Labor Unions

Unit 3
Anyone recognize where this
picture was taken?
How many of you have family members
who are in a labor union?
 Santa’s Workshop
O You are all elves working in Santa’s workshop
I am Santa.
O For centuries you have been upset about the way you
have been treated by Santa and you’ve decided to do
something about it….you are going to unionize
1. Nominate/elect a union president
2. Pick a name for your union
3. What are your complaints?
4. What will you do now to bring about change?
 Basics
A collection of workers who join together into an
organization to fight for better benefits
O Better pay
O More vacation days
O Better health insurance
Derive their strength and influence from the unification
of large groups of workers
O One for all, all for one
 Union Actions
1. Grievance Resolution
O Grievance = a complaint concerning a contractual
violation
O Unions help workers to file the complaint and reach a
resolution

2. Collective Bargaining
O Negotiating with business owners for better benefits,
pay, or conditions
Different Methods/Approaches
to Collective Bargaining
 Fact-Finding
ONeutral third party collects facts
about the dispute and presents
nonbinding recommendations
-they do not listen to arguments

Neither side has to accept the

recommendation
 Mediation
O A neutral 3rd party listens to both
sides and proposes a recommended
solution
O Recommendation does not have to be
accepted by either side
 Arbitration
ONeutral 3rd party listens to
both sides’ arguments
OCreates a solution
OBoth sides MUST accept the
solution
 Dispute Resolution
Simulation
We will be breaking into groups of 5

O Arbitrator
O Mediator
O Fact finder
O Owner
O Worker
 Dispute Resolution
Simulation
The workers and owners of CluckCluck’s
Rubber Chicken factory are having difficulty
solving a labor dispute

Both Sides Disagree On the Following Issues

O Pay raise
O Health insurance costs
O Vacation days
 Dispute Resolution
Simulation
Using the information that is given to your side of this
dispute, come up with arguments and demands that
your side can use to try to achieve your goal in this
dispute resolution.

Remember that the dispute resolution processes usually

try to create compromises so that both sides can be
happy (if you ask for a 20% raise, you probably aren’t
going to get that much from a neutral 3rd party’s
recommendation)

Be creative with the way you use the information to make

the case for your side. Use the information you have to
their full potential.
 Advantages
O All 3 involve a neutral 3rd party to help solve
the dispute Helps to find a compromise
O Fact-Finding
Removes exaggerated or false arguments from
the dispute
O Mediation
Allows both sides to present their arguments
O Arbitration
Guaranteed to solve the dispute
 Disadvantages
O Fact-Finding
Fact-finder may have trouble finding all the
facts needed to make a proper
recommendation
O Mediation
Not guaranteed to solve the dispute (either side
can back out)
O Arbitration
Final solution may unfairly favor one side and
there’s no option to reject the solution
 Follow-Up Question
Answer the following 2 questions in your learning log:
Considering 3 main resolution methods (Mediation,
Arbitration, and Fact-Finding):

1. Which do you think is the best method for creating

a successful solution and why?
2. Which do you think is the worst method for
creating a successful solution and why?
When Collective Bargaining efforts fail….

3. Strike
O Refusal of the union to continue working until certain
conditions are met
O Works like a game of chicken

4. Picket
O Union organized protest against a business (usually
in conjunction with a strike) to gain public support
 Resistance to Unions
Lockout
O Business owners refuse to let union
members work until they drop or make less
demands
O Works like a game of
chicken

Examples?
 Impact of Unions
Good
O Help raise pay and benefits for workers
O Protects workers from unfair business practices
O Gives workers more job security

Bad
O Raises labor costs for businesses
O Could lead to higher prices or fewer jobs
O $ influence over politicians
O Strikes can disrupt production & the economy
 Quick Review
1. Why do workers form labor unions?
O To create a strong organization that can
advocate for the workers
2. If a union feels that they aren’t getting what
they deserve, what can they do to put pressure
on business owners?
O Strike!
3. Are unions a good thing or a bad thing?
O Depends on your perspective (good for workers
usually, bad for businesses usually)
 Union Decline
O Video….

O Lockout Reading
http://www.nytimes.com/2012/01/23/busi
ness/lockouts-once-rare-put-workers-on-the-
defensive.html?_r=0