ANSWER THE FOLLOWING QUESTIONS BASED ON THE ARTICLE:

1. Why do you think that Verizon and its union had a work stoppage during their 2016 contract negotiation, but not in their more recent contract negotiation?

2. How is the labor-management relationship at Kaiser Permanente different from some more traditional labor-management relationships? Why do you think that is?

3. Explain Boeing's reasons for wanting to have an alternative (to Seattle) to produce aircraft. Explain why it chose South Carolina.

4. If you were an employee at Boeing in South Carolina, would you have voted for or against the union? Explain.

EXERCISING STRATEGY Different Varieties of Collective Bargaining Contracts and Labor-Management Relations In the opening to the chapter, we looked at JetBlue's new experience with labor unions and noted it had just negotiated its first collective bargaining contract (with its pilots). Of course, most collective bargaining contracts are negotiated in the context of long-standing unions. For example, Verizon, after a seven-week strike in 2016 by its employees, agreed to a contract in 2016 that expired in August 2019. However, in return for a promise of labor peace, Verizon and its unions (Communication Workers of America and International Brotherhood of Electrical Workers) agreed to extend the contract's terms into 2023. As another example, Kaiser Permanente recently reached a deal on a three-year contract with its 48,000 employees, who are represented by the Alliance of Health Care Unions in 22 locations (and union locals). In addition to covering standard contract issues such as wages and benefits, the contract further strengthens the labor-management partnership, which includes 3,600 unit-based teams, jointly led by pairs of managers and union-represented employees, which focus on improving quality, affordability, service, and work environment. Of course, most U.S. workers are not in unions, meaning that union organizing drives often fail, including in old economy" industries. For example, employees at Boeing's aircraft production plants near Charleston, South Carolina, recently voted against joining the International Association of Machinists (IAM) union. The plants assemble 787 Dreamliner jets and are the sole location where the new 787-10, the largest jet in the Dreamliner family, is assembled. Boeing first purchased existing plants from other companies in 2004, 2008, and 2009. It then built two new aircraft production facilities that began producing planes in 2012 and 2016, respectively. The IAM claimed that Boeing employees in South Carolina make 36% less, on average, than Boeing's unionized employees building 787 aircraft in its main facility in Everett, Washington, just outside of Seattle. An IAM organizer said, We are disheartened that employees will continue to work in a system that suppresses wages, fosters inconsistency and awards only a chosen few. Apparently, however, employees for the most part did not agree, as 74% voted against having the IAM union represent them. The vote perhaps reflects a general discomfort in South Carolina about the likely effect of unions on future economic development. For example, Senator Lindsey Graham and former governor and former United Nations Ambassador, Nikki Haley, both advised Boeing employees not to support a union. Senator Graham said that while he respected the right of employees at Boeing to decide what was in their best interests, he argued that what was best for South Carolina was if Boeing stays here and grows and that if you destroy the business model that led Boeing to come to South Carolina, we all lose. Page 668