In An Introduction to U.S. Collective Bargaining and Industrial Relations by Katz, Kochan and Colvin (K, K & C), bargaining power is divided into three spheres, total, relative and political. K, K, & C write that “total power concerns the total profits that are available to labor and management. Relative power has to do with… the ability of either side to gain a larger share of a given amount of profit. Political power concerns the ability of labor or management to influence governmental actions. (Katz Chapter 4) The sphere of total power is largely determined by two channels: the firm’s external competition and the firm environment’s overall macroeconomic state. In the case, the overall macroeconomic state of First National’s environment …show more content…
In the case of labor, their ability to do so is largely determined by the elasticity of demand for labor and how likely they are to be replaced by other workers and/or machinery. Conversely, management must possess the resources to withstand a strike by their workers in order to maintain a strong level of relative power. In our case, the economic channel of influence on relative power is strongly represented. It is mentioned that jobs at First National were once recognized as being some of the most secure in the Lake City area, but “the advantage of working at the bank in this respect compared to working at the auto plant had largely disappeared 10 years ago when the union first negotiated supplementary unemployment benefits, and… by negotiating a Guaranteed Annual Income which replaced the SUB.” The two main issues addressed during meetings held by union and management representatives with FNB employees were “the pension and profit-sharing plans and the lack of an employer-paid hospital-medical plan.” The profit-sharing plan is generally regarded as “highly valued” and contributes to management’s relative power. Conversely, the lack of an employer-paid medical plan should serve as a source of relative power for the union, as “The First National was the only bank in the area which did not have a hospital-medical
In the period immediately following World War I, American workers struggled to earn a living as prices rose and wages stagnated, forcing them to seek union support. Labor unions endeavored to represent the working class against their employers and corporations, who refused to increase wages or improve working conditions. In order to combat the capitalist’s immense political clout, unions made their voice heard through strikes. After the war, capitalists linked unions to the mounting communist threat, stressing that strikes undermined capitalism and threatened a republican form of government. As a result, government sided with capital against labor unions and the struggle of the American workers, who had no voice against corporations. This struggle can be exemplified in a correspondence between union leader, Samuel Gompers and bishop William Quayle, published in “The Twenties in Contemporary Commentary: Labor & Capital”. The letters demonstrate that in the 1920’s, labor unions were necessary as a means to overcome capitalist greed and enhanced the ideals of democracy by empowering the working class.
The mill workers felt that they simply did not have any other options and feared the punitive steps management would take if they unionized. Indeed, this appeared to be the case. When several employees expressed a tentative interest in the union, management reduced their work days, and, consequently, their pay. The mill’s management used many other scare tactics to try and persuade employees to reject the union.
In labor as in all things there is strength in numbers it is this strength that American labor unions provide. Labor unions provide a collective voice for those who had not previously been heard. As the professor in the “Frustrated Labor Historian” Dr. Horace P. Karastan is left with the dilemma what are the three most important events in American labor union history it would be difficult to choose with so many important moments. There are however several events that stand out as being turning points in giving employees unquestionable protections. The Norris-LaGuardia Act of 1932 allowing employees the right to organize. Further the Wagner Act protecting employees from reprisal from employers for organizing spurring the growth of unionization. The Landrum-Griffin Act of 1959 building on the Wagner Act as well as the Taft-Hartley Act of 1947 which granted protections from the unions. It is these Acts that have changed the landscape of American labor union history and leave us with the unions that we have today.
1. The total bargaining power of First National Bank management and labor is high. The bank is very profitable, as it has over $800 million in assets. Although there are commercial banks in the area, First National Bank is the largest and has twice the amount of assets as the next largest bank. Thus, it has a relatively low degree of competition. Additional information on the financial performance of the auto plant in Lake City is needed because the area’s economy is largely dependent on the production level of the plant. If the state of the economy is well and stable, then this will also positively impact the total power. When it comes to relative bargaining power, management and labor both have their strengths and weaknesses. Management has some strike leverage because it can be assumed that there are replacement workers readily available. Because the turnover rates for the Loan department and the Tech department have always been very high, the bank is accustomed to finding replacement workers for these jobs quickly and continuing operations during these transitions. However, if the bank’s employees go on strike, the production, sales, and profits of the bank will all be negatively affected since employees are essential to the daily operations and sales of the bank, especially in the short-run. Labor has a relatively higher strike leverage as compared to that of management. Assuming that the economy is stable and the unemployment rate low, employees are more likely to find
The ensuing conflict, between labor vs. capital, during the late 1800s initiated a struggle of power in the workforce between the rich-industrialists (or corporate leaders) and the middle-class/lower-class workers. The Capitalists had intervened with the protests orchestrated by the workers, ensuring that the power remains with them. The strategies of the industrialists and the unique ways of protesting from the workers, contributes to spur a vigorous argument between the employers and their employees. The workers tried their best to ameliorate their working conditions by forming numerous unions, trying to fix currency (gold to paper) to economically help themselves, refusing to go to work, resorting to violence and non-violence, etc. However, the Corporate leaders kept an upper hand and dissolved the workers’ ambitions by hiring scabs, creating a strong relationship with the military (Pullman strike), controlling and fixing policies at work, hiring immigrants for cheap labor, etc. Throughout the late 1800s, the corporate leaders have been able to successfully prevent workers who had resorted to: forming unions, protests (ex. Pullman strike and Homestead strike), violence (ex. Haymarket Sq. Riot), etc., from achieving a radical solution to the workers issues with the management by using several different strategies including but not limited to: hiring scabs/immigrants in the Homestead strike, using government support in the Pullman strike and keeping the power on their side
The labor union movement over the years has shaped the way individuals work and live for both the nicest and unpleasant. Some would think the unions influence has created a power struggle between management and union leaders. In today’s time, some citizens insist the existence of unions are a must to aid in employee freedom, while others view the labor unions as just another problem in the line of progress. The purpose of labor unions was for employed workers to come together and collectively agree on fundamental workplace objectives. The rise of the union came about after the Civil War- responding to the industrial economy. Surprisingly at the least unions became popular within the 1930-50’s and began to slowly decrease,
LEWIN, D., KEEFE, J. H., & KOCHAN, T. A. (2012). THE NEW GREAT DEBATE ABOUT UNIONISM AND COLLECTIVE BARGAINING IN U.S. STATE AND LOCAL GOVERNMENTS. ILR Review, 65(4), 749-778 Retrieved from https://web-b-ebscohost-com.bethelu.idm.oclc.org/ehost/pdfviewer/pdfviewer?vid=4&sid=71a03270-ad95-41f9-a574-414b59891617%40sessionmgr103&hid=101
While organized labor’s storied history demonstrates remarkable achievements, there has been a downside for the American economy. By way of example, the formerly dominant U.S. steel industry serves to remind of an time when poor management, global competition, and union excess were necessary causes of a dramatic and rapid industry decline.
this rationalization is the basis of Stephen’s internal epiphany; she is, toStephen, “an envoy from the fair courts of life”. This wholesome bird-like girl with “long
This article talked about the general things of the National Labor Union back in the 1800’s. It mostly talked about the negative effects of the NLU such as exclusion of women, racial prejudice, and failing to enforce the eight-hour labor law. The article did mention about groups of skilled, unskilled, and farmers were unable to share and participate in united political views unless they were intensely focused on labor union. After William Sylvis death in 1869, the NLU suffered politically and dealt with the Depression of 1873, where the NLU finally collapsed.
Though, unions are declining, the role of union have evolved over time. Now, it is more common to view unions’ primary role as collective bargaining, which is the product of the economic decision and making process with unionism of the private sector. A long time ago, Union was seen as the shield that protects American workers against some of the abusive employers. Many public sector employees have unionized. However, the National Labor Relations Act was designed for the private sector. Despite that, union has become a model for most public sector collective bargaining right. Regardless of the success that Unions have with collective bargaining in the private sector, there are still a few who are opposed collective bargaining in the public sector. Of course, there are some differences between the public and private sectors.
The unions of yesterday have left the public feeling fearful of what might happen in the future. Will history repeat itself? Will employees be deceived through the mighty power of Labor Unions? Promoting benefits of unionized labor is one approach to regaining the trust of the public. Benefits include medical aid, heath insurance, worker compensation and overall respect of employees in the workplace. I feel with these measures taken Labor unions will once again reach the productivity that it once had pre-WWII.
The National Labor Relations Act was enacted by congress in 1935 in order to define and defend the rights of the employment relationship. The act allows employees of a company the right to form a union and have the union organization represent them through collective bargaining. Collective bargaining is the process of negotiation between both parties; Union representatives and a corporation, with the purpose of reaching an agreement for the best interests of employees and the corporation. In the negotiation process the attempt is to establish primary factors of importance which are advantages the union fights for and ultimately provide for its stakeholders that would otherwise not have
David Brody argues that the rise of contractual or collective bargaining relationships during the post WWII era formalized the relationship between employers and unions. The use of collective bargaining agreements to resolve workplace disputes weakened unions and the power of workers. Other actions, such as using collection bargaining as a form of substitution for direct action and using it instead of the strike for grievance and arbitration procedure served , also has weakened the unions and the power of workers. The rise of contractual or collective bargaining relationships changed the dynamic of the workplace, shifting the power from the union side to towards the employers. The perspective could best be argued suing Weber’s theory and
Literature is representative of the time in which it is produced. Literature can reflect societal views, attitudes, and fears.Vampire literature, in particular, often represents the fears of a society.In the Victorian Era, a time of intense sexual repression, it was common for vampire stories to reflect the fear of sexuality that was rampant in society.