MGMT 530: EXAM 2
63 Cards in this Set
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grievance
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an official complaint that the labor-management contract has been violated
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grievance procedure
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the process whereby the parties bilaterally attempt to resolve their grievances at successively higher levels of the union and management hierarchies
Most settled in first 2 steps
Flexible and informal
Goal of compromising
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Arbitration
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More formal
Speedy,fair,and peaceful solution to disputes
95% of all grievance are settled by the joint process.
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Arbitration Procedure
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the process whereby a union and management that have exhausted all bilateral steps in the grievance procedure and still are in disagreement over an issue arising under the contract's terms select an impartial outsider to decide the controversy. The latter's decision is invariably stipulat…
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Arbitrator
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Impartial person selected by parties/typically decision is final and binding
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Lincoln Mills case 1957
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Court ruled that an employer could not refuse to arbitrate unresolved grievances when the labor contract contains an arbitration clause.
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Trilogy Cases
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Warrior and Gulf Navigation
American Manufacturing
Enterprise wheel and car corporation
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Warrior and Gulf Navigation
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The supreme court ordered arbitration b/c the contract did not specifically exclude the disputed activity (subcontracting)from the arbitration process.
Though the court may direct arbitration, it will not determine the merits of the dispute.
A federal court only decides if a grievance i…
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2nd Case
American Manufacturing
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Company argued before a lower court that the issue was not arbitrable b/c it did not have merit.
Lower court agreed
Supreme court reversed decision, stating the courts are limited in determining whether the dispute is covered by the labor agreement and that they have no power to evaluat…
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3rd Case
Enterprise Wheel and Car corporation
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Lower court reversed decision of arbitrator
Supreme court reversed lower court decision b/c interpretation is up to the arbitrator
The arbitrator may dismiss the grievance but this decision is left soley to the arbitrator not the courts.
Showed union or management may not use courts to…
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Supreme court vs Gardner-Denver
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Supreme court decided the arbitrators decision isn't fianl when title 7 of the civil rights act is involved.
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1976 Anchor Motor Freight
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Supreme court held that an arbitrators decision is subject to reversal by a federal court when union does not provide fair presentation to employees involved in arbitration.
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1981
Fair Labor Standards Act
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Supreme court ruled that an arbitrators decision involving rights established by the fair labor standards act may be reviewed and reversed by the courts.
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Limits to arbitration
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Use of arbitration during the negotiation stage of a contract of a labor contract is rare.
USA system is one of private and voluntary arbitration
Either party can refuse to include arbitration
Arbitrators are private rather than government officials
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(arbitration)
Ethical considerations
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Must adhere to strict code of ethics
Decision must be made on evidence and facts presented
Apply the language of labor contract as he or she finds it in a particular case.
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Selection of Arbitrator
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Most labor agreements select from a panel submitted by the federal mediation and conciliation service (government agency) or american arbitration association.
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Permanent vs Ad. Hoc arbitrators
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10% of situations, empliyers and unions solve problems by selecting a permanent arbitrator under terms of labor agreement.
Ad hoc method- Different arbitrator for every case
Advantage- won't be stuck with arbitrator you dont like
Disadvantage-does not assure consistency
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Arbitration Cost and time lag
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Criticized for being expensive and taking to long
To save money only say award dont write opinion
Local Arbitrator saves time
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Mini arbitration
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First used in 1971 by steel industry to save money and time
Fee only paid on hearing day
Case can be transferred to regular hearing
Special care must be given to ensure gained speed doesnt overlook quality of decision.
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Grievance mediation
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Procedure combines elements of arbitration and mediation.
Experienced arbitrator is used but posses the skills of a mediator.
Ample room for innovative problem solving
Very informal, can handle several grievances a day.
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comparative norm
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the employer's general wage level should neither fall substantially behind nor be greatly superior to that of any other comparable employment relationship
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5 factors of comparitive norm
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Not all employees can meet economic demands
Job titles have not been standardized in industry
Not all employers pay wages by same method
Employers use a variety of fringe benefits
Geographical differences
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ability-to-pay
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the ability of the employer (or industry, where negotiations are on an industrywide basis) to pay a wage increase. It's a leading criterion involved in wage determination under collective bargaining
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Cost of living
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Important b/c ttrends in it have an important bearing on real income.
Difficult because wage is negotiated on future period where cost of living is past.
Consumer price index is the measurement management and unions almost universally use
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Escalator Clause
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COLA-cost of living adjustment
Used in labor agreements
Wages should rise and fall automatically according to CPI
Came about due to inflation
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wage reopeners
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Permits employer or union to reopen labor agreements for wage issues at certain stated intervals
Must negotiate
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Wage differentials
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Completely legal unless discriminating
Certain shifts/jobs pay more
Mentally challenged are allowed to be paid less
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pyramiding of overtime
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receiving weekly overtime premiums for hours for which daily overtime premiums have already been paid. Most labor agreements prohibit such "double-dipping"
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flextime
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a relatively recent innovation in the world of work whereby employees can, within limits, select their daily work schedules
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core time
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part of flextime arrangements, such core time is a daily fixed schedule during which all employees are expected to work. This period may range between 4 − 6 hours per day.
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2 tier wage system
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Workers hired after the labor agreement can get pay rates lower than those in the same workforce whose date of hire took place under a previous contract
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1949 inland steel
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Employers could not refuse to bargain with unions over pension and retirement plans.
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defined benefit plan
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pension plans through which fixed, periodic payments are made to retirees
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defined contribution plan
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pension plans in which employers make specific, usually percentage-of-pay, contributions to participant accounts, but there are no guaranteed fixed amounts and the investment risks are borne entirely by the workers
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funded plans
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the pension is paid from funds that are isolated from the general assets of the organization and earmarked specifically for retirees, hence ensuring that the benefits are in fact guaranteed
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vesting
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the right of workers to take their credited pension entitlements with them should their employment terminate before they reach a previously stipulated retirement age or achieve a prestated amount of seniority
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Employee Retirement Income Security Act (ERISA)
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passed by Congress in 1974, this protected legislation contains some hard-hitting vesting and funding provisions. It also established the Pension Benefit Guaranty Corporation (PBGC), which guarantees pensions should an employer go out of business or otherwise terminate a plan
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tax-deferred retirement savings plan
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employees can get tax breaks by contributing their own money to their own accounts. Over 70% of all managements with such plans match at least some portion of the employee contributions
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dismissal pay (severance)
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is a still uncommon collective bargaining product normally goes only to workers displaced by technological change, plant merger, permanent curtailment of operation, permanent disability, or retirement before the employee earns a pension. It rarely goes to workers discharged for cause, or …
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reporting pay
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contractually guaranteed minimum compensation for employees who are scheduled to work and who do not have instructions from the employer not to report to their jobs
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supplementary unemployment benefits (SUBs)
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employer-finaced plans that supplement the unemployment benefits of the various state unemployment insurance systems and allow further income to still-unemployed workers after the state payments have been exhausted. SUBs originated in mid-50s, when both the nation's automobile manufacture…
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free riders
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bargaining unit employees who choose not to join the union and gain the benefits. Under the law, unions must represent all bargaining unit employees. Where everyone must join the union, free riders cannot by definition exist.
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closed shop
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illegal in most situations since 1947, under which workers must be union members before they can be hired
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union shop
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workers need not belong to the union before obtaining other jobs but must join within a specified time period after being hired and maintain this union membership for the duration of the contract period as a condition of continuing employment
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maintenance of membership
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lets workers elect whether or not to join the union but requires them, if they join, to remain union members for the duration of the contract or else forfeit their jobs
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agency shop
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agency shop
nonunion members of the bargaining unit must make a regular financial contribution - usually the equivalent of union dues - to the union, but no one is forced to become a union member
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dues checkoff
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a dues-collection method, the employer deducts from the employee's pay the monthly union dues (and sometimes also initiation fees, fines, and special assessments) for transmittal to the union
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wildcat strikes
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work stoppages that are not authorized by the union. Under many labor agreements, the employer has the right to discharge employees who participate in such stoppages or to otherwise penalize them for such activities
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residual theory
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all rights reside in management except those that are limited by the labor agreement or conditioned by a past practice between the parties
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trusteeship theory
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management is the "trustee" of the interests of not only the employees, the society, business, stockholders, and the management hierarchy, but also the union, and therefore, that any union demand should discussed on its merits rather than rejected out of hand because it would impose addit…
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codetermination
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the practice of workers directly playing a major role in corporate decision making by means of board of director membership
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Employee Stock Ownership Plans (ESOPs)
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employees either get shares os stock without cost to get them or are allowed to buy the shares at a discount. Employers can realize significant tax benefits from the mechanism, and ESOPs have also been shown, often if not always, to improve the level of corporate efficiency
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quality of work life programs
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employee activities that allow direct participation in day-to-day decision making on the job. Most often, workers get a voice in work scheduling, quality control, compensation, and determination of the job environment itself, and/or other significant working factors.
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bumping
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the right of a senior employee in the event of a layoff to displace a junior worker and move into the latter's job
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subcontracting
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an arrangement made by an employer - for reasons such as cost, quality, or speed of delivery - to have some portion of its work performed by employees of another organization
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escalator clauses
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cost-of-living adjustment provisions in labor contracts that let wages rise and fall automatically with fluctuations in the cost of living
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Fair Labor Standards Act (FLSA)
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the legislation, originally enacted in 1938 and liberalized many times since then, that governs federal minimum wages and overtime requirements. It is also known as the Wages and Hours Act
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job evaluation
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any formalized system that tries to determine the relative worth of different jobs in the organization for differential pay purposed. Through complete job descriptions and equally detailed analyses of these descriptions, an effort is made to rank jobs in terms of their skill, effort, resp…
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job comparison
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a relatively unsystematic method of determining wage rates so that jobs of greater worth to the management can be rewarded by greater pay. Generally, some number of labor grades with accompanying wage rates or ranges is established and then each job is slotted into one of these labor grad…
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preferential shop
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union members receive preference in hiring but nonunionists can be employed
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management rights clauses
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contractual clauses that explicitly recognize certain stipulated types of decisions as being "vested exclusively in the management." They are also known as management prerogative and management security clauses
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seniority
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the length of time that an employee has been with an organization or organizational subunit. Greater seniority normally gives the worker increased job security, improved working conditions, and greater entitlement to benefits
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superseniority
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preferred seniority statues, beyond what one is entitled to by sheer length of service, in the event of layoff. Designated union officers often have such protection, as do some nonunion-office employees. The latter are typically designated as "exceptional", "specially skilled", "indispens…
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MGMT 530: EXAM 2