What is a Union? An association, combination, or organization of employees who band together to secure favorable wages, improved working conditions, and better work hours, and to resolve grievances against employers.

Unions and Management 8.3 Labor Contract Issues: – Wages and Fringe Benefits – Working Conditions – Job Security – Union Security – Grievance Procedures

Labor Contract Issues 8.3 Wages and Fringe Benefits— – Vary according to type of position and seniority – How is Overtime paid? – COLA or cost of living allowance raises – Fringe Benefits—are non-wage payments; includes sick days, holidays, vacation days, health and life insurance, profit sharing, etc.

Labor and Contract Issues 8.3 Working Conditions: – Clean and safe workplace – Reasonable working hours – Clearly defined job responsibilities

Labor and Contract Issues 8.3 Job Security—The legal system provides some protection by prohibiting an employer from firing an employee because of race, sex, religion, age, or union activity. – Seniority—the holding of privileges based on the number of years a worker has been employed by the company.

Labor Contract Issues 8.3 Union Security—Employees are free to join and participate in union activities without penalty. Grievance Procedures—When a work related dispute arises, either labor or management may seek resolution by following a set of agreed upon steps for solving the problem.

Contract Negotiations 8.3 Collective Bargaining—When negotiating a new contract with management, union leaders speak for all the members they represent. Mediation—Negotiators call in a neutral third party to listen to arguments of both sides and to suggest ways in which an agreement can be reached. Arbitration—Like mediation except decision is binding.

Union Tactics 8.3 Strike—Unions call for union members to stop working until contract demands are met. – Most strikes are called over wage disputes – Others are called over poor working conditions – Others are called over unfair management practices Picketing —Walking in front of business with signs. – Informs public that a strike is in progress – May arouse public sympathy for workers – Discourages non-strikers from entering

Union Tactics 8.3 Boycotts– Is an organized effort to stop the purchase of a company’s products. – Secondary boycott—Is a refusal to buy the goods or services of any firm that does business with a company whose employees are on strike. Coordinated Campaigning—Involves the use of both picketing and boycotting.

Management Responses 8.3 Three common management actions: 1. Hiring replacement workers 2. Introducing a lockout 3. Asking for an injunction

Management Responses 8.3 Replacement Workers—The company may decide to hire replacement workers. – Hard to find qualified workers – May be intimidated by the strikers Lockouts —The employer closes a company’s doors until negotiators reach a contract agreement. Injunctions —Company asks government to issue a court order to prevent workers from striking.