Papers: Collective Bargaining and Ford Motor Company

Submitted By crispy123
Words: 1410
Pages: 6

Labor Laws and Unions The goal of unions is to improve economic and other conditions of employment, at a general level (Cascio, 2010). The union works to secure relationships between organizations and the people who work for them. Unionization plays a critical role in protecting the rights of the employees within the workplace. In today’s economy, very few industries have union such as manufacturing, education, and health care. Ford Motor Company, an automobile industry has a large union mainly because of the size of the company. This paper will give a brief background on Ford Motor Company. In addition, this paper will state Ford’s legal issues violation and possible recommendations of minimize litigation. It will also state Ford’s benefit of joining a union and the process the organization took toward unionization, and the method the union uses to bargain. It will also show the effects union bargaining has on Ford Motor Company. Background information on Ford Motor Company Established in 1903 in Dearborn, Michigan, by Henry Ford, Ford’s Motor Company (Ford) is known as the first company to implement Henry Ford’s world changing concept and development of mass production through the use of the assembly line (Ford Motor Company, 2012). Known for the high wages paid to its workers and the shortened workday, Henry Ford believe unionization of Ford employees was unnecessary and fought it at every step (History, 2012). Ford Motor Company has about 78 plants worldwide; Ford employs more than 200,000 people, including 17,000 employees and 40,000 United Auto Workers (UAW) in the United States. As a condition of the union, Ford created a contract in which they will hire 12,000 employees with the United States, and invest $6.2 billion in its operating plants. Despite Ford’s personal feelings toward unions and Ford’s abnormally high wages and willingness to pay back wages for several thousand wrongfully discharged employees. “Ford unionized its workers on June 20, 1941 by signing its first contract with the United Automobile Workers of America and Congress of Industrial Organizations” (History, 2012, p. 1). Also despite its union workforce and the associated legal restrictions Ford faced during the recent economic downturn, Ford’s creativity and innovation helped it avoid a complete financial collapse leading to increased sales and a healthy organizational recovery.
Benefits of Joining a Union and the Unionization Process

The benefit of Ford Motor Company joining a union is the union helps an organization guarantee its employees compensation and benefits. Union’s ensure that wage and benefit levels are achievable according to the agreement both Ford and UAW made. In addition, Unions enforces guidelines for organizations to take responsibility for and to comply with the employee’s rights. Furthermore, employer’s ultimate goal is to ensure fair treatment for employees, and in turn the employee will increase the organizations production level.

The benefits Ford employees have enjoyed from unionizing in 1941 include higher wages, better health, fringe benefits, and greater access to generous pension plants. These employee benefits have led in part to Ford’s decreased employee turnover rates, a higher level of employee dedication and loyalty, and increased product innovation.

Most companies often fight unions before realizing the benefits unions offer, Ford Motor Company was a victim to this issue. As a result of fighting unionization, the UAW had to form rallies and strikes from successful automobile companies, such as General Motors and Chrysler to prove its potential. The UAW was identifiable as a leader in pursuing employment laws in the early 1900s. Like any other company, Ford tried to fight the unionization process but failed because employees began violent attacks, and caused them to surrender. Moreover, Ford employees forced the company to accept the UAW for its