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9
INSTITUTIONAL ISSUES
UNDER COLLECTIVE
BARGAINING
SUMMARY
The rights and duties of the employers, employees, and unions are the institutional issues of
collective bargaining. On occasion, they can be more troublesome than the economic questions
involved with wages and benefits. Some of the longest and most bitter strikes have resulted from
conflict over the institutional questions of labor relations.
One of the most controversial issues is union membership as a condition of employment.
Labor organizations seeking greater security have negotiated a number of compulsory union
membership devices, the most common being the union shop. The closed shop, maintenance-of–
membership arrangement, agency shop, and the preferential shop are other security measures that
appear less frequently. The growth of the union shop is best explained by the Taft-Hartley
prohibition of the closed shop in firms engaged in interstate commerce. The goal of each of these
measures is to establish and maintain the institutional security of the union. Such devices are
present in about 82 percent of today’s collective bargaining contracts.
There are elements of morality, labor relations stability, and power in this area. Union
security may provide stability in industrial relations, but is it moral to compel a worker to join a
union? Are these ideological and philosophical issues a mere disguise for the real goal, increased
power and influence? Some twenty-two states now have legislation that bans any form of compulsory
the employer may sue the union in federal court for violation of the contract. When a contract
incorporates a no-strike agreement and an arbitration procedure, a federal court may issue an
injunction to halt the strike. The union can also be held responsible for wildcat strikes although
many contracts deal with this matter through nonsuability clauses. Other obligations involve limits
upon union activity during working hours and on the employer’s property.
Collective bargaining essentially involves the limitation of employer authority, and, as would
be expected, managements favor contract provisions that secure management rights and
prerogatives. About 80 percent of all agreements stipulate the types of decisions that are to be
“vested exclusively in the management.” These management security clauses are typically more
specific than general in describing the areas of employer autonomy. The negotiating posture
assumed by the management often depends upon whether it adheres to a residual or trusteeship
theory of employer rights. Regardless of the theory, there are two important thoughts to remember:
The power of the rights clause is always subject to qualification by the other clauses of the
agreement and consistent administration by the management must implement the rights clause if it
is to stand up before an arbitrator.
Also inspected here are, in turn: Codetermination and the question of unions in the Board of
Directors room, employee stock ownership plans, and quality of work life programs.
True/False # 1
1.
For all the problems of wage and wage-related issues, some of the longest and most
bitter strikes have been caused by conflict over institutional issues of collective
2.
The Wagner Act fosters legal recognition for unions and guarantees their
3.
Free riders are employees who join the union and gain the benefits of unionization
4.
Under the Wagner Act, the recognized union is protected from being dislodged by a
5.
About 82 percent of all contracts currently contain some form of union security
6.
The three basic methods of providing for union security are alike in the timing for
the requirement of union membership and in the degree of freedom of choice allowed
7.
The closed shop provision requires that a worker belong to the union before he/she
8.
Under a maintenance of membership arrangement, the worker is required to join the
9.
Under union shop and maintenance of membership arrangements, the employer has
10.
The Taft-Hartley Act of 1947 prohibited the closed shop in firms engaged in
11.
In spite of Taft-Hartley, some enterprises subject to its provisions have, in practice,
About 73 percent of all contracts today provide for a union shop.
T
13.
About 75 percent of the contracts studied in 1946 contained maintenance of
membership provisions.
F
14.
make a regular financial contribution to the labor organization.
T
Under the agency shop provision, nonunion members of the bargaining unit must
15.
members in hiring.
T
The preferential shop arrangement requires the employer to give preference to union
16.
following the beginning of the employment.
F
The NLRB, in literally interpreting Taft-Hartley, ruled in one case that a union shop
was lawful because it required workers to join the union on the twenty-ninth day
17.
18.
Neither the agency shop nor the preferential shop is common in collective
Employees under most maintenance of membership agreements are permitted to
withdraw from the union, without forfeiture of their job, only at the termination of
bargaining.
19.
employment, the worker may lose his job if expelled from the union for any reason.
F
When there exists an arrangement requiring union membership as a condition of
20.
placed upon the worker is to pay union dues and initiation fees.
T
The NLRB has ruled that under a union shop arrangement the only obligation
21.
membership except the closed shop.
F
The “right to work” laws of 22 states ban every form of compulsory union
23.
Current right-to-work laws are not in conflict with Section 14(b) of the Taft-Hartley
24.
Under no circumstances can the checkoff be used to deduct union initiation fees,
25.
bargaining issue of the checkoff.
T
Once willing to grant the union shop, employers have rarely made a major
26.
Taft-Hartley provides that the checkoff is lawful only on written authorization of the
employee, which is irrevocable for only 1 year or for the duration of the contract,
27.
In order to validate the checkoff, the employee must sign a new authorization each
The checkoff is illegal in some 22 states.
F
29.
security agreement.
T
The checkoff can offer some advantages to the employer operating under a union
30.
union agrees not to interrupt production during the effective contractual period.
T
Most employers will refuse to sign a collective bargaining agreement unless the
31.
All “no–strike” provisions require the union not to strike for any purpose or under
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32.
Unfortunately, in the vast majority of cases, unions fail to fulfill their no-strike
33.
Employers, under the terms of Taft-Hartley, can sue unions in U.S. district courts
34.
In some cases, contracts that contain no-strike provisions can be terminated if the
35.
Even if workers participate in an unlawful strike or slowdown, employers are rarely
36.
The Supreme Court ruled in Boys Markets v. Retail Clerks that when a contract
incorporates a no-strike provision and an arbitration procedure, a federal court may
38.
Under many labor agreements, the employer has the right to discharge or penalize
39.
Taft-Hartley creates a situation where an employer may sue a union because of a
41.
In many contracts, the union agrees not to conduct on the employer’s time or
property any union activity, including the handling of grievances, that will hamper
42.
Approximately 80 percent of all contracts contain management prerogative clauses
that explicitly recognize certain decisions as being “vested exclusively in the
43.
The management rights or management prerogatives clause supersedes any other
44.
A management that holds to a residual theory of management rights is likely to view
any union demand that imposes limitations on management as something to be
45.
The residual theory of management rights is based on the notion of an employer
having residual responsibility for the interests of employees, the union, and society,
46.
Management following the trusteeship theory attempts to balance the rights of all
48.
In 1980, the Chrysler Corporation gave the then-UAW president Lee Iacocca one of
True/False # 2
1.
bargaining.
Wages and economic supplements are considered institutional issues in collective
2.
status of management.
The term institution as used in this chapter, refers primarily to the institutional
3.
obligation) to bargain for all workers in the designated bargaining unit, if an election
Among the provisions of the Wagner Act, unions are granted the exclusive right (and
proves that they have majority support.
4.
against free-riders.
One advantage to unions of the Wagner Act is that it granted the unions protection
5.
security arrangement.
Maintenance-of-membership agreements are now the most common type of union
6.
period after the worker is hired.
Under a union shop contract, union membership is required within a certain time
7.
union members.
Maintenance-of-membership agreements stipulate that the employer is required to
hire in such a way that a mutually-agreed upon percentage of the work force be
8.
Due to the special characteristics of the construction industry, it has been granted
the right to use an approximation of the closed shop even though it is often engaged
9.
Agency shops and preferential shops are fast becoming the most common form of
10.
Some contracts providing for a union shop contain an “escape period” during which
old employees are permitted to withdraw from the union at the expiration of the
11.
Right-to-work laws pose little threat to union security arrangements in the states
12.
Should Congress repeal the section of Taft-Hartley that permits the passage of state
right to work laws, these laws would cease to have any effect upon firms engaged in
13.
Improvements obtained in collective bargaining benefit only those employees who
14.
of dues to a non-labor, non-religious charity.
An employee who has religious beliefs against joining a union or financially
supporting it may be required, instead, to make a contribution equal to the amount
15.
Unions do not have to represent workers who do not belong to the union in the
16.
Checkoff arrangements are included in the large majority of collective bargaining
been strongly supported by American labor.
17.
The so-called checkoff arrangement describes a situation where workers may choose
(i.e., check off) whether to have only their union dues deducted from their wage
18.
institutional status.
One advantage to unions of the checkoff is that it further strengthens the union’s
19.
Checkoff arrangements are present in somewhat over 95 percent of all labor
agreements today.
20.
through the checkoff method.
Some contracts provide that the union must share in the expense of collecting dues
21.
Because the checkoff is so important to union finances—they are sure to get all the
dues owed them—and because management has opposed the concept from the start,
22.
One advantage of the checkoff to both union and employer is that it removes the
need to start discharge procedures against the employee who is negligent in
23.
Some collective bargaining agreements contain language that allows a union to
strike during the life of the contract for any reason, but only after the entire
24.
Though a contract may permit strikes during the contract period, unions are never
25.
Unfortunately for management, the law provides little in the way of remedies when
26.
The Supreme Court has upheld the right of an employer to discharge workers
28.
The Supreme Court ruled in a 1983 case that employers may impose stiffer penalties
29.
during lunch and rest periods.
In order to maintain the efficient operation of the plant, nearly all labor agreements
contain the stipulation that union officers will refrain from soliciting members
30.
managerial authority.
A fundamental characteristic of collective bargaining is that it places limitations on
31.
The issue of restricting management authority through collective bargaining is
32.
Employers who believe in the residual theory of management rights tend to resist
33.
The theory of management rights that is opposite to the residual theory is the
Codetermination is widely practiced in the United States.
35.
Though historically opposed by management, the concept of codetermination has
36.
The practice of codetermination is much more common in other countries, notably
37.
One reason that codetermination has not caught on in the United States is the
38.
Douglas Fraser, then president of the UAW, was given a seat on the Chrysler board
of directors in 1980, reluctantly and only as part of the price Chrysler had to pay to
39.
Many rank-and-file union members accused Douglas Fraser of “selling out” to
40.
Due in large part to Douglas Fraser’s impeccable performance on the Chrysler board,
most American companies now include union representation on their boards of
41.
As in the case of codetermination, until recently most unions have opposed employee
44.
ESOPs have been shown to be highly ineffective in almost all cases, despite
45.
The term, quality of work life, basically refers to direct participation by workers in
46.
Quality-of-work-life programs, though in existence for many years, have never really
47.
Unlike the case of ESOPs, organized labor has heartily embraced the concept of
48.
As part of a landmark quality-of-work-life program at its Saturn facility, General
49.
Quality of work life programs have been clearly shown to improve morale and
50.
The United States is now and has always been a fruitful territory for genuine union–
Multiple Choice # 1
1. The institutional dimension of collective bargaining
2. The Wagner Act
3. Which of the following has not been a source of institutional insecurity for unions?
4. By the year 2008, union security provisions were found
5. The provision that requires union membership before a worker can be hired is called a
6. Under a maintenance of membership agreement, the employee
7. The closed shop
8. The union shop arrangement
9. Nonunion members of the bargaining unit are required to make a regular financial
contribution to the union
10. Under some union shop arrangements
11. The Taft-Hartley Act outlaws
12. Under the typical maintenance of membership agreement
13. The union shop provision
14. Section 14(b) of the Taft-Hartley Act
15. Checkoff arrangements
16. The employee’s written authorization of a checkoff arrangement
17. A checkoff arrangement
18. Contract provisions establishing certain obligations on the part of the labor organization
19. If the union violates a no-strike provision, under many contracts the employer can
20. The Supreme Court ruling that when a contract incorporates a no-strike agreement and an
arbitration procedure, a federal court may issue an injunction to terminate the strike was
made in
21. The Boys Markets ruling dealt with
22. If a wildcat strike occurs
23. In some collective bargaining agreements the union agrees
24. Management prerogatives or management rights clauses
25. An employer who holds to a “residual” theory of management rights would be more likely to
26. As of 2008, the number of U.S. companies with ESOPs was about
27. QWL programs have been installed in
Multiple Choice # 2
1. Institutional issues under collective bargaining are those that
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2. Free riders are workers who
3. Which of the following is not considered a union security arrangement?
4. Union security provisions
5. In terms of the employer, the basic difference between the closed shop and union shop is
6. The closed shop appears in what percent of today’s labor agreements?
7. The union shop appears in approximately what percent of today’s labor agreements?
8. In a preferential shop arrangement
9. The NLRB has ruled in a case in which an employee was discharged after being ousted from
the union where membership was a condition of employment that
d. the issue was nonarbitrable and relief would have to be sought through the courts.
10. Right-to-work laws
11. Right-to-work laws
12. If an employee has bona fide religious beliefs against joining a union, Congress has passed
legislation providing that
13. Checkoff arrangements appear in ________ percent of today’s labor agreements?
14. Checkoff arrangements often deal with issues other than what the management agrees to
deduct. Among them are
15. No-strike provisions in labor agreements are
16. The right of an employer to discharge workers participating in illegal strikes has been
17. Wildcat strikes
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18. In contracts that obligate unions not to conduct union business on the employer’s time or
property, which of the following is often an exception to this obligation?
19. Employers often find their decision-making ability limited by
20. Under the trusteeship theory of management rights
21. Codetermination in the United States
22. Union response to ESOPs has
23. Employers tend to support ESOPs because
24. When ESOPs are included in a labor agreement
25. The increase in QWLs in recent years seems to be prompted in part by
Essay Questions
1. Compare and contrast what the textbook has termed the residual and the trusteeship
theories of management rights. In your opinion, which is more valid? How are the actions of
an employer following one theory likely to be different from an employer following the other?
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2. Discuss the different union security provisions that involve union membership as a condition
of employment. What are their basic differences? What have state and federal law said about
these arrangements? You should also touch on the three elements of the controversy
mentioned by the book.
3. What are management rights clauses and why do they appear in collective bargaining contracts?
4. Why has codetermination never taken root in the United States? Does anything appear to be
changing in this regard?
5. What explains the recent growth of quality of work life programs? Will this trend, in your
opinion, continue—and why or why not?
6. Explain how the various union security provisions discussed in this chapter serve the
institutional needs of organized labor. In light of the fact that the Wagner Act essentially
legitimized unionism, why are these provisions necessary? Be sure that your answer reflects
your understanding of “institutional.”
7. Discuss the concept of union obligations as they frequently appear in labor agreements. In
your discussion, explain what remedies, if any, are available to management if unions do not
meet their obligations.
8. Trace the development of ESOPs in the United States. How has organized labor reacted to
the concept and why? Management? How do both sides feel about such plans now? Why?
9. Discuss the development and present status of right-to-work laws in America. In your answer
show your understanding of these laws in relation to federal legislation.
10. Discuss the checkoff. What is it and what are its advantages to both unions and
management? Disadvantages?
Term Paper Topics
1. Right-to-work laws: Desirable public policy?
2. Trends in the area of management prerogatives.
3. Employer enforcement of no-strike provisions in labor agreements.
4. Management philosophies of labor relations.
5. “Right–to–work” as an area of controversy in the student’s home state.
6. Codetermination: How much sense does it make for American management?
7. Quality-of-work-life programs: Are they nothing more than a fad?
8. The Saturn venture within General Motors.