978-0134235455 Chapter 15 Solution Manual

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Chapter 15: Labor Relations and Collective Bargaining 15- 9

VI. The Union Movement Today and Tomorrow – union membership has gradually declined in

America from about 20% of the workforce in 1938 (when 17.8 million workers belonged to

unions), to about 11% ( just over 14 million workers) recently.

A. What Are Unions Doing About it – unions are becoming more aggressive and becoming

more proactive in coordinating their efforts including extending them abroad. Several

recent NLRB decisions have supported union efforts.

B. Cooperative Clauses – parties commit to adhere to one or more of these cooperative

themes (in descending order of frequency-of-mention in the agreements):

1. Intent to cooperate

2. A statement of commitment to cooperate

3. Committees to review mutual concerns that arise

4. Decisions on traditional issues

5. Guarantees of employment security

6. Commitments to high-performance practices

7. Decisions on strategic issues

8. Full cooperation

C. Improving Performance: HR Around the Globe

Chapter Review

Chapter Section Summaries:

15-1: The labor movement is important. About 14 million U.S. workers belong to unions –

about 11% of the total.

15-2: To understand unions and their impact, one should understand the interplay between

unions and the law.

15-3: When unions begin organizing, all managers and supervisors usually get involved, so it’s

essential to understand the mechanics of the union drive and election.

15-4: The employer and union hammer out an agreement via the collective bargaining

process.

15-5: Most managers become involved with disputes and grievances during their careers.

15-6: Membership is down but unions are still influential today, so it’s important to understand

the union movement today and tomorrow.

Discussion Questions:

15-1: Why do employees join unions? What are the advantages and disadvantages of

being a union member?

This item can be assigned as a Discussion Question in MyManagementLab. Student

Chapter 15: Labor Relations and Collective Bargaining 15- 10

15-2: Discuss four sure ways to lose an NLRB election.

The four sure ways to lose an election are listed and described in the text: 1) being asleep

at the switch; 2) appointing a committee; 3) concentrating on money and benefits; and 4)

15-3: Briefly illustrate how labor law has gone through a cycle of repression and

encouragement.

This item can be assigned as a Discussion Question in MyManagementLab. Student

15-4: Explain in detail each step in a union drive and election.

Each step is described in detail in the text: 1) initial contact involves the union

determination of the employees’ interest in organizing and forming an organizing

committee; 2) obtaining authorization cards is where the union seeks to obtain enough

signatures on authorization cards to petition the NLRB to conduct an election; 3) holding

15-5: Define impasse, mediation, and strike, and explain the techniques that are used to

overcome an impasse.

Impasse occurs when the parties are not able to move further toward settlement.

Mediation is intervention in which a neutral third party tries to assist the principals in

Individual and Group Activities:

15-6: You are the manager of a small manufacturing plant. The union contract covering

most of your employees is about to expire. Working individually or in groups,

discuss how to prepare for union contract negotiations.

You need to know what is good faith bargaining and what constitutes a violation of good

faith bargaining. Although as a supervisor you will not likely be involved in the

negotiations, you can commit violations of good faith bargaining by making a unilateral

Chapter 15: Labor Relations and Collective Bargaining 15- 11

15-7: Working individually or in groups, use Internet resources to find situations where

company management and the union reached an impasse at some point during their

negotiation process, but eventually resolved the impasse. Describe the issues on both

sides that led to the impasse. How did they move past the impasse? What were the

final outcomes?

The students should be able to find several examples in the airline industry, professional

15-8: Appendices A and B at the end of this book list the knowledge someone studying for

the HRCI (Appendix A) or SHRM (Appendix B) certification exam needs to have in

each area of human resource management (such as in Strategic Management and

Workforce Planning). In groups of several students, do four things: (1) review

Appendix A and/or B; (2) identify the material in this chapter that relates to the

Appendix A and/or B required knowledge lists; (3) write four multiple-choice exam

questions on this material that you believe would be suitable for inclusion in the

HRCI exam; and (4) if time permits, have someone from your team post your

team’s questions in front of the class, so that students in all teams can answer the

exam questions created by the other teams.

Material from this chapter that would be relevant to the HRCI test includes: history of the

American Union Movement, why workers organize, what do unions want, the AFL-CIO,

15-9: Several years ago, 8,000 Amtrak workers agreed not to disrupt service by walking

out, at least not until a court hearing was held. Amtrak had asked the courts for a

temporary restraining order, and the Transport Workers Union of America was

actually pleased to postpone its walkout. The workers were apparently not upset at

Amtrak, but at Congress for failing to provide enough funding for Amtrak. What, if

anything, can an employer do when employees threaten to go on strike, not because

of what the employer did, but what a third party—in this case, Congress—has done

or not done? What laws would prevent the union from going on strike in this case?

Employers can do several things…none of which are explained in this chapter. They can

seek an injunction from a judge, they can file suit, they can seek to meet with the union

and help them with their demands against the third party, etc. There are some laws and

Experiential Exercise: The Union–Organizing Campaign at Sam’s Cupcake Shop

Chapter 15: Labor Relations and Collective Bargaining 15- 12

Purpose: The purpose of this exercise is to give you practice in dealing with some of the

elements of a union-organizing campaign.

Required Understanding: You should be familiar with the material covered in this chapter, as

well as the following incident, “The Organizing Campaign at Sam’s Cupcake Shop.”

Incident: Sam’s Cupcake Shop sells baked goods (croissants, cupcakes, rolls, cakes, etc.) and

serves light meals such as breakfast and salads through its chain of ten small retail stores in the

borough of Manhattan in New York City. Each store is staffed with about 9 employees (plus one

manager), some of whom do the cooling and some of whom staff the counter and sell the food

items. As with Sam’s other stores, the Sam’s Cupcake Shop on First Avenue is staffed primarily

with recent (legal) immigrants to America, all of who are paid at or just above minimum wage.

It was no secret that at least one New York City agency was pressing (in 2015) for food service

owners to raise the minimum wage for food service employees to $15 per hour. Everything at

the First Avenue store seemed to be going smoothly, but that apparent tranquility ended abruptly

in July 27, 2015. That was the day that Anesha, the First Avenue store’s manager called Taylor

Brook, Sam Cupcake’s human resource manager, to tell her that they had “an employee

problem.”

The problem, Anesha said, was that she’d heard from a few employees that the Service

Employees International Union was trying to organize Sam’s Cupcake Store employees.

Taylor’s first reaction was one of caution, particularly because food service employees are

historically difficult to organize –“they don’t stay in their jobs long enough to unionize them,” to

paraphrase one union leader. Unfortunately, Anesha said she had already taken what she called

“sensible steps” to blunt the unionization effort. She had, first, explained to her employees that

if costs went up because they unionized, then “we’d probably have to close this shop.” She said

she also promised better work schedules if they “ignored” the union, and told them they were

prohibited from discussing union matters during work time. “And don’t worry” she said to

Taylor, “I’ve got a list of the employees who are pushing for the union.”

The more Anesha talked, the more concerned Taylor became, not just with the union but with the

possible consequences of Anesha’s efforts. She wondered particularly if Anesha’s actions could

cause problems down the road for Sam’s Cupcakes with the NLRB.

As it turned, she didn’t have long to wait for an answer. The following week pickets from the

union and its supporters appeared in front of the First Avenue store carrying signs decrying the

company’s “unfair labor practices.” At that point Sam came into Taylor’s office and said, “if

they think they can railroad me into giving them big raises they are wrong; I am closing that

store down.” Taylor was in a quandary as to how to reply to Sam, and in general, what she

should she.

How to Set up the Exercise/Instructions: Divide the class into groups of several students.

Assume that you are labor relations consultants retained by Taylor to identify the problems and

issues involved and to advise Taylor and Sam of the company’s right and obligations, as well as

the implications of what’s transpired so far, add finally what to do next. Each group will spend

Chapter 15: Labor Relations and Collective Bargaining 15- 13

the time allotted discussing the issues. Then, outline those issues, as well as an action plan for

Taylor and Sam. What should they do next? Can Sam really close the store down?

If time permits, a spokesperson from each group should list on the board the issues involved and

the group’s recommendations.

Student responses will vary but should use the information found in the text to explain and

defend their answers: including the Do’s and Don’ts, TIPS, and FORE.

Application Case: Negotiating with the Writers Guild of America

15-10: The producers said the WGA was not bargaining in good faith. What did they mean

by that, and do you think the evidence is sufficient to support the claim?

Bargaining in good faith means that both parties honestly communicate and negotiate to

make a reasonable effort to arrive at a fair agreement. It would be very difficult to

15-11: The WGA did eventually strike. What tactics could the producers have used to fight

back once the strike began? What tactics do you think the WGA used?

The producers could have threatened to hire writers to take the place of striking

employees. While this course of action would be very difficult given the creative nature

of this business, often the threat of hiring replacement workers helps the process move

15-12: This was a conflict between professional and creative people (the WGA) and TV and

movie producers. Do you think the conflict was therefore different in any way than

are the conflicts between, say, the Autoworkers or Teamsters unions against auto

and trucking companies? Why?

The conflict and bargaining process described in this scenario is no different than the

day-to-day negotiations between any union and management. Very often, the issues are

15-13: What role (with examples) did negotiating skills seem to play in the WGA

producers’ negotiations?

Timing played a role as well as a marathon bargaining session which tends to make each

side more flexible and come to an agreement. Also the introduction of the heads of Walt

Chapter 15: Labor Relations and Collective Bargaining 15- 14

Continuing Case: Carter Cleaning Company – The Grievance

15-14: Do you think it is important for Carter Cleaning Company to have a formal

grievance process? Why or why not?

Certainly it is important for many reasons. First, it is important from a standpoint of

justice and fair treatment. Second, the lack of justice and fair treatment is a prime

15-15: Based on what you know about the Carter Cleaning Company, outline the steps in

what you think would be the ideal grievance process for this company.

Because it is a small company, it should be simple and short. One suggestion is a two–

step process that begins with a written appeal to the store manager. The second step is to

15-16: In addition to the grievance process, can you think of anything else that Carter

Cleaning Company might do to make sure grievances and gripes like this one are

expressed and are heard by top management?

The grievance procedure is critical. Students may identify many things from the

The Hotel Paris: Improving Performance at the Hotel – The Hotel Paris’s New

Labor Relations Practices

15-17: List and briefly describe what you believe are the three most important steps Hotel

Paris management can take now to reduce the likelihood unions will organize more

of its employees.

Hotel Paris should train managers and supervisors to recognize the signs of union activity

and to deal with it. They should also develop a procedure whereby employees can air

15-18: Write a detailed two-page outline for a “What You Need to Know When the Union

Calls” manual. Lisa will distribute this manual to her company’s supervisors and

managers, telling them what they need to know about looking out for possible

unionizing activity, and how to handle actual organizing process–related

supervisory tasks.

Chapter 15: Labor Relations and Collective Bargaining 15- 15

Student responses will vary but should use the information found in the text to explain

My Management Lab

Students can find the following assisted-graded writing questions at mymanagementlab.com.

Answers to these questions are graded against rubrics in the MyLab.

15-19: Describe important tactics you would expect the union to use during the union drive and

election.

15-20: Why, would you say, workers join unions and what would you as a manager do to make it

less likely your employees would want to join a union a your workplace.

Key Terms:

Closed Shop – A form of union security in which the company can hire only union members.

This was outlawed in 1947 but still exists in some industries (such as printing).

Union Shop – A form of union security in which the company can hire nonunion people, but

they must join the union after a prescribed period of time and pay dues. (If they do not, they can

be fired.)

Agency Shop – A form of union security in which employees who do not belong to the union

must still pay union dues on the assumption that union efforts benefit all workers.

Preferential Shop – Union members get preference in hiring, but the employer can still hire

nonunion members.

Right to Work – A term used to describe state statutory or constitutional provisions banning the

requirement of union membership as a condition of employment.

Norris-LaGuardia Act of 1932 – This law marked the beginning of the era of strong

encouragement of unions and guaranteed to each employee the right to bargain collectively “free

from interference, restraint, or coercion.”

National Labor Relations (or Wagner) Act (NLRA) – This law banned certain types of unfair

labor practices and provided for secret-ballot elections and majority rule for determining whether

or not a firm’s employees want to unionize.

National Labor Relations Board (NLRB) – The agency created by the Wagner Act to

investigate unfair labor practice charges and to provide for secret-ballot elections and majority

rule in determining whether or not a firm’s employees want a union.

Chapter 15: Labor Relations and Collective Bargaining 15- 16

Taft-Hartley Act of 1947 – Also known as the Labor Management Relations Act, this law

prohibited unfair union labor practices and enumerated the rights of employees as union

members. It also enumerated the rights of employers.

National Emergency Strikes – Strikes that might “imperil the national health and safety.”

Landrum-Griffin Act of 1959 – Also known as the Labor Management Reporting and

Disclosure Act, this law is aimed at protecting union members from possible wrongdoing on the

part of their unions.

Union Salting – A union-organizing tactic by which workers who are in fact employed full-time

by a union as undercover organizers and are hired by unwitting employers.

Authorization Cards – In order to petition for a union election, the union must show that at

least 30% of employees may be interested in being unionized. Employees indicate this interest

by signing authorization cards.

Bargaining Unit – The group of employees the union will be authorized to represent.

Decertification – Legal process for employees to terminate a union’s right to represent them.

Collective Bargaining – The process through which representatives of management and the

union meet to negotiate a labor agreement.

Good Faith Bargaining – Both parties are making every reasonable effort to arrive at

agreements; proposals are being matched with counterproposals.

Voluntary (or permissible) Bargaining items – Items in collective bargaining over which

bargaining is neither illegal nor mandatory – neither party can be compelled against its wishes to

negotiate over those items.

Illegal Bargaining Items – Items in collective bargaining that are forbidden by law; for

example, the clause agreeing to hire “union members exclusively” would be illegal in a right-to–

work state.

Mandatory Bargaining – Items in collective bargaining that a party must bargain over if they

are introduced by the other party – for example, pay.

Impasse – Collective bargaining situation that occurs when the parties are not able to move

farther toward settlement, usually because one party is demanding more than the other is willing

to offer.

Mediation – Intervention in which a neutral third party tries to assist the principals in reaching

agreement.

Chapter 15: Labor Relations and Collective Bargaining 15- 17

Fact Finder – A neutral party who studies the issues in a dispute and makes a public

recommendation for a reasonable settlement.

Arbitration – The most definitive type of third-party intervention, in which the arbitrator usually

has the power to determine and dictate the settlement terms.

Interest Arbitration – Arbitration enacted when labor agreements do not yet exist or when one

or both parties are seeking to change the agreement.

Rights Arbitration – Arbitration that interprets existing contract terms, for instance, when an

employee questions the employer’s right to have taken some disciplinary action.

Strike – A withdrawal of labor.

Economic Strike – A strike that results from a failure to agree on the terms of a contract that

involve wages, benefits, and other conditions of employment.

Unfair Labor Practice Strike – A strike aimed at protesting illegal conduct by the employer.

Wildcat Strike – An unauthorized strike occurring during the term of a contract.

Sympathy Strike – A strike that takes place when one union strikes in support of another.

Picketing – Having employees carry signs announcing their concerns near the employer’s place

of business.

Corporate Campaign – An organized effort by the union that exerts pressure on the corporation

by pressuring the company’s other unions, shareholders, directors, customers, creditors, and

government agencies, often directly.

Boycott – The combined refusal by employees and other interested parties to buy or use the

employer’s products.

Inside Games – Union efforts to convince employees to impede or to disrupt production – for

example, by slowing the work pace.

Lockout – A refusal by the employer to provide opportunities to work.

Injunction – A court order compelling a party or parties either to resume or to desist from a

certain action.

Grievance Procedure – Formal process for addressing any factor involving wages, hours, or

conditions of employment that is used as a complaint against the employer.

Co-determination – An employee representation system in which workers elect their own

representatives to the supervisory (management) board of the employer and have the legal right

Chapter 15: Labor Relations and Collective Bargaining 15- 18

to a voice in setting company policies on matters such as company organization, hiring, and

performance appraisal.