Summer-2020 HRM543 Labor Relations & Collective Bargainin in a Global Economy SECTION: 1 Assignment Name :Saimum Tarannum ID :1921318 Submitted to: Dr. Shoaib Ahmed Lecturer, School of Business Question 1: What role does relationship building have on positive labor-management relationships? In a business or manufacturing oriented organization, labor relations can provide both good and bad issues. The excellent communication or relationship with labor can make an organization more successful and the result will reflect in present and future of the business goals. A decent level of understanding among labor, office stuff members and top management is very much imperative to diminish the problems on an overall industry. A positive communication among businesses and workers points to the higher inspiration and working commitment. Here is a discussion about role and impact of creating a positive labor management relationship: 1. Creating inspiration: In General Motors the company stopped it’s work for 54 days which made a loss of two billion dollars. This scenario mainly shows that there is a lack of inspiration and trust in worker’s mind for their organization. So a great leader is highly needed to inspire their employees and labors that can be only possible by managing the labor relationship. 2. Profit expansion: The better relationship in labor management can bring more profit and popularity to the organization. To full fill the consumer needs it’s highly needed to communicate and motivate the employees for leading them to their tasks as a result it will help to develop the sales and increase in profits. 3. Increase in production: A good relationship with labor can spread a positive impression and make them more joyful to their work so they will be attentive to work and the production increases. This production has a big impact on making a growth into economy. In the case study we have seen that ford has maintained a better relationship to their labor and it placed them in top 10 most productive car factories in America and 7th position in truck light production. 4. Saving time and money : A good labor relationship can be helpful to find out who is suitable for a specific work as a result there will be less mistakes on production so the company will save a lot of money by their communication and selecting method. On the other hand the company can make increment for their performance and workers are less interested to switch company because the existing work environment is perfect for them. 5. Building trust: The Company must need to make a relationship that contains trust to their workers which is only possible when the company cares and supports them in their hard times. With their supportive step employees will be more loyal and encouraged to do something better to improve the professional relation. 6. Sharing experience: In the company experienced workers motivate other to stick to the organization and being loyal. So all the present labor have same idea about company goals , approaches of work and their rights that they can use if needed . 7. Solving issues: Every organization has lots of issues to their practical and official work place that can be only possible to solve if the positive relationship has been built from the primary level. The committee of labor management will be more sensible to solve the disagreements and maintain the expected work environment and a healthy environment will be helpful to make a win-win situation and avoid the misunderstanding. The perfect relationship with UAW helped Ford a lot to avoid strikes and other occurrence for a long time, since 1986. Question 2: How can cooperation between the union and the company benefit both organizations? In corporation there are different types of actions that make impact on unions and workers to develop the working skills with the assessment of collaborative activities from union management. This is a step that created by the corporation and aims to make benefit for both workers and board of directors with labor relationship. There are lots of other benefits that a corporation can make between union and company these are: 1. Controlling monopolistic power: There are monopolistic powers in several industries, it means the management have the supreme power for work employment. It can lead the management to pay a less amount of money to the workers and hire less people. So in this type of cases workers get pay less and work in a bulk amount. In this situation trade union makes a balance so that there will be no jobless people and the wage amount is higher. 2. Developing the payment method: We have already known that in the trade unions gives an attention to achieve higher salary or wages for the workers which is comparatively better from the nonunionized industries. There is a power of collective bargaining in trade unions that helps workers to negotiate for a favorable payment agreement. If the workers get paid a good sum of money they give more attention in productivity and work for the organizational goals. 3. Representing worker’s safety: Trade union is always conscious about protecting their workers and ensures their health and safety according to the governmental policy. If the workers are having legal issues and improper job fired trade union helps to represent the worker. 4. Production agreement: Trade union makes system where the factories can produce an expected amount of unit without any issues. To improve the salary or payment management may agree but they also give new terms and policies to increase the productivity. After establishing this new activity trade union has the power to monitor, if it is adjustable to maintain the relationship of labor and honors. 5. Worsen nonunionized labors: If the trade union is comparatively weak it enhance the labor market’s elasticity. So there will be less secured jobs in the labor market and the factories will began to offer lower payment. So mainly from these nonunionized labor the firms are making more profits. On the other hand union will make reparation by avoiding the centralized power of the organizations. 6. Legal Status: The tread union have role in many other countries with special policies. The organizations must be authorized and provide the special rules according to the work environment. This way leads globally make a relationship among the organization and workers. Besides the government authorities will have an appropriate monitor system to get update the overall condition. Question 3: Do you believe this type of arrangement can work in other labor-management relationships? Why or why not? Labor management is a universal practice that includes industries, workers and board of management in a balanced level and union observes the overall scenario to point out the fair and unfair activities. The union also have the power to make exact decisions about the safety, security, health, work load, fair payment etc. All these stuffs are very basic needs for any labor of organizations so we believe it can work with other labor management relationships. Besides we have discuss about working inspirations which is as important as wages and the workers want more for their mental care support. The other allowances make them more loyal and develop their life style. It actually comes return the organization because when the life style of worker goes up they improve their skills and attitudes towards the organization. They also become an asset for the company and the relation works better than an agreement in owner and employees. The part of workers in an organization improves over a time period, so the relationship of labor is a life line to run the factories and developing the labor skills. The skilled workers also get acknowledged because of top to bottom communication system. They also get more inspiration and mental support to keep working with the same organization till the last and it’s more than a financial given take policy. So besides the monetary benefits the safety during work, labor rights and responsibilities is also been discussed in this arrangement topic. We have also discussed that increments in work is also very much important for employee job satisfaction. The researchers have found that the extra income beside basic salary helps to develop the overall economy specially the employee living standard after retirement. In every country wage of workers is a very important part of the economy to run, it is already shown during the time of inflation that the role of wages to develop the significant growth. So the board of management, governments always gives a good concentration to the labor rights and other activities.
