Labor riddle (automakers)

Labor riddle (automakers)

Muller J. Forbes (USA), 9 April 2007, Vol. 179 No. 7, Start page: 94, No. of pages: 2

Purpose – To look at why US automakers wish to replicate a new US auto plant’s industrial relations. Design/methodology/approach – Puts forward how automakers are hoping for large concessions from the United Auto Workers in the negotiations around the new contract; looks at how a new engine factory in Michigan, the Global engine Manufacturing Alliance (GEMA) – a joint venture between Chrysler, Hyundrai and Mitsubishi has become the blueprint for what automakers would like to achieve. Describes how the plant stresses flexibility and collaboration; refers to its outsourcing strategy and draws attention to how employees’ wages, terms and conditions and levels of trade union organization have all suffered at GEMA. Highlights how attempts to replicate the GEMA strategy at other places have met with a thumb down from workers and unions at other plants. Originality/value – Investigates how GEMA has managed to undermine workers terms and conditions of employment. ISSN:0015-6914 Reference: 36AN048

Keywords: Automotive industry, Corporate strategy, Trade unions,Industrial relations, Working conditions, USA