HRM 4570 ILR Homework 1
Rain Ashbell
3HRM4570ILRCh2.2UnionsGoodorBadOnlineLecture2019-20audio1.pptxChapter 2 Part 2
Labor Unions: Good or Bad?
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 2 Part 2 Labor Unions: Good or Bad?
1
2-2
Four Schools of Thought
The Mainstream Economics School
The Human Resource Management School
The Industrial Relations School
The Critical Industrial Relations School
So are labor unions good or bad? To answer this question, we need to understand the four Schools of Thought about the Employment Relationship
Our last lecture covered the first three school of thoughts,
1st. The mainstream economics school or the Chicago school of economics
2nd. The human resource management school
3rd. The industrial relation school or the institutional economics school
Today, we are going the discuss the 4th school of thought,
The critical industrial relations school or the Marxist school
2
The Critical Industrial Relations School
The fourth school of thought about labor relations in critical industrial relations school. The cartoon illustrates an example of the critical IR school.
According to Industrial Workers of the World (IWW) ideologues, industrial unionism was the logical outgrowth of modern economic development. The displacement of skilled workers by modern machinery and the monopolization of entire industries by trusts had made the practice of craft unionism obsolete. Industrial unionism aimed to reorganize labor in accordance with the scientific principles of capitalist development.
However, the IWW viewed industrial unionism as more than just an adjustment by labor to present conditions. It was also preparation for the future society the IWW intended to create. Industrial unionism provided a structural blueprint for the continuance of production following the overthrow of capitalism. Being organized industrially, a general strike initiated by the workers would lock out the employers and allow for the peaceful conquest of the means of production through which the workers would control industry and use the world's resources to benefit the many instead of enriching the few.
Thus, the IWW linked the everyday struggle for better working conditions with the revolutionary goal of overthrowing capitalism.
3
Traditionally labeled “Marxist industrial relations” and also referred to as a radical perspective
The “critical” label comes from being critical of existing societal institutions and social orderings
The Critical Industrial Relations School
The critical industrial relations school, traditionally labeled “Marxist industrial relations,” and also referred to as a radical perspective,
The “critical” label comes from being critical of existing societal institutions and social orderings
4
The critical school
Emphasizes that capitalist institutions do not simply exist but are created by society
Focuses on how dominant groups design and control institutions to serve their own interests
Initiatives that appear to benefit workers can be seen as reflecting class interests.
The Critical Industrial Relations School
The critical school
Emphasizes that capitalist institutions do not simply exist but are created by society
This school focuses on how dominant groups design and control institutions to serve their own interests, albeit imperfectly due to resistance from competing groups.
Initiatives that appear to benefit workers can be seen as reflecting class interests.
A labor law that legally protects workers who try to unionize is seen as an attempt to modify the working class and prevent it from agitating for deeper changes in the capitalist system.
Within their own organizations, employers are seen as structuring the organization of work and human resource management practices to serve their interests at the expense of labor.
The division of labor is viewed as a strategy to make labor easily replaceable and therefore weak.
5
The causes of labor problem
Control of society’s institutions
The means of production by specific groups or classes
The solutions to the labor problem
Restructuring of the nature of capitalism
Replacing capitalism with socialism
Labor unions can be important in critical industrial relations
The Critical Industrial Relations School
The cause of the labor problem is believed to be the control of society’s institutions and the means of production by specific groups or classes. Capitalists or business owners own the means of production.
The solution to the labor problem is a significant restructuring of the nature of capitalism—such as replacing capitalism with socialism.
Labor unions can be important in critical industrial relations.
Strong, militant unions can aid workers’ struggles with capitalism by mobilizing and raising the consciousness of the working class and fighting for improved compensation, better working conditions, and greater control over workplace decision making.
6
In critical industrial relations thought
The desired mechanisms for governing the workplace are worker control or socialism
The Critical Industrial Relations School
In critical industrial relations thought believes that
the desired mechanisms for governing the workplace are worker control or socialism
7
Labor unions are important but inadequate
One key vehicle for aiding labor’s struggle against capitalists and for protecting workers; but because of capitalism’s inherent imbalances, greater sociopolitical changes are needed for reform
The Critical Industrial Relations School
Therefore, the Critical Industrial Relations School suggests that
Labor unions are important but inadequate
One key vehicle for aiding labor’s struggle against capitalists and for protecting workers; but because of capitalism’s inherent imbalances, greater sociopolitical changes are needed for reform
8
The fundamental assumptions of human resources and industrial relations
Labor problem of the early 20th century
Low wages for long hours under autocratic supervision and periods of insecurity
Can be traced to four possible underlying causes
Market failures, poor management, unequal bargaining power and the domination of labor by the capitalist class
Four Schools of Thought
The Fundamental Assumptions of Human Resources and Industrial Relations.
Low wages for long hours of dangerous work under autocratic supervision and periods of insecurity can be traced to four possible underlying causes:
Market failures
Poor management
Unequal bargaining power between employers and individual employees
The domination of labor by the capitalist class.
9
Causes of the labor problem
The Mainstream Economics School
The Human Resource Management School
The Industrial Relations School
The Critical Industrial Relations School
Market failures
Poor management
Four Schools of Thought
Draw a line to the correct answer.
Unequal bargaining power
The domination of labor by the capitalist class
Let’s work on one practice question. Please for each causes of the labor problem, please Draw a line to the correct answer.
10
Causes of the labor problem
The Mainstream Economics School
The Human Resource Management School
The Industrial Relations School
The Critical Industrial Relations School
Market failures
Poor management
Four Schools of Thought
Draw a line to the correct answer.
Unequal bargaining power
The domination of labor by the capitalist class
Here are the answers.
11
Table 2.2 - Four Schools of Thought about Labor Unions
Table 2.2. summarizes the four schools of thought about labor unions and discusses the key predictions of each school
One important method for answering the question of whether unions are good or bad is conceptual.
In mainstream economics unions are harmful because they are monopolies that impair economic efficiency. Unions may exist, but they are bad. The preferred method of workplace governance is reliance on competitive markets.
In the human resource management school, unions are an indication that management is not successfully creating motivated and efficient workers via firm-created human resource management policies. Unions may exist, but they are unnecessary.
Within the intellectual framework of the industrial relations school, unions are a critical part of the solution to the labor problem because collective, not individual, bargaining is needed to match corporate bargaining power and because independent employee voice is important in a democratic society. The preferred method of workplace governance is a combination of government standards and labor union representation.
In critical industrial relations thought, unions are either management tools of worker suppression or worker tools of power and revolution, though neither of these are mainstream U.S. beliefs. The desired mechanisms for governing the workplace are worker control or socialism.
12
What is the nature of labor?
Mainstream economics views the purpose of the economic system as consumption
Labor is just another commodity or machine in the production process.
The other three schools reject the belief that labor is just a commodity
Instead see labor as human beings with aspirations, feelings, and rights
Work fulfills important psychological and social needs
Four Schools of Thought
What is the nature of labor?
Mainstream economics views the purpose of the economic system as consumption.
Labor is just another commodity or machine in the production process.
The other three schools (human resource management, industrial relations, and critical industrial relations) reject the belief that labor is just a commodity and
instead see labor as human beings with aspirations, feelings, and rights.
Work fulfills important psychological and social needs and provides more than extrinsic, monetary rewards that support consumerism.
13
Are employers and employees equals in the labor market and the legal arena?
Fundamental assumptions of mainstream economics, such as perfect information and no transaction costs, are fulfilled
The other schools of thought assert that employers and employees are not equals
Lack of worker savings and persistent unemployment can cause individual workers to have inferior bargaining power relative to employers
Four Schools of Thought
Are employers and employees equal in the labor market and the legal arena?
The assertion that employers and employees are equal is equivalent to believing that the fundamental assumptions of mainstream economics, such as perfect information and no transaction costs, are fulfilled.
The other schools of thought, however, assert that employers and employees are not equals, either in the labor market or in the legal arena.
Lack of worker savings and persistent unemployment can cause individual workers to have inferior bargaining power relative to employers
14
What is the nature of conflict between employers and employees?
The human resource management school has a unitarist view of employment relationship conflict
conflict is seen as a manifestation of poor HRM policies
The industrial relations school sees the workplace as characterized by multiple interests
Embraces a pluralist view of conflict in the employment relationship
See government laws and labor unions as balancing conflict
Four Schools of Thought - Nature of Conflict
What is the nature of conflict between employers and employees?
Three different answers distinguish the human resource management, industrial relations, and critical industrial relations schools of thought—and are therefore important. The human resource management school has a unitarist view of employment relationship conflict.
Conflict is not seen as an inherent or a permanent feature of the employment relationship; conflict is seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts.
In contrast, the industrial relations school sees the workplace as characterized by multiple interests—that is, a plurality of legitimate interests akin to a pluralist political system—so this school embraces a pluralist view of conflict in the employment relationship.
Believers in pluralist workplace conflict see government laws and labor unions as balancing conflict—striking a balance among efficiency, equity, and voice.
15
Employment relationship conflict and critical industrial relations school
Conflict is not limited to higher wages or better benefits
It is a social conflict of unequal power relations or class conflict
Unequal social relations pervade all capitalist institutions
It is inadequate to think about balancing the conflict between labor and management
Four Schools of Thought - Nature of Conflict
The critical industrial relations school believes in an inherent conflict between employers and employees, but it is significantly broader than the limited economic conflict in the pluralist view.
Conflict is not limited to higher wages or better benefits;
it is a social conflict of unequal power relations or class conflict.
Unequal social relations pervade all capitalist institutions
It is inadequate to think about balancing the conflict between labor and management
16
If labor–management conflict is embedded throughout society
Then labor unions ultimately are inadequate for challenging the power of employers
Four Schools of Thought
In contrast, if employment relationship conflict is in fact pluralist (the industrial relations belief in the existence of some inherent conflicts of interest), it follows that industrial democracy can be achieved only by traditional labor unions that are independent of management. Only independent unions can fight for the protection necessary for industrial democracy such as free speech and due process protections.
If labor–management conflict is embedded throughout society
Then labor unions ultimately are inadequate for challenging the power of employers
17
To understand labor unions and labor relations it is imperative to understand the beliefs of the different schools of thought
These provide the keys to a reasoned than a stereotypical understanding of labor unions
It is important to explicitly compare collective bargaining to these alternative methods
For determining wages and other terms and conditions of employment
The Continued Relevance of Labor Problem
All workplaces need rules. In addition to standard rules of behavior and performance, these rules also include compensation, benefits, policies, and procedures.
To understand labor unions and labor relations it is imperative to understand the beliefs of the different schools of thought
These provide the keys to a reasoned than a stereotypical understanding of labor unions
It is important to explicitly compare collective bargaining to these alternative methods
For determining wages and other terms and conditions of employment
18
Practice Questions Which School of Thought ?
The Mainstream Economics School
The Human Resource Management School
The Industrial Relations School
The Critical Industrial Relations School
Let’s try to apply the four schools of thought about labor unions to better understand different perspectives.
We will try a few Practice Questions For each case, please try to answer Which School of Thought is applied?
19
John F. Kennedy
Which school of thought is behind John F. Kennedy’s quote that “The American labor movement has consistently demonstrated it’s devotion to the public interest. It is, and has been, good for all America.” ?
20
The Industrial Relations School
John F. Kennedy
That’s right. The answer is The Industrial Relations School
The industrial relations school suggest that unions are a critical part of the solution to the labor problem because collective, not individual, bargaining is needed to match corporate bargaining power and because independent employee voice is important in a democratic society. The preferred method of workplace governance is a combination of government standards and labor union representation.
21
The Life of Julius: How Unions Hurt Workers
https://www.youtube.com/watch?v=RPndzQVeVMY
Please click on video and watch How Unions Hurt Workers. Please bear in mind, the comments in the video may not be true.
Which school of though is this?
22
The Life of Julius: How Unions Hurt Workers
The Mainstream Economics School
The answer is The Mainstream Economics School.
to those who believe in perfect competition and the mainstream economics school, Labor unions are bad or harmful.
Because Unions are seen as interfering with the discipline of the market by protecting lazy workers, since Unions’ monopoly power interferes with the efficient operation of the economy
23
Join a Union - President Obama
Please click on the video and think which school of thought is behind President Obama’s comments?
24
Join a Union - President Obama
The Industrial Relations School
That’s right. It’s the The Industrial Relations School. The industrial relations school believes that, if the labor problem stems from unequal bargaining power, the solution is to increase workers’ bargaining power by forming independent labor unions and pursuing collective bargaining.
25
Union Solidarity Rap
Please click on the video and watch the union solidarity rap. Which schools of thought is behind the union solidarity rap?
26
Union Solidarity Rap
The Industrial Relations School
The Critical Industrial Relations School
That’s right. Both The Industrial Relations School and The Critical Industrial Relations School believe that unions are important and it’s essential for union workers to act in solidarity.
27
Crises of Capitalism
Please click on the video and watch the crises of capitalism. Which school of thought is behind the crises of capitalism
28
Crises of Capitalism
The Critical Industrial Relations School
The answer is The Critical Industrial Relations School. Strong, militant unions can aid workers’ struggles with capitalism by mobilizing and raising the consciousness of the working class and fighting for improved compensation, better working conditions, and greater control over workplace decision making.
29
There are internal contradictions of capital accumulation.
Workers lack bargaining power and purchasing power.
Capitalism never solves its crisis problems, it moves them around geographically
The Crises of Capitalism suggests that
To summarize, the Crises of Capitalism suggests that
There are internal contradictions of capital accumulation.
Workers lack bargaining power and purchasing power.
Capitalism never solves its crisis problems; it moves them around geographically
30
We have come to the end of our lecture today. If you have any questions, please feel free to email me.
See you next class!
31
