Executive Decision - March/April 2008 - (Page 17)

you be the judge I dos and don’ts of unionization costs of what the union is demanding. Make certain you understand what may affect corporate operating flexibility. Identify the positions beyond which you will not go. Plan ahead for the possibility the union will call a strike. Plan how to work through a major disturbance. Plan how you will update customers and potential customers, update clients and potential clients and educate managers and supervisors. Become familiar with outside services you may need to provide assistance during a strike. A union is inherently a political entity: leadership changes. Leadership fights to remain in control. You cannot ignore the goals and tactics of the union. Being good buddies with the union and communicating with the union sounds reasonable and may work sometimes. They will still organize plants and factories. If your company is unionized and your competitors are not, you will be at a competitive disadvantage. In the end, the unionized companies will be spending more money in the cost of overall production than non-unionized competitors. For example, compare the American auto industry—staffed by employees who are members of the United Auto Workers union—to other auto manufacturers, which are not unionized. There are enormous cost differentials. A company needs to think long and hard at the front end why unionization is harmful to shareholders and employees. It can restrict a company’s expansion opportunities. The union represents every employee the same. Workers may prefer to be evaluated on their own performance. Sometimes, you can make more money in a non-union setting. If a third party can come in to resolve issues that cannot be resolved internally, it may tear away at what the union offers. The CEO needs to defer to the outside arbitrator in such a circumstance. Then live by the decision. This is in place in some companies and works very well. It gives additional credence to the value that the company places on fairness. XD TV A 7 Tips 1. 2. 3. to protect employee free choice. TM TA K E AWAY VA L U E on Handling Unions Have an unwavering commitment Plan ahead for the possibility the union will call a strike. Very experienced people should handle the bargaining. 4. Tell employees the truth. 5. 6. 7 . Protect the operating flexibility of the company. Unions tend to play on management’s mistakes. To prevent unions from forming in the first place, make sure to keep an open and honest dialogue with employees. EXECUTIVE DECISION I March-April 2008 17

Table of Contents Feed for the Digital Edition of Executive Decision - March/April 2008

Executive Decision - March/April 2008 Contents Index of Advertisers Contributing Editors From the Editor's Desk Publisher's Note You Be the Judge - Unionization Thought Leader - Pitney Bowes Management - Flying High for Long-Term Results Strategies - Sovereign Wealth Funds Cover Story - In Whom Do We Trust? The Movement for Greater Accountability & Disclosure Finance/Legal - The New Boycott Model Green At Work - Transforming for Sustainability Technology - Embracing Risk Leadership - Executive Reputation Management The Global Village - China Moves to Curb Prices Economic Profile - California Gold Rush Transformations - I Can See Clearly Now, The Brain Is Gone Marketing - Effectively Using Market Research The Bottom Line - Brands: A Shrinking Advantage or Shifting Advantage? Pulse - Pandemic: Not If But When SPECIAL SECTION - Living On the Green: Luxury Golf Destinations

Executive Decision - March/April 2008

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