Английский язык для экономистов - Малюга Е.Н.
ISBN 5-469-00341-8
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2. How do unions influence the economy?
3. Do they increase or diminish economic efficiency?
B, Pre-reading exercises
B.l. Skim the text and give its key idea.
B.2. Scan the text for the following information.
1. What is collective bargaining?
2. Collective bargaining agreements typically cover several topics. What are they?
3. When does collective bargaining on a new contract begin?
C Reading
C.l. Read the text and answer the questions.
1. How do closed and open shops differ?
2. What contract issues are addressed in the bargaining process?
3. Why have workers become "job conscious"?
4. How does the bargaining process occur?
Collective Bargaining
C. R. McConnellt S. L. Brue
Despite the decline of unionism, collective bargaining — the negotiation of labor contracts — remains an important feature of labor-management relations. The goal of collective bargaining is to establish a "work agreement" between the firm and the union. Unit 1. Labour Relations
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The Work Agreement
Collective bargaining agreements (contracts) assume many forms. Some contracts are brief, taking up only 2 or 3 pages; others are lengthy and highly detailed, requiring 200 or 300 pages of print. Some agreements involve only a local union and a single plant; others set wages, hours, and working conditions for entire industries.
Typically, however, collective bargaining agreements cover several topics.
Union Status and Managerial Prerogatives. As for union status, the closed shop affords the union the greatest security. In a closed shop, a worker must be (or become) a member of the union before being hired. Under Federal labor law, such shops are illegal in industries other than transportation and construction. In contrast, a union shop permits the employer to hire nonunion workers but provides that these workers must join the union within a specified period, say, 30 days, or relinquish their jobs. An agency shop requires nonunion workers to pay union dues or donate an equivalent amount to charityi Union and agency s~hops are legal, except in the 20 states which expressly prohibit them through so-called right-to-work laws. In the open shop, an employer may hire union or nonunion workers. Those who are nonunion are not obligated to join the union or pay union dues; they may continue on their jobs indefinitely as nonunion workers. Nevertheless, the wage, hours, and working conditions set forth in the work agreement apply to the nonunion workers as well as the union workers.
The management side of the union-status issue is managerial prerogatives. Most work agreements contain clauses outlining certain decisions reserved solely for management. These prerogatives usually cover such matters as size and location of plants, products to be manufactured, types of equipment and materials to be used in production and in production scheduling.
Wages and Hours. The focal point of any bargaining agreement is wages and hours. Both labor and management press for the advantage in wage bargaining. The arguments which unions use most frequently in demanding (and by the firm in resisting) wage boosts are (1) "what others are getting," (2) the employer s ability to pay, based on its profitability, (3) increases in the cost of living, and (4) incre- 14
Английский язык для экономистов
ases in labor productivity. In some cases, unions achieve success in tying wages to the cost of living through cost-of-living adjustment (COLA) clauses.
Hours of work, voluntary versus mandatory overtime, holiday and vacation provisions, profit sharing, and fringe benefils - health plans and pension benefits — are other contract issues which must be addressed in the bargaining process.
Seniority and Job Protection. The uncertainly of employment in a market economy, along wich the fear of antiunion discrimination on the pirt of employers, has made workers and their unions "job conscious." The explicit and detailed provisions covering job opportunities which most agreements contain reflect this concern. Unions stress seniority (length of service) as the basis for worker promotion and for layoff and recall. I hey want the worker with the longest continuous service to have the first chance at relevant promotions, be the last one laid off, and be the first one recalled from layoff.
In recent years, unions have become increasingly sensitive to losingjobs to nonunion subcontractors and to overseas workers. Unions sometimes seek limits on the firm's ability to subcontract out work or to relocate production facilities overseas.
Grievance Procedures. Even the most detailed and comprehensive work agreement cannot spell out all the specific issues and problems which might occur during its life. For example, suppose that Nelson gets reassigned to a kss pleasant job. Was this reassignment for legitimate business reasons or, as Nelson suspects, because of a personality conflict with a particular manager? Labor contracts contain gnevance procedures to resolve such matters.
