Economics 322: Collective
Bargaining
Spring 2004
Thursday 6-9
274 Heady Hall
Instructor: Dr. Peter F. Orazem Office Hours:
267 Heady
Hall Thursday
after class
294-8656 Mondays
11-2, or by appointment
Home
Page: www.econ.iastate.edu/faculty/orazem
Aim: To develop an understanding of the workings
and facts surrounding the collective bargaining process and to build a facility
for applying these models and facts to policy, business and economic settings.
Main Texts: (CH) Carrell, Michael R. and Christina Heavrin. 2004. Labor Relations and Collective Bargaining: Cases, Practice and Law, 7th
Edition.
(SCG) Smith, Jerald R., Michael R. Carrell and Peggy A.
Golden. Collective Bargaining Simulated, 4th Edition. 1996.
Review Text: (ES)
Ehrenberg, Ronald, and Robert Smith. 2003. Modern Labor Economics: Theory and Public
Policy, 8th edition.
Alternative Text: (L) Leap, Terry L. 1995. Collective Bargaining & Labor Relations.
Items in the Carrell-Heavrin text are
required. The Leap text is included as
an alternative text for students wishing to take another (albeit similar)
perspective. The Ehrenberg-Smith text reviews
some of the economic models reviewed in the lectures and is included for
students who wish to review labor economics.
Copies of all three textbooks are on reserve in the Parks Library. The other listed readings are available on line
at the library web site:
http://www.lib.iastate.edu/class/ers/list/econ322orazem.html
Some of these readings will be required. However, most are just sources from which
lecture material will be taken or else useful sources for students wishing to investigate
particular topics in greater detail.
Class
Home Page: www.econ.iastate.edu/classes/econ322/orazem. The home page will contain the assignments,
lists of topics covered, problem sets, review questions and other materials of
interest.
Course Outline
I. The History of the Labor Movement and
Law
CH: Chpts. 1,
L: Chpts 2,3
ES: Chpt 13: 423-429;
436-442
Thieblot, A.J. “The
Fall and Future of Unionism in Construction.” Journal of Labor Research 22 (Spring 2001): 287- 306.
Dickens, William and
Jonathan Leonard. “Accounting for the Decline in Union Membership,
1950-1980." Industrial and Labor Relations Review 38 (April 1985): 323-334.
II. The Role of the NLRB
CH: Chpt. 3: 107-119
L: Chpt 3: 80-84.
Leroy, Michael H. “Is
the NLRB Still Relevant?: A Performance Review.” Journal of Labor Research 22 (Fall 2001): 781-794.
Bodah,
Matthew M. “Congress and the National Labor Relations Board: A Review of the
Recent Past.” Journal of Labor Research
22 (Fall 2001): 699-722.
O’Connell,
John F. “The NLRB at the Grassroots”. Journal of Labor Research 22 (Fall 2001): 761-776.
III. Organizing and Union Recognition
CH: Chpts. 3,
4
L: Chpts.
4, 5
Farber,
Henry and Alan B. Krueger. “Union Membership in the
Farber,
Henry S. “Union Success in Representation Elections: Why Does Unit Size Matter?”
Industrial and Labor Relations Review
54 (January 2001): 329-348.
Eaton. Adrienne E. and Jill Kriesky. “Union Organizing
and Card Check Agreements.” Industrial
and Labor Relations Review 55 (October 2001): 42-59.
Kleiner,
Morris. “Intensity of Management Resistence.” Journal of Labor Research 22 (Summer 2001): 519-540.
Fine,
Cory. “Union Salting: Reactions and Rulings since Town and Country.” Journal of
Labor Research 23 (Summer 2002): 475-485.
Fiorito, Jack and Paul Jarley. “
IV. The Bargaining Process
CH: Chpt.
4
L: Chpts.
6-8
Flanagan, Robert J.
“Workplace Public Goods and Union Organization.” Industrial Relations 22 (Spring 1983): 224- 237.
V. Bargaining Strategy
CS: Chpt 4:
181-192
L: Chpt. 9
ES: Chpt. 4:
96-105; Chpt 13: 431-436; 442-449.
McMillan,
John. Games Strategies and Managers
VI. Bargaining in Practice: Negotiation
Rules, Strikes, and Strategies
CS: Chpt. 5
L: Chpt. 10
Gunderson,
Morley and Angelo Melino. “Estimating Strike Effects in a General Model of Prices
and Quantities.” Journal of Labor
Economics 5 (January 1987):1-19
Leroy, Michael H. “The
Formation and Administration of Labor Policy by the NLRB: Evidence from
Economic and ULP Strike Rulings.” Journal of Labor Research 22 (Fall 2001): 723-737.
Hutchens, Robert,
David Lipsky and Robert Stern. “Unemployment Insurance and Strikes.”
Journal of Labor Research
13 (Fall 1992): 337-354.
Singh, Parbudyal and Harish C. Jain. “Striker Replacement
in the
VII. Unions and Wages
CS: Chpt. 6
L: Chpt. 13
ES: Chpt 13: 452-459.
Card, David. “The Effect of Unions on Wage Inequality in
the
Bratsberg, Bernt and James F. Ragan Jr. “Changes in the
Union Wage Premium by Industry.” Industrial
and Labor Relations Review 56 (October 2002): 65-83.
Belman, Dale L. and Kristen A. Monaco. “The Effects of
Deregulation, De-Unionization, Technology and Human Capital on the Work and
Work Lives of Truck Drivers.” Industrial
and Labor Relations Review 54 (January 2001): 502-524.
VIII. Unions and Benefits
CS: Chpt.
7
L: Chpt
14
Allen, Steven G and Robert L. Clark. “Unions, Pension
Wealth, and Age-Compensation Profiles.” Industrial
and Labor Relations Review 39 (July 1986): 502-517.
Buchmueller,
Thomas C. John Dinardo and Robert G. Valletta. “Union Effects on Health
Insurance Provision and Coverage in the
McHugh,
Cutcher-Gershenfeld and Polzin. “Employee Stock Ownership Plans: Whose
interests do they Serve?” IRRA 49th
Annual Proceedings. (1997):23-32.
Smallhout, “The Uncertain Retirement: Groping for a
Response.” The Uncertain Retirement.
1996
IX. Union Security, Job
Security and Seniority
CS : Chpt.
8
L: Chpt.
15, 16
Addison and Siebert. “Job
Regulation.” Chpt 9. The Market for Labor
X. Bargaining in the Public
Sector and Arbitration
CS: Chpt. 1:
34-41; Chpt. 5: 246-254; Chpt 11
L: Chpt. 12,
17
ES: Chpt. 13: 449-451;
466-470.
Olson, Craig. “Dispute
Resolution in the Public Sector.” in Aaron, eds. Public Sector Bargaining, 2nd edition. 1988.
Currie, Janet and Sheena
McConnell. “The Impact of Collective Bargaining Legislation on Disputes in the
XI. Implementing the
Agreement: Grievances, Disciplinary Actions and the Exit-Voice Tradeoff
CS: Chpts. 9-10
L: Chpt. 11
Batt,
Rosemary, Alexander J. S. Colvin and Jeffrey Keefe. “Employee Voice, Human
Resource Practices, and Quit Rates: Evidence from the Telecommunications
Industry.” Industrial and Labor Relations Review 55 (July 2002): 573-594..
Farber,
Henry and Alan B. Krueger. “Union Membership in the
Bemmels. “The
Determinants of Grievance Initiation.” Industrial and
Labor Relations Review 47
(January 1994): 285-301.
XII. Unions, Productivity,
Profitability, and Firm Growth
ES: Chpt 13:
Schwarz-Miller, Ann
and Wayne K. Talley. “Technology and Labor Relations: Railroads and Ports.”
Journal of Labor Research
23 (Fall 2002): 513-533.
Freeman, Richard and
Morris Kleiner. “Do Unions Make Enterprises Insolvent?” Industrial and
Labor Relations Review 52
(July 1999): 510-527.
XIII. Unions and High
Performance Work Systems
CS: Chpt. 2: 61-72
Ichniowski, Casey and
Kathryn Shaw. “Beyond Incentive Pay:
Insiders’ Estimates of the Value of Complementary Human Resource Management
Practices.” The Journal of Economic Perspectives
17 (Winter 2003):155-178.
Rubinstein,
Saul A. “The Impact of Co-Management on Quality Performance: The Case of the
Saturn Corporation.” Industrial
and Labor Relations Review
53 (January 2000): 197-218.
Kleiner, Morris M., Jonathan S Leonard, and Adam M.
Pilarski. “How Industrial Relations Affects Plant Performance: The Case of
Commercial Aircraft Manufacturing.” Industrial
and Labor Relations Review 55 (January 2002): 195-218.
Verma, Anil and Tony
Fang. “Workplace Innovation and Union Status: Synergy or Strife?” IRRA 55th Annual Proceedings. (2003):189-198.
Cooke,
“Employee Participation Programs, Group Based Incentives and Company
Performance: A
XIV. Unions and Discriminiation
CS: Chpt. 12
Exams: There will be one
midterm composed primarily of short essay questions. If, due to unavoidable conflicts or illness,
you are unable to attend on the day of an exam, you must notify me beforehand
to arrange a make‑up. Failure to
contact me or to leave me a message before the exam is handed out will result
in an F on the exam. The midterm will be on Thursday, March 25.
Cases: You will be asked
to prepare and present several (I think 3) cases during the course of the
semester. Each paper should be no more
than one typed page. You will be asked take
on the role of administrative law judge, arbitrator or member of the National
Labor Relations Board. You should review
the relevant issues on both the side of the union and the side of management
and then make your decision in light of the contract and relevant labor
law. You will be asked to hand in your
paper after delivering your case.
Depending on enrollment, I may have multiple students prepare the same
case, but I would want you to prepare your paper independently. Illegible or sloppy work will not be
accepted. Note that while only a few
students will be scheduled to present on a given day, all students should be
prepared to discuss the cases.
Computer simulation: We
will try out a computerized bargaining simulation, Collective Bargaining Simulated, 4th Edition,
sometime after we have
completed section VI. The timing is
dependent in part on how quickly we get through the material.
Final Paper:
Students are required to write a short review paper of about 10 pages on a topic related to
collective bargaining. The paper should
make use of articles from the list of journals presented below. The paper must include the student's own
conclusions derived from his/her analysis of the literature. Paper outlines are due on Thursday, March 11,
although earlier submissions are welcome.
Each student should have previously discussed his/her topic with me to
insure that the topic is satisfactory.
The paper is due on
Absences:
Students are responsible for all material discussed in class. I will not release my notes to absent
students. If a student foresees an
extended period of absence, he/she should notify me in advance so that some
accommodation can be made. Absent
students can keep up with assignments by logging in to the Econ 322 web page
listed above.
Point
Breakdown:
Midterm: 30
percent
Cases: 20
Percent
Computer
simulation: 10 Percent
Class
participation 10 Percent
Final
paper: 30 Percent
Useful web
pages:
The NCS Wage Query System (http://data.bls.gov/labjava/outside.jsp?survey=nc) presents mean hourly wage data for all workers in an occupation for over 85 specific geographical areas. The system also produces modeled hourly wage estimates for many area, occupation, and work level combinations for which BLS has no officially published data.
BLS
Occupational Wages (http://www.bls.gov/bls/blswage.htm) Contains the summary data that generated the
modeled estimates in the NCS Wage Query System
The
Bureau of Labor Statistics Home Page (http://www.bls.gov/home.htm) contains results from the numerous surveys
conducted by the Department of Labor regarding employment, earnings, benefits,
unions, unemployment, demographics and many other labor market issues. It also
has links to other data sites such as the Bureau of Economic Analysis and the
Bureau of the Census.
Economics
journals
These journals concentrate on industrial
relations issues and are available on-line through the library web page:
http://www.lib.iastate.edu/collections/jourbook/sersolutions/jnlsNum.html
Industrial and Labor
Relations Review
Industrial Relations
IRRA Annual Proceedings
Journal
of Human Resources
Journal of Labor Economics
Journal of Labor Research
Monthy Labor Review