The Effects of Globalization on Labor Relations in the Auto Industry in the 80s and 90s
The Effects of Globalization on Labor Relations in the Auto Industry in the 80s and 90s
Over the last several decades Labor relations within the United Auto Workers (UAW) and the automakers they are attached to have been a roller coaster ride. In the 1960’s and 1970’s the Union made substantial gains for its members in all aspects of bargaining. Wages were increased at levels unheard of today and they made huge improvements on health care and other fringe benefits. Membership was steadily increasing and the union’s power was profound. The Nations economy was growing as fast as the baby boomers who were driving it and globalization was a term seldom heard of. Strikes were a lethal weapon in the union’s arsenal and they would use them at will when dealing with uncooperative employers. The mere thought of cooperating with management was a cardinal sin and the two sides battled constantly to see who could “one up” the other. In the early eighties the economy and the rise of foreign competition reluctantly forced the automakers and the unions to form an averse partnership. Up to this point the Big Three (GM, Ford, and Chrysler) were manufacturing vehicles primarily in the United States and the UAW was at the peak of its power. The UAW was able to keep the companies in check because almost all of the automakers’ employees were union members. Today U. S. trade policies and the global economy give big corporations an unfair advantage over the unions. The UAW’s failure to keep up with the Big Three in the global market is rapidly diminishing the balance of power that once existed between the two collaborating adversaries and their ability to play catch up will be vital to the organizations survival.
In order to understand the effects the global market had on the balance of power between the union and the companies in the last decade, one must look back even further, at the prior two decades. The eighties began with a recession that crippled the economy and
Over the last several decades Labor relations within the United Auto Workers (UAW) and the automakers they are attached to have been a roller coaster ride. In the 1960’s and 1970’s the Union made substantial gains for its members in all aspects of bargaining. Wages were increased at levels unheard of today and they made huge improvements on health care and other fringe benefits. Membership was steadily increasing and the union’s power was profound. The Nations economy was growing as fast as the baby boomers who were driving it and globalization was a term seldom heard of. Strikes were a lethal weapon in the union’s arsenal and they would use them at will when dealing with uncooperative employers. The mere thought of cooperating with management was a cardinal sin and the two sides battled constantly to see who could “one up” the other. In the early eighties the economy and the rise of foreign competition reluctantly forced the automakers and the unions to form an averse partnership. Up to this point the Big Three (GM, Ford, and Chrysler) were manufacturing vehicles primarily in the United States and the UAW was at the peak of its power. The UAW was able to keep the companies in check because almost all of the automakers’ employees were union members. Today U. S. trade policies and the global economy give big corporations an unfair advantage over the unions. The UAW’s failure to keep up with the Big Three in the global market is rapidly diminishing the balance of power that once existed between the two collaborating adversaries and their ability to play catch up will be vital to the organizations survival.
In order to understand the effects the global market had on the balance of power between the union and the companies in the last decade, one must look back even further, at the prior two decades. The eighties began with a recession that crippled the economy and
Cited: Fossum, John A. Labor Relations: Development, Structure, Process. 9th ed. New York: McGraw-Hill Irwin, 2006 Glen, David. “After Flint.” The Nation 24 Aug. 1998: Vol. 267 Iss. 6 17-20. 25 Apr. Lou. Telephone interview. 16 Apr. 2008 Vlasic, Bill 25 Apr. 2008: <A href="http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=19051017&site=ehost-live"> Trench Warfare in Detroit.</A>