Collective Bargaining Final – Flashcards
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How does collective bargaining work?
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Collective bargaining is a labor contract between a union and an employer that deals with wages, hours, and other terms of conditions and employment. The is an initial stage, a middle stage and a final stage of bargaining. In the initial stage the union presents a laundry list and management may present some features of the contract they desire. In the middle stage there is a detailed examination of the proposals and both sides seek information and form expectations of settlement terms. The final stages are when serious tradeoffs occur and lead negotiators may bargain one on one.
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What affects the outcomes of collective bargaining?
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1 Bargaining structure (strategic= big picture strategies for union and managment dealing with each other , functional= CBA process and outcomes through contract negotiations, workplace level= day to day employer and union contact ) and strategies of union and management 2. Bargaining Process 3. external environment (social (aging, women, and minorities), political, (labor laws and party in power) economic (Marshall's condition), tech (upskilling, deskilling, tech paradox)
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3. What is the current state of the American labor movement?
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The current state of the American labor movement is at an all time low. This is because of structural changes in the economy and labor force union avoidance employee substitution through personnel practices government substitution American worker ideology internal union affairs and actions limitations of the standard organizing and representation model
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4. How does unionization affect the management of employees?
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Unionization affects the management of employees because management must make strategic choices as to how it will manage its workforce. One way it can manage is the New Deal Pattern. This involves rigid formal contracts for work rules, standard pay rates and seniority. A second strategy is to utilize the conflict pattern. This is a more aggressive management approach to unions adopted in the 80's and 90's that seeks wage concessions and job cutbacks. It attempts to eliminate unions in strikes by using permanent replacement workers. The third approach is a participatory pattern. This is a more cooperative approach to dealing with unions adopted in the 80's and 90's. It involves team forms of work organization, worker and union involvement in decision making, and pay based on team/firm performance.
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5. Are unions good or bad for workers?
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Good. Union result in an average 15% higher wage rate compared to similarly situated nonunion workers. It also increases fringe benefits such as retirement plans and medical insurance, increases productivity, and decreases the quit rate. It improves job security through just cause protection and notice of layoffs and restrictions on outsourcing, provides seniority rights, and greater job control through detailed job description.
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6. What is the impact of labor relations on competitiveness?
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Profitability. Productivity. Turnover. In terms of the firm, unions decrease a firm's profitability because they cost more. In terms of productivity, a firms productivity is usually increased. In terms of turnover, layoffs are increased but quit rate is decreased.
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7. How is the public sector different?
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1. Price Inelasticity for public sector labor- lack of substitutes for goods like police force 2. Concern for govt. capture- fear unions will elect local gov. candidates and keep raising taxes to support higher wages. This shouldn't be a concern bc if prices get too high services go private (garbage contractors) 3. Strike leverage varies greatly. a. High leverage but no power to strike (police) Medium leverage for teachers low leverage for public administrative workers
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8. Why did unions expand? Commons' answer and why is it relevant for the contemporary world?
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Commons: Industrialization involves expanding product markets with new transportation technology. Expanding product markets lead to collective bargaining as labor organizes to take wages out of competition, i.e. wages not control is the goal.
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9. What were pre-New Deal labor relations like?
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Pre-new deal labor law didnt support unions. The KOL and IWW were the prominent unions. The KOL practiced uplift unionism focusing on education/cooperation instead of strikes and the IWW was radical in favor of direct action and strikes.
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10. What made the 1930s critical for American labor history?
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Following the 1929 stock market crash and the Great Depression of the 30s there was a crisis and decline in unionization rates. Then there was a shift from craft unionism to industrial unionism where unions organized all workers in an industry regardless of their craft to employ semi and unskilled workers. The CIO broke away from the AFL to become the CIO in 1935. ● Norris Laguardia Act 1932→Bans labor injunction and labor law contracts ● NLRA→ also referred to as the Wagner Act. Establishes protections and the right to organize. ● Fair Labor Standards Act→ establishes a minimum wage, 40 hour workweek and outlaws child labor ● Social Security Act→ payroll taxes
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11. What is different about 1950s-60s era collective bargaining compared to the current era?
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What is different about the 1950s-1960s era collective bargaining compared to the current era is that in the 50's the height of union strength occurred and the US was a primarily industrial country. Now there is a continuous decline and our economy has shifted from industrial to service. (Note: 1950's also had corruption concerns with the union ie. Jimmy Hoffa- passed the Landum
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12. Which workers are in unions? (Demographics)
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Gender: 12% men and 10% women Race: 13% Black, 11% white, 9% Asian and Hispanic Sector: 6.6% of the private workforce, 35.9% of the public workforce Occupation: Mostly blue Collar States: high in political states, low in south east
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13. Who are the winners and losers amongst unions?
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The relative wage effect advantages union workers because they receive on avg. 15-20% higher wages. However, nonunion firms raise wages to avoid unionization under the threat effect. This is a win for non-union workers because it closes the gap between union and nonunion workers. The supply effect is a lose for union workers because employers dont hire many workers since they must pay higher wages, thus increasing the supply of nonunion workers and sending the wages for nonunion workers down.
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14. How has union representation changed over time?
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craft->industrial->service sector and public
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15. What explains the decline of union representation?
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1. Structural changes in the economy such as switch to service sector jobs and of jobs from the northeast and Midwest to the south and the west 2. Stronger employer resistance through election propaganda or captive audience meetings or illegal tactics like firing workers 3. Employer substitution has made unions less necessary because of improved personnel practices 4. Government substitution through stronger health and safety laws leading workers to believe they are protected 5. American individualistic idealogy makes them naturally anti-union although polls shows americans view unions favorably and better than Canadian workeres 6. Internal union affairs appear corrupt and make unions unattractive yet rates are still strong in some sectors 7. Limitations of the American system which requires over 50% worker vote before a union can represent a bargaining unit and the fact that membership is attached to the workplace not the individual in a time when people change jobs frequently
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16. What is the future of union representation?
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1. Continue on the current trajectory where unions are confined to certain sectors 2. Unions decline due to stronger legal limitations 3. Membership stabilizes due to labor law reform such as Employee Free Choice Act 4. Unions change their strategies or turn to alternative models of rights and representation such as European styles or expanded individual rights (not being represented by place of work but as a person)
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17. What is in a collective bargaining agreement?
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A collective bargaining agreement contains the contract between the employer and the employee. It contains wages, hours, benefits, pensions, and other conditions of employment. Whether an employee is a union member or not, an employee who is represented by the union applies to the contract.
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18. What common terms do you find in CBAs? What do they mean?
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i. Recognition- NLRB certifying a union and recognizing it as a legitimate bargaining agent for a bargaining unit ii. Management Rights- that which is not stipulated in the labor contract is left to management to decide. iii. Union Security and Dues Check-off- agreement between management and union where agreement is reached on the extent to which the union can compel employees to join, and whether or not management will collect annual dues for the union directly from the employee's paycheck to be distributed to the union. iv. No strike guarantee- union will not strike/slowdown/hinder work during life of contract v. Grievance procedure and arbitration vi. Discipline and discharge- when someone is fired or complaint is levied against them. vii. Seniority- pension, new employees are first ones laid off viii. Successorship- process of promoting employees through company ix. Letters of Understanding- written summary of spoken negotiation. Often comes before the more detailed contract.
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19. Are typical union contract terms good or bad? E.g. Seniority; Work rules, Just cause; Grievance-arbitration.
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Good. Union result in an average 15% higher wage rate compared to similarly situated nonunion workers. It also increases fringe benefits such as retirement plans and medical insurance, increases productivity, and decreases the quit rate. It improves job security through just cause protection and notice of layoffs and restrictions on outsourcing, provides seniority rights, and greater job control through detailed job description.
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20. What are the main differences between union and nonunion workplaces?
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1) wage effects 2)Benefit effects 3) work rule effects 4) productivity, profitability, turnover effects
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21. What are the effects of unions on wages?
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Unions result in higher wages for workers, on average 15-20% higher.
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22. How do unions affect work rules and productivity and how does management respond?
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Unionized workplaces increases productivity. Management responds by making rewards based off productivity.
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23. Does interest based bargaining work?
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Interest based bargaining focuses on parties underlying interests. Parties work together and share information to evaluate their options and choose an option that will maximize an outcome to benefit their mutual interests.
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24. How do bargaining structures and pattern bargaining affect bargaining outcomes?
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Bargaining structures include single plant or multi plant bargaining units. Single plant units are most common because organizing is easier since the unit is smaller. A larger unit is easier because they have more leverage and can with stand a strike longer. Pattern bargaining is an informal bargaining style while copies the terms and conditions negotiated in one company or industry to another negotiation. This reduces strikes and links together wages and prices in the economy.
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25. Why do strikes occur?
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According to Hick's model, strikes occur due to miscalculations of cost due to behavioral factors, the business cycle, and social/geographic isolation. A settlement occurs between Management expectation plus costs and union expectation minus costs. Parties should always settle it is in both their interests.
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26. What gives labor and management leverage in strikes?
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Sources of Union Strike Leverage 1. Worker solidarity- the greater solidarity among the workers the longer they can support a strike 2. Alternative sources of income for strikers: union strike funds, loans from other union, personal savings and family, and if they allowed to work another job during a strike Sources of Management Strike Leverage 1. effect of a strike on production ( can the employer operate with out the workers?) 2. effect of a strike on sales (do they have inventory to last the duration of the strike?) 3. effect of a strike on profits (do they have expenses they must pay like loans?)
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27. What are recent trends in strikes?
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o Strikes have occurred less in recent decades (all over the world not just the US) and occur as a last resort, usually in response to health care benefits. Instead, There has a recent increase in unions' use of public pressure to support strikes and strengthen their bargaining leverage. Strikes are more frequent in first contract negotiations: 9.5% versus 3.5% of all negotiations.
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28. What are the sources of labor demand inelasticity?
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According to Marshall, 1. The difficulty of replacing the union workers by other workers or machines 2. The demand for the product. If the demand is not affected much by price increases, the union will be able to push for higher wage increases. 3. The supply of other inputs. You may be able to substitute technology to compensate for higher wage workers, but what will it cost? 4. Labor's share of total costs. How much of a company's total costs are a union? When it is small they can argue for increased wages because it is not a large portion of total budget.
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29. How do union grievance procedures work?
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1. Grievance must be based off contract 2. Grievance must be filed by union not individual employee, same for the appeal with a duty of fair representation. the union cant refuse to file a grievance unfairly due to personal hostility or bad faith Can be arbitration or expedited arbitration or grievance mediation.
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30. What is the legal status of labor arbitration?
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As determined by the Steel Worker's Triology, a series of 3 cases in 1960 that established the legal framework for labor arbitration. 1) Disputes are assumed to be subject to arbitration unless explicitly excluded in the contract. 2. Courts may only determine whether or not the grievance is covered by the contract, not whether or not it is a good case. 3. Courts will enforce arbitrations decisions without reviewing the merits of the decision.
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31. Why do we have labor arbitration?
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To determine if there was a violation of a CBA. For employees, arbitration ensures fairness and due process and the consistent application of a contract. For management it prevents strikes and ensures labor peace and for the public, it provides labor peace.
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32. How are nonunion grievance procedures different from union procedures?
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Nonunion procedures 1. lack representation for the employee 2. decisions are made based on managements discretion and company policies 3. decisions are not always legally enforceable 4. most lack a third party neutral final decision maker
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33. Why is employment arbitration controversial?
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1. Private sector arbitrators end up having control over important public statutes like anti-discrimination and civil rights 2. Employer designs the arbitration procedure which can make it unfair 3. Arbitrators are more likely to rule for the employer and to award lower damages for the jury
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34. What is the history and current state of public sector unions?
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Pre 1960s: Unions were seen as incompatible with public sector jobs. Instead there were public sector employee associations. Post 1960s: States began legalizing public sector unions. 70s-80s- Backlash to public sector unions because of a concern about raising taxes to pay for their higher wages. The backlash was demonstrated by Regan's firing of public sector unionized workers in the PATCO strike. 90-00s- Public sector rates are stable. Current/Post 08 Recession: public sector employment has decreased due to job loss
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35. How is public sector collective bargaining different from the private sector?
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A fundamental difference between public and private sector labor is the right to strike. Some states also limit public sector bargaining rights. Public sector labor is more price inelastic. There is a fear public sector unions will "capture" the government by electing sympathetic candidates and continuously raising taxes to pay for higher wages. The public sector has alternative ways for resolving disputes.
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36. How are bargaining disputes resolved in the public sector?
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1. Interest arbitration- neutral 3rd party decides issues and outcome of dispute 2. Fact finding- neutral 3rd party investigates dispute and issues a non-binding report recommending an appropriate settlement 3. Mediation- neutral 3rd party facilitates bargaining but doesn't decide any issues(this is most common in private sector)
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37. How does interest arbitration work?
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A single arbitrator or panel of three awards any terms he or she wants. Awards are usually similar to negotiated agreements. Agreements are made by issue (pick a side for each issue management or union) or by package (pic a side for the entire deal.)
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38. What is Taylorism?
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A production method that simplifies the tasks to maximize the pace of work and increase productivity. It emphasizes quantity over quality and benefits unskilled workers by sharing productivity gains through collective bargaining and earning middle class wages.
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39. Why did Taylorism rise and fall?
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It rose because It emphasizes quantity over quality and benefits unskilled workers by sharing productivity gains through collective bargaining and earning middle class wages. This form of job design became the standard of mass-production industries, and unions inherited this form when they expanded their membership in the mass-production industries in the 1930s. 1. Work-life balance- Taylorism failed because the changing workforce composed of less immigrants meant people weren't looking for just any job. People were tired of such a demanding work life. 2. International Competition- there was a pressure for higher quality products to be offered because of Japanese cars and also a desire for custom products which is hard to do with the system of taylorism
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40. Is workplace participation a good thing?
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Participation Programs can be good. Programs can have a positive effect on productivity and work life. If all employees take responsibility for problems, overall quality will increase. Also, there is a greater flexibility of production and reduced costs of supervision because the employee is gaining more responsibility. Since the employee is gaining more responsibility, there is higher job satisfaction and interesting jobs, reducing costs of turnover. Also, better compensation, job security, autonomy, and dignity for workers. However, Criticisms of participation programs are that 1. Productivity Programs work at first, but benefits diminish over time Uncertainty over productivity benefits of programs; other factors affect profits 2. Work life Quality circles were only directed at improving productivity, not work life People don't like being in teams Results in "Team Taylorism" & "management by stress" Conflicting interests of workers and management are ignored Unclear how much workers benefit in job security and wages
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41. How are Toyota and Volvo factories different from traditional GM factories?
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Toyota and Volvo have different workplace participation programs. Volvo has a participation program called "Teamwork Systems," on-line managed teams working without direct supervision. Toyota has a participation program called "Quality Circles"- which are offline groups that meet with a supervisor to discuss suggestions for production and quality improvements. This group works with lean production and total quality management groups.
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What strategies does management follow for labor relations in union workplaces?
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Unionized: 1. New Deal Pattern -Strategy using rigid contracts and very detailed rules. Employees received good wages but have low employee participation in decision making. The most traditionally used until the 1980s. 2. Conflict Pattern- extreme strategy began in the 80s and 90s that is aggressive and used wage cuts and job cuts as well as eliminates union strikes by employing permanent replacement workers. 3. participatory pattern- Post 80's strategy for cooperating with unions using team work and worker involvement as well as gainsharing/pay based on team or firm performance.
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What strategies does management follow for labor relations in non union workplaces?
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Non-Unionized: 1. paternalistic pattern- Pre-new deal strategy that is informal management used in small firms that gives lots of discretion to individual managers, no systematic policies. 2. bureaucratic pattern- similar to the new deal pattern this strategy used detailed rules and policies, and has limited flexibility and high predictability. It is common in large companies. 3. Sophisticated human resource (HRM) pattern- flexible. Trying to compete by offering quality and flexibity focus. Began being used from 70s on to avoid unions (good substitute and reduces desire for unionization) and bc of growing pressure from int. competition. Emphasizes team work.
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43. Why and how does management pursue different strategies and union avoidance approaches?
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Management can decide to manage its employees based on their individual business strategy OR based on sheer union avoidance. 1. Business strategy- emphasizes competing by favoring quality over price. These types of orgs tend to use participatory pattern more. 2. Union avoidance- American management universal strategy is to keep unions out if they can. Union suppression- firing union supporters Union substitution- HRM pattern providing benefits similar to unions
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44. How do unions respond to management labor relations strategies?
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1. Coordinating bargaining across units 2. Expanding via aggressive mergers so more people are represented and have more union leverage and investing in organizing activities Example seen in the Hurd Reading, "CB in the era of grocery restructuring." Retail grocers have been hurt by the rise of Walmart produce and companies like Trader Joes/Whole Foods. Global corporations change the norm of competiting locally in the area which they operate in. There is pressure on these grocers to cut wages to compete.
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45. Compare the assumptions about the relationship between labor and management in the unitarist, pluralist and critical perspectives. (10 points)
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1 Neoclassical (egoist) economics- all about operation of market. Unconstrained competitive market is always best. a. Labor/employees are treated as something you can buy and sell. 2 Managerialist (unitarist/Human resources)- assumes the process of managing workers is more complex, the market wont just work on its own. What determines labor relations is good managers. Assumes managers and workers have underlying common interests. 3 Institutionalist (pluralist) - assumes you need institutions like government to regulate market imperfections, in addition to good management. You must have collective labor organizing to bargain with management. There are mixed motives between employees and management. 4 Marxist (critical)- society is segmented into powerful and subordinate groups, labor vs. capital. There is a structural imbalance in capitalist societies.
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46. Describe how union membership rates have varied over time in the United States, from the 1930s to the present (you may include a graph).
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1930s:Crisis due to stock market crash and great depression, union membership in decline and the shift from craft to industrial unions occurs to include semi and unskilled workers 1940s:membership peaks all time high of 35.4% 1950s:height of union strength despite growing concerns about mob influence 1960s: switch where private sector unions begin shrinking and public begins growing, also emphasis on employment discriminaton/civil rights 1970s:stable membership 1980s: foreign competition leads to unions taking a hit as management aims to cut costs via cutting wages/benefits 1990s: 2000s: slow growth following recession
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48. According to Kuttner's article "A More Perfect Union", why has Local 6 of UNITE-HERE been successful? (10 points)
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Local 6 has been successful because 23,000 members banded together on such a large scale that management didn't have a choice other than to agree because profits would have been lost to an even larger extent. also because the hotel and restaurant industry cannot outsource their labor they need it on site in order to perform for their customers, leaving few alternatives for customers. The result was a 30-40% wage increase and received a union health plan.
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49. According to the Hicks theory of strikes, if management's expected strike wage is $20/hour, the union's expected strike wage is $25/hour, management's expected strike costs are equivalent to $2/hour, and the union's expected strike costs are equivalent to $5/hour, then what is the potential contract zone? (10 points)
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According to Hick's theory of strikes, the contract zone is $20-$22. I found this by adding $20 (wage) to $2 (strike cost) for the management side and subtracting $5 (strike cost) from $25 (wage) for the union side. This leaves a $2 contract zone.
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50. Give examples of two unions that have been growing in recent years and two unions that have been shrinking. What are the similarities between the growing unions and how do they differ from the shrinking unions? (10 points)
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Two unions that have been growing in recent years are the Services Employees International Union (SEIU) and the National Association of Educators (NAE), the largest union in America with around 11 million members. Shrinking unions include steelworkers unions and machinists (he circled "machinists" and put a question mark next to it, I think he probably just couldn't read what I wrote). The two growing unions share the similarity that they provide more of a service than a tangible product. There are many employees in/entering the service sector, and it is difficult to replace them.Likewise, it is a difficult task to replace teachers or find cheaper ones in foreign countries. Education is just not one of those things that is easy to outsource. Steelworkers, on the other hand, are easily replaceable, and their work is generally cheaper if done in a foreign market. Machinists fall into the same category. Their work is generally cheaper when done offshore, and they can be easily replaced by machines. Overall, growing unions differ from shrinking ones in that the former offer a service that is difficult to do anywhere else for a cheaper cost than at home.
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51. Describe how union membership varies by region, gender, race/ethnicity, industry and occupation in the United States. What does this tell us about areas of union strength and weakness. (40 points)
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52. Describe the four sub-processes of bargaining (distributive, etc.), giving examples of each of these from the Barnhouse exercise or the Final Offer film. Discuss how the sub-processes can affect each other, i.e. how what happens in one sub-process might affect another sub-process. (40 point
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Akron and Flint Reading
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Akron: 10,000+ GoodYear Rubber plant workers under the United Rubber Workers go on strike for recognition not wage and are successful. Flint: UAW workers strike at GM for regonition and refuse to leave at management's request. the governor refuses to call in military support and they gain recognition successfully.
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Final Offer Film
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Hurd on Grocery Bargaining
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Bruce Raynor Reading Losing by Winning
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"There is no reason to subject the workers to an election"-Bruce Raynor · Workers may win legal decisions before the NLRB, however, their treatment and working conditions are hardly improving
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Guest Lecturer United Technologies
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Guest Lecturer NHLPA
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Stages in the organizing process
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some issue or source of dissatisfaction in the workplace leads to worker interest in union representation. Worker(s) contact union seeking representation. Union begins campaign to collect authorization cards for an election. Union files petition for an election with the NLRB. Union must have 30 percent of workers sign petition to obtain an election - usually have much more, e.g. 70-80 percent. NLRB reviews petition and announces an election Management and union engage in 'campaigns' to influence the workers to vote for or against union representation. After a 1-3 month campaign period an NLRB field officer conducts a secret ballot election in the 'bargaining unit
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Common union Campaign Tactics
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Union: Worker to worker discussions in the workplace. Wearing pro-union buttons, hats, or t-shirts. Rallies and leafleting outside the plant. Home visits by union organizers. Mailings, emails, telephone calls. Workers can communicate with fellow workers in the workplace about union organizing so long as it does not disrupt work. Could have a rule against discussions in front of customers in a retail store
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Common management Campaign Tactics
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Management: Supervisors lobbying workers in the workplace. Office mail, emails, notices and postings on bulletin boards. Hiring anti-union consultants or lawyers. May include illegal tactics, e.g. firing key organizers, threats of job loss or wage and benefit cuts.
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Lechmere case:
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Non-employees (i.e. organizers from the union) only have access to the workplace to campaign if in isolated locations.
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Town & Country case:
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Salts', paid union organizers who get themselves hired by the target company, are employees protected by the NLRA.
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Common Campaign Arguments
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Union: Economic benefits of organizing: wages, benefits. Justice issues: Grievance procedures, just cause. Providing employee "voice" in the workplace. Management: Past good treatment; appeals to loyalty. Inability of union to guarantee better wages. Costs of striking; costs of union dues. Danger of unions to job security. Danger of union as an "outsider". Union corruption and lack of democracy.
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Overall Union Success Rate:
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50-60% of elections held Explanation #1:Employer campaign opposition. Research shows employer campaign tactics can reduce union win rates in elections, especially illegal tactics, e.g. firing workers. Explanation #2: Bad union campaign tactics. Research shows nontraditional, rank-and-file organizing strategies increase union win rates.
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Criteria for Arbitration Hearing outcomes
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Was there just cause for discipline (burden of proof on management) Progressive discipline-there are increased penalties for repeat offenses past practice-important that management stick to its past practices
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Non.Union Workplace Alternative Procedures to Arbitration
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Other non union grievance procedure options include open door policies, peer review panel, ombudspersons, and non-union arbitration. Management uses these procedures to 1. enhance productivity 2. union substitution 3. litigation avoidance
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How Mediators Help
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· Facilitating communication o A common technique is 'caucusing', in which the mediator puts the parties in separate rooms and relays messages between them. · Injecting realism o Mediators often try to help parties see the weaknesses of their own positions by playing 'devil's advocate'. · Appraising positions o Experienced mediators can offer the parties a more accurate appraisal of the situation based on their knowledge and experience. · Encouraging interest-based bargaining o Sometimes mediators are specifically brought in to help the parties conduct interest-based bargaining. How Interest
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Where do mediators and arbitrators come from?
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· Federal Mediation and Conciliation Service (FMCS): · FMCS is a government agency that assists labor and management in resolving bargaining impasses. The agency provides mediators free of charge at the request of the parties. Maintains lists of arbitrators · National Mediation Board: o This federal government agency administers the Railway Labor Act and provides mediation services for disputes in the Rail and Airline industries. · Public Sector Employee Agencies: o Various state and federal agencies provide mediation services for disputes involving public sector employees.
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Process of Grievance in Nonunion workplace
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• Step 1: Informal discussion with supervisor. • Step 2: Written appeal to departmental manager. Written response. • Step 3: Written appeal to facility or business unit manager. Written response. • Step 4: Written appeal to management appeals committee. Written response. • Step 5: Written appeal to company vice-president of human resources. Final decision
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Process of organizing a union
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• Interest in the union. • Workers contact union to express interest • Union collects authorization cards, must have at least 30% of workers must sign these in order to obtain election, in reality, unions only go in when 70-80% of workers sign them • If employer wishes at this point to acknowledge union they can, but this never happens • Election occurs, usually a 1-3 month campaign period • If union wins majority in the secret ballot election, union wins the title of bargaining representative for the workplace
