Unit V Lesson Notes It is understood that a labor union is an.docx
- 1. Unit V: Lesson Notes It is understood that a labor union is an organization that acts as a filter between its members and the organization in which the members are employed. It has also been identified that the main purpose of labor unions is to give employees the opportunity and power to negotiate for better working conditions, decent wages, and other benefits through collective bargaining. Now that the foundation of collective bargaining has been laid, it is now time to look a little further into some of the issues that employees bargain for. Whether working in a union or non-union environment, what would be one of your major concerns with employment? When addressing this question, many of you would probably state “compensation/wages” would be the main topic of interest. Sure, there are other perks that you would look for; however, most would not consider employment or would consider leaving current employer for better wages. According to the textbook, “wages and benefits represent the heart of the collective bargaining process. Guarantee of a certain standard of living and a reasonable return for their productive efforts is the major concern for most union members” (Carrell & Heavrin, 2013, p. 278). This second part of this statement can be said to be true for non-union workers as well. Although there are similarities among non-union and union environments, there are differences in how wages and benefits are determined and implemented. Non-Union Environment: Most non-union employees do not have the opportunity to negotiate their wages. Most of these organizations have a set pay rate or pay range for all positions. Many organizations conduct job analysis and job evaluations to
- 2. determine appropriate pay rates. When offered a job, some may try to negotiate on the front end with the hiring manager and/or human resources a certain pay rate. Sometimes, the employee does succeed and the organization may meet the applicant half- way or offer a little more to display true interest in the applicant. However, there are some organizations that will not budge and the applicant would be forced to accept or decline the offer. Even if the applicant does accept the offer, there may be limits on how often raises are given or if they are given at all. Based on experience, sometimes the applicant will accept the job and continue to look at organizations that offer better wages and benefits. Unlike union environments, wages can also differ tremendously among individuals who have the same job title and perform the same duties. This can have a major impact on the organization. Union Environment: Wages within union environments are negotiated. Pay rates/ranges, along with pay raises, are determined and outlined within the collective bargaining agreement. The pay rates/ranges are set for each job covered under the agreement. Many organizations will conduct job evaluations, wage surveys, and other methods when making wage decisions. Management must look at all internal and external factors that can impact wages and the ability for the organization to continue to make profit and be successful. Management must realize the organization is only as successful as the employees; however, sales, production costs, and overhead costs are only a few things that must be considered when determining an agreeable pay rate/range and the future of wage increases. Management must also look at competitors when make such determinations. It is important for the organization to offer competitive wages in efforts to retain quality workers. This can be difficult to determine at times, especially when many organizations have so many different job titles for similar positions. Not knowing the other benefits offered can also impact a true comparison. Company location
- 3. can also have a positive or negative impact on wage comparison. As you can see, although initial process may seem simple, it can be very difficult. Even when wage determinations have been set, there are other things that impact wages that the union will negotiate. Negotiated wages can take many forms including changes in base hourly rates, COLAs, two-tier pay systems, lump-sum payments, profit-sharing plans, wage differentials, overtime, holiday pay, and flextime. Other items to note in wage determinations include the following: way the organization -tier: Current union employees keep their pay rate; however, newly hired employees receive -sum payments: Bonuses are a form of lump-sum payments that some -sharing: Employees can gain a portion of the profits received by the Employees working different shifts may receive higher wages. (Example: Many manufacturing/warehousing organizations operate 24-hours, 7 days a week. Many of these organizations offer wage/shift differentials for those employees who work set guidelines for overtime pay. The organization must abide by these guidelines. Many employees are willing to work overtime Holiday Pay: This is negotiated because many employees either want the day off or want to receive higher pay for working on a organizations try to work with employees’ start time as long as it does not have a negative impact on production. Although all of these are important factors, management must always ensure the organization will be able to afford all agreed
- 4. upon terms. The organization must be able to stay in business and prosper. Keep in mind that in order to do this, management must conduct job analysis, job evaluations, and define job descriptions. If these measures are not done properly, improper wage rates could be agreed upon and lead the organization down the road of failure. The other major factor that is linked with compensation/wages is employee benefits. Even for those working in non-union environments, benefits are at the top of the list when making a decision about accepting a job or staying with an organization. Benefits, for some, are more important than wages. Consider the following scenario: John had been seeking new employment. His current company offered great wages; however, they did not offer decent medical benefits. When John got married and became a father, his view of compensation and benefits shifted. Whereas compensation/wages were a primary concern as a single man; now that he is a family man, he had to consider more than himself. John was forced to seek other employment and wanted to make certain the organizations researched offered medical benefits and retirement options. Based on this scenario, it is obvious that benefits can be just as important as compensation/wages. Within many collective bargaining agreements, benefits offered to employees are defined. According to the textbook, the four most expensive types of benefits in agreements include: income maintenance, medical care, pay for time not worked, and premium pay (Carrell & Heavrin, 2013). Of these four, today, health care is the main issue. Healthcare costs have skyrocketed and many individuals are not able to afford the expensive cost. There was a time when the employer paid 100% of the employees’ health coverage; however, now due to the increase in premiums, this cost is covered by both the employee and the employer. Retirement can be considered almost as important as health insurance for most employees. Many employees would like to know they have some sort of income to rely on once they
- 5. reach retirement age. These two demands are generally a hot topic among unions and management during negotiations. Some other benefits that are important include: vacation time, sick time/personal time off, paid holidays, severance pay, and reporting pay—this is when an employee is called into work on their day off or after the employee has already worked his/her shift and is asked to come back in. Unit V Essay: Assume that an unfair labor practice charge was filed against your company by several employees and three prospective employees. See the form linked below indicating the charge, which outlines the scenario below: FORM NLRB-501: Case 4689-3 On July 29, 2016, Delphi Golf, Inc. and the union entered a collective bargaining agreement. The majority of the company's employees covered by the agreement had not designated the union as their collective-bargaining representative. The agreement contains a union-security clause requiring employees who are members in good standing of the union to maintain their membership in good standing and all other employees to become members of the union on or before the 31st day following the effective date of the agreement or the date of their hire. The union instructed Delphi Golf, Inc. not to employ three servers for restaurant positions in the company because the servers were not members of the union. The company is an employer within the meaning of Section 2(2) of the act engaged in commerce within the meaning of Section 2(6) and (7) of the act. Explain in a two-page essay the process and steps your company will have to take to defend this action. Explain the defenses to the action and if the union employees have valid claims. What actions by the employer should have been done differently, if at all? What actions by the union should have been done differently? Who, if anyone, is liable? You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced;
- 6. paraphrased and quoted material must have accompanying APA style citations. Unit V Assessment: Question 1 1. According to the reading, the company has a financial obligation to its employees. The issue of organizations having the ability to pay the employees can be an important factor during the negotiation process. In efforts to make certain the organization has the ability to meet the financial responsibility to the employees, some things should be considered. Not only do the organization look at the financial obligation, they should also look at the worth or importance of the job. Within the reading, some processes that can be done to accomplish this goal has been mentioned. Based on what you have learned in this unit, define job analysis. Identify and discuss in detail two things that are a result of the job analysis. Your response must be at least 200 words in length. Question 2 1. Social security, unemployment insurance, and workers’ compensation are employee benefits required by law and are not negotiated. Based on the reading in this unit, identify and discuss the 5 groups of those benefits that are mandatory issues for negotiations. Provide an example of each. Your response should be at least 200 words in length.