Posted: December 3rd, 2014

Labor Class chapters 12, 13

Labor Class chapters 12, 13

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Textbook Labor Relations Striking a Balance 4th edition written by John W. Budd. Chapter 12. Discuss the extent to which aspects of labor relations in other countries

should be adopted in the United States. Foer example, should United States adopt mandatory works councils?

Cgapter 13
Debate wheater or not the United States labor relations system is necessarily adversarial. Clearly there are numorous examples of adversarial behavior by both

companies and unions, but is this their choice or is there something in the system that forces their behavior?

Forums / Class Meeting # 6 December 3 – December 9
Class Meeting # 6 December 3 – December 9 Part Four: Reflections
Discussion – Comparative Labor Relations ( 0 messages – 0 unread ) Chapter 12 – Comparative Labor Relations: Discussion Overview, Outline and Question Hide Full

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The previous chapters present the U.S. labor relations system in detail, but labor relations in other countries can be very different. The scope of bargaining, the

extent of legal protection, and the nature of labor unions vary from country to country. Studying labor relations in other countries provides a richer understanding of

the subject, can present ideas for reforming the U.S. system, and is also important for working professionals in a global economy.

The goal of this chapter is comparing the U.S. labor relations system to other systems. The basic elements of labor relations systems around the world, including a

brief history and current status report, are described for major industrialized democratic countries around the worlds, as well as for the emerging economies of

Eastern Europe and Asia.

After presenting these country vignettes, the discussion of globalization is revisited with particular emphasis on how globalization is causing converging divergences

of labor relations practices across countries through pressures for decentralization and flexibility. A consideration of the extent to which the labor relations

experiences of other countries can provide ideas and lessons for reforming the U.S. labor relations system concludes the chapter.

Understanding how labor relations works in other countries is critical for managers and union leaders who have professional activities involving other countries.

Describing the broad outlines of the traditional workings of labor relations systems of a number of representative developing countries is therefore the primary

objective of this chapter.

Several themes can be used to tie country discussions together:

• One, try to think of each country’s system as an alternative approach to achieving the same underlying goal—balancing efficiency, equity, and voice.
• Two, the country examples provide various options for U.S. unions (e.g., seeking board representation as in Germany, more social and political activism as in France,

or more of an enterprise focus as in Japan).
• Three, the country examples also provide options for U.S. public policy changes (e.g., minor changes as in Canada, mandatory works councils as in Germany, or

deregulation as in Australia and New Zealand).
• And four, many of the countries illustrate how unique the U.S. system is—exclusive representation and legalistic contracts, for example, are largely North American

phenomena; in many countries, there is not a close association between union membership and contract coverage; and the U.S. is almost alone in lacking widespread

unjust protections.
Lastly, it is useful to tie in the last chapter on globalization. A simple view of globalization is that national systems become irrelevant (the convergence thesis).

In contrast, there is divergence as national institutions remain important for shaping union, corporate, and worker behavior.

Discussion Outline

I. Advance Organizer
A. Labor relations in other countries can be very different, including
1. The scope of bargaining
2. The extent of legal protection
3. The nature of labor unions
B. Studying labor relations in other countries
1. Provides a richer understanding of the subject
2. Can present ideas for reforming the U.S. system
3. Is important for professionals in a global economy

II. Learning Objectives
A. By the end of the chapter students should be able to
1. Compare the basic features of labor relations systems in major industrialized, democratic countries around the world
2. Identify the basic features of labor relations systems in the transition and less developed economies of eastern Europe and Asia
3. Understand various options in labor relations systems for reacting to the pressures of globalization, decentralization, and flexibility while balancing efficiency,

equity, and voice
4. Analyze the extent to which the labor relations experiences of other countries can provide ideas and lessons for reforming the U.S. labor relations system

III. Introduction
A. Comparing the U.S. labor relations system to others is important for three reasons
1. Intellectual reason: promotes broad thinking about underlying problems of balancing efficiency, equity, and voice and allows stronger understanding of the primary

issues in labor relations
2. Public policy reason: provides ideas for reforming the U.S. labor relations system
3. Practical reason: necessary if you work for an organization that does business abroad or for a union that has strategic alliances with unions in
other countries
B. A traditional claim is that U.S. labor relations is exceptional
1. Low levels of support for unionization
2. Lack of a socialist movement
3. Legal protection of individuals rather than unions
4. Intense employer resistance to unions
C. This is unique to the United States
1. The opposite is true in other industrialized, democratic countries
D. Note the sometimes great differences with the U.S. labor relations system
1. Exclusive representation
2. Contracts are not always legally enforceable
3. Business unionism isn’t always the dominant philosophy
4. Unions and employers may be organized differently
5. In many countries, union membership is not as closely associated with being covered by a union contract
E. Union membership contract coverage
F. Similarities around the globe
1. Contemporary pressures on labor, management, and government—globalization, decentralization, and flexibility
2. Objectives of efficiency, equity, and voice
3. Balancing labor rights and property rights
4. Labor relations outcomes determined by the environment and individual decision-making
G. Common dimensions of labor relations systems

IV. Canada
A. Labor unions in Canada and the United States have similar structures
1. Many Canadian workers are represented by U.S unions
2. Canadian labor law is patterned after the U.S. Wagner Act (but not the Taft-Hartley Act)
3. Exclusive representation, bargaining structures and strategies, and the resulting union contracts are similar

V. U.S. and Canada Law
A. Small differences that matter?
1. Some provinces allow card-check certification or instant elections
2. Some provinces provide for first contract arbitration
3. Most provinces ban the use of permanent replacements; two ban all replacements
4. No province has a right-to-work law
5. Unions are guaranteed at least an agency shop in many provinces

VI. Mexico
A. Labor relations in Mexico
1. Workers’ rights guaranteed by the Constitution, although the extent of enforcement is questionable
2. A union can be craft, industrial, or enterprise
3. Unions must register with the government
4. Unions do not have to represent a majority of the employees to engage in collective bargaining, but they do in order to strike
5. Once approved by the government, contracts are legally enforceable
B. NAFTA has focused increased attention on the labor relations system of Mexico
1. Mexican law has strong protections for workers and unions, but enforcement is questionable
2. Labor negotiations and unions are controlled by the government (economic development strategy)
3. There are sharp clashes between the government and independent labor unions
4. The government focuses on competitiveness and foreign investment at the expense of democracy and working conditions
C. Government control of labor unions is facilitated by Mexican labor law
1. Unions must register with the government
2. Sham unions are widespread
3. Government agencies play significant roles in determining the legality of strikes and in approving contracts
D. Mexico continues to be representative of labor relations in developing countries
1. Strong rights on paper, but high degree of state control that conflicts with labor movements

VII. Great Britain
A. The British labor relations system is based on voluntarism
1. Labor and management use economic power, not legal rights, to get the other side to do something
2. Contracts are not legally enforceable
3. Labor and management abide by the contract as long as the costs of following the contract are smaller than the costs of breaking it
B. The Trades Disputes Act facilitates voluntarism
1. Unions are immune for being sued for breach of contract and for striking
C. Thatcher’s conservative government passed restrictive laws in the 1980s
1. Restricted the ability of unions to conduct secondary boycotts
2. Outlawed the closed shop
3. Required democratic procedures for elections and determining strike support
D. The labor movement traditionally had close ties to the political Labour Party
E. Current issues facing British Unions are similar to those in the U.S.
1. Decline in union density
2. Employer demands for flexibility and cooperation
3. The future course of public policy
4. Labor is looking toward the EU for standards and policies in favor of workers and their representatives
F. The balance between efficiency, equity, and voice in a voluntaristic system
1. Depends largely on markets and the economic leverage of the two parties
2. Lacks legal standards for representation/bargaining
3. Strong leverage can result in representation mechanisms that are illegal elsewhere
4. Allows the agreement of any arrangement that is mutually acceptable, where “acceptable” is determined by bargaining (economic) power

VIII. Ireland
A. Irish labor relations are very similar to British labor relations
1. Voluntarism and labor union immunity from common law liabilities
B. Collective bargaining was adversarial and produced restrictive work rules
1. Until 1980, Ireland was one of the most strike-prone countries in Europe
C. The Industrial Relations Act of 1990 implemented reforms similar to Britain’s
1. Restrictions on secondary activity and picketing
2. Requirements for secret ballot strike votes
D. The Irish included social partnership on top of its voluntaristic labor relations system
1. A social partnership between labor, business, and government
2. Results in a series of peak-level agreements on social and economic issues
E. Peak-level organizations are the highest national groups
1. They represent the public, business, and the government
F. For the public, this is the government
1. For labor, the major labor union federation
2. For employers, the major employer’s association
G. In a corporatist political system
1. Peak-level organizations are integrated into the political decision-making process
2. This contrasts to a pluralist political system, as in the U.S., in which interest groups compete for influence by lobbying lawmakers
H. Peak-level organizations in Ireland
1. The government
2. The Irish Congress of Trade Unions
3. The Irish Business and Employers’ Confederation
I. Benefits of the social partnerships
1. Inclusion
2. Stability
3. Predictability
4. A climate of consensus, rather than conflict
J. The centralized social partnership is under pressure at the workplace level
1. Management wants greater flexibility, pay-for-performance, and other decentralized, efficiency-enhancing HR management innovations

IX. France
A. Labor relations in France consists of
1. Militant, often politically oriented unions
2. Weak collective bargaining
3. Low union density
4. High coverage by industry-level agreements
5. Several mechanisms for workplace-level representation
B. French union federations have distinct political or ideological perspectives
1. Communist, socialist, Christian
C. Sharp ideological differences make a stable social partnership nearly impossible
1. Political mobilization and political strikes have been as important, if not more important, than collective bargaining
D. France represents ideological unionism
1. This is a pluralist rather than a corporatist model
2. French unions (outsiders) pressure the government to enact policies favorable to the union’s agenda, rather than participating in policymaking (insiders)
E. Bargaining takes place on three levels—multi-industry, industry, and company
1. Industry-level agreements can be extended to all employers
2. Companies can be required to bargain at the company level, even without majority support for a single union
3. Thus, while union density is very low, the fraction of workers covered by collective agreements is very high
F. Collective bargaining agreements are weak by U.S standards
1. This is offset by national laws that favor workers
G. French law provides non-union forms of workplace-level employee representation
1. Employee delegates
2. Works committees
3. Guaranteed right of expression

X. Germany
A. The German Trade Union Confederation
1. Accounts for 80% of German union membership
2. Has eight affiliated unions, each of which represents a specific industry
3. Employer federations are also organized by industry
4. The dominant worker and employer unions in each industry engage in sector bargaining
5. Industry-wide bargaining that produces a contract for the entire sector
B. Sector bargaining
1. Often takes place at a regional level, but is tightly coordinated by the national organizations
2. Establishes minimum standards that apply to all members of the employer’s association
3. Agreements can be extended to other companies by the government
C. Strikes are illegal during the life of an agreement
1. A company cannot invalidate the contract by leaving the employers’ association
D. Codetermination compliments sector bargaining
1. It is an institutionalized system of employee voice
2. Workers are entitled to participate in workplace decision making
E. Codetermination has two components
1. Works councils
2. Employee representation on corporate supervisory boards
F. Works councils
1. Workplace-level committees which represent nearly all workers in dealings with management
2. German law entitles all workers in companies with at least five employees to form a works council
3. More than 90% of establishments with at least 500 employees have a works council; less than 10% of small establishments do
4. Works councils have codetermination, consultation, and information rights
G. The existence of a works council does not depend on a local union presence
1. In practice, union members are likely to be active in the works councils and unions help provide training and expertise
H. Works councils must meet with an employer at least once a month
1. The company pays the works council’s expenses
I. A works council
1. Cannot strike
2. Can sue if an employer does not fulfill its legal obligation of codetermination, consultation, and information provision
J. Objective
1. “…the employer and the works councils shall work together in a spirit of mutual trust… for the good of the employees and of the establishment.”
K. Rights of German Works Councils
1. Codetermination: To jointly determine issues pertaining to work rules and discipline, daily working hours, leave schedules, performance-based pay and bonuses,

overtime, safety and health, training, and personnel selection methods
2. Consultation: To be consulted before an employer changes the nature of work
3. Information: To be given financial information regarding the firm’s balance sheet, investment and marketing plans, and other corporate intentions
L. German companies have two boards
1. A management board controls day-to-day management of the firm
2. It reports to a higher-level supervisory board that sets strategic policies and appoints upper-level managers
3. Employees are entitled to representation on the supervisory board
4. This provides workers with a voice when strategic decisions are being considered

XI. Sweden
A. Labor relations broadly similar to those in Germany
1. A very high contract coverage rate
2. A dual representation structure
3. Centralized, industry-wide collective bargaining
4. Strong workplace representation
B. An important difference
1. Workplace representation has been institutionalized by culture and tradition, not by law
C. Economic pressures are causing greater decentralization in bargaining
1. Peak-level negotiations have been sporadic
2. Industry-wide agreements are less detailed
3. Local agreements have become both more important and more diverse
D. New forms of work organization
1. Moved Swedish labor movement from a focus on “solidaristic wage policy” to a “solidaristic work policy”
2. Replaces “equal pay for equal work” with “true empowerment in flexible work systems”
E. The solidaristic work policy advocates
1. Self-directed work teams
2. Training, job and skill development
3. Compensation for skills and responsibilities

XII. Stalinist Industrial Relations
A. In Eastern Europe, after WWII
1. The Soviet Union and communist countries followed a Stalinist model of industrial relations
2. In centrally-planned Stalinist economies, managers of state-owned enterprises and unions were controlled by the Communist party
3. Unions were critical to this economic/political system
4. Acted as a “transmission belt” for the party by delivering its agenda to the working class
B. Unions had dual roles
1. Facilitate the state’s production goals
2. Protect individual workers from abusive managers
C. Unions administered the government’s social benefits, such as housing
1. Membership rates were understandably high
D. Strikes and independent unions were illegal
1. Collective bargaining didn’t occur
2. Wages and other items were determined by central planners

XIII. The Solidarity Movement
A. Led by electrician Lech Walesa
1. 17,000 workers conducted a sit-down strike at the Lenin Shipyards in Gdansk, Poland in 1980
2. Polish workers won the right to form independent unions
3. The Solidarity union was born
B. In 1981, martial law was imposed and Solidarity was outlawed
1. Strikes in 1988 pressured the government
2. Solidarity was legitimized in 1989

XIV. The Fall of Communism
A. The fall of the Berlin Wall in 1989
1. Marked the end of communist East Germany
2. By the end of the year, communism was collapsing throughout Eastern Europe
B. The Solidarity movement underscore the power of collection action
1. There is a need for independent labor movements

XV. Eastern Europe Today
A. Now legalized
1. Collective bargaining, economic strikes, independent unions
B. Stable labor relations systems haven’t emerged; unions struggle to find their roles
1. Workplace advocate?
2. Independent political representative of the
working class?
3. Part of governing coalitions responsible for shaping new economic and political institutions?
C. The legacy of the Stalinist model
1. Weak unions at the enterprise and workplace levels
2. No experience in collective bargaining
3. Little rank-and-file involvement

XVI. Australia
A. Unions organized primarily along craft or occupational basis
1. Typically had members in more than one industry
2. Managers often had to deal with multiple unions
3. The average number of unions per firm was 12
B. Union density has declined sharply
1. From above 50% to around 25%
2. Focusing on union mergers and increasing member services to boost membership
C. The central feature of labor relations
1. A centralized awards system
2. A federal or state arbitration commission issues an award that specifies minimum standards for pay and working conditions
D. The arbitration system was designed to prevent strikes
1. Provided wages that fulfills “the normal needs of an average employee, regarded as a human being living in a civilized community”
2. Based on a family of five
E. Wage differentials for skilled occupations
1. Established relative to the basic wage award
2. During tight labor markets, unions negotiated for “over-award” pay
F. Working conditions negotiated separately
1. Often informally and with high levels of wildcat strikes
G. Moving away from centralized awards
1. Moving toward greater decentralization and enterprise-level bargaining
H. Australian nonunion workplace agreements are now allowed
1. Work Choices Act replaced the federal arbitration commission with an Australian Fair Pay Commission
2. Centralized award system has decreased in importance
3. Enterprise workplace agreements have increased
I. The impact of Australian workplace agreements remains to be seen

XVII. New Zealand
A. Labor relations exhibits a similar trend, but with even more radical reforms
1. A federal arbitration commission issued awards for minimum conditions
2. Collective bargaining, often on a multi-employer basis, established above-award terms
3. An employer could unilaterally establish terms and conditions of employment as long as they exceeded minimum standards
B. New Zealand has pursued decentralization
1. 1991 Employment Contracts Act replaced the awards system with voluntarism
2. Unions could negotiate collective contracts, but only with authorization from each worker, and if the employer wanted to bargain
3. Otherwise, individual nonunion contracts were used
C. Employment Relations Act 2000
1. Moves the country away from pure voluntarism
2. Individual contracts are still allowed, but employers must bargain in good faith with a union if employees request it
3. It is illegal for employers to pressure or discriminate against employees in order to encourage or discourage union membership

XVIII. Japan
A. Primary feature of labor relations is enterprise unionism
1. The union only represents workers in a single company (enterprise)
2. Higher level managers are excluded
3. Several enterprise unions may coexist within one company
B. Union density is about 22%
1. There are nearly 7,000 labor unions
C. There are close ties between management and union leadership
1. Supervisors are often part of the enterprise union
2. Union leaders are often career employees who move through the management ranks
D. This system is embedded in a larger system of human resource management
1. Lifetime employment
2. Seniority and firm-based wages
3. Broad job classification
E. Japanese labor relations is characterized as cooperative and consensual
1. Unions are concerned with company performance and tailor demands and agreements accordingly
2. Enterprise-level consultation and bargaining are complemented by an annual wage negotiation process called Shunto
F. The U.S. and Japan have a broadly similar labor law framework
1. Based on using unfair labor practices to support employee rights to organize and bargain
2. Limited use of exclusive representation and majority rule
3. Enterprise unions are not mandated by law
G. The Japanese system is often advocated as a model for the U.S. to emulate
1. High levels of employee participation
2. Union concern for firm profitability
H. Some claim the Japanese system is both cooperative and productive
1. Others feel it is management-dominated sham union
I. In a system of enterprise unionism
1. Existing unions have little incentive to organize new unions at other establishments
2. Overall labor movement solidarity is low

XIX. Asian Developing Countries
A. Asian countries have different approaches for dealing with flexibility and competitiveness needs
1. High-level tripartite or corporatist model (Singapore)
2. Pluralist model with varying combinations of political representation and collective bargaining (Philippines, India)
3. Government controlled (Malaysia, Indonesia)
4. Systems that are in flux (China, South Korea)
B. Governments exercise tighter control over unions and labor relations than in developed countries
1. Singapore’s tripartite system: unions participate actively, limitations on bargaining items/strikes, government approves bargaining agreements
2. In the Philippines: restrictions on strikes, permanent strike replacements are allowed, unions are required to belong to a single government federation
C. An important underlying thread
1. The subservience of labor relations to the country’s industrial development strategy

XX. China
A. Change has been driven by economic rather than political change
1. Moving from socialism to a mixed economy (market socialism)
2. Little loosening of the Communist Party’s control over the political system
3. Organized labor is not yet completely free
4. Economic development trumps labor rights
5. There is only one legal union federation, and strikes are still restricted
B. Union representation
1. Undermined by laws regulating outcomes that require the Communist Party to give up control
2. Communist/socialist ideologies insist on aligning the interests of workers, managers, and the state
C. Unions are mandatory in foreign-owned businesses, but this is not universally enforced
D. Unions are dependent on and integrated with management
E. Unions have no experience representing workers’ interest over employers’ interests
1. The All-China Federation of Trade Unions have 100 million members, bit is a paper tiger
2. The ACFTU is more of a “quasi-government organ” than a labor union

XXI. Bargaining or Legislating Labor Standards?
A. U.S. emphasis is on exclusive representation and majority support
1. This is often absent outside of North America
B. European labor systems exhibit
1. Consultation between labor and management through peak-level organizations at a national level
2. Consultation through works councils at a workplace level
C. Some countries have centralized, industry-wide bargaining arrangements
1. Others focus on enterprise-wide unions
D. U.S. labor contracts are highly complex, legally enforceable documents specifying a wide range of employment terms
1. In many other countries, agreements are a skeletal specification of minimum terms, and are not legally enforceable
E. Political activities of the labor movement in many countries are as important as their workplace activities
1. Political strength can result in labor standards that are legislated for all workers, not just those covered by collective bargaining
F. Outside the U.S., employment conditions are established by government regulations
1. Especially pertaining to benefits and dismissals
G. The political aspect of comparative labor relations should not be overlooked
1. An important question for the future is whether labor standards should be negotiated, legislated, or neither
H. Unjust dismissal protections

XXII. Globalization Reconsidered
A. Globalization raises a key question
1. In an integrated world economy, is it possible to have unique national labor relations systems?
B. The convergence thesis
1. Practices and policies across countries will converge into a common set of practices and policies
2. National differences will disappear
3. Free trade should harmonize labor standards and practices through competitive pressures
4. Evidence does not support this thesis
5. Rather, “converging divergences” arise from decentralization and flexibility
6. National differences are still important

DISCUSSION QUESTION:

Discuss the extent to which aspects of labor relations in other countries should be adopted in the United States. For example, should the United States adopt mandatory

works councils?
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Discussion – What Should Labor Relations Do? ( 0 messages – 0 unread ) Chapter 13 –
Chapter Overview

The goal of a labor relations system is to balance efficiency, equity, and voice. The previous chapters analyze the development and operation of the U.S. labor

relations system, and varied international examples. This chapter looks to the future by exploring the alternatives for unions, employers, and labor policy for

balancing efficiency, equity, and voice in the 21st century.

It is clear that unions need to adapt to constantly changing aspects of the workplace and the workers’ definitions of workplace justice. What is not clear is what

strategy is best. This chapter presents a detailed analysis of very diverse alternatives to the current U.S. union strategies, and how each measures up to the task of

balancing efficiency, equity, and voice.

If the New Deal industrial relations system is no longer effectively promoting efficiency, equity, and voice because of the pressures for flexibility, employee

involvement, and globalization, then what reforms are needed? The practice and study of labor relations revolves around three sets of institutions (broadly defined)—

unions, corporations (and public sector employers), and public policies. Analyzing potential directions for reform must therefore address all three institutions.

It is equally important to deliberate the need for corporations to change. Directions for corporate governance and norms currently point to the social responsibilities

of corporations. Several models of corporate governance are discussed with a particular emphasis on the need to respect workers’ interests and rights.

U.S. labor law is a critical determinant of workplace governance; therefore the question arises whether U.S. labor law should be strengthened, deregulated, loosened or

simply transformed. Arguments for each possibility are explored.

Also to be considered is the strategic roles of managers and union leaders in U.S. labor relations. An effective organization has both flexibility and control, change

and stability, responsiveness to the demands of markets and needs of employees. Balancing these contrasts is a major challenge for contemporary managers. Similar

challenges are described for union leaders. Future directions for labor relations include important individual-level issues for managers and labor leaders. The

strategic management literature is discussed where the various roles of managers, and a unique parallel for labor leaders are developed – in short, both types of

leaders need to fulfill three roles as a builder, a change partner, and a navigator.

The chapter concludes with a final discussion of the major intellectual themes of the book – the themes of efficiency, equity, and voice, and the importance of a broad

understanding of labor relations from diverse perspectives. The focus is on what type of system for governing the workplace—and in particular, what form(s) of employee

representation—will best achieve the goals of the employment relationship in the economic, social, technological, and global environment of the 21st century. This

likely requires changing not only laws but also behavior.

Discussion Outline

I. Advance Organizer
A. The previous chapters analyzed
1. The development and operation of the U.S. labor relations system
2. The major pressures on this system
3. Varied international examples
B. This chapter looks to the future
1. Exploring alternatives for unions, employers, and labor policy
2. Balancing efficiency, equity, and voice in the 21st century

II. Learning Objectives
A. For the 21st century…
1. Outline alternative directions for union strategies
2. Describe alternative directions for corporate behaviors
3. Identify alternative directions for labor relations public policies
4. Understand strategic management and leadership issues pertaining to labor relations for managers and union leaders
B. The U.S. labor system is under fire
1. Proponents of free markets and HR management say unions negatively interfere with markets and managers
2. Advocates of employment relationship flexibility see union policies as restrictive barriers to competitiveness
3. Proponents of greater labor-management cooperation and employee involvement see labor law as adversarial and overly restrictive
C. The U.S. labor relations system is also criticized by proponents of labor unions and workers’ rights
1. Unrelenting management drives for flexibility and team-based work systems are viewed as speed-ups
• Workers must work harder for less security
2. Unions think U.S. labor law is exceptionally weak and fails to prevent antiunion employer actions
3. Labor activists criticize U.S. unions for failing to develop a labor movement based on grassroots participation
D. All these criticisms reflect frustration with the current state of efficiency, equity, and voice in the U.S. employment relationship
1. If the U.S. system no longer serves its purposes, there are plenty of alternatives
E. Questions for the 21st century
1. What should unions do?
2. What should companies do?
3. What should labor policy do?
4. What should labor relations do?

III. What Should Unions Do?
A. Labor unions represent the workers
1. They champion the interests and aspirations of workers, not vice versa
2. Unions do not determine these aspirations
3. They shape their strategies and structures to respond to them
B. The employment relationship changes in response to the pressures of
1. Globalization
2. Flexibility
3. Decentralization
C. The nature of work changes in response to changing workforce demographics
1. Ethnicity, gender, and education
2. Increased workplace involvement
3. Shifts in industries and occupations
D. Potential Directions for U.S. Labor Unionism
E. Possibilities for 21st century Labor Unions

IV. Solidarity Unionism
A. Proposals that focus on increasing the bargaining power of U.S. unions
1. They rely on increasing labor power through enhanced solidarity within and across workplaces
B. Solidarity unionism is the closest to the existing model of business unionism
1. Illustrated by solidarity unionism’s focus on strengthening collective bargaining
C. Unions are seen as a needed force of worker power and protection
1. Problem is, American workers have lost power
2. The solution is to mobilize workers
3. Immigrant workers are ripe for unionization
D. Regaining labor power involves more aggressive organizing & bargaining tactics
1. Organizing outside of the NLRB process
2. Putting social and financial pressure on companies through adverse publicity
E. Within a union, solidarity must be increased among rank-and-file members
1. This requires widespread participation
F. Nonmajority unions have the support of a minority of workers
1. They must demonstrate the benefits of unionism to gain majority support
G. Proposals for increasing labor’s power involve changing the structure of unions
H. Necessary changes…
1. Reducing bureaucracy
2. Avoiding traditional jurisdictional conflicts
3. Being willing to lend financial and institutional support to grassroots organizations while promoting their autonomy
4. Moving beyond industrial unionism to occupational unionism

V. Social Movement Unionism
A. Rejects the narrow business unionism focus on workplace-based collective bargaining
1. Sees labor unions has representatives of the entire working class
2. Also part of a broader social movement of community, social, and political activist groups
B. Social movement unionism wins gains through social and political channels
1. Not through narrow workplace bargaining
C. Advocates of a strong U.S. labor movement
1. See greater social activism as a route to more power in society and at the bargaining table
2. Increasing grassroots participation and mobilization can serve both social movement unionism and solidarity unionism
D. A vibrant, socially focused labor movement
1. Embraces diversity, including women, minorities, and immigrant workers
E. Citizen unionism
1. Has a geographical focus and seeks to organize all employees in a specific geographical area
F. Makes sure all companies in a local area are good employers and social citizens
1. Bargaining
2. Public pressure through negative publicity and boycotts
3. Political power
G. Citizen unions provide portable benefits and other services
1. Training
2. Child care
3. Legal assistance
H. A citizen union in a locality can be a strong advocate for community issues
1. Labor issues become issues of general, community-wide concern
I. Increased labor activism is reasserting influence in national U.S. politics
1. Involving rank-and-file workers in campaigning for pro-labor candidates
2. Calling for the creation of an independent labor party

VI. Efficiency Enhancing Unionism
A. Solidarity and social movement unionism includes initiatives that are militant or activist
1. They embody a strong need to represent workers’ interest in opposition to employers’ interests
B. Newer forms of unionism aren’t as adversarial or oppositional
1. Some see these as more productive; others see them as weak
2. An extreme approach is efficiency enhancing unionism
C. Labor unions as strategic business partners
1. These unions work to advance productivity, quality, and competitiveness
D. The typical, detailed union contract should be replace with an enterprise compact
1. Fundamentally a cooperative document
2. Provides for a mutual vision and joint system for achieving common goals
3. Fosters the well-being of all stakeholders in a given endeavor
E. An enterprise compact
1. Specifies the principles of a labor-management relationship
2. Based on union and employee involvement in business decision making
3. In return, the union promises greater commitment to competitiveness
4. Employees gain increased sharing of both the risks and rewards of the company

VII. Employee Ownership Unionism
A. Seeks to represent workers by facilitating employee ownership of companies
1. If employees own stock in a company, they may work harder to promote profitability
2. If ownership comes with voting rights in corporate governance, employees can participate in decision making at the highest levels of the company
3. Therefore, companies must weigh employees’ interests more heavily when making strategic decisions
B. Union involvement in employee ownership efforts include…
1. Employee stock ownership plans (ESOPs)
2. Investment policies of union pension funds
C. Using labor’s capital to promote efficiency, equity, and voice
1. This is an important labor relations development to watch in the 21st century
D. Unions negotiate processes, not outcomes
1. This provides for greater individual autonomy, discretion, and empowerment
E. Negotiated processes can include minimum standards and procedural safeguards
1. Unions provide expertise and support to individual employees, as needed
F. Sports industry example
1. Unions negotiate minimum salaries and negotiation processes
2. Players negotiate their own salaries, which can be, and often are, above the contract minimum
G. Employee empowerment unionism can overlap with efficiency enhancing unionism
1. Especially in workplaces run by self-directed teams

VIII. Associated Unionism
A. Premised on a balance of power between unions and corporations
1. In a mass-manufacturing economy, this was achieved through
2. Rules-based contracts
3. Uniformity of contracts across an industry
4. Some argue that this no longer matches the need for nimble, flexible, and competitive organizations
5. The sharp contrast between labor and management no longer matches today’s semiprofessional, professional, and knowledge workers
B. Associational unionism
1. Blends the multiple-interest philosophy and services of professional organizations with the power of unions
C. The goal is to create a new organizational form that is..
1. More powerful than an association
2. More decentralized & flexible than typical unions
D. If associational unions existed, they could…
1. Strike
2. Use political pressure and publicity
3. Negotiate contracts with employers
E. This proposed system is not based on exclusive representation
1. Workers can belong to various association that reflect their interests and ideals
2. The union would coordinate networking with others who have similar interests

IX. What Should Companies Do?
A. Looking forward, it is equally important to consider possible directions for employers
1. Some argue that there is less need to change corporate labor relations strategies and structure
2. Alternatives, however, do exist
B. These alternatives often boil down to “What is the social responsibility of corporations?”
1. The baseline answer is “to make a profit”
C. Directions for Corporate Governance and Norms
D. The “making a profit” view embraces utilitarian and libertarianism ethical views
1. It is also rooted in the shareholder model
E. Shareholders
1. Viewed as the key group in the corporation because they are risking their money
2. Generally recognized as the “owners” of the corporation
F. Managers have a legal obligation to act in the best interests of the shareholders
G. The shareholder model
1. Establishes a corporate preoccupation with short-term financial results
2. Treats employees as labor costs
3. Usually denies employees or unions participation in corporate governance and decisions
H. A short-term, financial focus
1. Short-term wealth maximization and efficiency
I. Should corporate social responsibility be primary?
1. The ethics of duty (Kant) and virtue (Aristotle) reject a sole focus on outcomes without regard for actions
2. Profits must be balanced with respect for the humanity of people and the corporation’s role in society
J. From a legal perspective
1. From a legal perspective
2. Corporations are legally sanctioned by the government
3. Thus, shareholder rights are not unlimited
4. Because of perceived public interest, the law grants shareholder limited liability
5. In return, corporations must serve the public interest
K. Corporations are viewed as social rather than purely private institutions
L. Stakeholder theory
1. An alternative to the shareholder model
2. Asserts that all stakeholders deserve the right to be considered in corporate decision making
M. Supporters of the stakeholder approach
1. Advocate mandated representation of employees and other stakeholders on corporate boards
2. Argue for new norms of management behavior that respect workers’ rights and interests
• Workers’ rights are drawing attention at the national level & at the United Nations
N. Potential benefits of a stakeholder approach
1. Widespread employee involvement
2. Employers neutral toward union organization
3. Win-win or problem solving labor-management negotiations
4. Flexible and informal grievance resolution
5. Companies wouldn’t move production just to save money
6. More information available to workers and public
7. Unions with less militant strategies and structures

X. The Future of Labor Relations Policy
A. Any future-focused discussion must consider alternative directions for labor law
1. Who gets the make the rules?
2. Whoever makes the rules governs the workplace
B. An absence of laws means that the market and managers govern
1. Strong laws promoting labor-management negotiations establish a joint-mechanism for rule-making
C. Directions for U.S. labor law

XI. Strengthening the NLRA
A. Possible remedial reforms
1. Create strict timetables for unfair labor practice processing to prevent delayed justice
2. Penalize violators with fines
3. Provide immediate reinstatement of illegally fired workers
4. Allow bargaining orders when an employer’s illegal actions prevent a union from obtaining majority support
B. Substantive reforms
1. Expand coverage to independent contractors and supervisors
2. Provide legal access to employees by unions and managers during organizing drives
• Union organizers should be able to give a captive audience speech if management does
3. Limit management and union campaigning to prohibit lies and restrict statements that imply negative consequences will result from supporting a union
4. Require instant elections to remove opportunities for negative campaigning and selective discharges
• Card-check election is a similar reform
5. Require arbitration of first contracts if bargaining fails to produce a contract for a newly organized unit
6. Broaden the scope of mandatory bargaining items
• Plant closures, subcontracting, introduction of new technology, and other issues that affect working conditions and job security
C. Ban permanent strike replacements so that companies can use temporary workers during a strike, but strikers will not lose their jobs
• Temporary replacements could also be prohibited from participating in decertification elections
D. Relax the secondary activity ban so that unions could pursue secondary boycotts during a strike

XII. Deregulating the NLRA
A. Some believe that the NLRA should be completely repealed or discarded
1. Rooted in neoclassical economics thinking
2. Closely related to the philosophy of libertarianism
B. According to some, the NLRA
1. Reduces aggregate welfare by protecting monopoly unions
2. Forces unwilling employees to bargain
3. Makes unwilling employees pay union dues
C. Advocates for deregulation believe that unions
1. Should not be protected by special legislation
2. Should be subject to the same antitrust regulations that keep other organizations from engaging in anticompetitive practices
D. There is no push for legal restrictions on unions beyond antitrust regulations
1. This is consistent with the libertarian emphasis on individual freedom and liberty

XIII. Loosening the NLRA
A. Labor law is partially obsolete and/or does not support competition and flexibility
1. Focus is on the NLRA’s section 8(a)(2) restriction on company-dominated labor organization
• Undoing Electromation-type rulings that ruled workplace committees illegal
2. Many scholars pair this reform with strengthening the ability of workers to organize a union to promote a loosening, rather than a weakening, of the NLRA

XIV. Transforming the NLRA
A. Labor law is at odds with the global, competitive environment of the 21st century
1. The stable, mass manufacturing era is dead, but checks and balances are still needed
B. The need for reform is adversarialism
1. A culture of conflict
2. Equates to disruptive negotiations that revolve around a power struggle
3. Harmful to employers, employees, and unions
C. A new legal system is needed to support new forms of unionism
1. Non-majority unions—bargaining or consultation rights for unions with minority employee support
2. Replacing the certification process with mandated works councils
3. Additional employee rights, such as free speech, unjust dismissal protections, and the right to workplace information

XV. Strategic Labor Relations and Leadership
A. Questions of future directions for U.S. labor relations involve individual-level issues
1. Managers and union leaders have three human relations roles… builder, change partner, navigator
B. Strategic Role of Managers

XVI. Striking a Balance
A. Union leaders and managers must understand that dualities must be navigated
1. Recognizing multiple perspectives or schools of thought on the employment relationship can help leaders and managers better understand others
2. Managers, union leaders, employees, government officials
3. You do not need to agree with all the viewpoints; just understanding them will make you a better leader
B. The ethical framework
1. Has important ramifications for effective leadership
C. The framework for studying labor relations
1. How employee representation, typically through labor unions, contributes toward the achievement of efficiency, equity, and voice
D. Handle conflict and power imbalances in the employment relationship in ways that promote
1. Effective organizations
2. A healthy economy
3. Equitable outcomes
4. Respect for human dignity
5. Fulfillment of the principles of democracy
• There are varying beliefs on the best way to fulfill these goals
E. Consider the need to reform labor unions, corporate behavior, and labor law
1. If labor law is a major determinate of outcomes, then the law likely needs to be changed
2. If the law provides only a broad skeleton of a system, and various outcomes are possible, then perhaps behavior needs reforming
F. Like many aspects of labor relations, the truth likely lies in the middle
1. Careful examination of multiple perspectives is required

DISCUSSION QUESTION:

One last question to ponder: debate whether or not the U.S. labor relations system is necessarily adversarial. Clearly there are numerous examples of adversarial

behavior by both unions and companies, but is this their choice, or is there something in the system that forces this behavior?

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