Chapter Vocabulary
These terms are defined in the “Extended Chapter Outline” section.
Checkoff Provision
Closed Shop
Union Shop
Agency Shop
Maintenance of Membership
Right-to-Work Laws
Taft-Hartley Act, 1947
Associate Union Membership
Corporate Campaigns
Distributive Bargaining
Integrative Bargaining
Attitudinal Structuring
Intraorganizational Bargaining
Mediation
Fact Finder
Arbitration
Duty of Fair Representation
Discussion Questions
1. Why do employees join unions?
Employees join unions because of dissatisfaction with wages, benefits, working
2. What has been the trend in union membership in the United States, and what are the
underlying reasons for the trend?
Since 1950, union membership has consistently declined as a percentage of employment
3. What are the consequences for management and owners of having a union represent
employees?
Various consequences may occur depending on the quality of the union-management
4. What are the general provisions of the National Labor Relations Act, and how does it affect
labor-management interactions?
The NLRA provides a detailed list of individuals’ rights regarding organizing a union,
The NLRA encouraged unionization in order to provide employees with a balance of
5. What are the features of traditional and nontraditional labor relations? What are the potential
advantages of the “new” nontraditional approaches to labor relations?
Traditional labor relations can be characterized as adversarial in nature. Negotiations are
generally win-lose, and grievances tend to be settled at the third and fourth levels of the
6. How does the U.S. industrial and labor relations systems compare with systems in other
countries such as those in Western Europe?
The U.S. industrial relations system has a very low relative union density rate. The union
Self-Assessment Exercise: Would you join a union?
1.1
1.2
Exercising Strategy:
Boeing’s Labour Problems: Moving Factories to Flee Unions
Boeing decided a few years ago to build its 787 Dreamliner not in Washington State, but in
South Carolina, which is a “right to work” state. This means that it is illegal for companies and
unions in that state to sign a contract in which anyone who works at the company has to join the
union.
Questions
1. In a capitalist society and in a competitive global market, a company should be able to choose
where it locates its production. Do you agree? Why or why not?
Student responses may vary.
Arguments against: As the author of this essay observed: “if America had labor laws that
were uniform from state to state like any other normal economic power, rather than a race
Arguments in favor: Since state laws determine “right to work,” if there are right to work
2. Does Boeing have a legitimate concern regarding the effect of strikes at its Washington
operations on its ability to compete? What effect do strikes have on company profits?
Student responses could vary, with some students indicating that it if the company is operating
fairly, in good faith, and treating workers well, it should not be concerned about the possibility of
3. Should Boeing simply do a better job of managing labor relations with its union? If you say yes,
how should it go about doing a better job? If you say no, explain why you do not think that it will
be effective.
Yes: Boeing could do a better job of managing labor relations because it has had worker
strikes at its plants in Seattle in recent years. Additionally, Boeing took the path of least
No: Boeing does not owe a union anything other than to bargain in good faith when there
4. Should all U.S. states have the same labor laws? Is it accurate to say that in most other countries,
laws are the same throughout the country?
Student responses can certainly vary in response to this question, depending on the extent
to which they feel that states have rights to self-determine their position on unionizing.
As has been discussed in prior chapters in this text, the southern states of the United
Managing People:
Twinkies, HoHos, and Ding Dongs: No Treat for Labor Unions
This case overviews the story of Hostess, the former producer of snack the cakes known as
Twinkies, and the new owner of the brand, Metropoulos & Co. and Apollo Global. Hostess went
bankrupt, in part, due to a nationwide strike by one of its unions. The new owners will be
re-opening bakeries, but with non-union employees.
Questions
1. Why did Hostess Brands Inc. go into bankruptcy?
2. Did unions act in the best interests of the workers they represented? Did the two unions involved
follow the same strategy?
This is an opinion question and will likely garner passionate responses from students. In this
court.
3. Will the new company, Hostess Brands LLC, perform better? Why or why not?
From what seems to be indicated in the case, the new company will hire non-union
HR in Small Business:
Republic Gets Serious
This vignette tells the story of the failed Republic Windows and Doors company – which went
bankrupt amidst several questionably unethical moves and decisions. The company was
purchased by Kevin Surace, and chief executive of Serious Materials, a maker of eco-friendly
building products, including energy-efficient windows. Before making an offer to the bank for
the company, Surace approached the leaders of the union to ensure he would have a trained and
motivated workforce.
Questions
1. Richard Gillman attempted to stay in business by transferring work to a nonunion facility, and
Kevin Surace plans to make the operation profitable as a union shop. Do you think the decision
to rely on union or nonunion labor spells the difference between the success and failure of this
enterprise? Why or why not?
Student responses may vary, but in this case, it appears clear that the problems faced by
2. How (if at all) do you think Kevin Surace’s initial approach to the union when acquiring the
company will influence the business success of the window factory?
Again this is a speculator question so answers will vary. However, it appears that by
3. Imagine that Serious Materials has hired you as an HR consultant for the Chicago window
factory. Suggest how the company can build on its initial goodwill with workers to create
positive labor relations and a highly motivated workforce for the long run.
Students’ responses will be creative here. One potential direction the consultant might