MGT 462 Lecture Notes - Lecture 11: Lump Sum, Nonunion, Instrument Landing System Localizer
Document Summary
Chapter 15: union role in wage and salary administration. Spillover effect occurs when employers avoid unionization by offering wages, benefits, and conditions won in unionized firms. Management avoids union interference in decision making and workers enjoy rewards. Nonunion management continues to enjoy freedom from union interference in decision making and workers enjoy the spillover effective rewards. Most contract specify for hourly and overtime pay. Agreements may specify a fixed daily, weekly, biweekly, or monthly rate. Usually specify a day of the week as payday. Less frequently, contracts specify some form of incentive system as the basis for pay. Single rate agreements do not differential wages based on either seniority or merit. Automatic progression is movement through the range based on seniority. Moving through a range based on merit is less common. Third method of range movement is a combination. Increased wage costs from unionized contract may erode market share. Unions are more receptive to alternative reward systems.
