Trade unions are important in the working environment, they organize and represent the interests of the employees and also ensure that their employment relationship is regulated through processes of collective bargaining (Venter & Levy, 2009). The interests of trade unions are also considered to be of importance because they look after the interests of those in the production processes. As a result models of behavior and collective bargaining were developed by Hicksian.
This paper will give a critical discussion of the Hicksian model of collective bargaining focusing on what the model entails the advantages and disadvantages of the model, and the bargaining attitude ratio.
1.2. What is the Hicksian model of collective bargaining?
According to Kamath (2012), the Hicksian models main focus lies on the length and cost of strike actions that take place in the working environment, he states that Hicks proposed that unions and management find a settlement between the cost and the benefits of the strikes.
In other words when the unions would strike what they striking for should be consider...
To conclude this analysis on the basis of the labor’s extensive history, Sloane & Witney (2010) propose, “it is entirely possible that labor’s remarkable staying power has been because of the simple fact that to many workers, from the nineteenth century to the present, there really has been no acceptable substitute for collective bargaining as a means of maintaining and improving employment conditions” (p.80). In the end, it is important to anticipate unions and employers presently work together to find solutions that will enhance collective bargaining strategies and practices to serve the interest of both parties.
Tensions between union supporters and management began mounting in the years preceding the strike. In April of 1994, the International Union led a three-week strike against major tracking companies in the freight hauling industry in attempts to stop management from creating $9 per hour part-time positions. This would only foreshadow battles to come between management and union. Later, in 1995, teamsters mounted an unprecedented national union campaign in attempts to defeat the labor-management “cooperation” scheme that UPS management tried to establish in order to weaken the union before contract talks (Witt, Wilson). This strike was distinguished from other strikes of recent years in that it was an offensive strike, not a defensive one. It was a struggle in which the union was prepared, fought over issues which it defined, and one which relied overwhelmingly on the efforts of the members themselves (http://www.igc.org/dbacon/Strikes/07ups.htm).
10-21- What are the basic arguments for and against extreme measures to fight unionization efforts?
The Pullman Strike of 1894 was the first national strike in American history and it came about during a period of unrest with labor unions and controversy regarding the role of government in business.5 The strike officially started when employees organized and went to their supervisors to ask for a lowered rent and were refused.5 The strike had many different causes. For example, workers wanted higher wages and fewer working hours, but the companies would not give it to them; and the workers wanted better, more affordable living quarters, but the companies would not offer that to them either. These different causes created an interesting and controversial end to the Pullman strike. Because of this, questions were raised about the strike that are still important today. Was striking a proper means of getting what the workers wanted? Were there better means of petitioning their grievances? Was government intervention constitutional? All these questions were raised by the Pullman Strike.
... of Labor Unions in Labor Markets. In R. C. Free (Ed.), 21st Century Reference Series. 21st Century Economics (Vol. 1, pp. 163-172). Thousand Oaks, CA: Sage Reference. Retrieved from http://go.galegroup.com.library3.webster.edu/ps/i.do?id=GALE%7CCX1700400026&v=2.1&u=edenweb_main&it=r&p=GVRL&sw=w
What is collective bargaining? This term is defined by Merriam-Webster (2014) as talks between an employer and the leaders of a union about how much a group of workers will be paid, how many hours they will work, etc. The primary goal of this bargaining process is to create a favorable working environment to make the task or job more effective, cost-effective, safe or gratifying. As organizations proceed through these methods, the likelihood of employers or employees being taken for granted or injured is reduced. In many instances, associations utilize this tactic specifically to set a common practice and deliver a message concerning social change they want to envision occurring. In these cases, more than one party or collection of personnel might be included. Collective bargaining is comprised of negotiations amongst an employer and a group of employees to define the circumstances of the work place. The outcome of collective bargaining processes is a cooperative settlement. Workers are often represented in negotiating by a union group or other labor group. Collective bargaining is governed by federal and state statutory laws, administrative agency regulations, and judicial decisions. In areas where federal and state law overlap, state laws are preempted (Mathis & Jackson, 2007).
A question that has frequently been ask over the years is, " Why should we care about collective bargaining? ". The thing that has been missing from the collective bargaining discussion is a real explanation and understanding of the concept. Collective bargaining has been described as a process when employees and their representatives form a united front, known as a union, to negotiate with their employers. These negotiations are usually over things like pay rates and salary amounts, benefits, and conditions at the workplace , among other issues. The principles of collective bargaining and unions come from the idea that employees as a group have far more bargaining power than individual employees trying to negotiate with their employer. Since collective bargaining has a basis in collaboration it is considered a very democratic process. The members of the employee union choose the issues to be bargained over and vote on if the agree to the contract proposed by their representatives and management.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
They are appropriate in many situations to ensure the demands of the employees are properly addressed and potentially adhered to. Management and unions seek to avoid a strike. With an honest assessment of the internal resources and external forces that affect union strategy, the union should be able to identify concrete accomplishments that are within reach and those matters that would be nice but are probably unachievable (Missouri, 2015). An example is the NFL referees union that organized a strike in 2012. The strike materialized for two primary reasons. First, the referees were seeking benefits that they put at $16.5 million over the five years of a new contract (Mills, 2012). Secondly, the NFL felt as if they could use replacement referees until the referees union
Labor relations emerged as response towards combating the economic unrest that accompanied the 1930 Great depression. At this period, massive unemployment, decreasing salary and wages, and over competition for jobs despite poor working conditions, was being experience; especially in the US. In turn employees were aggravated and therefore resorted to labor strike that often escalated to violence. To avoid such incident that could potentially harm further an ailing economy, the US government set precedent by passing their first related Labor relationship act, also referred to as the Wagner act. This act excluded public sector and some employees in the informal sector, farm workers to be specific. However, the progressive change in business and labor environment, necessitated changes in the labor laws to ensure they are more inclusive (Haywood & Sijtsma, 2000).
Collective bargaining may happen in several kinds of fields, ranging politics to sports. It allows appropriate settlement of disputes and issues that benefit both parties involved, producing a result that is not one-sided. Collective bargaining is “the negotiation of wages and other conditions of employment by an organized body of employees” (Beal, Wickersham, & Kienast 5). Four issues that are probable components of a collective bargaining agreement are:
A collective bargaining agreement collectively sets the terms on which an employer offers individual work contracts to each of its employees in the bargaining unit. A bargaining agreement, also herein referred to as a labour agreement, is a legally enforceable written commitment, which states the rights and duties of all parties involved. The labour agreement should be made in good faith and is intended to be observed and not violated. The National Labour Relations Act obligates employers and unions to bargain in good faith concerning terms and conditions of employment, including hours and wages. Like any normal contract, competent parties must enter into a labour agreement. However, a labour agreement is unique from other legal contracts in that there is no consideration involved and nothing tangible is exchanged. Many, but not all, unions require formal ratification of a new labour contract by a majority membership acceptance, which is determined through vote by the members. Until majority approval of those voting in a ratification election is received, the proposed labour contract is not final. While each labour agreement is unique to the needs of an organization and its employees, most agreements include five issues: (1) Management Rights, (2) Union Security, (3) Wages and Benefits, (4) Individual Security (Seniority) Rights, and (5) Dispute Resolution. Management Rights “Management” is the process of working with people and resources to accomplish organizational goals by making the best possible use of money, time, materials and people. The management process, when properly executed, involves a wide variety of activities including planning, organizing, directing and controlling. It is management’s role to perform all of these functions in order to maximize results.
Industrial Relations is a multidisciplinary field dealing with the study of employment relationship in union and non-union organizations. There have been various theories of industrial relations in place, but the first and most influential theory was put forward by John Thomas Dunlop. Dunlop, as a labor economist, remodelled the work of sociologists and developed a framework of industrial relations system. He developed the System’s Theory which stressed on the interrelationship of institutions and behaviors that enables one to understand and explain industrial relation rules.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
...04). The theory which in my opinion is the ‘best’ or most appropriate theory of industrial relations is the Pluralist theory. This theory has been in pole position in western societies for over thirty years. In today’s environment it is the most realistic theory as it assumes conflict is inevitable and recognizes that both employees and employers will have different objectives unlike the unitarist theories beliefs. It is now recognized that better managed industrial relations programmes and cooperation with trade unions can seriously impact on the prevention of disputes, increase productivity, quality and the motivation of workers within organisations and help to align employee objectives with the organisations objectives.