrequently and so few working days are lost due to strikes, why is it important to study bargaining impasses and various alternative disputeresolution mechanisms?
While it is true that fewer than 3 percent of bargaining notices to the FMCS end up in strikes, it is important to study alternative dispute resolution mechanisms for several reasons. First, the possibility of a bargaining dispute underlies all labor negotiations because the threat of strikes, lockouts, and other pressure tactics ("economic weapons") can be used to try to force the other side to make additional concessions at the bargaining table. Second, bargaining in good faith to an impasse fulfills each side's legal obligation. Third, major strikes can have devastating consequences for workers, employers, and the public so understanding how they occur and how they can be avoided is important. Fourth, some dispute resolution methods canbe used before an impasse is reached (especially mediation), and others are designed to prevent an impasse from occurring (especially arbitration); thus their significance is greater than a low dispute rate might otherwise indicate. Finally, the method used to resolve bargaining disputes is a distinguishing feature between different labor relations systems or laws. The method chosen, can create differences in the labor relations environment.
