Final Paper - Business 160 Prof. Isaac Cohen Spring 2008...

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Business 160 Prof. Isaac Cohen Spring 2008 Business 160 Final Exam Unions Starbucks, Southwest Airlines, Safeway, Caterpillar, NUMMI, and UPS are all unionized companies. Intel, Ben and Jerry’s, Gap, Nike, Wal-Mart, and Jet Blue are all not unionized companies. Of these unionized companies, NUMMI is a great example of a successful working relationship between company and employee. NUMMI’s Union has played a crucial role in their success as a car manufacturer in the US. What makes NUMMI’s Union successful is the terms by which the Union and the company have settled on. NUMMI’s workers received job security from NUMMI and in exchange they gave up the right to strike over speed and safety, as well as narrowed job classification. Because of the way NUMMI is managed it was critical for their success that the employees gave up the right to strike over speed and safety. NUMMI runs on management by stress, which means that the system/ assembly line is stressed in the form of fast machinery movement and increased job expectation leading to increased productivity. The workers are pushed to the limit when it comes to productivity, but they are ok with this because they know that they have a secured job. In fact NUMMI does not lay any worker off unless there is a terrible economic downfall. If the economy is doing badly then the workers are taken off the line and productivity slows but the workers do not get fired, instead they work to find new ways to make the line more productive, without actually being on the line. NUMMI’s Union-to-company
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relationship is so strong that never in NUMMI’s history has there been a strike of the workers for more than about one hour. The most common complaint from the employees is the absenteeism policy. At NUMMI if you have three absences in any 90 day period it is considered an offense; 4 offenses in one year results in an employee getting fired. The employees at NUMMI
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Final Paper - Business 160 Prof. Isaac Cohen Spring 2008...

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