Chapter 6 Umion Organizing Campaigns 195 Custom Conveyer Di Case: General Materi

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Chapter 6 Umion Organizing Campaigns 195 Custom Conveyer Di Case: General Materials and Fabrication ration (GMFC) acquired a manufa maximum hourly rate. CCD pays for compre custom-built conveyer equipment provides for 80 percent of the cost of depen- th freight forwarding industry. The dent coverage. Turnover is very low,averaging renamed the Custom Con- abou t 5 percent per year from all causes. Two unson (CCD), employs about 120 other plants in Cumberland hire employees 3 supervisors, a gen- with the same types of skills and pay a start uction employees, alsupervisor, a production manager,2 neers he pr engi ing wage of S1i per hour. Most of GMFC's office clericals, and a plant manager. employees have been hired from those plants uction employees are in five semi- The plant earned over $1.25 million after d job classifications: fabricator, welder taxes last year on gross revenues of S9 million. painter, and assembler. The fabricators convert raw material, such ael plates and tubes, into parts using $A.5 million. Materials cost S1.5 million. ses, sheers, numerical-control cuttin Sales have been increasing about 20 percent per year recently. Total labor costs last year were ity maintenance was $0.5 million and depre- um, and the like. Welders take the fab- ciation on the plant and equipment equaled ated parts and create frames for conveyer $0.75 million. Taxes totaled S0.5 million. Labor suhussemblies. They also weld sheet metal and material costs are variable. Maintenance nto complex slides and chutes. Preppers and depreciation are fixed for the next year dean welding slag, grind welds, degrease since about 20 percent of the plant's capac- welded assemblies, and perform other clean- ity is unused. If expansion continues, there is ngactivities necessary before painting. Paint- enough space on the current property to dou- ns spray paint assemblies using a variety of ble the plant size at a cost of about $10 million pints and painting equipment, taking spe- The local labor market can provide workers al care not to paint areas where additional with the required entry-level skills if the opera jurts will be attached. Assemblers, working in tions were to double over the next four years. amis, use the welded subassemblies and fab- Five other competitors manufacture this type naled parts (purchased parts such as rollers, of equipment, but GMFC-CCD has established hains, sprockets, belts, motors, and switches) a reputation for high quality and low cost, and e equipment and test its opera- its market share is expanding. Because most on Then the assemblers travel to the instal-of the conveyer systems are used in airports eon site to combine the subassemblies and and warehouse operations in large cities, trans- portation is required for each unit shipped. b assemble th ist t the completed custom installa e plant is located in Cumberland, a small GMFC paid about $16.5 million for the opera- All employees are from about a 20-mile radius around the f about tion when it was purchased last year s $i. he starting wage for all classifications UNION ORGANIZING aprobationary period. Wages The district director of the United Steelworkers her a 60-day 5 percent 912 Per hour, with an increase to $12.50 a maximum of Si 4 per hour in three in the region in which Cumberland is located He received an e-mail today from at six-n district. t of the employees are earning the

Explanation / Answer

Role of an Union Orgainizer

To form an union inside the organization there are some tactics which an union supporting person should follow.In this case presented above two cases arise as two situations we have to handle when Rebecca and Rick are getting hired by the company and other case they are not getting hired.

Hiring scenario.-

If the two persons of district director are hired by GMFC-CCD then it will be an easier task to contact all the employees and collect data.

The first step would be to contact employees and know their perception towards union formation.You should keep close all the employees who are in favor of union formation and create a demand within them.As the two employees Rebecca and Rick are of different category of employee i.e one is law graduate and another is production worker it will be easier for them to connect to different levels of organization structure.In the first step also you should collect all the information regarding the employees like age ,nature of work, shift etc. and also satisfaction ;level too.

Second step would be adopt an issue to address.Here we can address two issues to start with.One is the minimum wage issue and other is the working environment issue. Being a small company CCD was providing nearly same wage i.e $11 as minimum wage but GMFC was providing only $12 though its a bigger organization as compared to CCD.The GMFC-CCD merger should pay the employees more as it is going to earn a higher profit with the acquisition of the new unit CCD.This can be a comparison strategy to be developed among employees to gain support to form a union.

As some of the workers are not happy with the working environment they are doing job it is another issue to address.Other workers of different industries getting similar wage when they don't have to work in a bad working environment.It is also another point to be instilled among the employee mindset to gain the support.

Third step would be signing cards where employees are asked to support union organizer by signing cards.this card campaign will be an emblem of majority support in union formation.

Fourth step would be winning the election .The signed card from the above step can be used to show federal labor board that the demand for the union is there which ultimately look into the matter to organize election for union.

The final step is negotiation of contract with management after election.This contract should cover everything i.e from wages to all disciplinary actions and rules for union.

Non hiring scenario.

As presented already in the case that when union organizer is not hired by the company Rebecca and Rick has to contact Neumeier to get the contacts of employees. In this case it will be little difficult to get the support but they have to do from outside to sign cards and instill the idea.

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Role of Manager

As a management member it is always your responsibility to handle both the employee agitation and at the same time deal with top management requirement.To handle the situation and suppress the idea of union formation as a manger your role is very important as you act as a communication channel between employer and employee.

You can tell the employees about the benefit they are going to get in the near future as the company sell is going to increase by 20%.This will motivate them to work more as they may get an idea of wage increase and other benefits they are going to get.Management can take a bottom-up approach to involve production level employees in some important decision making which will encourage them and the idea of Union organizing can be diminished.Tell the employees the benefits they are getting like recreational facilities,clubs and all which they wont get after forming Union.The company may lay-off employees if it faces strike by the union for longer period and relist the employee when conditions are smooth which may affect their economic conditions.You can tell employees that joining the union may force them to discuss with the union leader about the issue before coming to the management.To hand;e Neumeier as a manager you can discuss issues faced by him regularly and always try to address the issue in a priority basis which will make him belief the management.You can provide him good responsibility which will encourage him to work instead making the idea of forming union.

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