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Sahilkumar_IDRL305_assign1 - Sahil Patel Assignment 1 Case...

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Sahil Patel Assignment 1 July 31, 2011 Case 1 – CAW & General Motors There are several factors that affected the results of all three companies to conclude with the negotiations with CAW. Yes, the decisions were in favor of the workers but the reasons of acceptance by these Big 3 companies were quiet justified. Firstly, the cost of “strike” for any of these companies has been really destructive for them and the community of those workers servicing their production. As stated in the summary of major issues facing negotiators by CBC; there has been times where such strikes have occurred consecutively to a number of 9 TIMES in 16 YEARS. Several such disputes like this one between the companies and workers has proven to be very costly for these companies and our economy. Loss of production, unhealthy/sick companies, or mal-management issues has had these companies face many hurdles and a long struggle to operate due to such disputes as the history witnesses. Therefore, it is quiet justified why they did not have any other way out but to give a favorable decision towards the workers. Secondly, for Ford it was an agreement that they had to commit and accept due to their high profitable earnings and share values more than any other automobile company in the world. Their workers had a valid demand for an increase in several factors of their working lives as they believed if the company was doing well the profits should be shared well among the production team by fulfilling their demands. Therefore, I believe their negotiations and bargaining process was meant to be favorable towards the CAW’s demands and arguments. This was simply because the senior leaders and the executive management team will definitely have a backup profit maximizing strategies for them to continue to having a progressive organization in the marketing. A part of mutual understanding between all three companies was
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