Non-Economic Bargaining Issue – Restrictive Work Practices

Non-Economic Bargaining Issue – Restrictive Work Practices

What are the factors that influence a firm’s ability to pay?

One of the factors that the ability to pay is the prevailing wage level. Organizations are expected to adjust their pay based on the wage level in the job market. An organization may therefore be unable to pay its employees if the wage level exceeds the budget set aside for wages and salaries. The second factor is the union’s influence. In many organizations, employees rely on unions to negotiate for better pay. An organization, therefore, has to meet the wage requirements set by the unions to avoid stories and go slow which may affect organizational performance and productivity.

Which characteristics of grade structures must be negotiated?

When using grade structures, it is vital to negotiate the number of grades in the structure, differences in pay grades, the jobs to be assigned to specific grades, and the maximum and minimum pay rates an employee could earn in every grade. These characteristics play a vital role in the acceptance of the use of grade structures among employees by influencing their perspective on the fairness of the structures. Do you need urgent assignment help ? Get in touch with us at eminencepapers.com.

List the rules of the Employee Retirement Income Security Act (ERISA) that employers with pension plans must comply with.

The ERISA requires employers with pension plans to allow employees aged 21 years and above to participate in the pension plans. The employee’s accrued benefits are owned after five years as the employee accrues service. If the employee quits after five years, the employer should allow them to transfer the funds to an IRA without paying tax (Wooten, 2005). If the employer has a defined benefit plan, an annual contribution must be made covering the expected future retirement plan. The contribution should be actuarially based. The plan’s assets that can be invested in the employer’s bonds or stock should not exceed 10%(Wooten, 2005). If a company becomes bankrupt, it may, under certain circumstances, revoke its pension obligations, although its previous contributions would remain as part of the plan.

How do unions typically affect the pay systems for those they represent?

Unions negotiate for better pay for their members, hence forcing employers to adjust their pay system to avoid creating issues with the unions that could affect the organization’s performance, especially when unions influence employees to take action through strikes and go-slows (Fichtenbaum, 2011). Unions also reduce wage inequality by raising wages more for middle and low-wage workers.

Why was the Fair Labor Standards Act enacted?

The Fair Labor Standards Act was enacted to protect workers from abuses that were prevalent during the Great Depression and Industrial Revolution. Companies were paying workers small wages, and workers were required to work for long hours. Working conditions were particularly oppressive for new immigrants who had no choice but to complete their work to provide for their families. According to Levesque (2018), the Fair Labor Standards Act focused on creating better working conditions by mandating that workers would be paid a living wage, creating new laws on child labor, and mandating that workers would be paid for overtime work.

Why are “Grievance Procedures” a high-priority bargaining issue for unions? Explain with an example.

Grievance Procedures are considered a high-priority bargaining issue for unions because they give employees the power to object to unilateral management action during the agreement term. Therefore, an employer’s actions can be reviewed when a grievance occurs, thus allowing the employee to get justice.

What is a “closed shop?”

Closed shop refers to the situation where employers only hire union members. This approach is common in the entertainment, construction, and maritime sectors, where most employers have short-term demands for specific occupations.

What is meant by “union dues check-off,” and how does it benefit all parties?

Union dues check-off is included in contracts whereby employers deduct union dues from a union member’s pay and directly forward the money to the union. The process is aimed at benefiting all the parties by minimizing disruptions in the workplace during the collection of union pay and protecting employees from disciplinary action that the union may take for failing to pay dues. It also facilitates the smooth flow of cash flow for the financial operations of local unions

References

Fichtenbaum, R. (2011). Do unions affect labor’s share of income: Evidence using panel data. American Journal of Economics and Sociology, 70(3), 784-810. https://doi.org/10.1111/j.1536-7150.2011.00792.x

Levesque, R. J. (2018). Fair Labor Standards Act. Encyclopedia of Adolescence, 1293-1294. https://doi.org/10.1007/978-3-319-33228-4_725

Wooten, J. (2005). The Employee Retirement Income Security Act of 1974. https://doi.org/10.1525/9780520931398

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This quiz contains 8 short answer questions on topics from Chapters 9 and 10 of your text. Your answers should be 1- 3 paragraphs long and will be worth a total of 100 points.

In order to avoid timing out when you take the quiz, prepare answers to the following essay questions in a document ahead of time.

What are the factors that influence a firm’s ability to pay?
Which characteristics of grade structures must be negotiated?
List the rules of the Employee Retirement Income Security Act (ERISA) that employers with pension plans must comply with.
How do unions typically affect the pay systems for those they represent?
Why was the Fair Labor Standards Act enacted?
Why are “Grievance Procedures” a high-priority bargaining issue for unions? Explain with an example.
What is a “closed shop?”
What is meant by “union dues check-off”, and how does it benefit all parties?