ADM 477 Indiana Wesleyan University Exercising Collective Bargaining Paper

ADM 477: Business Law

I can provide book link.

Getting Started

Smitty’s Tuff Trucks employs 350 United Auto Workers and is subject to a collective bargaining agreement with the union. The company has struggled in recent years to turn a profit, but things began to look promising this year. Because of the popularity of its trucks, the company’s production more than tripled during the busy season. Smitty tried to keep up with demand by adding extra shifts, but it was not enough. The company was unable to find sufficiently skilled welders to work the extra plant shifts. The worker shortage caused major backlogs of orders and cost the company several lucrative contracts. To prevent further losses, Smitty’s subcontracted production of its truck trailers to ACME, Inc., a non-union shop.

The union filed an unfair labor practice complaint immediately with the National Labor Relations Board. It argued the collective bargaining agreement prohibited Smitty’s from subcontracting labor without union negotiation. Is the union right?

It is unlikely that the union will win its argument. To examine whether or not Smitty’s actions violated the terms of the collective bargaining agreement, first we must examine the context of the situation. The important factors are:

Smitty’s subcontracted its non-union labor force out of necessity. There were not enough skilled union welders available to meet demand.

Smitty’s had suffered major economic losses as a result of the labor shortage. Time was of the essence, so the company arguably had to act quickly to sustain its economic stability.

Smitty’s actions did not amount to an attempt to circumvent its collective bargaining agreement. Its goal was not to replace union workers with non-union workers. It simply needed labor to meet its production demands.

In this scenario, it is unlikely that a company in Smitty’s situation would be required to engage in collective bargaining before subcontracting labor for its workforce. Smitty’s was making a good-faith effort to address business demands and avoid economic hardship due to the lack of skilled labor.

Upon successful completion of the course material, you will be able to:

Analyze the various conflict resolution remedies available to labor and management during the collective bargaining process.

Resources

Textbook: The Legal Environment of Business

Video & Transcript:

Fast Food Workers Walk Out, Demanding Higher Pay

Background Information

Collective bargaining is a process in which a union and management negotiate over the terms and conditions of employment. Labor unions represent the interests of workers in matters such as compensation, benefits, and due process for disciplined workers. The collective bargaining agreement is a legally binding contract between the union and management. It details the terms and conditions of the employment relationship.

Collective bargaining negotiations can be very contentious. For that reason, alternative dispute resolution may be necessary to resolve conflicts. Mediation utilizes a neutral third party to facilitate talks between the parties. Mediation is considered to be most effective because the parties, not the mediator, devise an agreed upon solution to resolve the dispute. Because the parties have the ultimate say in how the conflict is resolved, they are more likely to abide by the terms and conditions of their agreement.

Arbitration is a form of alternative dispute resolution that involves an adversarial proceeding. Witnesses may be called to testify and also can be cross-examined. The arbitrator acts as a judge and renders a binding decision by which the parties must abide. An arbitrator’s decision can be invalidated only if the arbitrator was unduly biased or his/her ruling was unreasonable or in violation of the law.

Instructions

Review the rubric to make sure you understand the criteria for earning your grade.

In your textbook, The Legal Environment of Business, read Chapter 15, “Employment and Labor Regulations.”

View the video “Fast Food Workers Walk Out, Demanding Higher Pay.”

Transcript of the video

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Research a real-world example of the exercise of collective bargaining rights of public employees (for example, public school teachers asserting collective bargaining rights, such as the right to unionize).

In a one- to two-page paper, summarize the results of your research, and give your reasoned opinion as to whether public employees should have the right to exercise collective bargaining rights (such as the right to unionize).

The one- to two-page paper should contain 250-500 words.

Follow APA formatting, including using 12-point font.

Correct use of citations and references is required.

When you have completed your assignment, save a copy for yourself and submit a copy to your instructor using the Assignment submission page by the end of the workshop.