CHAPTER 12 Dealing with Union and EmployeeManagement Issues McGraw-Hill/Irwin Copyright © 2015 by the McGraw-Hill Companies, Inc All rights reserved LEARNING OBJECTIVES Trace the history of organized labor in the United States Discuss the major legislation affecting labor unions Outline the objectives of labor unions 12-2 LEARNING OBJECTIVES Describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future Assess some of today’s controversial employee– management issues, such as executive compensation, pay equity, child care and elder care, drug testing, and violence in the workplace 12-3 DEMAURICE SMITH NFL Players Association • Earned his law degree in 1989 and gained a reputation as a dedicated trial lawyer • He was elected director of the NFL Players Association in 2009 • Shortly after starting the job he was thrown right into the middle of the recent NFL lockout 12-4 NAME that COMPANY The late management consultant Peter Drucker suggested that CEOs should not earn more than 20 times the salary of the company’s lowest-paid employee Most firms ignore his suggestion but at our company, executive pay is capped at 19 times the average employee’s salary Still, we are one of the fastest growing companies in the United States Name that company! 12-5 ORGANIZED LABOR LO 12-1 • Unions Employee organizations whose main goal is to represent members in employee-management negotiations of job-related issues • Labor unions were responsible for: - Minimum wage laws - Overtime rules - Workers’ compensation - Severance pay - Child-labor laws - Job-safety regulations 12-6 PUBLIC SECTOR LABOR UNIONS LO 12-1 • Public sector union members work for governments as teachers, firefighters, police officers, etc • Many states face serious debt problems and want to cut labor costs But states with public sector unions have limited ability to cut those costs • The Governor of Wisconsin challenged public sector labor unions by eliminating union bargaining rights for state and public employees 12-7 GOALS of ORGANIZED LABOR LO 12-1 • To work with fair and competent management • To be treated with human dignity • To receive a reasonable share of wealth in the work it generates 12-8 HISTORY of ORGANIZED LABOR LO 12-1 • Craft Union An organization of skilled specialists in a particular craft or trade • As early as 1792, shoemakers in a Philadelphia craft union met to discuss fundamental work issues • Work weeks were 60+ hours, wages were low and child labor was rampant 12-9 The FACTORY BLAZE that FIRED UP a MOVEMENT • On March 25, 1911, 146 women were killed in a fire at the Triangle Shirtwaist Company in New York City • The women were trapped by a door that was kept locked to prevent theft • Today labor leaders say that the Triangle fire is proof of why labor unions are crucial to maintaining workplace balance in the U.S 12-10 COMPENSATING EXECUTIVES in the FUTURE LO 12-5 • Boards of directors are being challenged concerning executive contracts • Government and shareholders are putting pressure to overhaul executive compensation • The passage of the DoddFrank Act was intended to give shareholders more say in compensation decisions 12-38 The QUESTION of PAY EQUITY LO 12-5 • Women earn 77% of what men earn • This disparity varies by profession, experience and level of education • Young women actually earn 8% percent more than male counterparts due to their higher graduation rates 12-39 EQUAL PAY for EQUAL WORK LO 12-5 Equal Pay Act Factors that Justify Pay Differences • Skill • Effort • Responsibility • Working Conditions 12-40 THE SALARY GENDER GAP Source: U.S Census Bureau, www.census.gov, accessed November 2014 LO 12-5 12-41 WHAT’S SEXUAL HARASSMENT? LO 12-5 • Sexual Harassment Unwelcomed sexual advances, requests for sexual favors or other verbal or physical conduct that creates a hostile work environment • Sexual harassment laws cover men, women and foreign companies doing business in the U.S • Violations can be extremely expensive for businesses 12-42 KINDS of SEXUAL HARASSMENT LO 12-5 • Quid pro quo sexual harassment involves threats like “Go out with me or you’re fired.” An employee’s job is based on submission • Hostile work environment sexual harassment is conduct that interferes with a worker’s performance or creates an intimidating or offensive work environment 12-43 YOU MAKE the CALL… LO 12-5 Two colleagues walk by you as one delivers the punch line to a very dirty joke You feel the joke is inappropriate Is this sexual harassment under the law? An employee thinks she may have been sexually harassed when her boss complimented her blouse She explains the circumstances to you and asks, “Wouldn’t you be upset?” What’s your response? 12-44 FACING CHILDCARE ISSUES LO 12-5 • The number of women in the workforce with children under three-years-old has increased • Childcare related absences cost businesses billions of dollars each year • Who should pay for the cost of childcare – this is a dividing issue among employees and businesses 12-45 BUSINESSES RESPONSE to CHILD CARE LO 12-5 • Benefits can include: - Discounts with childcare providers - Vouchers that offer payment for childcare - Referral services identify high-quality childcare facilities - On-site childcare centers - Sick-child centers 12-46 INCREASING ELDER CARE CHALLENGES LO 12-5 • 31% of U.S households are providing some care to an elderly person • Care giving obligations cause employees to miss about 15 million days of work per year • Costs could rise up to $35 billion annually 12-47 ELDER CARE in the MODERN HOUSEHOLD LO 12-5 • More and more boomers are taking care of their parents while still working - 31% say that may delay their retirement - The average cost of taking care of an aging parent is $5,534 - 76% say they enjoy taking care of their parents - 54% say it made them closer Source: Money, www.money.com, accessed November 2014 12-48 DRUG USE in the WORKPLACE LO 12-5 • Alcohol is the most widely used drug - 6.5% of full time employees are considered heavy drinkers • Over 8% of workers aged 18-49 use illegal drugs and are more likely to be in workplace accidents • Drug abuse costs the U.S economy $414 billion in lost work, healthcare costs and crime • Over 80% of major companies drug test workers 12-49 VIOLENCE in the WORKPLACE LO 12-5 • OSHA reports homicides account for 16% of workplace deaths • Violence is the number one cause of death for women in the workplace • Companies have taken action to deal with potential problems by using focus groups and other interactions 12-50 WARNING SIGNS of POSSIBLE WORKPLACE VIOLENCE LO 12-5 • Unprovoked outbursts of anger or rage • Threats or verbal abuse • Repeated suicidal comments • Paranoid behavior • Increased frequency of domestic problems 12-51 TEST PREP • How does top-executive pay in the U.S compare with top-executive pay in other countries? • What is the difference between pay equity and equal pay for equal work? • How is the term sexual harassment defined and when does sexual behavior become illegal? • What are some of the issues related to childcare and elder care and how are companies addressing those issues? 12-52 ... Certification The formal process by which a union is recognized by the NLRB as the bargaining agent for a group of employees • Decertification The process whereby employees take away a union’s... Boycott An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott 12-27 TACTICS USED in CONFLICTS LO 12-4 • Tactics used by management include:... LOCKOUTS, INJUNCTIONS and STRIKEBREAKERS LO 12-4 • Lockout An attempt by management to put pressure on workers by closing the business, thus cutting off workers’ pay • Injunction A court order