Differing Philosophies of Unions and Management

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2 Differing Philosophies of Unions and Management Unions generally believe that management exploits labor and is more interested in making a profit than in furthering the welfare of its employees Management often feels that unions foster inefficiency, reduce profits, and attempt to gain power at the expense of management authority Supervisión y control M. En C. Eduardo Bustos Farías 2

3 Development of Labor Law The first U.S. unions, as early as 1790, were organizations of skilled workers who sought to eliminate competition by banding together people in the same craft. They were generally held to be illegal In 1842 Massachusetts ruled that the union was not illegal, but that strikes and boycotts might be The Sherman Anti-trust Act of 1890, which made it illegal to restrain trade, was applied against unions and restricted their growth The Clayton Act (1914) stated that unions were not to be considered in restraint of trade. However, court interpretations of this law determined that unions on strike or boycotting could be considered in restraint of trade Yellow-dog contracts, which prohibit an employee from joining a union, and injunctions, which are court orders prohibiting certain actions, were used to restrict unions Supervisión y control M. En C. Eduardo Bustos Farías 3

4 Development of Labor Law During the 1920 s and 1930 s the increased number of unskilled and semi-skilled employees, who lacked job security and were not always treated fairly, caused public sentiment to become more prounion The Norris-LaGuardia Act of 1932 made yellow-dog contracts illegal and injunctions more difficult to obtain. It also gave workers the right to organize and bargain The National Labor Relations Act (Wagner Act, 1935) required employers to bargain collectively with the union and established the National Labor Relations Board (NLRB). This lead to power and growth of unions The Labor-Management Relations Act (Taft-Hartley Act, 1947) upheld the right of employees to unionize, broaden management s rights, prohibited unfair labor practices on the part of both unions and management. And prohibited closed shops Supervisión y control M. En C. Eduardo Bustos Farías 4

5 Development of Labor Law The Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act, 1959) is primarily concerned with the rights of individual union members An executive order in 1962 recognized the rights of federal government employees to join unions, but prohibited strikes and making union membership a condition of employment An executive order in 1968 gave the U.S. Secretary of Labor the authority to supervise union elections and investigate unfair labor practices in the public sector Supervisión y control M. En C. Eduardo Bustos Farías 5

6 Structure of Labor Unions There are four main types of union organizations: A. Federation of local, national, and international unions The AFL- CIO represents close to 80% of all union members in the U.S. Its elections and policies are set at a biannual national conference of delegates from the national and international unions and local affiliates B. National and international unions These have periodical national conventions at which each local union is represented in proportion to its membership C. City or statewide federations of local unions These are composed of and supported by the local unions to promote the interests of the area they serve D. Local unions These have local elections of officers who generally are not paid for their union activities. Local unions usually depend heavily on the staff of their national or international union for assistance in handling contract negotiations, strikes, and important grievances Supervisión y control M. En C. Eduardo Bustos Farías 6

7 Reasons For Joining Unions There are many reasons why people join unions: 1. Economic reasons, including higher wages, greater job security, better fringe benefits, and more clearly defined procedures for advancement 2. Better working conditions 3. More meaningful work 4. Fairer rules and procedures for determining promotions, discipline, etc. 5. Opportunity to be recognized and heard on issues 6. Opportunity to complain formally 7. The wish to belong 8. It is sometimes a required condition of employment Supervisión y control M. En C. Eduardo Bustos Farías 7

8 Reasons For Joining Unions There are also a number of reasons why some people do not want to join a union: 1. They want to progress into management 2. They feel that the union protects the mediocre worker 3. They want to avoid loss of income through union dues and strikes 4. They distrust the union Supervisión y control M. En C. Eduardo Bustos Farías 8

9 Union Organization Drive A group of employees decide they want a union and invite a representative of a national or international union to visit and solicit members If 30% of the employees sign authorization cards, an election can be held If the union receives a simple majority of the votes cast, it becomes the exclusive bargaining representative of the employees within the bargaining unit, whether or not they are union member Supervisión y control M. En C. Eduardo Bustos Farías 9

10 Collective Bargaining This is the process by which a contract is negotiated, written, administered, and interpreted. The contract represents the joint labor-management understanding as to the terms and conditions of employment A. Negotiation of the contract: 1. Labor and management each present their initial demands 2. The parties discuss the individual issues and resolve some of them 3. Key issues are usually not resolved until near the strike deadline 4. Over 98% of all negotiations settle without a strike 5. Sometimes a mediator is used to help the parties reach an agreement 6. The parties must bargain in good-faith as judged by the NLRB Supervisión y control M. En C. Eduardo Bustos Farías 10

11 Collective Bargaining Administering the contract: 1. The contract is a legal document that can be upheld by a court of law 2. Most disagreements are resolved through the grievance procedure 3. Management interprets the contract and settles complaints and grievance 4. If the union and management cannot reach an agreement, it is usually arbitrated by a neutral person whose decision is final Supervisión y control M. En C. Eduardo Bustos Farías 11

12 Supervisor s Responsibility to the Employer and the Union The supervisor s first responsibility is to the employer Must work toward achieving good productivity Must help uphold the commitments of management under the contract There are practices that the supervisor is legally required to avoid Restraining employees from forming or joining a union Trying to influence the labor organization Discriminating against union members Discriminating against an employee making a charge under the Labor-Management Relations Act Supervisión y control M. En C. Eduardo Bustos Farías 12

13 Supervisory Responsibilities and Unions Union organization: If a union begins an organization drive, the supervisor s actions are restricted by law Consult higher management before dealing with officials of the union Avoid arguing with employees over unionization Do not threaten or bribe an employee directly or indirectly with regard to joining the union Be very careful not to discriminate against any employee who is involved in the unionization attempt Do not change wages or fringe benefits during the unionization attempt Be on the lookout for unfair labor practices by the union, such as forcing employees to participate Supervisión y control M. En C. Eduardo Bustos Farías 13

14 Supervisory Responsibilities Working with the steward: and Unions The steward is both an employee of the organization and a union official. Showing respect for the steward s position is essential in developing a good working relationship 1. Keep the steward informed 2. Show that you understand and appreciate the difficulty of the steward s job 3. Show the steward that you are willing to compromise, but be careful to compromise only on issues within your authority During collective Bargaining: The supervisor may be consulted for information that affects the negotiation and should be prepared by keeping careful records over the contract period Supervisión y control M. En C. Eduardo Bustos Farías 14

15 Supervisory Responsibilities and Unions Administering the contract: The supervisor must equitably interpret the general provisions in the labor contract The supervisor is responsible for seeing that the entire contract is followed During a strike: Strikes occur between contracts when the parties cannot agree. The supervisor can do little to resolve a strike Slow-downs, sit-down strikes, or wildcat strikes may occur during the contract period. It is the supervisor s responsibility to determine who the leaders are and to encourage the employees to return to work Supervisión y control M. En C. Eduardo Bustos Farías 15

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17 What Is Motivation? It is getting people to exert a high degree of effort on their job Needs produce motives which lead to accomplishments of goals that satisfy needs Supervisión y control M. En C. Eduardo Bustos Farías 17

18 Understanding People A. Different factors are required to motivate different people B. People do things for a reason which must be understood before the supervisor can understand the person s behavior C. Employees tend to live up to the supervisor s expectations, either positive or negative Supervisión y control M. En C. Eduardo Bustos Farías 18

19 Basic Motivation Theories 1. Traditional Theory: a. Evolved from the work of Frederick W. Taylor in the early 1900 s b. In his system, individuals are compensated according to their production c. This theory is based on the assumption that money is the primary motivator of people Supervisión y control M. En C. Eduardo Bustos Farías 19

20 Basic Motivation Theories 2. Need Hierarchy Theory: a. Developed by Abraham Maslow b. Based on the assumption that employees are motivated to satisfy a number of needs, some of which are not related to money c. Maslow s five levels of needs are: physical, safety, social, esteem, and self-actualization d. Maslow believed that at any given time only one need level serves as a person s primary motivation and that a satisfied need is not a motivator Supervisión y control M. En C. Eduardo Bustos Farías 20

21 Basic Motivation Theories 3. Achievement-Power-Affiliation Theory: 1. Developed primarily by David McClelland 2. Based on the idea that people have the three needs of achievement, power, and affiliation 3. It is the responsibility of supervisors to recognize the differences in the dominant needs of both themselves and their employees and to effectively integrate these differences 4. Motivation-Maintenance Theory: 1. The theory was developed by Frederick Herzberg and is widely accepted 2. Based on the belief that the factors that demotivate employees (related to the work environment) are different from the factors that motivate employees (related to the job itself) 3. Herzberg developed an approach called job enrichment which involves upgrading the job by adding motivator factors. He emphasized the relationship between job content and the employee s feelings Supervisión y control M. En C. Eduardo Bustos Farías 21

22 Basic Motivation Theories 5. Preference-Expectancy Theory: 1. This theory was pioneered by Victor Vroom and is still being developed 2. Based on the belief that people attempt to increase pleasure and decrease displeasure and that they will be motivated to work if they believe that their efforts will be rewarded and they value the rewards 3. Employee expectations are based on their perceptions that increased effort will increase their performance which will be rewarded 4. Supervisors can help by giving training and direction, linking rewards to performance, and getting feedback from the employees regarding types of rewards Supervisión y control M. En C. Eduardo Bustos Farías 22

23 Basic Motivation Theories 6. Reinforcement Theory: 1. The general idea is that reinforced behavior is more likely to be repeated than behavior that is not reinforced 2. The four types of reinforcement are: a. Positive reinforcement b. Avoidance c. Extinction d. Punishment 3. Positive reinforcement is currently being emphasized in business Supervisión y control M. En C. Eduardo Bustos Farías 23

24 What Can the Supervisor Do? Make the work interesting Try to enrich the job with more responsibility or variety of tasks Relate rewards to performance Pay rewards may be restricted by union contract or organizational policy, but other rewards could be assignment of preferred tasks or some type of formal recognition Provide valued rewards Supervisors should know what kind of rewards are at their disposal and what rewards the employees value Supervisión y control M. En C. Eduardo Bustos Farías 24

25 What Can the Supervisor Do? Treat employees as individuals Treating people as individuals raises their self-esteem and encourages them to share their ideas with their supervisor Encourage participation and cooperation People tend to be committed to decisions in which they have participated and which they understand. Participation needs to be actively encouraged by the supervisor Provide accurate and timely feedback Lack of feedback produces frustration No one likes to be taken for granted. Feedback should include both positive and negative happenings Supervisión y control M. En C. Eduardo Bustos Farías 25

26 Job Satisfaction Job satisfaction is a general attitude that results from specific attitudes and factors a. working conditions b. pay and benefits c. the individual s attitudes toward the organization and supervision d. the individual s attitudes toward the work e. the individual s health and age Individual satisfaction leads to organization commitment and individual dissatisfaction results in behaviors detrimental to the organization Motivation is the drive to perform, while satisfaction reflects the individual s happiness with his situation Supervisión y control M. En C. Eduardo Bustos Farías 26