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CHAPTER 1
Union-Management Relationships in Perspective
Outline
I. Phases in the Labor Relations Process
a. The labor relations process includes the following three phases:
i. Recognition of the legitimate rights and responsibilities of union and
management representatives
ii. Negotiation of the labor agreement, including appropriate strategies, tactics, and
impasse-resolution techniques
iii. Administration of the negotiated labor agreement—applying and enforcing the
terms of the agreement on a daily basis
b. Characteristics of the labor relations process
i. The negotiation and administration of work rules vary considerably across
public- and private- sector organizations
ii. Are cumulative with each phase depending on the previous phase
iii. Are subject to qualitative variations
II. Elements in the Labor Relations Process (Exhibit 1.1 indicates these elements)
a. Focal point of labor relations: work rules (examples of rules are given in Exhibit 1.2)
i. Pertain to compensation as well as employees' and employers' job rights and
obligations (e.g., "justice and dignity," clauses and rules requiring employees to
work overtime)
ii. Vary according to their applicability to many occupations and the extent to which
they are specific
iii. Reflect the dynamic nature of labor relations as work rule existence and/or
consent charges over time (The Acquired Immune Deficiency Syndrome or
AIDS, no smoking, and electronic monitoring of employee performance, for
example)
b. Key participants in the labor relations process
i. Management officials and consultants
ii. Union officials
iii. Employees who have dual loyalties to both the union and the company
iv. The government—National Labor Relations Board (NLRB), laws
v. Third party neutrals: mediators and arbitrators
c. Three basic assumptions underlying U.S. labor relations
i. The adoption and support of a free enterprise (capitalist) economic system in the
United States creates an inherent conflict of interest between employers (owners)
and employees. Both employees and employers seek to advance their own self-
interests
ii. Employees in a free and democratic society have a right to independently pursue
their employment interests using lawful means
iii. Collective bargaining provides a process for meaningful employee participation
through independently chosen representatives in the determination of work rules
d. Basic characteristics of the private-sector U.S. labor relations system (Exhibit 1.3):
• A bilateral process (union and management) governed by a framework of labor
laws
• A highly decentralized and localized bargaining structure
• Recognition of key legal principles of majority rule and exclusive bargaining
representation
• Permits use of economic pressure (e.g., strike, lockout, picketing, and boycott)
• Encourages use of final and binding arbitration
• Significant employer opposition to employee efforts to organize and bargain
collectively
e. Constraints or influences affecting participants' negotiation and administration of work
rules
i. State of the economy: national, international, and firm-specific indicators. Impact
of discouraged workers who have given up looking for a job
ii. Labor market (skills, wage levels, supply and demand)
iii. Product or service market (where the company either sells its products/services
or purchases key elements for creating its products/services)
iv. Financial market
v. Technology (equipment, pace and scheduling of work, characteristics of the work
environment, tasks to be performed, and information exchange)
vi. International forces—employee reservists in Iraq, free-trade, NAFTA,
globalization
vii. Public opinion (influential individuals/organizations within the community
and/or attitudes/traditions held by community residents), negative union image,
union support for social causes
f. Union membership (Exhibit 1.4)
i. Steady decline in total membership
ii. Lower union density (union as a proportion of total labor force)
iii. Causes:
1. Structural changes in the labor force
a. Employment shift from manufacturing to service industries
b. Demographic shifts: female, older, diverse, part-time workforce
2. Organizational practices to avoid unionization
3. Economic and political climate: Employment laws reduce demand for
unions
Discussion Questions
1. Exhibit 1.1 illustrates the focal point of the labor relations process and many variables that
affect the process. Select an academic discipline such as political science, economics, or
sociology, and indicate three specific ways the discipline could add insights into the labor
relations process.
2. Think about a job you have performed and discuss some of the external variables (see the
outer circle of Exhibit 1.1) that influenced the work rules required on that job.
3. The text outlines three basic assumptions underlying the labor relations process in the United
States. To what extent do you agree or disagree with these assumptions? Does your response
differ depending on whether you think about the question from the perspective of an
employer or an employee?
4. Discuss your opinion regarding whether unions are still relevant and necessary in today’s
work environment. What other means might be used to ensure ‘‘employee voice’’ in the
workplace?
5. Can an individual be both pro-union and pro-employer, or does being pro-union mean one
has to be anti-employer? Can an individual be anti-union and still legitimately claim to
support pro-employee interests?
Exploring the Web
Labor Relations from Several Points of View
1. Public opinion polls: Gallup Organization, Harris Poll
2. Reports from labor and management web sites: USW agreement 2006, Goodyear company
web site
3. Newspapers: Library of Congress online newspaper web page
Suggested Readings and Term Paper Topics
1. Since the mid-1970s researchers have shown a growing interest in procedural justice
and distributive justice. What are the main findings from this line of research? What
are the implications for company policies? What use would a union have for these
findings? What are the implications for dispute mediation and arbitration?
Possible references:
Conlon, D. E., & Ross, W. H., Jr. (1992). Influence of movement toward agreement and third party
intervention on negotiator fairness judgments. International Journal of Conflict Management, 3, 207-221.
2. Is alienation a problem at work? Do unions reduce alienation?
Possible references:
Aronowitz, S. (1973). False promises: The shaping of American working class consciousness. NY:
3. What are the implications of new types of information technology for organized labor?
Should labor unions embrace the use of new information technology?
Garson, B. (1988). The electronic sweatshop: How computers are transforming the office of the future into
the factory of the past. NY: Simon & Schuster.
4. Analyze the influence of religion on business managers and upon the labor movement.
How much influence should there be? Support your position.
Possible references:
Colson, C. (September 16, 1991). Comfortably numb at Harvard Business School. Christianity Today, 35,
5. How are American unions portrayed in films (e.g. "The Molly McGuires," "Grapes of
Wrath," "Norma Rae," "Reds," "I'm All Right, Jack," "The Garment Jungle",
"Hoffa," etc.)? How are unions portrayed in television movies (e.g., "Blood Feud") and
T.V. entertainment programs? (NOT news broadcasts). Based on what you have
learned in this course, do the visual media portray labor management relations
accurately? Support your position with quotes from the various programs and films
you watched as well as your reading of scholarly works.
Possible references:
6. What does the field of accounting have to offer to the study of labor-management
relations?
Possible references:
7. Have unions strengthened or weakened the Protestant Work Ethic? Support your
position.
Possible references:
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Buchholz, R. A. (1978). An empirical study of contemporary beliefs about work in American society.
Journal of Applied Psychology, 63, 219-227.
Fantasia, R. and Voss, K. (2004). Hard work: remaking the American labor movement. Berkeley:
University of California Press.
Kaufman, S. B. (February, 1981). Samuel Gompers vs. Horatio Alger: Defining the work ethic. The AFL-
CIO American Federationist, 88, 7-12.
Furnham, A. (1990). The protestant work ethic: The psychology of work-related beliefs and behaviors.
London: Routledge.
8. How can unions help improve an "organization's culture”? How can they make it
"worse"?
Possible references:
9. What has the field of sociology contributed to our understanding of industrial
relations?
Possible references:
10. Some people have argued that unions are "unnecessary." Are they? If unions are
unnecessary, then who will insure that workers' rights and interests are considered?
How? If unions are necessary, then why are the alternatives to unions inadequate?
Possible references:
Moberg, D (2003). Labor Fights for Rights. The Nation, 277, 7, 24, 26-8.
11. The strategic management literature is full of articles dealing with the formation of
"Strategic Alliances." What can we learn about bargaining and negotiation from this
literature? What can the strategic management literature learn from the literature on
bargaining and negotiation?
Possible references:
Gray, B., & Yan, A. (1992). A negotiations model of joint venture formation, structure, and performance:
12. What is a "psychological contract”? Why is this concept important for an
understanding of the future of labor-management relations?
Possible references:
13. Agree or disagree: "Unions are poised to make a dramatic resurgence in the United
States."
Possible references:
Cobble, D. S. (August, 1997). The next unionism: Structural innovations for a revitalized labor movement.
14. What does the future hold for the labor movement?
Possible references:
Fantasia, R. and Voss, K. (2004). Hard work : remaking the American labor movement. Berkeley:
15. Analyze the relationship between labor unions and the Roman Catholic Church, either
in the present day or historically.
Possible references:
16. How does having a labor union change an organization's culture?
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Gabriel, Y. (2000). Storytelling in organizations: Facts, fictions, and fantasies. Oxford, UK: Oxford
University Press.
Jacoby, S. M. (2004). Employing bureaucracy : Managers, unions, and the transformation of work in the
20th century. Mahwah, N.J. : Lawrence Erlbaum.
Peterson, M F Ashkanasy, N M., & Wilderom, C. (2000). Handbook of organizational culture and climate.
London: Sage.
Schein, E. H (1999) The corporate culture survival guide: Sense and nonsense about cultural change. San
Francisco, CA: Jossey-Bass.
17. Some writers complain that most labor unions in the U.S. and in Europe are in the
grips of the radical left. Others complain that most unions are actually quite
conservative. Which position is correct? Support your position.
Possible references:
18. Unions have declined as a percentage of the workforce in the private sector. With this
decline, have career and workplace dissatisfaction and alienation increased? If so, why
is this so? If not, why not? Support your position.
Possible references:
19. Is U.S. manufacturing in decline? If so, what can be done by managers and union
leaders to reverse the decline? If not, then what can unions, managers, and the
government do to maintain and increase the U.S. economic growth and industrial
status?
Possible references:
20. Many employers today are testing for drugs. How should unions respond to this trend?
Write a report to the AFL-CIO entitled, "Drug Testing: Recommended Union Policies
and Collective Bargaining Objectives." Be sure to support your recommendations.
Possible references:
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Abbey, A., and Redel, C. (April, 1991). Drug testing in the workplace: Public and
private sector employers and the courts. Labor Law Journal, 42, 239-246.
DeCresce, R. P., Lifshitz, M. S., Mazura, A. C, and Tilson, J. E.
(1989). Drug testing in the workplace. Washington, D.C.: BNA Books.
Petersen, D. J. and Massengill, D. (March, 1991). Employer response to the Drug-Free Workplace Act of
1988: A preliminary look. Labor Law Journal, 42, 144-151.
Persson, A. and Hansson, S.O. (2003). Privacy at work ethical criteria. Journal of Business Ethics 42, 1,
59-70.
21. Imagine that a journal editor called you and said, "I want you to critique a 1992 book
written by two labor leaders. It is called, Negotiating the Future by Barry and Irving
Bluestone (NY: Basic Books). Don't just summarize and agree with their thoughts--
report on their shortcomings, oversights, errors, biases, and/or 'blind spots' also. Be
sure to support your positions."
Possible references:
22. We see a lot of discussion about the impact of various environmental legislation on
business. But how do U.S. environmental laws impact organized labor? Overall, is the
impact positive or negative? What are current environmental proposals? Should labor
support or oppose these new proposals? Support your position.
Possible references:
Additional Information on How This Case Was Settled
CASE STUDY 1-1 Was “a Troublemaker” Laid off for Sharing
Wage Information? Or for Business Reasons?
The Administrative Law Judge and the three-member panel of the National Labor Relations
Board (NLRB) agreed that the American Restoration Contractors (ARC) violated federal labor
law when managers forbade Potts from discussing wages with his co-workers. The NLRB has
long held that employees have the right to discuss wages among themselves as such discussion is
a part of “concerted action” and “mutual aid and protection.” It may be the precursor of union
formation and/or collective bargaining. Even if no mention is made of forming a union, it is still
protected activity.
The Administrative Law Judge and the three-member panel of the NLRB agreed that ARC did
not violate the law when it released Mr. Potts. They said that the General Counsel did not prove
that ARC was retaliating against Mr. Potts. Instead, the judge noted that he had been given
several pay raises and ARC kept him on the payroll until near the end of the restoration project,
even though management was aware of his activities. Thus, it was hard to believe that union
animus (anti-union animosity) motivated his layoff. Indeed, it was more likely that he would
have been laid off on that date because the job was ending. His attempts to get his co-workers to
complain about their wages played no part in when he was laid off. The failure of ARC to re-hire
him was based on business conditions (i.e., a failure to win an anticipated job) rather than Mr.
Potts wage complaints.
The NLRB ordered the company to post a notice stating:
“The National Labor Relations Board has found that we violated Federal labor law and has
ordered us to post and obey this notice.”
FEDERAL LAW GIVES YOU THE RIGHT TO
Form, join, or assist a union.
Choose representatives to bargain with us on your behalf.
Act together with other employees for your benefit and protection.
Case 08-CA-090945, 360 NLRB No. 29, January 31, 2014. Available at:
