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67 Cards in this Set
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Chapter 7
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Wage & Salary Issues
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1) Effects of dissatisfaction on worker behavior
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employees expect and even demand to be treated fairly and honestly by the organization. If employees perceive that they are unfairly treated by the organization particularly in pay matters they typically react by leaving the workplace temporarily or permanently thru seeking employment in another organization, by reducing quantity or quality of their production, or by filing a grievance.
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2) Union wage objectives
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research was done by Bruce Kaufman, George State University, formed eight dimensions of the effects union wage negotiations have caused in the past 56 years.
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a. Union goals in wage bargaining
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Lynn Williams summarized the union wage goals as achieving the maximum level of wages and benefits for its member and maintain all the jobs it could within as viable an industry as possible.
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b. The union
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nonunion wage differential
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In the US the size of the union vs nonunion wage differential an average of 19 percent. Union workers receive more pay.
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c. Union Wage differentials over time
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The end of the World War II the union
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nonunion wage differential increased in the US, since early 1980 it has an uncertain decline.
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d. Union wage rigidity and wage concessions
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Unions have historically tires to hold principle of no givebacks in wages they reached the point to let companies go out of business rather than cutting wages.
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e. Wage Structure
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Unions have also affected the structure of wage scales among workers with one employer or industry negotiating for differences in working conditions, skills. Seniority, age, and job classification
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f. The form of compensation
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Unions in most cases have bargained for wages based on time or hours worked. They have opposed pay systems based on output such as a merit or piece rate systems or merit evaluations by supervisors.
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g. Employment effects
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Unions have in general negotiated for practices and work rules that create or maintain more jobs
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h. Pattern Bargaining
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Unions have generally strived to pattern bargain or obtain similar wage gains from separate employers within the same industry or sometimes within similar industries or a community.
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3) Standard hour plan
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Is a similar concept to piece rate plans except a standard time is set to complete a particular job instead of paying the employee a price per piece. For example, assume that in an automobile repair shop the standard time for replacing a muffler is one hour. Under a standard hour plan an employee would receive one hour's wage for replacing a muffler, regardless of the actual time required. Such a plan requires accurate measurement of time necessary for each job or task.
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4) COLA adjustment and what should be specified
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(Cost Of Living Adjustment) the negotiated compensation increase given to an employee based on the percentage by which the cost of living has risen usually measured by a change in the consumer price index (CPI).
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5) Back-loaded contract
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A multiyear contract that provides a lower wage adjustment in the first year with higher increases in later years. For example, a 10% percent three year wage adjustment could be 2:4:4. In black loaded contracts, workers receive no wage increase in the first year.
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6) Concession bargaining
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In the 1980 recession ushered in a new era in negotiated wages called concession bargaining. High levels of unemployment prompted unions in severely affected industries to see ways to protect the job. It is a reduction in previously negotiated wages, benefits, or work rules usually in exchange for management guaranteed employment levels during the term of a contract.
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7) Job evaluation
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a systematic method of determining the worth of a job to an organization. This is usually accomplished by analysis of the internal job factors and comparison to the external job market. The process is generally part of a job analysis the personnel function systematically reviewing the tasks duties to write job descriptions. Job evaluation procedures do not include analyzing employee performance; that is referred to as performance evaluation or performance appraisal.
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8) Pyramiding
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The payment of overtime on overtime that occurs if the same hours of work qualify for both daily and weekly overtime payment. Most contracts prohibit this type of payment. For example, holiday pay plus double time on the seventh day worked.
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9) Roll-up
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As hourly wages increases, many benefits also directly increase because they are directly tied to the wage rate of employees. The direct increase in the cost of benefits that results from negotiated increase in wage rates, such as Social Security, overtime pay and pensions, For example some of the benefits are Social security and unemployment insurance, Life insurance, Overtime pay shift premium, and pension benefits.
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10) Scanlon plan
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A group incentive plan designed by Joseph Scanlon in which greater production is achieved through increased efficiency, with the accrued savings being distributed among the workers and the employers. The plan contains two primary features
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departmental committees of union and management representatives meet together at least monthly to consider any cost savings and any documented cost savings resulting from implemented committee suggestions are divided 75 percent to employees and 25 percent to the company.
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11) Two-tier wage system
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A wage system that pays newly hired workers less than current employees per forming the same or similar jobs. The pros of this system are that it lowers labor costs, & maintains higher employment levels. The cons low quality, and low productivity from low-tier employees
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Chapter 8
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Employee Benefits
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12) FICA (Federal Insurance Contributions Act)/Social Security Act
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is a United States federal employment tax imposed on both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, the disabled, and children of deceased workers. The tax also provides funds to the health care system for institutions that provide healthcare for workers that do not have health insurance and cannot afford healthcare treatment.
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13) An example of an Income Maintenance Plan
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Income maintenance provisions have become commonplace in collective bargaining agreements. These plans include supplemental unemployment benefits, severance pay and wage employment guarantees. For example, pension plans provide for income during retirement along with Social Security.
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14) Employee Services Benefits
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Some traditional employee services include sponsoring social and recreational activities such as picnic and athletic events. Subsidized food services are also a popular employee service benefit. Providing dining facilities, low-cost meals, or vending machines is believed to minimize time away from the job spent on breaks.
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15) Call-in pay
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A supplemental payment given to employees called back to work before they are normally scheduled to return. Most labor agreements provide lump-sum amount or an amount equal to a minimum of number of hours of pay for employees called in during other than scheduled work hours.
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16) Defined benefit plan
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An employer sponsored retirement plan in which employees benefits are paid based on a formula using factors such as salary and duration of employment. Usually there are restrictions on when and how the plans can be accessed without penalties. The amount of the retirement is fixed.
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17) Employee assistance programs
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(EAPs) are employer sponsored benefit programs designed to improve productivity by helping employees to identify and resolve personal concerns. For example, an EAP might help employees to resolve problems such as drug or alcohol abuse, anxiety, marital or family relationship concerns, depression, or financial difficulties. Employees may seek help on a voluntary, confidential basis, or may be referred by a supervisor who suspects that declining job performance is being caused by personal problems.
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18) Flexible benefit plans
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Employees are allowed to choose the benefit they believe will best meet their needs. It usually includes medical insurance, vacation, pensions, and life insurance. For example, employees may be given a monthly benefit dollar figure and told that they can assign the dollars to the benefits they select from a list.
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19) Reporting pay
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The minimum payment guaranteed for employees who report for work, even if work is not available, provided they have not been given adequate notice not to report to work.
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20) Shift differentials
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Additional hourly rates of pay provided to employees who work the least desirable hours. For example, a typical shift differential schedule would consist of hours worked between 5:00 p.m. and 8:00 a.m., Monday through Sunday. If six or more of a staff member's scheduled hours in a work day occur between the shift differential eligible hours of 5:00 p.m. and 8:00 a.m., the staff member qualifies for the differential.
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21) Vesting
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the process by which an employee increases nonforfeitable rights over employer contributions that are made to the employee’s qualified retirement plan account. The nonforfeitable rights grow based on the number of years of service performed by the employee. For example, an employee might receive 100 restricted stock units as part of an annual bonus. To entice this valued employee to remain with the company for the next five years, the stock vests according to the following schedule
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25 units in the second year after the bonus, 25 units in year three, 25 units in year four and 25 units in year five. If the employee leaves the company after year three, only 50 units would be vested while the other 50 are forfeited.
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Chapter 9
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Job Security & Seniority
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22) Drug testing of current employees
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Management may generally require any applicant to submit to drug screening test unless limited by state law. Employers may turn away applicants who do not pass drug screening because the use of drugs may adversely affect job performance. Today many unions have instituted drug testing for their officers and personnel.
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23) Bumping
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a procedure commonly used during layoffs, in which employees with greater seniority whose jobs are eliminated displace employees with lesser seniority. Bumping is more often used in companies with plant wide seniority in unskilled jobs.
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24) Employee teams that consider "employment" issues
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employee involvement that creates an environment in which people have an impact on decisions and actions that affect their workplace, not the terms and conditions of their employment. Being able to make workplace decisions creates empowered, intact employee teams for whom managers provide consultation and assistance in how the work is to be done.
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25) Seniority system
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a set of rules and procedures within an agreement that determine the allocation of certain job situations including promotion, layoff, and recall. As well as certain economic benefits based on length of service. Seniority systems provide job security.
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26) Super seniority
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the special seniority rights granted to union officers and committee personnel that override ordinary seniority during layoffs, and recall situations in order to maintain active union representation within the company.
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27) WARN (Worker Adjustment and Retraining Notification) Act
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commonly known as the Plant Closing Act, WARN requires employers to provide 60 days of advanced written notice to employees and communities of either a plant closing or mass layoffs.
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Chapter 10
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Unfair Labor Practices and Contract Enforcement
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28) illegal strikes, with examples and explanations’
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a. Strikes undertaken by unlawful means and employees can be fired. |
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i. Sit-down strike
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a takeover of employers’ property. This action is seen as violation of the owner’s property rights.
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ii. Wildcat strike
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an economic strike conducted by a minority of workers without the approval of the union.
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iii. Partial strike
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Various types of job actions such as work slowdown or refusal to work overtime. This action is seen as violation of the owner’s property rights.
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iv. Sickout
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an illegal partial strike which employees call in sick to protest working conditions.
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29) Unfair labor practices (and examples)
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certain actions taken by employers or unions that violate the NLRA. Such acts may be investigated by the NLRB. For example, an employer interfering with employees’ right to organize.
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30) "Protected concerted activities"
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The law we enforce gives employees the right to act together to try to improve their pay and working conditions, with or without a union. If employees are fired, suspended, or otherwise penalized for taking part in protected group activity, the NLRB will fight to restore what was unlawfully taken away.
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Prohibited economic activity during a contract term(31:32)
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31) Shop-ins
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was a form of protest during the civil rights movement. Many union members would come together at one store at the same time; buy small items and paying in large bills which created crowded parking lots, and delays In service.
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32) Hot cargo agreement
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agreements between an employer and a union where the employer agrees to not handle or work on any freight or product coming from another person with whom the union has a dispute.
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33) How an unfair labor complaint is investigated
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an unfair labor practice charge comes to NLRB through procedures similar to election petitions. The party claiming injury files an appropriate form with a regional office of the NLRB. An initial investigation is held, and if merit is found to the charge and the regional director cannot convince the parties to settle, a hearing is held before an administrative law judge. The decision of the admin law judge may be appealed to the NLRB which decides the case thru a subpanel of three members randomly selected by its executive secretary.
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34) Section 10j
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court injunctions; authorizes the NLRB to seek temporary injunctions against employers and unions in federal district courts to stop unfair labor practices while the case is being litigated before administrative law judges and the Board. These temporary injunctions are needed to protect the process of collective bargaining and employee rights under the Act.
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35) Antiunion animus
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(discrimination against union members) when an employer’s conduct is not motivated, by legitimate and substantial business reasons but by a desire to penalize or reward employees for union activity or the lack of it.
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36) Duty to bargain in good faith, and how it is interpreted by the NLRB and courts
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reasonable efforts made by both parties during contract negotiations. The “good faith criteria established by the board goes farther and includes the following
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active participation in deliberations with intention to find a basis for agreement; a sincere effort to reach common ground; binding agreements on mutually acceptable terms
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Duty to bargain in good faith (36:38)
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37) Totality of conduct doctrine
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a test or review of the total bargaining process used to determine if a negotiating party has acted in good faith as opposed to isolated acts that may have occurred during negotiations.
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38) Boulwarism
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“take it or leave it” bargaining technique. A collective bargaining approach in which management presents its entire proposal as its final offer. The NLRB declared an attitude of boulwarism is a violation of “the duty to bargain in good faith”
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39) Surface bargaining
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the act by either party of simply going thru the motions of negotiating without any real intention of arriving at an agreement. Surface bargaining is violation of “the duty to bargain” in good faith.
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40) Opener clause
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Contracts can have opener clauses that allow for negotiations to proceed during the term of the contract on one or more items, usually wages or insurance coverages. For example, Harley Davidson workers agreed on a seven year contract to preserve their jobs and management gained a long:term peaceful workforce.
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41) Weingarten rule
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a Supreme Court ruling that a union employee has the right to request the presence of a union official during a meeting with management if the meeting may involve a discipline issue. The role of the union official is to protect the employees without interfering with the rights of the employer.
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42) Zipper clause
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a provision of a collective bargaining agreement that restricts either party from requiring the other party to bargain on any issue that was not previously negotiated in the agreement for the term of the contract.
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43) 24:hour rule
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(typical unfair labor practices in an organizing campaign)… prohibits employers and unions from making organization campaign speeches on company time to large assemblies of employees within 24 hours of scheduled election.
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44) Last chance agreement
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an agreement between the union and employer that allows an employee who was fired for misconduct his/her job back with the condition that if the employee violates the LCA (last chance agreement) he/she will be discharged without right of an appeal. LCA may include an expiration date.
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45) Progressive discipline
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A discipline system for addressing minor employee misconduct that usually includes several levels of penalties such as warnings, reprimands, suspensions and, finally, termination. The objective is to inform an employee of inappropriate behavior and enable the employee to correct such behavior without serious or permanent consequences.
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Chapter 12
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The Arbitration Process
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46) Past practice
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a recognition of the bargaining history of two parties involved in a dispute to determine their respective rights in arbitration. Such practice does not have to be written down in the labor agreement, but can arise on the basis of regular, repeated action, or inaction.
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47) Common law of the shop
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Recognition of the bargaining history of those in the same industry to determine rights of parties involved in labor dispute.
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48) Parol evidence
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refers to extraneous evidence such as an oral agreement (a parol contract), or even a written agreement, that is not included in the relevant written document. The parol evidence rule is a principle that preserves the integrity of written documents or agreements by prohibiting the parties from attempting to alter the meaning of the written document through the use of prior and contemporaneous oral or written declarations that are not referenced in the document.
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