A Comeback for the Uaw?

Running head: A Comeback for the UAW?

A Comeback for the UAW?

Terri Chichester

Kaplan University

MT203: Human Resources Management

Dana Williams

March 27, 2011

A Comeback for the UAW?

Introduction

The UAW (United Auto Workers) is a union that protects the rights and negotiates benefits of the skilled craftsmen in the auto industry. Throughout this case study the issues that come with the unionization of auto companies will be discussed as well as discussing whether or not the UAW is making a comeback and what, from an HR standpoint, can be done to keep the UAW from unionizing their workers.

Review/Analysis of the Case

This business writer believes union membership might become more attractive to auto workers in the future because of the hourly wage war between auto companies and the fact that the retired auto workers do not get to vote on new contracts. The Japanese company’s like Toyota pay an hourly wage of twenty five dollars an hour whereas General Motors pays somewhere around fourteen dollars an hour. The Japanese companies need to cut production costs and the perfect way to do this would be to cut the hourly wage, Toyota could use the lower wage at General Motors to exert a downward pressure on their employees to accept a lower pay. To the workers in the Japanese companies the union will start looking better, the union in this case would fight to keep the wages and benefits for the workers at Toyota where they have been, or at least close to where they have been in the past. For General Motors, with so many of their union workers being eligible for retirement in 2011, these workers will be replaced by new employees. The retired will not be able to vote on new contracts and will not have a say in the union negotiations. The new workers, because they are getting fewer benefits and lower pay will not fight for the retirement benefits like the older workers would have therefore it will fall to the union to negotiate these benefits....