Labor Union Diversification Report

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Union diversification can make labor unions stronger. Labor unions in the auto industry have made improvements throughout the years. The biggest auto manufacturers in the United States are located in Michigan. They are Chrysler, General Motors and Ford. (I only know that because I am from Detroit and my father retired from GM.) According to Vedder & Gallaway (2002), “unionized workers receive higher rates of compensation. There is a belief that positive effects of unionization on employee morale can raise productivity as well as possibly economic growth” (p. 105). My work experience during college (my undergraduate degree) included working at a local grocery store part time where we had a labor union. This has been my only personal direct …show more content…
While employers attempt to treat employees fairly, often their efforts to figure out employee attitudes are insufficient and as a result employers are not aware of employee dissatisfaction until they are caught off guard by a union election petition or a discrimination lawsuit” (p. 13). Through personal experience it seems that companies who have grievance procedures are aimed to benefit the employer and not the employee. It seemed that filing a grievance and stating issues made things worse instead of helping the situations that were addressed in the grievance. As a result it caused me to seek employment elsewhere and this company continues to have a high turnover rate. If the employer actually had a grievance procedure in place and took employee grievances seriously and participated in mediation and retained employees and fixed issues that were reoccurring then it could lead to a decrease in turnover rates, an increase in employee morale and therefore an increase in productivity. An increase in productivity is going to lead to higher profitability for the organization. It seems like employers would benefit by taking grievances seriously and treating all of their employees with respect and …show more content…
During these negotiations two provisions were made that helped build relationships between hourly employees, automakers and the labor union. The first was through creating VEBA (voluntary employee benefit association) to administer retiree’s health insurance. The second one established a two-tier wage system where new employees earn half as much as current employees. (p. 62). In regards to the UAW representing employees outside of the auto industry, that is what they do and it makes them a more diversified organization. While they are referred to as United Automobile Workers their full name is actually The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. They are located in Detroit, Michigan close to where the big three auto manufacturers are also located. Besides the auto industry some of the other industries that the UAW represents include health care organizations, casinos and gambling, and higher education (UAW Constitution,

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