Human Resource Management, questions 1,2,3,4

EXERCISING STRATEGY Different varieties of Collective Bargaining Contracts and Labor-Management Relations In the opening to the chapter, we looked at JetBlue's new with its 48.000 employees, who are represented by the experience with labor unions and noted it had just negotiated Alliance of Health Care Unions in 22 locations (and union its first collective bargaining contract (with its pilots). Of locals). In addition to covering standard contract issues such course, most collective bargaining contracts are negotiated in as wages and benefits, the contract further strengthens the the context of long-standing unions. For example, Verizon. labor-management partnership, which includes 3.600 unit- after a seven-week strike in 2016 by its employees, agreed to a based teams, jointly led by pairs of managers and union- contract in 2016 that expired in August 2019. However, in represented employees, which focus on improving quality, return for a promise of labor peace, Verizon and its unions affordability, service, and work environment. (Communication Workers of America and International Of course, most U.S. workers are not in unions, meaning Brotherhood of Electrical Workers) agreed to extend the con- that union organizing drives often fail, including in "old econ- tract's terms into 2023. As another example, Kaiser omy" industries. For example, employees at Boeing's aircraft Permanente recently reached a deal on a three-year contract production plants near Charleston, South Carolina, recently voted against joining the International Association of Machinists (IAM) union. The plants assemble 787 Dreamliner was best for South Carolina was if "Boeing stays here and jets and are the sole location where the new 787-10, the largest Boeing to come to South Carolina, we all lose." grows" and that if you destroy the business model that led jet in the Dreamliner family, is assembled. Boeing first pur chased existing plants from other companies in 2004, 2008, and 2009. It then built two new aircraft production facilities QUESTIONS that began producing planes in 2012 and 2016, respectively. 1. Why do you think that Verizon and its unions had a work The IAM claimed that Boeing employees in South Carolina stoppage during their 2016 contract negotiation, but not in their more recent contract negotiation? make 36% less, on average, than Boeing's unionized employ- ees building 787 aircraft in its main facility in Everett, 2. How is the labor-management relationship at Kaiser Per- manente different from some more traditional labor- Washington. just outside of Seattle. An IAM organizer said, management relationships? Why do you think that is? "We are disheartened" that employees will continue to work 3. Explain Boeing's reasons for wanting to have an alterna- in "a system that suppresses wages, fosters inconsistency and tive (to Seattle) to produce aircraft. Explain why it chose awards only a chosen few." Apparently, however, employees South Carolina for the most part did not agree, as 74% voted against having 4. If you were an employee at Boeing in South Carolina, the IAM union represent them. The vote perhaps reflects a would you have voted for or against the union? Explain. general discomfort in South Carolina about the likely effect of SOURCES: "Kaiser Permanente Announces Deal with its Unionized unions on future economic development. For example, Employees," NIC No, October 4, 2018, www.nbcnews.com: A. Pressman Senator Lindsey Graham and former governor and former *Exclusive: Verizon Extends Union Contract. Avoiding possibly Tough Labor Talks Next Year." Fortune, July 19, 2018, www.fortune.com, National Labor United Nations Ambassador, Nikki Haley, both advised Relations Board, "Concerted Activity," www.nih.gov: D. Cameron, "Boeing Boeing employees not to support a union. Senator Graham Workers in South Carolina Vote against Joining Union. Wall Street Journal said that while he respected the right of employees at Boeing February 15, 2017: M. Ehrenfreund, "Boeing Workers in South Carolina Vote against Union, Washington u. February 15, 2017 to decide what was in their best interests, he argued that what