Labor Relations What do you believe are the benefits to being an employee of a company vs. A contractor? Which would you prefer to be? Why?

The benefits of being an employee include the right to self-organization, to bargain collectively, or form a labor organization (Carrell & Heavrin, 2007). Employees have pre-determined work days and duties under the leadership and direction of the employer and are not required to incur costs or make investments in the work they produce. Typically, only general education and experience is required, with some employers paying for additional training and specializations. All income, Social Security and Medicare taxes that fall under the Federal Insurance Contributions Act (FICA) are handled by the employer (Strawson, 2003) For most employees, there are also employer contributions made to pensions and other retirement plans, health and disability insurance for self and family members, and unemployment compensation after a lay off or termination. Worker's compensation is available in the event of a workplace injury and employees have the protection of workplace safety and anti-discrimination laws. There are also federal and state wage and hour laws.

An independent contractor sells professional services to the highest bidder. He or she has the flexibility to set his or her own hours and schedule and work independently for as many clients or companies as desired. The independent contractor can determine how to approach projects and has typically acquired very specialized skills, education or experience in an area (Strawson, 2003). All costs associated with performing the job are paid out of pocket, although independent contractors are generally entitled to deduct all reasonable business expenses from their reportable annual income. Working as an independent contractor requires paying self-employment taxes and being diligent with retirement planning and saving for emergencies or times of slow business. Unlike an employee, there are no set provisions for health insurances, workers or unemployment compensation, or overtime. The independent contractor is not protected by workplace safety and employment anti-discrimination laws and is not entitled to join or form a union.

In a tough economy and with soaring healthcare costs, I prefer the idea of being a benefits-eligible employee with protections under the law. As I continue in my career, I might be open to the flexibility of working as an independent contractor or consultant. The creative freedom and autonomy seem appealing, but only after achieving the experience and specialized skills necessary to build a solid client base. That would be critical to establishing a steady income and successful business.

References

Carrell, M.R., & Heavrin, C. (2007). Labor relations and collective bargaining: Cases, practice, and law (8th ed.). Upper Saddle River, NJ: Prentice Hall.

Strawson, A. (2003). Employee or independent contractor? CMA Management, 77(6), 45.

2. Compare and contrast the factors that might contribute to employee's voting to decertify a union.

Unions only truly benefit workers when they are able to protect the wages of their members. When jobs become scarce, union workers are more appreciative of the employment protection clauses of collective bargaining agreements. Unions typically decertify when, for the individual members, the cost of membership is greater than its benefits. This is especially seen during times of recession, when unions are unable to protect employment security and members experience long layoffs (Carrell & Heavrin, 2007). Other factors that might contribute to a decertification are unionized employers developing working environments where employees question the need for continued union representation (Lewis, 1986). In addition, discontentment over two-tier wage settlements may play a role. Newly-hired, lower paid workers sometimes resent being placed in a second-class status. They may blame their union for a poor settlement.

Failures in leadership, high dues, or lack of initiative on the part of union leaders may be other reasons worker's vote to decertify. Aggressive antiunion campaigns or a move to a traditionally nonunion geographic area can also lead to a decertification. (Carrell & Heavrin, 2007). If individual members of the union are finding they are still subject to adverse job actions, harassment by management or workplace discrimination they will be much less likely to support a union (Lewis, 1986). In addition, younger generations tend to view unions as outdated with aging leaders (Carrell & Heavrin, 2007). Unions today appear to have a declining public image.

References

Carrell, M.R., & Heavrin, C. (2007). Labor relations and collective bargaining: Cases, practice, and law (8th ed.). Upper Saddle River, NJ: Prentice Hall.

Jarrett, B. (2011). Decertification gives leverage, carries risk. USA Today.

Lewis, R. (1986). Union Decertification: A New Look at Management's Role. Labor Law Journal, 37(2), 115-122.

Do you believe employee elections regulated by the NLRB are successful? Why or why not? Please explain your answer.
The National Labor Relations Act allows employees to decertify their union through a National Labor Relations Board conducted election that requires a petition signed by 30% of union members and an election with a majority vote to decertify. These are not always successful because a union may file an unfair labor charge against an employer where it is unsure it can win an election. These types of blocking charges delay the processing of the final petition in the hope that, in time, the union can reestablish its strength and win a majority vote. Another questionable issue has been the unnecessary and lengthy election process. When an election is contested, workers have waited an average of 124 days. Some elections have been delayed for more than a decade (Schmidt, 2011).

The National Labor Relations Board recently decided that the time leading up to union elections should be dramatically shortened. The period before elections has been reduced from a median time of 37 days to as little as ten days from the filing of an election petition. In addition, pre-election hearings are now set for 7 days after the petition is filed and require the employer to respond within this period to a pre-hearing questionnaire raising any legal issues or waive his right to do so (National Labor Relations Board [NLRB], 2011). These changes support unions because employers have so little time to respond. Other efforts to improve the effectiveness of the election process include allowing e-mail and other forms of electronic communication among the parties, faster submission of voter eligibility lists, and a single, post-election appeals process.