MGT 3500 Ch. 7

In the U.S., collective bargaining agreements are legally binding contracts.
In the U.S., the typical duration of a collective bargaining agreement is 1 year.
The process of collective bargaining in U.S. labor relations has the goal of producing a legally binding, written contract that specifies wages and many other terms of employment.
Union bargaining committees are usually appointed by the national labor federation.
To determine its priorities in negotiations, a labor union will usually conduct a survey of its members to identify common goals and concerns.
Creating a strike contingency plan is an important part of preparing for collective bargaining.
Sixty days before the existing contract expires, the parties to a collective bargaining agreement must provide notification to the National Labor Relations Board that they intend to negotiate a new contract.
When unions typically represent a limited group of employees in a single workplace, bargaining is said to be decentralized.
Unions generally prefer more decentralized bargaining structures because this allows them to exercise greater power over the employer.
Since the 1970’s, the bargaining structure in the U.S. has become more centralized.
Decentralized bargaining allows a union to be more responsive to the local needs of its constituents.
Decentralized bargaining may make unions more responsive but it also can decrease labor’s strike leverage.
Going out on strike is the most important way for unions to make it costly for an employer to disagree with him.
In the public sector, labor is often argued to be too powerful because as the sole provider of essential services it can exercise greater control over the market.
The fact that public sector goods and services are not bought and sold in a competitive labor market makes unionization ineffective.
Unionization in the public sector must be treated differently than unionization in the private sector because public sector goods and services are often essential to public safety and health and are not traded in a competitive market.
The research evidence supports the criticism that public sector unions have virtually unlimited bargaining power.
When exchanging proposals for a new contract, labor always present its demands first.
Once negotiations begin, the parties will only meet together as a group. No individual side discussions between negotiators are allowed to occur.
Because the bargaining process is often visible to outside parties (negotiators’ constituents), some of what occurs at the bargaining table is more for show than necessary, or even healthy, for the parties to reach an agreement.
The process of estimating the costs of proposals in negotiations is called contract costing.
The outcome of collective bargaining is a unilateral change in wages, hours and working conditions.
When it comes to mandatory bargaining issues, the employer can only make unilateral changes once it has fulfilled its duty to bargain with the union in good faith.
As long as the employer has bargained in good faith, once an impasse in negotiations has been reached it is within its legal rights to make unilateral changes by implementing whatever terms it wants.
Direct dealing occurs when an employer tries to do an “end around” the union by talking to the employees and getting their input on issues related to negotiations without going through the union first.
Employers are legally allowed to survey their employees about their opinions on collective bargaining issues during the negotiation period.
The only time an employer is required to show the union financial information is if it claims that it is unable to afford one of the union’s bargaining proposals.
Upon request, an employer has an obligation to provide information such as job evaluation data, health and safety statistics, and wage information to the union if it is necessary for representing the workers effectively.
During recent negotiations between Bosben Textiles and its employees, the employer asserts that he will not give a 3% pay increase because it would put him at a competitive disadvantage. When the union requests to see financial data backing this, Bosben must comply.
Thibeaux Printing is in negotiations with its 59 press operators. Though Thibeaux is meeting regularly with the union, it eventually becomes clear that they have no interest in moving on their offer and are simply doing the bare minimum to appear as if serious bargaining is going on. This is an example of illegal bad faith bargaining.
One of the main goals of U.S. labor relations law is to give workers the freedom to negotiate individual contracts with their employers.
Mandatory bargaining items include wages, hours and the terms and conditions of employment.
A union and employer can agree to terms that directly contradict existing legal requirements as long as they are both willing parties to the agreement.
Employers and unions can bargain over permissive items if they choose, but since they are outside the boundaries of the NLRA, the NLRB cannot order bargaining on these issues.
If a union proposes changes to a permissive bargaining issue, the employer must show a good faith effort to consider the proposal.
One of the roles of the NLRB is to determine whether a particular issue is mandatory or permissive for bargaining when the parties disagree as to whether they must negotiate it.
While management must negotiate the effects on workers of a decision to close a plant, the decision to close the plant itself is not a mandatory bargaining issue.
Mainstream industrial relations views the employment relationship as one where the parties have a mixture of conflicting interests as well as common goals.
Distributive bargaining considers negotiations as a zero sum game.
A zero sum game is one in which the parties view conflict as a fixed pie – where one party wins, the other must lose.
When employees determine that they would prefer to walk away and find another job rather than accept a given set of terms from the employer, they have identified their BATNA.
Parties are motivated to bargain when they believe that the BATNA will be better than any negotiated settlement might be.
The BATNA can be thought of as a party’s resistance point or the point at which they would prefer to walk away from negotiations rather than take the terms the other party is offering.
Pressure tactics in negotiations are designed to encourage the other party to make concessions and speed up the negotiating process.
Hardball negotiation tactics run the risk of doing more harm than good and may be considered unethical.
The philosophy of integrative bargaining is that both parties will be better off if they can capitalize on their common interests in reaching an agreement, rather than focusing on their differences.
Unions are under no legal obligation to provide an employer with information that is relevant to negotiations.
Integrative bargaining is sometimes referred to as a win-lose bargaining strategy.
Because collective bargaining is a mixed motive conflict, it is recommended that the parties engage first in distributive bargaining to see what they can win and then followed this by integrative bargaining for those issues that they are not likely to win.
The tendency to assume that negotiations involve only conflicts of interest, it can be characterized as a mythical fixed-pie bias.
The tendency to assume collective bargaining is a zero sum game is deeply engrained in U.S. labor relations.
Modified integrative bargaining is a strategy in which the parties begin with integrative bargaining and then turn to distributive bargaining for any issues where they were not able to find common ground.
One of the challenges in adopting a distributive bargaining strategy is that there are strong social norms in place for the parties to act in an integrative way.
The parties’ attempts to manage their relationship in negotiations by focusing on building trust and respect for one another is characteristic of attitudinal structuring.
Attitudinal structuring refers only to the intentional, planned actions by parties to manage their relationship.
The need for intraorganizational bargaining results from the presence of diverse interests within the constituency of a negotiator.
Intraorganizational bargaining is generally not seen in unions because the members and union officials are very good at hiding their different agendas.
Collective bargaining agreements made between labor’s negotiators and the employer’s negotiators are tentative and subject to rank and file approval.
Management negotiators are not usually given the authority to agree to a contract settlement in negotiations.
Public sector bargaining laws are uniformly determined at the federal level (i.e., the federal government makes the laws that govern public sector bargaining.)
When it comes to collective bargaining laws, states vary widely in the degree of protection they provide to workers.
One key difference in collective bargaining occurring in the public sector as compared to the private sector is that the management structure of public sector agencies are more hierarchical than in the private sector.
Concession bargaining, while common in the 1980’s, rarely occurs today.
It can be difficult to change the culture of negotiations from distributive to integrative bargaining because of the strong traditions of adversarial bargaining that exists in the U.S.
Fractional bargaining is a term used to describe the bargaining that occurs on a daily basis between management and employees over conflicts that arise in the workplace.
Training programs have proven to be ineffective in changing the bargaining behavior of management and unions.
The process of producing a legally binding, written contract that specifies wages, benefits, layoff policies, grievance procedures, etc. is called:
A. Authorization campaigning
B. Attitudinal structuring
C. Direct dealing
D. Collective bargaining
Which of the following is not a part of the time line of the bargaining (negotiation) process?
A. Exchange proposals
B. Rights arbitration in case of impasse
C. Conduct benchmarking
D. Assign a bargaining team
Which of the following is not a critical piece of information for the bargaining or negotiation process?
B. Benchmarking information
C. Knowledge of the opponent’s interests
D. Rules of evidentiary procedure
60 days before contract negotiations are set to begin, the parties provide the Federal Mediation and Conciliation Service:
A. Authorization cards
B. Petition for election
C. Notice of intent to strike or lockout
D. Notice of intent to bargain
The main reason for the trend toward decentralization of bargaining in the U.S. is:
A. Employers have been able to use their superior bargaining leverage to force decentralization.
B. Unions’ preferences for more control and rigidity in the bargaining process.
C. Employee desires for less demanding work.
D. Employee desires for less responsibility associated with employee involvement
When unions negotiate contracts with one company at a time, each modeling their settlements after prior contracts negotiated in the same industry or covering similar jobs, it is known as:
A. Contract modeling
B. Pattern bargaining
C. Concession bargaining
D. Hardball tactics
The sequential bargaining process used in pattern bargaining is an attempt to:
A. Decentralize bargaining.
B. Undermine bargaining.
C. Centralize bargaining.
D. Redefine bargaining units.
Since the 1980s the use of pattern bargaining has:
A. Increased.
B. Decreased.
C. Remained stable.
D. Become obsolete.
Which of the following is not a consequence of bargaining centralization?
A. An increase in the number of issues brought to the bargaining table
B. Separation between the negotiators and their constituents (the people they represent)
C. Improved ability to tailor contracts to local conditions
D. Decreased level of whipsawing
When determining the right bargaining structure for a given set of negotiations, labor and management negotiators face a trade off between:
A. Equity and efficiency
B. Responsiveness and employee voice
C. Power and political influence
D. Power and responsiveness to local needs
Bargaining power can best be described as:
A. The ability to secure another’s agreement on your own terms.
B. The ability of an arbitrator to dictate the final terms of a bargaining contract.
C. The NLRB’s ability to require parties to bargain in good faith.
D. The ability of employees to decertify a union if they are dissatisfied with its performance.
Relative bargaining power is closely related to:
A. The parties’ resistance points.
B. Management’s strike leverage.
C. The union’s strike leverage.
D. The parties’ willingness to compromise.
A union is said to have strong strike leverage when:
A. Conditions are such that a strike would be costless to the employer.
B. Conditions are such that a strike would be costly to the employer.
C. The union has taken its members out on strike.
D. The employer is in a strong bargaining position forcing the union to strike.
The bargaining environment is defined as:
A. The diverse set of external influences on labor and management as they bargain a contract
B. The degree of bargaining power the parties have in negotiations
C. The ability of the parties to establish their BATNA’s
D. The environmental impact of any final contract terms
Which of the following is not a key difference in the bargaining environment of the public and private sectors?
A. In the public sector, essential services cannot be easily outsourced and must be provided by the government.
B. Public services are not bought and sold in economic markets.
C. Politics plays a more important role in the public sector than in the private sector.
D. The labor market does not affect the public sector as much as it does the private sector.
When it comes to strikes, most public sector workers are:
A. Able to strike legally, without loss of benefits.
B. Able to strike but must take economic losses.
C. Prohibited from striking.
D. Allowed to strike only over certain issues like management abuse.
In negotiations, once both parties have presented their initial proposals, it is common for them to start bargaining with the:
A. Hardest issues first
B. Easiest issues first
C. Employer’s issues first
D. Union’s issues first
Labor negotiations are like a theatrical play in all of the following ways except:
A. The lead negotiators are often like actors putting on a show for their audience.
B. Experienced lead negotiators often meet with each other in private or “backstage”.
C. What happens “on stage” at the bargaining table has no real effect on the relationship between union and management.
D. The bargaining table and setting for bargaining is like a stage.
When estimating the cost of a contract proposal, which of the following is not likely to be an important consideration?
A. Future staffing levels
B. Employee seniority
C. Opinions of union members
D. Labor market trends
The binders used to create a complete record of the negotiation, including agendas, proposals, cost estimates, and supporting documents is called the:
A. Arbitration decision
B. Bargaining book
C. Supplementary contract document
D. Final offer package
Which of the following is not a form of bad faith bargaining:
A. Forcing tactics
B. Direct dealing
C. Surface bargaining
D. Unilateral change
Which of the following is not an example of bad faith bargaining?
A. Bilateral bargaining
B. Unilateral change
C. Direct dealing
D. Surface bargaining
A unilateral change as it pertains to bad faith bargaining occurs when:
A. The union agrees to a change in wages, benefits or other terms of employment without first consulting the employees
B. The government imposes a settlement on the employer and the union because they are unable to reach an agreement
C. An employer changes wages, benefits or other terms of employment without first bargaining with the union
D. An employer changes wages, benefits or other terms of employment without first consulting the employees
A ____________________ change is when the employer changes wages, benefits, or other term and conditions of employment without bargaining with the union.
A. Multilateral
B. Unilateral
C. Bilateral
D. Prolateral
Which of the following is not information that the employer must provide unconditionally to the union upon request?
A. Current wage information for employees
B. Standards in place for making merit pay decisions
C. Company health and safety statistics
D. Corporate financial information
Pattern bargaining occurs when:
A. Employers within an industry decide ahead of time what they will all settle at and then negotiate the same or similar terms with the unions.
B. Unions from one industry use the contracts from another industry as a guide for where they should settle in negotiations.
C. An employer and union settle with essentially the same terms year after year.
D. A union negotiates with one company and then uses that settlement as a target for all other negotiations in the industry.
Which of the following is most likely to be considered an example of surface bargaining?
A. An employer, unsatisfied with the contract terms being offered by the union, negotiates directly with an influential employee who is not on the negotiating team in the hopes that she will convince other employees to agree to the terms.
B. An employer refuses to give the union financial information it has requested after telling the union that their demands are unreasonable in light of the company’s tentative financial position.
C. An employer uses delay tactics such as scheduling conflicts, withdrawing items that were already settled, and delaying the release of information important to negotiations.
D. An employer decides to implement the terms of their final offer in the hopes that employees will like the contract and pressure the union to settle.
In the 1960’s, Lemuel Boulware determined General Electric’s desired contract based on a careful financial analysis and a survey of the employees. He then crafted a “take it or leave it” proposal, presented it to the union, and refused to engage in discussions over the contract proposal. This is best described as an extreme example of:
A. Surface bargaining.
B. Direct dealing.
C. Refusal to provide information to the union.
D. Unilateral changes.
The NLRB’s responsibility to distinguish between issues that are mandatory, permissive and illegal bargaining items is called:
A. A Gissel bargaining order
B. The Borg-Warner doctrine
C. The Steelworkers Trilogy doctrine
D. Bargaining issue determination
Which of the following is a legal bargaining item?
A. Union representation on the board of directors
B. Closed shop provisions
C. Policies that involve racial discrimination
D. Payment of wages below the legal minimum
Which of the following is not considered a “permissive” bargaining issue:
A. Benefits for retirees
B. Bonus plans
C. Drug and alcohol screening of job applicants
D. Decisions to close a plant
The four bargaining subprocesses identified by Walton and McKersie include all of the following except:
A. Distributive bargaining
B. Integrative bargaining
C. Concession bargaining
D. Attitudinal structuring
The employment relationship is labeled a mixed motive because:
A. Management wants to make a profit at the same time they want to be fair to employees
B. Unions want to be profitable at the same time they need to represent employees
C. It is a mixture of conflicts of interests and shared opportunities for the employer-employee-union relationship
D. Employees are often mixed about who they support, the union or management
Which of the subprocesses of bargaining is most concerned with the fact that the employer-employee-union relationship is a long term, ongoing relationship?
A. Distributive bargaining
B. Integrative bargaining
C. Attitudinal structuring
D. Intraorganizational bargaining
Which of the following bargaining issues is most likely to be viewed as a zero sum game?
A. Safety standards
B. Wage increases
C. Random drug testing procedures
D. Promotion standards
In negotiating a contract, the terms and conditions that are considered minimally acceptable to either side are determined by the:
A. Contract zone.
C. Strike zone.
D. Target settlement.
The parties are most likely to be motivated to bargain when:
A. A negotiated settlement will be better than the parties’ BATNAs.
B. The union’s resistance point is substantially higher than management’s resistance point.
C. Management’s resistance point is the same as the union’s resistance.
D. The BATNA is far better than a negotiated settlement.
In distributive bargaining, each party’s ____________________ is often the other side’s resistance point.
A. negative settlement range
C. counter offer
D. target settlement
When one party’s target settlement is the other party’s resistance point, they are likely to be:
A. Engaged in integrative bargaining.
B. Engaged in distributive bargaining.
C. Unable to reach an agreement.
D. Quick to settle on a contract.
In a recent contract negotiation over the issue of wage increases, the union’s resistance point was 2.5% and their target point was 3%. Management’s resistance point was 3% and their target point was 2.75%. The size of the settlement range is:
A. .25%
B. .75%
C. .50%
D. Cannot be calculated from this example
If the union’s resistance point is 3% and their target is 5%, while the employer’s resistance point is 2.5% with a target of 0:
A. There is no contract zone.
B. There is a large contract zone.
C. The contract zone is likely to change.
D. There is a small contract zone.
Bluffing is a bargaining tactic that is most likely used in:
A. An unfair labor practice
B. Distributive bargaining
C. Attitudinal structuring
D. Intraorganizational bargaining
All of the following could be another label for distributive bargaining except:
A. Adversarial bargaining
B. Hard bargaining
C. Traditional bargaining
D. Interest-based bargaining
All of the following could be another label for integrative bargaining except:
A. Win-win bargaining
B. Mutual gains bargaining
C. Interest-based bargaining
D. Traditional bargaining
A key principle of integrative bargaining is that the parties should focus on ___________________ in negotiations.
A. Self interest
B. Common interests
C. Positions
D. Winning
As it pertains to bad faith bargaining, direct dealing occurs when:
A. An employer goes around the union to discuss issues directly with the employees in a way that undermines the union’s ability to bargain.
B. A union discusses issues that have been presented at the bargaining table with the employees, without the employer’s permission.
C. The union and employer negotiate directly with each other over wages, hours, and other conditions of employment.
D. An arbitrator delivers a final and binding arbitration decision.
Which of the following is not a step in the integrative bargaining process?
A. Create standards for decision making
B. Identify issues that need to be discussed
C. Present a list of demands to the other party
D. Understand each side’s fundamental interests
Modified integrative bargaining is a term used to describe a process of negotiations where:
A. integrative bargaining is tried first and, if it fails, distributive bargaining takes place
B. distributive bargaining occurs first and, if it fails, integrative bargaining takes place
C. one or both parties says they will try integrative bargaining but don’t really apply the principles
D. integrative bargaining tactics are used simultaneously with distributive bargaining tactics
____________________ pertains to concerns of managing the labor-management relationship, such as creating trust.
A. Distributive bargaining
B. Attitudinal structuring
C. Direct dealing
D. Unilateral change
The resistance points in contract negotiations are determined by:
A. The parties’ desired outcomes.
B. The parties’ target point.
C. The parties’ BATNAs.
D. The contract zone.
Holding public rallies, boycotts, and bringing negative publicity to the other party in negotiations is considered a(n):
A. Unfair labor practice.
B. Bad faith bargaining tactic.
C. Hardball tactic.
D. Pressure tactic.
The goal of integrative bargaining is :
A. Integrate the needs of the union and the needs of the employees to get the best deal possible.
B. Create a positive setting for negotiations.
C. Push the opposing party as close to their resistance point as possible.
D. Unify the common interests of management and the employees in a way that makes everyone better off than before.
Once a contract has been settled, in most cases it must be approved by _______________________ before it can go into effect.
A. The National Labor Relations Board
B. The company Board of Directors
C. The rank and file union members
D. All of the above
Laws that require public sector negotiations to take place in public are called:
A. Public sector bargaining laws
B. Sunshine laws
C. Full disclosure laws
D. Public record laws
The wages and benefits of federal government employees are determined:
A. By civil service rules
B. Through collective bargaining
C. By Presidential directive
D. By the Director of the Office of Personnel Management
Multilateral bargaining occurs when:
A. Parties must negotiate with members of their own constituency
B. One union and one employer negotiate together.
C. Negotiations occur between multiple parties such as union, management, government officials, and workers
D. Bargaining occurs at different stages of the negotiation process
Bargaining between unions and corporations or public sector agencies, rather than daily interactions or bargaining between employees and their managers, can be called:
A. Fractional bargaining
B. Employee bargaining
C. Interest-based bargaining
D. Institutional bargaining
Intraorganizational bargaining is more visible on the union’s side because:
A. Unions are essentially political institutions whose agendas are determined by many constituents.
B. Unions are essentially economic institutions whose interest is in self enrichment.
C. Management does not have constituents with competing interests.
D. Management is better at hiding the competing interests of their constituents.
An aggressive distributive bargaining plan that intends to push labor unions into making significant concessions at the bargaining table can best be described as a(n):
A. Hardball tactic.
B. Forcing strategy.
C. Zero-sum bargaining game.
D. Unfair labor practice.