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Hrmg 333: Employee Relations Question Paper
Hrmg 333: Employee Relations
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions
The give back: A Case of Union Busting
Three years ago, Local 974 of the United Tire workers of America made significant contract concessions to the North American Tire plant in Bailey, Georgia. The union concessions were made for the company’s economic survival and for the plant to remain open. Now, riding the tide of one of the longest economic booms in U.S. history, North American Tire and its union were back at the bargaining table. This time, though, the union was not looking to give back but to receive. The union wanted not only to get back what was given up in previous negotiations, but also to get their share of the economic prosperity pie that past contract concessions had made possible. However, the company had other goals for negotiations.
The company’s initial proposals did not satisfy the union’s negotiating team, a strike resulted and both sides indicated their resolve was strong. While picket lines and demonstrations at the plant were rather uneventful, a war of words was fought in the media. On the one hand, full page ads appeared in the local papers condemning the company for going back on their word to make up for the give backs of the past. On the other hand, the company claimed it needed to maintain its competitive position in an industry undergoing a shakeout of underperforming competitors. North America’s parent company, Swiss Financial, of Alps land, Switzerland, reported that operating profit rose 20 percent to $68 million on sales of $1.1 billion in the most recent quarter. North American’s other nonunion plants were operating at capacity, and the company recently announced the purchase of Mexico’s largest tire-maker.
Negotiations broke down when the union rejected what management called its best offer. The company stated that the contract proposal was well above average for the Bailey, Georgia, area. However, the union countered that it was well below industry standards. In addition, the union filed unfair labour practice charges with the National Labor Board(NLRB).The union alleged that the strike was caused by unfair labor Relations Board (NLRB). The union alleged that the strike was caused by unfair labor practices including the company’s refusal to bargain over medical insurance or to bring its decision-makers to the bargaining table.
Supervisors and clerical employees kept the Bailey tire plant operating at less than 30 percent of capacity, and plans were made by management to hire strike replacements. Striking employees were invited to return to work, but only a small percentage returned. The company began to advertise, interview, and hire strike replacement s. Although the labor market was tight and Bailey’s unemployment rate was less than three percent, there was no shortage of applicants. The company increased production at the percent, there was no shortage of applicants. The company increased production at the Bailey plant, and production was also stepped up at its nonunion plants. While the union cried foul, the company continued to increase production. A federal mediator was appointed to get both sides back to the bargaining table to resume negotiations.
QUESTION 1
a) From the case, the union and management of the plant resulted to the bargaining table for negotiations. What are the likely main characteristics of this collective bargaining? (3marks)
b) Outline two advantages and two disadvantages of collective bargaining embraced in the case. (4marks)
c) List any four sources of grievances cited in case (2marks)
d) What role do you think; works committee would play in the case? (3marks)
e) Define ‘Joint consultation’ giving suggestions for its success if it were to be applied in the case (5marks)
f) Given the prevailing circumstances in the plant; outline five ways of improving employee relations climate in the plant. (5marks)
g) Briefly explain three forms of employee involvement that the plant would adopt. (3marks)
h) List any six channels of communication that the plant can use to make sure that its messages get across. (3marks)
i) Identify the plant’s response to strike. (2marks)
QUESTION 2
a) What is Good Faith Bargaining? (2marks)
b) When is Bargaining not in good faith? (6marks)
c) Give four hints of a good bargaining to bargainers (4marks)
d) Cleary explain five guidelines for employers wishing to stay union free (8marks)
QUESTION 3
a) Define an independent trade union, what are their specific objectives? (4marks)
b) Why do employees join unions? (3marks)
c) What are the effects on the management of a company when a substantial number of its employees are members of a trade union? (4marks)
d) State the meaning of employee grievances. (3marks)
e) Briefly outline the grievances procedure (6marks)
QUESTION 4
a) Discuss industrial action likely to take place:
(i) If in negotiations, the union wishes to put pressure on management, the sanctions at the disposal. (4 marks)
(ii) Employer’s response to strike (4 marks)
b) Identify and explain substantive and procedural issues pertaining to employee relations. (6marks)
c) Briefly discuss the role of industrial court in employee relations (6marks)
QUESTION 5
a) Give a brief overview of the New Labour Legislation in Kenya. (10marks)
b) Write short notes on the following.
i) Single table bargaining
ii) Conciliation
iii) Arbitration
iv) Mediation
v) Closed Shop (10marks)
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