Labor Relation 420
20 July 2013
Labor Relations: Collective Bargaining
In 1933, approximately one year after the passage of the “Norris-LaGuardia Act was enacted; President Roosevelt with a country laden with “widespread unemployment, poverty, homelessness and hunger” signed his New Deal initiative (Budd 116). Roosevelt’s’ New Deal would attempt to provide relief for millions of Americans. The New Deal initiative included the National Industrial Recovery Act, later ruled unconstitutional in 1935. In 1935, however, Roosevelt signed into law the Wagner Act a milestone legislation which “encourage collective bargaining” (Budd 116).
Collective bargaining is the process in which the working class of society, through their unions, negotiates an acceptable contract with their employers to establish their terms of employment. Collective bargaining has become according to many economics “an important form of social dialogue” (Olney-Rueda). “When the U.S. labor relations system works effectively, efficiency, equity, and voice are achieved through collective bargaining” (Budd 11). Collective bargaining has “help provide social protection and promote sound industrial relations” (Olney-Rueda). The major components of collective bargaining include: “Compensation: wages, benefits, vacations and holidays, shift premiums, profit sharing. Personnel policies and procedures: layoff, promotion, and transfer policies, overtime and vacation rules. Employee rights and responsibilities: seniority rights, job standards, workplace rules and, employer rights and responsibilities: management rights, just cause discipline and discharge, subcontracting, safety standards” (Budd 11).
Social communication has proven effective when both partners’—the employer and employee are involved, “participation in decisions that affect the lives of all society” (Sherk). Collective bargaining is not all without flaw James Sherk believe “that collective bargaining would not further...