Mini-Case The workers at Endrun Corporation are not affiliated with a union.Until recently,the workers felt they were well paid and treated fairly by the company,so they had little interest in seeking union representation.However,worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt,a no-nonsense,autocratic manager with a reputation for cutting costs.As soon as he took over,Ty fired other members of the old top management team and replaced them with people who shared his views.Together,the new management team made a series of moves that did not sit well with Endrun's workers.First,they announced changes in work procedures designed to speed up the production line.Many workers complained that the new methods cut corners and were unsafe,but management refused to listen.A few months after changing work methods,the company told workers that it was reducing their health benefits.This led to even greater worker unrest.Finally,just a few weeks ago,workers received word that the wages of all production line employees would be cut by 6 percent.Many employees felt this was the last straw,especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team.A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs,increase productivity,and improve the company's profits." Several disgruntled employees,led by Ima Striker and Boyd Cotter,now believe it is time to obtain union representation.Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize.Ima and Boyd are not intimidated by these management threats."I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant."But someone has to stop Ty Runt and his team from ruining our jobs." -If management's efforts did not disrupt everyone's work life enough the company board of directors just awarded management with increased pay while cutting the workers pay.Which of the following issues promises to be a controversial labor-management issue? A)Executive compensation B)Golden parachutes C)Equal employment pay requirements D)Comparable worth

The issue of executive compensation, specifically the salary increases and stock options given to Ty Runt and his management team, is likely to be a controversial labor-management issue as it has already caused unrest among the workers at Endrun Corporation.

Mini-Case The workers at Endrun Corporation are not affiliated with a union.Until recently,the workers felt they were well paid and treated fairly by the company,so they had little interest in seeking union representation.However,worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt,a no-nonsense,autocratic manager with a reputation for cutting costs.As soon as he took over,Ty fired other members of the old top management team and replaced them with people who shared his views.Together,the new management team made a series of moves that did not sit well with Endrun's workers.First,they announced changes in work procedures designed to speed up the production line.Many workers complained that the new methods cut corners and were unsafe,but management refused to listen.A few months after changing work methods,the company told workers that it was reducing their health benefits.This led to even greater worker unrest.Finally,just a few weeks ago,workers received word that the wages of all production line employees would be cut by 6 percent.Many employees felt this was the last straw,especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team.A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs,increase productivity,and improve the company's profits." Several disgruntled employees,led by Ima Striker and Boyd Cotter,now believe it is time to obtain union representation.Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize.Ima and Boyd are not intimidated by these management threats."I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant."But someone has to stop Ty Runt and his team from ruining our jobs." -Ty Runt has always taken a hard line against unionization efforts.Two years ago,when workers at his previous company tried to obtain union representation,the company closed down the plant and refused to let employees work until they abandoned their efforts to form a union.This management tactic is called a(n): A)management strike. B)secondary boycott. C)injunction. D)lockout.

The management tactic described is a lockout, where management prevents employees from working until they abandon their efforts to form a union.

Mini-Case The workers at Endrun Corporation are not affiliated with a union.Until recently,the workers felt they were well paid and treated fairly by the company,so they had little interest in seeking union representation.However,worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt,a no-nonsense,autocratic manager with a reputation for cutting costs.As soon as he took over,Ty fired other members of the old top management team and replaced them with people who shared his views.Together,the new management team made a series of moves that did not sit well with Endrun's workers.First,they announced changes in work procedures designed to speed up the production line.Many workers complained that the new methods cut corners and were unsafe,but management refused to listen.A few months after changing work methods,the company told workers that it was reducing their health benefits.This led to even greater worker unrest.Finally,just a few weeks ago,workers received word that the wages of all production line employees would be cut by 6 percent.Many employees felt this was the last straw,especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team.A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs,increase productivity,and improve the company's profits." Several disgruntled employees,led by Ima Striker and Boyd Cotter,now believe it is time to obtain union representation.Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize.Ima and Boyd are not intimidated by these management threats."I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant."But someone has to stop Ty Runt and his team from ruining our jobs." -If management tries to threaten or punish Ima and Boyd for their efforts to gain union representation,the two workers could ask the ____________ to investigate these unfair labor practices. A)National Labor Relations Board B)Bureau of Labor-Management Relations C)Department of Justice D)Federal Trade Commission

The National Labor Relations Board (NLRB) is responsible for enforcing the National Labor Relations Act, which prohibits employers from engaging in unfair labor practices, such as threatening or punishing employees for their union activity. Ima and Boyd could file a complaint with the NLRB if they believe that management has engaged in such behavior. The Bureau of Labor-Management Relations, Department of Justice, and Federal Trade Commission do not have jurisdiction over this matter.

Mini-Case The workers at Endrun Corporation are not affiliated with a union.Until recently,the workers felt they were well paid and treated fairly by the company,so they had little interest in seeking union representation.However,worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt,a no-nonsense,autocratic manager with a reputation for cutting costs.As soon as he took over,Ty fired other members of the old top management team and replaced them with people who shared his views.Together,the new management team made a series of moves that did not sit well with Endrun's workers.First,they announced changes in work procedures designed to speed up the production line.Many workers complained that the new methods cut corners and were unsafe,but management refused to listen.A few months after changing work methods,the company told workers that it was reducing their health benefits.This led to even greater worker unrest.Finally,just a few weeks ago,workers received word that the wages of all production line employees would be cut by 6 percent.Many employees felt this was the last straw,especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team.A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs,increase productivity,and improve the company's profits." Several disgruntled employees,led by Ima Striker and Boyd Cotter,now believe it is time to obtain union representation.Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize.Ima and Boyd are not intimidated by these management threats."I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant."But someone has to stop Ty Runt and his team from ruining our jobs." -The plant where Ima and Boyd work is located in Illinois,which does not have a right-to-work law.If the workers approve the union as their bargaining agent,Boyd wants to get the greatest union membership that is legally possible.Boyd is likely to push for a(n): A)closed shop. B)agency shop. C)union shop. D)sweatshop.

A union shop requires that all employees must join the union or pay union dues within a certain amount of time after being hired. This would give the union the greatest membership possible and allow them to have a greater bargaining power with management. The other options (closed shop and agency shop) are not feasible in Illinois because of the lack of a right-to-work law. A sweatshop is not a type of union representation.

Quiz 12: Dealing With Employee-Management Issues and Relationships

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