Michelin

Michelin’s strategic partnership with indigenous peoples has various social objectives, including promoting employment and Aboriginal community priorities: as such, the initiative is a form of CSR. In reference to Porter’s framework on social issues affecting a company, we believe that Michelin’s initiative targets social issues which impact its value chain – more precisely, its labour suppliers. Michelin Canada is trying to solve an upcoming skilled labour shortage in its Nova Scotia operations: the partnership is aligned with Michelin’s strategic goals.
The key stakeholders with an interest in the partnership are listed below. We observe that the stakeholders, as a group, pursue both individual and social/collective interests: 1) Michelin: interested in securing a sustainable supply of skilled workers to fill as many as 1000 newly-opened jobs in the years to come. 2) The First Nations members in Nova Scotia, as represented by bodies such as the Confederacy and the Union: interested in employment opportunities, greater access to – and acceptance in – the mainstream workforce, and elimination of social stigmas and racism. 3) Governments of Canada (AWPI) and of Nova Scotia (Office of Aboriginal Affairs): general and indirect interest in the wellbeing of its citizens, their obtainment of relevant education, and their positive participation in the social, work and economic life of the province.
As Jim Morrison, we would carry out, or strongly push for, the following actions:
Internal resistance – Morrison needs to prepare the internal workforce for the arrival of Aboriginal team members. Michelin staff – at all levels – need to be sensitized about Aboriginals’ key role in the plants’ continued success. Michelin also has to enforce a zero-tolerance policy regarding workplace discrimination. New recruits could be enrolled into a cross-cultural “buddy system” with another open-minded, experienced worker.
Recruitment & training – Michelin has to change its recruitment philosophy and its WSI test. We look to Southwest Airlines: Hire for attitude, train for skill. Michelin should hire for potential and motivation in applicants, not for particular pre-acquired skills. This would likely imply a greater training budget for newly-hired workers. Michelin also needs to streamline the application process and to use recruitment “ambassadors”. Key ambassadors are, for example, the employment officers in Aboriginal reserves: Michelin needs to maintain close ties with these individuals, and make sure that they have all the tools (information, paperwork, etc.) to perform their role. In addition, Michelin should offer generous incentives for employees who recruit others in the Aboriginal population (akin to a push marketing strategy). Finally, Michelin should partner with a local college to offer a fast-track course designed to provide the very basic requirements for Michelin applications. (We refer, for example, to Microsoft’s initiatives.) Passing this course successfully would guarantee a job offer from Michelin.
Image – Michelin needs to change its image with First Nations. It has to get its employment success stories out the local media and make the company seem more approachable. It could promote a few local plant “heroes” that underemployed Aboriginals would identify with.
Transparency – Michelin needs to assess the trade-offs of corporate secrecy vs. labour needs. We believe that the possible labour crisis justifies leaning towards openness. Everyone knows that Michelin is hiring: how sensitive are its projections – really? Who else is competing for this labour? What is the truly critical corporate information?
Goals – Michelin has to fix tangible hiring targets. Proponents of affirmative action often say that you need a critical mass of designated minorities (e.g. in a university) to stimulate a natural influx of successful applications. This may be true with Michelin’s Aboriginal partnership. Michelin should therefore set specific hiring targets and commit to meeting them, even if this requires some reasonable rule bending. As we understand the dynamics of Michelin’s labour market, no qualified worker is being turned away: no one would be able to suggest that Aboriginals are “stealing jobs”.