Tuesday, January 4, 2011

UAW Principles for Fair Union Elections Prove Unions Still Don't Get It

My father was a manager for most of his working career, and he had the opportunity to work with both unionized and non-unionized workforces. To say that he loved contract negotiations would be like saying that he loved the hip replacement surgery that caused him months of discomfort. Both are painful, can make you feel like giving up and can promote thoughts unhealthy for this blog. Yet, he survived both and came out on the other end a better person. Better? With his new hip, he can now swing through a golf shot without shooting pain down his leg. With his experience with unions, he found out that he was much happier working in a non-union environment, much to the chagrin of his very pro-union father and brothers (or, my grandpa and uncles). What does this have to do with the UAW Principles? Well, I'll tell you. As I progressed through my HR career, I decided that I needed experience managing in a unionized facility in order to beef up my resume. My father told me not to do it - that I'd be miserable. I told him I'd be fine, that I'd treat employees at the union facility with respect, honesty and compassion. I was under the impression that the Golden Rule applied everywhere - Treat Others as You Want to be Treated. Guess what I learned? I was wrong. While there were very many great employees, both union and non-union, that worked at the union facility where I managed, some of whom I still consider strong friends, I found that working with union leadership tended to be a lose-lose proposition much more often than win-win, or as it often happened during my time, win-lose. At a very basic level, the relationship cannot help from being adversarial most of the time - Unions want to get more for less, and companies want to give less for more. Once one side compromises more than they think they should have, it becomes a win-lose, and the relationship sours. Win-win was always the buzz word in grad school - and I've tried to utilize that win-win strategy in everything that I do in life. Win-win does not work with union leadership. It simply doesn't. If a company gives, the union will gladly take. If the company asks for something in return, it is fought with ferocity through a grievance process. The UAW seems to be trying to move away from this inevitable relationship with its printed Principles. The issue, as I see it, is convincing long-time union members to embrace these subtle changes in UAW vision, while convincing managers used to fighting with the union over every management decision to accept this paradigm shift by the UAW as a fundamental truth and not just a play on words. This will be a long blog, because I plan to discuss the Principles and Preamble in detail, so I apologize in advance. I don't have this blog pre-written, so I'm typing as I go on this very personal subject for me. However, I believe I know where I'm heading with this blog - that union leadership has failed once again to see the writing on the global wall. Unions belong in the past, as the 73% decline in UAW membership since 1979 clearly demonstrates. Writing a set of Principles proves that the UAW has finally taken notice about the realities of business in the 21st Century. What they don't get is that it's already too late to try to change the image of the new UAW. Business is no longer national, it is global, and unless it makes financial sense to build a product or conduct a service in America with a unionized workforce, companies are going to go where they can get more for less. It is not always fair, and it may not be in America's best interest for companies to move jobs overseas. However, who ever said that business was fair?

In its Preamble to its UAW Principles for Fair Union Elections, the UAW states:

"The UAW of the 21st century inhabits a global economy, therefore, the union must be fundamentally and radically different from the UAW of the 20th century. In the context of global competition, the only true path to job security is to produce the best quality products and services for the best value for consumers. In order to promote the success of our employers, the UAW is committed to innovation, flexibility, lean manufacturing and continuous cost improvement. Through teamwork and creative problem solving, we are building relationships with employers based upon a foundation of respect, shared goals and a common mission. We are moving on a path that no longer presumes an adversarial work environment with strict work rules, narrow job classifications or complicated contract rules. The UAW seeks to add value as advocates for consumer safety, energy efficiency and green technologies."

From a company or management standpoint, this first half of the Preamble is unarguable. This is the most truthful statement that I have ever read from the UAW leadership, and it shows that the UAW recognizes the challenges it, and companies, face in the 21st Century. The Preamble continues:

"Just as the UAW has embraced fundamental change, we call upon the business community to also change. They can demonstrate their openness to change by agreeing to the framework established in these principles.
The current federal framework under the National Labor Relations Act does not protect the rights of workers to freely decide whether or not to join the UAW. Unlike a truly democratic election, there is vastly unequal access to the electorate. In many cases, employers use explicit and implicit threats of loss of jobs or benefits if workers support a union. Screening job applicants to weed out potential union supporters, mandatory anti-union meetings, firing of union supporters and threats to close the facility are tactics used to create a climate of fear. Community-based business organizations employ explicit threats that would be illegal if they came directly from the employer. Employee attempts at redress are futile due to lengthy delays and a lack of penalties. A free, democratic election cannot take place in a climate of fear.
The UAW invites employers to endorse these Principles for Fair Union Elections. If employers abide by these Principles, we will respect the choice of the workers whether or not they choose to join the UAW."

From a company standpoint, this second half to the Preamble illustrates that the statements in the first paragraph were written merely for show. The union’s real agenda is easily understood in this second half. Any business would be foolish to embrace this second half, as this clearly is written in support of the Employee Free Choice Act, which stands for everything but freedom and democracy (see my previous blog!). The tactics of fear that the UAW accuses companies of committing are vastly overblown. While I am positive that there are cases where each of these tactics have been used, I am also equally convinced that most companies want employees - all employees - to be accountable for their job requirements and work performance, that they be flexible, that they work together towards a common goal and that are honest, hard-working and overall good people. Companies want to be able to communicate with employees without accusations of conspiracies or incompetence. Community-based business organizations are another word for local chambers of commerce and other chapters, such as The Society for Human Resource Management (SHRM), who have a very keen understanding of what ails companies and offer suggestions for improvements. The UAW would have you believe that these are faceless, emotionless and greedy harbingers of doom who align with a company viewpoint in order to get richer. Anyone who has served on a chamber of commerce or been a part of a local community-based business organization will tell you that they are made up of many people just like you and I who want to do what's best for all, not just the few. Finally, the UAW "invites" employers to endorse these Principles. Is it an all or nothing invitation? Are you asking a non-unionized employer to sign some type of statement agreeing with these Principles? I cannot for the life of me think of any employer who would sign these Principles based on what is written just in the Preamble. I now go on to the Principles, with my thoughts following in parentheses ().

The Principles

1. The right to organize a free trade union is a fundamental, human right recognized and respected in a democracy. (The wording seems strong and instantly puts me on the defensive - if I don't agree with this, does this make me a communist? A socialist? Something other than a human not recognizing a fundamental human right?)

2. Employees must be free to exercise the right to join a union or refrain from joining a union in an atmosphere free of fear, coercion, intimidation or threats. There is no free choice if a worker is afraid of losing a job or benefits as a result of his or her choice, or is intimidated into making a choice not of one's own making. (Who defines what is fear, coercion, intimidation or threats? Does talking about a company's global competitiveness regarding safety, quality, production, delivery, efficiency or cost metrics constitute a threat if you are informing employees during an all-employee meeting of facts? There is no guarantee of employment that any company can make with certainty - does the UAW wish for companies to not discuss the business strategies with employees?)

3. Management must clearly articulate that if workers choose to unionize, there will be no negative repercussions from the company. The UAW must clearly articulate that if workers choose not to unionize, there will be no negative repercussions from the union. Both the company and the union will negotiate in good faith, and any failure to reach agreement will not be caused by bad faith negotiations. (So this states that a company cannot decide to move its operations if it becomes clear that it cannot compete globally? Would that be a negative repercussion?)

4. Management will clearly articulate that it does not promise increases in pay or benefits if workers choose not to unionize. The UAW will clearly articulate that it does not promise increases in pay or benefits if workers choose to unionize. (Yep - can agree on that one.)

5. During the course of a union representational campaign, employees will have the opportunity to hear equally from both the union and management regarding this issue. There will be no mandatory meetings of employees on the issue of unionization unless the UAW is invited to participate in the meetings. Written and oral communications must be equal. The union must be granted the same ability as the employer to post campaign materials. (Will the UAW pay the employee's wages during the times that they are meeting with them? How do you determine that written and oral communication is equal - time allotment? Equal slides in a PowerPoint? What if the Union has more slides than the Company, or vice versa. Who makes the determination as to equal?)

6. Management will explicitly disavow, reject and discourage messages from corporate and community groups that send the message that a union would jeopardize jobs. Likewise, the UAW will explicitly disavow, reject and discourage messages from community groups that send the message that the company is not operating in a socially responsible way. (So, if a local chamber of commerce determines that it can't draw in new businesses because of a pro-union environment, it shouldn't share this with the community, who count on business expansion for growth? Does the UAW then not favor determining the root cause of an issue unless the root cause is favorable to the UAW? How does the UAW, or a community group for that matter, define a company not operating in a socially responsible way? Whose standards of social responsibility are we benchmarking?)

7. Both the UAW and management should acknowledge that the other party is acting in good faith with good intentions. Negative and disparaging remarks about the union or the company are not appropriate and not conducive to a spirit of mutual respect and harmony, and will not be made by either party. (What if one of the parties is not acting in good faith with good intentions? Is one side supposed to lie? How does a party know that the other party is acting in good faith with good intentions or not?)

8. Any disagreements between the UAW and management about the conduct of the organizing campaign, including allegations of discriminatory treatment or discipline relating to the union campaign, will be resolved immediately through an impartial, third party. (Again, if either party disagrees about the conduct, it immediately goes to a mediator or arbitrator?)

9. The democratic right of workers to freely and collectively choose if they want to form their UAW local union is the workers' First Amendment right. A secret ballot election incorporating these principles is an acceptable method of determining union representation if principles two through six have been adhered to, and if there is no history of anti-union activities. The parties may select an alternative method on a case-by-case basis that reflects the best process for demonstrating employee wishes. If the parties cannot agree on specifics of the procedure, an arbitrator may decide. (Makes it seem as if the UAW is saying they don't need the Employee Free Choice Act as long as stipulations are met. This is not the case. The unions, and the President, want the Employee Free Choice Act signed (again, see prior blog). Who determines anti-union activities? Does an all-employee meeting discussing negative metrics meet the definition of anti-union activities? Does disciplining an employee constitute anti-union activity? Way, WAY too general of a statement...)

10. If employees choose to unionize, the employer and union will engage in collective bargaining to achieve an agreement as soon as possible. The goal will be an agreement that takes into account the employer's need to remain competitive; the dignity, respect and value of every employee; the importance and value of full employee engagement and creative problem solving; and that provides a fair compensation system. The employer and the UAW commit to full information sharing and joint creative problem solving. The employees will vote on whether to accept the agreement. Disagreements between the union and company will be discussed in a respectful manner. If no agreement is reached within six months of recognition, the parties may mutually agree to mediate and/or interest arbitration to resolve any outstanding issues. (The most intriguing word in this Principle is "may". What if both parties don't mutually agree to mediate or take it to arbitration? The wording implies that the parties may do this, it doesn't instruct that this will occur if no agreement is reached. What is the alternative?)

11. The UAW pledges that if the workers choose union representation, the union as an institution will be committed to the success of the employer and will encourage our members to engage in the employer's successful achievement of its mission. The UAW and the employer will work together in fulfilling the mission of the employer. The UAW embraces a performance-based and participatory culture where the union contributes to continual improvement of processes and shared responsibility for quality, innovation, flexibility and value. (I can't argue with anything here - I actually believe this to be a very proactive statement. Of course, I'm left wondering if the union would work with the company to terminate a problem employee who is not meeting performance expectations? Wouldn't it be fulfilling the mission of the employer to have 100% of its employees meeting performance expectations? Who sets the expectations? Would the union leadership really accept shared responsibility for a failure, or accept responsibility for an employee not meeting performance expectations?)

I promised that I didn't pre-write this, and I didn't. As I look at the last Principle, it gives me hope that the UAW might actually understand and accept that good business means good employees, both management and union. I have not had the opportunity to work with many union leaders who actually believe this last Principle, but there are some out there who understand that a business is only as good as its employees. My personal belief is that most employees are protected by so many state and federal employment laws (rightly so) that there really is no need for union representation. Good companies pay their employees well, or they are not able to remain competitive and they lose those employees to other employers. I believe that bad managers and supervisors cause employers to become unionized, though this may change if the Employee Free Choice Act is ratified. Most employees in the United States are not unionized, and the majority of those employees value working in an environment where their work performance and contributions are individually recognized with salary and promotional opportunities. The only real advantage that I see in unionizing in the 21st Century is for seniority purposes, and that advantage only helps those employees that have been employed the longest. Seniority often fails to recognize the contributions of those employees without as much seniority, and tends to stifle opportunities for advancement or position change more than it helps. Seniority oftentimes also prevents employers from keeping its best employees in times of layoff. In Principle 11, the UAW states that it would work with the company to achieve the successful achievement of its mission. Wouldn't keeping your best employees help achieve this mission? If this is the case, and the union can no longer offer seniority protection, then what can a union actually do for an employee? The answer, as the UAW knows, is not much. Unions are a relic of the past. The Principles would have been a welcome change twenty years ago, and may have helped save thousands of jobs throughout the United States if accepted by membership. As it stands, the Principles are probably a case of too little, too late for the UAW, especially if the Employee Free Choice Act fails to become law. Can't union leaders understand that their time to fade into the sunset has come (and gone!)?

5 comments:

  1. After working with John in Stevens Point, where he served as HR & Ops manager, myself working as a local Union official I can comment specifically to his blog.

    Perhaps John would be more apt understand core fundamentals of Union membership if he would have worked underneath some of the supervisors that he had direct authority over. I can cite dozens of examples of managerial bullying that that were simply ignored when brought into John's office. The strict policy of tacitly denying any wrongdoing from "his team" as he would seem to like to divide us was both morally wrong and didn't serve the best interest of either the company, Union or employees. Even corporate efforts at creating a better work environment, specifically our Workplace Violence Prevention training, done on February 18-19, 2004 and never again since, has been nothing but a token effort on local managements part to both pacify and undermine corporate fundamentals.

    John attended his meeting on February 19, 2004 along with thirteen other salaried employees. Not surprising to our local Union, a fair number of people who attended John's meeting, how should I say this, "choose to seek other employment". The other three salaried meeting I can pick out numerous other former employees also. Percentage wise, your odds at keeping your employment working as a non-Union employee at this location wouldn't be exactly betting odds.

    I'd also like to point out that as The Company sees fit, benefits have/can/will be slashed from salaried employees at any given time. Now on the other hand, out of the 400+ Union employees currently working at the plant, I can name only a very few who have "chosen other employment" for reasons beyond their control. I'm not going to go into local politics over who was let go for what reasons, who received their jobs back or received settlements due to wrongful terminations, as it really has no place here.
    John would like to paint a very perfect picture that where there are no Unions, the world would be a much better place, where companies wouldn't have to abide by any set of rules, could fire anyone at any time, and promote the "worthy few" who have worked so hard to get where they want to be. John's grandfather and uncles maybe understood a little better because they had a little better perspective on the situation. Fundamentally, almost every local Union member feels their Union is good for a few things. Cont…

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  2. …#1 - To retain employment. - You cannot simply be let go because you didn't kiss the right *ss, look at someone the wrong way or fail to meet some phony criteria set up in a yearly review. "What exactly have you done for this company this year? Why do you think you deserve a raise?" Trust me, there are plenty of ways a Union worker can be fired. And in fact, should be fired. A Union/Company contract simply defines a set of rules that both parties have to abide by. The company doesn't hesitate to write people up for abusing an attendance policy, not being at their work station, poor work performance, etc. Yet John thinks that the Union's recourse for upholding a contract, such as by filing a grievance is somehow nothing more than a headache and nuisance for the company. To quote the contract that John had a part in negotiating: "A grievance shall be defined as a controversy between the Company and the Union or an employee or employees covered by this agreement. Such controversy must pertain to a matter involving the interpretation of an express provision of this Agreement." So if the company is following the rules, as they expect the Union employees to, why would there ever be any grievances in the first place?

    #2. To retain seniority. - Every Union has their own set of rules defined in their collective bargaining agreement that define what seniority does for you at your specific location. For most, it allows a more senior employee to bid for a job over a junior employee. It allows for a more senior employee to retain their job in a layoff situation, it allows a more senior employee to get a day of vacation over a junior employee. Out of what I have listed, who in their right mind wouldn't want those things, other than an oppressive management? There are numerous Union jobs in the plant that John left that seniority rules do not apply, where you either have to be of skilled trade or qualified and interview to get the position. Who exactly loses in this situation?

    #3 - To be fair. - Most people, Unionized or otherwise can accept a lot of things, they can rationalize, understand, empathize and deal with different situations as they come up. Most people really don't even care how a lot of things are done, just so they are being done fairly. Work is no different than family life, being at school, or out in public. A set of rules guides our actions, give people reasonable expectations of what they are supposed to be doing, and defines consequences when those things are not done properly. Union employees along with management have a clear set of rules defined by their contract that both parties have negotiated and been given full opportunity to bargain over and ratify. Once the rules have been put in place, what is so hard about following them? Management expects us to, but often feels that they don't need to abide by them, and shouldn’t be held accountable. The Union is only asking the same as the company. Doesn't this sound like the Golden Rule? Treat others as you would like to be treated?

    Other than that, at a local level, most Union employees are really not worried about congressmen, international representatives and special interest money fighting over things such as Employee Free Choice Acts or whatever one side tries passing each year. John's grandfather and uncles know this, they understand.

    John also fails to acknowledge that Union officers buffer management from daily complaints and keep problems in house. Without the Union there to hear people out, if they are not comfortable taking their problems to HR, or in many cases see it as a lost cause. I can guarantee you these complaints either go to corporate, a government compliance agencies or private attorneys. A working Union/Company relationship can set up labor management teams, joint safety committees and other win-win relationships that can help serve both parties.

    Chad Wills
    Chief Steward, UAW Local 2020
    Stevens Point, WI

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  3. Mr. Wills is a very intelligent person and deserves the role of Chief Steward in UAW Local 2020. While I don't agree with some of Mr. Wills' assertions, I will not argue that poor management contributes to the UAW's ability to unionize a company or deflect decertification efforts from an organized workforce.

    The UAW's only play left is a two-pronged approach: To unionize the foreign auto makers that have plants in the US (and they have taken $60 million dollars out of their strike protection fund to fight for the right to organize these automakers), and to spend millions more ensuring the passage of the Employee Free Choice Act. Mr. Wills does not comment on the sharp decline in UAW membership because it is unarguable. If the UAW does not unionize the foreign automakers, or if the Employee Free Choice Act is not passed, the influence that the UAW still possesses will continue to decline. Once employees understand that they do not have to pay union dues to work for companies with similar benefits and work practices, and can be judged on their own work ethics and merits at non-unionized facilities, membership in the UAW will continue to decline until the organization collapses.

    I wholly believe that the majority of union members, if given the ability to work in a non-union facility, would welcome the environment once they understood first-hand the differences in working in both unionized and non-unionized facilities. Don't believe me? Try it. I am certainly not saying that there are not bad employers out there, or bad managers or supervisors. They exist in every organization, whether the organization is unionized or not. However, there are many great companies out there where individual effort is rewarded and encouraged. I cannot for the life of me understand why someone who is head and shoulders above a peer in terms of work performance and ethics would accept receiving the same pay and benefits as that person without having the opportunity to individually excel? Isn't the American dream the ability to rise above through hard work, ethics and determination? What incentive would a great worker have at an employer who pays everyone in a class the same without regard to the person's individual performance? I can say that I, for one, would never want to work for a company in which I knew it didn't matter if I gave 70% effort or 150% effort - that I'd still make the same amount of money as the person working next to me.

    There are no guarantees in life - and certainly no guarantees of employment. I have always felt that whether I succeeded or failed, at least I did it to the best of my ability. You learn much more about yourself through failure than success, so how do you continue to learn and grow if there are no incentives to succeed or no consequences if you fail?

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  4. Daniel Howes

    Sen. Corker on auto bailouts: 'I was right'

    The last time we saw Bob Corker around here, the Republican senator from Tennessee was walking the floor of the North American International Auto Show as "Public Enemy No. 1." Or so he acknowledged two years ago, when the wounds of national humiliation from federal bailouts still were raw at General Motors Co. and Chrysler Group LLC — both now well on the road to financial recovery.

    There he was again Monday, glad-handing folks in front of the new Volkswagen Passat sedan the German automaker plans to assemble in a brand-new, presumably non-union, plant in Tennessee. Gone was the media horde. I walked up and simply asked whether he was wrong about Detroit. "I actually say I was right," he said, smiling. "If you look at where GM was at the time, there was no way they could survive. If you look at the balance sheet of GM, it's totally different" now. "I'm excited about GM's future.

    "You have never heard Bob Corker ever, ever, ever criticize the product," he added, proclaiming ownership of a Chevrolet Tahoe, a GMC Yukon hybrid SUV, a VW Touareg and a Ford van for his interior-designer wife. "The criticism I had was with the structure of the company." That, and more. In hearings of the Senate Banking Committee two years ago, the former mayor of Chattanooga verbally depantsed the CEOs of GM and Chrysler, telling Chrysler's Bob Nardelli that he wanted "to hang around long enough so you can … hopefully get married before you run out of money."

    The Tennessee senator, joined by Alabama Sen. Richard Shelby emerged as arch-enemies of Detroit and the United Auto Workers. They slammed broken business models, ridiculed the indefensible jobs banks and hammered away at the wage-and-benefit premiums Detroit's automakers paid to their UAW work forces. They blamed inept management, lackadaisical boards of directors and grasping union leaders, whose accelerating demands contributed to the fixed costs that conspired to crush the companies when sales tanked, oil prices skyrocketed and credit markets seized.

    They had valid points — to a point. Not because Corker says so, for one, but because the four-point plan he pushed as conditions for a federal bailout essentially underpinned the workouts pushed by President Barack Obama's auto task force and executed by new management teams at both companies. Call it what you want, but that looks like vindication for a Southerner whose proposed solutions were considered the legislative equivalent of rancid castor oil and hated in return.

    Force bondholders to take "haircuts" to help GM reduce its debt load? Check, thanks to bending the bankruptcy rules (in favor of the UAW). Push the UAW to accept a portion of retiree health care obligations in company stock? Check. Align total labor costs with those paid by non-union, foreign-owned automakers operating in the south? Check. Kill the jobs bank? Check.

    And what did Detroit get in return? A GM that had booked more than $4 billion in profit through the first nine months of last year and is expected to book its first full year of profitability since 2004. A Chrysler whose operating profit last year exceeded $700 million and could hit $2 billion this year, CEO Sergio Marchionne said Monday.

    We get a UAW whose new president, Bob King, is declaring dead the era of confrontation, high fixed costs and sclerotic work rules. Detroit's hourly labor costs today, executives say, are within a few dollars per hour of those paid by Toyota in Kentucky and Nissan in Tennessee, among others. And shifts are being added to plants in Michigan, Ontario and Ohio.

    We even get added benefits to Ford Motor Co., whose bailout-free bootstrap restructuring benefitted from the savings GM and Chrysler wrangled from the UAW. Corker calls CEO Alan Mulally "one of my heroes."

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  5. And we get confirmation, whether Corker and the auto task force hotshots want to admit it, that Chrysler and, especially, GM had businesses worth saving because they had credible cars and trucks that could compete with the best. Because they are, right now.

    Which is not to say the Tennessee senator's enthusiasm for a rebooted Detroit is boundless. What about the UAW's public plan to target foreign-owned automakers — including several in his state — with union organizing campaigns, I asked.

    "I can't imagine any company wanting the UAW to be part of their company," he replied. "It's the employees who decide. My sense is they will view their economic self-interest (being) better served by not being affiliated with the UAW."

    Maybe, maybe not. But Corker's call, tough as it was to hear in the dark days of November and December of 2008, ended up presaging the solution that came later. Few pols from either party in Washington could lay claim to that.

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