Introduction As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization. The case study of GMFC provides an example of a company attempting to avoid unionization of its workers. GMFC is expanding by building a new U.S. plant which will manufacture motorized recreational equipment. The company plans to hire about 500 production workers to assemble mechanical components, fabricate fiberglass body parts, and assemble the final products. In order to avoid the expected union campaign by the United Automobile Workers (UAW) to organize its workers, GMFC must implement specific strategies to keep the new plant union-free. GMFC’s planning committee offers suggestions with regards to the plant’s size, location, staffing, wages and benefits, and other employee relations issues in order to defend the company against the negative effects of unionization and increase... ... middle of paper ... ...pment, structure, process. (11th ed.). McGraw‐Hill. ISBN: 978‐0078029158 Graham, L. A. (2008). How foreign-owned auto plants remain union-free. New Labor Forum (Murphy Institute), 17(3), 58-66. doi:10.1080/10957960802362738 McMahon, T. (2012). State of the anti-union (cover story). Maclean's, 125(13/14), 54. Saltzman, G. M. (1995). Job applicant screening by a Japanese transplant: A union-avoidance tactic. Industrial & Labor Relations Review, 49(1), 88. Retrieved from http://search.proquest.com/docview/236383911?accountid=38569 Selecting new employees in nonunion operations. (1996). Management Report for Nonunion Organizations (Wiley), 19(5), 5-6. Three keys to union prevention. (1996). Management Report for Nonunion Organizations (Wiley), 19(3), 6. Union-prevention strategy: Sell your benefits. (2010). Management Report for Nonunion Organizations (Wiley), 33(9), 6.
Tensions between union supporters and management began mounting in the years preceding the strike. In April of 1994, the International Union led a three-week strike against major tracking companies in the freight hauling industry in attempts to stop management from creating $9 per hour part-time positions. This would only foreshadow battles to come between management and union. Later, in 1995, teamsters mounted an unprecedented national union campaign in attempts to defeat the labor-management “cooperation” scheme that UPS management tried to establish in order to weaken the union before contract talks (Witt, Wilson). This strike was distinguished from other strikes of recent years in that it was an offensive strike, not a defensive one. It was a struggle in which the union was prepared, fought over issues which it defined, and one which relied overwhelmingly on the efforts of the members themselves (http://www.igc.org/dbacon/Strikes/07ups.htm).
The paper will discuss minicases on ‘The White-Collar Union Organizer’ and ‘The Frustrated Labor Historians’ by Arthur A. Sloane and Fred Witney (2010), to understand the issues unions undergo in the marketplace. There is no predetermined statistical number reported of union memberships in this country. However, “the United Bureau of Labor Statistics (BLS) excludes almost 2 million U.S wages and salary employees, over half of whom are employed in the public sector, who are represented at their workplaces by a union but are not union members. Not being required to join a union as a condition of continued employment, these employees have for a variety of reasons chosen not to do so. Nor do the BLS estimates include union members who are currently unemployed” (Sloane & Witney, 2010, p.5). Given this important information, the examination of these minicases will provide answers to the problems unions face in organizational settings.
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
The primary objective of a trade union is to improve the well being of its members. They were formed to counter the superior economic power of the employers. It has long been recognised that the market dominance of employers could onl...
The documentary Final Offer (1985) covers the 1984 contract negotiations between the United Auto Workers Union (UAW) and General Motors (GM). The film follows head and chief negotiator of the Canadian chapter of the UAW, Bob White, as he attempts to negotiate a reasonable contract with GM management for the Canadian union members. In contrast to the films previously mentioned, opposition comes not only from management, but from union members and even the American sector of the UAW. During contract negotiations, the ability to strike is a significant bargain tool for the Bob White as it gives him power over the managers. As the contract negotiations begin to threaten American jobs, the main branch of the UAW threatens to pull strike authorization. Clearly, contract negotiations can be a complex procedure as many factions and conflicting interests prove to be a challenge. The film contains many other details relevant to the collect bargaining process. Fraundorf (1990) lists some of these
This essay examines both the advantages and disadvantages of unions and non-unions in the organizational environments. It discusses the differing effects unions and non-unions have in regards to communication, morale, productivity, and employee management relations within the workplace. It also looks at the role unions have in private industry and how the changing plane of their respective industries impacts them. In addition to this, it looks at why these big changes are taking place and the numerous reasons for them. The landscape of unions and non-unions is shifting and this research essay looks at the overall effect the corresponding changes will have in the future of Canada.
It has been certainly established that globally, unionization has declined. This paper discusses the trends and the factors that led to the decline in unionization worldwide
Cindy you bring to light some interesting points about return on investment for unionized facilities. Based on your writing it is clear that companies as well as unions must be happy with their situation as it relates to performance and compensation models. You mention that it employees are not happy they will seek union representation to mitigate their concerns. I don’t necessarily agree that this is the only way to iron out employee issues. One way to do this without employing union representation, is to have an employee counsel that works directly with company management to apply both company wants and employee needs. These employee councils can easily relate to the local labor needs and quickly react to company requirements. Whereas union
The opponents of the use of labor unions for collective bargaining in today’s workplace argue that the irrelevance of these organizations is demonstrated n the recent steady decline of the rate of unionization. One of the main arguments used to show that labor unions are outdated impediments to progress is the ever increasing managerial hostility and attitudes towards unions. This hostility and attitude is a by-product of negativity as well as other factors or a consequence of combination of factors. Managers have continued to show their negativity towards labor unions because of differences in market composition and structures, changes in labor laws, organization size, differences in public policies, union philosophies, and the impacts of unions on wages (Campolieti, Gomez & Gunderson, 2013, p.100).
General Motors (GM) has earmarked $554 million dollars for production at Canadian Unifor union staffed plants. The firm will invest the bulk of the funds in the Oshawa and St. Catherine’s facilities. Unifor reached this tentative agreement just short last Monday’s deadline. Union members are voting whether to accept the deal today. Although, the agreement has reached a vote, both sides made confessions. The voter is significant in that it will affect works at Fiat Chrysler and Ford if ratified, as these two manufacturers are next on Unifor’s agenda. (See also, General Motors Reaches Agreement With Canadian Labor Union)
The advantage of unionized workforce is better wages, shorter workweek, and safer workplace. According to U.S. Bureau of Labor Statistics the medium weekly income for full time employee in 2010 for a union worker was $917 compared to $717 non-union worker. In addition, a survey taken by the National Compensation Survey in 2009 that 93% of unionized workers were entitled for benefits compared to 69% of non-union workers represented by 101 million private industry workers and 19 million local and state government workers. Unionized workers has more power as a cohesive group compared to an individual which can help negotiate better wages, improve health and safety issues, benefits and working condition with the management of the company (Keller,
Flanagan, R. J. (2005). Has Management Strangled U.S. Unions? Journal of Labor Research, 26(1), 33-63.
According to Mello pg. 558, U.S. Companies have implemented these strategies to avoid being unionized. First the move traditionally held jobs from the U.S. to developing countries overseas to take advantage of lower labor costs. Secondly, employers change their employment relationship from being ful...
Unions have paved the way to the benefits we all receive today. For the past 150 years they have been setting the standards that benefit us all. As workers today we have benefited from their fight. We have the luxuries such as maternity leave, vacation pay, access to benefits, workers’ rights in the workplace, social wage, protection from discrimination, and social inequality. We also have regulations set for workplace safety standards and protection against discrimination and harassment.
Unions allow the workers to ask for their rights as employees. Unions can enforce job security standard in a relatively fast and inexpensive forum. Unions can contest disparate treat...