Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
Labor – Management Simulation
Objectives:
I can…simulate the process of negotiation between labor and management to increase my
understanding of labor unions.
Directions:
1. Read the scenario.
2. Read the labor and management issues, taking note of the demands likely to be made
by either side.
3. Read the timeline.
4. Read your position; fill in question #1 on the simulation guide.
5. Complete each simulation round as directed.
6. Complete the simulation guide and reflection paragraph.
Scenario:
The Allegheny Steel Company is the largest steel manufacturer in the world. Allegheny’s
largest manufacturing facility is located in Pittsburgh, PA. The city is growing and
competitive; new immigrants arrive in the city daily seeking work. Allegheny has a
reputation for long working hours, harsh working conditions, and a focus upon profit
margins. The plant is staffed by both skilled and unskilled workers who are imperative to its
round-the-clock productivity. The company management reports directly to the owner, Mr.
Andrew, and has long been derided for its focus upon profit margin rather than working
conditions. Recently, arguments have arisen between the management and workers; they
disagree about the state and quality of working conditions at the plant, the number of hours
worked weekly by both skilled and unskilled workers, and the weekly/hourly pay per worker.
Labor Issues:
Labor has three primary demands for Allegheny Steel. First, the workers desire an increased
focus on plant safety and wish to add safety devices to two of the primary machines used to
roll out the steel. Each machine costs $10,000; it is estimated that the addition of these
machines will benefit the workers in the next year by reducing the number of deaths in the
plant by 15 and the number of injuries by 50. Furthermore, they seek to reduce the working
hours each week from 72 to 60. Citing both safety concerns as well as a better work-life
balance, these workers believe that six 10 hour shifts per week rather than six 12 hour shifts
per week will maintain plant efficiency, create more jobs by creating a three shift rotation
rather than a single shift change per day, and ensure that workers perform at a higher level.
Finally, the workers would like to increase the pay of both the skilled and unskilled workers.
For the skilled workers, they would like to see an increase from $425 per week ($5.90/hour,
72 hours) to $500 per week ($8.30/hour, 60 hours).1 For the unskilled workers, they would
like to see a $10/week increase from $165 per week ($2.29/hour, 72 hours) to $175 per
week ($2.90/hour, 60 hours). There are 80 skilled workers at the plant and 400 unskilled
workers at the plant.
1
HAH Students: Please do some basic internet research to determine whether or not these wages (adjusted
into 2010 dollars) are fair for steel and ironworkers from 1900. You might be surprised by the results!
Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
Management Issues:
Allegheny is the largest manufacturer of steel in the world. The Pittsburgh plant is their
largest operation and has high profit margins. The workers have been reasonably productive
($7 million/week – 45% of the company’s weekly profits), but other Allegheny plants have
recently increased their profit margins due to higher outputs per worker. In particular, the
New York plant rolls approximately 15% more steel with only 90 skilled workers and 250
unskilled workers. Management would like to maximize efficiency of the Pittsburgh plant’s
round the clock operations and maintain a high profit margin. In the event of a strike by the
current labor force, it would be fairly easy to replace all of the unskilled workers in the
plant; it is estimated that the plant would have to shut down for 5 days in order to fully
replace all of the unskilled workers. Replacement of skilled workers, however, is more
difficult; it is estimated that it would take almost 10 weeks to replace them all.
Replacement of the skilled workers is possible and the plant could continue operations but
only at one half of the current capacity.
Today:
Management and Labor are preparing to meet for the first time to discuss their issues.
Recently, other steel plants have faced strikes, but Allegheny Steel workers have not
picketed in 5 years. A team from management and a small group representing labor will
attempt to come to an agreement on these issues. Rumors are swirling about; if no
agreement is reached, it is suspected that that the workers will strike and that management
is prepared to ask the President to send in federal troops to break the picket lines.
Prior to a joint meeting, Labor and Management must meet independently to determine how
to present or respond to their opposition’s demands.
Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
In Class procedures:
Round One (5 minutes): Labor and Management meet separately to determine their
demands and tactics when negotiating.
 UNSKILLED: The unskilled workers need to select two to three people from
their group that will represent them in the negotiations with management.
 SKILLED: The skilled workers need to select one individual that will represent
their interests in the negotiation.
 MANAGEMENT: The management must determine how to maintain a united
face and who ought to respond to which sort of demands.
Round Two (5 minutes): The representatives from Labor will meet with Management. The
two sides will discuss the Labor demands and determine whether both sides can agree to a
compromise. Once this initial negotiation has ended, each group will reconvene with their
side to discuss the situational shifts.
Rounds Three to End (5 minutes each): After each subsequent meeting of Management
and the representatives from Labor, the process from round two will be followed.
 STRIKES: Labor can strike at any time following round two. After 5 minutes of
strike, Labor must update their negotiation or strike status.
 LOCKOUTS: Management can lock out labor at any time following round two.
After 5 minutes of lockout, Management must update their negotiation or
lockout status.
 ARBITRATION: An arbitrator (Ms. Fowler) can be called for a 2 minute meeting
with either group to assist in the negotiation should the opposing sides wish to
compromise.
Your goal is for both sides to sign a contract.
You will ONLY have 1 period to negotiate and create a contract.
**Remember, workers will not be paid during strikes and lockouts. Management will lose
money during lockouts and strikes even if strikebreakers are used.
Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
Name: ____________________________
9th Grade Honors American History
Topic
Time Period
Leaders
Goals/
Interests
Advancements
National
Labor Union
Knights of
Labor
Pd: ______
Ms. Fowler
American
Federation
of Labor
National
Railway
Union
International
Workers of
the World
Congress of
Industrial
Organization
Name: ____________________________
9th Grade Honors American History
Strike
The Great
Strike of
1877
The
Haymarket
Affair
The
Homestead
Strike
The Pullman
Strike
Date (s)
Pd: ______
Ms. Fowler
Causal Events
Summary of
Strike Events
Leaders
Results
Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
LABOR-MANAGEMENT SIMULATION OVERVIEW
Follow up: To be completed before, during and immediately after the negotiations.
1. What were your personal goals as you went into the negotiations?
2. Please keep a log of the negotiations that go on during the class.
(attach a separate sheet if necessary)
Use these questions for the log:
What were the demands of Labor and what was the response of Management?
What tactics were employed during the round to stall or push negotiation?
What were the results?
Round 1: Demands:
Tactics:
Results:
Round 2: Demands:
Tactics:
Results:
Round 3: Demands:
Tactics:
Results:
Name: ____________________________
9th Grade Honors American History
Pd: ______
Ms. Fowler
3. What were the final results of the negotiation? How did they compare to your goal at
the beginning of the negotiation? Which side benefitted most from the contract?
4. Why were you able to or not able to accomplish your goals? From the perspective of
your group, were your goals accomplished?
5. Please rate your own participation under Participation (“student self-participation
score”) on the rubric. If you were to do this again, what would you do differently?
Labor-Management Simulation Rubric
Preparation Work (11)
Labor Union Chart Completed
Strikes Chart Completed
Question #1 Completed
Total:
4
4
Participation (9)
Actively participated in small group demand discussions
Actively participated in large group negotiations
**STUDENT SELF PARTICIPATION SCORE**
Reflection (10)
Question 2 completed with detail and accuracy
Questions 3 – 5 answered with depth and detail
Class successfully negotiated and created a contract
4
4
/20
3
3
3
2
2
2
1
1
1
0
0
0
3
3
3
2
2
2
1
1
1
0
0
0
3
3
2
2
2
1
1
1
0
0
0