Labor Relations 101

Employee Free Choice Act Summary

Hey Folks,

I've been getting several calls as of late regarding the Employee Free Choice Act .  People want to know what it is; who does it affect and if it will pass in the Congress and the Senate.

Well, I decided to write a Employee Free Choice Act Summary on my new website EmpathicManager.com.  Check it out.  Please feel free to leave any questions or comments at the site and I will get back to you immediately. 

Listening Makes Sense

Just had a great conversation with a manager today after our labor relations training.  He just seemed to get "it."  By "it" I mean he understands that the only way he can build trust and alliances with his team is if he takes the time to listen and process their concerns and needs, within reason. 

The art of listening is one of the most underutilized management tools in the world.  People will work for money (after all, everyone has a bill to pay) but they will die for respect and recognition.  Taking the time to actively listen to your employees demonstrates your respect for them as employees. 

The Empathyc Manager

I know...I know...I haven't posted a blog in months!  I would like to say it was because I was too busy to post, but the reality is that I was stuck in "observer" mode.  What do I mean by "observer" mode?  I have had the pleasure of traveling the country this year, working with some of the best and brightest managers and employees that I have ever seen.  But I have noticed something...there is a divide that is growing between managers and the employees that report to them. 

Why?  Maybe it has to do with the economy.  Maybe it has to do with lack of security that many feel as they witness layoffs; organizational restructuring; changes in hours (which often affects pay for hourly workers); etc.  Or maybe it is something else.  In many of the conversations that I have been privy to, I cannot tell you the number of employees that have stated, "I know my manager has nothing to do with my pay...I get that we're in a tough economy...but damn, I just wish he would talk to me like I'm a person and not just some wooden soldier he can boss around."  or better yet, "she doesn't even care that my kids were sick.  I tried to explain why I was late but she said 'I could care less! Just show up to work on time!'"

What is sorely lacking these days is the ability to empathize with the plight of others i.e. the ability to step into the shoes of someone else, if even for just one moment.  So many of the managers that I have worked with are great when it comes to the budgeting process and how to manage their departments, but they sorely lack the ability to step into the thoughts of their employees.  Do they understand what motivates the janitor to do his job?  Do they understand why the receptionist shows up to work every day looking as though she had not slept in days?  What is it your employees think about as they are driving home from work?  

More to come tomorrow...

President Obama To Repeal 4 Executive Orders

Well, you can never accuse President Obama of not being proactive.  In a move that has served to further distance him from his predesesor George W. Bush, President Obama repealed 4 Executive Orders that unions opposed, a labor official announced yesterday.

President Obama reversed the the "Bush Doctrine" which allowed unionized companies to post signs indicating that the employees have the right to decertify their respective unions.  Labor unions and other critics charged that this rule was unfair because companies were not required to post signs indicating that they are legally allowed to vote for a union.

The other three orders addressed similiar administrative rules for labor.

How Will President Elect Obama Handle The EFCA Issue?

Interesting post at Firedoglake.com.  Pachacutec asked a great question "Will A President Obama Fight for the Employee Free Choice Act?"

Let's explore this a bit...President Elect Obama is in a precarious position.  He entered into what some would say is a defining moment of leadership.  The economy is terrible; wall street is on a roller coaster ride; America is fighting two wars with Iran waiting in the wings; the jobless rate has reached a record high...need I go on?  President Elect Obama is literally poised to either sink or swim.  

Now, labor unions are pressing President Elect Obama to make the Employee Free Choice Act his number one priority when he gets to Washington.  

Obama's campaign was predicated upon bringing people together; it was a campaign of inclusivity; a promise of change that galvanized citizens of every walk of life both here and abroad.  And alas, those that were brought to the table now want their pound of flesh.  It is a widely known fact that labor unions were instrumental in organizing voters and signing up new voters.  Labor unions proved to be a formidable force largely because they are a built in demographic.  What do I mean by this?  Take a look at the demographic composition of any given union...there are Blacks, Whites, Hispanics, Asians, Immigrants from every country imaginable, Males, Females and the list goes on.  This is part of the reason why unions are so valuable to the Democratic party. 

On the other hand, unions are starting to demonstrate that they are no longer willing to give their campaign dollars (to the tune of $400 million and counting) and man-power just to get a Democrat elected.  Now they want something in return.  They want the Employee Free Choice Act to be signed in the first 100 days of President Elect Obama's presidency.  They want the Secretary of the Department of Labor to be a pro-union leader.  Change to Win is marshalling a $100 million dollar media blitz to force Obama to sign the EFCA. Quite simply put...they want the access that many corporate leaders had during President Bush's tenure as president. 

President Elect Obama is on record as promising that the EFCA will be passed during his administration, and yet conversations regarding the EFCA have taken a back seat to the concerns of the nation and the world abroad.  I believe the world will give President Elect Obama a 6 month to 1 year grace period but I am starting to see more and more that organized labor is unwilling to extend him the same courtesy.  Part of this has to do with the fact that labor is decreasing in numbers and the prevailing thought is "it's either now or never."  Obama will have no choice but to give the unions the EFCA.  Too much has been promised and the Democratic party cannot afford to lose such a strong constituency which will be needed should Obama run for office in 2012. Mark my words...the EFCA will pass.  The question is are business entities prepared for a life that does not include the protections of a secret ballot election?

The Big Three's Cost Saving Plans

Just a quick update on the Senate Banking Committee's Hearing for the Big 3 Auto Makers:

General Motor's cost saving plan is as follows:

1) Sell Saab & Saturn Brands

2) Close Plants & Dealerships around the country

3) Cut Executive Pay

Chrysler's cost saving plan is as follows:

1) Seek partners to share business costs

2) Cut Executive Pay

3) Accelerate Alternative Vehicles

Ford's cost saving plan is as follows:

1) Sell the Volvo brand 

2) Close Dealerships Around the Country

3) Close 6 Plants by 2011

4) Produce More Hybrids

GM Pulls The Plug On Tiger's Endorsement Deal

In an effort to save cost General Motors has pulled the plug on their endorsement deal with golf legend Tiger Woods.

Tiger Woods has been carrying the Buick logo on his golf bag for the past 14 years.  He had one year left on a contract that pays him a reported $7 million dollars a year.

Although Tiger stated that he wanted more time to spend with family, considering he and his wife are soon to welcome a second child, this is really about General Motors doing all it can to conserve cash.

Wood's Agent at MIG, Mark Steinberg, said the decision to end the contract early was mutual.

Buick's US sales have dropped over 54% since 2000, although foreign sales are up 17% particularly in China where Buick remains a popular brand.  

GM's cost cutting makes since considering the automaker spent $7 billion more than it took in last quarter. GM has also scaled back its advertising for the Super Bowl and has completely pulled out of advertising for the Oscars and the Emmy's.

Citigroup Slashes 53,000 jobs

Citigroup has announced that they will shred another 53,000 jobs in the upcoming quarters to stave off loses from a massive amount of debt.

The company has said that it is shrinking its work force by 20 percent from an all time high of 375,000. Citi had announced in October that it would be eliminating 22,000 jobs.  

Tom Krishner, of the Associated Press, did a great piece on the ongoing struggles of the Big Three auto companies.

Just as I alluded to in my post on Tuesday the Big Three will have to become more innovative if they hope to reclaim their thrown from the Japanese Auto makers.  Before they can do this though, they will have to adjust some things internally.  Specifically:

1) Legacy Cost.  Considering that GM, Ford, Chrysler charge an additional $2000 per vehicle to cover the costs of retired UAW members smacks of "What do we do now?"  The Big Three is essentially financing the benefits and pensions of workers that have long retired or passed.  Although the auto makers agreed to pass the costs of the pension onto the UAW where will they get the cash to fulfill this contractual obligation?  

2) Create New Innovations.  The Big Three must start thinking in terms of creating fuel efficient vehicles, and off loading the huge SUV's that brought them early returns, but have been an incredible financial drag for the past 5 years.

3) Someone has to be the bigger person. What do I mean by this?  The Big Three and the UAW have to sit down at the table and discuss how they can help each other.  This is not about who has the leverage, or who has the juice.  This is about business partners down to their last cent struggling to prove their relevancy to the world.  

Come on folks!  Let's get it together.

As if things couldn't get worse for the struggling car maker, General Motors has announced more layoffs at parts-stamping, engine and transmission plants in North America.

General Motors announced a layoff of 1,900 employees for the first quarter of 2009.  This is in addition to the 3,600 layoffs that GM announced on November 7,2008.  GM is in a serious crunch!  Although the company is still hoping with struggling Chrysler, neither party can find a financier to back the deal. Wall Street just announced that GM stocks hit a new 65 year low, and that's not counting the number of white collar jobs that will be lost as a result of GMAC's announcement that it lost $2.52 billion dollars in the third quarter.  

Although GM and members of the Congressional wing have petitioned the Bush Administration and President Elect Obama to include the struggling automobile industry in the $700 billion dollar bailout, the result is that it might be too late for GM.  Let's say that GM receives $25 billion tomorrow.  Granted the company will stay afloat, but what happens if car consumers do not turn out to purchase GM's products?  Then it becomes likely that the company will burn through the cash and again turn to the government to bail it out.  

It is not unheard of for companies as established as GM to file for Chapter 11 protection.  There is nothing wrong with it.  In fact, if the company filed for Chapter 11 then it would give the automaker some leverage as it pertains to dealing with the UAW.  I have one thought that keeps coming to me as I grapple with the issues that are dragging down the automobile industry, which I still believe is the back bone of this great country.  Innovation is the only thing that will save General Motors, Chrysler, Ford, Toyota, Honda and any other auto maker worth their weight.

It's time for the automotive industry to come up with something fresh and new for their customers. Whether it's new product design (remember what the Chrysler 300 series did for their bottom line), or advances in new forms of cheaper fuel, the auto industry needs to provide a new mechanism to grab the country's attention.  

GM, Chrysler, Ford...if you build it WE will come.

The Big Three Need Help!

Tom Krishner, of the Associated Press, did a great piece on the ongoing struggles of the Big Three auto companies.

Just as I alluded to in my post on Tuesday the Big Three will have to become more innovative if they hope to reclaim their thrown from the Japanese Auto makers.  Before they can do this though, they will have to adjust some things internally.  Specifically:

1) Legacy Cost.  Considering that GM, Ford, Chrysler charge an additional $2000 per vehicle to cover the costs of retired UAW members smacks of "What do we do now?"  The Big Three is essentially financing the benefits and pensions of workers that have long retired or passed.  Although the auto makers agreed to pass the costs of the pension onto the UAW where will they get the cash to fulfill this contractual obligation?  

2) Create New Innovations.  The Big Three must start thinking in terms of creating fuel efficient vehicles, and off loading the huge SUV's that brought them early returns, but have been an incredible financial drag for the past 5 years.

3) Someone has to be the bigger person. What do I mean by this?  The Big Three and the UAW have to sit down at the table and discuss how they can help each other.  This is not about who has the leverage, or who has the juice.  This is about business partners down to their last cent struggling to prove their relevancy to the world.  

Come on folks!  Let's get it together.

General Motors Announces More Layoffs...

As if things couldn't get worse for the struggling car maker, General Motors has announced more layoffs at parts-stamping, engine and transmission plants in North America.

General Motors announced a layoff of 1,900 employees for the first quarter of 2009.  This is in addition to the 3,600 layoffs that GM announced on November 7,2008.  GM is in a serious crunch!  Although the company is still hoping with struggling Chrysler, neither party can find a financier to back the deal. Wall Street just announced that GM stocks hit a new 65 year low, and that's not counting the number of white collar jobs that will be lost as a result of GMAC's announcement that it lost $2.52 billion dollars in the third quarter.  

Although GM and members of the Congressional wing have petitioned the Bush Administration and President Elect Obama to include the struggling automobile industry in the $700 billion dollar bailout, the result is that it might be too late for GM.  Let's say that GM receives $25 billion tomorrow.  Granted the company will stay afloat, but what happens if car consumers do not turn out to purchase GM's products?  Then it becomes likely that the company will burn through the cash and again turn to the government to bail it out.  

It is not unheard of for companies as established as GM to file for Chapter 11 protection.  There is nothing wrong with it.  In fact, if the company filed for Chapter 11 then it would give the automaker some leverage as it pertains to dealing with the UAW.  I have one thought that keeps coming to me as I grapple with the issues that are dragging down the automobile industry, which I still believe is the back bone of this great country.  Innovation is the only thing that will save General Motors, Chrysler, Ford, Toyota, Honda and any other auto maker worth their weight.

It's time for the automotive industry to come up with something fresh and new for their customers. Whether it's new product design (remember what the Chrysler 300 series did for their bottom line), or advances in new forms of cheaper fuel, the auto industry needs to provide a new mechanism to grab the country's attention.  

GM, Chrysler, Ford...if you build it WE will come.