Chapter 12 – Dealing with Employee–Management Issues and Relationships
1
chapter
=
Dealing with Union and
Employee–Management
Issues
what’s new in this edition 12.3
brief chapter outline and learning objectives 12.5
lecture outline and lecture notes 12.7
PowerPoint slide notes 12.47
lecture enhancers 12.66
lecture enhancer 12–1: THE COMPLICATED LEGACY OF HENRY FORD 12.66
lecture enhancer 12–2: EMPLOYEES STAND BY THEIR CEO AT MARKET BASKET 12.67
lecture enhancer 12–3: ADDITIONAL LABOR–MANAGEMENT TACTICS 12.68
lecture enhancer 12-4: UNIONS TURN TO THE SERVICE INDUSTRY FOR GROWTH 12.69
lecture enhancer 12-5: PUTTING PEOPLE FIRST AT PUBLIX 12.70
lecture enhancer 12–6: REVAMPING EXECUTIVE PAY 12.70
lecture enhancer 12-7: FRENCH LAW FORCES BOSSES TO RESPECT FREE TIME 12.73
lecture enhancer 12-8: THE MALE EMPLOYMENT DROUGHT 12.73
12
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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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 12.75
critical thinking exercise 12–3: EXECUTIVE PAY WATCH 12.77
bonus cases 12.78
bonus case 12–1: DO RIGHT-TO-WORK LAWS HELP STATES? 12.78
bonus case 12–2: PENSION PLANS UNDER ATTACK 12.80
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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what’s new in
this edition
additions to the 11th edition:
• Getting to Know DeMaurice Smith
• Name That Company: Whole Foods
• Adapting to Change: College Athletes: What Are They Worth?
• Video Case: Screen Actors Guild
revisions to the 11th edition:
• Spotlight on Small Business: The Factory Blaze That Fired Up a Movement
• Making Ethical Decisions: To Cross or Not to Cross?
• Statistical data and examples throughout the chapter were updated to reflect current information.
deletions from the 10th edition:
• Getting to Know David Stern
• Name That Company: Bright Horizons
• Legal Briefcase
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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Chapter 12 – Dealing with Employee–Management Issues and Relationships
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brief chapter outline
and learning objectives
CHAPTER 12
DEALING WITH UNION AND EMPLOYEE–MANAGEMENT IS-
SUES
Getting to Know DEMAURICE SMITH of THE NFL PLAYERS ASSO-
CIATION
I. EMPLOYEE–MANAGEMENT ISSUES
learning objective 1
Trace the history of organized labor in the United States.
II. LABOR UNIONS YESTERDAY AND TODAY
A. The History of Organized Labor
B. Public Sector Union Membership
learning objective 2
Discuss the major legislation affecting labor unions.
III. LABOR LEGISLATION AND COLLECTIVE BARGAINING
A. Union Organizing Campaigns
learning objective 3
Outline the objectives of labor unions.
B. Objectives of Organized Labor over Time
C. Resolving Labor–Management Disagreements
D. Mediation and Arbitration
learning objective 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
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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learning objective 5
Assess some of today’s controversial employee–management issues,
such as executive compensation, pay equity, child care and elder care,
drug testing, and violence in the workplace.
V. CONTROVERSIAL EMPLOYEE–MANAGEMENT ISSUES
A. Executive Compensation
B. Pay Equity
C. Sexual Harassment
D. Child Care
E. Elder Care
F. Drug Testing
G. Violence in the Workplace
VI. SUMMARY
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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Getting to Know DEMAURICE SMITH of the NFL PLAYERS
ASSOCIATION
Experienced trial attorney DeMaurice Smith faced the challenge of his career when
he faced off with NFL owners during the 2011 players lockout.
I. EMPLOYEE–MANAGEMENT ISSUES
A. The relationship of employees and their managers
has always been complex.
B. A UNION is an employee organization whose main
goal is representing its members in employee–
management negotiation of job-related issues.
1. PUBLIC SECTOR UNIONS represent govern-
ment employees like teachers, firefighters, and
police.
2. Workers originally formed unions to protect them-
selves from intolerable working conditions and
unfair treatment.
3. Labor unions are largely responsible for minimum
wage laws, child-labor laws, and other significant
worker benefits.
4. However, unions have failed to regain their previ-
ous power, and membership declined.
The late management consultant Peter Drucker suggested that CEOs should not earn more
than 20 times the salary of the company’s lowest paid employee. Most firms ignore his sugges-
tion but our company executive’s pay is capped at 19 times the average employee’s salary.
Still, we are one of the fastest growing companies in the United States. Name that company.
(Students should read the chapter before guessing the name: Whole Foods.)
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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PPT 12-1
Chapter Title
PPT 12-2
Learning Objectives
PPT 12-3
Learning Objectives
PPT 12-4
DeMaurice Smith
PPT 12-5
Name That Company
(See complete PowerPoint slide notes on page 12.47.)
PPT 12-6
Organized Labor
PPT 12-7
Public Sector Labor Unions
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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5. REASONS FOR UNION DECLINE:
a. Some suggest that global competition, the
shift to a service economy, and changes in
management philosophy have caused the
decline.
b. The decline may also be because objectives
have been achieved.
learning objective 1
Trace the history of organized labor in the United States.
II. LABOR UNIONS YESTERDAY AND TODAY
A. Your opinion about unions usually depends upon
which side of the management fence you are on.
B. Most historians generally do agree on the reason
unions were started in the first place.
1. The INDUSTRIAL REVOLUTION moved work-
ers out of the field and into the factories.
2. Workers learned that STRENGTH THROUGH
UNITY (unions) could lead to improved job con-
ditions, better wages, and job security.
3. But some argue that for organized labor the real
issue of protecting workers has become sec-
ondary.
4. Critics also argue that the current legal system
and management philosophy reduce the risk of
unsafe or oppressive conditions.
C. THE HISTORY OF ORGANIZED LABOR
1. As early as 1792, CORDWAINERS (shoemak-
ers) met to discuss labor issues in Philadelphia.
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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lecture enhancer 12-1
THE COMPLICATED LEGACY OF
HENRY FORD
Henry Ford founded the Ford Motor Company in 1903, pro-
ducing an inexpensive, all-purpose car, the model T. Through-
out its history the company’s dealings with the union were
complex and contradictory. (See the complete lecture enhanc-
er on page 12.66 of this manual.)
PPT 12-8
Goals of Organized Labor
critical thinking
exercise 12-1
ARE UNIONS GOOD OR BAD FOR
BUSINESS?
This exercise asks the student to consider unions from both the
manager’s and the union member’s perspective. (See the com-
plete exercise on page 12.73 of this manual.)
PPT 12-9
History of Organized Labor
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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a. The cordwainers were a CRAFT UNION,
that is, an organization of skilled workers in
a particular craft or trade.
b. A craft union usually met to achieve a specif-
ic goal and then disbanded.
2. The Industrial Revolution changed the economic
structure of the U.S.
a. With the Industrial Revolution intensified, la-
bor problems were NO LONGER SHORT
TERM.
b. Workers who failed to produce lost their
jobs.
c. The average workweek in 1900 was 60
hours.
d. Wages were low, child labor existed, and
unemployment benefits were nonexistent.
e. There was a need for an organization that
would attack LONG-TERM PROBLEMS
such as child labor and subsistence wages.
3. The first national labor organization was the
KNIGHTS OF LABOR formed by URIAH SMITH
STEPHENS in 1869.
a. It included employers as well as workers,
and promoted social, labor, and economic
causes.
b. After they were blamed for the Haymarket
Square bombing in 1886, the Knights of La-
bor fell from prominence.
4. The AMERICAN FEDERATION OF LABOR
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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SPOTLIGHT ON
small
business
PPT 12-10
The Factory
Blaze That Fired
Up a Movement
PPT 12-11
Emergence of Labor Organizations
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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(AFL) was formed in 1886 under the leadership
of SAMUEL GOMPERS.
a. The AMERICAN FEDERATION OF LABOR
(AFL), an organization of MANY INDIVIDU-
AL CRAFT UNIONS, championed funda-
mental labor issues.
b. An unauthorized committee in the AFL be-
gan to organize workers in INDUSTRIAL
UNIONS, labor organizations of unskilled
and semiskilled workers in mass-production
industries such as automobiles and mining.
5. When the AFL rejected these unions, JOHN
LEWIS, president of the UNITED MINE WORK-
ERS UNION, formed a new, rival organization.
a. The CONGRESS OF INDUSTRIAL OR-
GANIZATIONS (CIO), a union organization
of unskilled workers, broke off from the AFL
in 1935 and rejoined it in 1955.
b. Membership in the CIO soon rivaled that of
the AFL.
c. The AFL and CIO struggled for power in the
labor movement until the TWO ORGANIZA-
TIONS MERGED in 1955 under the leader-
ship of GEORGE MEANY.
d. Recently, the AFL-CIO’s influence has
weakened but it’s trying to regain strength.
6. The AFL-CIO maintains affiliations with 56 na-
tional and international labor unions and has
about 12.5 million members.
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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PPT 12-12
Industrial Unions
Chapter 12 – Dealing with Employee–Management Issues and Relationships
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D. PUBLIC SECTOR UNION MEMBERSHIP
1. For the first time, 7.2 million of the 14.5 million
union members work in the government.
2. Unfortunately, huge state and local revenue
losses have put pressure on governments to cut
wages and benefits.
learning objective 2
Discuss the major legislation affecting labor unions.
III. LABOR LEGISLATION AND COLLECTIVE
BARGAINING
A. The growth and influence of organized labor in the
U.S. has depended on two major factors: the LAW
and PUBLIC OPINION.
1. The NORRIS-LAGUARDIA ACT paved the way
for union growth.
a. It prohibited employees from using contracts
that forbid union activities.
b. A YELLOW-DOG CONTRACT is a type of
contract that requires employees to agree as
a condition of employment not to join a un-
ion; prohibited by the Norris-LaGuardia Act.
2. The NATIONAL LABOR RELATIONS ACT (or
WAGNER ACT) provided legal justification for
union activities.
a. COLLECTIVE BARGAINING is the process
whereby union and management represent-
atives form a labor–management agree-
ment, or contract, for workers.
b. The Wagner Act expanded labor’s right to