Collective Bargaining and Labor Relations
Chapter Summary
This chapter provides an overview of private-sector labor-management relations in the United States, with brief attention to public-sector differences and international labor relations. After a model of labor-management relations and a context for current relationships are provided, various aspects of the process of collective bargaining are described. Cooperative forms of labor-management relations are then presented. Finally, an explanation is given for how changes in competitive challenges are influencing labor-management interactions.
Learning Objectives
After studying this chapter, the student should be able to:
1. Describe what is meant by collective bargaining and labor relations.
2. Identify the labor relations goals of management, labor unions, and society.
3. Explain the legal environment’s impact on labor relations.
4. Describe the major labor-management interactions: organizing, contract negotiations, and contract administration.
5. Describe the new, less adversarial approaches to labor-management relations.
6. Explain how changes in competitive challenges (e.g., product-market competition and globalization) are influencing labor-management interactions.
7. Explain how labor relations in the public sector differ from labor relations in the private sector.
Extended Chapter Outline
Note: Key terms appear in boldface and are listed in the “Chapter Vocabulary” section.
Opening Vignette: Labor Relations and the Bottom Line
The main issue in the 54-day strike by the United Auto Workers (UAW) at two General Motors parts plants was job security and whether GM would invest in plants in the United States or continue its effort to cut U.S. employment and shift production overseas to reduce labor costs. The strike postponed all of GM’s plant operations, which caused annual earnings and market share. GM plans to spin off a new