Management as an Actor in Industrial Relations - PowerPoint PPT Presentation

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Management as an Actor in Industrial Relations

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Management as an Actor in Industrial Relations Nonunion or Union Nonunion Direct Effects Lowers profitability Indirect Effects Productivity Wage Distribution – PowerPoint PPT presentation

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Title: Management as an Actor in Industrial Relations


1
Management as an Actor in Industrial Relations
  • Nonunion or Union
  • Nonunion
  • Direct Effects
  • Lowers profitability
  • Indirect Effects
  • Productivity
  • Wage Distribution
  • Internal Labor Markets

2
BUSINESS STRATEGY AND MODERN (UNIONIZED) PRIVATE
SECTOR INDUSTRIAL RELATIONS
  • TWO DISTINCT PERIODS
  • 1930s - 1970s
  • Since 1970s

3
Unionized Labor Relations Models 1935 Through
1970s
  • Institutionalized Adversarialism (New Deal Model)
  • mutual recognition of institutional legitimacy of
    other party
  • sharply defined roles
  • Management manages the organization
  • Union protects and represents the workers
  • Long-term contracts
  • Rights of each party
  • Workplace laws
  • structured communication - negotiations and
    grievance procedure

4
Nonunion Models Developing in 1960s
  • Emulate Union Models in some ways
  • Written Policies
  • Corporate or Division Wide
  • Removed discretion of first-line supervisors
  • With flexibility because policies can be changed
    or interpreted to fit changing environment

5
Bifurcated Private Sector ER System
  • By late 1970s
  • Unionized (partially) sector
  • Older Manufacturing Companies
  • Construction
  • Utilities
  • Transportation
  • Old Telecommunication
  • Nonunion sector
  • Newer Manufacturing Companies
  • Retail
  • Business Services
  • Emerging Unionized Sector
  • Health Care

6
THREE POST-1970S EMPLOYER CB STRATEGIES
  • DEUNIONIZATION
  • CONFLICT
  • INVESTMENT
  • TRADITIONAL ADVERSARIALISM
  • COOPERATION
  • MANAGEMENT NO LONGER NECESSARILY WILLING TO
    ACCEPT NEW DEAL SYSTEM AS THE MODEL OF
    BARGAINING

7
DEUNIONIZATION - Conflict
  • Use of legal right to bargain without concessions
  • Union Options
  • accept an unacceptable contract
  • strike and risk replacement
  • Er may permanently replace strikers
  • Claim good faith doubt about unions majority
    status
  • Pyramiding of legal rights by employer

8
Deunionization/ConflictExamples
  • Detroit Newspapers
  • International Paper
  • Greyhound
  • Continental Airlines (mid 80s)

9
DEUNIONIZATION -Investment
  • Company invests in nonunion facilities
  • greenfield
  • older nonunion facilities
  • Examples
  • rubber tire industry
  • some paper processing firms
  • auto industry (Mexico)

10
TRADITIONAL ADVERSARIALISM
  • Examples
  • Trucking Industry
  • Aerospace
  • Airlines

11
COOPERATION
  • Creation of non-adversarial structures for
    communication
  • Reduce labor costs by reducing the costs of
    adversarialism
  • Permits firm to better exploit knowledge of
    workers
  • Focus on common, rather than conflicting,
    interests

12
MANAGEMENT COLLECTIVE BARGAINING STRATEGIES
Institutionalized Adversarialism (Traditional)
Conflict/ Deunionization
Cooperation

13
Different Bargaining and Contract Administration
Models
  • Bargaining
  • Adversarial Positional Bargaining
  • Each side provides position to other party
  • Listens
  • Modifies position
  • rationale
  • bargaining power

14
CooperativeInterest-Based Bargaining Processes
  • Example Mutual Gains Bargaining
  • Define problems and interests - separate
  • Discussion of problems and interests - joint
  • Brain-storming of solutions - joint
  • Recommendations of possible solutions -
    separate
  • Presentation of recommendations and selection
    of solutions - joint

15
Administration Process
  • Longer-Term Agreements
  • Problem-Solving Teams
  • Team-Based Production
  • Joint Committees

16
Examples of Cooperative Relationships
  • National Steel and United Steelworkers of America
  • Ford and UAW
  • GM and UAW
  • Philip Morris (Trenton, Ohio) and UAW

17
Fundamental Question
  • Does Management challenge the institutional
    legitimacy/status of the union?
  • No
  • Cooperation
  • Institutionalized Adversarialism
  • Yes
  • Deunionization
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