Term
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Definition
| Concerns the total profits or economic rents that are available to labor and managment. Both labor and managment prefer situations of great total power |
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Term
| Total Power is influenced by |
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Definition
1. Degree of competition facing the employer ( micro economic factors)
2. State of the economy (macro environment) |
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Term
| What unions do to increase Total Power |
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Definition
1. Limiting competition by lobbying govt
2. Stimulate demand through political action |
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Term
| Two major factors that influence bargaining power |
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Definition
1.Strike Leverage
2. The Elasticity of demand for labor- the wage-employment trade off |
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Term
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Definition
in negotiations the parties will not settle for something far from the potential strike outcome.
Each side loses income in a strike. Bargaining poweris determined by each sides ability and willingness to suffer income loss |
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Term
| Factors that influence labors ability and willingness to asorb income loss |
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Definition
1. Availibility of other Jobs
2. Union Strike Funds
3. Savings
4. Solidarity
5. Anger at managment |
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Term
| Factors that influence Managment's ability and willingness to asorb losses |
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Definition
1. Sustainability of production- how essential are the striking employees?
2. Effect of strike on sales
3. Consquence of strike on profits |
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Term
| Why does Elasticity of demand for labor matter? |
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Definition
1. Wage increases affect employment. The greater the reduction in employment that results from a wage increase, the less workers may be willing to use bargaining power available via their strike threat.
2. strike leverage gives workers the ability to raise wages; elasticity of demand influences whether workers choose to use their wage raising capability |
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Term
| Marshalls four conditions |
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Definition
1. The availablity of substitutes
2. The cost of capital
3. The Labor Demand
4. The percentage of labor as part of total costs |
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Term
| Theories of union growth: |
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Definition
1. Business Cycle Influence
2. Critical Periods and Events |
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Term
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Definition
1. Union growth is generally procyclical
U.S. union membership in 1860-1930, other countries, not true in the depression
2. Labor has more power in booms |
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Term
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Definition
Certain events will trigger union growth:
1. 1930s. World War II, 1960s
2. Role of law individuals (strong leadership of lewis and others during 1930s, particular events and social forces |
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Term
| Theories of union decline |
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Definition
1. Change in Economic and Demographic structure
2. Union Supression by employers
3. Union Substitution by employers
4. Union Substitution by Government
5. American Ideology
6. Internal Union Factors |
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Term
| Changing Economic and demographic structure |
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Definition
1. More jobs in the the south, rural and west areas
2. New workers young and very old workers, women
3. Change in demographic structure
4. Farber says it really explains 40% decline
Counter Arguement: Couldn't unions have changed their strategies to make themselves more attractive? Sweden adopted more proffesional white collar workers into their union |
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Term
| Union Supression by Employers |
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Definition
1. Illegal and legal campaign activities: firing activists. 5% of union supporters illegally fired for union activity
2. Counter arguement- union decline even before sophisticated consultants used to stop union in election campaign. In hard times in the past, unions managed to overcome great challenges.
3. Campaign focused of long run employer practices. |
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Term
| Union Substition by Employers |
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Definition
1. Progressive Personnel policies, HRM
2. Counter arguement: Why didn't employers in other countries do the same kind of policies? ( Maybe they have just begun to do so- France, Japan, Britian have had recent declines in unions) |
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Term
| Union Substitution by Government |
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Definition
1. Substantive employment rights regulations such as OSHA, EEO, ERISA
2. Counter-arguement: in Scandinavian countries where government substitution is stronger, not true. not a strong explanation |
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Term
| American Ideology and Values |
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Definition
1. Lipset- US workers are individual and not class-oriented, While canadians are communitarian; historical absence of aristocracy in the U. S.
2. Are U.S. and Canadian culture so different? |
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Term
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Definition
1. Lack of democracy, lack or organizing intiatiative little representational imagination
2. If this is the true explanation, then unions should through internal reform be able to overcome their organizing problem |
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Term
| Recent U.S. labor efforts to improve organizing |
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Definition
1. More aggressive focus on organizing
2. Greater emphasis on card check
3. "Rank and File" organizing approach
4. Associate Union Programs
5. Union Summer Program
6. Links between organizing and internal unon deomcracy and revised rep strategies |
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Term
| Why is bargaining structure important?(2) |
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Definition
1. descriptive knowledge of bargaining structure helps one understand how CB works; tells who is rep'ed by the contractand who is at the bargaining table
2. bargaining structure is affected by bargaining power and influenced by power held by each side |
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Term
| Type of Bargaining Structure where Employee interest covered (2) |
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Definition
1. Craft- Single Trade
2. Industrial- Workers of all skill grades in one unit |
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Term
| Bargaining Structure where Employer interests covered (3) |
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Definition
1. Decentralized- single plant
2. intermediate case- multiplant but single company
3. centralized -multiplant, multicompany |
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Term
| Determinates of Bargaining Structure (3) |
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Definition
1. Election unit determination by NLRB
2. Bargaining power
3. Common interests v. egos |
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Term
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Definition
| Informal centralization- key settlement suchas auto and steel recieve much media attention |
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Term
| Why Pattern Bargaining? (2) |
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Definition
1. Workers wants are relativistic and not absolute- workers are concerned with equity, orbits or coercive comparison
2. Leaders use pattens to legitimize their bargains--company and union leaders must justify their settlement to suspicious members and union counter rivals. |
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Term
| Two types of recent decentralization |
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Definition
1. Industry or Company-wide agreements downward to more fragmented bargaining structures
2. Issues being pushed down from company to plant level. Variation in pay is spreading in some cases through introduction of pay for knowledge or gain sharing in industries |
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Term
| Key Features of the organizing process(6) |
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Definition
1. Authorization Cards
2. NLRB Oversight
3. Management Campaigns
4. Union Campaigns
5. Election Victory |
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Term
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Definition
1. 30% needed for NLRB election
2. IF union gets 50% cards signed management can voluntarily recognize |
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Term
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Definition
A. Considers Common interest, admin feasibility, employer and union interest
B. Craft v. Industrial has been a source of controversy
C. Both have strong interests in winning election, unit could be political
D. Union has right to circulate literature in nonwork areas on nonwork times |
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Term
| Management Campaigns: spectrum of alternative approaches(4) |
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Definition
1. Management strategy is guided by costs/ benefit approach and by managements ideology
2. Oppositional strategies-intensity range from non-confrontational to aggressive opposition
3. Neutrality or card check
4. Acceptance of union-typically part of a participatory bargaining -favorable contract |
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Term
| Things to consider when running oppositional campaign as management |
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Definition
1. Likelihood of success for each approach and the short and long run costs
2. winning the battle but not the war
3. Delay - stop dynamic union support
4. Give captive audience speeches; union can't |
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Term
| Union Campaigns Types (5) |
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Definition
1.Traditional Top Down Approach-leaflets
2.Rank and File- community, rights issues as demands
3. Union corporate/strategic campaigns-govt pressure
4. Card Check push
5. Participatory bargain |
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Term
| Election victory can be misleading because: |
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Definition
| Does not mean the union will win a contract-- 40% of wins fail to achieve a first contract |
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Term
| Individual Wants from a Union(3) |
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Definition
1.Needs- wages, fringes, job security, healt and safety, work rules etc. How will union address these?
2. Due Process- assessment, work-supervisor relations individual participation in desicions
3. Evidence shows family back ground plays an important role in the individual's reaction to union appeals |
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Term
| Dynamic Nature of Organizing Factors (4) |
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Definition
1. Role of the group
2. Role of Leaders
3. Standardization and Rules in order to help the lowest level of worker
4. Martyr idea- find someone who is a great worker hurt by managment |
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Term
| High Wage Service Jobs and types of unionization (3 Facts) |
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Definition
1. Examples: lawyers, doctors, educators, consulting, financial services, pilots, actors, pro-sports
2. Some unionization- especially in public sector ( teachers), airlines, acting, sports, hospitals
3. Growing unions among Doctors, especially those working for HMOs and large bureaucracies |
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Term
| Middle Wage Service Jobs(3) |
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Definition
1. Example customer service reps, retail clerks, truck drivers
2. moderate level of unionization e. g. retail inter state trucking
3. la grocery store strikes shoes challenges unions faces |
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Term
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Definition
1. Housekeepers, nursing home, waitresses, janitors
2. Low unionization with some recent inroads e.g. nursing homes
3. Barriers to unizoniation: high turnover, few resources, employer opposition |
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Term
| Future Employment Growth(2) |
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Definition
1. BLS 90% of net employment growth in the next ten years will be in the services
2. Fear of outsource of service work- computer prgmers, radiologists |
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Term
| Types of Nonunion industrial relations |
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Definition
1. Paternalistic-informal, managerial discretion, low skill, piece rates, temp work, hierarchical and personal
2. Bureaucratic- formal, rule bound, written policies, detailed classification, job evaluation, cyclical
3. HRM- flexible rules, strong corporate culture, ombudsman, teams, pay-for-knowledge, and contingent pay, career development, individual |
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Term
| Union Industrial Relations (3) |
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Definition
1.Conflict: inflexible rules, aggressive management style, excessive delays in conflict, detailed classification, standard rates, unstable, combative
2.New Deals:Formal Rules, Adversarial management styles, grievance system complaint procedure, detailed classification work organization, standard rates, seniority based layoffs, arms length
3. Participatory: flexible rules, involvement management style, employment security, overlapping roles |
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Term
| Strike Related Facts can be explained: |
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Definition
1. strikes occur in only a small percentage of negotiations
2. strikes occur more when labor has more power, like times when economy is growing
3. Strikes sometimes occur over apparently trivial issues |
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Term
| Hick's Model of miscalculation as a cause of strikes (5) |
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Definition
1. Strikes create a max contract zone when there are common expectations of the strike outcome
2. Extremely Divergent expectations can lead to the absence of a contract zone
3. Sources of miscalculation: a. new relationship b. change in econ conditions c. poor negotiator skills d. the confusion caused by bluffs
4. Hicks model DOES NOT explain why strikes are procyclical
5. Mediations can reduce miscalculation and help parties find settlements in a contract zone |
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Term
| Behavioral Theory of Strikes (4) |
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Definition
1. Strikes may be and expression of anger and isolation. --Kerr Mining, Long-shoring, and lumbering have more strikes rates across time and countries
2. Strikes are a learning device- they are used to teach either workers or top executives what is possible
3. Strikes can be an organizing device used to create the union. In this case, strikes may be used to raise worker expectations
4. Each of the three above can be considered a source of miscalculation |
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Term
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Definition
1. Militancy leads to labor power AND strikes; this can explain why more strikes happen at times of labor expansion
2. Management likes the status quo; it takes labor's initiative to change employment conditions
3. Is management regularly miscalculating when labor's bargaining power improves? |
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Term
| Walton and Mckersie: Four Sub-Processes of bargaining |
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Definition
1. Distributive Bargaining
2. Integrative Bargaining
3. IntraOrganizational Bargaining
4. Attitudinal Structuring |
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Term
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Definition
Win-lose, zero-sum negotiations. Example: Wage increases as a union demand with the threat of strike.
Tactics: overstate demands, overstate demands, information is power, to be closely held, arms length communication, low trust |
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Term
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Definition
Problem Solving Joint Gain
like a technological change
Tactics: Focus on specific problems, share information, multiple voices, high trust. |
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Term
| The difficulties in accomplishing integrative bargaining |
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Definition
1. Problem indentification and resolution
2. Every integrative gain also requires a desicion on the distribution of gain e.g. longshoring mechanization, typesetting
3. Tactical Conflicts- confusing tactics |
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Term
| Intra-Organizational bargaining(3) |
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Definition
1. differences between union leaders and workers interests, leaders want large organizations and may have more information, workers can be self interested and more militant
2. difference across workers
3. Difference across managment |
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Term
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Definition
Trust Building
1. To convince the other side of intentions in the face of uncertainity, e.g. short v. long run implications. the parties are worried that change will come back to haunt them; each worries if the other side is well intentioned.
2. Trust can facilitate integrative bargaining |
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Term
| Negotiations application to other things: |
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Definition
1. International Relations- countries have distributive as well as integrative issues; the penalty for disagreement is a costly war
2. Trust building occurs on a repeated basis; frequent in jobs in the business world |
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Term
| New Interest-based Bargaining (3) |
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Definition
1. The integrative vs. distributive framework can be used to understand what win-win bargaining is all about.
2. Key difference in the method and style of bargaining in interest based vs. traditional bargaining
3. difficult to sustain win-win bargaining |
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