April 20, 2013
Upper Iowa University
Case questions for the Southern Discomfort
1. Should the company go ahead with the move to Mexico or try one more time to work things out in the Oconomo facility? Support your position.
Because of the long history / relationship with the local community in Oconomo the company has the responsibility of attempting one last time to work things out with the local union. If, after the last attempt it does not come to an agreement then the company would have done everything in its power to make things right. It is important to note that during this last discussion with the union that the company lays out the consequences for not coming to an agreement. The union needs to have a full understanding of the impact of their decisions.
2. Why do you think the union resists changes so strongly?
Over many years of negotiations Unions are able to secure better wages and benefits for their members. From the Union’s point of view giving back anything that they currently have discredits the years of hard work through past negotiations.
3. How can the company overcome this resistance? Or can it? Hint: Research similar situations that have occured in industry. Don't forget to include documentation for any research you do.
Open book management is an approach that I feel is highly effective. The company needs to open its books to the Union to show the Union its options, and its current operating expenses. Taking this approach and making a collaborative effort for a solution to keep jobs in Oconomo will likely prove successful.
Please join StudyMode to read the full document