1. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-1 NickelsMcHughMcHugh Nickels Cover

2. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-2 Chapter 1212 Dealing With Employee- Management Issues and Relationships 1-2

3. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-3 Workers Unionized Source: Source: Bureau of Labor Statistics

4. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-4  Pro-union attitudes  Poor management/ employee relations  Negative organizational climate  Poor work conditions  Union’s reputation  Job security  Anti-union attitude  Good management/ labor relations  Positive organizational climate  Good work conditions  Union’s reputation  Peer pressure Why Employees Join Unions Why Employees Don’t Join Unions

5. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-5 History of Labor Unions Local Craft Unions OrganizedLocal Craft Unions Organized Knights of LaborKnights of Labor AFL OrganizedAFL Organized CIO OrganizedCIO Organized AFL/CIOAFL/CIO

6. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-6 Legislation & Collective Bargaining Norris-La Guardia Act National Labor Relations Act Collective Bargaining National Labor Relations Board Certification vs. Decertification

7. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-7 Factors That Affect the Collective Bargaining Process Union Rep. Mgmt. Rep. Bargaining Topic State of Economy Goals of Bargaining Parties Precedents in Bargaining Labor Law Public Sentiment Issues Being Discussed

8. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-8 % Union Membership by Industry (2002) Source: Source: Bureau of Labor Statistics

9. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-9 Objectives of Organized Labor 1970s- Pay/Benefits1970s- Pay/Benefits 1980s- Job Security & Union Recognition1980s- Job Security & Union Recognition 1990s- Job Security/ Global Competition1990s- Job Security/ Global Competition

10. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-10 International Union Membership Sweden84%Sweden84% Italy47%Italy47% United Kingdom21%United Kingdom21% Germany33%Germany33% Canada33%Canada33% Japan26%Japan26% U.S.13.2%U.S.13.2% France11%France11%

11. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-11 Organized Labor Issues Right-To-Work Laws & Open ShopRight-To-Work Laws & Open Shop Union Security ClausesUnion Security Clauses Closed ShopClosed Shop Union ShopUnion Shop Agency ShopAgency Shop

12. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-12 Grievance Resolution Process

13. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-13 Mediation/Arbitration Bargaining ZoneBargaining Zone Mediation/Mediator- suggestionsMediation/Mediator- suggestions Arbitration- binding decisionArbitration- binding decision

14. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-14 Union Tactics StrikeStrike SickoutsSickouts BoycottBoycott –Primary –Secondary

15. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-15 Management Tactics LockoutsLockouts InjunctionInjunction StrikebreakersStrikebreakers

16. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-16 Employee-Management Issues of Future GivebacksGivebacks Broader RepresentationBroader Representation Executive CompensationExecutive Compensation Comparable WorthComparable Worth Sexual HarrassmentSexual Harrassment Child CareChild Care Elder CareElder Care Aids/Drug Testing, Violence in WorkplaceAids/Drug Testing, Violence in Workplace Employee Stock Ownership Plans(ESOPs)Employee Stock Ownership Plans(ESOPs)

17. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-17 Does The Pay Match The Effort? CEO 2002 Pay Stock Return Steve Jobs (Apple Computer) $78.1M-34% David Cote (Honeywell)$68.6M-27% John Chambers (Cisco Systems) $54.8M-27% Scott McNealy (Sun)$31.7M-74% Pat Russo (Lucent Technologies) $38.2 M -75% Source: Fortune, April 28, 2002, pg. 58.

18. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-18 Does It Pay to be CEO of a Nonprofit? NameInstitutionTitleSalary Thomas Lofton Lilly Endowment Chairman$775,000 Joseph Volpe Metropolitan Opera Gen. Man. $725,000 Ralph Feigin Baylor College of Medicine President$715,000 Judith Rodin Univ. of Pennsylvania President$690,400 Susan Berresford Ford Foundation President$616,000 Source: BusinessWeek, December 2, 2002

19. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-19 Percentage Gains (1990-2002) Source: Institute for Policy Studies and United for a Fair Economy

20. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-20 CEO Pensions & Years Worked to Earn Them CEO Years Served Pension Value Dick Brown (EDS)4$19.6M Mike Armstrong (AT&T)5$17.4M Gary Wendt (Conseco)2$17.3M Stephen Wolf (US Air) 6$15.0M Leo Mullin (Delta)5$11.5M Source: Fortune, April 28, 2003, pg. 70.

21. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-21 CEO Pay as Multiple of Average Worker Pay Source: Business Week, February 24, 2003.

22. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-22 Women’s Earnings as % of Men’s by Age Source: Source: Business and Professional Women/USA

23. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-23 Types of Sexual Harassment  Gender Harassment  Seductive Behavior  Sexual Bribery  Sexual Coercion  Sexual Imposition

24. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-24 You Make the Call 1.Two colleagues walk by you as one delivers the punch line to a very dirty joke. You feel the joke is inappropriate. Is this sexual harassment under the law? 2.An employee meets with you and tells you that, five years ago, a then-supervisor was sexually harassing him. What do you do? 3.An employee thinks she may have been sexually harassed. She explains the circumstances to you and asks, “Wouldn’t you be upset?” What should be your response?

25. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-25 You Make the Call (cont’d) 4.You’re investigating a sexual harassment claim, and all five of the witnesses you’ve interviewed so far have backed up the claim of sexual harassment. Should you continue to interview others? 5.After conducting a thorough investigation, you conclude that sexual harassment has not taken place. What’s next?

26. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-26 Percentage of Workers with Aging Relatives

27. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-27 Major Types of Workplace Violence