HRMD 620
1Overview
Spring 2012 Agenda * Orientation * Definition * Relevance * Framework for HRMD 620 * Model for labor relations * Evaluating labor relations * Assignments

Orientation
Hello. This is our first stop on the semester long tour of Employee and Labor Relations. By now, you should have reviewed the Read Me First document, Read Me Second document, Syllabus and Course Schedule. You should have completed the Getting Started tasks in the Read Me Second document, which includes your introduction in the “Student Introductions” conference. I wouldn’t be surprised if some of you have already started reading ahead, too. (That isn’t a bad idea since this course includes lots of material—both in the textbooks and through assignments.) Finally, if you haven’t already, please be sure to read the Research Paper Instructions in the Course Content area. You will need to do that in order to complete the Week 1 assignment.
Today, we need to orient ourselves by looking at several basic questions:
· What is labor relations and what does it strive to accomplish?
· Why do we care?
· How did labor unions come into being?
· Are labor unions effective?
What is the first thing you think of when you hear the term “labor relations?” I would venture to bet that some of the plausible responses would be: * labor unions * strikes * collective bargaining * protesters * conflict
The aforementioned all seems to conjure up images of labor unions. It is important to stress here that labor relations is not merely labor unions. Rather, labor relations should be viewed more broadly. Labor unions arose as a mechanism to address efficiency, equity, and voice. (Budd, 2010, p. 12) U.S. labor law protects union activity in order to promote: * Efficiency: increasing the purchasing power of workers and reducing disruptive strike activity * Equity: achieving fair standards and protections against exploitation * Voice: providing democracy in the workplace (Budd, p. 12)
Utilization of the collective bargaining process can achieve efficiency, equity, and voice. According to many, however, US labor unions are too weak as evidenced by the decline in private sector membership since the 1970s. What are the reasons for this decline? Budd points to 3 possibilities: 1). Jobs have declined in traditionally unionized industries such as manufacturing while they have increased in nonunion industries such as service; 2). Workers’ demand for union services have declined; 3). While controversial, employer opposition or resistance may play a role.
Besides labor unions, what else do you think of when you hear the term, “labor relations?” Do labor relations exist in a non-union environment? Is it possible to exist in both the public and private sectors? Can you think of any good reasons why labor relations should look differently in the public sector? In thinking about the latter question, think about the role of government and the purpose of public sector positions. Does it matter that government doesn’t exist to merely increase revenues as in the private sector? These are important questions that we will address throughout the semester.
Definition
A singular definition of labor relations probably doesn’t exist. For our purposes this semester, we’ll start off by saying that” labor relations is a complex concept that is probably best described in terms of what it seeks to accomplish: efficiency, equity, and voice." (Budd, p. 5) When studying labor relations, these objectives are best understood as interconnected components as opposed to distinct, individual units. Accordingly, labor relations is the study of how employee representation - typically through labor unions - help strike a balance between efficiency, equity, and voice. Throughout our study of labor relations this semester, you will see the interplay and conflict among efficiency, equity, and voice.
As we study the topic in more depth this semester, we may need to expand our working definition.
Relevance
Now, let’s discuss why we bother investigating and studying such a nebulous concept. Consider the following recent events:

* On March 11, 2011, Governor Scott Walker of Wisconsin signed a bill that nearly stripped all collective bargaining rights from the vast majority of the state’s public employees to address the state’s fiscal concerns. (On June 14, 2011, the Wisconsin state supreme court by a 4-3 vote set aside a lower court’s permanent injunction blocking the law from taking effect). * On March 11, 2011 at 11:59 pm, the collective bargaining agreement between the National Football League (NFL) owners and the players union expired. The owners and players union failed to negotiate a new agreement. The owners locked out the players triggering the NFL’s first work stoppage in 24 years. The players’ union decertified renouncing bargaining rights with the NFL. * On May 9, 2011, the National Labor Relations Board issued a complaint against Hispanics United of Buffalo alleging that the nonprofit agency unlawfully discharged five (5) workers for posting negative comments on Facebook about working conditions. (Hispanics United of Buffalo, Case No. 03-CA-27872).
For each of the above, which objectives – efficiency, equity, voice – are in conflict? I will note here that the analytical process necessarily requires that you examine the issue from both sides: employer and employee. A one-sided analysis usually only yields a partial picture. More importantly, in a graduate level course, such an incomplete analysis will probably result in an unsatisfactory grade. So, let’s take a brief moment to practice.
In the NFL situation, one of the major points of contention was season length. The owners sought to promote efficiency by extending the season from 16 games to 18 games, thereby increasing ticket sales and television revenues. From the player’s perspective, they wanted more money citing the increased risk of injury. In terms of equity, the owners, sighting the rising costs of salaries, stadiums, and taxes, wanted an increase in the revenue sharing agreement negotiated with the players union in 2006. The players, on the other hand, wanted more money put towards retired players, for instance. When the players’ union decertified, one could argue that it relinquished its voice as a collective unit. In reality, decertification allows the players to pursue individual or class action lawsuits against the NFL based upon antitrust violations. So, one could argue here that the players’ voice was not been lost at all. Do you see how you have to include both sides to thoroughly address any issue? This level of analysis is expected in your written assignments.
What is particularly interesting is the role of labor relations in shaping, in part, the legislative and regulatory landscape of American history. Consider the landmark National Labor Relations Act (NRLA) (29 USC § §151-169) that was passed in 1935. Pursuant to Section 151, the NRLA was passed to address “[t]he denial by some employers of the right of employees to organize and the refusal by some employers to accept the procedure of collective bargaining lead to strikes and other forms of industrial strife or unrest, which have the intent or the necessary effect of burdening or obstructing commerce….” Think about how this justification meets one or more of the objectives of labor relations.
Framework for studying labor relations in HRMD 620
The framework for our study of labor relations involves the four (4) schools of thought about the employment relationship: * The mainstream economics school; * The human resource management school; * The industrial relations school; and * The critical industrial relations school (Marxist)
These schools of thought inform our opinions about labor unions and the role they serve in our society. More importantly, our definition of the labor problem itself depends upon the school of thought to which we subscribe. In order to develop solutions to the labor problem, we must seek to identify the underlying cause(s). Beliefs about the causes of the underlying problems vary among the 4 schools of thought. Let’s take a brief, closer look: * Mainstream Economics School * The dominant view * Free market competition is critical to achieve efficiency, equity and voice * No one can be made better off without making someone else worse off (you’ll see this one again) * Labor unions harm the economy and the public because they inhibit free market competition by restricting the labor supply * The Human Resource Management School * The labor problem stems from poor management * The solution to the labor problem is better management by aligning the interests of workers and the company * Independent unions (traditional) are adversarial as opposed to company unions (nonunion representation plans) * The Industrial Relations School * The labor problem stems from unequal bargaining power between the company and the workers * The solution is to increase workers’ bargaining power via unions and collective bargaining in order to match corporate bargaining power * The Critical Industrial Relations School (Marxist Industrial Relations) * The labor problem arises from the control of society’s institutions and the means of production by specific groups, i.e., capitalists v. workers * The solution is socialism
It should be noted that these schools of thought are not just historical in nature. Rather, they remain relevant today in that they form the key frameworks for analyzing the employment relationship in the 21st century. As we analyze issues and identify problems in labor relations this semester, ask yourself which school of thought informs your responses and opinions. We’ll have an opportunity to practice this in our weekly assignments.
These schools of thought also provide important frames of reference for not only evaluating labor unions, but also human resource management practices as summarized in the following table:

Views of Human Resource Management Practices | Model of the Employment Relationship | Human Resource Management Practices Are… | Egoist | Of secondary importance because they are administrative or institutional mechanisms for implementing implicit contracts, incentives, and other manifestations of self-interested economic actors interacting in competitive labor markets. | Unitarist | Essential because they are the key method for creating productive employment relationships by aligning the interests of employees and employers. | Pluralist | Useful for aligning those employee-employer interests that are shared, but insufficient for balancing competing interests because of problems of unilateral employer authority and power. | Critical | Manipulative managerial tools for shaping the ideology and structure of the workplace to strengthen capital’s control and power over labor. | Source: John W. Budd and Devasheesh Bhave (2010) “The Employment Relationship,” in Adrian Wilkinson, Tom Redman, Scott Snell, and Nicolas Bacon, eds., Sage Handbook of Human Resource Management (London: Sage), pp. 51-70. |
Labor Relations Model
In addition to defining what labor relations is and determining how important it is, we want to know why labor relations programs differ. What ingredients combine to build a labor relations program? We’re not going to discuss that right now; it’s an open, on-going question, one you should keep tacked to the front of your book. Begin building a conceptual model. For instance, why are some organizations unionized and others are not?

Take a look at the AFL-CIO website, http://www.aflcio.org/aboutunions/unions, to learn about “America’s Union Movement.”

Negotiation

Negotiation is an essential component of the employee and labor relations process. A labor union is not necessary to see negotiation at work in the employment environment. Employees bargain about wages, work assignments, office space, etc. It’s key to understand that almost everything is negotiable. We see in our Lewicki reading this week that when the parties are interdependent (like employees and employers), they have to find ways to resolve their differences, whatever they might be. We see the negotiation as a dance of sorts where “the parties can influence the other’s outcomes and decisions, and their own outcomes and decisions can be influenced by the other. The mutual adjustment continues throughout the negotiation as both parties act to influence the other.” (Lewicki, p. 12)

There are two types of interdependent relationships: zero-sum and non-zero-sum. In zero-sum (distributive bargaining) situations, there can only be one winner. In contrast, in non-zero sum (integrative bargaining) situations, many people can achieve their goals and objectives. The zero-sum situation is characterized in the mainstream economics perspective where there’s one winner and a loser. The human resources management perspective best exemplifies the non-zero-sum situation which seeks to align the interests of the employer and the employees.

Negotiation is a critical component of the industrial relations perspective. Which party has the best bargaining position is determined by various factors which we will study this semester in our Lewicki text. One question we should ask ourselves as we study together this semester is: does the critical industrial relations perspective have a place in employee relations? Do we want to remove the art of negotiation from the table altogether? Is it acceptable to treat everyone the same?
Evaluating Labor Relations
A related question looks, not at the cause, but at the possible effect of the efforts. How do we know if labor relations are positive or negative? (In pragmatic terms, as an applicant, would you look for an employer that had workplace policies that promoted flexibility (efficiency), offered superior benefits (equity), and promoted programs encouraging employee participation (voice)?
We have a lot to explore this semester! Let’s have fun doing so.
Optional Readings/Resources (Not Required)
Henry S. Farber, “Nonunion Wage Rates and the Threat of Unionization,” Industrial and Labor Relations Review 58 (April 2005), pp. 335-52.
Lawrence Richards, Union-Free America: Workers and Antiunion Culture (Urbana: University of Illinois Press, 2008)
Melvyn Dubofsky and Foster Rhea Dulles, Labor in America: A History, 7th ed. (Wheeling, IL: Harlan Davidson, 2004)

Assignments
To get started, here are a few assignments. They will introduce the material and help us test the Tycho system to be sure we can connect with one another properly. Per the Course Schedule, the Week 1 assignments are due Tuesday, January 31 at 11:00 pm EST.

* If you haven’t done so already, introduce yourself in the Student Introductions conference. * Read the material listed in the Course Schedule for Week 1 (shown in the Course Content area), by the Response date listed. Post any questions or comments you have about the content of this material in the General Q&A conference room. If you don’t have a question, that is fine. * Read the Research Paper Instructions in the Course Content area. * Go to the 1Overview conference room and participate in the activity/discussion topic(s). * Go to the Research Paper Conference and post your general broad topic research paper topic in the appropriate place. (It’s broken down by last name). You will first need to read the Research Paper Instructions in the Course Content area. * Attach a Word document to your individual assignment folder. (You will receive a P (pass) or F (fail) for this assignment). In the Word document, I want you to tell me that:
a. You have read the Syllabus, Course Schedule, Read Me First and Read Me Second documents posted in the Course Content area.
b. You have arranged your calendar to meet the deadlines and agree to behave professionally in the Conference area.
c. Why you are taking this course or why you are in this degree program.
d. That you understand the grading criteria (including the late penalty) for the course as outlined in the Syllabus.
Note: Please do not post this information in the Week 1 conference area or send me an email/private message stating this. The purpose of your posting it to the individual assignment folder is to make sure that you know how to post assignments and that this particular feature is working properly for you. Please be sure to use Word.doc file format. If you have technical difficulties posting a Word.doc attachment, contact UMUC 360 Support right away so you won’t have problems when you have to submit a graded assignment. Remember: all graded assignments must be posted to your individual assignment folder.