If the International Metalworkers Union (IMU) won the election and the right to represent workers against management at First National Bank (FNB), both sides would need to examine their respective bargaining power in preparation for the first contract negotiation. The extent of one’s leverage is critical in deciding the outcome of the bargaining process. Bargaining power consists of three different aspects: relative and total. IMU’s relative bargaining power rests on the members’ ability to withdraw their labor (strike leverage) and the elasticity of demand for labor. If the union has the ability to sustain a strike, they have a greater chance and more leverage to negotiate for higher wages and other gains. At the same time, FNB’s relative …show more content…
Since Lake City is often described as a “union town” and some of the FNB’s employees are “closely related to the IMU leaders”, the community’s heavy union presence will add to labor solidarity and therefore IMU’s strike leverage. The union also possesses strong relative power when the demand for labor is inelastic (when it is difficult to replace workers in the production process). However, if the labor market can easily provide substitute workers, then FNB would have relative power. Unlike relative power, it is difficult to assess IMU and FNB’s total bargaining power because they were not clearly stated in the case. However, total power is influenced by greater microeconomic (the degree of competition facing the bank) and macroeconomic (the overall state of the economy) factors. Therefore, without those changes, the amount of total power would not be affected by IMU’s win in the …show more content…
As explained by the bank’s lawyer, Francis Grant, “only a very small number of the employees were involved and that the union had no chance of getting 30 percent to sign cards that would be needed to hold an election”, there is a good chance that IMU lacks the necessary support needed to win an election. Likewise, the case reported that the union meeting was “made up largely of employees from technology, personal loans, and main office tellers” and “not all those who attended appeared to be in sympathy with unionization”, which shows a lack of widespread support for the union from other departments and towards organizing in general. Additionally, management can file a motion to delay the representation election, which would give management time to further weaken the already slowed union support. They can implement a campaign to convince its employees to reject presentation. Furthermore, studies have shown that unions only win around 50% of elections (due to various factors like opposition campaigns) so supporting a representation election is in the best interest of FNB’s management. However, FNB should also weigh the strategic benefits and costs of both methods. For example, Lake City is known as a “union town”, so supporting IMU’s card check proposal would help the bank foster better public relations with the community.
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).
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.
David Brody argues that the rise of contractual or collective bargaining relationships during the post WWII era formalized the relationship between employers and unions, but simultaneously began to put a break on shop floor activism. Explain Brody’s argument and, where relevant, incorporate Weber’s theory of bureaucracy.
Wolff provides a brief account of social and technological forces affecting membership and national authority of the steel union, violence and government intervention during the strike, and the profits of Carnegie and Frick and losses of union leaders during the strike’s aftermath.
Wallerstein, M. & Western, B. 2000. Unions in Decline? What Has Changed and Why? Annual Review of Political Science. 3: 355-377.
The American Federation of Labor was an association of trade unions starting 1886, rising out of an earlier Federation of Organized Trades and Labor Unions founded in 1881. The AFL's president, Samuel Gompers, was convinced that unions open to workers of all types of skills within a given industry,called industrial unions,were too undisciplined to withstand the tactics that both government and management had used to break American unions in the past. The answer, was craft unions, each limited to the skilled workers in a single trade. According to Gompers's "pure and simple unionism," labor should not waste its energies fighting capitalism; I ts sole task was to hammer out the best arrangement it could under the existing system, using strikes, boycotts, and negotiations to win better work conditions, higher wages, and union recognition.
In conclusion there were violations of the Unfair Labor Practice laws committed by both parties during the organization process, which were identified in the film. I have identified two committed by labor representatives, not particularly grievous, but significant enough that ULP¡¦ violations could be filed. Based on the violations committed by labor, I do not think there would be any ruling by the NLRB that would affect the election results. If the election had gone the other way I could not say the same for the violations that were committed by management. The film depicted many aspects of the union organization process including the interactions of all parties involved. The organization process is more detailed than what was shown, but the general ideas of most of the major steps were accurate. Those steps that were not shown were invisible to the film but not the formal organizational process.
Despite attempting to predict the eventual outcome of the negotiation, I did not anticipate the confrontations between Local H-56 and the management of Hotel Zinnia. Although they initially agreed to engage in integrative bargaining, the union and management subsequently entered an intense negotiation. When Local H-56 presented its proposal of wage increases and health insurance, management immediately responded with a counterproposal that surprised the union. Both the union and management eventually behaved confrontationally, accusing each other of bargaining unreasonably and focusing on the trivial aspects of the negotiation. Moreover, as the union and management felt increasingly frustrated, they suffered from a lack of unity in their teams. The union could not fulfill its objectives because its lead negotiator prevented other team members from contributing to the negotiation. On the other hand, several team members of management struggled to assert their authority as the lead negotiator. After observing these issues, I ultimately believe that the union and management failed to achieve their individual objectives. Moreover, by approaching the negotiation with a zero-sum strategy, I assert that the union and management failed to reach a mutually beneficial contract. At the same time, both sides of the bargaining table lacked cohesive teams and therefore struggled under the pressure of the negotiation.
Even though the very purpose of a union is to defend the interest of its members, the company could also use the instrument to promote the official point of views of the company’s management. In clear, the union and the management could work in good intelligence to promote the interest of worker and the interest of the company. Generally, the problem between management and union come when they one as another as an adversary and not as a partner. To be more constructive and create a working atmosphere profitable for both parties, union and company’s management need to work side by side to address real problems. Thus, worker must understand that the best job security for them comes primarily from the existence of the company and so their union should not be a mean for jeopardizing the company’s purposes. Similarly, the management must also understand that he will not achieve his annual goals unless the workers are well treated and the condition of work meet the standards set by official rules and regulations. This is a clear psychological contract between the company and it workers. The success of the company depends heavily on the respect of that psychological contract. Personally, I will play the role of a mediator between my boss and the worker who want to unionize and explain. I will clearly explain to my boss the benefit of having a union in the company and also explain to the worker the necessity to help the company increase it performance by working harder. And the union should not be a tool for undermine the efforts of the management to achieve better
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).
Flanagan, R. J. (2005). Has Management Strangled U.S. Unions? Journal of Labor Research, 26(1), 33-63.
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.
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...
Traditional literature in the field of labor relations has focused immensely on its benefit towards the employer and in the process equating it to working rules. This has been so despite the field being expected to cover the process of, labor management, union formation, and collective bargain; all which are anticipated to create a positive employer-employee relationship. This relationship is said to be positive if there exist a balance between employment functions and the rights of the laborer. Also important to note, is that this relation is equally important to the public sector as it is to the private one. Therefore, to ensure a mutually conducive labor environment exists, effective labor management process and inclusive negotiation program should be adopted (Mulve 2006; Walton, 2008).
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: