Intro to Business Chapter 12

Business in Business in Action 8e Action 8e Bovée/ThillBovée/Thill

Developing a Business Mindset

Chapter 12Chapter 12Labor RelationsLabor Relations

Production Systems

Copyright © 2017 Pearson Education, Inc.

Learning Objectives

1. Explain the role of labor unions, and contrast the perspectives of employees and employers on the issue of unionization.

2. Identify the three most important pieces of labor relations legislation enacted in the 20th century.

3. Explain how unions are structured, and describe the organizing process.

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Learning Objectives (cont.)

4. Describe the collective bargaining process.

5. Explain the procedures for addressing employee grievances and arbitrating disputes.

6. Characterize the ongoing conflict over union organizing efforts.

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The Role of Labor Unions


• Labor relations The relationship between organized labor and

management (in its role as the representative of company ownership)

• Labor unions Organizations that represent employees in

negotiations with management

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Exhibit 12.1 Union Membership in Selected Industries

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Unionization: The Employee’s Perspective

• Higher compensation• Greater benefits• Influence over hiring, promotions, and

layoffs• Working conditions and workplace safety• Formal processes for employee

grievances, discipline, and other matters• Solidarity and recognition

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Unionization: Management’s Perspective


• Flexibility• Productivity• Work rules

A common element of labor contracts that specifies such things as the tasks certain employees are required to do or are forbidden to do

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Exhibit 12.2 Major Pieces of Labor Relations Legislation

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Unionization in Historical Perspective


• National Labor Relations Act Legislation passed in 1935 that established

labor relations policies and procedures for most sectors of private industry

Commonly known as the Wagner Act

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Unionization in Historical Perspective (cont.)


• Labor-Management Relations Act Legislation passed in 1947 that addressed

many concerns raised by business owners and shifted the balance of power again

Commonly known as the Taft-Hartley Act

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Unionization in Historical Perspective (cont.)


• Labor-Management Reporting and Disclosure Act Legislation passed in 1959 designed to

ensure democratic processes and financial accountability within unions

Commonly known as the Landrum-Griffith Act

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The Organizing Process


• Union security Measures that

protect a union’s right to represent workers

• Union shop A unionized

workplace in which employees are required to maintain union membership

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The Organizing Process (cont.)


• Right-to-work laws State laws that prohibit union and agency

shops

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Exhibit 12.3 Right-to-Work States

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Types of Unions


• Craft unions Offer membership

to workers with a specific craft or skill, such as carpentry, masonry, or electrical work

• Industrial unions Seek to represent

all workers at a given employer or location, regardless of profession or skill level

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How Unions Are Structured


• Locals Local unions that represent employees in a

specific geographic area or facility

• National union A nationwide organization composed of many

local unions that represent employees in specific locations

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Union Organizing Drives


• Authorization cards Cards signed by employees to indicate

interest in having a union represent them

• Certification election A secret-ballot election overseen by the

NLRB to determine whether a union gains the right to represent a group of employees

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Union Organizing Drives (cont.)

• Decertification An employee vote to take away a union’s

right to represent them

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Exhibit 12.4 The Union Organizing Process

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The Collective Bargaining Process


• Collective bargaining A negotiation between union and

management negotiators to forge the human resources policies that will apply to all employees covered by a contract

• Collective bargaining agreements (CBAs) Contracts that result from collective

bargaining

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Exhibit 12.5 The Collective Bargaining Process

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Negotiating an Agreement

• Mediation Use of an impartial third party to help resolve

bargaining impasses

• Arbitration A decision process in which an impartial

referee listens to both sides and then makes a judgment by accepting one side’s view

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Exhibit 12.6 When Negotiations Break Down: Labor and Management Options

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Labor Options


• Strike A temporary work stoppage aimed at forcing

management to accept union demands

• Boycott A pressure action by union members and

sympathizers who refuse to buy or handle the product of a target company

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Labor Options (cont.)

• Injunction A court order that requires one side in a

dispute to refrain from or engage in a particular action

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Management’s Options

• Strikebreakers Nonunion workers hired to do the jobs of

striking workers

• Lockout A decision by management to prevent union

employees from entering the workplace Used to pressure the union to accept a contract

proposal

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Grievance, Discipline, and Arbitration Procedures


• Unfair labor practices Unlawful acts made by either unions or

management

• Grievance A formal complaint against an employer

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• Progressive discipline An escalating process of discipline that gives

employees several opportunities to correct performance problems before being terminated

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Grievance, Discipline, and Arbitration Procedures (cont.)

The Future of Labor


• Declining membership Union membership in the U.S. is now less than

12 percent Half of those members work in public-sector

jobs, not in business• Do more U.S. workers want to be

represented by unions? Survey results vary

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Applying What You’ve Learned


1. Explain the role of labor unions, and contrast the perspectives of employees and employers on the issue of unionization.

2. Identify the three most important pieces of labor relations legislation enacted in the 20th century.

3. Explain how unions are structured, and describe the organizing process.

12-30


Applying What You’ve Learned (cont.)

4. Describe the collective bargaining process.

5. Explain the procedures for addressing employee grievances and arbitrating disputes.

6. Characterize the ongoing conflict over union organizing efforts.

12-31

Copyright © 2017 Pearson Education, Inc. 12-32

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