Quiz 15: Union Role in Wage and Salary Administration


Spill over is generally referred as a situation which initiates on one side which will reflect an effect on the other side. Spill over is considered to be an effect which generally involves the organisations who provide employment are trying to avoid a situation of employees seeking unions for conflict solutions. This is generally done by providing wages, benefits and other working conditions as requested by the employees or union standards. Union settlements of wage has been decreased in usage and that's the reason spill over effect is not understood properly. Meanwhile the non union companies are enjoying the benefits of union not being interfering in the decision making process. Most of the studies say that union role on determining the wages scale has been reduced but it still exists in many organisations. Therefore, these kinds of factors decrease the impact of unions on the wage determination and other decision making processes.

a. The main grounds over which Company G changed its compensation policy was to promote the competition. The variable nature of signing bonus implies that workers would be motivated to boost up the productivity. This pay structure also goes hand in hand with the profit sharing plan. The union that is primarily concerned for the worker benefits would also agree to this pay structure. This offers union associated employees an opportunity to earn highly than what workers earned previously. b. The slightly higher pay for the new hires is justified as they are not fully accomplished technically. These new hires are in the onboarding stage of their career. After these new employees are fully acquainted with the work environment, they achieve a technical expertise wherein the low-fixed and high-variable system is better for them. c. Company G may not have a high penetration in markets worldwide. The global profit measure may not be an accurate measure of total actual profits. This would not justify the efforts of workers. Thus the union, with a view of benefitting the worker's efforts got the profit calculation system changed. d. Since the new production system involves less labor, it would not make a huge change. The cost of outsourcing can be easily overcome by shifting production to US. Rehiring of laid-off workers and buyout plans for skilled trade workers are a result of increased unionism. The unionism is bound to increase as the huge paradigm shift would lead to insecurity among workers. e. Firstly the distance between Michigan and Tennessee is not very high. Since Company G does not want to lose hold on Michigan, it would be a better option to restart production in Tennessee.

Right to strike means the right which can be executed by the workers when something in the organisation is going out of control or promise. Public companies have limited rights to strike when compared with private organisations. In fact some of public sector unions do not have the right strike. It is completely based on what kind of union the company is linked with. Teachers, Fire fighters and policeman does not possess right to strike in many states. In organisations, both private and public when employees execute their right to strike, they are threatened to fire from the job and that is the reason most of the public sectors employees do not participate in strike at the cost of their jobs. Especially when this is done in public sectors, lot of compensational benefits are also stopped. Therefore, right to strike is not very much executed in public unions when compared with the private ones.