Phelps Dodge Case Study

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The Phelps Dodge Corporation owned and operated several copper mines in the American southwest through the 19th and 20th centuries. Throughout the later decades of the 20th century, Phelps Dodge had established corporate dominance in the copper mining industry, but with the American economy beginning a downturn in 1981, the falling price of copper began to have significant impacts on Phelps Dodge profitability. By the spring of 1983, the management team of Phelps Dodge determined that to remain solvent the company need to significantly reduce labor costs and moved to eliminate cost of living adjustments, lower incoming employee pay scales and reduce other employment benefits such as increased medical co-pays from their labor union contracts. …show more content…

In this case, Phelps Dodge management is primarily concerned with the long-term viability and profitability of the company. The management team has internalized a duty to the owners of the mining operations to adjust company practices to reflect current market conditions with the goal of maximizing company profitability and industry dominance. The remuneration and professional reputation of the Phelps Dodge management personnel is also correlated to the general performance of the corporation, thus introducing very personal attributes into conflict. In the view of these mangers, the restrictions placed upon the business operations by the labor unions are a significant hurdle to achieving these goals. This view by the Phelps Dodge management of the labor force as one of many puzzle pieces to be adjusted to further enhance profits and corporate viability is supported by the capitalistic business environment prevalent throughout the United States as well as much of the Western …show more content…

Initially, this recognition appears to take the form of a stable income, despite price fluctuations within the marketplace for copper ore. In the book “Holding the Line: Women in the Great Arizona Mine Strike of 1983”, Barbara Kingsolver recounts several stories by miners of how the management structures in place within Phelps Dodge (and the mining industry in general throughout the southwest) allowed workers to be segregated into hierarchical classes based on race or gender. These stories demonstrate how structural violence within Phelps Dodge exacerbated discriminatory race relations between Anglo and Mexican Americans as well as the newly embroiling gender discriminations brought on by the increasing presence of women within the rank and file of the unionized mine workers in the

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