Case study 8 | Human Resource Management homework help
Read the BUSINESSWEEK CASE: A COMEBACK FOR THE UAW (POSTED BELOW) Answer the three questions at the end of the event in a 2 page disquisition. Follow the purpose guidelines underneath. Project Requirements: 1.Use the Event Study Template. 2.Complete a 2 page disquisition not including the appellation page and allusion page BUSINESSWEEK CASE A Comeback for the UAW? As strikes go, Chrysler’s wasn’t all that solemn. When Chrysler’s assentmentized workers nationwide left their assembly line positions in existing October 2007 to expostulate the holdup in securing a new four-year drudge abridge, the media reported “the cooperate senior UAW walkout in a month”—but it appeared further like a covet lunch following a opportunity picketing during dessert. By nightfall the parties had follow to an conformity, and the instant early the newspapers chorused such headlines as “It’s a New Day in Detroit” and “Detroit’s 3 Finally on Track.” CHAPTER 14 Collective Bargaining and Drudge Relations 429 430 PART 5 Meeting Other HR Goals Really? It appears to me we’ve recognize those headlines a hundred spans in the late 25 years. And each span they’re wrong. Many observers appear to venerate that the Big Three’s woes are all tied to assentment allowance and the benefits its bluecollar workforce receives. But those are not their biggest problems. Opportunity the new conformitys following a opportunity the UAW could help, trenchant drudge costs won’t renew what ails Detroit. In fact, honest the inconsistent could fall. General Motors has cried loudest encircling the “unfair” wage utility the Japanese automakers like. It has bemoaned what it sees as a $1,500 to $1,900 figure disadvantage (ascribable to erratic and retiree heartiness custody costs) on every emanation it sells. Detroit spends approximately $78 an hour in blue-collar allowance and benefits, opportunity Toyota Motor spends near than $50. But a plant’s emanationivity may be further grave than enucleateed allowance remunerated there. Auto executives distinguish legitimate drudge costs aren’t framed honest by the per-hour pay but are measured by how divers vehicles the fewest workers can construct in one change. And consider Ford’s enucleateed minivan try. No substance what Ford spent to enucleate or construct a new minivan, it was DOA at Ford and Lincoln-Mercury dealerships. When a new vehicle comes to chaffer and fails, the creator loses hundreds of millions—if not billions—no substance what its drudge costs are. Much has been made of the occurrence that Detroit already spent fur further than Japanese automakers in the United States for heartiness insurance. Yet GM admitted something grave following the assentment abridges were badgeed: Fully 56,000 of its fostering 74,500 blue-collar workers achieve be eligible for concavity by 2011. So the middle age of GM’s factory workers achieve be hence down eagerly in the close future. Theoretically this would inferior costs associated following a opportunity heartiness custody per employee. At leading scan, this looks to be a bulky financial win for General Motors, and in the close account it is. However, it could all too largely convey the United Auto Workers roaring back to conduct. Here’s how it is likely to backfire. First, retired autoworkers don’t get to control on new abridges. Second, up to 56,000 of GM’s 74,500 workers potentiality be replaced either by the span of the instant assentment negotiations or by the 2015 negotiations at the ultimate. Do you gard the new and younger workers, remunerated near and getting fewer benefits, achieve fight to practise the retirees’ benefits? A younger worker potentiality well-behaved-behaved reach cheated and insubmissive. This span encircling, the UAW could badge up the American workforce of outlandish car companies for the selfselfsame conclude. The Detroit News reported that a unknown inner Toyota report written by Seiichi Sudo, moderator of Toyota Engineering & Manufacturing for America, suggests that Toyota needs to get its drudge costs down to whatever the prevailing allowance are in the tract-of-land where the occurrenceories are located. If Toyota can affect further quickly to cut its drudge costs because its $25 hourly wage is violent compared to GM’s possible $14 in some positions, then GM is putting downward constraining on Japanese allowance. So the Japanese could use GM’s inferior allowance to put downward constraining on some of their employees—and those earning Japanese allowance potentiality start to gard that assentment representation isn’t a bad effect. SOURCE : Excerpted from Ed Wallace, “A Comeback for the UAW?” BusinessWeek, November 6, 2007, downloaded from General Reference Center Gold, http://find.galegroup.com . Question 1. Why does this interest writer venerate assentment membership potentiality befollow further attrerratic to workers at auto companies in the forthcoming? Do you assent? Why or why not? 2. Besides restoration costs, what HRM challenges do auto companies countenance? Which of these challenges involve drudge relations? 3. Suppose GM or Toyota (cull one) remunerated you to advise the troop encircling its policy for afloat following a opportunity or rival the UAW. What issues would you advise the troop to emphasize? What policy would you recommend?