Chapter 12 – Dealing with Union and Employee–Management Issues
PPT 12–45
Facing Childcare Issues
PPT 12–46
Businesses Response to Child Care
PPT 12–47
Increasing Elder Care Challenges
As the population ages, caring for one’s parents and
other relatives will be a bigger employment-related issue.
Proactive companies will develop benefits to meet this
challenge.
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PPT 12–48
Elder Care in the Modern Household
1. As boomers’ parents age, more and more have
started bringing them into their homes.
2. 25% of boomers expect to live with their parents
again.
3. Ask the students, Do you think this will delay
more retirements? What does this mean for the
young workforce?
PPT 12–49
Drug Use in the Workplace
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PPT 12–50
Violence in the Workplace
PPT 12–51
Warning Signs of Possible Workplace
Violence
1. Managers and workers must be on the lookout for
possible signs of workplace violence.
2. Most companies do not have formal training or a
formal policy to deal with workplace violence.
3. Ask the students to discuss the following question:
What actions can management take to prevent
workplace violence? (Firms that maintain positive
employee relations tend to experience fewer prob-
lems. The key to prevention of workplace violence is
being proactive.)
Chapter 12 – Dealing with Union and Employee–Management Issues
PPT 12–52
Progress Assessment
1. Executive pay in the United States is significantly
higher than in other countries. For example, the typical
European CEOs earn only about 40% of what their
U.S. counterparts make.
2. Equal pay for equal work refers to giving equal pay to
men and women who do the same job. This concept
was codified in the 1963 Equal Pay Act. Pay equity
goes beyond this concept and says people in jobs that
require similar levels of education, training, or skills
should receive equal pay. For example, the pay of an
occupation traditionally considered a women’s job,
such as a bank teller, should pay the same as a truck
driver typically considered a man’s job.
3. Sexual harassment refers to any unwelcome sexual
advance, requests for sexual favors, and other verbal or
physical conduct of a sexual nature that creates a hos-
tile work environment. This behavior is considered il-
legal if the conduct unreasonably interferes with a
worker’s job performance or creates an intimidating,
hostile, or offensive work environment. It is also con-
sidered illegal if the sexual harassment constitutes a
workers to set aside pretax dollars for elder care ex-
penses, and offering flexible work schedules.
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lecture
links
lecture link 12-1
THE COMPLICATED LEGACY OF HENRY FORD
Henry Ford founded the Ford Motor Company in 1903, producing an inexpensive, all-purpose
car, the Model T. His company grew rapidly after the Model T became an instant success. The close rela-
tionship he enjoyed with his skilled workers deteriorated as he installed the assembly line and hired un-
During this early period, Ford instituted other worker benefits that were revolutionary. He created
a Safety and Health Department in 1914 and opened the Henry Ford Trade School in 1916 so that boys
could learn a trade while attending school. Another farsighted policy was the hiring workers with partial
Chapter 12 – Dealing with Union and Employee–Management Issues
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But Ford was inconsistent in his dealings with his workers. During the 1920s, Ford instituted a
cost-saving campaign. The assembly line was increased in speed so that workers performed their jobs in
The Wagner Act was passed in 1935, establishing a national policy of protecting the rights of
workers to organize and collectively bargain. Under the protection of the Wagner Act, the United Auto-
mobile Workers began a systematic campaign to organize the automobile industry. By 1937, they had
lecture link 12-2
UNION UPROAR IN WISCONSIN
As America’s manufacturing might has waned, so too has the power of its unions. But you
couldn’t tell that from looking at the Wisconsin capital building in Madison lately. In early 2011, Gover-
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In fact, many see the events ]in Madison as a portent for things to come in other cash-strapped
states. With a new crop of Republican governors in office, union boosters fear this latest assault on work-
lecture link 12-3
ADDITIONAL LABOR–MANAGEMENT TACTICS
ADDITIONAL TOOLS USED BY LABOR TO FIGHT MANAGEMENT
In addition to those discussed in the text, other tools that labor uses in its efforts to achieve con-
cessions and “fair treatment” from management include:
2. Blue flu. A form of slowdown occurs when a large number of workers suddenly “become ill” and
3. Sabotage. Putting glass soda bottles inside car doors, slipping faulty bearings into machines,
4. Political power. Endorsements from labor unions are often very important to elected officials.
5. Financial influence. Unions can contribute funds to the campaigns of elected officials that sup-
port labor issues and withhold support from those who are known for their anti-union voting pat-
6. Publicity battles. With growing media attention to business events, union leaders have become
adept in presenting their causes to the public, seeking sympathy, understanding, and support. A
Chapter 12 – Dealing with Union and Employee–Management Issues
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ADDITIONAL TOOLS USED BY MANAGEMENT TO FIGHT LABOR
In addition to those discussed in the text, management has the following tools to combat labor:
1. Harassment of union members and their families. The goal is to get the members to drop out
2. Modern “yellow dogs.” Companies can often gauge the feelings of employees regarding unions
3. Political power. Companies, like unions, have vast resources that can be used to contribute
4. Financial power. Companies can direct their financial resources to institutions that are pro-
5. Pacts and mutual support organizations. Sometimes firms within a given industry share infor-
mation about union strategies before collective bargaining begins. They decide to unite to hold
6. Publicity. Large firms have established public relations departments and teams that can procure
7. Two-tier wage systems. Two-tier wage systems maintain present workers at existing pay levels
8. Plant closings. The ultimate weapon an employer has is to close the business if workers do not
lecture link 12-4
RESHAPING THE UNION TO SAVE THE UNION
Andrew Stern, president of the powerful Service Employees International Union (SEIU), has
been a labor activist and innovator for more than 30 years. His commitment to the labor cause underwent
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Stern took his revolution into the leadership of the giant AFL-CIO. He wanted the federation to
merge some of its small unions with larger ones. Stern also wanted to recruit more aggressively and
According to Stern, labor has slipped into a form of economic Darwinism. He feels that the global
economy has made things worse, with multinationals competing to find the cheapest labor, minus un-
lecture link 12-5
UNIONS TURN TO THE SERVICE INDUSTRY FOR GROWTH
Unions now represent only 13.2% of the labor force. If the figure goes much lower, unions may
become irrelevant as a force in business. The answer, many union organizers believe, is to organize ser-
Chapter 12 – Dealing with Union and Employee–Management Issues
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from tax forms into computers, and her work is monitored to see if she meets daily goals. If not, she re-
ceives warnings. This is a return to the management styles of Frederick Taylor and Scientific Manage-
ment, and is greatly resented by some workers.
lecture link 12-6
REVAMPING EXECUTIVE PAY
In an unsettling era, few things have managed to stir up as much ire as the disproportionate bo-
nuses given to many of the nation’s most inept executives. For example, Countrywide Financial’s Angelo
Mozilo, who received $103 million in bonuses and unloaded $169 million worth of stock as his business
For decades, companies judged their own executive salaries on that of their peers. Rather than
awarding good work, 86% of S&P corporations said they based their executive pay on what other groups
of similar companies compensated their bosses. Over the years, an ever-increasing game of corporate one-
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lecture link 12-7
THE MALE EMPLOYMENT DROUGHT
Labor statistics have been notoriously dire since the economic collapse of 2008. In April 2011,
however, Labor Secretary Hilda L. Solis actually had some good news to report. She said the four-month
The situation could be even worse for young black men. The jobless rate for black male teens
shot up to more than 40% in March, preventing many from so much as getting a foot in the door let alone
a career off the ground. Older workers have had it rough as well. Of those aged 55 to 64 who lost their
jobs between 2007 and 2009, 21% were out of the workforce entirely by January 2010. All this led to a
0.7% shrinking of the male workforce since unemployment hit its peak in October 2009. One silver lining
may exist in the fact that the percentage of employed males has rebounded more than women since the
employment trough. But since male employment fell off so much to begin with, it’s little more than an
empty consolation.iv
lecture link 12-8
RECESSION INCREASES WORKPLACE SUICIDES
In May 2010 many Americans were shocked to learn about a wave of suicides at a Chinese facto-
ry that produces iPhones and iPods. However, workplace-related tragedies are being reported in ever-