Labor Laws and Unions

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Labor Laws and Unions
Ike Turner
HRM/531 Human Capital Management
Ricky Owen

The company that I have chosen for this is assignment is General Motors. General Motors was established in 1908 by William Durant in Flint, Michigan. When the company was first started it consisted of only Buick Motor Company, but within a few years General Motors acquired several other companies including brands like Oldsmobile, Pontiac, Cadillac, and Chevrolet. After World War II, General Motors really established itself as the leading auto manufacturer in the world. General Motors held that title until 2007 when it gave up that title to Toyota. In 2009 General Motors needed to restructure due to bankruptcy concerns. One of the effects that union had on General Motors was to create higher wages and benefits for the members of the union. These higher wages and great benefits for the employees created unsustainable expenses for General Motors and helped contribute to the need for General Motors to restructure. Another effect that the union had on General Motors was a disconnect between the employees and management. It created a divide between management and the employees for many years which helped contribute to the need for General Motors to file for bankruptcy. This was because of the lack of communication between the two groups that is essential for the success of a company. As a result the employees of General Motors being unionized, General Motors doesn’t realize a benefit of the union. The union is created to help the employees bargain for wages and benefits and not that of the managers and company stake holders. With that in mind the union tries to achieve those better wages and benefits for the employees they represent. By obtaining those better wages and benefits for the employees, it causes the management to spend more money on its employees and if they don’t give into the demands of the union, the employees may go on strike. When the employees go on...
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