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

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

3. Theories3 Management Perspective Flows from Economic Perspective Firm (management) has knowledge and legal authority/responsibility to allocate resources (capital and labor) efficiently in best interests of stakeholders and customers of firm

4. Theories4 INDUSTRIAL RELATIONS SYSTEMS OUTCOMES ARE RULES – PROCEDURAL RULES – SUBSTANTIVE RULES HOW ARE RULES ESTABLISHED? – MANAGEMENT – GOVERNMENT –WORKERS HIERARCHY – MANAGEMENT-WORKERS – MANAGEMENT-WORKERS-GOVT

5. Theories5 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.)

6. Theories6 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

7. Theories7 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

8. Theories8 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

9. Theories9 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.

10. Theories10 Bilateral Perspective Cooperation and Conflict –Mixed Motive approach Inequality –Status –Bargaining Power Balance Required

11. Theories11 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

12. Theories12 ACTIONS ASSOCIATED WITH EMPLOYEE DISSATISFACTION Economic View - Exit Governance View - Voice

13. Theories13 INDUSTRIAL DEMOCRACY VIEW Workplace is analogous to society Cannot have democracy in society without democracy in the workplace

14. Theories14 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

15. Theories15 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