Definition
Featherbedding refers to practices and agreements within employment or labor contracts that require the employer to pay workers for unperformed or unnecessary work. This term is often used in the context of unions which may enact policies to preserve jobs by limiting the use of new technologies or maintaining work schedules that do not reflect actual business needs.
Examples
- Railroad Industry: A classic example involves railway unions requiring railroads to maintain employment levels for firemen on diesel engines even when the job became obsolete following the transition from steam to diesel engines.
- Newspapers: Another example involved newspaper distribution where modern equipment could handle the job efficiently, but union agreements mandated that additional, outdated manual labor still be used.
- Construction: In construction, featherbedding might involve retaining additional crew members even when a project can be completed by a smaller team with the help of new machinery.
Frequently Asked Questions (FAQs)
Q1: Why do unions engage in featherbedding?
Unions may engage in featherbedding practices to protect their members’ jobs and ensure job security, especially during technological advancements or organizational changes that could lead to layoffs.
Q2: Is featherbedding legal?
Featherbedding is a complex legal issue that varies by jurisdiction. It can be seen as anti-competitive and wasteful, and sometimes it is subject to legal disputes and regulations.
Q3: Who benefits from featherbedding?
Union members benefit from job security, while employers and consumers may suffer from inefficiencies and increased costs.
Q4: How can companies combat featherbedding?
Companies often negotiate with unions, implement technological advancements despite resistance, and, in some cases, seek legal recourse to challenge featherbedding practices.
Q5: What impact does featherbedding have on an industry?
Featherbedding can lead to higher operational costs and reduce the economic competitiveness of an industry by making it difficult to adopt new efficiencies and technologies.
- Union Shop: A place of work where employers may only hire union members or where employees must become union members within a certain period of being hired.
- Collective Bargaining: The process by which unions and employers negotiate the terms and conditions of employment.
- Technological Unemployment: Job loss directly associated with technological advancement and automation of functions traditionally performed by workers.
- Job Security: Assurance that an individual will keep their job without the risk of becoming unemployed.
- Work Rule: Regulations and policies established in a workplace, often stipulated by collective bargaining agreements.
Online References
Suggested Books
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“Labor Guide to Labor Law” by Bruce S. Feldacker and Michael J. Hayes
A comprehensive guide to labor law and collective bargaining agreements, including a discussion on issues like featherbedding.
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“The Subterranean Railway: How the London Underground Was Built and How It Changed the City Forever” by Christian Wolmar
Presents historical examples of featherbedding in the context of the expansion of transportation technology.
Fundamentals of Featherbedding: Labor Economics Basics Quiz
### Which industry provides a classic example of featherbedding regarding the retention of unnecessary jobs?
- [x] Railroad Industry
- [ ] Health Care Industry
- [ ] Food Service Industry
- [ ] Legal Industry
> **Explanation:** The railroad industry provides a classic example where firemen retained their jobs on diesel engines even after their roles became obsolete.
### What is a common reason unions might enforce featherbedding practices?
- [ ] To increase consumer prices
- [x] To protect job security for their members
- [ ] To improve worker productivity
- [ ] To reduce operational costs
> **Explanation:** Unions enforce featherbedding practices primarily to protect the job security of their members, ensuring their members continue to have employment even in changing technological environments.
### How is featherbedding typically viewed from an economic standpoint?
- [ ] As a productivity booster
- [x] As an inefficient and wasteful practice
- [ ] As a means to reduce employment wages
- [ ] As a method to increase consumer satisfaction
> **Explanation:** Featherbedding is typically viewed as inefficient and wasteful because it requires payment for unperformed or unnecessary work, leading to higher operational costs.
### Featherbedding can sometimes lead to what type of legal disputes?
- [ ] Criminal lawsuits
- [x] Employment and labor law disputes
- [ ] Family law disputes
- [ ] Tax evasion cases
> **Explanation:** Featherbedding can lead to employment and labor law disputes due to its impact on efficiency, costs, and fair competition.
### Which term describes the negotiation process between unions and employers over work conditions?
- [ ] Market Analysis
- [x] Collective Bargaining
- [ ] Conflict Resolution
- [ ] Public Relations
> **Explanation:** Collective bargaining is the process where unions and employers negotiate terms and conditions of employment, often including discussions around practices like featherbedding.
### Featherbedding sometimes restricts what aspect of a company's operation?
- [ ] Marketing strategies
- [ ] Financial audits
- [x] Technological advancements
- [ ] Employee training programs
> **Explanation:** Featherbedding can restrict the adoption of new technologies within a company, as unions may mandate the retention of outdated work practices to preserve jobs.
### What is a possible consequence of featherbedding on consumer prices?
- [x] Increase in consumer prices
- [ ] Decrease in consumer prices
- [ ] No change in consumer prices
- [ ] Improved product quality without price change
> **Explanation:** Featherbedding can lead to higher operational costs for companies, which are often passed on to consumers through increased prices.
### What term refers to job loss directly due to technological advancement?
- [x] Technological Unemployment
- [ ] Wage Stagnation
- [ ] Economic Displacement
- [ ] Occupational Hazard
> **Explanation:** Technological unemployment refers to job losses that occur primarily due to technological advancements automating tasks previously performed by human workers.
### Which entity might seek to challenge featherbedding practices through legal recourse?
- [x] The employer
- [ ] The consumers
- [ ] The government
- [ ] Advocacy groups
> **Explanation:** Employers might seek legal recourse to challenge featherbedding practices, aiming to remove inefficiencies and reduce operational costs.
### Which aspect of employment does featherbedding aim to secure?
- [x] Job Security
- [ ] Higher Salaries
- [ ] Flexible Working Hours
- [ ] Enhanced Job Training
> **Explanation:** Featherbedding primarily aims to secure job security for employees, ensuring that their jobs are preserved despite changing work conditions or technological advancements.
Thank you for exploring the intricacies of featherbedding and tackling our quiz questions. Keep delving into employment law and labor-economic principles to better understand the evolving workplace dynamics!
