Union/Management Union/Management RelationsRelationsChapter 12Chapter 12

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Nature of UnionsNature of Unions• UnionUnion

A formal association of workers that promotes the A formal association of workers that promotes the interests of its members through collective action.interests of its members through collective action.

• Why Employees UnionizeWhy Employees Unionize They are dissatisfied with how they are treated by They are dissatisfied with how they are treated by

their employers.their employers. They believe that unions can improve their work They believe that unions can improve their work

situations.situations.

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FIGURE 16–1 Factors Leading to Employee Unionization

Why Employees Join UnionsWhy Employees Join Unions

• Dissatisfaction with managementDissatisfaction with management

• Social outletSocial outlet

• Opportunity for leadershipOpportunity for leadership

• Forced unionizationForced unionization

• Peer pressurePeer pressure

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Dissatisfaction With ManagementDissatisfaction With Management

• CompensationCompensation

• Job securityJob security

• Management attitudeManagement attitude

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Social OutletSocial Outlet• Many people have strong social needs Many people have strong social needs • Unions sponsor recreational and social activitiesUnions sponsor recreational and social activities• People who develop close personal People who develop close personal

relationships will likely stand together in difficult relationships will likely stand together in difficult times times

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Opportunity for LeadershipOpportunity for Leadership

• Some individuals aspire to leadership roles Some individuals aspire to leadership roles • Can often satisfy those aspirations through Can often satisfy those aspirations through

union membership union membership • Union also has hierarchy of leadership Union also has hierarchy of leadership • Begins with union steward Begins with union steward

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Forced Unionization Forced Unionization • In 27 states without In 27 states without right-to-work lawsright-to-work laws, it is legal , it is legal

for employer to agree with union that new for employer to agree with union that new employee must join union after certain period of employee must join union after certain period of time (generally 30 days) or be terminatedtime (generally 30 days) or be terminated

• Called a Called a union shop agreement union shop agreement

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Peer Pressure Peer Pressure

• Some join a union because they are urged Some join a union because they are urged to do so by other workers to do so by other workers

• Peers may constantly remind employee Peers may constantly remind employee that he or she is not a member of unionthat he or she is not a member of union

• In extreme cases, union members have In extreme cases, union members have threatened nonmembers with physical threatened nonmembers with physical violence, and have sometimes carried out violence, and have sometimes carried out these threats these threats

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Nature of Unions (cont’d)Nature of Unions (cont’d)• Why Employers Resist UnionsWhy Employers Resist Unions

Unionization constrains what managers can and Unionization constrains what managers can and cannot do in a number of areas.cannot do in a number of areas.

Unionization can result in higher wages and benefits.Unionization can result in higher wages and benefits.

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FIGURE 16–8

Weekly Earnings of Union and Nonunion Workers

Source: Bureau of Labor Statistics, “Union Members Summary,” January 22, 2010.

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FIGURE 16–2 Union Membership as a Percentage of the U.S. Civilian Workforce

Source: U.S. Department of Labor, Bureau of Labor Statistics, 2010.

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FIGURE 16–3 Union Membership by Industry

Source: U.S. Department of Labor, Bureau of Labor Statistics, 2010.

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Reasons for U.S. Union Membership Reasons for U.S. Union Membership DeclineDecline

Causes of Membership Decline

Geographic Changes

Industrial Changes

Workforce Changes

Unions TodayUnions Today

• Percent of wage and salary workers who are Percent of wage and salary workers who are members of a union is 11.8% members of a union is 11.8%

• 7.6 million public sector employees belonged to 7.6 million public sector employees belonged to union, compared with 7.2 million union workers in union, compared with 7.2 million union workers in private sector private sector

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U.S. and Global Differences in U.S. and Global Differences in Union-Management RelationsUnion-Management Relations

Key Difference

s

Focus on Economic

Issues

Organization by Job and Employer

Collective Agreements

as “Contracts”

Competitive Relations

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Unions GloballyUnions Globally• Union membership is falling in advanced Union membership is falling in advanced

countries.countries. High unemployment is creating pressure for change.High unemployment is creating pressure for change.

• In some countries, unions are closely tied to In some countries, unions are closely tied to political parties.political parties.

• Child labor is an issue in some countries.Child labor is an issue in some countries.• Co-determinationCo-determination

A practice whereby union or worker representatives A practice whereby union or worker representatives are given positions on a firm’s board of directors.are given positions on a firm’s board of directors.

A Global Perspective: Labor Unrest in A Global Perspective: Labor Unrest in ChinaChina

• ACFTU has begun to put pressure ACFTU has begun to put pressure on foreign-invested enterprises to on foreign-invested enterprises to establish unions and sign collective establish unions and sign collective contracts contracts

• Two years after strikes and suicides Two years after strikes and suicides that rocked manufacturers in China, that rocked manufacturers in China, labor problems are again occurring. labor problems are again occurring. Strikes appear to be occurring dailyStrikes appear to be occurring daily