1. Dealing with Union and Employee- Management Issues
Chapter 12
Dealing with Union and Employee- Management Issues
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING GOALS
Chapter Twelve
Trace the history of organized labor in the United States
Discuss the major legislation affecting labor unions
Outline the objectives of labor unions
Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future
Assess some of today’s controversial employee– management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace
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3. DAVID STERN National Basketball Association (NBA)
Profile
Started with the NBA as an outside legal counselor in
Spearheaded settlements between players and coaches that led to free agency, salary caps and revenue sharing .
Commissioner since 1984, he’s led the league to unprecedented growth .
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4. NAME that COMPANY
Chapter Twelve
As the number of women in the workplace began growing rapidly about 25 years ago, this company recognized that providing child care benefits would be a real advantage for companies. Today it is the largest provider of child care at worksites, operating about 700 child care centers for 400 companies including 90 companies in the Fortune 500.
Name that company!
Company: Bright Horizons
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5. ORGANIZED LABOR
Employee -Management Issues
LG1
Unions -- Employee organizations whose main goal is to represent members in employee-management 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
See Learning Goal 1: Trace the history of organized labor in the United States.
Many of the benefits that workers’ enjoy today are due to the battles unions have fought over the past 100 years. Students are often surprised that a little over 100 years ago the average work week was between 60 to 80 hours. The 40 hour work week is a direct result of unions.
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6. PUBLIC SECTOR LABOR UNIONS
Employee -Management Issues
LG1
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.
In 2011 Governor of Wisconsin challenged public sector labor unions by eliminating union bargaining rights for state and public employees.
See Learning Goal 1: Trace the history of organized labor in the United States.
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7. PUBLIC SECTOR JOBS Employee -Management Issues LG1
See Learning Goal 2: Discuss the major legislation affecting labor unions.
Public Sector Jobs
This slide shows the amount of public sector jobs in today’s U.S. workforce.
Of the million total U.S. jobs (nonfarm), the public sector holds 21.4 million jobs.
Federal government workers stat excludes postal workers.
Local government workers stat excludes teachers.
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8. GOALS of ORGANIZED LABOR
Employee -Management Issues
LG1
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.
See Learning Goal 1: Trace the history of organized labor in the United States.
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9. HISTORY of ORGANIZED LABOR
The History
of Organized Labor
LG1
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.
See Learning Goal 1: Trace the history of organized labor in the United States.
Work weeks were 60+ hours, wages were low and child labor was rampant.
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10. EMERGENCE of LABOR ORGANIZATIONS
The History
of Organized Labor
LG1
Knights of Labor -- First national labor union (formed in 1869).
Knights attracted 700,000 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).
See Learning Goal 1: Trace the history of organized labor in the United States.
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11. The TRIANGLE FIRE (Spotlight on Small Business)
On March 25, 1911, 146 women were killed in a fire at the Triangle Shirtwaist Company in New York City.
The women were trapped by a door that was kept locked to prevent theft and taking breaks.
Today labor leaders say that the Triangle fire is proof of why labor unions are crucial to maintaining workplace balance in the U.S.
See Learning Goal 1: Trace the history of organized labor in the United States.
The 100th anniversary of the Triangle Shirtwaist fire came at a time when public union workers in 2011, Wisconsin, Ohio, and other states battled to retain their right to collectively bargain.
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12. INDUSTRIAL UNIONS
The History
of Organized Labor
LG1
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 creating the AFL-CIO, having affiliations with 56 unions with approximately 12.2 million members.
See Learning Goal 1: Trace the history of organized labor in the United States.
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13. PUBLIC UNIONS
Public Sector Union Membership
LG1
For the first time in U.S. history, 7.6 million of the union members work in government.
Taxpayers, not stockholders, are paying the cost of union workers wages and benefits.
The huge state and local government revenue losses caused by the economic crisis put pressure to reduce wage and benefit costs.
See Learning Goal 1: Trace the history of organized labor in the United States.
Today, at least seventeen states are trying to restrict union rights and cut labor costs.
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14. EFFECTS of LAWS on LABOR UNIONS
Labor Legislation and Collective Bargaining
LG2
Labor unions’ growth and influence has been very dependent on public opinion and law.
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.
Collective Bargaining -- The process whereby union and management representatives form an agreement, or contract, for employees.
See Learning Goal 2: Discuss the major legislation affecting labor unions.
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15. COLLECTIVE BARGAINING and the PUBLIC SECTOR
Labor Legislation and Collective Bargaining
LG2
Collective bargaining among public union workers has become a key issue today.
One of the issues is the fact that public employees are paid by the taxpayers.
When it is perceived that public employees are winning for better health care, or for more or better hours of work, and so on, some have questioned whether or not such negotiations should be allowed to continue.
See Learning Goal 2: Discuss the major legislation affecting labor unions.
In states like Wisconsin and Ohio, public and private union members have joined together to fight any efforts to take away collective bargaining among public employees.
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16. FORMING a UNION in the WORKPLACE
Union Organizing Campaigns
LG2
The National Labor Relations Board (NLRB) was created in 1935 to oversee labor-management issues and provide guidelines for unionization.
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.
See Learning Goal 2: Discuss the major legislation affecting labor unions.
The National Labor Relations Act (often referred to as the Wagner Act) created the NLRB.
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17. WHY JOIN a UNION? Pro-union attitudes
Union Organizing Campaigns
LG2
Pro-union attitudes
Poor management/ employee relations
Negative organizational climate
Poor work conditions
Union’s reputation
Job security
See Learning Goal 2: Discuss the major legislation affecting labor unions.
Why Join a Union?
This slide lists some of the key reasons why a person might consider joining a union.
The power of unions has waned as the economy has shifted from an industrial economy into a service based economy.
Ask students: Are unions necessary in today’s modern working environment?
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18. LABOR/MANAGEMENT AGREEMENTS
Objectives of Organized Labor Over Time
LABOR/MANAGEMENT AGREEMENTS
LG3
Negotiated Labor-Management Agreement (Labor Contract) -- Sets the terms under which labor and management will function over a period of time.
Union Security Clause -- Stipulates workers who reap union benefits, must either join the union, or pay dues to the union.
See Learning Goal 3: Outline the objectives of labor unions.
Unions attempt to address their most pressing concerns in the labor contract.
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19. UNION SECURITY AGREEMENTS
Objectives of Organized Labor Over Time
LG3
Closed Shop Agreement -- Specified workers had to be members of a union before being hired for a job.
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.
Agency Shop Agreement -- Allows employers to hire nonunion workers who don’t have to join the union, but must pay fees.
See Learning Goal 3: Outline the objectives of labor unions.
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20. STATES with RIGHT-to-WORK LAWS
Objectives of Organized Labor Over Time
STATES with RIGHT-to-WORK LAWS
LG3
See Learning Goal 3: Outline the objectives of labor unions.
This map can be used as the basis for an interesting classroom exercise. The United States’ auto industry has been in the news with the financial difficulties of General Motors and Chrysler well chronicled. Have students use the internet to research the location of any new auto plants in the United States. Research will uncover many new auto related jobs are in right-to-work states. For example, a recent article in the Boston Globe profiled Alabama’s auto related job growth. In 2001, Alabama had 21,000 auto related jobs that number now stands at over 48,000. Many would argue this trend of locating in the southeast is due to the states’ right-to-work laws.
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21. RIGHT-to-WORK LAWS
Objectives of Organized Labor Over Time
LG3
Right-to-Work Laws -- Legislation that gives workers the right, under an open shop, to join or not to join a union.
The Taft-Hartley Act of 1947 granted states the power to outlaw union shop agreements.
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.
See Learning Goal 3: Outline the objectives of labor unions.
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22. RESOLVING DISAGREEMENTS
Resolving Labor-Management Disagreements
LG3
Labor contracts outline labor and management’s rights, and serves as a guide to workplace relations.
Grievances -- A charge by employees that management is not abiding by the terms of the negotiated agreement.
Shop Stewards -- Union officials who work permanently in an organization and represent employee interests on a daily basis.
See Learning Goal 3: Outline the objectives of labor unions.
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23. USING MEDIATION and ARBITRATION
LG3
Bargaining Zone -- The range of options between initial and final offers that each side will consider before negotiations dissolve or reach an impasse.
Mediation -- The use of a third party (mediator) to encourage both sides to keep negotiating to resolve key contract issues.
Arbitration -- An agreement to bring in a third party to render a binding agreement.
See Learning Goal 3: Outline the objectives of labor unions.
In 2011, the National Football League and National Football League Players Association asked for the assistance of a federal mediator in their attempt to forge a new contract between the players and the league.
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24. The GRIEVANCE RESOLUTION PROCESS
Mediation and Arbitration
The GRIEVANCE RESOLUTION PROCESS
LG3
See Learning Goal 3: Outline the objectives of labor unions.
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25. TACTICS USED in CONFLICTS by LABOR UNIONS
Union Tactics
LG4
Strikes -- A strategy in which workers refuse to go to work.
Primary Boycott -- When a union encourages both its members and the general public not to buy the products of a firm in a labor dispute.
Secondary Boycott -- An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott.
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
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26. TACTICS USED by MANAGEMENT in CONFLICTS
Management Tactics
TACTICS USED by MANAGEMENT in CONFLICTS
LG4
Lockout -- An attempt by management to put pressure on workers by closing the business, thus cutting off workers’ pay.
Injunction -- A court order directing someone to do something or refrain from doing something.
Strikebreakers -- Workers hired to do the work of striking workers until the labor dispute is resolved; called scabs by unions.
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
Employers have had the right to replace striking workers since a 1938 Supreme Court ruling, but this tactic was used infrequently until the 1980s.
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27. WALKING a FINE LINE (Making Ethical Decisions)
Shop-Til-You-Drop is seeking workers to fill the jobs of striking workers.
Many students at your college are employees and others are supporting the strike.
You need money and legally it’s permissible for you to replace striking workers when your not an employee.
What will you do? What are the consequences?
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
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28. CHALLENGES FACING LABOR UNIONS
Future of Unions and Labor-Management Relations
CHALLENGES FACING LABOR UNIONS
LG4
The number of union workers is falling.
Many workers (like airline employees) have agreed to Givebacks -- Gains from labor negotiations are given back to management to help save jobs.
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
The percentage of union membership has fallen over the past fifty years. In % of all workers were unionized; today that number stands at only 12.4%.
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29. LABOR UNIONS in the FUTURE
Future of Unions and Labor-Management Relations
LG4
Union membership will include more white-collar, female and foreign-born workers than in the past.
Unions will take on a greater role in training workers, redesigning jobs and assimilating the changing workforce.
Unions will seek more job security, profit sharing and increased wages.
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
Both public and private sector union members now face challenges as they try to maintain remaining wage and fringe benefit gains achieved in past negotiations.
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30. UNION MEMBERSHIP by STATE
Future of Unions and Labor-Management Relations
LG4
See Learning Goal 4: Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future.
Union Membership by State
The slide presents union membership by state in the U.S.
Washington, California, New York, Hawaii and Alaska lead the states with unionization rates greater than 17%.
Most of the Southern states (Arkansas, Louisiana, Tennessee, Mississippi, North Carolina, South Carolina, Virginia, and Georgia) have the lowest percentage of union workers with unionization rates less than 4.9%.
Today the largest union in the United States is the Service Employees International Union (SEIU) with 2.2 million members.
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31. PROGRESS ASSESSMENT
Progress Assessment
What are the major laws that affected union growth, and what does each one cover?
How do changes in the economy affect the objectives of unions?
What are the major tactics used by unions and by management to assert their power in contract negotiations?
What types of workers do unions need to organize in the future?
1. The major laws that affected union growth are:
- The Norris-LaGuardia Act prohibited employers from using contracts that forbid union activities and paved the way for union growth in the United States.
- The National Labor Relations Act or Wagner Act allowed collective bargaining and created the National Labor Relations Board.
- The Fair Labor Standards Act set a minimum wage and maximum basic hours for work.
- The Labor-Management Relations Act or Taft-Hartley Act amended the Wagner Act and permitted states to pass laws prohibiting compulsory union membership, set up methods to deal with strikes that impact national health and safety, closed-shop agreements and prohibited wage payments for work not performed (featherbedding). This law weakened union power in the U.S.
- The Labor-Management Report and Disclosure Act or Landrum-Griffin Act amended theTaft-Hartley Act and Wagner Act, guaranteed individual rights of union members in dealing with their union such as the right to nominate candidates for union office, vote in union elections, attend and participate in union meetings, vote on union business and examine union records and accounts. The goal of this legislation was to eliminate union corruption.
2. Unions and their objectives have frequently shifted with social and economic trends. In the 1970s, the primary objective was additional pay and benefits; while in the 1980s unions focused on job security. During the 1990s and 2000s, job security remained a key issue as unions tried to cope with global competition and outsourcing.
3. The major tactics used by unions include: strikes, boycotts, work slowdowns and pickets. Management tactics include: lockouts, injunctions and bringing in strikebreakers.
4. To remain relevant, unions must attract new members. This includes more professional, female and foreign born workers. Both the Teamsters Union and Service Employees International Union are targeting workers in health care, technology and finance.
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32. COMPENSATING EXECUTIVES
Executive Compensation
LG5
CEO’s compensation used to be determined by a firm’s profitability or increase in stock price.
Now, executives receive stock options and restricted stock that’s awarded even if the company performs poorly.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Peter Drucker suggested CEO pay should be no more that 20x the lowest paid employee. The average is now 400x.
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33. COMPENSATING EXECUTIVES in the FUTURE
Executive Compensation
LG5
Boards of directors are being challenged concerning executive contracts.
Government and shareholders are putting pressure to overhaul executive compensation.
The passage of the Dodd- Frank Act was intended to give shareholders more say in compensation decisions.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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34. DODD-FRANK ACT
Executive Compensation
LG5
The Dodd-Frank Act implements changes that, among other things, affect the oversight and supervision of financial institutions, provide for a new resolution procedure for large financial companies, create a new agency responsible for implementing and enforcing compliance with consumer financial laws, introduce more stringent regulatory capital requirements, effect significant changes in the regulation of over the counter derivatives, reform the regulation of credit rating agencies, implement changes to corporate governance and executive compensation practices, incorporate the Volcker Rule, require registration of advisers to certain private funds, and effect significant changes in the securitization market.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Morrison & Foerster “Cheat Sheet”2009
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35. The QUESTION of PAY EQUITY
LG5
Women earn 81% of what men earn.
This disparity varies by profession, experience and level of education.
Young women actually earn 8% percent more than male counterparts due to their higher graduation rates.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Today women earn almost 60 percent of the bachelor’s and master’s degrees awarded.
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36. Salaries in Professional Sports Includes Endorsements
Executive Compensation
Salaries in Professional Sports Includes Endorsements
LG5
League
Minimum Salary/
Highest Paid 2014
NGA
$20,000
Tiger Woods $78.1M
Inbee Park $585,000 No End
NTA
---
Roger Federer $71.5M
Maria Sharpova $29M
NFL
$310,000 - $390,000
Drew Brees $51M
NBA
$457,588 - $473,604
Kobe Bryant $61.9M
MLB
$400,000 - $480,000
Alex Rodriquez - $30.3M
NHL
$500,000 - $525,000
Vincent Lecavalier $10M
MLS
$40,000 no change
David Beckham
$6.5M to $47.2M
WNBA
$35,190
Candace Parker $3.1M
NASCAR
$1.5M - $7.5M
Dale Earnhardt Jr. $25.6M
Danica Patrick $15M
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Play Sports!
Ask students: What do you expect to make when you graduate? What do these minimum salaries say about what society values? (Student answers will vary.)
Ask students: Why are the minimum and highest salaries paid to female players so much lower than the male players?
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37. Executive Salaries Executive Compensation LG5
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Play Sports!
Ask students: What do you expect to make when you graduate? What do these minimum salaries say about what society values? (Student answers will vary.)
Ask students: Why are the minimum and highest salaries paid to female players so much lower than the male players?
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38. CEO/ Executive Salaries
Executive Compensation
LG5
CEO/ Executive Salaries
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace. \
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39. EQUAL PAY for EQUAL WORK Equal Pay Act Factors that Justify Pay Differences
Pay Equity
LG5
Skill
Effort
Responsibility
Working Conditions
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Equal Pay for Equal Work
This slide presents the Equal Pay Act factors that justify pay differences: skill, effort, responsibility, and working conditions. The Equal Pay Act prohibits unequal pay to men and women who perform jobs that require substantially the same skills, efforts, responsibilities, etc.
Ask the students: Is it fair that different genders receive different pay? (Most will say “NO.”)
Yet, in the U.S., women earn only about 80% of what men earn. There are, however, significant disparities by profession, education level, etc.
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40. THE SALARY GENDER GAP Age Average Salary 15 to 24 Women - $23,357
Pay Equity
LG5
Age
Average Salary
15 to 24
Women - $23,357
Men - $26,100
25 to 44
Women - $41,558
Men - $55,286
45 to 64
Women - $44,808
Men - $67,040
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
The Salary Gender Gap
This slide presents the inequity in earnings: what women of certain ages earn compared with the average salary earned by a male in the same age range.
Ask the students: What are some of the reasons behind this salary gender gap? (Answers will vary but could include issues like women working part-time to raise children or women leaving the workforce due to family issues.)
If time permits have students read Chapter 3 of Thomas Sowell’s awarding winning book, Economic Facts and Fallacies, which explores this issue in depth and will provide for a rich classroom discussion.
Source: U.S. Census Bureau, accessed June 2011.
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41. VIOLENCE in the WORKPLACE
LG5
OSHA reports homicides account for 16% of workplace deaths.
Violence is the number one cause of death for women in the workplace.
Companies have taken action to deal with potential problems by using focus groups and other interactions.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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42. WARNING SIGNS of POSSIBLE WORKPLACE VIOLENCE
Violence in the Workplace
LG5
Unprovoked outbursts of anger or rage
Threats or verbal abuse
Repeated suicidal comments
Paranoid behavior
Increased frequency of domestic problems
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Warnings Signs of Possible Workplace Violence
Managers and workers must be on the lookout for possible signs of workplace violence.
Most companies do not have formal training or a formal policy to deal with workplace violence.
Ask students to discuss the following question: What actions can management take to prevent workplace violence? (Firms that maintain positive employee relations tend to experience fewer problems. The key to prevention of workplace violence is being proactive.)
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43. WHAT’S SEXUAL HARASSMENT
LG5
Sexual Harassment -- Unwelcomed sexual advances, requests for sexual favors or other verbal or physical conduct that creates a hostile work environment.
Sexual harassment laws cover men, women and foreign companies doing business in the U.S.
Violations can be extremely expensive for businesses.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Students should realize that sexual harassment covers all employees as well as vendors, suppliers and others who come in contact with company employees. Businesses need to take all allegations seriously and develop a protocol for investigating each claim.
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44. KINDS of SEXUAL HARASSMENT
LG5
Quid pro quo sexual harassment involves threats like “Go out with me or you’re fired.” An employee’s job is based on submission.
Hostile work environment sexual harassment is conduct that interferes with a worker’s performance or creates an intimidating or offensive work environment.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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45. DRUG USE in the WORKPLACE
Drug Testing
LG5
Alcohol is the most widely used drug. 9% of heavy drinkers and 10% drug users missed work due to hangover, while 6% went to work drunk or high in October 2013 survey, while 11% heavy drinkers and 18% drug users skipped work in the month of September 2013, alone.
Over 8% of full-time and 10.2% workers aged use illegal drugs and are more likely to be in workplace accidents.
Drug abuse costs the U.S. economy $414 billion in lost work, healthcare costs and crime.
Over 80% of major companies drug test workers.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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46. ELDER CARE in the MODERN HOUSEHOLD
LG5
More and more boomers are taking care of their parents while still working.
31% say this may delay their retirement.
The average cost of care of aging parent is can be between $20-$400K per year, with maintenance fees in care facilities. Approximately $5,534 in local facilites, and $1,000 – $4,000 in your home.
76% say they enjoy taking care of their parents.
54% say it made them closer.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
Elder Care in the Modern Household
As boomers’ parents age, more and more have started bringing them into their homes.
25% of boomers expect to live with their parents again.
Ask students: Do you think this will delay more retirements? What does this mean for the young workforce?
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47. FACING CHILDCARE ISSUES
LG5
The number of women in the workforce with children under three-years-old has increased.
Childcare related absences cost businesses billions of dollars each year.
Who should pay for the cost of childcare – this is a dividing issue among employees and businesses.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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48. BUSINESSES RESPONSE to CHILD CARE
LG5
Benefits can include:
Discounts with childcare providers.
Vouchers that offer payment for childcare.
Referral services identify high-quality childcare facilities.
On-site childcare centers
Sick-child centers.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
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49. INCREASING ELDER CARE CHALLENGES
LG5
Nationwide 29% of the adult population are providing some care to an elderly person.
Care giving obligations cause employees to miss about 15 million days of work per year.
Costs could rise up to $35 billion annually.
See Learning Goal 5: Assess some of today’s controversial employee-management issues, such as executive compensation, pay equity, childcare and elder care, drug testing, and violence in the workplace.
As the population ages caring for one’s parents and other relatives will be a bigger employment related issue. Proactive companies will develop benefits to meet this challenge.
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50. PROGRESS ASSESSMENT
Progress Assessment
How does top-executive pay in the U.S. compare with top-executive pay in other countries?
What’s the difference between pay equity and equal pay for equal work?
How is the term sexual harassment defined and when does sexual behavior become illegal?
What are some of the issues related to childcare and elder care and how are companies addressing those issues?
Executive pay in the U.S. is significantly higher than in other countries. For example, the typical European CEO earns only about 40 percent of what their U.S. counterpart makes.
Equal pay for equal work refers to giving equal pay to men and women who do the same job. This concept was codified in the 1963 Equal Pay Act. Pay equity goes beyond this concept and says people in jobs that require similar levels of education, training, or skills should receive equal pay. For example, the pay of an occupation traditionally considered a women’s job, such as a bank teller, should pay the same as a truck driver typically considered a man’s job.
Sexual harassment refers to any unwelcome sexual advance, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment. This behavior is considered illegal if the conduct unreasonably interferes with a workers’ job performance or creates an intimidating, hostile, or offensive work environment. It is also considered illegal if the sexual harassment constitutes a quid pro quo.
Issues of childcare or elder care are of concern to employers, since these issues account for reduced productivity, absenteeism and high turnover. Another issue to consider is who pays for the care of a child or an aging parent. Companies are addressing these issues by arranging discounts at national child care chains, subsidizing payment for childcare, developing referral services to identify high quality providers of care, creating on-site child care centers or sick-child centers, offering health-spending accounts allowing workers to set aside pretax dollars for elder-care expenses and offering flexible work schedules.
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