1. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C3-1 LABOR RELATIONS OUTCOMES: INDIVIDUALS AND THE ENVIRONMENT Employee reactions to perceived workplace injustices and employer reactions to competitive pressures are two major examples that illustrate how labor relations outcomes are determined by the environment and individual choices.

2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C3-2 THE LABOR RELATIONS ENVIRONMENT ECONOMIC ENVIRONMENT Forces of economic change favor workers w/ education and skills –Unemployment among college grads 3%, high school grads 5.5%, high school dropouts 8.5% –In 1980s and 90s, demand for educated workers grew more quickly than supply, leading to increased pay Wages of men over age 25 w/ four-year degree now 41% higher than similar men w/ HS degree, compared to 21% higher 25 years ago For women, 46% today compared to 25% –Is demand for educated workers slowing, given ‘offshoring’?

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C3-3 BOX 3.5: SIX ETHICAL FRAMEWORKS

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. UTILITY AND OUTSOURCING Do you as a consumer maximize your utility by choosing lower-priced good of equal quality, regardless of where that good is made? Does firm maximize profits by employing lowest-cost resources of sufficient quality? Does firm have ethical obligation to employ higher-cost domestic resources, even if result is lowered profitability?

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Ethics in Action: The SHRM Code of Ethics Fairness and Justice: HR professionals are ethically responsible for promoting and fostering fairness and justice for all Ees and their organizationsFairness and Justice Is a legal union avoidance campaign consistent w/ SHRM’s code of ethical standards?

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C3-6 EMPLOYEE REACTIONS TO WORKPLACE INJUSTICE Possible responses to workplace injustice include: Exit Individual voice Collective voice Resistance (work withdrawal, shirking, or more…) Silence Response chosen in specific situations determined by environment and individual choices. Critical question for this course is under what circumstances will employees choose collective voice.

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. C3-7 EMPLOYER REACTIONS TO COMPETITIVE PRESSURES Factors that shape employers’ reactions to unions and competitive pressures include: –Economic environment –Increased competition from domestic nonunion companies and international companies –Business pressures for flexibility and competitiveness in the global economy –Favorable pro-business political and social climate (allows and encourages employers to use replacement workers) –Managerial values