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In: Operations Management

1. There are a considerable number of laws centered around labor relations and collective bargaining. Why...

1. There are a considerable number of laws centered around labor relations and collective bargaining. Why do you think this area seems to have so many different laws compared to wages (FLSA) or safety (OSHA), for example?

2. Hawai`i has a large number of unionized employees compared to many other states. Why do you think Hawai`i has so many unions?

Solutions

Expert Solution

Introduction:

Laws related labor relations and collective bargaining deals with giving rights to employees to form Unions and to Bargain with the management through Union Leader(s). The intention of the law is to define various factors related to laborers / employee beforehand to avoid conflicts / disputes between employees and employers and to avoid strikes / lockdowns which can hamper industrial production. It is important to have good relations between employer and employee(s) for any business to grow and succeed. Collective bargaining sets a mutual understanding between both the parties.

Q.1 There are a considerable number of laws centered around labor relations and collective bargaining. Why do you think this area seems to have so many different laws compared to wages (FLSA) or safety (OSHA)?

The Fair Labor Standards Act (FLSA) prescribes minimum wages, overtime wages, working hours and other factors related to labor payout. FLSA basically sets the salary policy. Occupational Safety and Health Administration (OSHA) sets the safety standards to be maintained at the working place. It provides whistle blower platform to labors to notify the authorities in case any injuries or possibility of injuries exists. OSHA prescribes the standard of hazardous chemical exposure, use of personal protective equipment, and laws to prevent accidents from operating dangerous equipment.

FLSA and OSHA deals with laws which prescribes laws for wages and safety respectively which may require intervention of government / authorities in case the prescribed standards are not followed by the employee. While laws related to labor relations and collective bargaining provides a platform to strengthen the relations between employee and employer and reduce the intervention of authorities to the extent possible. Collective bargaining protects interest of both the parties i.e management and workers, through a win-win negotiation.

Collective Bargaining is one of the most important factor since it deals with all the factors of labors working, such as salary structure, overtime wages, safety, grievance redressal, Job description, welfare schemes, incentive schemes, performance appraisal etc. The Parties through Collective Bargaining enters into an agreement that defines all the above factors as well as job responsibilities. Collective Bargaining is a complimentary process over and above other acts and rules hence providing a platform to both the parties without intervention of third party. It increases the confidence among management and workers, which helps to increase productivity by workers and management to provide better remuneration. Considering the above importance of independent discussion between management and Unions, more laws are centered around labor relation and collective bargaining.

Q.2 Hawai`i has a large number of unionized employees compared to many other states. Why do you think Hawai`i has so many unions?

Hawaii has a large number of unionized employees because of its history of Sugar Strike in 1946 by a union named International Longshore and Warehouse Union (ILWU), which changed the Hawaii labor history.

During that time workers of other ethnicity such as Chinese, Korean, Japanese and Filipinos dominated the Sugar workforce.

Most of the immigrant plantation workers were brought under contracts under Masters & Servants Act. Under this law, absenteeism or refusal to work could cause a contract laborer to work for the employer an extra time after the expiry of contract. But the major issue was often caused by the cruelty and arrogance of the plantation overseer.

Wages were minimum during the times and many efforts were made to improvise wages through strikes but failed due to various reasons. With the introduction of Wagner Act, rights were given to workers to organize unions and place their demands. The International Longshoremen and Warehouseman's Union, the ILWU, then made a union by including the unions of Japanese and Filipinos into Hawaii's biggest single union representing workers across the island and started the sugar strike in 1946.

The strike succeeded in changing things in favor of Hawaii workforce, by able to provide benefits such as housing, medical, pensions, and wages, as rights for workers instead of privileges granted as favors by plantation owners.

Unionization in Hawaii hence paved the way for state's collective bargaining law for employees. The lowest paid workers were now having right to bargain the best things in their favor through unions.

Generally wages and benefits paid to Hawaii workers is low compared to other states however the the gap has decreased a lot due to formation of unions. The lifestyle of the family of the earlier workforce which led the strike is much better in the present situation and has helped a lot to improvise the economy of Hawaii.

Considering the contribution of Union in Hawaii labor society, Hawaii has the most number of unions compared to other states.


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