The Lincoln Electric Company is one of the most successful, well-managed, manufacturing companies world-wide. The company’s organizational culture has played a key role in its continued success over the years. Because of its strong culture, the company has been able to maximize employee productivity which ultimately leads to its ability to offer their products at lower prices than their competitors and maintain a stable market share.
GMFC is hoping to open a new plant within the United States that would specialize in recreation vehicles. Management would like to open the factory of 500 employees as a nonunion plant but they are worried that the United Automobile Workers (UAW) and other unions will attempt to unionize. There are many benefits to keeping the plant union-free such as, higher profits, flexible policies to better serve employees, and higher productivity. This paper will look at specific recommendations GMFC can do to prevent unionization at the new plant and still be competitive in the industry.
The employees were having issues and company intermingling had proven to not change without an intervention unless the workers take things into their own hands. Acknowledgements to some valiant employees, where a union was discussed and the idea came to life (Featherstone, 2012).
Unions have an extensive history of standing up for workers. They have advocated rights of steelworkers, coal miners, clothing factory employees, teachers, health care workers, and many others. The labor movement is based on the idea that organized workers as a group have more power than individuals would have on their own. The key purpose of any union is to negotiate contracts, making sure workers are respected and fairly compensated for their work. “In theory” unions are democratic organizations, resulting in varying inner authority. Workers look for security within a job a...
GMFC has two main choices, either figure out how to play or they pay, meaning they done one of five options, they either: absorb the cost, improve current plan efficiency, shift costs, eliminate ancillary health care benefits or end health plan sponsorship (Ratcliffe & Stover, 2015). If GMFC chooses the latter option of the five options, not only would there be significant labor relations problems, but that the penalty would equate to $2,000 per employee per year, minus the first 30 initial employees. Thus, employers are likely to pay a much lower penalty if they offer coverage than if they don’t offer coverage. This is important for GMFC because paying an entire year in violations would cost GMFC $99,941,998.80 which would make GMFC decreasingly able to compete if its total violation costs continue to increase because regulatory mandates become more and more cumbersome for not providing health benefits to employees. Additionally, this approach would affect GMFC’s attractiveness and retention of its high value employees, leading to other internal problems. To combat this GMFC would end up spending money on other compensations or an increase in overall wages of every employee. So in order to avoid the penalty and its astronomical costs, GMFC’s
GMFC Company has many divisions and more than 50,000 employees. Initially, the company health care proposal had a lifetime advantage of $2 million per enclosed employee or dependent. However, the company only extends coverage to dependents enrolled to a degree program. Subsequently, the coverage benefits individuals up to the age of 22 years. However, PPACA required GMFC to alter its coverage to house new advantages and age limit demands. According to GMFC, changing the current plan coverage to accommodate age limit requirements and new benefit will lead to additional cost. Therefore, the company is considering abandoning health care coverage and subscribing to federal penalties. If GMFC adopts such an action, employees will purchase insurance
“We as a corporation cannot afford to have union automobile plants in the United States any more than the union can….We cannot compete with a nonunion company building automobiles at the prices I think they can do it at in the country” (pg.103 Reynolds, 1986). Alfred Warren, GM Labor Relation Vice President was unable to conceive the thought of nonunion companies making automobiles in the United States, but that day is here. Right-to-work states have seen a significant increase in the amount of automobile companies opening plants in their states. These jobs are not controlled by the UWA and give companies true freedom of the way they conduct business. The question however is how and why has the idea of nonunion companies creating automobiles in the United States become popular and a success.
According to Mello pg. 558, U.S. Companies have implemented these strategies to avoid being unionized. First the move traditionally held jobs from the U.S. to developing countries overseas to take advantage of lower labor costs. Secondly, employers change their employment relationship from being ful...
The top employees may not be happy everyday with their organization. However, employees who are happy most of the time with their employers will give forth a great effort. They will come to work with a pleasant attitude. They will work to meet their goals. They will actually care enough to produce ideas to benefit the company. The employees who are content most of time with their employer will be more loyal than the discontent employee will. The old saying states, “It is easier to catch a bee with honey than vinegar.” Stress creates incivility and incivility contributes to stress. Organizations must acknowledge that satisfied and respected employees in a less stressful workplace will contribute to a successful and cost-efficient establishment.
...ut we can instill in our children an appreciation for hard work and doing a good job at whatever they do. A little less complaining and more willingness to give a little on both employees’ and employers’ parts would certainly go a long way. Treating each other with respect and appreciation helps to create a meaningful working relationship and fosters loyalty that is so often lacking in today’s workforce.