EMPLOYMENT MATTERS

A lunchtime seminar series aboutemployment relations and

the world of work

http://www.dti.gov.uk/er/emar/events.htm 

 

High-Level Employee Involvement at Delta Air Lines

Bruce E. Kaufman

Andrew Young School of Policy Studies

Georgia State University

Atlanta GA

The British AcademyLondon, 10 March 2004

Employee Involvement:Not a New Idea

When the Workmen Help You Manage 1919, William Basset

1920s: Shops Councils and Employee Representation Plans

Different Types of EI

Financial Direct vs. Indirect (Participation vs.

Representation) Low Level (Shop floor teams, quality

circles) High Level (plant councils, board of

directors group) High Level: about 7% of companies doing

EI

Key Features of EI

Scope (Narrow vs. Broad) Access to Management (Low vs. High) Power/Influence Information Informal vs. Formal

Delta Air Lines: the 1980s

A “top 100” employer A classic “high road” nonunion firm Enlightened Paternalism and Velvet Glove

Command/Control Very high employee loyalty

Delta Air Lines: the 1990s

Intensified competition, turbulent markets, global expansion

New management team Paternalism is out, business partnering is in EI adopted at first for non-strategic reasons Has grown into a central part of the business

model Probably the most formal, advanced EI program in

USA

Delta EI Program: Structure

Top-Level: Delta Board Council• Seven employees, each representing a business

division• Peer selected, two years terms• Attend BOD meetings, meet with CEO, CFO and

EVPs• Base visits around the world• Project assignments• Preview employee sensitive

communications/policies

EI Program contd.

Middle-Level: Five Division Employee Councils• Flight Attendant Forum• Technical Operations Council• Airport Customer Service Forum• Cargo Partnership council• Reservations Sales council• Employee elected representatives• Deal with all issues affecting that division

EI Program contd.

Lower-Level: Base councils• Elected representatives• Handle base level issues• Form Continuous Improvement Teams

Costs

Employee/Management Time Slower/Constrained Decision Making Higher Labor Cost Unintended Collective Bargaining Long-Run/Uncertain Pay-Off Backfire Effect

Benefits

Energize the Employees Organizational Alignment/Coordination Production Efficiency/Quality Communication/Information Flow Organizational Change Management/Employee Development Employee Relations

Lessons Learned

Not for Everyone Impact the Bottom Line Core Part of the Business Long-Run Focus Trust and Mutual Gain Distributive items Off the Table Empowerment and Problem-Solving

Lessons Learned – cont.

Management Commitment Early Bumps Training External Pressure Cooperative Employee Relations vs. Union

Avoidance

 

DISCUSSION  

 

EMPLOYMENT MATTERS

A lunchtime seminar series aboutemployment relations and

the world of work

http://www.dti.gov.uk/er/emar/events.htm