A. Improving relationships with the Labor Union
When aiming to develop better relationships between the labor union and the management, it is essentially important to realize that the threat that has served to put the relationship in jeopardy. In this case, the threat is the migration of employees to competitor companies because of factors such as increasing implications of globalizing, the demand for skilled labor, the generation of opportunities as a result of mergers and acquisitions, the growth of multiples between pays given to top and bottom management (Holley, Jennings, & Wolters, 2008).
- There is a need to educate the workforce about the realities of the industry under the current economic conditions that prevail.
- The development of value has to be shared with the labor union rather than focusing it entirely upon the consumer. The employees have to be given value through the labor union by providing them with a value that they can acquire only by being employees of the company.
- The labor union has to be treated as a member of the value chain rather than as a component of the organization.
- By recognizing the labor union as a supplier of a component that is imperative for the production of the end product, the labor union will be given a high level priority that it cannot deny existence of.
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