· Question 1 2 out of 2 pointsWhich of the following i.docx

· Question 1
2 out of 2 points
Which of the following is not considered a union unfair labor
practice?
Answer
Selected Answer:
under a valid union-shop agreement, demanding the discharge
of an employee who fails to pay union dues
· Question 2
2 out of 2 points
In recent years,
Answer
Selected Answer:

all of the above
· Question 3
0 out of 2 points
The first U.S. President ever to grant official recognition to
federal government employees to bargain collectively was
President
Answer
Selected Answer:
Nixon
· Question 4
0 out of 2 points
Recent media campaign ads by the Automobile Workers have
contained the message
Answer

Selected Answer:
"America works best when we say, 'Union, Yes!' "
· Question 5
0 out of 2 points
Most of the local union's time is devoted to
Answer
Selected Answer:
negotiating labor agreements.
· Question 6
0 out of 2 points

Most members of the National Education Association
Answer
Selected Answer:
support right-to-work laws
· Question 7
0 out of 2 points
About 85 percent of the UAW's spending goes to
Answer
Selected Answer:
strike funds.
· Question 8
0 out of 2 points

As compared to the Teachers, many of the building trades are
much
Answer
Selected Answer:
less active in research efforts.
· Question 9
0 out of 2 points
In 1970, an unprecedented federal sector eight-day strile was
carried on by the employees of the
Answer
Selected Answer:
State Department

· Question 10
2 out of 2 points
The American Federation of Labor was originally entitled the
Answer
Selected Answer:
Federation of Organized Trades and Labor Unions
· Question 11
0 out of 2 points
Under Taft-Hartley, if management or labor wishes to terminate
or modify an existing labor contract, it must give a
Answer
Selected Answer:
thrity-day notice to the other party.

· Question 12
0 out of 2 points
At present, the unionized percentage of all United States
workers is approximately
Answer
Selected Answer:
33.4
· Question 13
0 out of 2 points
In 1993, the Retail, Wholesale and Department Store Union
merged with the
Answer

Selected Answer:
Service Employees International Union.
· Question 14
0 out of 2 points
By 1917 some thrity states had introduced
Answer
Selected Answer:
antitrust laws for unions.
· Question 15
0 out of 2 points
Investigation of union misconduct under the Landrum-Griffin is
the responsibility of the
Answer

Selected Answer:
Senate Subcommittee on Ethics.
· Question 16
0 out of 2 points
COPE is a part of the
Answer
Selected Answer:
Furriers.
· Question 17
0 out of 2 points
When it has found that employees have been unlawfully

discharged for union activities, the NLRB has most frequently
required
Answer
Selected Answer:
automatic union certification.
· Question 18
2 out of 2 points
Employers may not hold a meeting with employees on company
time
Answer
Selected Answer:
within twenty-four hours of a representation election.
· Question 19

2 out of 2 points
With a passage of the Wagner Act, union membership
Answer
Selected Answer:
rose rapidly.
· Question 20
0 out of 2 points
Under the Taft-Hartley, employers may lock out their
employees when a bargaining impasse occurs if
Answer
Selected Answer:
the union has threatened to strike.

· Question 21
2 out of 2 points
Tight labor markets are those
Answer
Selected Answer:
in which new employees are difficult to recruit
· Question 22
0 out of 2 points
Only one of the following was among the nation's ten largest
internationals in 2003
Answer
Selected Answer:
National Engineering Association

· Question 23
0 out of 2 points
After it has secured bargaining rights, a local union typically
applies for
Answer
Selected Answer:
Whipsawing.
· Question 24
0 out of 2 points
When the AFL-CIO executive council was expanded to 53
members, 10 of the 18 new slots were reserved for
Answer

Selected Answer:
military veterans.
· Question 25
0 out of 2 points
The major weapon management used against labor organizations
before 1932 was
Answer
Selected Answer:
state legislation
· Question 26
0 out of 2 points
Labor relations consultants usually
Answer

Selected Answer:
earn seven-figure annual incomes
· Question 27
0 out of 2 points
When an employer promises to raise the wages of a worker if
he/she will agree not to join a union, the action is considered to
be
Answer
Selected Answer:
in contempt of the NLRB.
· Question 28
0 out of 2 points

The AFL executive council suspended the leaders of the CIO for
practicing
Answer
Selected Answer:
exclusive jurisdiction.
· Question 29
0 out of 2 points
Research suggests that the greatest single motivator of workers
joining unions is dissatisfaction with the extent of gratification
of
Answer
Selected Answer:
physiological needs

· Question 30
0 out of 2 points
Featherbedding is
Answer
Selected Answer:
the receipt of pay for work that is not needed.
· Question 31
0 out of 2 points
The number of national unions currently represented by the
AFL-CIO is
Answer
Selected Answer:
89

· Question 32
0 out of 2 points
The nation's oldest permanent national union is the
Answer
Selected Answer:
Molders Union
· Question 33
0 out of 2 points
Landrum-Griffin requires that union members
Answer
Selected Answer:

be allowed to have an open shop.
· Question 34
0 out of 2 points
Between 1932 and 1941, United States union membership
Answer
Selected Answer:
almost doubled.
· Question 35
0 out of 2 points
Among the earliest trade unions was that of the
Answer

Selected Answer:
teachers.
· Question 36
0 out of 2 points
A Bill of Rights for union members is included in the
Answer
Selected Answer:
Owen-Keating Act
· Question 37
2 out of 2 points
Under a "yellow-dog contract," workers must promise in writing
Answer

Selected Answer:
never to engage in union activities.
· Question 38
0 out of 2 points
Almost all national union constitutions now contain a
Answer
Selected Answer:
All of the above.
· Question 39
0 out of 2 points
The AFL-CIO's Public Employee Department

Answer
Selected Answer:
was founded in 1953
· Question 40
0 out of 2 points
In its 1984 Bildisco Manufacturing decision, the Supreme Court
unaimously ruled that
Answer
Selected Answer:
supervisors could not become union members.
· Question 41
0 out of 2 points

If a national union runs out of money to pay strike benefits to
striking members, other nationals will customarily
Answer
Selected Answer:
lend it food.
· Question 42
0 out of 2 points
In the area of government intervention in labor relations, the
trend seems to be that
Answer
Selected Answer:
due to heavy case loads, Congress will pass legislation to
increase state and local governmental authority.

· Question 43
2 out of 2 points
Most emplyees at both Disneyland and Disney World are
Answer
Selected Answer:
Teamsters
· Question 44
2 out of 2 points
The most successful of all U.S. unions in organizing between
1980 and 1995 were the
Answer
Selected Answer:
service employees.

· Question 45
0 out of 2 points
Proposition 226 related to
Answer
Selected Answer:
gays.
· Question 46
0 out of 2 points
The Teamsters were expelled by the AFL-CIO in
Answer
Selected Answer:

1973.
· Question 47
0 out of 2 points
If the NLRB or court rules that an issue does not fall within the
mandatory category of bargaining
Answer
Selected Answer:
either party may force the issue to an impasse.
· Question 48
0 out of 2 points
Of all Taft-Hartley unfair union practices, the most difficult to
interpret has been the ban on
Answer

Selected Answer:
excessive
· Question 49
0 out of 2 points
By far, the chief benefit associated with AFL-CIO membership
is
Answer
Selected Answer:
organizational help.
· Question 50
2 out of 2 points

Both the Automobile Workers and the Newspaper Guild
Answer
Selected Answer:
have always had a democratic system of internal government.
Administrative issues
Seniority
Discharge & Discipline
Health & Safety
Production Standards/Staffing
Administrative issues are the noneconomic parts of the contract,
although they definitely affect the bottom line.
1
seniority
Provides rewards/preferences

Objective
Defensible
Helps retention
Limiting for management
Greater length of service gives greater rewards, or preferences
in various areas such as promotion, job security, overtime,
vacation, work conditions, layoffs, recall, shift preference.
Seniority is objective so easier to administer than merit or
performance.
Seniority is easy to defend – to defend merit you must have a
good system of performance evaluation and trained, capable
managers to administer. Merit is easy for the union to
challenge, seniority is not.
Benefits associated with seniority can act as a retention tool.
Pension, vacation, sick leave, severance pay, etc. can keep
employees.
Seniority can limit managements ability to promote the best
worker.
2
Seniority
Employer wide v. Departmental
Bumping
Super Seniority

“Special Employees”
Temporary Layoffs
Employer-wide seniority – counts total service with company.
Departmental seniority – discourages transfers between
departments, discourages cross-training. What happens if a
department is eliminated?
Bumping – an employee scheduled for layoff can “bump” a less
senior employee from his/her job. This often causes a chain
reaction that can disrupt several departments. Usually there is a
limit to the number of subsequent “bumps”.
Super seniority – union officers that are required to administer
the grievance process (usually President, VP and Stewards) are
the last to be laid off regardless of seniority. They lose this
status when they leave office.
Special Employees – some contracts allow for designation of
employees that are indispensable because they are exceptional
or have special skills. They can be passed over for layoffs
regardless of seniority.
A “temporary” layoff (amount of time that differentiates “temp”
from “permanent” will be specified in the contract. Usually this
only affects one department – often when no work or shortage
of materials in part of a plant. In a temp layoff it is not

required to use seniority.
3
Legislation
Seniority v. Affirmative Action
Reverse Discrimination Issues
The Supreme Court has consistently rules that under Title VII
of the CRA is it ok to use “bona fide” seniority systems for
layoffs, even if this causes those in protected classes to lose
their jobs disproportionately.
Employers often try to “protect” certain individuals to
compensate for past discrimination.
This often brings about charges of reverse discrimination. The
Court has generally ruled that it is ok to give preference to
minorities in hiring and promoting for “traditionally
segregated” job categories - even if employer had not
previously discriminated. Prior to this it was only ok if
employer had history of discrimination.
Weber – white employee turned down for company training
program designed to increase the number of blacks in skilled
craft jobs even though he had seniority. Court confirmed this is
ok.

4
legislation
Firefighters v. Stotts
Wygant v. Jackson BOE
Johnson v. TA
Lorance v. AT&T
Firefighters v. Stotts – Affirmative Action programs cannot be
used to lay off senior white employees and retain junior black
workers.
-Supreme Court ruled this violated Title VII by preferential
treatment to black employees.
-Court held that the seniority system was bona fide and not
meant to discriminate.
Wygant v. Jackson Board of Education – labor agreement said
in layoffs that junior black teachers would be retained and
senior white teachers laid off to keep black teachers as role
models.
-Court ruling allowed for the belief that if the employer had
blatantly discriminated in the past then it might be able to
discriminate in layoffs to make up for “the effects of past
discrimination”.
-”Race conscious affirmative action as relief to dissipate the
lingering effects of pervasive discrimination”.
Johnson Transportation Agency – Court allowed a woman with
less seniority and lower test scores then a man to keep her job

because there had been a “manifest imbalance” in the workforce
– and she was qualified to do the job.
Lorance v. AT&T Technologies – began shifting of views
-Court restricted the time during which discriminatory practices
involving seniority systems could be challenged.
5
legislation
Wards Cove v. Atonio
Martin v. Wilks
U.S. Airways v. Barnett
Civil Rights Act of 1991
Wards Cove v. Atonio – plaintiffs (not employers) have the
burden of proving whether a job requirement that screens out
minorities or women is a business necessity.
Martin v. Wilks – Court approved affirmative action settlements
could be reopened to let white male employees file reverse
discrimination lawsuits.
U.S. Airways v. Barnett – ADA case – the Court ruled that
seniority should outweigh a disability.
-An injured baggage handler was temporarily reassigned, but
didn’t have the seniority to stay in that job long-term.
Civil Rights Act of 1991 countered this shift and the earlier

court decisions.
Shifted the burden of proof from the plaintiff as required by
Wards Cove back to the employer – made Martin null and void.
Allowed for punitive damages to victims of employment
discrimination if plaintiff could prove that the employer acted
“with malice or reckless indifference to the federally protected
rights of an aggrieved individual”.
6
Discharge and discipline
Just Cause
Appeals
Evidence/Proof
Communication
Mitigating Circumstances
Labor contract limits an employer’s ability to discipline to
“only for just cause”.
-The definition of just cause is subjective. Usually defined
through past practice and precedent, or through the grievance
and arbitration procedures.
-Most contracts layout items that are “dischargeable”, i.e.
incompetence, violation of work rules, slowdown or strike,
excessive absenteeism or tardiness, fighting, drugs/alcohol,
dishonesty, insubordination, sabotage, theft, vandalism.
-Contract also has procedures or “steps” for discipline, usually

oral, written, suspension
-Employer must provide notice to employee and union prior to
discharge – suspend employee, have a hearing then proceed with
discharge.
-Discharge appeals through grievance process – usually
discharge issues go right to 3rd step.
Evidence/Proof – similar to court, must prove facts and
allegations – “innocent until proven guilty”.
-Circumstantial evidence can be considered just as in a
courtroom.
-Use of “convincing proof” standard (as defined by the
arbitrator”, rather than “beyond a reasonable doubt” or “beyond
the shadow of a doubt”.
Communication – rules must be clear and specifically
communicated. “I didn’t know” is hard to defend if can’t prove
it was communicated. Use of handbook, bulletin board, emails,
memos or the contract are standard.
Mitigating circumstances – prior clean work record, medication,
personal issues, previous instigation, length of service.
7
Safety and Health
Required Subject
of Bargaining
OSHA

Safety and Health is an area in which employers are required to
bargain. The obligation to provide a safe work environment is
not only for employers, but also for unions and employees.
OSHA was established in 1970. OSHA inspectors are granted
the authority too inspect workplaces for safety violations.
Although there are not enough inspectors and onsite visits are
rare, the legislation is effective because of the agency’s
presence and because of the education it provides and requires
employers and unions to provide to employees.
Most companies have joint Safety and Health committees.
8
Production standards
Staffing/Efficiency
Conflicting Goals
Technological Change
Effects
Responses/Resolutions
Production Standards are the most controversial part of labor
relations.
-Union and management are on different sides of the issue, have
conflicting goals – if production per worker increases the need
for employees decreases resulting in less union members.
Pushing too hard and/or making employees work too quickly
can be unsafe. Unions want to review the production standards

that employers use.
Technological Change – Automation – Industrial “Robots” –
cause job obsolescence, even the threat of displacement can
cause morale issues.
Positives
Increased efficiency and profits, higher wages and higher
standards of living
Safer work place
Improved product quality
Union efforts to deal with technological change:
Advance notice of layoffs or shutdowns (WARN Act)
Adoption of “Attrition Principle” – agreement to reduce jobs
solely by attrition.
Retraining – do workers want this?
Restrictions on subcontracting – bone of contention for unions!
Employer usually wins at arbitration if a) subcontracting is
triggered by compelling economic reasons b) done in good faith
c) employer has used subs in past without union objection d)
work performed by subs not work usually performed by union
members e) current employees can’t do the work (not enough
or don’t have the expertise)
Other Measures – shorter workweeks, limiting OT, higher wages
for more responsibility, require management to consult with
union before implementing technological change, special wage
provisions for downgraded employees.
9
Production standards
Plant Closings
WARN Act
Notice Requirements
Penalties
Exemptions

WARN Act passed in 1988, covers employers with 100 FTE’s or
FTE equivalents.
Requires 60 days notice of shutdown or mass layoff if:
50 or more employees at a single site would lose their jobs
Layoff is planned for 6 months or longer that affects 50
employees and equals at least 1/3 of the workforce
Layoff is planned for 500 or more employees.
Penalties are stiff – include pay and benefits to the employees
for every day that notice is not given.
-Employer must also pay $500 per day notice is not given to the
community.
Exemptions include actions that cannot be “reasonably
foreseen”.
1. Unforeseeable business circumstances, i.e. Loss of major
customer
2. Natural disasters.
3. Faltering company - a company has sought new capital or
business to stay open and where giving notice would ruin the
opportunity to get the new capital or business, and applies only
to plant closings.
Natural disaster - flood, earthquake, drought or storm.
When the notices are given under these exceptions, they must
include a brief statement of the reason for reducing the notice
period in addition to the items required in notices.

10
Institutional issues
Rights and Duties
Employer
Union
Employee
Union Membership (Security)
Management Rights
1
Union security
Closed Shop
Union Shop
Maintenance of Membership
Agency Shop
Preferential Shop

Unions want security clauses to address 3 concerns:
Rival union could solicit members and take over
Employer could convince employees they don’t need the union
Free Riders – no protection against employees who don’t join
union but still get benefits, and union is obligated to represent
them.
Closed Shop – employee must join union before starting job –
so employer can only hire union members. Union becomes
employment agency.
Union Shop – employee must join union within designated
period of time.
Maintenance of Membership Clause (rare) – employee chooses
whether or not to join union. If joins, must stay in union for
duration of contract (or give up job). Negotiated window of
time to withdraw at end of contract, or must remain member
through new contract.
Agency Shop – employees don’t have to join union, but have to
pay dues. The justification is employees get benefits of union
activity and representation even if they don’t join. Sometimes
religious objectors can have money sent to a charitable
organization instead of the union.
Preferential Shop – union members are given preference in
hiring, but employer can hire non union members. Controversy
over the definition of the word “preference”!
2
Legal considerations with union security
Taft-Hartley restrictions
Required date to join
Loss of union membership

Checkoff Requirements
Right to Work Laws
Taft-Hartley forbids requiring new workers to join the union
unless 30 days of the effective date of the contract, or on the 1st
date of employment, whichever is later. This is only for new
employees.
Taft-Hartley also forbids the union to require an employer to
fire an employee because of loss of union membership, unless
the loss of membership is for nonpayment of union dues or fees.
If the employee is expelled from the union the employer cannot
be forced to terminate the employee.
-The employee’s only obligation to the union is to pay dues and
fees. There is no obligation for the employee to attend
meetings or participate in the union in any way.
Checkoff – dues collection system. The employer agrees to
deduct union dues from employees and send the money to the
union.
-Under Taft-Hartley the employer must have written
authorization by the employee.
-Authorization can only be irrevocable for one year or the
duration of the contract, whichever is shorter.
-Employers agree to checkoff because better than having union
try and collect dues at the workplace.
Right To Work Laws – forbid the union or employer to require

any type of membership in the union. Adopted by 24 states as
of today.
3
Union obligations
No strike clause
Wildcat Strikes
Boys Market v. Retail Clerks
Agreement to not interfere with production
The union must agree to something in order to obtain a security
clause. Virtually every contract has a “No Strike” clause.
-The union agrees not to strike for the duration of the labor
agreement.
-All disputes to be resolved through the grievance and
arbitration processes.
Wildcat Strikes – strikes by union members that are
unauthorized by the union. Not only a violation of the no strike
clause, also Illegal under the Wagner Act (NLRA). Employers
can fire employees who participate in wildcat strikes.
Boys Market v. Retail Clerks – the Supreme Court ruled that if
the contract has a no strike clause and an arbitration procedure,
then a federal court can issue an injunction to end a strike and
order arbitration.

Arbitrators have upheld that any slowdown, or union generated
action that interferes with production violates the no strike
clause.
Also, union usually agrees in the contract not to use the
employer’s time or property to conduct union activity that
interferes with efficient operations. This is highly subjective,
and interpretation often causes grievances.
4
Management rights
Residual
Trusteeship
Codetermination
ESOPs
Quality of Work Life
Management is responsible for efficiency and profitability of
operations and doesn’t want any restrictions on its decision
making. Unions seek to limit managements authority to make
decisions that it feels aren’t in the best interest of the union or
its members.
Management Rights is the clause that gives management the
right to make decisions that affect operations and its workforce.
Residual – anything not specified in labor agreement is

managements right to determine. (Most common)
Trusteeship – Employer is willing to discuss (but not
necessarily agree to) demands that could limit its authority.
Codetermination – workers participate on BOD of company.
Neither union nor management traditionally in favor of this.
Rare in US.
ESOPs – labor traditionally didn’t like because 1. employees
would identify with and see the positive side of management,
feel less need for the union, 2. A decline in the price of
company stock would hurt employees. At times the only way
management would increase payroll, by compensation tied to
the company’s financial performance. Gives employees
“ownership” in the company.
Quality of Work Life – joint worker/management problem
solving. Allows for direct participation by employees in day to
day on the job decision making.
-Dealing with terms and conditions of employment?
Electromation?
5
Supplemental benefits
Pensions/Retirement Plans
Vacation/Holidays
Health Care
Insurance
Other Benefits

Health Care, Dental, Vision
Life Insurance, AD&D, STD/LTD
Others – bereavement, jury duty, rest and lunch breaks, legal
assistance, day care, health club reimbursement, birthday off
1
pensions
Inland Steel Case – must bargain
Defined benefit v. defined contribution
Contributory v. noncontributory
Funded v. non-funded
Vesting
Inland Steel – Supreme Court ruled in 1949 that employers
cannot refuse to bargain with unions over pensions.
Contract will set age where employee can retire and received
(full or reduced) pension benefits as well as the years of service
required.

Defined benefit – employer risk, defined contribution –
employee risk
Non-contributory - (employer funds all), contributory – 401Ks
(tax-deferred plans) – employer often “matches” funds,
employee immediately vested in own contribution. Employer
sometimes offers higher match to 401ks for concessions in other
areas.
Funded pensions are guaranteed because the funds are isolated
from other company money.
Unfunded pension payments are dependent upon the employer’s
willingness and ability to pay.
Vesting – ownership in funds.
2
Pension legislation
ERISA – Employee Retirement and Income Security Act – 1974
Stemmed misuse of funds
Created PBGC
Pension Protection Act of 2006
Rules and requirements for employer pension plans
Further secured pension rights

ERISA passed because companies had misused or abused
pension funds or could not fund them as promised, also some
laid off or fired employees immediately prior to becoming
pension eligible.
Rules:
Employees must be 100% vested under 5 or 7 year plan.
All new pension plans must be fully funded.
Fiduciary responsibilities added to pension plan administrator.
Annual reporting and disclosure requirements.
Employees have right to receive annual information on vesting
and benefit status.
Established PBGC – guarantees pension up to a maximum if
employer goes out of business or doesn’t have funds.
PPA:
Employers who have underfunded plans must pay additional
premiums.
Closed loopholes that allow underfunded plans to skip pension
payments.
Employers must put aside 100% of cost of future pensions.
Employers terminating their pension plan must provide
additional funding for pension insurance system.
Outlines specific rules companies must follow to maintain
pension obligations.
3
Other benefits
Paid Vacation
Holidays
Health and Welfare Insurance
Severance Pay
Reporting Pay
Supplemental Unemployment

Paid vacation less than 70 years, grew in wartime when
vacations & holidays given in lieu of wage increases because of
wage controls.
-Employers agree helps with motivation and productivity.
-Paid straight time unless negotiated differently
-Agreement will spell out how to pay when employee works
-Vacation buy-back
-Once earned, vacation cannot be taken away – must pay if
employee leaves company
Holidays – US average 12, up to 45 in other countries
-usually 1.5 or 2X pay if work on a holiday.
-many companies provide “floating holidays”
Health & Welfare – growth spurred by IRS when it allowed
employers to deduct as a business expense
-group insurance plans make much more affordable
-Employers and unions started working together in 1980s when
prices soared to educate employees and provide options that
lower costs (HMOs, PPOs)
-Health, prescription, dental, vision, life, spouse/family life,
AD&D, STD/LTD, nursing home, critical illness, mental health,
retiree plans
4
Other benefits
Severance Pay

Reporting Pay
Supplemental Unemployment Insurance
Severance pay is specified in contract, usually 1 week per year
of service
Reporting Pay/Call-In Pay – must be negotiated – many have
minimum of 2 hours, most pay 4 hours.
Supplemental Unemployment – additional pay to unemployment
insurance paid by state. Some unions have required this as a
concession to less job security.
5
Issues to consider
Increase in Grievances
Automatic Cost Increases
Employee Participation
Cost Prohibitive
Entitlement

The growth of benefits packages increases the number of issues
that could be grieved, and the total number of grievances.
Benefits costs automatically rise with wage increases, as many
benefits are based on the employee’s pay.
Now that employees are more informed and asked to make
decisions, they expect to be consulted on changes to benefits
packages.
Employers must do more with less workers because the high
cost of benefits limits the number of workers they can hire.
This has increased the use of overtime, temporary employees
and outsourcing.
Benefits become an entitlement, and are more likely to have a
negative effect on morale than be a motivator. They are almost
impossible to take away once provided.
6
Areas of Contract Negotiation
Wages
Employee Benefits
Institutional Issues
Administrative Issues
Wages are the leading cause of strikes.

Include wage rates, wage differentials, overtime, wage
adjustments, bonuses.
Institutional Issues – rights and duties of employers and unions
Administrative Clauses – work rules
1
Wage rate standards
Comparative Norm – wages same as other industries
Ability to Pay – level of profits
Cost of Living – real income
CN – Wages same as employees in other companies in same
industry, doesn’t account for differences in geography, financial
health of company, labor costs or cost of production - use salary
surveys, benchmark studies
Difficulties:
Hard to classify some companies into specific industrial
category
Job titles don’t indicate what job really entails
Types of pay differ – hourly, piece rate, hourly +, group incent,
profit sharing
Other benefits vary so “total comp” different (holiday, vacation,
sick, pension)
Cost of living varies
Ability to Pay – usually level of profits indicator, but if profits

low perhaps company spent money on capital improvements,
executive bonuses, etc.
Risks:
Profitability rises and falls, not constant
Need for capital
Need to consider ratio of labor to total costs (company can pay
more when labor costs is small part of total costs), money spent
on benefits and whether demand for product will remain steady
or ebbs and flows
Can company can pass on cost of wage in creases through
higher prices, or would increase in prices significantly lower
sales? How competitive is the market?
COL – least used – COL determines real income. COL is
uncertain. Wages are negotiated for the future, and the only
accurate COL data is historical.
2
Using cost of living
Consumer Price Index (CPI) – average change in prices
Adjusting for CPI Movement
Escalator Clauses (COLAs) - automatic
Wage Reopeners - uncommon

CPI comes from Bureau of Labor Statistics, tracks average
change over time in prices for “market basket” of consumer
goods and services.
-Information comes from diaries kept by 7500 families for 2
weeks each year for 2 years and quarterly interviews with
10,000 families.
-200 categories of expenditures in 8 major groups: 1. Food and
Beverage 2. Housing 3. Apparel 4. Transportation 5.
Medical Care 6. Recreation 7. Education and Communication
8. Other Goods and Services
-Published for large metro areas
Escalator Clauses – theory that wages of workers should
automatically rise and fall with fluctuations of cost of living as
determined by CPI.
-Management believes CPI overstates the degree of inflation,
that consumers counter increased prices by buying less and
buying more of items that are less expensive, also COLAs
quickly become “entitlement”, hard to take away if CPI
decreases. COLAs are rolled into vacation pay, holidays,
pensions and this raises direct labor and benefits costs.
-contract specifies when reviewed and adjustments made
(usually quarterly)
-there is a low point below which wages cannot fall, rarely a
cap at high end
-Annual Improvement Factor – guaranteed wage increase in
addition to COLA
Wage Reopeners – allows either party to reopen contract for
wage issues at specific intervals (usually once per year).
-Must negotiate wages, no automatic changes
-Different from COLAS because can take into account factors
other than CPI
-Must give 60 days notice per Taft-Hartley, cannot lock out or
strike.
-Sometimes used as pretext to gain non-wage concessions.

3
Other wage issues
Wage Differentials
Overtime
Flextime
Wage differentials are lawful unless discriminatory. Mostly for
shift work to make up for odd hour shifts and interference with
family life. Some for hazardous or dirty tasks (undesirable
work).
Overtime – some offer after 8 hours in a day, double time on
Sunday, 1.5 or 2 times for 6th or 7th day worked in a row.
-Pyramiding of overtime – eliminates “double payment” of
overtime on hours already counted. If you paid overtime after 8
hours in a day, shouldn’t have to pay overtime for the same
hours after 40 in a week.
How to schedule overtime needs to be negotiated and part of
contract – voluntary or mandatory? Most or least senior? How
much notice required? Can an employee refuse for a
“reasonable” excuse? What is “reasonable”?
Flex Time – has required “core time”, outside of that employees
can determine what hours they want to work.
-not often part of union contract
-unions believe employers use it to reduce overtime and

increase the intensity of the workday.
4
Other wage issues
Establishing Fair Pay
Concessionary Bargaining
Two-Tier Wage Systems
Fair Pay Methods
Job Evaluation – uses job descriptions and job analyses to
“rank” jobs by:
a. skill
b. effort
c. responsibility
d. working conditions
– often uses point factors
2. Job Comparison – subjective
Concessionary Bargaining – giving up wages and benefits in
poor economic times – wage cuts, freezes, layoffs, etc.
Two-Tier Wage System – workers hired after the contract is
signed are paid less for the same jobs.
-Causes morale issues
-Makes it more difficult to recruit
-Causes retention issues – high turnover

-Can lower productivity
-Often affects quality
5
Grievance procedure
Grievance – official complaint
Grievance Process – resolution process
Procedural
Precedent Setting
Now that the contract is signed, must be continually interpreted
and applied.
Grievance is an official complaint alleging that the contract has
been violated.
Grievances can be files on behalf of union as a whole or a
single or group of union members
GP in place to help resolve controversy over interpretation of
contract – avoids striking over every issue.
Very specific rules and requirements, provides due process
-usually 3 steps, 1) Supv, 2) Plant Mgr, 3) Committee
-times limits for each step and responses

Results are precedent setting unless otherwise stated
1
arbitration
Arbitration – judicial process
Arbitrator – impartial outsider
Precedent Setting
Not used in bargaining
Arbitration specifics in contract – usually “final and binding”
(99%)
Arbitrator is an impartial outsider selected by both parties to
decide on the issue.
Decisions not usually high dollar amounts, but important
because they set a precedent.
Arbitration is rarely used for bargaining – neither side wants a
3rd party to have binding control over contract terms.
2
Pro-Arbitration Legislation
Lincoln Mills
Trilogy Cases
Collyer Insulated Wire
Misco
Gilmer v. Interstate Johnson Lane Corp
Eastern Associated Coal and the United Mine Workers

LM-Sup Ct ruled that an employer could not refuse to arbitrate
unresolved grievances if contract has agreement to arbitrate.
Trilogy Cases:
Warrior & Gulf Navigation – if no specific agreement excluding
arbitration the Sup. Ct. would direct parties to arbitrate.
American Mfg – Court cannot determine the merits of a case
(co. asked to not be forced to arbitrate as they thought
grievance was frivolous.
Enterprise Wheel and Car Corp-lower court reversed arbitrators
decision as not sound under labor agreement, Sup Ct. reversed
Collyer-NLRB deferred some cases to arbitration even though
they contained some elements of ULPs
Misco-unless fraud or arbitrator Dishonesty, courts cannot
reconsider the merits of the award.
Gilmer-ADEA claims must be arbitrated if agreement calls for
arbitration.
EAC-When both parties agree to resolve disputes through
arbitration, they gran to arbitrator the authority to interpret the
meaning of the contract language, including “just cause”.

3
Some Legislation Weakens Arbitration Agreements
Gardner-Denver
Anchor Motor Freight
FLSA decision
McDonald v. City of West Branch, MI
Gardner-Supreme Court ruled arbitrator’s decision not final and
binding when Title VII of CRA 1064 involved.
Anchor-a decision can be reversed by a federal court when the
union doesn’t provide fair representation to employees (its
members).
FLSA decision – Supreme Court rules that decisions involving
rights under FLSA can be reviewed and reversed, implying that
arbitration decisions are not final and binding when the issue
falls within any labor law.
McDonald-1st Amendment Rights and freedom of speech –
Supreme Court said arbitration is well suited to resolving
contract disputes, but not an adequate substitute when federal
statutory and constitutional rights are involved.
4
Preparing for arbitration
Selection Process
Permanent Arbitrator

Ad Hoc Arbitrator
Permanent Panel
Mini (Expedited) Arbitration
Preparation Activities
Select from list of names, usually at FMCS or AAA, some states
have arbitration panels.
Permanent-decides all disputes during term of contract – more
arbitrations because easy.
Ad Hoc – different arbitrator for each case. Drawbacks:
Takes time and effort to select arbitrator (average 250 days
from request arbitration panel to award)
Expensive
Opinion could disregard clear contract language and rewrite
agreement.
Confusing opinions lead to further issues.
Opinion doesn’t reflect the reward
No recourse if not fair and impartial or doesn’t deal with major
arguments, or ignores material evidence.
Arbitrators not bound by decisions of other arbitrators.
Mini-tight time deadlines, no transcripts or briefs, short and
precise awards – lowers costs, can transfer to regular arbitration
if issue is complex.
Preparing for Arbitration – gather evidence, facts, documents –
must educate arbitrator about issues, facts, evidence, arguments

and relevant clauses in contract.
5
Arbitrator responsibilities
Follow Code of Ethics
Bound by language of agreement
Fair, incorruptible and unbiased
Knowledgeable
Responsible for proceedings
Prompt and clear award
-Must adhere to strict Code of Ethics
-Bound by language of labor agreement – not in arbitrators
scope to determine whether a particular clause is good or bad,
must apply as is.
Usually not clear cut language (or wouldn’t need to
arbitrate)
Look at past practice, how language has been applied in
the past.
-Fair – decision based on evidence and language, free from bias
-Educated in arbitration and have knowledge of labor relations.
-Responsible to keep decorum during hearings and to keep
proceedings moving, keep control

-Keep witnesses from being badgered or insulted
-Issue a prompt decision (usually within 30 days of hearing)
Awards should be clear and to the point, leave no questions.
-Include clear and specific direct action required and time frame
to comply
-Should write opinion to support decision-set forth basic issues
of case, facts, positions and arguments of both sides, and reason
for decision.
6
Grievance mediation
Relatively new
Informal
Quick
Non-binding
Uses experiences arbitrators, but 1st tries to help parties reach a
mutually satisfactory settlement.
Focus on the problem rather than the contract.
Information, no cross examination, no briefs, no record of
proceedings.
Handled in hours.
If no settlement is reached the arbitrator gives an opinion

(advisory only) as to how the case could have been decided if
this was an arbitration.
If this case goes to arbitration the arbitrator who sat in on the
mediation cannot serve as arbitrator, and nothing said in this
process can be used in arbitration.
7
AT THE BARGAINING TABLE
Preparation-up to 18 months
Determine subjects/issues
Research
Meeting logistics
1
Bargaining begins!
Present list of demands
Evaluate positions
Cost out proposals
Watch carefully!

2
THE bargaining process
Bypass Difficult Issues
HR Mistakes
Have Acceptable Alternatives
Joint Study Groups
Mediation
Coordinated Bargaining
3
boulwarism
Identify Issues
Resistance to Modification
Early Final Offer
Stand Firm

4
Factors affecting bargaining
Health of economy
Health of industry
Technological innovations
Strength of union and company
Failure to understand other side
Differences in managements
Personalities
5

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