Reference no: EM13952435

Part 1- Why do employees join unions? What are the advantages and disadvantages of being a union member?

Part 2- Read short situation and answer question-

1. The "Anti-Walmart"

It's not easy competing with Walmart's low prices, but Walmart Stores' Sam's Club is actually second in sales to Costco. How does Costco stay ahead? In part with "strong labor relations, low employee turnover and liberal benefits." For example, Costco pays about 90% of the health insurance costs of its over 90,000 domestic employees.9 And its relations with labor unions are comparatively gentle. For example, when California grocery store workers picketed several chains a few years ago, "Costco Wholesale Corp. avoided the fray, quietly renegotiating a separate contract with its union employees there." The new contract boosted Costco workers' wages and the firm's contribution to their pension plans.

Costco's HR strategy is to fend off Walmart's low wages and labor costs by eliciting higher productivity and better service from its employees. The strategy seems to be working. Costco's sales per employee are about $500,000 a year versus $340,000 at Sam's Club. Turnover is far below the retail industry average.I9 Having a positive labor relations strategy that supports Costco's overall aim of boosting profits through bet¬ter productivity and service is working for Costco.

Discussion Question: If supportive labor relations works so well for Costco, why do you think Walmart doesn't use it too?

2. France Comes to the Workers' Aid

Employers planning to expand abroad should consider the recent experience of drug maker Sanofi SA, in France. Because of the relatively high cost of running its research facility in southwestern France, Sanofi told its researchers there it intended to close their facility.' Employees began staging weekly protests, supported by the French government, which opposes profitable companies slashing jobs. After 9 months, the com¬pany was still waiting for a government report on the situation so it could finish negotiating with its unions and try to get some of them other jobs elsewhere. As one Sanofi manager said, "In France, the politics, the labor laws are extremely different than in any other regions.... It means that for sites like Toulouse ... anything you want to do differently gets to be a confrontational issue."'

Discussion Question: With government policies like this, how do you think French companies remain competitive with those, say, in the United States?

3. How to Handle a Grievance Situation

Grievances cost money. in terms of lost work time, productivity, and (possibly) arbitrators' fees. One expert has developed a list of supervisor do's and don'ts as useful guides in handling grievances. Some critical ones include:

Do:
1. Investigate and handle each case as though it may eventually result in arbitration.
2. Talk with the employee about his or her grievance; give the person a full hearing.
3. Require the union to identify specific contractual provisions allegedly violated.
4. Comply with the contractual time limits for handling the grievance.
5. Visit the work area of the grievance.
6. Determine whether there were any witnesses.
7. Examine the grievant's personnel record.
8. Fully examine prior grievance records.
9. Treat the union representative as your equal.
10. Hold your grievance discussions privately.
11. Fully inform your own supervisor of grievance matters.

Don't:
1. Discuss the case with the union steward alone-the grievant should be there.
2. Make arrangements with individual employees that are inconsistent with the labor agreement.
3. Hold back the remedy it the company is wrong.
4. Admit to the binding effect of a past practice.
5. Relinquish to the union your rights as a manager.
6. Settle grievances based on what is "fair." Instead, stick to the labor agreement.
7. Bargain over items not covered by the contract.
8. Treat as subject to arbitration claims demanding the discipline or discharge of managers.
9. Give long written grievance answers.
10. Trade a grievance settlement for a grievance withdrawal.
11. Deny grievances because "your hands have been tied by management."
12. Agree to informal amendments in the contract.

Discussion Question- Write a 30-word guide that summarizes the essence of these do's and don'ts.