Post on 03-Jan-2016
Chapter
A Framework for Analyzing Collective Bargaining and
Industrial Relations
1
McGraw-Hill/IrwinAn Introduction to Collective Bargaining & Industrial Relations, 4e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
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The Participants
• Management• Labor• Government
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Management
- Responsible for promoting the goals of employers and their organizations
- Composed of at least three groups:• Owners and shareholders• Top executives and line managers• Industrial relations and human resource staff
professionals
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Labor
• Encompasses both employees and the unions that represent them
• Employees influence whether the firm meets its objectives
• Shapes the growth and demands of unions
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Assumptions About Labor and Conflict
• Labor is more than just a commodity- Some acquired skills are of unique value to the
employer- Skills may not be easily marketable- Not always easy to change jobs
• A Multiple Interest Perspective- Industrial relations policies must consider both
employer and employee interests
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The Inherent Nature of Conflict
- There is an inherent conflict of interest between employer and employees
- It is economic, not pathological- Arises from a clash of economic interests
• Workers seek higher pay and job security• Employers pursue profits
- Society has an interest in limiting the intensity of work conflicts
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Common as Well as Conflicting Interests
• Both management and labor can benefit from increasing productivity
- It can produce both higher wages and higher profits
• No single best objective satisfies all parties- Successful relationships occur when both parties
resolve issues and pursue joint gains
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Trade-Offs among Conflicting Goals
• Focusing on any single goal is inappropriate- It would destroy collective bargaining as an
instrument for accommodating the multiple interests of workers and employers
• Unions would not survive if suppressed• Management could not compete in the global
market with excessive labor costs
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The Three Levels of Industrial Relations Activity
• Strategic Level- Strategies and structures of long-term influence
• Functional Level- The process and outcomes of collective
bargaining• Workplace
- The daily union/employer interaction and contract administration
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Conceptual framework for the study of collective bargaining
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The Institutional Perspective
• Developed by “institutional” economist John Commons - the father of industrial relations
• Described as “a shift from commodities, individuals, and exchanges to transactions and working rules of collective action”
• Placed great value on negotiation and compromise among the divergent interests
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Sidney and Beatrice Webb
• Institutionalists in the U.S. were influenced by these two British economists & reformists
• They rejected Marx’s theory that exploitation of workers would lead to the overthrow of the system
• They shared Marx’s belief that workers have unequal bargaining power and needed protection
• Institutionalists advocated legislation for the right to join unions, and workplace issues such as safety, health, child labor laws, and minimum wages
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The Performance of Collective Bargaining
• Measured by how well it serves the parties and the public
- Labor’s Goals: Wages, benefits, safety conditions, and employee satisfaction, and quality of life
- Management’s Goals: Costs, productivity, profit, quality, managerial control, employee motivation and turnover
- Public’s Goals: Industrial peace & union democracy; balance and fairness. Security without corruption
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The Environment
• The external environment sets the context for collective bargaining & influences outcomes
• It includes five key dimensions – - The economic environment- Law & public policy- The demographic context- Social attitudes- The technological context
• Laws and macroeconomic conditions can alter the balance of bargaining power
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The Strategic (Top) Tier
• Involves strategies and structures that guide the long-term direction of industrial relations
• Management: Committed to working with the union, or seeking non-union alternatives?
• Labor: Is leadership adversarial or flexible?
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The Functional (Middle) Tier
• The process of contract negotiations takes place here & the terms and conditions of the labor agreement are established
• In the middle tier we find:- Union organizing & bargaining structure- The negotiations process- Impasse resolution- Bargaining outcomes
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The Workplace Tier
• The workplace tier involves issues such as:- management of conflict- delivery of due process- motivation, participation, supervision of workers,
and the structuring of jobs• Administration of the bargaining agreement is an
important part of this tier
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Public Sector Collective Bargaining
- Chapter 13 addresses the rules and procedures of public sector collective bargaining
• The chapter identifies the differences from the private sector
• For example, public employees are not covered by the National Labor Relations Act (NLRA)
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International and Comparative Industrial Relations
• The changes occurring globally warrant the special attention given in Chapter 14
• The labor movement has been at the forefront of the sweeping political changes in the former Communist bloc nations and newly-industrialized countries such as South Korea
• International trade and competitiveness have moved to the forefront of economic policy in the U.S.
- In particular, there is much discussion about whether globalization has fundamentally increased management's power and advantage
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Labor Policy
- Chapter 15 assesses the broad public and social issues and their impact on industrial relations
- Reviews the many changes emerging in U.S. collective bargaining
- Considers the various policy options- Addresses the merits and implications of the
alternative policies
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Summary
• There have been many changes in the workplace in recent years, including:
- The expansion of the participatory process- The team form of work organizations- Globalization has increased management’s advantage
• A shift in American industrial relations from the middle level to both the strategic and workplace levels
• Concern for job security, union decline, and participation programs are all part of a transformation in industrial relations