978-0078029165 Appendix B Part 13

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Appendix B-241

| Appendix B – Chapter Exercises

Table 13.1.2

Example of General Manager Letter

TO: All Supervisors and Assistant Supervisors

FROM: Scott Cameron

First, with respect to what actions we cannot take. The law clearly states that an employee cannot be

disciplined or terminated for union activity. Thus, we can’t fire a worker who is active in the union

unless we can establish that his or her behavior would have led to termination prior to the union

organizing drive. Second, employees are free to talk about the union as long as it is on nonworking

If we win the election, I propose that we establish a grievance system to handle the employee

complaints and develop an employee attitude survey. We don’t want a union and we depend upon

you to create a working environment in which workers feel that they don’t need one. Please make

sure that we create a work environment in which employees do not feel threatened or intimidated

but one in which they do not feel like they need a union.

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Table 13.1.3

Alternative letters

Dear Co-Workers:

Many of you, as fellow employees of ARC, are disillusioned about your present working conditions.

Are you dissatisfied with your job because:

* You have not been given a raise in over a year?

If you are tired of not being heard, you can do something about this dissatisfaction. Unions can make

a major impact at ARC. Through union participation, each unheard individual voice will be joined

together in creating a “collective voice” that management must recognize. With unionization, we can

improve employment conditions and correct deficiencies in areas such as:

* Wages

Management will resist a union. They will try to persuade you that unions are hostile and

unnecessary at our company. They will use the argument that you will lose employee control to

national union leadership. The simple reason is that management wants total control of our

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A personal concern you may have is the cost of union dues. My question to you is, “Can you afford

not to join”? Conditions will only get worse unless we do something about them. Unions can do

something about them.

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MEMORANDUM

TO: To Supervisors and Assistant Supervisors

FROM: Scott Cameron, General Manager

Recently there has been a labor movement within ARC. The employees are dissatisfied with the

present working conditions and are organizing a union drive. As supervisors, you need to know what

legally can be done to stop the momentum, and what is illegal.

Foremost, we must communicate to the employees the costs of unionization — not only financially

movement. We cannot discriminate against any employee engaged in union activity in regard to

hiring, retention, or any employment condition. This means that we cannot terminate or coerce an

employee through scare tactics for their involvement with the union; nor can we not hire an

employee because of his or her affiliation or attitude towards unions on the job).

Offering enticements now to the employees regarding wages and benefits is illegal, but must be

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Chapter Exercise 13.2

Unions, Labor Law, and Managerial Prerogatives

Dr. Barry Axe

Objectives. After completing this exercise, students will have a better understanding of the

implications of preconceived attitudes towards union-management relations and managerial

behavior. They will also know some of the myths and truths about the effects of unions, and adopt a

more objective perspective on the subject of unions.

Description. For Part A: Individual Analysis: Before reading Chapter 13 and before class, students

should complete the questionnaire on Form 13.2.1. They should then read Chapter 13 and research

the statements in the questionnaire, such as finding research pertinent to the relationship between

unions and productivity. The summaries of research should be brought to class. Finally, students

should go to web sites on the National Labor Relations Act, such as www.dol.gov, and try to answer

Director determines that the charge lacks merit, it is dismissed. A dismissal may be appealed to the

General Counsel’s office of the NLRB. If the Regional Director finds reasonable cause to believe a

violation of the law has been committed, that office of the NLRB seeks a voluntary settlement to

remedy the alleged violations. If the settlement efforts fail, a formal complaint is issued and the case

goes to a hearing before an NLRB Judge. The judge issues a written decision that may be appealed to

pending the full review of the case by the Board. The NLRA also requires the Board to seek a

temporary federal court injunction against certain forms of union misconduct, principally involving

“secondary boycotts” and certain forms of picketing.

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Exercise 13.2, Part A. Research Related To Attitudes Toward Unions Survey

This exercise was developed by Drs. Barry Axe and H. John Bernardin.

Research indicates that general attitudes toward unions are strongly correlated with a number of

workplace behaviors. These attitudes, sometimes based on limited facts about unions and their actual

This exercise assesses attitudes toward unions in general and the extent to which these attitudes are

grounded in fact.

Learning Objectives

After completing this exercise, students should be able to:

1. Understand the implications of preconceived attitudes toward union–management relations and

managerial behavior.

2. Know some of the myths and truths about the effects of unions.

3. Adopt a more objective perspective on the subject of unions.

—————-————–————–—–——–——–——-—–

1. U.S. productivity would be much higher if it wasn’t for unions.

Research on this question is mixed (i.e., depends on the industry) but one review found that

productivity is higher in union environments. In general, research does not support the general claim

that productivity would be much “higher.” As of 2008, only 12.4% of American workers belonged to

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2. Unions protect even the most incompetent workers as long as they belong to the union.

There is little evidence to support this claim although most workers who do not work with a contract

are “at-will” and therefore more easily dismissed. For example, turnover is lower in union

environments for the same type of work. While this fact provides some indirect support for the claim,

the lower turnover rate can also be interpreted as retention of good workers and is most likely related

3. Unions interfere with management attempts to increase productivity.

In general, union members perceive management attempts to increase productivity as attempts to

reduce workers’ hours and the number of workers. It is fair to conclude that unions constrain

management attempts to increase productivity. Unions often challenge productivity-improvement

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and a “labor organization.”

Student Response (in percentages):

Strongly Agree (24)

Agree (36)

Unsure (37)

Disagree (11)

Strongly Disagree (6)

4. Unions are corrupt.

While there is some “hand-in–the-till” corruption in unions, the amount of union corruption is no

more than, and probably less than, business corruption (Freeman & Medorf). In a statement made at

hearings before the Permanent Subcommittee on Investigations of the Senate Committee on

Governmental Affairs, which was studying racketeering, former Attorney General Benjamin Civiletti

5. Unions are mainly responsible for the adversarial relationship that exists between unions and

management.

No correct answer. As in No. 3, responsibility for adversarial relationships cannot be clearly attributed

to either unions or management. A common attitude in many labor negotiations throughout the

1980’s was union accommodation but recent years have been much more volatile.

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Student Response (in percentages):

Strongly Agree (15)

Agree (23)

Unsure (35)

Disagree (15)

Strongly Disagree (10)

6. Union wages are not competitive in a global economy.

Unions cannot be blamed for wages that place U.S. companies at a competitive disadvantage (every

collective bargaining agreement is signed by two parties). There are wage and productivity measures,

published by the Bureau of Labor Statistics for many countries, which show U.S. wages relatively low

and productivity high. Also, the main competitors of the U.S. all have a higher percentage of the

Student Response (in percentages):

Strongly Agree (29)

Agree (37)

7. Union rules and regulations stifle attempts to improve the quality of our products or services.

No correct answer but there is no question that there are more rules and regulations with a union

contract. Management often cites work rules as a major problem for improvement programs. Unions

have also challenged worker involvement programs. Some NLRB rulings indicate that many of the

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Student Response (in percentages):

Strongly Agree (28)

Agree (30)

Unsure (30)

Disagree (9)

Strongly Disagree (3)

8. Unions are a big help to workers.

Union workers tend to be more satisfied with compensation compared to nonunion workers and with

working conditions within the same industry. Unionized teachers and nurses, for example, receive

higher direct and indirect compensation (benefits), more paid vacation and sick time and have more

protection from changes in policy. There is also some evidence that the union jobs are safer. Workers

Workers who belong to trade unions earn higher wages, work fewer hours, receive more training,

and have longer job tenure on average, than their non-unionized counterparts, according to a 2003

World Bank study on the effects of unions and collective bargaining in the global economy. High

unionization rates lead to lower inequality of earnings and can improve economic performance (in the

form of lower unemployment and inflation, higher productivity and speedier adjustment to shocks).

developing economies.

Student Response (in percentages):

Strongly Agree (18)

Agree (29)

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Unsure (26)

Disagree (20)

Strongly Disagree (7)

Unions are violent during strikes.

Violence in labor disputes is extremely rare (less than 1%). The incidence of strikes has been steadily

decreasing and consumes a very small percentage of total working time—one tenth of one percent.

Courts often issue injunctions limiting the number of people on picket lines and thus reducing the

probability of violence.

Strongly Disagree (8)

10. More protection is needed for replacement workers who are threatened and harassed by

striking unionists.

No correct answer. In the 1938 Mackay Radio and Telegraph Co. v. the NLRB case, the Supreme Court

ruled that “in an economic strike, strikers may be permanently replaced by newly hired employees.

11. The U.S. could be more competitive if we could get rid of unions.

As of 2008, only 12.4 percent of wage and salary U.S. workers were union members. (Go to

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http://www.bls.gov) for more recent data). The union membership rate has steadily declined from a

high of 20.1 percent in 1983, the first year for which comparable union data are available. It is difficult

International competition, measured by import share, was a significant determinant of union and

Student Response (in percentages):

Strongly Agree (19)

Agree (32)

12. Big labor has excessive political power in Washington.

While this statement was arguably true 20 years ago, unions have not been very successful in getting

major favorable legislation passed into law (as of May, 2009, the Family and Medical Leave Act was

the last major federal law although unions did support and help pass the Ledbetter Act, Obama first

legislative signing). Legislation favorable to unions is more likely under the Obama Administration and

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Board has five seats. The President appoints members to five-year terms. While all NLRB

interpretative decisions are subject to federal judicial interpretation of the NLRA, the Federal judiciary

has gotten more conservative and pro-business as well. The NLRB is likely to become more labor-

friendly during the Obama Administration.

Student Response (in percentages):

Strongly Agree (10)

13. Unions are undemocratic in their organizational structure.

Since the Landrum-Griffin Act of 1959, federal law has also mandated democratic practices within

unions. According to the results of several surveys of union members by the University of Michigan

Survey Research Center, unions are closer to the “bastions of democracy” model than to the “union

boss” model. There is a great deal of democracy, defined as access to a union’s voice-making

machinery, throughout the labor movement, particularly at the local union level.

Student Response (in percentages):

14. Union workers are less satisfied with their wages and benefits than nonunion workers.

This is false when the comparisons are within particular industries (e.g., unionized teachers are more

satisfied with compensation than non-union teachers). Union members state that they are more

Student Response (in percentages):

Strongly Agree (7)

Agree (15)

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Unsure (50)

Disagree (21)

Strongly Disagree (7)

15. Unions tend to oppose pay-for-performance systems.

Unions strongly favor pay systems based strictly on seniority, with little or no distinction made among

individual workers based on their performance. Unions strongly oppose individual pay-for-

performance systems and are more receptive to unit-based, pay-for-performance systems such as

group or unit-based systems.

Student Response (in percentages):

Strongly Agree (28)

16. Companies should be allowed to screen people based on their general attitudes toward unions.

This is attitudinal and thus has no correct answer. In 1995, the Supreme Court ruled that employers

Most (but not all) experts believe that this ruling thus protects applicants.

Student Response (in percentages):

Strongly Agree (22)

17. Union wages have outpaced nonunion wages over the last ten years.

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This statement is false due the concessions that have been made in many sectors. The Bureau of

Labor Statistics compiles data on union-nonunion wages on an annual basis. For workers in all

industries (private and public sector) the changes in median weekly earnings of union workers were

Student Response (in percentages):

Strongly Agree (20)

Agree (33)

18. Management should be allowed to hire replacement workers immediately after a strike.

The 1938 Supreme Court decision in NLRB v. Mackey Radio & Telegraph confirmed the legality of

replacing striking workers. Many employers now routinely hire permanent replacement workers. Of

course, employers argue that many companies will not survive if they cannot keep business going.

Student Response (in percentages):

Strongly Agree (20)

Strongly Disagree (6)

19. I would join a union if I thought it might help me.

The answer to this question tends to differ as a function of the respondents’ backgrounds but the

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overall trend is a more positive attitude toward unions. For example, while (overall) 21% of

respondents disagree with this statement, students with family members who belong or have

Student Response (in percentages):

Strongly Agree (20)

Agree (26)

20. In general, I feel (circle one): positive , neutral or negative …toward unions.

Based on 1999 data from Peter Hart and Associates, in response to this identical question, over two–

thirds of Americans feel positive or neutral toward unions. Negative attitudes toward unions have

21. I would vote “YES” if a union election were held in my workplace tomorrow.

Based on 1999 data from Peter Hart and Associates, in response to this identical question, a majority

of young workers ages 18-34 who don’t already have a union say they would definitely or probably

vote for one. Young workers increasingly are likely to vote for a union. Student responses have

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Not sure (55)

Probably NOT (8)

Definitely NOT (6)

22. Employees who have a union are better off than those who don’t.

Based on 1999 data from Peter Hart and Associates, in response to this identical question, a majority

of workers think that employees who have a union are better off than those who don’t. Fifty-two

I’m not sure (45)

23. It would be good for the country if more workers had union representation.

Based on 1999 data from Peter Hart and Associates, in response to this identical question, a majority

of those polled think it would be good for the country if more workers had union representation.

Fifty-two percent of respondents say an increase in union membership would be good for the nation;

only 22 percent say it would be bad.

The 2003 World Bank study entitled “Unions and Collective Bargaining: Economic Effects in a Global

Environment” concluded that union members, and other workers covered by collective agreements in

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unskilled workers and also between men and women. In some countries such as Germany, Japan,

Mexico, South Africa, and the United Kingdom, unionized women workers have a greater pay

advantage over their non-unionized counterparts than unionized men. In the United States and the

United Kingdom, unionized non-white workers tend to get a higher wage advantage than white

workers.

24. Employees are more successful in getting problems resolved with their employer when they

bring these problems up as a group rather than as individuals.

Based on 1999 data from Peter Hart and Associates, in response to this identical question, sixty-nine

percent of workers say they think employees are more successful in getting problems resolved with

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Exercise 13.2, Part B. Managerial Options and Constraints under the NLRA

This exercise was developed by Dr. John Bernardin with assistance from Dr. Barry Axe.

The National Labor Relations Act (NLRA), also known as the Wagner Act, became law during the great

depression of 1935. The NLRA formally recognized workers’ rights to organize and bargain collectively

charges; and (4) not bargaining in good faith with employee representatives. Further, the NLRA

established the National Labor Relations Board (NLRB) to enforce the Wagner Act and to conduct

representation elections. As an independent federal agency (see www.nlrb. gov), the two primary

functions of the NLRB are (1) to prevent and correct unfair labor practices (ULPs) and (2) to administer

certiﬁcation and decertiﬁcation elections to determine whether workers choose to be represented.

authorized by, other employees. The definition of concerted activity includes circumstances where

individuals initiate or prepare for group action. A “concerted activity” also exists when an employee’s

action is a “logical outgrowth” of previous group activities. Concerted activities are protected by

Section 7 when they are done “for mutual aid or protection.” And for a “self-interested economic

objective” such as improved pay, hours, safety, or workload.

2.Employer domination of unions (Section 8(a)(2)); 3. Employer discrimination against employees who

take part in union or collective activities (Section 8(a)(3)); 4. Employer retaliation for filing unfair–

labor-practice charges or cooperating with the NLRB (Section 8(a)(4)) and 5. Employer refusal to