MANA 443 Lecture Notes - Lecture 12: Profit Sharing, Piece Work, Outsourcing
13 Dec 2018
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Chapter 12: impact of labor union on compensation and benefits management. Unionized employees" wages are about 10% higher than their non-union. Unionized employees" benefits are about 20-30% higher than their non-union counterpart counterpart. Coverage in key areas like pension/health insurance are significantly better. Higher percentage of total wage bill allocated to employee benefits. Unions do not want their members to take risk. Employers seeking to avoid unionization offer workers the wages, benefits, and working conditions won in rival unionized firm. Wage and salary policies and practices in unionized firms, e. g. collective agreement always requires union representatives on job evaluation committee. Movement within salary bands (seniority based and performance based pay) Health & safety issues a greater priority. Union representatives make sure the term is specific enough and avoid the room for manipulation from the employers. Some collective agreements include alternative rewards: (eg lump sum awards, piece rates , gain-sharing, profit sharing, skill-based pay)
