The Grain Millers’ Rolein Creating

Labor/Management PartnershipsFor New Work Systems

A STATEMENT OF POLICYAND GUIDELINES

FOR LOCAL UNIONS

American Federation of Grain MillersAFL-CIO, CLC

4949 Olson Memorial Highway, Minneapolis, Minnesota 55422 / 612-545-0211

AMERICAN FEDERATION OF GRAIN MILLERSEXECUTIVE BOARD

Robert W. Willis, General President

Larry R. Jackson, General Secretary-Treasurer

Howard W. Roe, Executive Vice President & Assistant to the President

Larry Barber, North Central District Vice President

Elmer Farris, Southern District Vice President

Shawn Grimm, Eastern District Vice President

Harry Guildner, Pacific Coast District Vice President

Ray Harness, Great Lakes District Vice President

Mike Konesko, Canadian-Michigan District Vice President

Ron Schreiber, Central District Vice President

Mike Taylor, South Central District Vice President

Acknowledgement

We would like to thank especially Torn Schneider and the employeesof Restructuring Associates, Inc. in Washington, DC. for their assistance andcounsel in developing this document. The International Union greatlyappreciates their contribution.

Robert W. Willis Larry R. JacksonGeneral President General Secretary- Treasurer

All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, includingphotocopying and recording, or by any information storage or retrieval system, except as may be expressly permitted by the 1976 Copyright Actor in writing from the publisher. Requests for permission should be addressed in writing to the American Federation of Grain Millers, 4949 OlsonMemorial Highway, Minneapolis, MN 55422.

TABLE OF CONTENTS

Page

Introduction………………………………………………………………….1

Section 1. – The World In Which We Work……………………………...3

Section 2 – American Federation of Grain Millers’ Responseto a Changing World Economy…………………………….9

Section 3 – What is a New Work System?…………………………… 13

Section 4 – Words of Caution…………………………………………..17

Section 5 – The Union’s Role in New Work Systems………………..19

Section 6 – Union Involvement in New Work Systems:What Your Managers Should Know…………………….. 23

Section 7 – Approaching Management About New Work Systems...25

Action Plant for Implementing a NewWork System………………………………………………. 27

Sample Letter of Agreement on New Work Systems…. 28

Section 8 – Fighting Union-Busting “Quality”or “Involvement” Efforts…………………………………...31

Section 9 – Union Opponents of Labor-Management Cooperation:The Grain Millers’ Reply…………………………………..33

Appendix – Resource Bibliography

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INTRODUCTION

The following material is intended to make local union leaders as knowledgeable,if not more so, as their managers about business strategies that companies can use to meetcurrent and future competition. In particular, it describes the concept oflabor/management partnerships to create a “new work system” (NWS) as the one strategythat combines appreciation for the abilities and experience of workers, respect for theimportance of the union and a high probability of success.

The contents are designed to helplocal unions be a true partner withmanagement in companies that earnpartnership and a solid and successfulopponent to companies that want toweaken or circumvent the union.

In either case, the material will helpeducate union members about why theunion has taken a particular stand, andwhy, when there is a membership vote,union leadership supports a particularposition.

The contents are based on theseprinciples:

1. Any change or improvementeffort will fail in the long-run without thereal and meaningful empowerment ofworkers and the equally real involvementof their union in every phase of theeffort.

2. A company that seeksimprovement in its operations needs toaddress four areas of interest and concernto workers: their skills, understanding,opportunities and rewards.

3. Unions are capable of performingas equal partners with management,sharing responsibility for the design andimplementation of comprehensive andinnovative work systems.

4. Union leaders must re-think thetraditional role of the union in its dealings

with management if it is to understand thechange in the role of a union and itsleaders in a new work system.

5. Efforts that ignore or avoid theunion are a danger to the union andshould be altered to involve the union oropposed if a partnership is rejected bymanagement.

6. Every effort to improve acompany’s effectiveness, whether inquality or cost of product or productivityis unique and must reflect the particularneeds of the company and the union.There is no one way to do things.

The analysis begins with a look at theworld in which the members of the AFGMwork and how that world has changed inthe last twenty years. It is followed by theGrain Millers’ position on how laborshould respond to these trends, particularlythe challenge of global competition.

It continues with a lengthy descriptionof all the elements that can comprise a newwork system and what they mean forworkers and unions. In addition to thevirtues of a new work system, some wordsof caution are offered.

In the next section, the union’s role innew work systems is examined in depth.

Next, there is a plan for approachingmanagement about NWS, to insure thatmanagers understand what the union’s role

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should be. It includes a sample letter ofagreement that can be used in negotiations.

For those cases in which a companyopposes union involvement, an actionplan for the union is provided.

Another section describes what laborcritics of employee participation have tosay. Their concerns are legitimate andmuch of their advice is reflected in thematerial.

The analysis concludes with a resourcebibliography for further information on thechanging economy, new work systems andthe role of unions.

IF YOU HAVE ANY QUESTIONSABOUT HOW TO USE THIS BOOKIN YOUR LOCAL UNION, CONTACTYOUR REGIONAL VICEPRESIDENT.

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THE WORLD IN WHICHWE WORK

Members of the American Federation of Grain Millers work in a world that haschanged enormously in the last two decades. We live in a world economy which isfiercely competitive, where the competition is endless and constant, and from whichwe cannot escape.

The changes that have occurred can besummarized in five “basic trends”:

• Global Competition• Technological Revolution• Deregulation• Excess World Production Capacity

and Supply of Basic Goods• Changing People, Values and

Demographics

No one can or will stop these trends, orthe restructuring of our world. But anybusiness that wants to thrive, staycompetitive, or just simply survive in theyears ahead must take note of them, andconsider their implications. Any union thatwants steady employment and decenttreatment for its members must deal withthem. And any worker who wants tounderstand the forces that shape his or herworking life must understand them.

Global competition

Foreign imports and foreign ownershipare the most obvious indicators of howcompetition against the U.S. markets hasgone global in the past two decades.

1. Steel. Foreign imports account forover 20% of the steel consumed in theU.S. today, compared to 13.5% in 1975.In the mid 1980s, before governmentImport restrictions went into effect,foreign competition had a 26.4% share ofthe U.S. market for steel. That translatedinto the loss of nearly 450,000 jobs.

2. Autos. Japanese auto makers took34% of U.S. car sales in August, 1990, arecord that for the first time exceededGM’s market share. The Japanese shareof the U.S. market over the first 8 monthsof 1990 year averaged 30%, up from 25%for the same period in 1989.

3. Textiles. During the 1980s, importsof yarns, fabrics, and clothing rose 184%.Foreign competitors have taken 40% of themarket share in the U.S., at a cost of 800closed textile mills and 1 59,000 jobs.

4. Consumer electronics. AllAmerican consumers know that few, ifany, consumer electronics such as VCRs,stereos, etc. are made by Americancompanies.

The list of industries which lostsignificant market share to foreign

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competitors could fill up several pages andstill not mention the foreign competitorswho no longer export their goods to theU.S., but make them right here.

1. Tires. Firestone, Armstrong,Uniroyal/Goodrich and General Tire haveall been purchased recently by foreigncompanies. 40% of all tires made in the U.S.are made by foreign-controlled firms.

2. Televisions. Nearly all the TV setssold in the U.S. are made in the U.S., but byforeign-owned companies. RCA andMagnavox are both owned by French andDutch companies, respectively.

3. Chemicals. German, Italian, Frenchand Japanese companies purchased U.S.chemical manufacturers in the 1980s. Forty-five percent of U.S. chemical workers arenow employed by foreign-owned firms.

4. Food Processors. Even the foodprocessing industry saw foreign-ownedtakeovers: Grand Metropolitan of GreatBritain bought Pillsbury, and Nestle ofSwitzerland bought Carnation.

At the same time. U.S. companies areexpanding overseas. General Motors andFord earn the largest share of their profitsfrom overseas sales. ConAgra. Philip-Morrisand Pepsi-Co all purchased foreign foodoperations during the 1980s. General Millsentered into a joint agreement with Nestle inEurope, and has jointly purchased a Britishcereal company with Nestle.

Events overseas are likely to make theglobal competition even more intense.

• When they integrate their markets in1992, European countries will lower thetrade barriers and other restrictionswhich make them uncompetitive.

• Eastern Europe is beginning tomodernize and will eventually increasetrade with the West.

• GAIT and other world-wide tradeagreements are trying to make the flowof goods and commodities betweencountries less restricted.

• Mexico is entering into free-trade talkswith the U.S. and Canada which couldease trade barriers in both directions.

The bottom line is that competition fromforeign sources, whether imports or productsmade right here in the U.S., will continue togrow.

Technological Revolution

The continual change and instability inthe business environment can be attributedin great measure to the breathtaking pace oftechnological advance. Technologies used inproducts and processes change in monthsand years rather than decades. Personalcomputers are out of date almost as soon asthey are marketed. Digital recorders (opticaldisks) will probably replace CDs whichreplaced cassettes which replaced records.

Automated production processes reducedthe manhours to produce and ship a ton ofsteel by 50% over 1982. Advances incomputerized control systems are making iteasier to move a product from the draftingboard to the production floor. Westinghouseuses such “expert systems” to automaticallygenerate the instructions for production. Thischopped the lag from design to productiondown to 1 day from 36 days.

Information processing technologycontinues to improve. As it improves, itputs new pressures on manufacturers.

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Grocery stores are using checkout scannersto see how well a brand of cereal is

Breakthroughs inbiotechnology and

molecular engineeringmay have significant

impact on thefood processing industry.

selling, and what kind of profits it generates.If a product does not sell well and turn agood profit, the grocer will pull it from theshelf.

Breakthroughs in biotechnology andmolecular engineering may have significantimpact on the food processing industry. Abioengineered cheese enzyme may replacerennet and speed up the cheese makingprocess. A synthetic fat has been developedwhich is already appearing in cold foods,like ice cream. Another company is trying tocome up with a synthetic, no-calorie fatwhich can be used in baked products. Thesetechnologies could give a food processor anincredible edge over the competition.

Developments in food packaging, likein biotech, will give those companies thatcreate them a competitive advantage. MAP,or modified atmosphere packaging, allowsfresh foods to last longer underrefrigeration. Sous-vide methods allowsomeone without much culinary skill toprepare complicated dishes or meals thathave already been partially cooked andsealed in a vacuum. Aseptic packing allowsfoods that are not shelf stable to last longerin the grocery store.

In the food industry, technologicalchanges boil down to shorter product lifecycles and an explosion of new products. In1989, over 9,820 new food products wereintroduced, a 20% increase over 1988 and a25% increase over 1987, even though shelfspace is not growing, and people are noteating more.

Deregulation

The trend toward deregulation, both athome and abroad, has also increased thesheer numbers of competitors in themarketplace. Financial, transportation andcommunications industries were allderegulated during the 1980s.

While there have been some benefitsfrom deregulation, the unwillingness ofgovernment to properly oversee entireindustries has created pain and hardship formillions of Americans and Canadians,especially workers at companies such asAir Canada, Eastern Airlines and Pan Am.Workers in the construction industry, whichdepends on the good health of our financialinstitutions, have also been hit hard byderegulation.

When the transportation industry wasderegulated, shipping by railroad becamemuch less attractive, and shipping by truckmuch more so. At the beginning of the1980s, General Mills, for instance, shipped95% of its product by rail. Today, it ships95% of its product by truck.

The deregulation of the communicationsindustry spawned many competitors forAT&T -- MCI, Sprint, etc.

When the federal governmentderegulated the financial industry, saving &loan companies benefitted because theywere able to offer much higher rates of

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It may cost a companymore to modernizeplants, do project

research anddevelopment, or build a

new facilitythan ever before

return on investments than previouslyallowed. Unfortunately for all of us, thatnot only meant more competition for thebanks, but the collapse of real estatemarkets and many S&Ls as well.

Deregulation of financial marketsworld wide – a likely result of theintegration of the European countries in1992 – will probably lead to another kindof global competition in the 1990s – forinvestment capital. It may cost a companymore to modernize plants, do productresearch and development, or build a newfacility than ever before because U.S.companies are competing in a globalcapital market. Investors will put theirmoney where the greatest rates of returnare, and they are likely to be in theEuropean Community, Eastern Europe, orthe Far East, not in Ontario, California,Minnesota or Illinois.

Excess World Production Capacityand Supply of Basic Goods

Another of the new economic realities ofthe last two decades of the 20th century is thepersistence of excess industrial productioncapacity and supply of basic goods. Thereasons are many, including improvingtechnologies, deregulation, and the entranceof many Third World nations into the ranksof industrialized societies.

Excess production capacity usually resultsin a company, or a nation, exporting productsor goods it cannot sell at home. Theincreased competition that results in theglobal marketplace often lowers prices,profits, and wages. Excess capacity problemswere part of the steel industry’s woes in theearly 1980s. Over the decade, U.S. steel-making capacity declined 25%. But overallworld production capacity rose 10%.

Auto-makers are also plagued by excessproduction capacity. Ford Motor Co.estimates 20% excess auto-making capacityworld-wide. U.S. automakers have idled 3%of their capacity over the past decade. Evenso, the Japanese are building new assemblyarid manufacturing plants in the U.S. andCanada.

High tech industries, too, have sufferedfrom excess capacity, particularly thesemiconductor industry. NationalSemiconductor shut down several plantsoverseas and laid off 4,000 employees in1990.

There is also an excess supply of foodstuffs, such as wheat and rice. Thanks tomechanization, pesticides, fertilizers andimproved practices, the wheat harvest inKansas hit an all time high in 1990. Butfarmers’ export markets have shrunk: theUSSR is nearly self-sufficient and Iraq hasbeen cut off from world markets. Whenbumper wheat crops from other countries

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are added to the supply, lower wheat pricesare the result.

Demographics

The last trend is demographics.“Demographics” is the study of social andcultural patterns in the population. Itincludes such things as levels of educationin different economic brackets or differentregions; changes in how or where peoplechoose to live; and population growth ordecline for various ethnic groups or agegroups.

Changes in demographics have asignificant impact on the consumption ofgoods. Companies make decisions aboutwhere to expand their facilities or buildnew ones based in part on these factors.They also make decisions about closingplants.

There are several demographic trendswhich bear watching.

1. The population growth in the U.S. isslowing. In the 1950’s, it gained 1.85%yearly. In the 1980’s, it gained only 1.00%yearly, and it will grow even less in the1990’s.

As a result, the workforce is growingmore slowly. The number of people outthere buying products is also growing moreslowly.

2. The population of the U.S. is aging.The median age in 1980 was 30.0. Theprojected age in the year 2000 is 36.3.

As a result, both the average personin the workforce and the average consumerare becoming more middle-aged.

3. More women are entering theworkforce. What growth there is in theworkforce will come mostly from women.63% of all new entrants into workforce inthe year 2000 will be women.

4. The West Coast, Arizona, Texas, andFlorida will have the greatest populationgrowth between now and the year 2000 (duemostly to immigration). North Central andNortheast will have population declines (or atbest, stable populations).

5. And finally, people’s consumptionpatterns are changing -- because of timepressures, health consciousnessenvironmental consciousness, and the sum ofthe demographic trends above.

• Fewer people skip breakfast -- only about7% as compared to 12% 5 years ago.

• The 6-55 age group (or their parents) aremore conscious of health. Consequentlythey like high-fiber and bran cereals, butuse less sugar.

• Snacking patterns change as the numbersof two-worker families grow. The typicalfamily today eats together only 19% ofthe time.

An illustration of the amount of demographicchange in the future comes from theDepartment of Labor’s Bureau of LaborStatistics:

• In 1975, the average person would changecareers between one to two times inlifetime and jobs between four to fivetimes;

• By year 2010, will change careersbetween four to five times and jobsapproximately ten times!

Demographic changes have implicationsfor both the marketplace and the workplace.In the workplace, the demographic shiftsmean:

• a shrinking labor pool,• higher labor costs in the form of

higher wages, benefits and pensions,

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• increasing competition at the top of theorganization for advancement andhigher level jobs, and

• a greater emphasis on flex-time andpart-time work and quality day care.

In the food marketplace, which mostaffects AFGM members, the changes addup to:

• fewer people to buy, but• more disposable income with which to

buy,• greater demand for convenience

products, and

• greater emphasis on healthy,nutritional, and environmentallyconscious products and packaging.

The overall implication of these fivetrends is that change is inevitable.Flexibility and responsiveness to themarket are necessary in order to compete.

The approach to business embodied innew systems of work will enablecompanies to thrive in a constantlychanging, heavily competitive businessenvironment as workers maintain decentstandards of wages and benefits whiledoing meaningful and rewarding work.

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AMERICAN FEDERATION OF GRAIN MILLERS’RESPONSE TO A CHANGING WORLD ECONOMY

The American Federation of Grain Millers, through its dealings with dozens ofemployers and through its research on economic and social changes, has come to believethat global economic competition, new technology and other trends are not onlyincreasing pressures on U.S.- and Canadian-based business, they are transformingbusiness.

The concept of a domestic businesshas given way to the multinationalcorporation. The definition of amultinational corporation may once havereferred strictly to a company’s ability toexport goods produced in the U.S. Now,it means that manufacturing, financing,marketing and all other aspects of abusiness are global in nature.

Social and governmental constraints oncorporations are limited and scattered.Nations, provinces, states and cities findthemselves competing to enticecorporations to do business within theirboundaries. Whether a company is ownedby U.S. or foreign interests, it has, literally,a world of options to choose from in how itoperates and they will generally choosethose that offer the most flexibility.

Not only is business changing. Peopleare changing, too. The traditional goal ofthe American labor movement is to createsocial justice by winning for all workers afoundation of decent pay, good benefits,and safe and healthy working conditions.This is accomplished through organizingand traditional forms of collectivebargaining. Union members and potentialmembers still share those goals. But theyhave added aspirations for interesting andmeaningful work, personal growth anddevelopment, and a place in the decision-

making process. Traditional laborrelations are not geared to meet these newaspirations. So workers are no longercertain of the connection between labor’straditional activities and their own well-being.

Rapid economic, technological andsocial change holds many dangers forcompanies and unions. The changing

Not only isbusiness changing

People arechanging, too.

aspirations of people has its risks as well.The AFGM holds that unions, even at thelocal level, must understand and respondto this new environment.

Years of reliance on one basic businessstrategy or production process may wellleave a company ill-prepared for rapidchanges in markets and technology. Yearsof effort by the union to gain hard-won

10

wage and benefit scales and job securitymay be lost almost overnight when acompany insists that the only effectiveresponse to competition is to slash its laborcosts with concessions or layoffs.

But this is only one strategy of severalavailable to companies and unions. And itusually hurts a company by depriving it ofthe experienced workers who are let goand destroying the morale and initiative ofthe workers who remain.

In fact, there are several competitivestrategies for survival, each with its ownimpact on unions:

1. Find the lowest-cost labor throughwage cuts, layoffs or “runaway” plants.

2. Use technology as a substitute forpeople.

3. Provide customers with qualityand service to add value to a product,thus justifying premium prices.

4. Make the most of human capitalthrough the organization of work, thusjustifying high wages.

Clearly, unions must fight against thefirst option, both in the plant throughtough negotiations and in the politicalarena through legislation. Unions mustalso monitor carefully the second option tomake sure that automation replaces onlydangerous, dirty or mindless work whileenhancing the efforts of people whose jobsrequire skill, dedication and thought.

The AFGM also rejects approachesgrown more common in the last fifteenyears: employee involvement, qualitycircles, and total quality systems. Some ofthese approaches try solely to changepeople, exhorting or persuading them thatthey must be problem-solvers or worksmarter.

Most managers wantlarge gains

in productivityfrom their workerswith an absoluteminimum of pain

or effortfor themselves.

Others may provide an increased level ofinformation about the company and newanalytical tools such as the techniques ofstatistical process control, but none ofthem alter, or even examine, thetraditional forms of work.

While more and more companiesproclaim their understanding thattechnology, people and organizations areinterdependent, only a fraction of thosecompanies act on that understanding.And still fewer companies balance theireffort and expenditure by treating people,like technology, as a long- terminvestment or capital expense. Mostmanagers want large gains inproductivity from their workers with anabsolute minimum of pain or effort forthemselves.

The AFGM believes that the last ofthe four options – looking at theorganization of work as a competitivestrategy – holds the greatest promise forunions and their members.

It is a strategy that develops andsupports a high level of skills in aworkforce, making it possible to providehigh wages while protecting

11

competitiveness and profitability. Manyof America’s most respected educators,government officials and businessleaders support this approach as the bestway to accomplish the third option,insuring quality and value for customerswhile protecting pay and benefits.

The AFGM recognizes that thisstrategy has its costs and its perils. Forour nation, there is the cost of upgradingour entire educational system to properly

. . . the effort tounderstand and respond

to its environmentis the most

important taska union faces.

prepare our children for the demands ofthe workplace. For labor, there is theperil of taking on additional roles andresponsibilities while protecting what isuseful and important about ourtraditional role.

Thus, the effort to understand andrespond to its environment is the mostimportant task a union faces. A unionthat understands its environment canmake informed choices about itsresponse. It can work overtly with oragainst a company that is trying totransform itself, using clearly thought outstrategies and tactics. It can prod acompany with limited vision orunderstanding to act in ways that benefiteveryone.

Or, it can sit on the sidelines, leavingall decision-making to management.Sitting on the sidelines, however, isdangerous for a union, robbing it ofcontrol over its fate.

if a union determines that it mustrespond to changes in the company bytaking on a new role, it then begins byexploring that role, marshalling theresources it needs.

Many unions have the necessaryskills but have used them in other arenassuch as politics and legislation. Thedifficult part about expanding the use ofthese skills to new areas is the expenseand time, and most unions are alreadyoverburdened.

The effort, however, makes for astronger union. The lessons learned canbe used to improve stewards’ training orbargaining skills. It may alter therelationship of the union to its members.Unions can work with members at timeswhen they are not angry, scared, ordisappointed. It may provide newopportunities to demonstrate the valueand importance of a union to themembership.

Once the union decides on a specificcourse of action, it should be carried out ina skilled, competent fashion. Whether apartner or an impediment, the union mustbe well informed and good atcommunicating its knowledge tomanagement and its members.

That is what this material is all about.It provides the basics of new worksystems, details their benefits and theirproblems, and suggests additionalresources and assistance. By broadeningyour vision and sharpening your analyticalabilities, you can help make the future lessfearsome for AFGM members.

12

13

WHAT IS A NEW WORK SYSTEM?

The term “new work system” or NWS describes a way in which the workforce,the workplace, and work itself is organized. Because every company and facility isdifferent, there is no one kind of new work system. But all are designed and structured tobe cooperative workplaces where people are viewed as the key to competitiveness.People get the most out of the technology; they provide quality, good service andcontinual improvement.

The major difference between newwork systems and traditional organizationsis in the role of the human resources in theorganization.

New work systems seek to buildcommitment among employees bychanging the way businesses aremanaged and how labor andmanagement relate to each other.

New work systems are built aroundthree basic elements critical to producethe commitment necessary for anorganization to compete in the changingworld economy:

1. The recognition and treatment ofpeople as a company’s most valuable andenduring asset,

2. The recognition and treatment ofall employees as partners in the business,and

3. The involvement of all employeesin the management of the business.

When people are recognized to be abusiness’s most valuable and enduringasset they are given caring and carefultreatment including:

• good wages and benefits.• a safe and healthy workplace,• employment security.• staffing at adequate levels so that

long hours arid highly stressfulassignments are not routine,

• recognition of employees’ personalcommitments at home and in thecommunity,

• extensive and continual training, and• respect for their chosen labor union

affiliation.

Employees are used wisely, with everyeffort made to enhance their abilities. Inreturn, an employee in a new work systemtakes on a new responsibility for helpingthe organization reach its goals. Withoutdeveloping this kind of responsibility in itsemployees, a business will suffer long-term competitive disadvantage.

In return for asking so much from itsemployees, a company with a new worksystem must offer fair value and treatment.There is no other way to create a concernin employees for a company’s competitivePosition.

Fair value means wages and benefitscommensurate with the high level skills,knowledge and responsibility’ requiredby a new work system. It means thatemployment security is a priority. Itmeans a safe and healthy workplace.And it means that other forms of rewardsand recognitions are available to provideconstant reminders that the companydoes not take its employees for granted.

Fair treatment means an opportunityto learn, and to contribute. It means thatworkers and their unions are treated withrespect and dignity. It means that

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management takes care to staff theorganization at adequate levels so thatlong hours and highly stressfulassignments are not routine. It meansthat the company accepts its socialresponsibility by recognizing that it doesnot have sole and complete call on time,energy and loyalty of its employeesbecause families and communities alsodepend upon skilled, committed andcompetent men and women for theirsuccess and well-being.

Treating people as partners andinvolving them in all aspects of thebusiness are management behaviors verydifferent from those in most companies.They spring from a set of values that areunderstood and held by everyone in theorganization.

New work systems values include:

• trust and integrity,• respect for the dignity of individuals,• quality,• productivity,• flexibility and adaptability,• cooperation with stakeholders,• recognition of effort and

achievement,• growth and development,• openness,• customer service,• personal safety and security, and• dedication to the continuous

improvement of every aspect of thebusiness.

These values are basically the samein all new work systems, cutting acrosscompany and industry lines, regardlessof the technology or the complexity ofthe work process. These values are notjust spoken, they are acted upon. In atraditional organization “quality” may besaid to be a value, but the reality is that“quality” takes a back seat to gettingproduct out the door.

The values of a new work systemstem from a fundamental belief:

The people who perform the workcan and should understand thebusiness well enough to figure outwhet to do with a minimal amount ofmanagement.

To that belief is linked a second:

People will be motivated to figure outwhat to do and then will do U only ifthey are committed to the success ofthe business.

A new work system is further guidedby the additional beliefs that:

• jobs should build self-esteem,• everyone should share the benefits of

success,• everyone should have the freedom to

contribute his or her talents to thesuccess of the enterprise,

• the organization must be productiveand competitive,

• participation improves performance.and

• shared decision-making and problem-solving is more effective than that ofindividuals.

15

A new work system backs up thesebeliefs by structuring the organization sothat workers:

• manage their own work performance,• monitor their own work performance,• make proactive changes in the

workplace,• help fellow employees and be helped

in return,• understand the business,• make decisions based on an

understanding of the business andother parts of the system, and

• provide high levels of customersatisfaction.

In sum, a worker must be able to dothe right thing, rather than the prescribedthing.

New work systems have anorganizational structure which encouragesemployees to take on these responsibilities.This type of structure may feature:

• fewer levels of management,• autonomy and responsibility

distributed throughout theorganization,

• self-managing work teams,• Open communications,• pay for skills compensation, and• bonus or gainsharing programs.

A flattened hierarchy means there arevery few levels between the top and thebottom of the organization. Decisions aremade at the action level by the employeeswho have to carry them out.

In order to be decision-makers, peopleat all levels in the organization must havemanagement skills, greater autonomy andresponsibility. This may mean that thereare fewer job classifications and workrules, a break with traditional union

safeguards accepted by the union onlywhen the all of the elements of a newwork system are accepted bymanagement. It also means thatemployees must be trained to managethemselves.

Communications throughout theorganization are open. Information aboutthe business is shared freely with allemployees, who are given the trainingthey need to understand it and use it toimprove their work process. In return,workers are expected to share theirknowledge of the process and helpimprove them. High trust levels makethis kind of communication possible.

Teamwork means that groups ofemployees are given the means toaccomplish certain operations or tasks.The team responsibilities can include:

• work operations,• work scheduling,• training,• problem-solving,• quality control,• ordering,• customer service,• hiring, and• improvements in the production or

service process.

In an NWS, workers are multi-skilledand are paid accordingly. They are notrestricted to one dull, monotonous job. Apay-for-skills compensation system isbased on the number and type of skillsacquired by the individual employee.The more skills learned, the greater theemployee’s pay.

Additional compensation is available inthe form of a profit and productivity bonussystem. Such a system recognizes the factthat workers know more about theirproduction process and can participate in

16

suggestions and solutions for improvingthat process. The financial benefits thatresult should be shared with the peoplewho created them.

Management ranks may be lean in anew work system because the workershave no need for supervisors to continuallymonitor their performance. Managers willhave the time to put their skills to work onlong-range planning, providing resourcesfor work teams, and coaching, training anddeveloping individual employees. Formany managers this will require extensivechanges in attitude and behavior, whichcan be obtained only by technical,administrative and people skills training.

In a successful new work system laborand management will work together as amatter of course, particularly in designingand implementing the new work system.Each side will value the other’s viewpointand traditions. Cooperation will not bebased on a myth that union and companyare alike, but on the mutual understandingthat strength is bred of diversity, toleranceand the resolution of conflict.

Each side will understand theimportance of due process for individualswho have a complaint or who are chargedwith a serious violation of organizationalpolicies or standards. Thus, disciplinarymatters that cannot be resolved throughinformal agreements will be handled by astructured grievance procedure.

Individuals in a new work system aretreated with respect and are appreciatedfor their uniqueness. Minorityviewpoints are encouraged.

Many new work system organizationsinvolve their customers and their suppliersin their business, too. Input fromcustomers and suppliers is used indesigning new products, in laying out

facilities, in developing equipment, andcontinuously improving products and

Cooperation will notbe based on a myth

that union and companyare alike,

but on the mutualunderstanding thatstrength is bred ofdiversity, toleranceand the resolution

of conflict.

services. This effort is not limited toengineers and marketing people, butincludes the people who make theproduct or provide the service.

Successful new work systems useinformation effectively to help peoplemake quality decisions. They impartknowledge through training andeducation to create a knowledgeable,multi-skilled workforce.

Finally, new work systems aredynamic. They are really to adapt tochange and, in fact, welcome change as achance to get the jump on new marketsand opportunities.

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WORDS OF CAUTION

The American Federation of Grain Millers encourages its local unions and theirmembers to become partners with their employers in meeting competition andsafeguarding employment and pay through a new work system. But the unionrecognizes that the creation of a new work system is a long, complex process. It is evenmore difficult when a company is transforming itself from a traditional organization.That is one reason workers need a union as much as ever, even though good employersmay now “value” their workers highly and wish to treat them accordingly.

While union representation is obviouslynot a requirement for a company creating anew work system, it can provide a definiteadvantage. The union provides a valuableperspective in problem-solving anddecision-making. It acts as the conscienceof the organization when there is lessreliance on highly detailed workrules andprocedures to provide the “answers” toproblems or concerns.

Even the most well-meaning employerand vigilant union may find themselvesstraying from the new beliefs they profess.The result can be the misuse of the processand the abuse of workers.

Abuse can come from the constantencouragement to workers to “do whateverit takes” to “get the job done.” There arelimits to human ability and energy andthere are ethical lines that should not becrossed. Furthermore, the union mustmake certain that the company recognizesthat some employees must live withconstant non-work responsibilities such aschild and parent care.

One way that new work systems areoften said to be different from traditionalcompanies is that they are organized forthe ninety-five percent of employees whowant themselves and their company to do

well, and not for the five percent who are“shirkers” or “troublemakers.’ New worksystems will not magically transform every

Even the most well-meaning employerand vigilant union

may find themselvesstraying from the new

beliefs they profess.The result can bethe misuse of theprocess and the

abuse of workers.

one of that five percent into modelemployees and it may create t hetemptation to “let the workers take careof them.”

Misuse of a new work system cancome from the expectation that workerswill take on responsibility for traditionalmanagement tasks such as discipline.

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Union members can and should develop abasic set of mutual expectations about jobperformance and responsibility – and theyshould talk to each other when thoseexpectations are not met. Yet the authorityto discipline remains with managementand the responsibility to provide memberswith due process in the form of grievancesand arbitration remains with the union.

But poor performance or violation ofrules and policies is not the only issue.New work systems can create tremendouspressures for conformity. A new worksystem should not be designed to be acontinual weeding out mechanism of theleast productive or innovative workers. Infact, an NWS should encourageconstructive conflict and creativity. Oneway to do this is by encouraging andprotecting minority viewpoints.

So while it is not fair that someworkers must “carry” others who refuseto do work at a mutually acceptable levelof skill and performance, it is equallyunfair for workers to be expected topunish their peers. And while dealingwith cynics, “naysayers” and whiners canbe frustrating, honest dissent should berespected.

In sum, a unionized company relyingon a new work system requires a strong,smart union that listens to its members(who are sure to let the union’s leadershipknow if it is straying from theirexpectations about its proper role). And itrequires union leaders who can representthe interests of the members in all aspectsand at all levels of the new work system.

That is when a new work system willperform “as advertised.”

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THE UNION’S ROLE IN NEW WORK SYSTEMS

Cooperation, partnership, “jointness,” or whatever term is used to describe therelationship in a new work system requires a union to be proactive, an equal partner indecision-making and problem-solving based on a continuing effort at defining mutualinterests as well as an appreciation of their separate interests. For the union, this meansaccepting some new and expanded responsibilities.

New work systems require labor-management cooperation on more Issuesthan in traditional labor-managementrelations, including:

• work operations & design,• pay systems (beyond rates & scales),• training, and• “governing” the system.

Specific areas of interest orresponsibility that come under theseheadings might include “being a memberof a steering committee,” “designingskill blocks,” or “facilitating workteams.”

The issues to open joint problem-solving are much greater. They are basedon a knowledge of the mutual interest ofboth parties. Both sides are seen ascompetent with something of value tobring to the party.

These issues emphasize the needs ofthe 95% of union members who do nothave the kinds of problems or complaintsthat are the usual basis for grievances orwhose needs are specifically spotlightedonly during bargaining.

Thus, new work systems haveimportant implications for the way inwhich unions function and in theirrelations with their members andmanagement.

All working relationships require anelement of trust. The difference between

traditional labor-management relationshipsand those in new work system is that thetraditional ones are based on a series of“backstops” that are created for thosetimes and situations in which therelationship breaks down, or things fallthrough the cracks.

In fully developed new work systems,there is less reliance on written procedures,the “answers” contained in the contract.Detailed contracts are evidence of effortsto cover every conceivable situation orproblem with an answer or procedure.They reflect a lack of trust.

Replacing a traditional contract witha briefer document that emphasizes trustdoes not mean that the relationship issimpler or easier. There are new skillsneeded and new demands of time andresources.

In new work systems, both sides treateach other professionally. For the unionin particular this results in increasingdemands on the union as an organization.It cannot simply react. Proactive effortsrequire research, preparation, andknowledge of subject matter. Both sidesneed to be good at being adversaries andgood at being cooperative. There is acontinuing effort at defining mutualinterests as well as an appreciation oftheir separate interests.

If the organization has to be flexibleto be successful, so does the labor-management relationship. Values should

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be generally consistent but the structuredsystems flexible. Contracts become guides

Replacing a traditionalcontract with a briefer

document thatemphasizes trust

does not mean thatthe relationship issimpler or easier.

There are new skillsneeded and newdemands of timeand resources.

and not the means of stonewalling change.What kinds of organizational skills

and resources does a union need?NWS labor-management relationships

are problem-solving relationships ratherthan judicial or bargaining processes. Ofcourse, traditional labor-management hassome problem-solving aspects to it, and itoften sets up problem-solving processes,for example, Health & Safety Committees.A NWS elaborates on that model.

As a partner with management, theunion may be asked or expected to take ontasks and responsibilities usually reservedfor management, such as planning andorganization development.

As with management, the type andamount of communications needed in asuccessful new work system is greaterthan in a traditional environment. Unions

also need to understand group processsince so much of the communications inthe organization takes place betweengroups.

The union may share responsibility fortraining, including designing thecurriculum and conducting classes. AtAFGM Local 59 in Lodi, California,AFGM members have learned and are paidextra for using the skills and techniques ofprofessional trainers. They have used thoseskills to train managers as well as unionmembers. Meeting management is a skillimportant not only to work teams, but tothe union in making its own meetingsmore effective.

Many unions involved in new worksystems have responded to the changesbrought about by altering their usualways of representing the membership.

Methods of dispute resolution, suchas grievances, become back-ups, orsecondary means of solving problems.First steps are informal and based on thegovernance system for the NWS, whichis usually team-based.

Grievances are still available. You donot dispense with due process, after all.But there is an effort to avoid third partydecision-making arbitration in favor ofthird party facilitation or grievance-mediation.

Another key element of new worksystems that may require a change in theunion’s role is a reliance on flexiblework rules. This may invite more abusebecause it is less clear cut. Unionstewards will not be able to rely oncontracts or rigid job descriptions foranswers. Instead, they must engage ininformal problem-solving and decision-making with management.

Performance feedback among peers isthe first step in dealing with performance

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problems and violation of norms orstandards of behavior in NWS. Manyunions have recognized that peers oftenfind it difficult to give effective feedbackand there is a legitimate concern aboutunion solidarity and loyalty. So, in mostunionized NWS there is a system ofprogressive discipline as a back-up toperformance feedback. Discipline isdesigned to change behavior, not to punishor gain revenge.

Negotiations may also be conductedin a different manner. With a stated goalof problem-solving, negotiations become“interest-based.” The union’s legitimateinterests include fair income for members,employment security, career mobility,safety on the job, and fair treatment. But,these interests and others are approachedas problems to be solved rather than“postures.” Management, too, has itsinterests.

Thus, in NWS, contracts are not rigid.The more general nature of the contractlanguage in a new work system means thatthe contract is “written” as practicesdevelop, decisions are made and problemsare solved.

Pay, vacations, and benefit grievancesare spelled out in detail, not in general.

What does all this mean for the unionas an institution?

A union should be skilled, competent.proactive, an equal partner in decision-making and problem-solving.

In NWS, many unions struggle withtheir roles, trying to marshal adequateresources in the form of money and staffor leadership.

The good part is that all this makesfor a stronger union--the expertise gainedis transferable, for example, to betterstewards’ training and bargainingschools.

NWS may alter the relationship of theunion to its members. It may provide newopportunities to demonstrate the value and

A union should beskilled, competent,

proactive,an equal partner

in decision-makingand problem-solving

importance of union to the membershipthrough means such as role modeling newskills and behaviors. The union will domore than catch flack all the time throughits stewards. Unions can work withmembers at times when they are not angry,scared, or disappointed.

The union also serves as theconscience of organization. The reliance ofa new work system on a strong overt valuesystem leaves plenty of opportunity forlapses, inadvertent or not. In the absenceof a traditional contract, the union is theconscience that helps point out and protectemployees in these situations. It alsoprotects against burnout and abusestemming from high level of commitmentto the job.

Finally, the union acts as a defender ofminorities and a balance to the majority.Jointness often leads to a belief in“sameness”: we are all alike here. The factis that power is still unevenly distributedand those without it (a definition ofminority) still need an institutionalbackstop.

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23

UNION INVOLVEMENT IN NEW WORK SYSTEMS:WHAT YOUR MANAGERS SHOULD KNOW

Managers in unionized companies considering or that have already started efforts toconvert their traditional organization into a high performance, high involvement worksystem should understand that the AFGM believes that a union’s role in such an effortmust be either that of a full partner or a committed opponent.

Any position in between theseextremes will, in the long run, harm theunion. It does not matter whether thetransition is a success or a failure frommanagement’s point of view. Neutrality, orlukewarm or selective support will win theunion no credit for success (and a growingperception of irrelevance) and if the effortfails, the union will no doubt receive atleast some blame.

At the same time, a company thatproceeds in the face of a passive orgrudging union is operating without all

Managers should notassume that the

union is lesswilling to change

than top management

of its available resources, and in fact, maybe forced to spend much time dealing withconcerns raised by the union.

Thus, managers have a vested interestin getting the union involved. Yetmanagers must understand the costs andbenefits of full union participation:

• What are the rewards of working withthe union?

Greater opportunity for successthrough the increased energy,commitment and ideas that unioninvolvement brings.

• What are the difficulties?

Taking the time to discover mutualneeds and interests and work throughpotential conflict.

Unions, like management, generallyhave a well-defined role to play intraditional organizations with representedemployees. While due processrepresentation such as grievances andarbitration and bargaining are the two mainservices of the union, they are not usuallythe only ones. Companies should alsoremember the other services that the unionprovides its members when assessing theunion’s organizational capabilities.

But management must not lose sight ofthe obvious: unions generally have lessresources of all kinds than their employersand unions are democratic organizationsthat must respond to the will of themembership. A union may wind upinvesting a higher percentage of itsresources into an effort than the company.

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Managers should not assume that theunion is less willing to change than topmanagement. Several locals of theAmerican Federation of Grain Millershave asked their employers to begin orspeed up the implementation of newwork systems in plants that had institutedtotal quality efforts or pilot highperformance systems.

It is necessary to remind even themost enlightened managers that jointefforts should begin as soon as possible,even to the point of learning togetherabout the transition to a new worksystem. This joint study process isimportant so that a joint decision can bemade to go forward or maintain theexisting system and relationship.

If there is agreement on the need forchange, there should be an effort toexamine current values and explicitlyadopt a set of new values that will guidethe transformed organization and itslabor-management relationship.

Management should welcome unionrepresentation on every structure that is apart of the transition process. This meansinformal design groups as well as highvisibility steering committees.

The company as well as the unionshould be interested in maintaining theunion’s visibility and independence.Thus, key positions such as trainers and

facilitators should be filled with both aunion and management representative.Where the union lacks skills inorganization development or training

Management shouldwelcome union

representation onevery structure that

is a part of thetransition process.

design, the company can take on amentoring role. The union should receiverecognition for its particular strengthsand competencies, for example, itsability to take the “pulse” of theemployees.

If your union is successful inmarshalling resources and uses themwisely, many managers will have to takeon a new mindset, one that is clear aboutthe union’s contribution to a successful,productive and humane work system,and is pleased with the competence andstrength of the union.

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APPROACHING MANAGEMENT ABOUTNEW WORK SYSTEMS

Thousands of North American companies, some represented by the AFGM, are trying toready themselves for the future. They are thinking about, or meeting, increasedcompetition by improving quality, service, and productivity. Their efforts may be large-scale and decisive. Or they may be small and tentative. But in either case, AFGMmembers are affected and the union needs to act, especially since most companies do notappreciate or understand the need for union involvement.

If you, as a union leader, and yourmembers are not satisfied with yourcompany’s efforts in a quality program,productivity push, or problem-solvingprocess, you can safely assume that thecompany’s methods do not truly reflectthe basic values of “total” quality andemployee ‘‘involvement.

A company that disregards unionconcerns, issues and ideas, whetherintentionally, through oversight, orignorance of the importance of unioninvolvement, is likely to fail to reach thegoals it says it wants. But it is likely tosucceed in harming the respect membershave for their union and undermining theprotections of the contract.

The AFGM believes that local unionsshould respond to these types of half-bakedefforts by offering an alternative process.An offer to move to the next generation ofworkplace innovation by implementing a“new work system” may well shockmanagement. But you can argue that theunion’s proposal (see page 28) is morelikely to result in long-term companysuccess because it is based on trueemployee empowerment and a reallabor/management partnership.

The company may not like yourpremise: What you have done so far is

bound to fail. Let us start over and do itright. But they cannot argue that the unionis short-sighted or an obstacle they cannot

A company thatdisregards union

concerns, issues andideas, whether

intentionally, throughoversight, or ignorance

of the importance ofunion involvement,

is likely to fail toreach the goalsit says it wants.

say that you do not understand what ittakes to succeed in the marketplace or tohelp change a large organization.

In fact, the union can be the catalystfor success at:• producing a quality product or service

at a fair price,

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• preparing your company for the 21stcentury,

• preserving jobs and making themmore interesting and rewarding,

• protecting current wage rates an(lincreasing future levels of pay, and

• providing opportunities for personaland career development.

Management needs to listen, toappreciate your seriousness, and tounderstand your knowledge of people,the economy and work.

You can get their attention by:

1. demonstrating that your unionknows as much, if not more, than thecompany about competition and how torespond to it.

2. providing a solid analysis of thestrengths and weaknesses of the company’s

efforts (or showing why the company needsto begin an effort).

3. explaining how a partnership withthe union will enhance the chances forsuccess.

4. convincing them that unionopposition is certain to lead to failure.

5. offering a letter of agreement(see page 28 for a sample) and anaction plan (see page 27) that will lead toa new work system operated by a truelabor/management partnership.

At the same time you are telling allthis to senior management, you shouldbe giving the same information to themembership, building support for apartnership, or to fight any process thatexcludes the union.

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ACTION PLAN FOR IMPLEMENTINGA NEW WORK SYSTEM

The Action Plan for new work systems will vary for each company and union, but almost everyplan should include these steps:

1. Leadership Education.A systematic course of study for the key leaders of the Union and the Company including an

examination of the restructuring of the world economic order, the current transformation of the industry,the status and role of unionized labor, and new systems of work.

2. Employee Communication.Meetings with group of employees (covering the entire organization) intended to build an

understanding of the nature of competition and options for meeting that competition.

3. Management and Union Steward Skills Training.First-line manager and union steward training about new work systems. The training would

introduce them to new work systems, analyze the role of management and the union in these systems,and address their concerns and anxieties about converting to a high involvement system.

4. New Work System Design and Implementation.A joint design process leading to a restructuring of the existing company organization and labor

agreement. The new work system should be based on tabor-management cooperation with responsibilityand decision-making pushed down to the individuals and groups that perform the work. It may alsoinclude elements such as a team-based work structure, a multi-skilled work force, and compensation thatrecognizes knowledge and performance.

5. Employee Training.Such training should center on: (1) job and technical skills development; (2) skills training such

as decision-making, problem-solving, management and budgeting; (3) new work system orientation; and(4) work relationships such as trust, perceptions, communications, group process, conflict resolution andlabor-management relations.

6. Standardization of All Processes.The standardization of work and business processes and the use of statistical process controls are

widely recognized as critical elements in producing consistent high quality products and services.Execution requires a well-trained workforce, employee acceptance, and a serious commitment of time andresources to realize the substantial financial benefits that are possible. Employees should he trained toanalyze their operations and develop standardized processes that reflect their job knowledge andexperience about the best, safest and fairest ways to perform work. They should fully participate withmanagement in implementing any proposal.

7. Redesign of Management Systems.Management systems such as evaluation and promotion practices, scheduling systems,

compensation systems, information systems, and maintenance parts purchasing must be examined todetermine if they should he redesigned to fit with a new system of operating so that they are compatiblewith and helpful to a new work system.

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SAMPLE LETTER OF AGREEMENTON NEW WORK SYSTEMS

Dear

This letter will serve as an agreement in principle between Local ____ of the American Federation ofGrain Millers and ____________ on the objectives, rationale and character of effort for a process ofworkplace innovation to be known as the “new work system” (NWS).

The Union and the Company believe that short-term and long-term competitive challenges cannot besolved through technology only. Organizational an(l people improvements are equally, if not more,important. They, too, should be treated as a long-term investment or capital expense, one that increasesskills, understanding, opportunities and rewards for employees while improving the Company’seffectiveness and chances for success.

Both parties acknowledge that the transformation of the present organization to a new work systemrequires new skills, roles, responsibilities, relationships, rules and systems. Both agree to make a goodfaith effort to reach our mutually agreed upon goals while recognizing the complexities of such a majorchange effort.

Therefore, the Union and the Company agree to undertake a course of action that incorporates:

1. Leadership Education,

2. Employee Communication,

3. Management and Union Steward Skills Training,

4. New Work System Design and Implementation,

5. Employee Training,

6. Standardization of All Processes, and

7. Redesign of Management Systems.

So that these steps may be accomplished, the Union and the Company agree to create a full structuralpartnership with equal or equivalent representation for:

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a. Executive-level Steering Committees,b. Plant or Department-level Steering Committees,c. Design Teams,d. Facilitators,e. Trainers,f. Team leaders,g. Selection of consultants,h. Authorship of notices and publications,i. Design and delivery of training, andj. Any other group, team or individual roles or responsibilities deemed necessary for the success of

a new work system

The Union will be allowed to select its own representatives to serve in these capacities or conduct thenecessary work to carry out these functions.

The Union and the Company will jointly monitor and evaluate the process to assure that the values,purposes and goals of the new work system are nurtured and maintained.

As a result of this partnership and implementation of a new work system, no employee will lose hisor her employment or be laid off, or have a reduction in compensation. The Master Agreement willcontrol layoffs, employment security and compensation when economic, market place or technologicalchanges occur.

Both parties recognize that the emphasis on organizational effectiveness, especially employeeinvolvement in quality assurance and dedication to internal and external customer service, inherent in theconcept of a new work system, contains the potential for high levels of employee stress. Therefore, bothparties will strive to design and implement a new work system that is adequately staffed so thatemployees may meet legitimate obligations to their families and communities.

Nothing in this agreement shall prevent the Union from carrying out its traditional and contractualobligations to represent its members in matters of collective bargaining and on-the-job discipline.

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31

FIGHTING UNION-BUSTING“QUALITY” OR “INVOLVEMENT” EFFORTS

What if your company rejects the union’s request to be a full partner in a new worksystem? What if it willfully and repeatedly violates agreements and understandings about a jointprocess? The result, even if the company denies it, will be the undermining of membershipsupport for the union. This situation calls for a union strategy intended to convince the companythat a labor/management partnership is a prerequisite for a true quality or involvement processand is crucial for long-term success.

Union leaders should:

1. Prepare and distribute a Statementof Union Objectives and Direction, i.e.,what the union is trying to accomplishwith its strategy.

2. Hold membership meetings toeducate the members about right andwrong approaches to quality andemployee involvement. Circulate articlesand analyze good and bad examples,including your company’s efforts.

3. Train key union people in skills toeffectively:• monitor team meetings and other

“quality” activities, and• document examples of the misuse of

quality and violations of labor law.

4. Gather high quality, legally sounddocumentation to demonstrate:• abuse of “Total Quality” or

“involvement” efforts (by managersplaying favorites or rigging teamrecommendations to win support orfunding for projects they favor),

• hypocrisy of management regardingtraditional and new values,

• inconsistency of management actions,• violation of the collective bargaining

agreement, and• unilateral changing in the terms of

conditions of work (mandatorysubjects of bargaining).

5. File grievances and unfair laborpractices based on the documentation.

6. Generate publicity for the union’spositions and actions (for example, acounter-total quality newsletter).

7. Conduct ongoing training forunion members on alternative ways ofoperating.

8. Designate a credible union officialto oversee the campaign.

IF ADDITIONAL ASSISTANCEIS NECESSARY, CONSULT YOURINTERNATIONAL UNION. THEREMAY BE ADDITIONAL PRESSUREOR LEGAL ACTIONS THAT CANCONVINCE THE COMPANY ORSHORTCIRCUIT THE EFFORT.

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33

UNION OPPONENTS OFLABOR-MANAGEMENT COOPERATION:

THE GRAIN MILLERS’ REPLY

A small, but vocal minority of union leaders and activists strenuously oppose inprinciple the idea of “jointness” between labor and management and ask union membersto fight its manifestations such as quality circles, team-based work design and new worksystems. Others agree that the idea is a admirable ideal, but say that it is invariablyexploited or misused by management.

It is hard to argue with people who feelthat unions and companies must beadversaries in all situations. They seem tobelieve in class distinctions between laborand management that most Americansinstinctively reject. Their conviction isstrong, but so is that of the AFGM: in the1990’s union leaders must be good atbeing adversarial, good at cooperation, and

smart enough to know when unionmembers benefit most from one or theother.AFGM leaders should be prepared toanswer critics of labor-managementcooperation while acknowledging thatsome of their criticism is justified, toooften because union leaders do not do agood job of preventing employer abuses.

Here is what some opponents have to say:

Competition is not a concern of unions

The first priority for the labor movement today is to end its confusion about goalsand coin/flit itself to this basic proposition: The job of unions is to defend andimprove the conditions of workers even if it costs management in ore money, even if itreduces productivity, and even if in the short run it hurts ‘competitive position’. . . .The labor movement needs to champion the idea that workers have created plenty ofresources--we live in an economy of abundance, not scarcity--and that thoseresources can be used to improve their working conditions and lives.. .If the labormovement only echoes the corporate line about “competitiveness," what good is it?

– Mike Parker and Jane Slaughter, labor activists and authors

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AFGM believes that is possible todefend all the legitimate rights and needsof workers and still help improvecompetitiveness. A “high skills, highwage” strategy employed through thevalues and structure of a new work systemin which the union is a true partner makesit possible.

Furthermore, most union members wanttheir companies to succeed and wantsatisfaction from their work, theopportunity to grow and learn, and thedignity and respect due to them because oftheir knowledge and experience. Theseideas do not contradict each other. In fact,they complement each other.

Cooperation is nothing new and has never worked

Our view is that this “new” era of cooperation is, in fact, not new at all. Rather,it is a false hope that has been seized from time to time in the past but has neverpanned out. It has not worked in this country, largely because it is not part of theAmerican industrial experience. It does not represent what workers want and need oreven what managers should expect in the way of responsible unionism.

– Lance Compa and Barbara Reisman, former staff members of the United Electrical,Radio and Machine Workers of America

For better or worse, the “Americanindustrial experience’ has been globalized(see Section 2, “The World In Which WeWork”). The past is no longer a predictionfor the future, or even the present.Cooperation is not bound to fail, although

failure is possible if unions are not able toplay their proper role. Responsibleunionism now calls for the ability to be agood partner when mutual or non-competing interests are at stake and a goodadversary when appropriate.

Cooperation is just another form of concessions

What passes today for workplace democracy today boils down in practice toemployee buyouts of aging, non-competitive firms on the periphery of the economy,quality circles and quality-of- work- life charades; labor-management productivitycommittees, profit-sharing and stock-ownership plans, symbolic seats on boards ofdirectors, a look at the company’s books with a right to ‘review’ and ‘advise’ and likemeasures to promote the appearance of enlightened managers and empoweredworkers. All the while, real control stays firmly in management hands.

35

The big corporations are tightening their grip on the economy and proceedingapace with job-slashing, mergers, robotization, runaway shops, strikebreaking, wage-cutting and other steps to destroy the bargaining power of organized labor.”

– Lance Compa and Paul J. Biacich, former staff member of the United Electrical,Radio and Machine Workers of America and an IAM shop steward

Unions can fight concessions by offeringto help companies create a new systemof work based on a competitive strategythat makes human resources thecenterpiece of the company. Economicgains can be protected when a company

improves its effectiveness. While theunion may give up some of its traditionalpowers, such as tightly constructed workrules, it will win for workers a differenttype of power based on individual andgroup autonomy over work.

Cooperation and teamwork turn worker against worker

. . . The team concept is more than a mere gimmick; it is an attempt bymanagement to control not only the worker’s behavior on the job, but also theworker’s feelings and thoughts. The employer plays upon the worker’s desire to usehis or her creativity and intellect. The team concept promises the worker that lie orshe will be something more than a mere factory hand, calls upon him to think andasks him to cooperate with management.

But cooperation with management ever so subtly turns into competition with one’sfellow workers. In the struggle for productivity and even quality, department is pittedagainst department, and worker is pitted against worker. What began by appealing tothe worker’s idealism turns some workers into informers and weakens unionsolidarity. Often when workers are reluctant to approve the team approach, they arethreatened by management with plant closings.

– Victor Reuther, founder and former official of the United Auto Workers

Unions can end competition betweendepartments and plants by helping toconvert all unionized facilities to new worksystems. When the employer andemployees know that the entire plant willbe converted, there’s no reason fordepartments to compete.

It is true, however, that companies will

continue to point to non-union plants ascompetitors. The union’s response shouldbe that an organized plant has advantagesover its unorganized competitors. A unioncan:

1. offer institutionalized, constructivecriticism that improves the process by

36

helping it to respond to the legitimateconcerns of the workers (who might nototherwise speak up),

2. provide an independent andtrustworthy system of due process forhandling problems through the grievanceprocedure, and

3. serve as a forum to balance theshort-term interests of the worker with thelong-term interests of the company.

As for competition between individualworkers, the union can educate thecompany and its membership on the typeof behavior that benefits the company, theunion and employees.

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RESOURCE BIBLIOGRAPHY

On the Changing Economy:

Books:

Johnston, William B. and Packer, Arnold E. Workforce 2000, Work and Workers forthe Twenty-first Century. Hudson Institute, Indianapolis, 1987.

Marshall, Ray. Unheard Voices, Labor and Economic Policy in a Competitive World.Basic Books, Inc., Publishers, New York, 1987.

Articles and Pamphlets:

Mandel, Michael. “1991 Won’t Be a Pretty Year”, Business Week, January 14, 1991,61-65.

Pennar, Karen. “The Global Economy, Can You Compete?”, Business Week.December 17, 1990, 61-63.

Port, Otis. “The Global Race”, Business Week. June 15, 1990, 33-39.

Therrier, Lois. “Food Makers Will Taste Humble Pie”, Business Week.January 8, 1990, 80.

On New Work Systems:

Books:

Hauck, Warren C., Ph.D. Achieving High Commitment Work Systems, APractitioner’s Guide to Sociotechnical System Implementation. Industrial Engineeringand Management Press, 1990.

Lawler, Edward E.. III. High-Involvement Management. Jossey-Bass Publisher,San Francisco, 1986.

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Articles and Pamphlets:

U. S. Dept. of Labor, Bureau of Labor-Management Relations and CooperativePrograms. Organized Labor and New Systems of Work, State of the ArtSymposium: 1989. BLMR 1989.

Burton, Cynthia and Cohen-Rosenthal, Edward. “Collective Bargaining for theFuture”, The Futurist. March-April 1987, 34-37.

On the Changing Role of Unions:

Books:

Cohen-Rosenthal. Edward and Burton, Cynthia E. Mutual Gains, A Guide to Union -Management Cooperation. Praeger, New York, 1987.

Heckscher, Charles C. The New Unionism, Employee Involvement in the ChangingCorporation. Basic Books, Inc., New York, New York, 1988.

Simmons, John and Mares, William. Working Together. Alfred A. Knopf, New York,1983.

Articles and Pamphlets:

Tollison, Peggy and Burghard, Paul, et al. “Union Leadership: Skills for the 1990’s”,Journal/or Quality and Participation. December 1989, 48-51.

U. S. Dept. of Labor, Bureau of Labor-Management Relations and CooperativePrograms. The Changing Role of Union Leaders. Prepared by Joel Cutcher-Gershenfeld, Robert B. McKersie and Kirsten R. Weaver. BLMR 127, 1988.

U.S. Dept. of Labor, Bureau of Labor-Management Relations and CooperativePrograms. Labor-Management Cooperation.’ 1989 State-of-the-Art Symposium.BLMR 124, 1989.

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By Critics of Labor/Management Cooperationand New Work Systems:

Books:

Labor Research Review. Participating in Management, Union Organizing on a NewTerrain. Midwest Center for Labor Research, Fall, 1989.

Parker, Mike. Inside the Circle, A Union Guide to QWL. South End Press, Boston,1985.

Parker, Mike and Slaughter, Jane. Choosing Sides, Unions and the Team Concept.South End Press, Boston, 1988.

Articles and Pamphlets:

Compa, Lance and Reisman, Barbara. “The Case for Adversarial Unions”, HarvardBusiness Review. May-June 1 9&5.