Deck 12: Dealing With Union and Employeemanagement Issues

Question 1

What ethical and economic issues are raised by this case

Answer 1

It may not seem ethical for a company to not pay its pension obligations, but United was bankrupt. It had no choice. The government has assumed the role of backup in such cases, but is it ethical for you and me to cover the losses caused by decision making at United If one airline fails to pay its obligations, won't all the other airlines do the same to stay competitive And won't other companies be tempted to do the same Should the government get out of the pension-backing business Students should enjoy debating this one.

Question 2

With today's protections under the law available to workers, do you believe that unions have outlived their usefulness

Answer 2

Unions are still popular among those who feel they are being poorly paid and mistreated. That's why the number one union is that of teachers. Nurses and doctors are also being courted. What other groups do students believe could benefit from unionization in your area

Question 3

Since social security will not be fully funded in the future and company pensions may be in doubt, what should a student do to prepare for retirement Is this a union/management issue that is easily resolved

Answer 3

Students should not rely on Social Security or pensions for their secure retirement. Instead, they should begin a dramatic savings plan now to cover their retirement needs. You may refer them to the personal finance bonus chapter for more information on this topic. Is there any way that employees can force companies to keep their pension promises Good discussion point!

Question 4

Is your home state or the state in which you now live a right-to-work state How do you feel about economic development and growth in your state If your state is not a right-to-work state, would you support a right-to-work law if it were put to a popular vote

Question 5

Does the government backing of pension programs create a "moral hazard " What is a moral hazard anyhow

Question 6

If given a choice, would you elect to join a labor union or not join What are the reasons you made your decision