Today's Lecture Note
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OA108 Introduction to Business
Chapter 11: Labor Management Relations
I. Emergence of Labor Unions
A. Labor Union: A group of workers who have banded together to achieve common goals in the key areas of wages, hours, and working conditions.
B. The Need for labor Unions:
1. Each worker could specialize in some aspect of the production process.
2. Bringing together numerous workers also increased output.
3. Specialization made them dependant on their livelihood.
II. The History of U.S. labor Unions
A. Two types of labor unions on the U.S.
1. Craft Union: unites skilled workers in a specific craft or trade, such as carpenters, painters, printers, and heavy-equipment operators.
2. Industrial Union: combines all workers in a given industry, regardless of their occupations or skill levels.
B. AFL -American Federation of Labor: originating from the Knights of Labor to later split into fractions and becoming the national union of affiliated, individual craft unions.
C. CIO - Congress of Industrial Organizations: the national union of affiliated individual industrial unions.
III. Local, National, and International Unions
A. National Union: joins together many local unions, which makes up the entire union organization structure.
B. Local Union: operates as a branch of a national union representing union members in a given geographic area.
C. International Union: a union with members outside the United States.
D. Federation: brings together many national and international unions to serve mediation and political functions.
IV. Labor Legislation
A. Right to work laws: prohibits union shops and outlaw compulsory union membership.
B. Boycott: an attempt to prevent people from purchasing a firms goods and services.
V. The Collective Bargaining Process
A. Steps in starting a union:
1. Determine employee interest in forming union.
2. Collect signatures of 30% of employees on authorization cards.
3. Hold secret ballot election under auspices of NLRB - National Labor Relations Board.
4. Majority votes Yes: union is certified
No: union is not certified
B. Cost of Living Adjustment (COLA) Clauses: is designed to protect the income of the workers during periods of inflation by increasing wages in proportion to increase in the CPI - Consumer Price Index.
C. Give Back: wage and benefit concessions to help employers remain competitive and continue to provide jobs for union workers.
VI. Settling Union Management Disputes
A. Mediation: process brings in a third party called Mediator to make recommendations for settling differences.
B. Arbitration: process brings in a impartial third party called Arbitrator to render a binding decision in the dispute.
VII. Weapons of Union and Management
A. Lockout: a management strike to bring pressure on union members by closing the firm.
B. Strike breakers: nonunion workers who cross picket lines to fill the jobs of striking workers.
C. Injunction: a court order prohibiting some practice to prevent excessive picketing or certain unfair union practices.
VIII. Employee-Management Relations in Nonunion Organizations
A. ARD - Alternative Dispute Resolution Programs: other options for solving their grievances .
B. Peer Review Board: three peer employees and several managers handle disputes.
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