CHAPTER 11: THE EQUAL EMPLOYMENT AND LABOR RELATIONS ENVIRONMENT

1. CHAPTER 11:THE EQUAL EMPLOYMENT AND LABOR RELATIONS ENVIRONMENT Presented by: Ernesto Garcia Brian Ruff Mandy Ruff

2. OUTLINE Chapter Review How this topic fits in with the Human Resource Model � Fig. 1-1 Group exercise & discussion Summary & Concluding Remarks

3. CHAPTER OVERVIEW EEO laws and government guidelines in the U.S. Variations in employment regulations across countries See how managers in multinational firms must deal with a unique set of EEO issues Become acquainted with some key labor relations issues that vary across countries

4. TITLE VII OF THECIVIL RIGHTS ACT OF 1964 Applies to firms employing at least 15 people Prevents differentiation based on race, color, creed, sex, or national origin Prevents discrimination in ANY aspect of employment

5. TITLE VII May occur in two ways: Disparate Treatment Disparate Impact Differentially Affects protected group Can be justified by: Shifting the burden of proof Bona Fide Occupational Qualification (BFOQ) Business Necessity Reasonable Accommodations

6. SEXUAL HARASSMENT UNDER TITLE VII Definition Two types quid pro quo harassment hostile work environment sexual harassment

7. CIVIL RIGHTS ACT OF 1991 Opportunity for victims of intentional discrimination to ask for compensatory and punitive damages in jury trials, and the application of Title VII to employees of American firms in foreign countries if they are U.S. citizens.

8. EXECUTIVE ORDER 11246 � AFFIRMATIVE ACTION Issued during the same time the Civil Rights Act of 1964 was passed. E.O. 11246 requires covered employers to prepare a formal written Affirmative Action Plan. Covered companies are companies with $50,000 in government contracts and with 50 or more employees.

9. EXECUTIVE ORDER 11246 � AFFIRMATIVE ACTION Affirmative action was designed to �play catch-up� - increase employment opportunities for minorities in order to make-up for many years of past discrimination. Affirmative action focuses on hiring, training, and promoting protected class members when they are underrepresented in an organization in relation to their availability in labor markets where recruiting occurs.

10. EXECUTIVE ORDER 11246 � AFFIRMATIVE ACTION Employers identify problem areas, set goals, and take positive steps to guarantee equal employment opportunities for a protected class. A company should conduct the following: Internal background review Underutilization analysis Set goals and timetables

11. AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA) ADEA makes it illegal for employers to discriminate in compensation, terms, conditions, or privileges of employment because of an individual�s age. ADEA covers all persons over the age of 40 who are employed by companies with 20 or more employees.

12. AGE DISCRIMINATION IN EMPLOYMENT ACT (ADEA) A typical employment issue would be a firm�s plateauing of older mangers in the company hierarchy. For example, if a 55-year-old manager was prevented from climbing the company�s hierarchal latter. The company may be required to provide a job-related reason for the decision (something other than age).

13. AMERICANS WITH DISABILITIES ACT (ADA) Signed and enforced as a law on July 26, 1990. The purpose of ADA is to protect people with disabilities from employment discrimination. A qualified disabled person . . . .someone who has a physical or mental impairment that substantially limits that person in some major life activities, who has a past record of such an impairment, or who is regarded as having an impairment by others .

14. AMERICANS WITH DISABILITIES ACT (ADA) Essential job functions Reasonable accommodation Undue hardship

15. AMERICANS WITH DISABILITIES ACT (ADA) Examples of reasonable accommodation: Making facilities accessible and usable Job Restructuring Modifying work schedules

16. INTERNATIONAL EMPLOYMENT REGULATIONS U.S. FOCUS Free enterprise (capitalistic). Law written to eliminate discrimination for individuals. EUROPEAN FOCUS Emphasis on �class rights� (groups) Laws written primarily for women. JAPANESE FOCUS Use of mediation over legal remedies. Less laws used than U.S. May be written but not practiced.

17. EQUAL EMPLOYMENT ISSUES FOR MULTINATIONALS APPLICATION OF: U.S. labor & employment laws & regulations. U.S. labor laws regarding foreign direct investors. Extraterritorial application of U.S. laws in foreign country operations. International employment law impact on global operations. Host country laws on foreign operations.

18. OTHER FOREIGN ISSUES Must justify training, pay, & benefit disparities between U.S. employee and foreign-stationed employee. Most U.S. employment laws do not extend to global operations, although� ADEA applies if U.S. owned company with foreign employees that are U.S. citizens. CRA & ADA also apply under same circumstances.

19. INTERNATIONAL LAWS/ ORGANIZATIONS Foreign laws may include: International (ie. ILO) Regional / host country (ie. GATT) Treaties (GSP) Other Organizations: EEC OECD

20. LEGAL DEFINITIONS Same wording in laws may have different meanings� �Collective Bargaining� in U.S. is between labor union & management. �Collective Bargaining� in Germany is between employers� organization (representative) & trade union (at industry/nationwide level)

21. TREND OF EUROPE�S UNION MEMBERSHIP Drastically declining membership (union density)