Question

Closing Case: “Give and Take”

Case Summary

The general view of management and labor unions is that they are antagonists: When one wins, the other loses—and vice versa. In reality, of course, there are many situations where businesses and unions coexist quite peacefully. One notable example came from Harley-Davidson, which needed to reduce its overall costs to remain competitive.

The York factory was a key site for cost reduction. The factory was in dire need of modernization, the labor contract governing York workers called for wages above industry average, and the factory had more than sixty different job classifications, and the union contract made it nearly impossible to move workers across classifications. One of the first options Harley considered was simply closing the York plant and moving its jobs to the firm’s newest factory in Kentucky. The International Association of Machinists and Aerospace Workers, however, persuaded the company to renegotiate a new arrangement that would allow some of the union workers to retain their jobs.

Case Questions (List question and answer.)

1.    Do you think the Harley deal was too one-sided? Why or why not?

2.    If you were a Harley or GM employee and union member, would you have voted for the new deal? Why or why not?

3.    Do you think that it is appropriate for a government entity (such as the state of Pennsylvania) to take an active role in union-management negotiations? Why or why not?

Chapter 11 Multiple-Choice Quiz" aria-describedby="msf1-previous-desc" style="text-decoration: none; border: 1px solid rgb(199, 205, 209); border-top-left-radius: 3px; border-top-right-radius: 3px; border-bottom-right-radius: 3px; border-bottom-left-radius: 3px; transition: background-color 0.2s ease-in-out; display: inline-block; position: relative; padding: 8px 14px; line-height: 20px; text-align: center; vertical-align: middle; cursor: pointer; overflow: hidden; text-shadow: none; -webkit-user-select: none; float: left;">PreviousNext

Answer 1

1.    Do you think the Harley deal was too one-sided? Why or why not?

The Harley approach to deal with union employee was too onesided as per the case suggestions. The management didn't try to negotiate with the union to bring down the wage to the industry average rather it planned to close down the plant operations at York city and shift the plant to a new location. This approach is a pessimistic approach where the plant management made up a mind that negotiation will not help with the union and to bring down the costs only one possible ways is the wage restructuring. they could have thought of the different production method change to cut costs. These facts suggest that the approach is one-sided.

2.    If you were a Harley or GM employee and union member, would you have voted for the new deal? Why or why not?

As an employee or union member, I should vote for the renegotiation deal. The closure of the plant will make employees lose their jobs and some employees have to relocate to the new plant location. This will make the company reputation go down and there may be an agitation which will grow among the employee and union for shifting the plant. It is better to take little less salary and work for the plant rather losing your job.

3.    Do you think that it is appropriate for a government entity (such as the state of Pennsylvania) to take an active role in union-management negotiations? Why or why not?

The government entity should take part in negotiations between union and management.Authorised government personnel are well aware of union and labor laws and can give a proper advice to the discussion panel. Any decisions made after the negotiations can be documented and have an instant approval by the government officials which saves a considerable amount of time. Government officials help in making decisions faster which would be not one sided as they are experienced with the applicability of rules and regulations.

Please Comment if any doubt.