Chapter 14: Understanding Labor Relations and Collective Bargaining
Reviewing Important Concepts
1. What is a union and why do they exist? (LO 1, 2)
A union is an organization of workers, acting collectively, seeking to promote and protect
its mutual interests through collective bargaining. Individuals who join unions usually do
so for the following reasons:
2. Explain the three pieces of legislation that have been most important in defining the
rights of management and unions. (LO 2, 3)
The three laws are the Wagner (National Labor Relations) Act of 1935; the Taft-Hartley
(Labor-Management Relations) Act of 1947; and the Landrum-Griffin (Labor and
Management Reporting and Disclosure) Act of 1959. These three laws represent the most
3. What is the process for establishing a union as the legal collective bargaining
representative for employees? (LO 4)
The organizing effort may be started by an employee request or union organizing drive.
At least 30 percent of employees who would be represented must sign authorization cards
4. Describe the collective-bargaining process and how it differs for private-sector and
public-sector employees. (LO 5, 7)
Collective bargaining typically refers to the negotiation, administration, and interpretation
of a written agreement between two parties that covers a specific period of time.
The steps include preparing to negotiate, negotiating at the bargaining table, union
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Chapter 14: Understanding Labor Relations and Collective Bargaining
5. Summarize the ways unions differ globally. (LO 8)
Differences include interpretation of collective bargaining, the amount of government
Evaluating Alternatives
6. In response to state budget problems, a bill has been introduced in your state
legislature that eliminates a number of public-sector union activities, including the
dues check-off and maintenance-of-membership clauses with the intent of reducing
union membership and influence. Your coworker Jack explains that he thinks it’s
the end of unions in your state. “These actions will totally cripple public employee
unions. It’s going to be really tough to keep members.” Audrey, another coworker
disagrees. According to Audrey, “The dues check-off and
maintenance-of-membership clauses are just a matter of convenience. They don’t
affect the reasons employees join the union in the first place.” Evaluate their
positions. Are the actions in the bill legal? How important are dues check-off and
maintenance-of-membership clauses to union membership? Who do you think is
most correct and why? (LO 1, 2, 7)
Jack’s position: These actions strengthen the right-to-work position in your state, which
reduces union influence and membership. It’s hard for unions to collect dues without the
payroll deduction benefits of “dues check-off”. Losing “maintenance of membership”
Audrey’s position: Although those actions do make it more difficult for unions to keep
7. “Unions have become so weak, and their public image is so bad, that you don’t need
to worry about them showing up and demanding to represent your employees. Let
them go ahead and try to distribute authorization cards. If you treat your employees
well, pay them a fair wage and make sure they have a safe work environment, there
is no way they’ll want to pay a union to represent them.” How much truth is there in
this statement? Do you agree or disagree? Explain your position. (LO 1, 2, 4)
Many employers have been successful in resisting union efforts by having fair pay and
safe work environment, but other factors lead to employee interest in unions such as
Research and Communication Skills
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Chapter 14: Understanding Labor Relations and Collective Bargaining
These activities require students to research a topic and report the findings to the instructor or the
class. They can be assigned to either individuals or groups and are designed to develop critical
Activity Summaries
8. Students “fact check” an online video that supports or discourages union membership.
9. What is the status of “right to work” laws in your state and nationally? Students find out
Making a Difference: Service Learning Projects
Overview: Service Learning Projects provide students with opportunities to develop and
demonstrate HR skills and build a professional network that will assist in getting a job in HR.
The activities that relate to this chapter on Labor Relations encourages students to contact unions
or union members (including local schools) and volunteer assistance of some kind. A sample
assignment with requirements and grading materials is available at the front of the Instructor’s
Manual and as a download from the text website.
Case Application 14 – A: Manager’s Concerns Spiral as Video Goes Viral
Exactitude Manufacturing implemented a new compensation system a year ago and it hasn’t
been very well received by their employees. The employees are understandably frustrated and
have taken to social media to express their frustration in creative ways. When an employee music
video goes viral and is featured on a local news show, managers worry a union may be in the
works and have several questionable suggestions for stopping it.
Questions:
1. Evaluate the different concerns of Anthony, Bert, Carla, and Quang from legal and
ethical perspectives. Which actions are problematic and why? (LO 1, 2, 3, 4)
Anthony’s concerns of going back to the old pay system would probably result in workers
who are concerned about seniority being rewarded, very happy. However, the employees
Bert’s concern about the making of the video are just allegations and without actual proof
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Chapter 14: Understanding Labor Relations and Collective Bargaining
the video) could make the argument that other employees have used the work time to
send personal emails and/or make personal phone calls and that this (making the video)
There are two very serious problems with Carla’s recommendations. First, it is illegal for
Finally, Quang’s point that Exactitude will close the plant and move the operations to
2. What are the steps employees need to take if they wish to certify a union to
represent them? (LO 4)
The union must secure signed authorization cards from at least 30% of the employees it
wishes to represent.
3. Suggest ways that Exactitude could establish a situation similar to the one Tyler
described if a union is certified. (LO 1)
Exactitude should work with the union representatives to establish a working relationship
that would be beneficial to both parties. As the “employees’ representative” the union
would be concerned with the new pay system, possibly other working conditions and
4. Research: Find examples of ways unions use social media to recruit membership.
What social media sites are used and how effective are the union messages?
Pretty much any union has a thorough array of social media accounts. AFL-CIO,
Case Application 14-B: Why the Easter Bunny Got Stuck in San Francisco
A lengthy labor dispute between West Coast dockworkers and the shipping companies created
problems when a work slow-down created a backlog of merchandise and produce waiting to be
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Chapter 14: Understanding Labor Relations and Collective Bargaining
shipped and dozens of ships floating off the west coast waiting to be unloaded. The President
1. How might labor disputes change if the Taft–Hartley Act is changed to allow the
President to intervene in labor disputes that have not resulted in lockouts or strikes?
What criteria should determine whether the President or other governing group can
take over labor negotiations? (LO 2, 3, 7)
Any action to weaken the rights of unions would certainly undermine their power and
reduce their influence.
2. Examine the “unfair labor practices” explained in the chapter. Discuss whether
slowdowns should qualify as unfair labor practices like wildcat strikes. (LO 2, 6, 7)
Slow-downs seem qualify as refusing to bargain collectively with representatives chosen
3. Research: Look for other examples of labor disputes that affected the local, national,
or global economy. Explain the situations, effects, and how they were resolved. (LO
1, 2, 3, 6, 7, 8)
Although labor disputes are less frequent in the U.S., they still exist. Students will also
Online Case Application 14 – A: TEAM FUN
Questions:
1. How accurate is Kenny’s description of the union organizing process? Explain where he
is right and wrong. (LO 2, 4)
2. Explain to Norton the union activities he remembers from their Texas job. (LO 6)
3. Examine the reasons employees join unions and evaluate the likelihood that TEAM FUN
employees will begin the organizing process. (LO 1)
4. Identify any unfair labor practices, past or future, mentioned in the case. (LO 2, 3, 4)
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