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Unions and Contingent Workers

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Why do unions typically disagree with companies using contingent workers? Although companies rely on contingent workers, is it always cheaper to employ contingent workers instead of regular employees? Why, or why not?

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https://brainmass.com/business/compensation-strategies/unions-and-contingent-workers-580759

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Unions are organized groups of workers that use their strength in numbers to have a voice within their workplace. Union membership provides the capability for a group to impact wages, work hours, healthcare, benefits, and other work related issues. The union provides support to ensure fair treatment within the workplace. In ...

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This solution discusses contingent workers vs regular employees.

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Temporary Workers Friction Case Study

The case study is attached in full, but here is the summary and questions:

Summary:
Special groups are portrayed here as sharing two common characteristics: They all have jobs with high potential for conflict, and resolution of this conflict is central to the goals of the organization. Probably because of these characteristics, special groups receive compensation treatment that differs from the approach for other employees. Unfortunately, most of this compensation differentiation is prescriptive in nature (i.e., all we have is opinion to guide us, not hard data), and little is known about the specific roles assumed by special groups and the functions compensation should assume in motivating appropriate performance. Future practice and research should focus on answering these questions.

Questions:

1. It's getting harder to find good people willing to serve on a corporate board of directors. Why do you think this is true?

2. What makes professional/scientist jobs different, such that they qualify for special group status in many companies? Why is the compensation of knowledge workers so frequently linked to the amount of time these workers have been out of school?

3. The differential between the salary of top executives and the lowest paid workers in the same country is quite small in Japan, at least in comparison to the U.S. The same is true in unions (president of union versus union workers). Explain why the differential might be small in Japan and in U.S. unions but much larger in private U.S. corporations.

4. Romance Novels, Inc, located in Cheektowaga, NY, has gradually increased the number of contingent workers (full-time, temporary) from 10 percent of the workforce to about 28 percent today. Why might they do this? Also, what equity problems can arise from hiring contingent workers, especially when they work alongside regular employees?

5. Why is it easier to explain a $2 million payout to Tiger Woods for working 4 days to win a Masters Championship than it is to explain why William Clay Ford made $30 million as CEO of Ford Motor Company?

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