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Union-Management Cooperation: Can a Company Move from an Adversarial Relationship to a Cooperative Relationship and Is Interest

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Union-Management Cooperation: Can a Company Move from an Adversarial Relationship to a Cooperative Relationship and Is Interest University of Rhode Island DigitalCommons@URI Seminar Research Paper Series Schmidt Labor Research Center 2005 Union-Management Cooperation: Can a Company Move from an Adversarial Relationship to a Cooperative Relationship and is Interest-Based Bargaining a Necessary Condition to do so? Jane Ostrowsky University of Rhode Island Follow this and additional works at: http://digitalcommons.uri.edu/lrc_paper_series Recommended Citation Ostrowsky, Jane, "Union-Management Cooperation: Can a Company Move from an Adversarial Relationship to a Cooperative Relationship and is Interest-Based Bargaining a Necessary Condition to do so?" (2005). Seminar Research Paper Series. Paper 12. http://digitalcommons.uri.edu/lrc_paper_series/12http://digitalcommons.uri.edu/lrc_paper_series/12 This Seminar Paper is brought to you for free and open access by the Schmidt Labor Research Center at DigitalCommons@URI. It has been accepted for inclusion in Seminar Research Paper Series by an authorized administrator of DigitalCommons@URI. For more information, please contact [email protected]. UNION-MANAGEMENT COOPERATION: CAN A COMPANY MOVE FROM AN ADVERSARIAL RELATIONSHIP TO A COOPERATIVE RELATIONSHIP AND IS INTEREST-BASED BARGAINING A NECESSARY CONDITION TO DO SO? JANE OSTROWSKY University of Rhode Island Strikes “More often than not, unions are viewed as the villainous Indians and management is viewed as the white-hatted cowboys in a simplistic cowboy and Indians movie” Stuart R. Korshak Union-Management cooperation is not just a more committed to their organization, and more passing fad nor is it new or recent. However, productive because their ideas have made a interest in this particular way of doing business difference while the employer enjoys the rewards has been growing. Union-management of additional business from the customer, less cooperation is a term that has been used to turnover from its employees and profitability is characterize cooperative activities between unions good. The behavioral changes improve the and employers aimed at improving organizational outlook and the impact on the company business performance and reduce costs. The expectation of as well. cooperation is that both labor and management One way to improve products and services and gain more from their relationship through to have more satisfaction between employer and cooperation than they could achieve without it. employees is with union-management cooperation. With union-management cooperation both unions METHODOLOGY, ANALYSIS and managers form a relationship or partnership Customer focus marketing or CFM seems to that will be able to ward off threat or gain a be the new “buzz” word coming from large competitive advantage or offer job security or companies today. Companies exist in an perhaps even more jobs. environment where they need to adapt rapidly to The unionized companies that are most their customer’s changing needs. Employees are successful in harnessing their employees' ideas usually closer to the customers than is have found that the only effective way of making management, therefore management needs to employee participation work is through a listen to their employees and gain their perceptions cooperative relationship with their unions. of what their customers are looking for and use Union-management cooperation may seem a their ideas to improve and incorporate those ideas little far-fetched since it is difficult to believe that into continuously improving products and these two adversaries would stop the bickering and services. To do that requires effective employee start working together for the same common good. participation and empowerment programs. It is All workplaces as well as the ones with unions both legally and practically difficult to obtain such require higher morale, productivity, participation, participation and empowerment in a unionized and flexibility to be successful. Human Resource company without the active involvement of the Director’s must educate their managers to follow a union (Korshak, 2002) cooperative approach with unions if they want to By focusing on customer needs companies be successful. will see improved customer relations as well as The AFL-CIO has for several years endorsed more customer satisfaction. Customers, be it labor-management partnerships between unions internal or external are a huge part of company and management as the best way to satisfy both success and their satisfaction means continued sides’ needs and to build strong unionized business to the company. Satisfaction to companies. The AFL-CIO and many of its sister employees will be greater because they believe unions take the position that organized labor that the organization will be satisfying in the long should present management with two, and only run, they care about the quality of their work, are © Jane Ostrowsky, 2005 Ostrowsky-Labor –Management Cooperation 2 two alternatives. These are (1) an “open hand of side is doing their best to make this effort work is cooperation” for real partnerships or (2) a “closed also a factor. fist” for a fight in a confrontational relationship. Management and union must also show they Given these two alternatives, which is more likely are committed to making this relationship work in a unionized company to result in high morale and that they are there for the mutual interests of and productivity, the ability to solve complex all employees. Having face-to-face weekly or bi- problems, and adaptability to changes in the weekly meetings with all participants and not just economy? (Korshak, 2002). a few shows a commitment to the process as well. Asking the question “how are we doing” and then GUIDELINES TO A COOPERATIVE actually listening to the answer and discussing the RELATIONSHIP issue if there is one, shows commitment to the Changing behaviors and shifting customs of process. management and union leaders are the major The knowledge and skill levels of the priorities to building a trusting union-management employees must also be increased. A given level relationship. Organizational culture, of cooperation between management and union communication as well as trust and commitment requires certain degrees of skill levels. You would are key to making this change successful. need to train or retrain managers as well as union Each party brings a difference in culture such employees in problem solving skills; how to as their values, way of thinking and ways of doing identify and resolve the problem. How to handle business to the table. These cultures or conflict is another skill that would be needed. differences must be handled properly or they will Agreed upon ways to handle conflicts should also interfere with the new partnership. be put into place. There must also be good communication Team building is an important skill since the practices between the parties with information union and management have to work together on a being flowed down to all levels of workers. In a day-to-day basis. traditional union management relationship, Interpersonal skills such as verbal communication is flowed down from management communication as well as written skills, public and flowed up through the union. Because of this speaking, presentation skills all become a part of communication process, there has to be a change the collaborative effort. Coaching and counseling in the way information is communicated is also an important skill that both middle throughout the ranks. It must be free flowing. managers as well as the shop stewards will need. Each contributor must be kept aware of the The parties should also think strategically process. This is not only for management, but also about cooperation. A plan should be in place to for all employees who are stakeholders in the help guide the leaders with the factors and forces cooperative process or partnership. Without that may affect the effort of union-management communication to all parties involved the process cooperation. One factor may be that there are may come to a standstill or fail completely. Face- powerful individuals on both sides that are to-face communication, verbal communication is a indifferent to the relationship. very important factor. Email is ok, but not all the Lastly, the company should also develop time. It may be misunderstood. mechanisms to track the process of the Trust and commitment from both sides has to relationship such as team health surveys. With be extended. This is not an easy task. It takes this information the company would then make time to develop trust especially if there has been any necessary adjustments that may be needed the traditional adversarial relationship between (Shappe, 1997). union and management and the trust between the By making organizational changes, having two parties was more mistrust. Factors that trust and commitment and a better communication contribute to developing trust and creditability are flow within the company there will be more having a positive attitude toward each other, employee satisfaction as well as customer initiating a cooperative behavior. Building a good satisfaction. Employees will feel more engaged in rapport with each other and believing that each the business and productivity and innovation Schmidt Labor Research Center Seminar Research Series 3 levels will rise along with morale. The parties EVIDENCE OF UNION-MANAGEMENT will feel an increase in power as the synergy from COOPERATION SUCCESSES their collaboration begins to flow. One of the earliest cooperative efforts grew The best Human Resource
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