Complete the following activities.First: Create a post of between 400 and 500 words responding to the following with respect to the case (indented paragraphs) within the heading “Ethical Dilemmas: Management” in the commentary:”You are the HR Director and have been asked to prepare a report recommending the “right” way to approach the election, understanding that the company under no circumstance wants to deal with a union.” You must use the 5-Step Ethical Decision-Making tool to explain your answer. Then: Respond to one initial post of a fellow student with a last name beginning with the letters A through L, and one post from a fellow student with a last name beginning with the letters M through Z. In each response explain whether you believe the fellow student responded consistent with the 5-Step tool.
ethical_dilemmas__unions.pdf
introduction.pdf
ethical_dilemmas_applied_to_labor_relations.pdf
ethical_dilemmas__management.pdf
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HRER860: Ethical Decision Making for HR Practitioners
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Lesson 08: Ethical Dilemmas Applied to Labor
Relations
Ethical Dilemmas: Unions
This lesson’s reading assignment is a case study of ethical development within the United Auto Workers (UAW). One of
the interesting points the author addresses is the perceived need for unions (perhaps in response to public scrutiny) to be
ethically more sensitive than the business community with which it is engaged. In that context, the Taft-Hartley Act
created a legal framework within which many provisions of the UAW code of Ethics were constructed. (The UAW Code of
Ethics is reproduced at the end of the reading.)
Beyond the text’s treatment of the subject, there are numerous situations in which labor leaders will confront dilemmas of
an ethical nature. Consider the following:
You are an organizer seeking an NLRB election to certify a local union as the exclusive bargaining representative
for production employees in a company manufacturing plastic home good products. The company employs a
total of 129 employees, 73 of whom are production staff. You have decided that if you can get a majority of the
production employees to sign authorization cards, you will present the cards to the company to seek recognition.
At this point in the process you have identified a group of 7 production employees who appear to be leaders,
those to whom others seem to gravitate for guidance and who also seem sympathetic to the union’s cause. You
are visiting with Fred at his home. Fred is 33 years old with a wife and two children (4 and 7 years old). He owns
the house but has a relatively large mortgage. He currently makes $32,000 per year. His wife works part-time,
bringing in approximately $15,000 per year. Fred also has a part-time weekend job, making what he calls “pocket
money”.
You know that Fred has had disciplinary problems in the past with the company. For example, he is working on a
company imposed “probationary period” for time and attendance violations.
You are trying to convince Fred to sign the authorization card. He would be the 36th signature. Two others said
they would sign if Fred commits in writing. It is unlikely that anyone else will sign.
During the conversation Fred’s wife asks, “If Fred signs the card, what are the chances the company will try and
fire him? They’ve always been angry about unions. You know we can’t afford to lose this job.”
How would you respond?
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Lesson 08: Ethical Dilemmas Applied to Labor
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Lesson 08: Ethical Dilemmas Applied to Labor Relations
Readings
Lesson Commentary
Check the Course Schedule for specific details on what to read this week.
Learning Objectives
After successfully completing this lesson, you should be able to:
Identify common situations in which HR professionals will be confronted with ethical dilemmas in the context
of labor/management relationships.
Apply the 6-Step Ethical Decision-Making model in determining the appropriate responses to ethical
dilemmas confronting labor and/or management.
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Lesson 08: Ethical Dilemmas Applied to Labor
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Ethical Dilemmas Applied to Labor Relations
American colonial history provided little reason for “free labor” to organize in ways comparable either to European guilds
or subsequent iterations of trade or industrial unions of subsequent American epochs. Labor was scarce. Many local
battles were fought not over minimum wage, but maximum wage laws. Those involved in a truly free employment
relationship – a very small minority of the population – could in many cases easily move into farming since land was
plentiful.
Notwithstanding that free labor initially had an advantage associated with its relative scarcity, it took little time for
business owners and subsequent managers to hone a belief system that was business centric. At its core this system
argued the American continent was an opportunity for individual ambition to flourish uncontested by any interference from
organized labor or government, the application of Adam Smith’s analysis of free markets and the ultimate wisdom of the
“invisible hand”. That core ideology has dominated the political environment for most of U.S. history since the early 19th
century. There was an exceptional period beginning in the 1930’s when public policy created a competing view, a tripartite relationship – business, organized labor and government – as the foundation of the industrial relations system;
however, even though much of the legislation enshrining this viewpoint still exists (e.g., the National Labor Relations Act,
as amended), court and administrative decisions have returned dominance to the business community.
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Lesson 08: Ethical Dilemmas Applied to Labor
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Ethical Dilemmas: Management
The gap between the intentions of the NLRA and the dominant management culture surrounding unionism creates
myriad opportunities for thoughtful practitioners to consider the conflicting moral demands these two competing
perspectives promote. Consider Section 7 of the NLRA, as amended, the statement of employee rights.
Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain
collectively through representatives of their own choosing, and to engage in other concerted activities for the
purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any
or all of such activities except to the extent that such right may be affected by an agreement requiring
membership in a labor organization as a condition of employment as authorized in section 8(a)(3) [section 158(a)
(3) of this title].
Section 9 of the act creates procedures to conduct free elections. The original unfair labor practice provisions of Section
8(a) with some modifications remain intact. They are designed to prevent employers from unfairly interfering with a free
election allowing employees to choose whether to be represented by a union for purposes of “wages, hours and other
terms and conditions of employment”. Although many employers choose to steer clear of conduct that could be called
into question, the manner in which the law has been interpreted and administered (based upon the decisions of the
various Presidential appointees to the NLRB and the courts), creates a legal framework allowing scenarios similar to the
following.
Imagine a conference room where corporate managers have convened a meeting with plant management to
discuss a recently discovered union organizing drive.
The plant and corporate HR managers have presented their knowledge of the facts, including the perceived
reason for the organizing and the identities of the lead employees in the plant advocating for the union. It seems
the plant pays wages somewhat below similar facilities in the area, but the sparks for the current organizing
appear to be some recent firings perceived by employees to be unfair, the fact the company failed to make its
discretionary 401(k) contribution for the second year in a row, and recent rules revisions perceived by employees
to be arbitrary and petty.
The outside attorney/consultant brought in by corporate management outlines the NLRB election process, and
describes an aggressive anti union campaign calling for captive audience meetings, one on one supervisory
meetings, and mailings to employees homes with family oriented appeals. At one point the CEO cautions all
present that the meeting is covered by attorney client privilege, at which time the attorney starts asking some
disturbing questions of the plant HR Director.
The HR Director is asked whether a wage increase to area standards and/or a granting of the 401(k) contribution
would be enough to take the wind out of the union’s sails. The questioning proceeds to whether any or all of the
“ringleaders” have disciplinary or performance issues which could be used to intimidate them or even remove
them from the plant.
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The CEO (who makes it clear he will not accept a union in any of the company’s plants: but does not say what
the consequences would be) asks the attorney to elaborate for the group the legal consequences should any of
the actions contemplated be found to be unlawful. The answers make it clear that the financial cost to the
company for violations is surprisingly negligible, although there have been cases where legal fees have been
substantial if a long fight takes place. The CEO makes it clear that the company will spend what it takes as far
as legal fees are concerned.
An HR professional will likely have to respond to questions or make recommendations on issues such as:
The potential for a “nip in the bud” strategy of discipline or discharge of primary union supporters;
Whether wage increases and/or 401(k) contributions should be implemented or at least subtly promised to
employees to deflect employees sentiment;
Whether low level supervisors and “leads” can be painted as non-supervisory employees for purposes of
voting in an election; and/or,
Whether there are employees or “leads” who would be willing to gather intelligence about the organizing by
attending meetings, infiltrating the disaffected employee group or simply “keeping their eyes and ears
open” and reporting back.
You are the HR Director and have been asked to prepare a report recommending the “right” way to approach the
election, understanding that the company under no circumstance wants to deal with a union.
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