Private group insurance is offered at the discretion of employers, and
plans are not legally required. Group rates are lower because of economies of
scale, the ability to pool risks, and the greater bargaining power of a group.
1. Medical Insuranc
A. Unfair Labor PracticesLabor Unions: Originally the NLRA did not list any
union unfair labor practices. These were added by the 1947 TaftHartley Act.
1. These ULPs parallel those listed previously. For example, unions may not
restrain or coerce emp
A. Union Membership and Bargaining PowerEmployers are increasingly
resisting unionization. Unions are making new attempts to organize new
memberships and to provide new services. Union membership has consistently
declined since 1950 and now stands be
Goals and Strategies
SocietyLabor unions' major benefit to society throughout history has
been the balancing of power and the institutionalization of industrial conflict in the
least costly way. The National Labor Relations Act (NLRA, 1935) sought
a. This will make it difficult to estimate costs in small businesses. Adverse selection can
be controlled by placing limits on coverage amounts, pricing benefits with such
problems higher, or using a limited set of options.
1. Flexible Spending Accou
1. Staffing Responses to Control Benefit Cost Growth
a. Because benefit costs are fixed, the benefits cost per hour can be reduced by having
employees work more hours.
b. Organizations may try to have their employees classified as exempt, since they
1. Health Care: Controlling Costs and Improving QualityIn the United States,
healthcare expenditures have gone from 5.3 percent of the GNP ($27 billion) in 1960
to 14 percent (approximately $1.45 trillion) recently. The United States spends more
A. Pay for Time Not Worked
1. Some employers may see little advantage to paid vacation, holidays, sick leave, and
so on, since employers pays the employee for time not spent working, receiving no
tangible production value in return. In the United Sta
a. A Money Purchase PlanAn employer specifies a level of annual contribution, and
at retirement the employee receives the contribution and investment returns.
Employees typically purchase an annuity rather than taking the money as a lump
Corporate campaigns seek to bring public, financial, or political pressure on employers
during the organizing and negotiating process.
Example: William Patterson, corporate affairs director of the Teamsters
union, attended the 1996 Time Warner Inc.'s