effects of centralized vs. decentralized bargaining structures on wages, inflation, strikes, the bargaining process, and the negotiation process

Collective Bargaining is important in the employment relationship as it recognises the TU’s right to represent its employees for consultative or bargaining purposes and represents a fundamental and irreversible change in the employment relationship (Trade Union Recognition Institute of Personnel Management 1977, p24).

Collective bargaining, as its name implies, is achieved when two or more parties come together to make a decision about something. Specifically, it is achieved when employers and a group of employees work together to decide important terms and conditions regarding employment. These terms and conditions include compensation as well as rights and responsibilities of employees, employers, and unions. They can also include guidelines for resolving problems such as grievances and disputes (Budd, 2010, p. 13).

I feel the labor relations system as currently constituted is effective for resolving disputes as long as both parties are committed to negotiating in good faith. Although, I feel the current system is effective a further explanation of the systems strengths and weaknesses will better explain the effectiveness of resolving disputes. It is in both the companies and the labor interest to negotiate with as little third party interaction to come up with an agreement. In times when there are disputes their different course of action that start from a least costly without giving up power in the decision to the possibility of becoming more costly to either party and give up the power in the decision. As discussed in the text when an organization and labor cannot come up with an agreement a third party may be asked to come in to negotiations to resolve a dispute which includes mediation, fact-finding, and interest arbitration.

Initially, the intent of labor unions was for employed workers to meet together and collectively agree on fundamental workplace objectives and goals. The rise of the union came about after the Civil War, in the United States- responding to the industrial economy boom. Following the war, labor unions finally reached public popularity within the 1930-1950’s, and then again began to slowly decrease, through the 1960’s and on to today’s times. Although, the popularity of labor unions has decreased, its importance remains to be evident with politics, journalism, auto, and the public education industries.

During our negotiation with D.G. Barnhouse (DGB), we intend to utilize an integrative bargaining strategy with management. Before coming to this conclusion, we weighed the advantages and disadvantages of a distributive approach, however, we eventually decided to take an integrative and predominantly interest based stance versus a position based stance in our negotiations after assessing internal and external environmental factors. In addition, we settled on this strategy because we ultimately believe that management and the union share at the very least, one fundamental common interest, which is the firm’s financial stability. That being said, even with our plans to use integrative bargaining, we still plan to negotiate assertively to achieve

The diagram to the left shows how a trade union can force a rise in wages, but it could lead to a cut in the number of jobs. If the union secures the rise in wages from W1 to W2, the trade union mark up, then this leads to an increase in wages. However it also intersects the demand curve at a much higher point

In 1938, the Fair Labor Standards Act was created to establish a minimum federal wage to serve as a standard wage to reduce poverty and to secure economic growth is shared across the workforce. Today minimum wage is far below its historical levels and loses its value every year due to inflation. The minimum wage workforces are living close to poverty levels, and insist on the government raising the minimum wage. Sometimes the fight to raise the pay for workers goes unnoticed or unheard, so a labor union is formed. With a bargaining union handling the employee’s best interest, the workers usually improve their wages and quality of life. In this paper we will discuss minimum wage laws and labor unions.

At 1981, The George A. Hormel Meatpacking Company cut wages from $10.69 to $8.25 to claim the need to remain competitive. Companies threat workers that they either close one plant and then open it at lower wage places or exit the business directly. Local unions like P-9 firstly request that all the workers should stick to $10.69 an hour in ten or fifteen years that we could call its target point. The company didn’t agree, they asserted new member workers the company recruited would be paid two dollars less for the same work, which is different from the P-9 decision. Union P-9 refuses any concessions in the negotiation process at first, which proves it is an over-aspiring negotiator. It reveals its reservation point that keeping the $10.69 at least three years too early because it has absolute confidence to win the negotiation. But actually P-9 Local wrongly assesses the counterparties interests and BANTA and lead to final negotiation failure unavoidably.

Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly

A union is an organization of workers who join together in order to have a voice in improving their jobs and the quality of work within the organization. In many occasions, unions help employees of an organization negotiate pay, benefits, flexible hours and other work conditions that may arise. Unions have a role because some degree of conflict is inevitable between workers and management (Noe, 2003). In this paper, I will be discussing the impact of unions and labor relations within an organization.

UE Local 1917 and the other locals face two problems here. One is the two-tier wage and benefit system and second is what to do about other workplaces that do the same or similar work for lower pay. Both problems involve the questions of how to maintain decent wages, how to build solidarity among workers, and the question of how union density (how many workers in a given company, industry or location are in unions) affects wages and benefits.

Collective bargaining is the process by which conditions of employment are negotiated between management, and the labor organization representing employees in the bargaining unit. However, “collective bargaining refers to a situation in which union members and officials meet with an intent to resolve any issues or conflicts, in an attempt to maintain relationships” (Holley, Jennings, & Wolters, 2012, p. 243). The collective bargaining process relies on four aspects: recognition of the meeting, meeting with appropriate parties, bargaining in good faith, and incorporating the reached agreement (Adam, 1997). Nevertheless, collective bargaining activities are governed by the National Labor Relations Act (NLRA). The NLRA requires bargaining

With globalization,many changes have been brought up in the workplaces that are leading towards more flexibility and enrollment of the employees (Tong Fay and Anil Verma,2002). “According to a survey -unionized workers across Canada earned$5- 28/hour more than non-union workers; Women with unions earned more too and got paid more fairly (Why unions? ,2015)”. Thus ,it gives us an idea what changes are being brought about by the unions in comparison to non-union when it comes to the wage sector. The union workplaces give a chance to the members to bargain for their benefits which includes not only social well being but also the say,the right to speak up about their own views therefore giving them the chance to talk about their problems. The union have been progressed to give a fair wage

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 implication of such tax progression scheme has been examined by using a number of models where equilibrium wage is determined by bargaining between trade unions and firms, bargaining between employer and employee, monopoly unions and /or in the context of efficiency wages. The incidence of income taxation on labor income and the degree of tax progressivity have immense economic consequences which have been examined extensively in the area of macroeconomics and public economics. An increase in tax progression tends to reduce labor supply and increase equilibrium wage in a perfectly competitive labor market where neither agents possesses any sort of market power (e.g. Bovenberg and van der Ploeg, 1994). On the other hand, the degree of tax progression influences incentives of the