This Instructor's Manual, to accompany



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PREFACE

This Instructor's Manual, to accompany An Introduction to Collective Bargaining and Industrial Relations, fourth edition, contains the following materials:


- An outline of each chapter and answers to the end-of-chapter discussion questions.
- A test bank of true-false and multiple-choice questions for each chapter and sets of short answer and essay exam questions.
- Lecture outlines and lecture tips for the instructor from the authors' actual teaching with this material.
- Instructions and tips for the mock bargaining exercises with student guides actually used by the authors with these exercises.
- The decisions and teaching notes for the grievance arbitration cases.
- A listing of recommended supplementary movies and videos with information on where these can be ordered.
- Transparency masters

Acknowledgments

Harry C. Katz

Thomas A. Kochan

Alexander J.S. Colvin

Table of Contents

Page

Chapter Outlines and Discussion Questions/Answers

Chapter 1: A Framework for Analyzing Industrial Relations and

Collective Bargaining 1


Chapter 2: The Historical Evolution of the U.S. Industrial Relations System 4
Chapter 3: The Legal Regulation of Unions and Collective Bargaining 10
Chapter 4: The Role of the Environment 15
Chapter 5: Management Strategies and Structures for Collective Bargaining 20
Chapter 6: Union Strategies and Structures for Representing Workers 24
Chapter 7: Union Organizing and Bargaining Structures 30
Chapter 8: The Negotiations Process and Strikes 35
Chapter 9: Impasse Resolution Procedures 41
Chapter 10: Contract Terms and Job Outcomes 45
Chapter 11: Administering the Employment Relationship 51
Chapter 12: Participatory Processes 57
Chapter 13: Collective Bargaining in the Public Sector 60
Chapter 14: International and Comparative Industrial Relations 65
Chapter 15: The Future of U.S. Labor Policy and Industrial Relations 70

Lecture 1: The New Deal System and Its Historical Evolution 75


Lecture 2: The Economic Determinants of Bargaining Power 78
Lecture 3: Movie: "Final Offer" 82
Lecture 4: Management Strategies and Structure 83
Lecture 5: Union Organizing 86
Lecture 6: Union Growth and Decline 89
Lecture 7: Bargaining Structure 92
Lecture 8: The Negotiations Process 95
Lecture 9: Private Sector Mock Bargaining Exercise 98
Lecture 10: The Causes of Strikes 99
Lecture 11: Impasse Resolution Procedures 102
Lecture 12: The Grievance Procedure 104
Lecture 13: Exercises Concerning Grievance Arbitration... ...107

Lecture 14: Union Impacts on Employment Conditions 108


Lecture 15: Concession Bargaining 112
Lecture 16: Participation Processes 115
Lecture 17: Public Sector Unionization and Collective Bargaining 118
Lecture 18: Queen City Mock Bargaining Exercise 122
Lecture 19: Comparative Industrial Relations 123
Lecture 20: Multinational Unionism and the European Union 128
Lecture 21: The Future of U.S. Industrial Relations and Labor Policy 131

Private Sector Mock Bargaining Negotiations (D. G. Barnhouse)

Company Supplemental Materials 134

Union Supplemental Materials 145

Instructions to Instructors Concerning CBG Disk 153

CBG Costing Disk Documentation 156

Memorandum to Mock Bargaining Students -- D. G. Barnhouse,

CBG Contract Costing 166

Instructions to Instructors Concerning D. G. Barnhouse

Mock Bargaining When Students Manually Perform Contract Costing 170

Memorandum to Mock Bargaining Students -- D. G. Barnhouse,

Manual Contract Costing 174

The Debriefing of the D. G. Barnhouse Mock Bargaining Exercise --

After Negotiations 176

Public Sector Mock Bargaining Exercise (Queen City)

Instruction to Instructors Concerning Queen City Mock

Bargaining Exercise Preparation 177

Memorandum to Students Providing Instructions for the Queen City Mock Bargaining Exercise 179

The Debriefing of the Queen City Mock Bargaining Exercise --

After Negotiations 183

Grievance Arbitration Case Notes and Discussion Question Answers

Case 1 185

Case 2 188

Case 3 192

Case 4 195




CHAPTER 1
OUTLINE
I. The participants
A. Management -‑ owners, top executives, and industrial relations and human resource professionals.
B. Labor -‑ employees and unions.
C. Government -‑ local, state, and federal political processes. Also includes government agencies and the public.
II. Assumptions about labor and conflict
A. More than just a commodity -‑ employees as members of communities and families. Also, costs of relocation prevent labor from being exchanged as freely in the labor market as other goods.
B. Multiple interest perspective -‑ employee interests v. firm interests.
C. The inherent nature of conflict -‑ conflict is not pathological, but out of economic interests.
D. There exists common as well as conflicting interests between employers and employees.
III. The three levels of industrial activity
A. Strategic level.
B. Functional level.
C. Workplace level.
IV. The institutional perspective
A. John R. Commons and the economic institutionalists placed great value on negotiations.
B. Rejection of Karl Marx and class consciousness.
C. Work is central to workers' lives and communities.
D. Unequal power between labor and employers in the marketplace.
V. The performance of collective bargaining
A. Labor's goals ‑- wages, benefits, safety conditions, and job satisfaction. Also, quality of working life and employment security.
B. Management's goals -‑ labor costs, productivity, and employee job satisfaction.

C. Public's goals -‑ industrial peace, economic performance, and union democracy.


VI. The plan of the book
A. The environment -‑ economic context, law, demographic context, social attitudes, and technological context.
B. The strategic tier.
1. Management's business strategies as an example.

2. Labor's view of political activity v. collective bargaining focus.


C. The functional tier -‑ contract negotiations.
1. Union organizing and bargaining structure. The use of representative elections and formation of bargaining structures.

2. The negotiations process, impasse resolution, and bargaining outcomes.


D. The workplace tier.
1. Administration of the bargaining agreement and the use of grievance arbitration procedures.

2. Participatory processes which includes new forms of work organization and team systems.


E. Special topics.
1. Public sector collective bargaining.

2. International and comparative industrial relations -‑ a look at Japan and Germany.

3. Labor policy -‑ alternative policies.


Chapter 1 -- Discussion Questions and Answers
1) Name the actors, generally and specifically, who are involved in the collective bargaining process.
Management -- owners and shareholders; executives and managers; industrial and human resource people
Labor -- individual employees and the unions which represent them
Government -- local, state, and federal; agencies responsible for passing and administering policies which affect industrial relations; as representatives of the public interest
2) Exhibit 1-1 is essential in understanding how this book is arranged and proceeds in its analysis of collective bargaining. Describe this figure and how it pertains to the study of collective bargaining.
Exhibit 1-1 begins by discussing environmental factors and how they affect and are affected by the collective bargaining process. The figure then moves into the three-tiered system which is used in this book. These tiers refer to different places of action in the collective bargaining process as well as to the different actors in this process. The diagram shows some of the effects each of these tiers has upon the others as well as the environment. Exhibit 1-1 shows the dynamic nature of the collective bargaining process, which is one of the major premises of this text.
3) One of the fundamental aims of collective bargaining is the reduction of conflict between employees and employers. What are some basic assumptions about labor and conflict in this book?
Conflict is inherent between labor and management, but it is not pathological
Conflict comes from the differing interests, economic and social, between labor and management
The combination of familial, community, and work roles in employees make, it necessary to use a multiple interest perspective when studying labor
Society has a legitimate interest in labor conflicts
4) What are some of the ways in which we judge the effectiveness of collective bargaining, with respect to the different actors involved in the process?
Labor -- wages, benefits, safety conditions, wage and employment security, quality of work life, job satisfaction
Management -- labor cost, profits, productivity, product quality, employee turnover, employee motivation, employee performance, predictability and stability of the labor relations processes, managerial flexibility


Government -- industrial peace, union democracy, effects on inflation, employment, and work conditions



CHAPTER 2
OUTLINE

I. Introduction to the colonial and preindustrial eras


A. The master servant -‑ principles from British common law ‑- most workers were indentured servants who sought refuge from their home country.
B. The dominance of agriculture ‑- indentured servants were supplemented by slaves brought from Africa and East Indies to work in large plantations in the south and in some New England states.
C. The need for skilled labor -‑ wages were often higher for skilled workers in the United States than in England (30% to 100% higher).
D. Labor force diversity ‑- difficult for workers to form collective organization due to the variety of workers (e.g., indentured servants, slaves, immigrants, artisans, farmers, and these included workers from all races.)
II. Early unionism
A. Correlation between unionism in the colonies and the development of industry and the industrial revolution.
B. The first trade unions ‑- skilled craftsmen, (the Federal Society of Journeymen Cordwainers, otherwise known as the union of Philadelphia shoemakers, was the first).
C. Why workers formed unions ‑- competitive menaces such as market expansion, technological shift from hand tools to power machinery.
D. Early court reaction to unionism
1. Common laws unfavorable to unions. Individual employees not granted any contractual rights.

2. Development of the conspiracy doctrine ‑- court found the actions of the Philadelphia shoemakers to be illegal, as workers who were not part of the union were harmed.


E. Pre‑Civil War organizing efforts
1. Political initiatives ‑- increased political rights for males

led workers to form workingmen's political parties.

2. Labor's economic advances ‑- early child labor legislation in New England, the federal 10-hour workday executive order.

3. The utopian movements ‑- new form of collective organization which focused on preventing the dehumanizing effects of the factory system.

4. The Means‑Ends Doctrine: Commonwealth v. Hunt ‑- unions no

longer considered criminal conspirators. Courts had to examine how unions pursued their goals.


5. The yellow dog contract ‑- loyalty oath to employer not to join unions.


F. The labor wars
1. The Molly Maguires -- battle in the mining industry between Irish miners and their employers who hired the Pinkerton Detective Agency.

2. The Haymarket affair ‑- eight anarchists charged with a bombing after a strike at a plant in Chicago.

3. The homestead strike -‑ battle between the Amalgamated Association of Iron, Steel, and Tin Workers and the Carnegie Steel Company.

4. The Pullman strike ‑- the American Railway Union led a series of industrial actions against railroad companies because of wage cuts and increases in rent and other services at the company town.


III. The need for national unions
A. Employers' ability to shift production and goods forced unions to seek national labor organizations.
B. The Knights of Labor -‑ organized workers on a city‑by‑city basis across crafts. Membership in 1885 peaked at 700,000 members.
C. The Industrial Workers of the World ‑- organized workers into industrial unions that would seek direct and vigorous actions in order to improve work conditions.
D. Injunctions and antitrust rulings
1. The Sherman Anti‑Trust Act of 1890 -‑ declared combinations which restrained trade across state boundaries illegal. Included unions as combinations in restraint of trade.

2. The Clayton Act -‑ unions no longer under the definition declared in the Sherman Act.

3. The Norris‑LaGuardia Act -‑ barred the use of injunctions against unions in most labor disputes.
IV. The rise of the AFL
A. Introduction of business unionism ‑- the AFL as a federation which acts as the representative of national unions and active in political lobbying.
B. Craft focus -‑ guiding principle of the AFL that workers should be organized into separate craft unions.
V. Evolution of management in industrial relations
A. The origins of factory management -‑ market expansion led to the factory system and mass production technologies in order to seek economies of scale and low production costs.
B. Scientific management -- time-and-motion studies led by Frederick Taylor to create the one best way to work.


C. Welfare capitalism, human relations, and the American Plan ‑- the social significance of work and the growth of personnel departments.
D. Management's response to unionism in the 1920s -‑ growth of open shop movement and the introduction of progressive personnel policies.
E. The rise of industrial unionism ‑- shift from small shops to mass production increased left many unskilled and unorganized workers without power.
F. The CIO challenge to the AFL ‑- John L. Lewis leads his United Mine Workers out of the AFL convention.
G. The National Industrial Relations Act ‑- gave workers the right to organize, but Supreme Court ruled it to be unconstitutional.

VI. The New Deal Labor Policy


A. The National Labor Relations Act ‑- important because it explicitly encouraged collective bargaining.
B. The roots of the NLRA in American practice and experience ‑- codified policies recommended by the NWLB in WWI.
C. The middle level -- collective bargaining as the cornerstone.
D. The strategic level -- management acts and the union reacts.
E. The workplace level -- job control unionism through detailed job descriptions.
VII. The post‑World War II evolution of the New Deal system
A. The 1940s: institutionalization of basic principles.
1. War Labor Board helped obtain acceptance of collective bargaining.

2. Strike wave after the war and introduction of the Taft‑Hartley Act.

3. Walter Reuther requests to see the books and influence profits

as an exception.


B. The 1950s: a return to hard bargaining.
1. Further expansion of contract scope -- pensions, etc.

2. Boulwarism and final offer in negotiations.

3. The Landrum‑Griffin Act.
C. The 1960s: rank and file unrest.
1. Social and political turmoil spill into the workplace.

2. Growth of white-collar industries led to increased power for human resource professionals.

3. Union membership (percent organized) in the private sector continues to decline.

4. Growth in public sector unionism.




D. The 1970s: stability and atrophy.
1. Failure of parties to adopt to changing economic conditions.

2. The isolation of industrial relations professionals.

E. The 1980s: Experimentation and change.
1. A political shift ‑- PATCO and its effects

2. Concessionary bargaining.

3. Union advances such as new forms of employee participation.
F. The 1990s: Income and Collective Polarization
1. New technology and heightened international competitiveness led to corporate downsizing and re-engineering.

2. Deepened participatory style of interaction between management and unions.

3. Also, highly conflictual relations in non-union sector.


Chapter 2 -- Discussion Questions and Answers
1) Briefly explain why workers joined unions, according to Commons.
Commons argued that workers joined unions as a response to external competitive pressures. These pressures, which arose as a result of transportation and technological innovations, brought about a decline in wages and working conditions. It was against these pressures, not against the technology or social structures that brought them about, that early union pressure was directed. This view differs from the typical Marxist interpretation, in that it was the wages and deteriorating working conditions that brought about unionization, not a worker alienation or desire to regain some power over productivity.
2) Discuss the legal reaction toward unionization before the NLRA (1935).
Until 1842, unions were viewed as criminal conspiracies that impinged upon a worker's right to bargain freely with his or her employer
Commonwealth v. Hunt (1842)

Unions were no longer considered criminal conspiracies, per se


Judges had to determine whether a union's specific action infringed upon the rights of other employees or private property
Judges began imposing injunctions against unions and union activities, if these activities were found to be illegal
The use of injunctions became widespread by 1935
3) Contrast the drive system and scientific management.
The drive system placed substantial power in the hands of the line supervisor. Hiring, firing, and general supervision of labour were all controlled by the supervisor. This meant that an individual's continued employment was often subject to the arbitrary and often discriminatory personnel practices of the supervisor.
Scientific management, on the other hand, is based on tying workers' wages to their output. Therefore, management's function was to design the jobs, supervise, and compensate the workforce so as to eliminate conflicts of interest between workers and the employer. Management by this method also eliminated the somewhat arbitrary nature of previous forms of personnel management.



4) Identify the different national unions that emerged in the United States in the nineteenth century and contrast their basic goals.
One of the key national unions was the Knights of Labor that organized workers on a city-by-city basis across crafts and skill types. The Knights had a reformist agenda geared toward the promotion of cooperative institutions. The other key national unions were craft unions, many of who affiliated with the American Federation of Labor (AFL). The AFL espoused a business unionist philosophy oriented to using plant or firm level collective barging to provide wage and other practical gains to the workforce.
5.) What was the impact of the NLRA after it was held constitutional?
The NLRA helped spur union growth and collective bargaining by giving unions the right to form and engage in collective actions (strikes). American unions grew solidly in the aftermath of the Supreme Court’s decision upholding the constitutionality of the NLRA.
6.) Outline the key eras that appeared in American collective bargaining after World War II.
The years immediately following World War II were a period of great labor unrest. The wave of strikes was, in part, responsible for the passage of the Taft‑Hartley Act in 1947. This gave management considerable power by eliminating the union's ability to boycott employers and by defining a structured set of rules for the union's obligation to bargain. As a result, unions focused on improving wages and working conditions (the bread and butter issues) as well as on gradually expanding the scope of issues covered under a contract.
The 1950s saw collective bargaining become institutionalized in many industries, particularly mass production industries. During the 1950s management began to take a hard line in bargaining as firms sought to limit further expansion of the scope of bargaining and the influence of unions.
In the 1960s, the work force began changing as technologically oriented companies became a large portion of the business economy. The personnel and human resource management profession expanded and began developing novel human resources strategies and policies that restricted unions' ability to effectively organize the technological work force.
The 1970s was an era of little change. The main push in collective bargaining was to maintain the status quo. The prime goals of both unions and management in this period was labor peace and stability.
The 1980s saw a sharp decline in union power and the introduction of concessionary bargaining. During this era, unions gave up wages, or took wage freezes to maintain their jobs in many bargaining relationships. In exchange for these concessions, unions in some cases received enhanced participation in business decisions and employment security programs.

The 1990s were marked by an unprecedented stretch of strong economic growth that ended with the bursting of the dot.com bubble in spring 2000. Wide diversity appeared in union fortunes during this period with some unions continuing to feel extreme pressure from expanding non-union competition while some other unions benefited greatly from enhanced bargaining power due to low unemployment rates and strong economic demand. The labor movement initiated a range of “revitalization” activities some of which met with success while others were impeded by either employer resistance or internal problems.




CHAPTER 3
OUTLINE

I. The conspiracy doctrine


A. The cordwainers' case -‑ combinations of workers were illegal.
B. Commonwealth v. Hunt -‑ a distinction between legal and illegal means for achieving unions' ends.
C. The Sherman Antitrust Act -‑ unions treated as commodities thus labeled as monopolies to be limited.
D. The Clayton Act -‑ the ending of injunctions against labor.
II. Legislation granting rights to collective bargaining
A. The Railway Labor Act -‑ collective bargaining is recognized in 1926.
B. Test of constitutionality -‑ Texas and New Orleans Railroad Company v. Brotherhood of Railway and Steamship case.
C. Administration of the act -‑ National Mediation Board.
D. The Norris‑LaGuardia Act -‑ collective bargaining is provided to private sector employees.
E. The National Industrial Recovery Act
1. Promotes collective bargaining in Section 7(A).

2. Ruled unconstitutional in 1935.


III. The National Labor Relations Act
A. Key provisions
1. Section 1 -- attributes conflict to the lack of stable collective bargaining.

2. Section 2 -‑ definitions applied to employer, employees, supervisors, and professional employee.

3. Section 7 -‑ Employee right to self‑organization.

4. Section 8 -‑ Bargaining in good faith, mandatory and permissible subjects of bargaining, unfair labor practices by both unions and employers.

5. Section 9 ‑- Exclusive representation.

B. National emergency disputes -‑ the role of the Federal Mediation and Conciliation Service.


C. Administration of the NLRA -‑ the role of the NLRB.

IV. The Taft‑Hartley Act


A. Modification of Section 7 of NLRA.
B. Unfair labor practices by unions, decertification procedures, role of supervisors, outlawing of the union shop, and procedures for national emergency disputes.
V. The Landrum‑Griffin Act
A. Union members bill of rights -‑ regulation of union dues and fees, election rules, and the right of the union to be sued.
B. Regulation of union finances and administration -‑ unions must report such practices to the U.S. Department of Labor, union officers now held responsible, and regulation of internal union elections.
VI. The value of collective bargaining
A. Contribution to political democracy.
B. The need for the right to strike.
C. Additional justifications for collective bargaining -‑ better understanding by employers and employees than outsiders, etc.
D. Criticisms of unrestrained collective bargaining -‑ the costs to society, etc.
VII. Public Sector Labor Law
A. Public employees not covered by NLRA, left to state law.
B. Extension of collective bargaining to federal employees as a result of Executive Order 10988 in 1962.

VIII. Employment at will


A. Both the employee and employer are free to end the employment relationship at any time for good reason, bad reason or no reason at all.
B. When employees are not subject to the employment at will rule: where a collective bargaining agreement is in effect; where the employee has an individually negotiated written contract; many public sector employees.
C. Exceptions imposed by state courts – implied contracts, public policy, and covenant of good faith and fair dealing.
IX. Direct regulation of employment conditions -- civil rights as an example
A. Employment standards laws: workers compensation; social security; Fair Labor Standards Act (FLSA), inc. minimum wage and overtime; Occupational Safety and Health Act (OSHA); Employee Retirement Income Security Act (ERISA); Worker Adjustment and Retraining Notification (WARN) Act; Family and Medical Leave Act (FMLA).
B. Employment discrimination laws: Title VII of the Civil Rights Act of 1964; Age Discrimination in Employment Act (ADEA); Pregnancy Discrimination Act (PDA); Americans with Disabilities Act (ADA); and Civil Rights Act of 1991.
C. Initial filing of discrimination complaints with the Equal Employment Opportunity Commission (EEOC) which attempts conciliation; if unsuccessful, employee is given a ‘right to sue’ letter and can proceed with litigation through the courts; growing amounts of employment litigation and occasional large damage awards.
D. Seniority and equal employment opportunity policy goals -‑ the importance of past discriminatory acts.
E. Sources and purposes of affirmative action policies; legal standards for affirmative action plans.

X. Important administrative agencies


A. The National Labor Relations Board.


  1. U.S. Department of Labor.

C. Federal Mediation and Conciliation Service.


D. National Mediation Board.


  1. State and local agencies regulating the conduct of public sector

bargaining.
F. Equal Employment Opportunity Commission (EEOC).


Chapter 3 -- Discussion Questions and Answers
1) How was the NLRA different from any previous labor law in the United States?
The NLRA established the collective bargaining system as the preferred forum for dispute and contract resolution. It also established a constitutional framework for labor law that included organizing rights, unfair (employer) labor practices, and the National Labor Relations Board to resolve disputes. The NLRA, including all its amendments, has become a detailed and comprehensive code of conduct for collective bargaining.
2) Describe what the NLRA requires regarding bargaining in good faith. How would you tell if labor and management in a particular negotiation actually were bargaining in good faith?
Bargaining in good faith means that the employer and the representative of the employees "meet at reasonable times and confer in good faith with respect to wages, hours, and terms and conditions of employment." It is somewhat difficult to assess whether or not parties to a particular negotiation have been bargaining in good faith. In order to make such a determination, one would require information on the schedule of meetings, the duration of those meetings, and if possible, transcripts or personal notes of the proceedings inside the negotiation sessions. Through this information, one could determine if the parties established meetings at reasonable times, for reasonable durations, and whether or not there were reasonable attempts at discussion of issues in dispute.
3) U.S. labor law is often said to put heavy emphasis on the procedural regulation of collective bargaining and to involve relatively little regulation of substantive bargaining outcomes. In what sense is this true?
The NLRA outlines, in detail, a comprehensive legal and procedural framework for collective bargaining without making requirements on bargaining outcomes. While it does divide topics of bargaining into categories -- mandatory, permissive and illegal subjects -- the law does not require that the parties reach agreement or set the terms of any agreements. The NLRA was intended as a framework within which the parties could negotiate contract settlements that satisfied the needs of both sides, as determined through negotiation.
4) Discuss whether collective bargaining in the railroads and airlines should be regulated with labor laws that differ from the laws that apply to other private sector employees.
The main reason for regulating collective bargaining in the railroads and airlines with labor laws that differ from those that apply to other private sector employees is that these industries, unlike most other private sector industries, are essential to maintaining the flow of interstate commerce. Therefore, laws regulating collective bargaining in these sectors must take their importance into account. These laws must be established to promote industrial stability, reduce labor strife, and, above all, prevent "the interruption of interstate commerce by labor disputes and strikes."
5) Do you think employment-at-will is fair and effective? Why or why not?
The virtues of employment-at-will are that it promotes quick responsiveness to economic conditions and flexibility in employment arrangements. It allows for highly firm-specific actions that help spur innovation and creativity in employment practices. The drawbacks are that employment-at- will does not provide due process rights, unless supplemented by either additional firm-level or system procedures. Managements tend to like the discretion and authority they gain with employment-at-will, but employees and their advocates question the fairness of this sort of system.

6) Describe what employment discrimination laws prohibit.


Employment discrimination laws prohibit discrimination on the bases of: race, color, religion, sex, and national origin (Title VII of the Civil Rights Act of 1964); age (ADEA), though only against older workers over the age of 40; and disability (ADA). Employment discrimination laws prohibit both disparate treatment, treating an employee differently based one of the prohibited grounds, and disparate impact, policies that are not justified by business necessity that disadvantage a group defined by one of the prohibited grounds. Sexual harassment is considered a type of sex discrimination under Title VII.
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