Individual Assignment Labor Laws and Unions

Background: * Ford Motor Company started a manufacturing revolution in the 20th century. Now, it has grown into one of the most successful and largest automakers in the world. The company was founded in 1903 by Henry Ford in Detroit Michigan and employs over 198,000 people in over 90 plants and facilities worldwide, the company posted a net income of over 6. 5 billion in 2010. What started out as a mass production assembly line has evolved into one of the top brands in Automobile makers. Ford Develops, produces, distributes and services automobiles and parts all over the world.

Ford functions in two divisions, Automotive and Financial services. The automotive side markets cars, trucks and parts through a host of retail dealers; the financial side offers many different financing products to dealerships and customers. The company is worth over Legal issues or obstacles Ford Motor Company could encounter: * Globalization – which is the free movement of capital, goods, and services. Ideas, information, and people across national boundaries. Markets in every country have become fierce battlegrounds where both domestic and foreign competitors fight for market share (managing human resources ch.

1). * Product Differentiation – Consumers have a large quantity of choices when it comes to certain functions and performance attributes purchasing a vehicle. In order to stay competitive auto makers like Ford Motor Company have to offer different products that attract consumers by addressing their wants and needs. * Product Development – Developing a vehicles is very costly, time consuming, and risky. It can cost billions of dollars to design, engineer, and tool a major new model vehicle. * Federal, state, or local laws that could be broken because of these legal issues: * International Labour Laws – Laws

put in place to prevent international competition from taking place to the disadvantage of workers, and would constitute a kind of code of fair competition between employers and between countries. * International Trade Laws – Laws put in place to govern trade between countries by monitoring trade rules and customs. Recommendations to minimize possible litigation: * Inform and Educate – construct training sessions to inform employees on international Laws and Regulations Unions have affected Ford Motor Company and other companies in the automotive industry for many years.

The United Auto Workers has recently reached a four year agreement with Ford Motor Company that will provide profit sharing checks and the investment of billions of dollars into U. S. plants, which ensures jobs for UAW’s members. The company also agreed to provide over 12,000 jobs and preserved health care and pension packages This agreement may not do much for the amount of money the employees make but, it ensures them that the manufacturing plants they work at and depend on will remain open for business for years to come.

With so many employees losing their jobs and benefits due to plant closings or outsourcing jobs out of the U. S. union leadership plays a key role in speaking on the behalf of employees and negotiating better work circumstances for its members. The union gives its members a sense of security in a time when economic conditions provide much uncertainty in the industry which they depend of for survival. Employees have the right to participate in union activities, get organize and bargain collectively with union leaders. This process is done without any interference from management and is outlined in the Taft – Hartley act of 1947.

This act states what management and unions can or cannot do in regards to union and non-union members of the organization. The process generally starts when an employees contact the union representative for assistance or by union representative contacting employees. After the union gains entry it must then gain the signatures of the company’s employees stating that they would like to be represented by the union. The union needs at least 30% of the company’s workforce to sign the petition before it can take the potential bargaining unit before the National Labor Relations Board.

The NLRA governs the relationship between employers and labor unions and guarantees the rights of the employees to operate without prejudice. There are to processes in place for which a union can be certified. The first one is the card check process; it involves the union representatives providing the employers with signed authorization cards from the majority of the employees 50% plus 1. If the employer accepts these cards as proof that its employees want to join a union, the NLRA then certifies the union and elects a representative.

The second process is called secret ballot elections; it requires an election petition to be filled up by all members wanting to have an election. The union must then win the election by a majority vote of the employees. If the union wins it represents all employees in bargaining situations. Unions bargain by negotiation, there are two forms of bargaining used. They are distributive bargaining and integrative bargaining. In distributive bargaining approach it’s a win lose situation, both parties can’t come to an agreement and the court system is sometimes involved.

In the integrative bargaining approach it’s a win situation for both parties, which means if one party reaches its goals it doesn’t necessarily come at the expense of the other party. Both sides are able to achieve their objectives. Bargaining can have vast effects on an organization depending on the outcome. It can lead to strikes, lock-outs or third party involvement, all of which cost the organization money. It is in the best interest of both sides to come to an agreement if it is at all possible to save time and money. References 1. Allen, Booz, and Hamilton. Challenges facing the global automotive industry.

Insights Consumer and engineered products vol I Issue I Retrieved on October 30, 2011 from http://www. boozallen. com/media/file/56733. pdf 2. Associated Press. Ford Workers ratify new contract with UAW (2011) Retrieved on October 30, 2011 from http://www. mlive. com/auto/index. ssf/2011/10/ford_workers_ratify_new_contra. html 3. Cascio, W. (2010). Managing Human Resources:Productivity, Qualitiy of Work Life, Profits(8th ed. ). New York: McGraw – Hill 4. Employment and Labor Law – US. HG. Org. Retrieved on October 30, 2011 from http://www. hg. org/employ. html 5. Ford Motor Company.

Yahoo Finance

Retrieved on October 30,2011 from http://biz. yahoo. com/ic/10/10597. html 6. Ford Motor Company. Yahoo Finance Retrieved on October 30,2011 from http://finance. yahoo. com/q/pr? s=f 7. International Labour Organization. International Labour Law. Retrieved on Oct 30, 2011 from http://actrav. itcilo. org/actrav- english/telearn/global/ilo/law/lablaw. htm#Purpose_of_international_labour_law 8. Labor Union Organizing in the United Sates workplace. Retrieved on October 30, 2011 from http://www. hrhero. com/topics/union. html 9. Our company. Retrieved on October 30, 2011 from http://corporate. ford. com/our-company