978-1305576209 Chapter 1 Solution Manual

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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:

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?

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:

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: