Labor Relations week 2
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IPPT_Ch05_Budd6e.pptxChapter 5
Labor and Management: Strategies, Structures, and Constraints
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Learning Objectives
Compare the traditional United States union strategies and their alternatives.
Understand the organizational structure of unions and the labor movement in the United States.
Discuss the range of possible management strategies toward labor unions and how they relate to human resource strategies and business strategies.
Analyze how the labor relations environment influences and constrains labor relations outcomes.
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Introduction
Industrial relations school of thought
Mixed-motive employment relationship conflict.
Employees and employers have shared interests.
But also an inherent conflict of interest.
So conflict is natural and to be expected, not pathological and to be suppressed.
Labor law seeks to design systems and policies to manage this conflict to create productive workplaces that balance efficiency with equity and voice.
Within this legal framework, labor unions and employers design strategies and build organizational structures to pursue their objectives.
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Labor Union Strategies 1
Labor history reveals a variety of alternative union strategies
Political emphasis of the National Labor Union.
The business unionism of the A F L.
Revolutionary approach of the I W W.
Since the 1950s, however, United States labor unions have primarily followed a business unionism philosophy
Within this, traditional emphasis on a servicing model to pursue job control unionism through industrial unions.
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Labor Union Strategies 2
But pressures to change
Business unionism versus social unionism.
Servicing model versus organizing model.
Job control unionism versus employee empowerment unionism.
Industrial unionism versus craft or occupational unionism.
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Labor Union Strategies 3
Table divided into two columns summarizes labor union strategies. The column headers are marked as: business unionism and social unionism.
| Business Unionism | Social Unionism |
| Strong workplace unions | Strong community networks |
| Collective bargaining is key | Workplace, social, and political action |
| Acceptance of capitalist institutions | Critical of status quo |
| Equity through workplace union protection | Equity through social justice |
| Voice through workplace union representation | Voice through political and social movement |
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Labor Union Strategies 4
Table divided into two columns summarizes labor union strategies. The column headers are marked as: servicing model and organizing model.
| Servicing Model | Organizing Model |
| Workers pay dues in return for protection through collective bargaining and grievance procedure | Mobilize workers for empowerment and action |
| Workers consume union services | Workers participate in union and workplace activities including organizing |
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Labor Union Strategies 5
Table divided into two columns summarizes labor union strategies. The column headers are marked as: job control unionism and employee empowerment unionism.
| Job Control Unionism | Employee Empowerment Unionism |
| Focus on specific job rights | Focus on creating procedures for empowerment |
| Seniority and job classifications are important | Skills are important |
| Equity through standardization and equal treatment | Equity through fair processes |
| Voice through union representatives | Voice through empowerment |
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Labor Union Strategies 6
Table divided into two columns summarizes labor union strategies. The column headers are marked as: industrial unionism and craft or occupational unionism.
| Industrial Unionism | Craft or Occupational Unionism |
| Represent all workers at a single workplace | Represent workers in a single occupation in different workplaces |
| Bargaining power from controlling entire workplace | Responsiveness to a homogeneous occupation |
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The Soul and Scope of Employee Representation
Scope of Representation
Soul of Representation
Table divided into three columns summarizes the soul and scope of employee representation. The column headers marked from left to right are as follows: models, workplace (business unionism), and social arena (social unionism).
| Models | Workplace (Business Unionism) | Social Arena (Social Unionism) |
| Union Officials (Passive Servicing Model) | Job Control Unionism, Traditional Craft Unionism | European Social Partnerships |
| Union Members (Active Organizing Model) | Employee Empowerment Unionism | Social Movement Unionism |
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Structure of the U.S. Labor Movement 1
Most union members have the greatest contact with their local union
Workers from a single workplace.
Workers in a single occupation from several workplaces.
Multiple occupations in multiple workplaces in multiple industries.
Nearly all local unions are part of a national union
Support local unions in organizing, bargaining, and administering contracts.
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The Structure of the United States Labor Movement
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Structure of the U.S. Labor Movement 2
Many national unions are part of a labor federation.
A labor federation is an association of labor unions that provides support and leadership to the labor movement.
Provides lobbying, research, education, overall coordination.
Dominant federation in the United States: The AFL-CIO.
Labor federations and individual unions also have international links and alliances with labor movements from around the globe.
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Union Democracy 1
Democracy in unions is championed because of the belief that democratic unions more effectively represent their members
Can be analyzed along three dimensions
Procedural.
Democratic procedures in place?
Behavioral.
Do members vote and participate?
Substantive.
Are union leaders responsive to the rank and file?
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Union Democracy 2
Theoretically, power flows from the bottom up in unions
But national unions might have the most formal power.
Contrast with corporations.
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Management Strategies
Human Resources and Industrial Relations Pattern.
Table divided into three columns summarizes human resources and industrial relations pattern. The column headers marked from left to right are as follows: subject, autocratic, and paternalistic or strategic.
| Subject | Autocratic | Paternalistic or Strategic |
| Business Strategy | Cost Leadership | Differentiation |
| Human Resource Management Strategy | Minimize Labor Costs | Develop, Reward, and Empower Employees |
| Supervision | Drive | Inspire |
| Employees as | Commodities or Machines | Assets |
Labor Relations Strategy.
Table divided into three columns summarizes labor relations strategy. The column headers marked from left to right are as follows: subject, autocratic, and paternalistic or strategic.
| Subject | Autocratic | Paternalistic or Strategic |
| If Union Acceptance | Adversarial | Participatory |
| If Union Avoidance | Suppression | Substitution |
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Union Avoidance Tactics
Table divided into ten rows summarizes the union avoidance tactics. The column header is marked as: union suppression.
| Union Suppression |
| Firing or Harassing Union Supporters |
| Screening Out Pro-Union Applicants |
| Plant Closings or Bankruptcy |
| Double-Breasting or Relocation |
| Subcontracting or Outsourcing |
| Nonunion Investment |
| Facilitating Decertification |
| Surface Bargaining |
| Use of Permanent Strike Replacements |
Table divided into ten rows summarizes the union avoidance tactics. The column header is marked as: union substitution.
| Union Substitution |
| Above-Market Pay and Benefits |
| Opportunities for Training and Development |
| Respectful Supervision |
| Complaint or Grievance Procedures |
| Employment Security |
| Attitude Surveys |
| Information Sharing |
| Committees and Participatory Mechanisms Such as Quality Circles |
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The Labor Relations Environment 1
Labor and management must contend with the conflicting strategies, pressures and, opportunities of the labor relations environment
Dimensions include legal, economic, sociopolitical, and ethical.
The legal environment
The legal system in every country establishes the framework for labor–management interactions.
Clearest component of the legal environment is the set of laws explicitly pertaining to labor relations.
But also employment law, employment-at-will, and laws pertaining to business (for example, bankruptcy).
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The Labor Relations Environment 2
The economic environment includes:
The labor market.
The market for the employer’s products or services.
Markets for other factors of production, and the state of the overall economy.
The economic environment critically determines workers’ employment options
Unemployment is low and jobs are easy to find.
A frustrated employee might quit and find a better job elsewhere.
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The Labor Relations Environment 3
The sociopolitical environment
Captures factors from the social and political arenas that influence labor and management.
Labor relations environment can favor labor or management depending on the extent of social support for each group.
Employment outcomes can be influenced by public attitudes toward labor unions.
Some employee groups rely on political lobbying rather than collective bargaining to improve wages and working conditions.
Political environment affects the labor relations environment by making it easier or harder for unions to organize new workplaces.
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The Labor Relations Environment 4
The external environment establishes the parameters for decision makers
Specific actions within these parameters result from choices made by individual employees, managers, union leaders, and shareholders.
One potential influence: ethics.
The ethical environment
Business ethics studies moral standards as they apply to the business context.
Business ethics is an important motivating force for and potential constraint on behavior.
Not only a way to judge behavior but also a way to understand it.
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Six Ethical Frameworks
Table divided into four columns summarizes six ethical frameworks. The column headers marked from left to right are as follows: "Ethics of . . .", focal point, tools, and immoral acts.
| Ethics of… | Focal Point | Tools | Immoral Acts |
| Utility | Greatest Good for the Greatest | Cost-Benefit Analysis | Inefficient or Welfare-Reducing Behavior |
| Liberty | Freedom to be Left Alone | Property Rights | Forcing Individuals to Use Themselves or Their Property Against Their Will |
| Duty (Kant) | Respect for Human Dignity | Categorical Imperative | Treating People Only as Means, Not Also as Ends |
| Fairness | Justice through Liberty, EO, and Concern for the Least Well-Off | Veil of Ignorance; Difference Principle | Placing Efficiency Above Liberty, Equal Opportunity, and Concern for the Least Well-Off |
| Virtue (Aristotle) | Moral Character to Achieve Happiness (Flourishing) | Specific Virtues (such as Friendliness and Truthfulness) | Actions Contrary to Virtues (Vices) Which Prevent Flourishing |
| Care | Nurturing Personal Relationships | Caring for People | Failing to Develop Special Relationships; Relationships Based on Exploitation |
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Six Ethical Frameworks Examples
Table divided into two columns summarizes examples of six ethics. The column headers are marked as: "The ethics of . . ." and labor relations examples.
| The Ethics of… | Labor Relations Examples |
| Utility | A management desire to be “union free” based on a cost or benefit analysis. Provision of equity and voice only because they increase productivity. |
| Liberty | Employer participation in the union organizing process because of their rights of private property and free speech. |
| Duty (Kant) | Employees are entitled to voice because they are rational, human beings who should not be treated only as a means to some other end. |
| Fairness | Unions negotiating compressed wage structures which narrow the gap between unskilled and skilled workers in the name of fairness. |
| Virtue (Aristotle) | “Might does not make right.” Rather, establish productive workplaces or engage in collective bargaining based on excellence and integrity. |
| Care | Recent union initiatives to organize workers by developing special relationships with the workers, especially in female-dominated occupations. |
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Accessibility Content: Text Alternatives for Images
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The Structure of the U.S. Labor Movement 1 - Text Alternative
Return to parent-slide containing images.
The data from the flowchart are as follows:
Table divided into two columns summarizes the structure of the United States Labor movement. The column headers are marked as: structure of the United States labor movement and organizational level of the labor movement.
| Structure of the U S Labor Movement | Organizational Level of the Labor Movement |
| A F L–C I O or Change to Win | Level 6 |
| National Unions | Level 5 |
| Officers and executive committee | Level 4 |
| Organizing department, research department, education department, collective bargaining department | Level 3 |
| Industry conference | Level 3 |
| Regional office | Level 2 |
| Local unions | Level 1 |
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The Structure of the U.S. Labor Movement 2 - Text Alternative
Return to parent-slide containing images.
Political activities include levels one to six.
Collective bargaining includes levels one to five.
Union organizing includes levels one to three.
Grievance handling includes levels one to two.
The flowchart also shows that industry conference influences the local unions.
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