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ECONOMIC VIEW OF COLLECTIVE BARGAINING

ECONOMIC VIEW OF COLLECTIVE BARGAINING. Unions a Disruption to Competitive Markets Cause a Misallocation of Resources. UNIONIZED SECTOR. NONUNION SECTOR. Sn. Wu. Su. Wn. Wn. Wu. Eu. En. Wn. Wu. Management Perspective. Flows from Economic Perspective

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ECONOMIC VIEW OF COLLECTIVE BARGAINING

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  1. ECONOMIC VIEW OF COLLECTIVE BARGAINING • Unions a Disruption to Competitive Markets • Cause a Misallocation of Resources Theories

  2. UNIONIZED SECTOR NONUNION SECTOR Sn Wu Su Wn Wn Wu Eu En Wn Wu

  3. Management Perspective • Flows from Economic Perspective • Firm (management) has knowledge and legal authority/responsibility to allocate resources (capital and labor) efficiently in best interests of stakeholders and customers of firm Theories

  4. INDUSTRIAL RELATIONS SYSTEMS • OUTCOMES ARE RULES • PROCEDURAL RULES • SUBSTANTIVE RULES • HOW ARE RULES ESTABLISHED? • MANAGEMENT • GOVERNMENT • WORKERS HIERARCHY • MANAGEMENT-WORKERS • MANAGEMENT-WORKERS-GOVT Theories

  5. INDUSTRIAL RELATIONS SYSTEMS (CONT.) • ACTORS • MGMT, GOVT, WORKERS/ORGS • CONTEXTS • TECHNOLOGICAL • TYPE OF PRODUCT OR SERVICE • AIR TRAVEL • GEOG DISPERSION • VARIABLE HOURS, ETC. • MANUFACTURING (PAPER) • GEOG CONCENTRATION, • LONGER SHIFTS (ETC.) Theories

  6. INDUSTRIAL RELATIONS SYSTEMS (CONT.) • CONTEXTS (CONT.) • MARKET/BUDGETARY • SHELTERED • COMPETITIVE • LOCUS OF POWER IN SOCIETY • OUTSIDE IR SYSTEM • POLITICAL INFLUENCE OF UNIONS • CANADA - PARLIAMENTARY SYSTEM & NDP • U.S. - LINK TO DEMOCRATIC PARTY • EMPLOYER LINK TO REPUBLICAN PARTY Theories

  7. INDUSTRIAL RELATIONS SYSTEMS (CONT.) • WHAT ARE THE RULES • SUBSTANTIVE • COMPENSATION IN ALL FORMS • DUTIES AND PERFORMANCE OF WORKERS • RIGHTS OF WORKERS • PROCEDURAL • FOR RESOLVING DISPUTES • CHANGING THE RULES Theories

  8. INDUSTRIAL RELATIONS SYSTEMS (CONT.) • IDEOLOGY • A SET OF COMMON BELIEFS THAT HOLDS SYSTEM TOGETHER • ACTORS’ IDEOLOGIES MUST BE COMPATIBLE • EXAMPLES • EUROPE • CLASS LINES • COLLECTIVE WORKER ACTIVITY A NATURAL COROLLARY TO CLASS Theories

  9. INDUSTRIAL RELATIONS SYSTEMS (CONT.) • EXAMPLES (CONT.) • UNITED STATES • INDIVIDUALISTIC • LESS COMFORTABLE WITH COLLECTIVISM AND UNIONISM, ESPECIALLY IF IMPOSED ON UNWILLING INDIVIDUALS (FREEDOM OF ASSOC.) • A NECESSARY EVIL • COMPOSITIONAL ISSUES • WHAT IS GOOD FOR EVERYONE IS NOT NECESSARILY GOOD FOR EVERY ONE • SCOPE OF INCLUSION • EXTENSION TO ALL EMPLOYERS IN EUROPE • UNIT BY UNIT CHOICE IN U.S. Theories

  10. Bilateral Perspective • Cooperation and Conflict • Mixed Motive approach • Inequality • Status • Bargaining Power • Balance Required Theories

  11. GOVERNANCE VIEW • Focuses on how decisions are made • no CB - unilaterally • CB - jointly • Permits workers to participate in decisions affecting them • Transference of notions of democracy to the workplace • property rights only provide authority over property • does not necessarily provide authority over people Theories

  12. ACTIONS ASSOCIATED WITH EMPLOYEE DISSATISFACTION • Economic View - Exit • Governance View - Voice Theories

  13. INDUSTRIAL DEMOCRACY VIEW • Workplace is analogous to society • Cannot have democracy in society without democracy in the workplace Theories

  14. Law and Values View • Values in United States • Individualism • rights of individuals superior to other rights • property rights a derivative of individual rights • individuals free to order economic transactions so long as no laws are broken - freedom of contract • Corporations are Legal Individuals • Purchase and sale of labor an exchange transaction • Unions attempt to collective an individual transaction Theories

  15. Law and Values View (CONT.) • Values in U.S. and Law • Unequal status of employers and unions • conflicts between ind\property rights and collective rights usually resolved in favor of ind rights • “reserved rights” theory of management • Impact on IR System • Unions • Employers\Corporations • Product Market Theories

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