Exam 15: Working With Organized Labor

Pay rates, usually made across the board, that are tied to such inflation indicators as the consumer price index, are referred to as ________.

The union grievance procedure begins with the submission of a formal letter by the employee to the union steward.

Currently the union membership rate for public-sector work is ________, more than five times higher than the membership rate in the private sector.

Additional Case 15.1 Billiards, Inc. makes collapsible pool cues and other billiard products. Tegau, the general manager, has called a management team meeting with Tammy, the director of HR; Gary, the VP of operations; Ramonia, the employee relations specialist; and Ryan, a labor relations consultant. Tegau wants ideas from her management team about what to do concerning the possible unionization of their workers. Tammy suggests that they do nothing, let the union conduct its vote, and if certified, treat it as a legitimate worker representative of the workers. Gary says the firm should begin aggressively opposing union organization. He thinks first-line supervisors should be brought in and told that if workers in their areas vote for the union, the supervisors will lose their jobs and the company might sell off the unionized part of the business. Ramonia suggests that Billiards, Inc. tell the employees about their current plans to upgrade employee benefits and working conditions-a project she's worked on for the last six months. Management decides to mildly oppose the union but the union is certified anyway. Tegau is now in her first contract negotiation. Ryan explains to the union that if they will accept flexible work rules, the employees can have more fulfilling jobs, the company will save money which it can spend on benefits, and the union will start with a positive relationship with the company. The union representative says "No way. We go on strike in ten days." -Refer to Additional Case 15.1. Ramonia's idea is most likely a(n)________ strategy.

What are the four ways labor relations strategies are available to management? What are the three phases of the labor relations process?

The right to strike is unlimited in public sector unions.

Additional Case 15.3 Wear and Tear is a large manufacturer with about 250 employees. At the moment, they are in new contract negotiations with their union. Cole, the firm's labor relations specialist, is heading the negotiations for management. Natalie is labor's representative. Cole doesn't know if he likes working with Natalie. He was able to make her predecessor agree to his terms whenever they negotiated contracts. Natalie is tougher to deal with. She tends to emphasize what bad things can happen to Wear and Tear and to him if her point isn't granted. Negotiations have been going on for several days. Cole tells Natalie that if they will accept wage concessions, the company will give employees stock to compensate for the loss in wages. Natalie declines the offer and is unwilling to negotiate further. She reminds him that the contract expires in two days and that the workers will strike if they don't have a new contract by that time. -Refer to Additional Case 15.3. Cole's offer of stock for wage concessions is an example of what type of bargaining topic?

Union growth in small U.S. businesses has been rapid, as smaller businesses have quickly moved from adversarial to cooperative attitudes.

________ is a union avoidance strategy in which management becomes so responsive to employees' needs that it removes the incentives for unionization.

Additional Case 15.4 Demetry is the president of a candle manufacturing company. He has heard that employees are considering trying to unionize. He is concerned about this and calls a meeting of upper-level managers and the HR department. Demetry wants to know what can be done in order to discourage a union. He is also concerned about the steps employees will take in unionizing. Demetry knows relatively little about unions. He started the company in his workshop for fun, and it grew into a business that he feels he can no longer control. Kaia, a production manager, strongly believes that the employees will manage to unionize and wants to identify areas where the company would be able to give-and-take during the bargaining. She suggests that the company discuss benefits for retired union workers. Karsten, an HR employee, also believes that the union will take hold. He suggests that Demetry not fight unionization and not coerce employees out of their support for the union. Karsten claims that showing such restraint may lead to a more harmonious and cooperative relationship between management and the union. -Refer to Additional Case 15.4. Karsten would most likely explain to Demetry that at least ________ of the employees must sign an authorization card before a union certification election can occur.

Additional Case 15.3 Wear and Tear is a large manufacturer with about 250 employees. At the moment, they are in new contract negotiations with their union. Cole, the firm's labor relations specialist, is heading the negotiations for management. Natalie is labor's representative. Cole doesn't know if he likes working with Natalie. He was able to make her predecessor agree to his terms whenever they negotiated contracts. Natalie is tougher to deal with. She tends to emphasize what bad things can happen to Wear and Tear and to him if her point isn't granted. Negotiations have been going on for several days. Cole tells Natalie that if they will accept wage concessions, the company will give employees stock to compensate for the loss in wages. Natalie declines the offer and is unwilling to negotiate further. She reminds him that the contract expires in two days and that the workers will strike if they don't have a new contract by that time. -Refer to Additional Case 15.3. Cole's negotiating strategy with Natalie's predecessor was most likely based on:

Unions typically advocate merit pay plans over group pay incentives.

The ________ is a law designed to regulate labor relations in the transportation industry.

In a union-management negotiation, labor wants seats on the company's board. Negotiations come to a halt and the contract cannot be finalized because of this point; the union wants it and management won't grant it. This negotiation is:

A(n)________ makes it illegal within a state for a union to include a union shop clause in its contract.

Additional Case 15.2 TimeTable, Inc. plans to expand its manufacturing facilities. It is considering expansion either here in the United States or in Europe-Germany, Sweden, Great Britain, or France. It may also look at Japan or China, but those are currently second-tier choices. In selecting a country, the CEO wants to avoid political involvement. While friendly toward unions, he doesn't want a union that is politically oriented. In fact, the CEO of TimeTable was once a union official. He went through a career change, earned an MBA, and moved into the executive management ranks about ten years ago. TimeTable has a strong positive working relationship with its union. Management feels the NLRB is wrong in its ruling about the Wagner Act and is aggressively building labor-management teams. The CEO of TimeTable is even considering giving the union a seat on the board of directors. -Refer to Additional Case 15.2. Based on TimeTable's CEO's attitudes about politically active unions, which country would be LEAST appropriate?

Which of the following is an advantage of union contract grievance procedures?

Lian had worked for International Resources for 12 years when he and other workers decided to form a union. When International Resources found out about his plan, the company began intercepting his phone calls and e-mails in order to limit the dissemination of union-based information. In addition, Lian was told that his position at the company was in danger of being eliminated, but that if he "reconsidered" his recent behavior, his job would be secure. International Resources' tactics were made illegal under the:

If a union wants to negotiate compensation, health insurance, and vacation schedules, management must enter into negotiation on those topics.

In the U.S., workers' economic benefits have historically been established by: