Chapter 12 – Dealing with Union and Employee–Management Issues
12-1
Dealing with Union
and Employee–
Management Issues
chapter
=
what’s new in this edition 12.3
brief chapter outline and learning goals 12.3
lecture outline and lecture notes 12.5
PowerPoint slide notes 12.45
lecture links 12.65
lecture link 12-1: THE COMPLICATED LEGACY OF HENRY FORD 12.66
lecture link 12-2: UNION UPROAR IN WISCONSIN 12.67
lecture link 12-3: ADDITIONAL LABOR–MANAGEMENT TACTICS 12.67
lecture link 12-4: RESHAPING THE UNION TO SAVE THE UNION 12.68
lecture link 12-5: UNIONS TURN TO THE SERVICE INDUSTRY FOR GROWTH 12.69
lecture link 12-6: REVAMPING EXECUTIVE PAY 12.70
lecture link 12-7: THE MALE EMPLOYMENT DROUGHT 12.71
lecture link 12-8: RECESSION INCREASES WORKPLACE SUICIDES 12.71
lecture link 12-9: EMPLOYEE STOCK OWNERSHIP PLANS 12.72
12
Chapter 12 – Dealing with Union and Employee–Management Issues
12-2
critical thinking exercises 12.73
critical thinking exercise 12-1: ARE UNIONS GOOD OR BAD FOR BUSINESS? 12.73
critical thinking exercise 12-2: UNION NEGOTIATIONS 12.74
critical thinking exercise 12-3: EXECUTIVE PAY WATCH 12.76
bonus cases 12.77
bonus case 12-1: DO RIGHT-TO-WORK LAWS HELP STATES? 12.77
bonus case 12-2: PENSION PLANS UNDER ATTACK 12.79
what’s new in
this edition
additions to the 10th edition:
• Getting to Know David Stern, Commissioner of the National Basketball Association
• Name That Company: Bright Horizons
revisions to the 10th edition:
• Text was revised to eliminate redundancy and tighten discussions.
deletions from the 9th edition:
• Getting to Know Roger Goodell, commissioner of the National Football League
Chapter 12 – Dealing with Union and Employee–Management Issues
12-3
• Legal Briefcase
• Spotlight on Small Business
brief chapter outline
and learning goals
c h a p t e r 12
Dealing with Union and
Employee–Management Issues
Getting To Know DAVID STERN of THE NATIONAL BASKETBALL
ASSOCIATION (NBA)
I. EMPLOYEE–MANAGEMENT ISSUES
learning goal 1
II. LABOR UNIONS FROM DIFFERENT PERSPECTIVES
A. The History of Organized Labor
B. Public Sector Union Membership
III. LABOR LEGISLATION AND COLLECTIVE BARGAINING
A. Union Organizing Campaigns
learning goal 3
B. Objectives of Organized Labor over Time
C. Resolving Labor–Management Disagreements
D. Mediation and Arbitration
Chapter 12 – Dealing with Union and Employee–Management Issues
12-4
learning goal 4
Describe the tactics used by labor and management during conflicts, and discuss the role of
unions in the future.
IV. TACTICS USED IN LABOR–MANAGEMENT CONFLICTS
A. Union Tactics
B. Management Tactics
C. The Future of Unions and Labor–Management Relations
learning goal 5
V. CONTROVERSIAL EMPLOYEE–MANAGEMENT ISSUES
A. Executive Compensation
B. Pay Equity
C. Sexual Harassment
VI. SUMMARY
Chapter 12 – Dealing with Union and Employee–Management Issues
Getting to Know DAVID STERN of THE NATIONAL BASKETBALL
ASSOCIATION (NBA)
Over his three decades with the NBA, Stern has led the league to huge growth from local
ticket sales to globalization. Labor issues, however, have been a sore spot. Stern has presided
over five employee lockouts. As of this writing, he is teetering on his sixth.
As the number of women in the workplace began growing rapidly about 25 years ago,
this company recognized that providing child care benefits would be a real advantage
for companies. Today, it is the largest provider of child care at worksites, operating
about 700 child care centers for 400 companies including 90 companies in the Fortune
500. Name that company.
Chapter 12 – Dealing with Union and Employee–Management Issues
12-6
(See complete PowerPoint slide notes on page 12.45.)
(See complete PowerPoint slide notes on page 12.45.)
(See complete PowerPoint slide notes on page 12.46.)
(See complete PowerPoint slide notes on page 12.46.)
(See complete PowerPoint slide notes on page 12.46.)
(See complete PowerPoint slide notes on page 12.47.)
Chapter 12 – Dealing with Union and Employee–Management Issues
5. However, unions have failed to regain their previ-
ous power, and membership declined.
6. REASONS FOR UNION DECLINE:
a. Some suggest that global competition, the shift
TIVES
A. Your opinion about unions usually depends upon
3. But some argue that for organized labor the real
issue of protecting workers has become second-
ary.
Chapter 12 – Dealing with Union and Employee–Management Issues
(See complete PowerPoint slide notes on page 12.47.)
Henry Ford founded the Ford Motor Company in 1903,
producing an inexpensive, all-purpose car, the model T.
Throughout its history the company’s dealings with the union
were complex and contradictory. (See the complete lecture
link on page 12.65 in this manual.)
(See complete PowerPoint slide notes on page 12.47.)
This exercise asks the student to consider unions from both
the manager’s and the union member’s perspective. (See com-
plete exercise on page 12.73 of this manual.)
Chapter 12 – Dealing with Union and Employee–Management Issues
C. THE HISTORY OF ORGANIZED LABOR
1. As early as 1792, CORDWAINERS (shoemak-
Chapter 12 – Dealing with Union and Employee–Management Issues
12–10
(See complete PowerPoint slide notes on page 12.48.)
SPOTLIGHT ON
small
business
(Text page 327)
PPT 12-11
The Triangle Fire
(See complete PowerPoint slide notes on page 12.48.)
(See complete PowerPoint slide notes on page 12.48.)
Chapter 12 – Dealing with Union and Employee–Management Issues
fell from prominence.
4. The AMERICAN FEDERATION OF LABOR
(AFL) was formed in 1886 under the leadership of
SAMUEL GOMPERS.
a. The AMERICAN FEDERATION OF LABOR
ship of GEORGE MEANY.
d. Recently, the AFL-CIO’s influence has weak-
Chapter 12 – Dealing with Union and Employee–Management Issues
12–12
(See complete PowerPoint slide notes on page 12.49.)
Chapter 12 – Dealing with Union and Employee–Management Issues
e. In 2005 seven unions left the AFL-CIO and
Chapter 12 – Dealing with Union and Employee–Management Issues
12–14
(See complete PowerPoint slide notes on page 12.49.)
Cash-strapped states are struggling with budget cuts and
public unions. (See the complete lecture link on page 12.66 in
this manual.)
(See complete PowerPoint slide notes on page 12.49.)
This text figure shows the five major federal laws that have
had a significant impact on labor unions’ activities.
Chapter 12 – Dealing with Union and Employee–Management Issues
WAGNER ACT) provided legal justification for un-
ion activities.
a. COLLECTIVE BARGAINING is the process
1. Union objectives change over time due to shifts in
Chapter 12 – Dealing with Union and Employee–Management Issues
12–16
(See complete PowerPoint slide notes on page 12.50.)
(See complete PowerPoint slide notes on page 12.50.)
This text figure describes the steps involved in a union-
organizing campaign leading to certification.
This exercise simulates the negotiations that occur between
labor and management in reaching a contract agreement. (See
complete exercise on page 12.74 of this manual.)
(See complete PowerPoint slide notes on page 12.50.)
Chapter 12 – Dealing with Union and Employee–Management Issues
job security, but the biggest issue is GLOBAL
COMPETITION.
c. The AFL-CIO opposed the North Atlantic Free
in a negotiated labor–management agree-
12–18
(See complete PowerPoint slide notes on page 12.51.)
This text figure gives a list of topics commonly negotiated
by labor and management during contract talks.
(See complete PowerPoint slide notes on page 12.51.)
This text figure explains four common types of union
agreements.
Chapter 12 – Dealing with Union and Employee–Management Issues
d. The AGENCY SHOP AGREEMENT is a
clause in a labor–management agreement that
but must pay a union fee.
D. RESOLVING LABOR–MANAGEMENT DISAGREE-
MENTS
1. The negotiated agreement becomes the basis for
union–management relations.
2. Labor and management do not always agree on
the interpretation of the labor–management
Chapter 12 – Dealing with Union and Employee–Management Issues
12–20
PPT 12-21
Right-to-Work Laws
(See complete PowerPoint slide notes on page 12.51.)
bonus case 12-1
DO RIGHT-TO-WORK LAWS
HELP STATES?
A major debate has been, Does passage of right-to-work laws
make a difference in a state’s economy? (See the complete case,
discussion questions, and suggested answers beginning on page
12.77 of this manual.)
PPT 12-22
States with Right–to-Work Laws
TEXT FIGURE 12.5
States with Right–to-Work Laws
(Text page 332)
(See complete PowerPoint slide notes on page 12.52.)
PPT 12-23
Resolving Disagreements
(See complete PowerPoint slide notes on page 12.52.)