The company entered into new deals with both the CAW and the UAW in order to shed some of the legacy costs (Merx, 2009). The deal in the United States gave the union-run Retiree Health Care Trust a 17.5% stake in the post-bankruptcy version of GM and a warrant for another 2.5% stake in exchange for GM's $20 billion obligation to the trust. In other words, GM has swapped out what was essentially a debt owed to the retirement trust for equity, reducing their burden by $20 billion (Associated Press, 2009). The company asserts that the deal will bring its total hourly labor costs in line with those of Toyota. Information with respect to GM's labor costs is highly transparent. The story is a major news item and the firm is up front with its cost structure, both in the media and on its website. The major decisions have already been taken. The company needed to dramatically lower its costs, and by swapping out $20 billion of those obligations for equity, they were able to do so. Going forward, General Motors must keep these costs from escalating in future, in order to remain competitive with Toyota and other competitors. For General...
The latter have made substantial sacrifices in order to maintain jobs and will want the company to return the favor when conditions improve. General Motors still faces pension and health care costs for existing workers. If it can find creative ways to keep these costs down lower than similar costs for competitors, it will be able to allow the union wage increases and develop a competitive advantage at the same time.
(ILO Report, 2006) In reality the global opportunities are now making employees seek independence. While on one hand the employers look out for more flexibility and accommodative modes of production from employees while on the other hand the collective representation and bargaining power of employees post globalization is wanting. Added to that, the casual labor, seasonal employment and specific purpose contract-based employment have come in vogue. The boundary between the
Wal-Mart and Employee Rights Labor cost is always considered as the main issue, mostly in case of employees' unionization at Wal-Mart. This was noticed when Wal-Mart showed a remarkable earning at the rate of 44% per annum for its labor working on hourly basis. Another point which brought this issue ahead was when the sales clerk of Wal-Mart in 2001 earned wages below Federal Poverty Scale. According to an issue of
Labor Relations in Public Sector Collective bargaining in the public sector organizations will be quite different from that of the private sector organizations. The factors that drive the collective bargaining process in the private sector might not be present in the public sector. Private sector organizations are more concerned on the profit maximization philosophy whereas the public sector firms are more focused on serving general public therefore their priorities would be
Furthermore these employers normally operate in third-world countries, where the cheapest possible labor is available as a result of the high demand for employment. These employers normally thrive in the import/export industry, where very high profits are to be made from goods produced at very low labor costs. The employment situation is normally short-term, and laborer turnover is high. These are not elements that affect the profit of the
Labor Relations Steps in preparing for first round of bargaining with the union In preparing for the first round of bargaining with the union would be to review the proceedings from previous negotiations with the company or other companies. In reviewing the minutes or notes available from previous negotiations, the managers of the company will be able to analyze the arguments being presented by the union to determine whether they were covered
The internal split amongst major union movements, however, has not helped. Both major groups have essentially the same goals, but clearly differ on the best ways to achieve those goals. Critics contend, however, that the movement needs solidarity in the face of declining relevance. The split, despite the ideological differences, also had a personal component to it, and this weakness at the top levels of union leadership inhibits their ability
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