Management and Labor Unions
HOW ARE SOME COMPANIES ABLE TO SURVIVE THE DEMANDS OF LABOR UNIONS AND MANAGEMENT...WHILE OTHERS, AFTER YEARS OF BATTLE CRUMBLE?
Abstract
The purpose of this case study is to examine three different industries which are the Automotive, Hotel, and Airline and their relationships between upper management and labor unions. The six companies that were examined are Ford and General Motors, JW Marriot and Hilton Hotels Corporation, and Southwest and Delta Airlines. The history of unions and management will be examined and explained. The study will attempt to explain how three companies have managed to have a successful relationship with their unions, and how the other three have managed to repeatedly failed in their attempt to find a peaceful middle ground.
How are Some Companies able to survive the Demands of Labor Unions and Management… While Others, after Years of Battle Crumble?
The recession of late 2007 has affected every aspect of life in America. Over the past three years, the Automotive, Airline, and Hospitality industries have all adversely suffered due negative economic conditions. One common thread that they share is a constant struggle between management and labor unions. Some companies manage to put their differences between executive and union leadership aside in order to work together for the common good of the company. On the contrary, other companies in the same industries cannot seem to make their relationship work. In order to understand why this phenomenon happens, one must examine the positive actions of some companies, such as Ford Motor Corporation (Ford), JW Marriot, and Southwest Airlines. What measures do these companies take to avoid having to accept government bailouts or declare bankruptcy? In comparison, other companies like General Motors (GM), Hilton Corporation, and Delta have dealt with strikes, multiple declarations of bankruptcy actions, and need of financial assistance through federal bailouts. How are some
Abstract
The purpose of this case study is to examine three different industries which are the Automotive, Hotel, and Airline and their relationships between upper management and labor unions. The six companies that were examined are Ford and General Motors, JW Marriot and Hilton Hotels Corporation, and Southwest and Delta Airlines. The history of unions and management will be examined and explained. The study will attempt to explain how three companies have managed to have a successful relationship with their unions, and how the other three have managed to repeatedly failed in their attempt to find a peaceful middle ground.
How are Some Companies able to survive the Demands of Labor Unions and Management… While Others, after Years of Battle Crumble?
The recession of late 2007 has affected every aspect of life in America. Over the past three years, the Automotive, Airline, and Hospitality industries have all adversely suffered due negative economic conditions. One common thread that they share is a constant struggle between management and labor unions. Some companies manage to put their differences between executive and union leadership aside in order to work together for the common good of the company. On the contrary, other companies in the same industries cannot seem to make their relationship work. In order to understand why this phenomenon happens, one must examine the positive actions of some companies, such as Ford Motor Corporation (Ford), JW Marriot, and Southwest Airlines. What measures do these companies take to avoid having to accept government bailouts or declare bankruptcy? In comparison, other companies like General Motors (GM), Hilton Corporation, and Delta have dealt with strikes, multiple declarations of bankruptcy actions, and need of financial assistance through federal bailouts. How are some
References: Albrecht, S. L. (2004). We are on Strike! The Development of Labor Militancy in the Airline Industry Anonymous, (1998). Can GM and the Unions take each other on trust? The Economist, 348, 53- 54. Bacon, D., (1998, September). Has Marriot’s Neutrality Agreement Covered Union Busting? Retrieved from http://dbacon.igc.org/unions/17marriot.html Bensinger, K. (2009, April 14). Ford seen on road of its own; Firm’s bailout refusal and its Outlook buoy investors’ confidence Bradsher, K. (1998, June 19). Big 3 Copy One Another Except in Labor Relations. New York Times Burton, C., (1991). Meeting the Five Quality and Cooperation Challenges. The Journal of Quality and Participation, 14, 40-46. Bryce, H. G. (2009, September 11). UAW a hard sell for Ford: Some say automaker’s Success hinders more concessions for union Chaison, G. (2007). Airline Negotiations and the New Concessionary Bargaining. Journal of Labor Research, 28, 642-657. Clothier, M. (2010, August). Ford will hire more UAW jobs than contracts required. Bloomberg, Retrieved from, http://www.bloomberg.com/news/2010-08-04. Cohen, C. I., & Fritts, J. C. (2003). The Developing Law of Neutrality Agreements. Labor law Journal Craft, J. A. (2001). Union Violence: A Review and Critical Discussion. Journal of Labor Research, 23, 679-688. Cooke, W. N. (1994). Employee Participation Programs, Group-Based Incentives, and Company Performance: A Union-Nonunion Comparison Davis, M., (2003, June). A History of the Ford Motor Co. Ward’s Auto World, Retrieved from http://www.wardsautoworld.com/ar/auto_history_ford_motor. Delaney, J. T., & Huselid, M. A. (1996). The impact of human resource management practices on perceptions of organizational performance Dolan, M. (2010, January 26). Ford to Begin Hiring at New Lower Wages. Wall Street Journal, p Dolan, M. (2010, May 7). UAW Expects to Claw Back Some Concessions From Big Three. Daily Bankruptcy Review, Retrieved from http://www.proquest.umi Dolan, M. & Bennett. (2002, November 2). Corporate News: Ford to Seek Rule Changes After Setback. Wall Street Journal, p. B 2. Gunderson, M Gittell, J.H. , Von Nordenflycht, A., and Kochan T. (2004). Mutual Gains or Zero Sum? Labor Relations And Firm Performance in The Airline Industry Kizilos, M., & Yonatan, R. (1997). The Effects of Workplace Unionization on Worker Response to HRM Innovation Kleiner, D. J., (2010, November). “Hilton Hotels Corporation,” The Handbook of Texas Online/The State Historical Association Koch, M. J. (1994). Improving Labor Productivity: Human Resource Management Policies Do Matter Kovaleski, D. (2005). State of the Unions. Meetingsnet.com. 21-24. Levenstein, A. (1950). Satisfaction at General Motors. Nation, 150, 594-596. Lieb, R. C.(1982). The Changing Nature of Labor Management Relations in Transportation. Lucas, J.J. & Furdek, J. M. ( 2010). Did The Labor Contracts Between The UAW and The Big Automakers Work? American Journal of Business Eduacation Plovnick, M. S. & Chaison, G.N. (1985). Relationships Between Concession Bargaining and Labor-Management Cooperation Roche, W. K. & Geary, J. F. (2002). Advocates, Critics and Union Involvement in Workplace Partnership: Irish Airports Rubinstein, S. A. (2001). Unions As Value-Adding Networks: Possibilities for the Future of U.S Schaefers, A. (2010, October 19). Strike threatens convention. Tribune Business News. Retrieved from http://www.proquest.umi.com. Scherer, J. (1956). The Union Impact on Wages: The Case of The Year–Round Hotel Industry. Industrial & Labor Relations Review, 9, 213-224. Shogan, R. (2006). Labor Strikes Back. American History, pp. 36-42. Slichter, S. H., Healy, J. J., and Livernash, E. R., (1960). The Impact of Collective Bargaining on Management. Washington. DC: Brookings Institution. Verma, A Warner, F. (1998). Lawsuit Seeks Arbitration And Opens a New Front In Battle With Union. Wall Street Journal, p Welch, D., Beucke, D., Kerwin, D., Arndt, M., Hindo, B., Thornton, E., Kiley, D., & Rowley, I. (2005, May) Wenchuan, L., Guthrie J. P., and Maccurtain, S. (2009). Unions and The Adoption of High Performance Work Systems: Does Employment Security Play a Role? Industrial and Labor Relations Reviews, 63(1), 109-127. Yonan, A, & Gima, C. (2010, October 14). Hilton Hawaiian Village workers go out on strike. Honolulu Star-Advertiser, Retrieved from http://www.proquest.umi.com Welch, D., Beucke, D., and Kerwin, K. (2005, May 9). Why GM’s Plan Won’t Work. Businessweek, Retrieved from http://www.buisnessweek.com.