You Manage It! 3: Customer-Driven HR When Is a Team a Union?

Amalgamated Tool, a nonunion manufacturer of auto parts in Michigan, suffered such significant financial losses in 2006 that it froze the pay of all its employees to conserve cash. The company also asked its employees to pay a larger share of their health insurance costs. The employees were extremely upset by these actions, and both morale and productivity declined.

To improve morale, Amalgamated’s management decided to form several problem-solving employee teams. After meeting to discuss the problems at Amalgamated, the teams presented management with suggestions on how to provide pay raises and health insurance to employees fairly and efficiently. Each problem-solving team had a leader elected by the other team members to present the team’s suggestions, but only about 20 percent of Amalgamated’s employees were asked to serve on a team. The teams’ suggestions were largely adopted by management, and morale and efficiency went up the next year.

On behalf of some dissatisfied Amalgamated employees, a local union filed an unfair labor practice claim stating that management had illegally used the problem-solving teams to form a management-dominated union, in violation of a provision of the Wagner Act that states: “It is an unfair labor practice for an employer to dominate or interfere with the formation of any labor organization or contribute financial support to it.”

The National Labor Relations Board sustained the union’s position and ordered Amalgamated to cease and desist using its problem-solving teams.

Critical Thinking Questions

  1. 15-18. Why did the local union object to the way Amalgamated’s management used problem-solving teams?

  2. 15-19. What is the difference between a team and a union?

  3. 15-20. To avoid the NLRB’s cease-and-desist order, what should Amalgamated’s management have done differently in using problem-solving teams?

Team Exercise

  1. 15-21. Students form into groups of four to six members and role-play National Labor Relations Board members. Each group discusses whether Amalgamated violated the Wagner Act’s prohibition of a company “dominating a union or providing financial support to it.” Compare conclusions and arguments across groups.

Experiential Exercise: Individual

  1. 15-22. In the United States, company-dominated unions, called company unions, are prohibited under federal labor law. Until the 1930s, companies organized these unions to let employees experience belonging to a union, with the expectation that the employees would then not have a need for an independent union to represent them and make demands that management did not want to fulfill. As indicated in this chapter, company unions are the major form of union representation within Japan, and they function effectively within the context of the Japanese economic system. Do you think a company union could represent your interests to management in the same way an independent union could? Would it make sense for employees to have a choice between a company union and an independent union? Be prepared to share your answers to these questions with the class.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
3.145.46.109