Unformatted text preview: Auto Industry Auto Industry 1/31/2011 Conclusions from Final Offer Conclusions from Review: What messages to are the film makers trying to portray? What do you think may have been misrepresented or exaggerated? What can managers learn from this strike? What challenges are the What challenges are the “Big Three” Ford, GM and Chrysler currently facing? What are the Big Three doing to rebound?
Evaluate Ford’s case to the analyst community http://video.google.com/videoplay?docid=6809384920346702852&q=Ford+ http://video.google.com/videoplay?docid=6809384920346702852&q=Ford+ With the benefit of hindsight…
What factors led to performance What factors led to performance advantages among Japanese automakers? CB agreements then and now CB agreements then and now
Pre 1980s 30 and out pensions Cost of living increases Supplemental Uninsurance benefits Multi year contracts (as many as 4 years) Pattern bargaining Today Profit sharing Work rule changes Reduction in benefits Lump sum payments Less pattern bargaining now because of spinoffs of parts suppliers. What factors explain how What factors explain how the UAW’s relative bargaining power has changed over time? Quality Numbers (2002) Quality Numbers (2002) US Manufacturers Japanese and European Manufacturers Why do you think US automobiles lagged – 45 defects per 100 – Down from 69 defects per 100 – 3035 defects per 100 foreign competition in quality? – Are these quality differences cultural? Ford has narrowed the quality gap
Why then, is Ford (and others) still struggling? http://video.google.com/videoplay?docid=2273840084468769020&q=ford+motor http://video.google.com/videoplay?docid=2273840084468769020&q=ford+motor A critical look at management What mistakes do you think Big 3 What mistakes do you think Big 3 automakers have made? A critical look at the A critical look at the UAW…
What mistakes has UAW leadership made if any? Has the UAW had a Has the UAW had a positive or negative influence on the profitability of US automakers? Why? Job Banking Job Banking Programs
Why did union agree to these? Why did management agree to these? What problems do they cause? Conclusions Conclusions
What can you take away from the study of this industry? Union Avoidance Union Avoidance Rationale
One more time…Why does management typically want to avoid unionization? Suppose you represented top Suppose you represented top management in a company facing a potential union drive… What could you do to discourage employees from forming a union? For next time…
How to legally and effectively How to legally and effectively prevent a union from forming ...
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- Spring '08
- lump sum payments, pattern bargaining, Final Offer Conclusions, critical look, relative bargaining power, Industry Auto Industry