Labor Laws and Unions

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Labor Laws and Unions

Pamela Spears

HRM/531

October 5, 2012

Robert Rupe

Labor Laws and Unions

General Motors is a multinational automotive corporation and the world’s largest automaker. Started in 1908, Gm now employs over 200,000 people and does business in over 157 countries. GM products focus on its four core divisions Chevrolet, Cadillac, Buick and GMC. (General Motors, 2012)

The most talked about issues that GM has with unions appears to be labor costs. The average cost of employing a worker including benefits is nearly twice that of Japanese autoworkers. The job security unions’ guarantee has cost General Motors a bundle over the years. Growing up in Detroit I recall that parents with auto jobs were the better off ones in the neighborhood. They went to work every day, they were able to pay their bills and were not concerned about losing their jobs.

This all changed when the recession hit and layoffs started. This hit the economy hard in the Motor City where the majority of jobs were with one of the Big 3. The benefits of being in a union were a raised standard of living; states that have unions have higher paid workers as opposed to “Right to work states”. Union workers are more likely to have great health benefits and pension plans and the Union negotiates these at a lower or no cost to the employees.

By law employers cannot discharge employees, threaten to shut down business, prevent one from soliciting members, transfer you, or threaten layoffs if you want to start a union. The union attached to General Motors is the UAW. The United Auto Workers was founded in 1935 also located in Detroit. Its primary goals are:

* Employer paid health care

* Cost of living allowances

* Product quality and safety improvements

* Training and educational programs

The unionization process includes an election if at least 30% of employees in an appropriate bargaining unit want to unionize they can elect to do so. They schedule meetings,...