Theories1 ECONOMIC VIEW OF COLLECTIVE BARGAINING Unions a Disruption to Competitive Markets Cause a Misallocation of Resources

Wn Wu EuEn UNIONIZED SECTOR NONUNION SECTOR Sn Su Wn Wu Wn

Theories3 INDUSTRIAL RELATIONS SYSTEMS OUTCOMES ARE RULES – PROCEDURAL RULES – SUBSTANTIVE RULES HOW ARE RULES ESTABLISHED? – MANAGEMENT – GOVERNMENT –WORKERS HIERARCHY – MANAGEMENT-WORKERS – MANAGEMENT-WORKERS-GOVT

Theories4 INDUSTRIAL RELATIONS SYSTEMS (CONT.) ACTORS – MGMT, GOVT, WORKERS/ORGS CONTEXTS – TECHNOLOGICAL TYPE OF PRODUCT OR SERVICE – AIR TRAVEL GEOG DISPERSION VARIABLE HOURS, ETC. –MANUFACTURING (PAPER) GEOG CONCENTRATION, LONGER SHIFTS (ETC.)

Theories5 INDUSTRIAL RELATIONS SYSTEMS (CONT.) CONTEXTS (CONT.) – MARKET/BUDGETARY SHELTERED COMPETITIVE LOCUS OF POWER IN SOCIETY – OUTSIDE IR SYSTEM POLITICAL INFLUENCE OF UNIONS – CANADA - PARLIAMENTARY SYSTEM & NDP – U.S. - LINK TO DEMOCRATIC PARTY EMPLOYER LINK TO REPUBLICAN PARTY

Theories6 INDUSTRIAL RELATIONS SYSTEMS (CONT.) WHAT ARE THE RULES – SUBSTANTIVE COMPENSATION IN ALL FORMS DUTIES AND PERFORMANCE OF WORKERS RIGHTS OF WORKERS –PROCEDURAL FOR RESOLVING DISPUTES CHANGING THE RULES

Theories7 INDUSTRIAL RELATIONS SYSTEMS (CONT.) IDEOLOGY –A SET OF COMMON BELIEFS THAT HOLDS SYSTEM TOGETHER –ACTORS’ IDEOLOGIES MUST BE COMPATIBLE –EXAMPLES EUROPE – CLASS LINES – COLLECTIVE WORKER ACTIVITY A NATURAL COROLLARY TO CLASS

Theories8 INDUSTRIAL RELATIONS SYSTEMS (CONT.) –EXAMPLES (CONT.) UNITED STATES – INDIVIDUALISTIC – LESS COMFORTABLE WITH COLLECTIVISM AND UNIONISM, ESPECIALLY IF IMPOSED ON UNWILLING INDIVIDUALS (FREEDOM OF ASSOC.) – A NECESSARY EVIL – COMPOSITIONAL ISSUES WHAT IS GOOD FOR EVERYONE IS NOT NECESSARILY GOOD FOR EVERY ONE –SCOPE OF INCLUSION EXTENSION TO ALL EMPLOYERS IN EUROPE UNIT BY UNIT CHOICE IN U.S.

Theories9 GOVERNANCE VIEW Focuses on how decisions are made –no CB - unilaterally –CB - jointly Permits workers to participate in decisions affecting them Transference of notions of democracy to the workplace –property rights only provide authority over property –does not necessarily provide authority over people

Theories10 ACTIONS ASSOCIATED WITH EMPLOYEE DISSATISFACTION Economic View - Exit Governance View - Voice

Theories11 INDUSTRIAL DEMOCRACY VIEW Workplace is analogous to society Cannot have democracy in society without democracy in the workplace

Theories12 Law and Values View Values in United States –Individualism rights of individuals superior to other rights property rights a derivative of individual rights individuals free to order economic transactions so long as no laws are broken - freedom of contract –Corporations are Legal Individuals –Purchase and sale of labor an exchange transaction –Unions attempt to collective an individual transaction

Theories13 Law and Values View (CONT.) Values in U.S. and Law –Unequal status of employers and unions conflicts between ind\property rights and collective rights usually resolved in favor of ind rights “reserved rights” theory of management Impact on IR System –Unions –Employers\Corporations –Product Market