Chapter 12 – Dealing with Union and Employee–Management Issues
A bargaining zone is the time period during which a third party is used to reach
agreement on union disputes.
76. A mediator has the power to impose a binding settlement on labor and management.
77. Arbitration is an agreement to bring in an impartial third party to render a binding
decision in a labor dispute.
78. Many of the negotiated labor-management agreements in the United States call for the
use of an arbitrator to end labor disputes.
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85. Labor and management at the Brookwood Company have reached an impasse in their
efforts to negotiate an acceptable labor-management agreement. The two sides have
agreed to bring in an arbitrator. If the arbitrator issues a ruling that the union does not like,
it can veto the decision.
Feedback: An arbitrator has the authority to render a binding decision.
86. Ashleigh has played a number of supporting roles on TV sitcoms. In her last role, she
understood her contract to obligate her to perform in 22 episodes for a stipend of $500 per
episode. After completion of 11 episodes, Ashleigh became ill and was unable to complete
the episodes in a timely manner. The studio claimed that Ashleigh broke her contract and
they are not obligated to pay her. She is confident that an impartial third party will view
her circumstances as exceptional and will rule that she be reimbursed for the 11
performances. She has agreed to mediation.
Feedback: Ashleigh has agreed to arbitration, whereby an impartial third-party official is
brought in to arbitrate a binding decision. Mediation involves a third party participant,
however, this person keeps negotiations alive, by encouraging both parties to continue to
negotiate and will also make suggestions to bring each side closer to resolution.
87.
Chapter 12 – Dealing with Union and Employee–Management Issues
Jian is a well-known professor of labor relations at a major university. She recently was
asked by representatives of labor and management at a nearby corporation to help them
resolve a disagreement that threatened to cause a breakdown in negotiations. If Jian agrees
to help, her role will be to encourage both parties to continue negotiating and to offer
constructive advice and suggestions, but she will not have the authority to render a
binding decision. Jian’s role is that of a mediator.
Feedback: A mediator is a third party who encourages both sides to continue negotiating to
overcome a disagreement. Although mediators often offer suggestions to help resolve the
disagreement, they do not have the authority to render a binding decision to the dispute.
88. Regina teaches at a local college. As a full time employee, she belongs to an organized
union that represents teachers. She recently filed a grievance against her Dean claiming
that the Dean prevented her promotion due to the fact that Regina’s academic credentials
are from a university that the Dean does not personally feel is properly accredited. As a
first step to resolving the conflict between the Dean (considered a management level
position) and the instructor, the union will support Regina by bringing in the national
union officer to negotiate with the University’s Chancellor (similar to the CEO for a
company).
Feedback: The first step in a grievance process will involve the shop steward, the local union
representative that represents employee interests on a daily basis. This person will meet with
the Dean to try and resolve the issue at the lowest level. If it is unresolved, the union will take
it to the next level of management, which will probably be a campus president or a vice-
president.
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93. Strikes have been an effective way of settling labor disputes without violence and
bitterness.
94. Postal workers and other employees of the federal government who provide important
services are allowed to form unions, but are denied the right to strike.
95. The “blue flu” refers to a situation in which union members (like firefighters) who are not
allowed to strike refuse to work by calling in sick.
96. A cooling-off period is when workers in a critical industry return to their jobs while the
union and management continue negotiations.
97.
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In a primary boycott, a union encourages its members and the general public not to buy
the goods and services produced by a firm involved in a labor dispute.
98. In 1996, the U.S. Supreme Court ruled that primary boycotts are illegal.
99. Tactics used by management when collective bargaining breaks down include injunctions
and lockouts.
100. The most potent weapon currently available to management when collective
bargaining breaks down is the use of yellow-dog contracts.
101.
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The Supreme Court ruled in 1938 that employers had the right to hire strikebreakers.
102. A common tactic of management in labor disputes is the use of secondary boycotts.
103. The use of strikebreakers did not become a common management tactic used in labor
disputes until the 1980s.
104. Workers who are hired to do the jobs of striking workers until the strike is over are
called “scabs” by the union.
105.
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A court order directing someone to do something or to refrain from doing something is
called a judicial citation.
106. Hiring strikebreakers to replace striking workers was historically a common
management tactic during labor disputes, but it is seldom used today.
107. The Taft-Hartley Act authorizes the U.S. president to ask for a cooling-off period to
temporarily prevent a strike in a critical industry.
108. Courts will issue an injunction against union tactics only if management can show a
“just cause” to restrict the union tactic.
109.
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The lockout is the most common tactic used by management today to deal with labor
management disputes.
110. Unions have used givebacks as a tactic to increase membership of a culturally diverse
workforce.
111. The largest labor organization in the U.S. is the National Education Association
(NEA).
112. Membership in labor unions has grown steadily over the past 50 years.
113.
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The unions of the 21st century are likely to be quite different from those in the past.
114. In the future, unions are likely to leave training and recruitment of workers to
management, and focus instead on encouraging those workers to join the union.
115. In the next few years, unions are likely to find that they must adopt a tough,
confrontational approach in order to get what they want from management.
Feedback: Due to significant declines in membership, as well as the decline in manufacturing,
the role of unions has changed. The drop in membership has made it difficult for unions to
take a hard stand against management, on just about any issue. The largest unions at this time
are state employee unions. The once powerful manufacturing-based unions do not exist. In
the future, unions will need to cooperate with management in training workers, redesigning
jobs, and helping to assimilate workers into the service-based economy.
116.
Chapter 12 – Dealing with Union and Employee–Management Issues
The Taft-Hartley Act gives the president the power to require striking workers in any
industry to return to their jobs for a cooling-off period while representatives of
management and the union continue to negotiate.
Feedback: The Taft-Hartley Act allows the president to ask for a cooling-off period to prevent
a strike only in a critical industry that is vital to the nation’s health or safety.
117. Bellandro Bay Brewery union representatives and the company’s management have
reached an impasse. Going forward, the union has planning an organized strike and other
tactics to put pressure on management where it will be most effective. Union supporters
are being encouraged to avoid purchasing Bellandro’s products. Now union leaders have
contacted a variety of stores that stock Bellandro’s Beer informing them that union
members and other supporters will stop shopping at any store that continues to carry the
brewery’s beer until the dispute is resolved in the union’s favor. This tactic against stores
that carry Bellandro’s Beer is called a primary boycott.
Feedback: A primary boycott is a boycott against a firm involved in a labor dispute. Thus, the
action taken directly against Bellandro Bay Brewery would be a primary boycott. However,
the action against retail stores is a secondary boycott. A secondary boycott occurs when a
union boycotts firms not directly involved in the labor dispute in an effort to persuade them to
stop doing business with the firm that is the subject of the primary boycott. Secondary
boycotts were declared illegal by the Taft-Hartley Act.
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118. Striking union workers are picketing near the entrance of the Bellandro Bay Brewery
plant where they normally work. The workers are acting peacefully and have not
threatened anyone entering or leaving the company or damaged any property. Bellandro’s
management is seeking an injunction to prevent the workers from picketing. The courts
are unlikely to issue an injunction under the current circumstances.
Feedback: Courts will issue injunctions against union activities if the company seeking the
injunction can show a “just cause” such as the possibility of violence or destruction of
property.
119. Workers at the West Fenton plant of Malzone Industries have gone out on strike.
Management believes it could continue operating the plant during the strike by hiring
replacement workers. If the company hires nonunion workers to continue its operations, it
will be violating a recent Supreme Court ruling that declared hiring replacement workers
as a violation of the Wagner Act.
Feedback: The Supreme Court ruled in 1938 that employers had the right to replace striking
workers. The law has not changed.
120.
Chapter 12 – Dealing with Union and Employee–Management Issues
Employees were striking at the London Met University last year. Very few students were
crossing the picket line. In fact, the city’s postal employees refused to deliver mail there
claiming that they were honoring the strike for their fellow service union members. The
Postal employees were participating in a voluntary secondary boycott.
Feedback: A Secondary boycott occurs when union members encourage others to stop doing
business with the company that is the focus of the primary boycott.
121. In the Making Ethical Decisions box, students are asked to consider what they would
do if they had the opportunity to be employed as a strikebreaker, at a company where
friends and family were currently out of work and on strike. If they choose to do so, they
are immediately hired as full-time workers.
Feedback: In the Making Ethical Decision box, the situation arises where a young person is
offered the opportunity to work in a grocery store, as a temporary replacement (strikebreaker)
for striking union members. Is it ethical to take advantage of such a situation?
122. After adjusting for inflation, the average executive compensation is actually a little
lower now than it was in 1960.
123. The disparity in salaries is clearly reflected in the fact that the average executive
compensation for a major company was $9.2 million, compared to a little more than
$40,000 that the average worker was compensated.
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124. CEOs only earn high salaries and bonuses when their companies earn substantial
profits.
125. The late Peter Drucker, one of 20th century’s leading management consultants was
very critical of the exorbitant compensations that some CEOs were getting.
126. Despite their high pay, most CEOs work far fewer hours per week than the average
employee in their companies.
127.
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Comparable worth is concerned with making sure that women get paid as much as men
when they do the same jobs.
128. The Equal Pay Act of 1963 required companies to provide equal pay to men and
women who perform the same job.
129. The concept of comparable worth holds that people who do jobs that require similar
levels of education, training and skills should receive equal pay.
130. Today, a woman usually receives a salary that is equal to approximately 80% of her
male counterpart.
131.
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The law protects both women and men from sexual harassment.
132. In 1997, the Supreme Court ruled that same sex harassment is prohibited by sexual
harassment laws.
133. Although workers and managers often know that their firm has a policy against sexual
harassment, they seldom have a clear understanding of what the policy actually says.
134. “Quid pro quo” sexual harassment occurs when a person’s conduct creates an
offensive, hostile, or intimidating work environment that adversely affects the job
performance of some other employee.
135.
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If you work for a foreign company doing business in the U.S., you are subject to the same
sexual harassment laws as anyone working in the U.S.
136. Because of the need to cut costs, fewer large U.S. companies now provide some sort
of child-care for their employees than ten years ago.
137. Small firms often offer innovative child-care programs as a way of competing for
qualified employees.
138. On-site child-care remains the only acceptable way for firms to meet the childcare
concerns of their employees.
139.
Chapter 12 – Dealing with Union and Employee–Management Issues
The number of households that face the burden of caring for one or more elderly parents
has increased significantly over the past decade.
140. In recent years federal programs such as Medicare and Medicaid have greatly reduced
the financial burden on families faced with caring for elderly adults.
141. Over the next decade costs associated with elder care are likely to have a much smaller
impact on businesses than child-care costs.
142. Elder care costs are likely to remain a major issue for businesses for many years.
143.