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McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-1 Box 6.2: The Soul and Scope of Employee Representation INSERT BOX 6.2
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-2 Box 6.3: UNION STRATEGIES INSERT BOX 6.3
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-3 THE STRUCTURE OF THE U.S. LABOR MOVEMENT Craft and amalgamated locals are likely to have elected business agent to administer the contracts that have been negotiated with various employers. Most worksites also have one or more elected or appointed shop stewards who are the primary point of contact for most unionized employees. Steward’s most important responsibilities are processing grievances that have been filed within their work group. Local unions are governed by a president and executive committee who are democratically elected (mandated by Landrum-Griffin). –In most locals, president not paid full-time to do U business Works regular job during day, does U business nights/ weekends
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-4 THE STRUCTURE OF THE U.S. LABOR MOVEMENT There are approximately 100 national unions in the U.S. Largest national unions are: National Education Association (NEA) Teamsters United Food and Commercial Workers (UFCW) Service Employees International Union (SEIU) American Federation of State, County, and Municipal Employees (AFSCME) NEA has over 2M members; other unions have over 1M each. National unions charter locals and often have final authority over local actions.
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-5 Box 6.6: The Structure of the U.S. Labor Movement INSERT BOX 6.6
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-6 UNION DEMOCRACY Since providing voice is one of the primary roles of labor unions, it is imperative that unions are democratic. Democracy in unions is also championed on the belief that democratic unions are more effectively representing their members. Union democracy can be analyzed along three dimensions: Procedural (the extent of democratic procedures within unions, such as free speech). Behavioral (the extent that behaviors within unions support democracy, such as voting rates). Substantive (the extent to which the union leadership is responsive to the wishes of the rank and file ).
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-7 AFL-CIO Most U.S. national unions, including internationals, are affiliated with the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO). The AFL-CIO plays an important leadership role in the direction and coordination of the U.S. labor movement. The AFL-CIO is a support organization whose main functions are: Political lobbying Research Education
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-8 AFL-CIOAFL-CIO STRUCTURE (2004) INSERT BOX 6.7
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Change to Win Coalition Had pressured AFL-CIO to convert to institution w/ authority to order U mergers, grant exclusive organizing rights to industry sectors –Seven member unions represent ~5.4m workers –AFL-CIO now has ~8.8m members Believe Us must be much bigger to be able to bargain w/ global Cos and nationwide chains –Will have strategic organizing center and central organizing fund –75 percent of revenue from per capita fee will go to organizing, 25 percent to administrative activities Disaffiliation has implications for ability of AFL-CIO to coordinate get-out-the-vote drives, activities of state and local central labor councils
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. “Divided They’ll Stand – Maybe Even Taller” Robert Reich (Sec. of Labor in Clinton Admin) notes that while watchwords for labor have been “in unity there is strength,” labor movement may in fact be stronger disunited History of organized labor has been one of upheaval and rebirth, reflecting changes in structure of American economy –KoL, AFL, CIO 1950s and 1960s were golden age for unions –To achieve economies of scale, major industries became dominated by few large producers (labor costs taken out of competition) However, 1980s–present has seen rise of global product markets and increasingly global labor markets –Local service sector of economy remains exception to globalization »Source: Washington Post, 7/31/05
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-11 MANAGEMENT GOALS AND STRATEGIES Business-level strategies often divided into two general types: Cost leadership strategies (emphasizing low cost) Differentiation strategies (emphasizing product quality and features) To pursue business-level strategy, management designs functional strategy that includes human resource strategy whose bottom line is effectiveness and efficiency. –Attract, retain, motivate –Labor relations strategy (e.g., union avoidance or acceptance) function of environment, corporate goals, values
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-12 Box 6.8: Managerial Goals and Strategies Insert BOX 6.8
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-13 MANAGEMENT GOALS AND STRATEGIES Two possible management attitudes towards labor unions: –Union avoidance-The extent that management works toward remaining nonunion, or becoming nonunion if unionized. Union avoidance tactics can involve either union suppression or union substitution. –Union acceptance (tolerance?)-The extent that management accepts, perhaps begrudgingly, the presence of a union, or drive to establish a union.
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-14 Box 6.10: UNION AVOIDANCE TACTICS
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Union-organizing election campaign tactics Percentage of companies that used these tactics: –Held mandatory ee meetings92% –Held supervisor one-on-ones78% –Hired mngt consultant75% –Distributed anti-U leaflets75% –Mailed anti-U letters70% –Used anti-U videos55% –Discharged pro-U activists25% –Promoted pro-U activists (?)11% »Source: Cornell University study reported in Wall Street Journal, 8/15/05
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Union-organizing election campaign tactics Among cos that have used consultants recently: Cintas, Coca-Cola, and ConAgra –Consultants typically charge ~$50k for four to five week campaign Wal-Mart doesn’t hire consultants, but relies on its own 20-member team –Dispatched to any store that unions attempting to organize, including two in 2005 in PA and CO Labor Relations Institute has online store that sells campaign literature, including packets of recently published newspaper articles on U strikes, violence, financial irregularities; videos; “Vote No” campaign buttons; fortune cookies containing messages such as ‘Picket line often next to bread line’ »Source: Wall Street Journal, 8/15/05
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-17 ARE LABOR RIGHTS HUMAN RIGHTS? The prime foundation of human rights is the belief that there are basic rights that everyone is entitled to simply by being human. Created in 1919, the International Labor Organization (ILO) sought to address issue of human rights of labor recognizing positive economic and social rights –in which governments have a responsibility for ensuring adequate standards of living including employment opportunities, income, housing, medical care, safety, and education.
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-18 ARE LABOR RIGHTS HUMAN RIGHTS? UN Universal Declaration of Human Rights (1948) –Pay sufficient for existence worthy of human dignity –Equal pay for equal work –Reasonable working hours –Periodic paid holidays –Unemployment and disability insurance –Right to form labor unions
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C6-19 ARE LABOR RIGHTS HUMAN RIGHTS? But what happens when property rights conflict with labor rights? Property rights and labor rights are both human rights No accepted hierarchy so they should be balanced Balancing property rights and labor rights is a key theme in labor relations The labor relations processes try to balance property rights and labor rights The NLRB tries to balance property rights and labor rights in its decisions Note tension with social justice viewpoint
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