Chapter Twelve
Dealing with Employee-Management Issues and Relationships
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
ORGANIZED LABOR
•
Unions -- Employee organizations whose main goal is to represent members in employeemanagement negotiations of job-related issues.
•
Labor unions were responsible for:
-
Minimum wage laws
Overtime rules
Workers’ compensation
Severance pay
Child-labor laws
Job-safety regulations
12-2
PUBLIC SECTOR
LABOR UNIONS
•
Public sector union members work for governments as teachers, firefighters, police
officers, etc.
•
Many states face serious debt problems and want to cut labor costs. But states with
public sector unions have limited ability to cut those costs.
12-3
GOALS of ORGANIZED LABOR
•
To work with fair and competent
management.
•
To be treated with human dignity.
•
To receive a reasonable share of
wealth in the work it generates.
12-4
Labor Union History
12-5
HISTORY of
ORGANIZED LABOR
•
Craft Union -- An organization of skilled specialists in a particular craft or trade.
•
As early as 1792, shoemakers in a Philadelphia craft union met to discuss
fundamental work issues.
•
Work weeks were 60+ hours, wages were low
and child labor was rampant.
12-6
EMERGENCE of LABOR ORGANIZATIONS
•
Knights of Labor -- First national labor union; formed in 1869.
•
Knights attracted close to 800,000 members but fell from
prominence after a riot in Chicago.
•
American Federation of Labor (AFL) -- An organization of
craft unions that championed fundamental labor issues; formed in
1886.
12-7
INDUSTRIAL UNIONS
•
Industrial Unions -- Labor unions of unskilled or semiskilled workers
in mass production industries.
•
Congress of Industrial Organizations (CIO) -- Union organization
of unskilled workers; broke away from the AFL in 1935 and rejoined in
1955.
•
The AFL-CIO today has affiliations with 56 unions and about
12.2million members.
12-8
Labor Legislation
12-9
EFFECTS of LAWS on
LABOR UNIONS
•
Labor unions’ growth and influence has been very dependent on public opinion and
law.
12-10
EFFECTS of LAWS on
LABOR UNIONS
Pro-Labor Legislation
12-11
EFFECTS of LAWS on
LABOR UNIONS
Norris-La Guardia Act
Paved way for union growth
•
The Norris-LaGuardia Act helped unions by
prohibiting the use of Yellow-Dog Contracts -- A type
of contract that required employees to agree to NOT
join a union.
12-12
EFFECTS of LAWS on
LABOR UNIONS
National Labor Relations Act (NLRA)
Wagner Act
Legal justification for union activities
Collective Bargaining
National Labor Relations Board
Certification and Decertification
12-13
EFFECTS of LAWS on
LABOR UNIONS
•
Collective Bargaining -- The process whereby union and management representatives
form an agreement, or contract, for employees.
12-14
FORMING a UNION
in the WORKPLACE
•
The National Labor Relations Board (NLRB) was created to oversee labormanagement issues and provide guidelines for unionization.
12-15
FORMING a UNION
in the WORKPLACE
•
Certification -- The formal process by which a union is recognized by the NLRB as the
bargaining agent for a group of employees.
•
Decertification -- The process whereby employees take away a union’s right to represent
them.
12-16
EFFECTS of LAWS on
LABOR UNIONS
Pro-Management Legislation
12-17
EFFECTS of LAWS on
LABOR UNIONS
Labor-Management Relations Act
Taft-Hartley Act (1947)
12-18
LABOR/MANAGEMENT
AGREEMENTS
•
Union Security Clause -- Stipulates workers who reap union benefits must either join the
union or pay dues to the union.
12-19
UNION SECURITY AGREEMENTS
•
Closed Shop Agreement -- Specified workers had to be members of a union before
being hired for a job.
12-20
UNION SECURITY AGREEMENTS
•
Union Shop Agreement -- Declares workers don’t have to be members of a union to be
hired but must agree to join the union within a specific time period.
However…
12-21
UNION SECURITY AGREEMENTS
The Taft-Hartley Act also granted states the power to outlaw union shop agreements.
This led to the creation of the Agency Shop Agreement
12-22
UNION SECURITY AGREEMENTS
•
Agency Shop Agreement -- Allows employers to hire nonunion workers who don’t have
to join the union, but must pay fees.
12-23
UNION SECURITY AGREEMENTS
Also,
because the Taft-Hartley Act granted states the power to outlaw union shop
agreements, some states passed…
12-24
RIGHT-to-WORK LAWS
•
Right-to-Work Laws -- Legislation that gives workers the right, under an open shop, to
join or not to join a union,
which created the…
•
Open Shop Agreement -- Agreement in right-to-work states that gives workers the right to
join or not join a union, if one exists in their workplace.
12-25