978-1305576209 Chapter 4 Solution Manual

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CHAPTER 4

Unions and Management: Key Participants in the Labor

Relations Process

Outline

I. Goals and Strategies: Management and Unions (see Exhibit 4.1)

a. Company goals; The Company wants:

i. To survive and remain competitive

ii. To grow and prosper

iii. To achieve a favorable return on its investment

iv. To effectively use human resources

v. To attract, retain, and motivate employees

vi. To protect management’s rights to make decisions and retain flexibility

vii. To obtain commitment from the union that there will be no strike for the duration

of the agreement

b. Union goals; The Union wants:

i. The Company to survive and remain competitive as well as for the union to

survive and remain secure

ii. The Company to grow and prosper as well as the union

iii. The Company to achieve a favorable return on its investment and return “fair”

wages to employees

iv. The Company to effectively use human resources within the rules and policies of

the agreement, and to achieve job security and employment opportunities for

members

v. The Company to attract, retain, and motivate employees within the rules and

policies of the agreement

vi. To protect union and employee rights that were negotiated and included in the

labor agreement

vii. To obtain commitment from the company that there will be no lockout for the

duration of the agreement

c. Company strategic planning

i. Determined by its managerial philosophy, ethics, economic condition, force,

competition, time in the life of the company, and management capabilities

ii. Union or nonunion

iii. Company strategies (Exhibit 4.2)

d. Nonunion companies’ strategies

i. External forces affecting union-management relations: competition from abroad,

deregulation, and competition from nonunion companies

ii. Choice of remaining non-union by using union suppression, union avoidance,

and union substitution strategies without using unfair labor practices (Exhibit

4.3)

iii. Use of positive human resource management and double breasting

e. Unionized Companies’ Strategies

i. Involvement of union and management

ii. Employee representation; grievances

iv. Businesslike, codified strategy

v. Accommodation and labor-management cooperation

vi. Union contributions to company planning

vii. Employee empowerment

viii. Mixed strategy

f. Union strategic planning

i. A mission statement (Exhibit 4.4)

ii. Analysis of external environment: demographics, politics, image, industry trends

iii. Internal analysis: governance, openness, professionalism

iv. Organizational objectives: long-term and short-term

v. Strategy development: survival and growth

vi. See Exhibits 4.5 and 4.6 for differences in CWA and CTW strategic plans

II. Company Organization for Labor Relations Activities

i. In larger corporations, labor relations is usually highly centralized and policy

decisions are made at corporate level (Exhibit 4.7)

ii. In smaller companies decisions are made at plant level

iii. Organization for labor relations are at the plant level (Exhibit 4.8)

III. Union Governance and Structure

i. Power, authority, and legitimacy flow upward (Exhibit 4.9)

ii. Union governance comparable to unit of state or federal government

iii. Wide diversity of multi-level organizational relationships, functions of officers,

and degrees of control

a. The local union

i. Branch of national union

ii. Main point of contact for the individual employee

iii. Operates under national union’s constitution

iv. Organizational chart Exhibit 4.10

b. Differences between craft and industrial unions

i. Craft union members organized by craft or skill

ii. Industrial union members organized on an industry basis

ii. Upward trend toward general unions

c. Differing Scope of the Labor Agreement

i. Short labor agreements

ii. Several employers

iii. Local agreements

d. Differing skills

i. Types of skills

ii. Training

e. Differing Job Characteristics

i. Short work assignments

ii. Union hiring hall. Serves as placement office

iii. Pre-hire agreements

f. Differing Leadership Roles

i. Business agent; could accumulate power

ii. Shop stewards represent business agents

iii. International union representative; enforces national constitution

IV. Government and Operation of the Local Union

a. Participation in Meetings

i. Attendance varies when union is confronted with important business

ii. Rises when meeting location is convenient

iii. Personal invitation

iv. Use of electronic information services

v. Union leaders, departmental representatives, union stewards always attend

vi. Provide perks for attending meetings

vii. Meeting attendance required to run for office

viii. Average two hours. Reports from treasurer, project leaders, and committee

chairpersons

ix. Business of local generally accomplished

b. Functions of the meeting

i. Union’s most important governmental activity

ii. Opportunity for members to communicate with leaders

iii. Important decisions are made

V. The National or International Union

i. Occupies the “kingpin” position of influence (Exhibit 4.11)

ii. The constitution of the union guides its government

ii. The constitution restricts the power of the national union, encourage union

activity in collective bargaining and political action, and contain provisions to

protect individual rights of members

a. The Convention—supreme governing body of unions; final court for union decisions;

nomination of officers; reporting; agenda for policy formulation.

i. Use of delegate system; Delegates dependent on number of members

ii. Committee work, debates, and voting, similar to Congress

iii. Subjects covered include internal government matters, collective bargaining

problems, and resolutions for or against policies

b. Leadership and democracy—officers and executive board direct affairs of union between

conventions and Landrum-Griffin Act provisions promote democracy

c. Profile of labor leaders—most come from working-class families; fathers were hourly

employees; they have an average of 14.1 years of education

d. Administration: departments and staff serve interests of members; Presidents paid well;

members, stewards, and local officials not compensated

e. Professional staff members—appointed or politically elected, international union

representative, staff representative, business agent, or organizer; other group performs

more technical duties, includes professionals

i. Unions today use more modern human resource policies and practices

ii. In-house training provided

iii. Unions’ own staff stops from advancing

f. Services to and Control of Locals

i. Negotiation of master labor agreements, support of strike activities, arbitration,

advice and counsel on internal administration

ii. National union assists locals in collective bargaining, grievance administration,

strike activities, and internal financials; in addition, it provides counseling and

consultation for internal financial administration, such as bookkeeping, dues

collection, and purchases.

iii. National union could replace local leaders with a trustee

g. Dues, Fees, and Distribution of Funds

i. Dues check off system

ii. Portion of monthly dues for each member goes to national union

iii. Dues go to general fund, strike fund, convention fund, union publications,

educational activities, and retirement fund

h. Mergers of National Unions

Mergers occur through amalgamation (two unions joining together), or absorption (larger

union absorbing a smaller union)

i. Overlooked behavioral dimensions

ii. Members tend to evaluate mergers in practical terms

iii. Five unions with over 5 million members have dominated merging activity

i. Intermediate organizational units

i. Regional or district offices—located closer to membership so as to better serve

local unions

ii. Trade conferences—grouping of unions who have common industry interests

iii. Conference boards—organized within international unions to prepare for

negotiations with a particular company

iv. Joint councils—groups of local unions in a specific location that have common

goals, problems, etc.

j. Independent unions

i. 41 independent unions at national level and 1,500 at the local level.

k. Employee associations

i. Support new associations which provide a wide range of services to members

ii. Services include diploma equivalency classes, English classes, toll-free hotline,

courses on sexual harassment, etc.

l. Managerial and professional organizations

i. Managers, supervisors, and professional employees join organizations for their

mutual aid and insurance

ii. Use union-like tactics, such as collective action, skill certification, and political

activities

iii. Organizations do not engage in collective bargaining

VI. The American Federation of Labor-Congress of Industrial Organizations (AFL-CIO)

i. 56 national and international unions, 60,000 local unions, and about 12.7 million

members

ii. Administer about 150,000 labor agreements, over 99 percent negotiated without

strikes

iii. Principle of autonomy—each affiliate conducts its own affairs

iv. Governing body is the Executive Council, composed of the president, secretary–

treasurer, and 55 vice-presidents

v. Executive council meets at least three times a year to handle operational duties

vi. President has authority to supervise affairs of the federation and direct its staff

a. Organizational structure (Exhibit 4.12)

i. Convention, the supreme governing body, meets every two years

ii. Executive Council—composed of president, executive vice-president, secretary

treasurer, and 55 vice-presidents

iii. Standing committees on various subjects to assist member unions

iv. General Board acts on matters referred to it by Executive Council

v. 51 state federations bodies advance interests at state levels

vi. Many local central bodies advance interests at local levels

vii. Financial activities—financed through member dues ($0.75 per month per capita

tax is used for operational expenses)

viii. Internet access to 17 million members, retirees, and associate members, as well

as low-cost computers; Union Privilege Benefit Programs (Exhibit 4.13)

ix. Associate membership program

x. Partnerships with worker centers

xi. Local department councils; Union Cities program

b. Other activities of the AFL-CIO

i. Educational and informational; Website; blogs; courses in union leadership

development; speakers for educational institutions; educational films

ii. Working America program

iii. Lobby and political records publishing; get-out-the-vote campaigns

iv. Political activities through COPE (Committee on Political Education)

c. Use of information technology by unions

i. Internal communications between union officers, staff, and members, particularly

when they are geographically dispersed

ii. External communications, such as to inform the public about union issues

potentially affecting the public, workers, and unions

iii. Facilitation of bargaining activities

iv. Contract administration, such as communicating grievances and tracking

decisions of arbitrators

v. Union organizing, such as making contact with potential union members and

providing a means for interested employees to communicate with the union

vi. Political action, such as informing potential voters about union views and those

held by organized labor’s friends and adversaries

vii. Importance of technology to modernize unionism

viii. Concerns over use of Internet and email

VII. Union corruption and the Landrum-Griffin Act

i. Abuses of power exposed by McClellan hearings of late 1950s

ii. Phasing out of court supervision of Teamsters activities in 2015

iii. Level of corruption in unions is negligible

iv. AFL-CIO established Ethical Practices Committee

v. In 1959 Congress passed Landrum-Griffin Act to promote union democracy,

leadership accountability, and financial integrity; contains provisions governing

union operations and government

vi. The 1984 Comprehensive Crime Control Act, backed by AFL-CIO, closed

loopholes in laws against labor malfeasance; contains the Labor Racketeering

Amendments

VIII. Union security

i. Union security clause

a. Union security provisions

b. Closed shop: employee must first become a union member to obtain a job; made unlawful

by LMRA in 1947

c. Union shop; non-union employee can be hired but must become member within certain

period to remain employed (See exhibit 4.14)

i. Communications Workers v. Beck (487 U.S. 735 [1988]), held that a union shop

clause only requires a bargaining unit member to become a financial core union

member; full union member is subject to imposition of union conditions

ii. Beck rights; annual notification, accounting of funds, implementation procedures

iii. Bush Executive Order 132301 requires federal contractors to post notices

informing workers of their Beck rights

d. Agency Shop; does not require employee to join the union but requires the employee to

pay the union a sum equivalent to union membership dues

e. Contingency union shop; union security provision will automatically convert to a union

shop provision if a state’s right–to–work laws are eliminated

f. Union hiring hall; employers hire employees referred by the union if the union can supply

a sufficient number of qualified applicants

g. Preferential treatment clause; current employees who are union members will be given

preference over nonemployees when a new facility is opened

h. Dues checkoff; makes collection of union dues more convenient for union and union

members

i. Right-to–Work laws: Controversy and Effects

i. Under Section 14 b of the LMRA, a state may initiate legislation prohibiting

union membership as a condition of employment (Exhibit 4.16)

ii. 25 states have right-to-work (RTW) laws (Exhibit 4.17)

iii. Republican party influences places emphasis on passing RTW laws

iv. National Right to Work Committee

v. Wage disparity in favor of non RTW laws states

j. Arguments for Right to Work Laws

i. Required union membership conflicts with employees’ free choice and the

requirement to join a union and/or pay union is undemocratic

ii. Requiring union membership violates the employees’ constitutional rights of free

speech and association if dues are used to support member activities

iii. Required union membership concedes too much power to union officials

k. Arguments for abolishing Right-to-Work Laws

i. Elimination of “free riders”

ii. Union exists by majority vote of the bargaining unit

iii. Union security clause keeps the employers from weakening employees support

for the union because all employees will be paying dues

l. Recent U.S. Supreme Court Decision

i. June 2014, U.S. Supreme Court ruled that an agency fee provision in collective

bargaining violated employees’ free speech under the first amendment of the

U.S. Constitution

Discussion Questions

1. Compare the steps companies may take to implement a positive human resources

management program with principles of effective management.

The elements of positive human resources management are consistent with effective

2. Identify the common goals of companies and unions as opposed to their conflicting goals?

Common goals include;

Conflicting goals include:

3. Assess the strategic plans of the AFL-CIO and CTW, and determine whether these plans

provide direction for growth.

The CTW action plans for growth:

4. Locate a local union and a local plant, and draw an organizational chart for each.

Students can contact a local unionized firm for this information.

5. Select a craft union and an industrial union. Point out the characteristics of these two types

of unions.

6. Compare the government of the local union with student governments and municipal

governments, paying special attention to participation by members.

In nearly all cases, each unit uses the representative government approach, i.e., officials are

elected to represent the various constituency groups (senators elected by students in the

7. Explain why and how national unions’ presidents have been able to accumulate so much

authority and power.

National union presidents tend to accumulate increased authority and power:

• when they are in office for a longer period of time. They gain significant impact by

8. Differentiate among the business agent of a local union, a shop steward, and an international

union representative. How do their roles differ?

As the chief administrative officer, the business agent of a local union (usually a craft union)

on the various jobs, administers grievances, and assures that management abides by the

agreement.

The shop steward represents a group of employees in a department or on a job and is either

elected, as in industrial unions, or appointed, as in craft unions. The duties include handling

grievances at the first level, representing the members at union meetings, and collecting

membership dues.

The international union representative is actually an employee of the international union

assigned to a geographic area or a specific number of local unions. The duties include

assisting the local unions in negotiations and arbitration, organizing nonunion plants, and

serving as a communication link between the local and international union.

9. Because the AFL-CIO does not negotiate labor agreements on behalf of national unions,

why is it claimed to be the “spokesperson for organized labor” in the United States?

First, the AFL-CIO represents just about 13 million union members through its affiliated

10. Compare the requirements for union democracy to any student organization with which you

are familiar.

Issues to examine include the following:

• Is the student group governed by democratic principles?

• Is there a constitution?

• Are there regular meetings?

• Are there open elections?

• Are nominations open?

• Do members participate in the activities?

• Are there appeals of officer decisions?

• Is there an outside audit of finances?

• Do leaders obtain input from members?

• Are representatives elected to serve various interest groups?

• Is there full reporting of use of funds?

• Are terms of office fixed?

• Does a small number dominate the organization?

Student answers will vary.

11. Formulate a one- or two-sentence argument for or against the right-to-work philosophy.

Fully defend your statement from arguments that could be made against your position.

Exploring the Web

Labor Unions, Mergers, and Union Security

1. AFL-CIO

2. LaborNet

3. Bureau of Labor Statistics and Current Union Membership

4. Society for Human Resource Management (SHRM)

5. Union Security and Beck Rights

Suggested Readings and Term Paper Topics

1. Taking either (a) a U.S. historical perspective or (b) a multinational perspective,

examine the growth of white-collar, professional labor unions. What does the future

hold for white-collar, professional unions?

Possible references:

Cole, J. (Feb. 28, 2000). Labor says a white-collar walkout at Boeing boosts chance for Organizing. Wall

Street Journal, p. A28.

2. What are the prospects of unionization within the computer or electronics industry?

Support your position.

Possible references:

Boardman, M. (May, 1999). Unions go high-tech. WashTech attempts to recruit high-tech contingent

workers. HRMagazine, 44, (5), 160.

3. How have labor-management relations within the plastics and chemical industry

changed within the last 20 years? What are current issues facing labor and

management in the plastics and chemical industry? What does the future hold for labor

unions in the plastics and chemical industry?

Possible references:

——(August, 1999). Trade organizations attack German union over anti-plastics position. Modern Plastics,

29, (8), 15-16.

(24), 7-8.

International Labour Organisation: Chemical Industries Committee (1982). Industrial relations and

collective bargaining in the chemical industries. Geneva, Switzerland: ILO.

Nissen, B. (2003). The Recent Past and Near Future of Private Sector Unionism in the U.S.: An Appraisal.

Journal of Labor Research, 24, 2, 323-38.

Schmitt, W. (July 12, 2000). Unions propose their own care packages. Chemical Week, 162, (26), 83-84.

4. Unions exist as organizations as well as political entities. Are unions becoming poorer

or richer? Why?

Possible references:

Fraser, K. (Oct. 27, 1997). N.Y. Labor bank eyes stake in west coast union trust. American Banker, 162,

(207), 24-25.

Fantasia, R. and Voss, K. (2004). Hard work : remaking the American labor movement. Berkeley:

5. How has the deregulation of the airline industry affected its labor-management

relations? What will the future bring? Support your position.

Possible references:

Cremieux, P. Y. (1996). The effect of deregulation on employee earnings: Pilots, flight attendants, and

6. The Teamsters union has often been accused of having corrupt leaders. Trace the

history of these charges since 1950. Do you believe that the Teamsters leaders have ever

been corrupt? Do you believe that recent government efforts to reform the Teamsters

have been justified, or do you believe that they constitute excessive interference in a

private organization? What steps, if any, should be taken by either the rank-and-file or

the government to further regulate the Teamsters union?

Possible references:

Belace, J. R., & Berkowitz, A. D. (1979). The Landrum-Griffin Act: Twenty years of federal protection

of union members rights. Philadelphia, Penn.: University of Pennsylvania Press.

Belzer, M. H. (1999). Government oversight, union democracy, and labor racketeering: Lessons from the

7. Should the AFL-CIO have more power or less power relative to the power of its

member unions?

Possible references:

8. Should the AFL-CIO endorse political candidates? Why or why not?

Possible references:

——- (Sept., 1999). Unions defeat paycheck protection bills. HR Focus, 76, (9), 16.

Delaney, J. T., Masters, M. F., & Schwochau, S. (July, 1990). Union membership and voting for COPE–

endorsed candidates. Industrial and Labor Relations Review, 43, 621-635.

9. In his chapter, “Southern unions: History and prospects” (1985, from J. C. Cobb & R.

Wilson, Eds., Perspectives on the American South, vol. 3, NY: Gordon and Breach) Ray

Marshall argues that unions will experience substantial growth in Southern states.

Agree or disagree with his arguments and conclusion.

Additional references:

Bennett, J. T. (Winter, 1991). Private sector unions: The myth of decline. Journal of Labor Research, 12,

(1)1-12.

10. Write a history of one of the local unions in the community. Assume that you will

submit your paper for publication in a local magazine.

Possible references:

—–(January, 1989). “Telling our own history: how to discover and present the history of your local union.”

United Mine Workers Journal, 100, 6-13.

11. The J.P. Stevens Co. achieved notoriety in the 1960s and 1970s for its vigorous anti-

union stand. Analyze the tactics the company used. Also look at the tactics the union

used. Was either side justified in using those tactics? Why or why not?

Possible references:

Mullins, T. W., & Luebke, P. (1982). Symbolic victory and political reality in the Southern textile industry:

The meaning of the J. P. Stevens settlement for Southern labor relations. Journal of Labor Research, 3, 81-

12. Analyze labor-management relations in the U.S. textile industry. What role have

unions played historically? What does the future hold?

Possible references:

Dubofsky, M. (2003). Culture of Misfortune: An Interpretive History of Textile Unionism in the United

States. Industrial & Labor Relations Review, 56, 3, 560-562.

13. Analyze the life of labor leader Walter Reuther. What factors accounted for his

success?

Possible references:

Carew, A. (1993). Walter Ruether. Manchester, UK: Manchester University Press.

Howe, I., & Widick, B. J. (1949). The UAW and Walter Reuther. NY: Random House.

14. Analyze the history of the labor movement in the timber (lumberjacks) and/or lumber

workers industry.

Possible references:

—–(Feb., 1993). Union workers form timber policy group. Pulp & Paper, 67, (2), 23.

Fickle, J. E. (1981). Race, class, and radicalism: The Wobblies in the Southern lumber industry, 1900-1916.

15. Analyze the alleged corruption within the United Mine Workers during the 1960s and

1970s. Answer one of the following sets of questions:

A. Was the leadership of the UMW corrupt during the time of Tony Boyle? Or were

his actions justified?

B. Was the leadership of the UMW corrupt during the time of Tony Boyle? Was his

administration worse than that of John L. Lewis, or were they both equal in their

level of corruption and integrity?

Possible references:

—-(June 26, 1971). Bombshell from the Yablonski trial. Business Week. pg. 30.

—-(May 13, 1972). Boyle’s opponents gain real strength. Business Week. pp. 52-53.

16. Analyze the labor relations movement in the construction industry. How is it different

from other industries (e.g., a factory)? How is it changing? Support your positions.

Possible references:

Allen, S. G. (1988). Declining unionization in construction: The facts and the reasons. Industrial and Labor

Relations Review, 41, 343-359.

Cullen, D. E., & Feinberg, L. (1980). The bargaining structure in construction: Problems and prospects.

17. Analyze labor relations in the coal industry during the last 20 years. What trends have

emerged? What does the future hold?

Possible references:

—–(February 13, 1993). American coal mining: Seam of trouble. The Economist, 326, (7798), 72.

Cimini, M. H. (May, 1990). Developments in Industrial Relations. Monthly Labor Review, 113, (5), 58-60.

18. Should baseball abandon Final Offer [interest] Arbitration? Why or why not?

Possible references:

Dickinson, D. L. (2004). A Comparison of Conventional, Final-Offer, and “Combined” Arbitration for

Dispute Resolution. Industrial & Labor Relations Review, 57, 2, 288-301.

Marburger, D. R., & Scoggins, J. F. (Fall, 1996). Risk and Final Offer Arbitration usage rates, evidence

19. Analyze labor-management relations between U.S. airlines and the ALPA.

Possible references:

20. Analyze labor relations within the merchant marine. What challenges are facing the

Marine Engineers Beneficial Association/National Maritime Union (MEBA/NMU)

and/or the International Maritime Union (IMU)? What does the future hold?

Possible references:

Chapman, P. K. (1992). Trouble on board: The plight of international seafarers. Ithaca, NY: ILR Press.

Donn, C. (1989). Concession bargaining in the ocean-going maritime industry. Industrial and Labor

21. What role have white collar unions played in the labor movement? What role should

they play in the future? (You can focus on the travel and/or hospitality industry.)

Possible references:

Bielski, M. (2003). We Can’t Eat Prestige: The Women Who Organized Harvard. Journal of Labor

Research, 24,1 187-188.

Care Manager, 22, 4, 311-317.

22. In 1988, the NLRB decided that all health care workers should be grouped into one of

eight types of bargaining units. Analyze the implications of this decision for union

organizing in the health care industry.

Possible references:

Albert, R. M. (1991). U. S. Supreme Court decision to generate more union activity. Health Systems

Review, 24, (4), 40-42.

Deshpande, S. P. (2003). Labor relations strategies and tactics in hospital elections. Health Care Manager,

23. How has labor relations within the longshoremen’s union changed within the last 70

years? Are the changes for the better or worse? Defend your position.

Possible references:

Boyce, C. (Feb. 15, 1999). Automating the docks. Traffic World, 257, (7), 5–6.

Finlay, W. (1987). Industrial relations and firm behavior; informal labor practices in the West Coast

longshore industry. Administrative Science Quarterly, 32, 49-67.

24. Analyze labor-management relations in parochial schools. Should teachers at religious

schools (and/or professors at religious universities) engage in collective bargaining?

Why or why not? What does the future hold for these workers?

Possible references:

—–(Feb. 7, 1992). ‘Economic justice for all (including church workers)’ National Catholic Reporter, 28, p

20.

Bole, W. (August 30, 1991). Labor and religion remarry after separation, but church labor record creates

25. What are the major issues facing retail food industry workers? You may focus on

either grocery stores or restaurants. What advice would you offer to union leaders?

Possible references:

—–(April, 2003). How unions and management are working together to cut benefits costs, HR Focus, 80,

4, 10-11.

Ichniowski, C., & Delaney, J. T. (1990). Profitability and compensation adjustments in the retail food

26. Some say that union stewards are the guardians of employee rights. Others say union

stewards are paid troublemakers. What do you think? Support your arguments.

Possible references:

Baum, J. R. (February, 1963). Why be a lodge officer? Brotherhood of Locomotive Firemen and

Enginemen’s Magazine. Reprinted in Bakke, E. W., Kerr, C., & Anrod, C. W. (eds.) (1967). Unions,

management, and the public, third edition. NY: Harcourt, Brace, & World, 157-158.