(1) Why has the First Central Bank of River City not been organized to date?.
Prior to 1929, business executives were seen as leaders and union members were considered dangerous radicals. However, this changed when Americans saw that these businesses could not provide for them in economically turbulent times, such as the depression, and they started to favor the union. .
In River City, the International Metalworkers Union (IMU) began dealing with many of the firms and institutions in the area since 1930. Because of this heavy influence in the city of 210,000 people, the city was beginning to be considered a "union town". IMU had represented workers at one of the town's smaller banks, organizing the maintenance workers. IMU had initiated significant pay hikes and increased benefits.
First Central felt, however, that its excellent working conditions, its job security, and its liberal profit-sharing program more than made up for its somewhat low salary scale. They believed that the employees were content, and held the opinion that working for First Central was a prestigious position. This negated the need for union support, in the mind of management. .
Benefits under First Central's pension were not as good as those provided to the auto plant workers, but they were equal to or better than the smaller bank's plans. Because the bank's largest stockholder was opposed to paid health programs, it had been repeatedly denied. The lack of a company paid insurance program and the low salary scale had led many employees to seek out options under unionization.
(2) Why are some of the employees now interested in collective bargaining? Have conditions so changed that the bank will probably not be organized? Develop a list of all the reasons why a felt need for a union arose among employees at the FCB of River City. In what ways was the bank remiss in its "management of human resources"?.
There are three main reasons why employees are drawn to unions: dissatisfaction with the economic aspects of the job, to influence those aspects of the work environment through union oriented benefits, and the belief that the benefits of unionism outweigh the anticipated costs.
