Unionization of Ford Motor Company
Human Capital Management 531
February 27,2012 professor: Ricky Owen

Unionization of Ford Motor Company

Ford Motor Company Background
At the beginning of the century, cars were merely toys that only the rich could afford and were very complicated to drive. Henry Ford did not invent the automobile, he created a car that every typical, average American would be able to afford. Henry Ford was able to produce affordable cars because he introduced the idea of the assembly line to manufacturing the cars. The efficiency in which the cars were manufactured allowed Henry Ford to decrease the cost of the Model "T" from $825 to $575 within four years of the cars debut. As a result, Ford's share of the market was 48%. Cars were assembled by skilled men who performed the same task over and over again from piles of parts. The assembly line was so efficient that the time to create a car reduced from twelve and a half hours to six hours. Legal issues and obstacles that Ford could encounter:
Ford Motor Company is an extremely large corporation that must keep, UAW (United Auto Workers), a very large union content. With the collapse of the economy in 2008, many workers and unions have had to compromise with larger companies in order to keep these companies from moving their production outside of the United States. Ford has agreed to "in-source" jobs from Mexico, China, and Japan and will create 12,000 hourly jobs in the United States by 2015. The proposed contract calls for major givebacks on the income and benefits won by workers over decades of struggle. The UAW proposal would eliminate cost-of-living adjustments, cutting overtime pay after eight hours, end two paid holidays, and reduce break time" (Porter, 2009). If the economy has another downturn and Ford is forced to reduce the workforce, Ford can find themselves fighting legal battles because they will be in breach of contract. Possible Laws That Could Be Broken Because of Legal Issues:
If Ford were forced to furlough many of the employees, and jobs after bargaining with UAW they could face many legal issues with the union because this would be considered a breach of contract. Even though emotions may run high during unionization campaigns, management is prohibited by law from threatening or interfering with union organizers or drives. These threats include being disciplined, or discharged, or promising to withhold future benefits if the union succeeds.
Unions must also abide by rules as well when recruiting people. Unions must not threatened or coerce employees if they do not want to join the union. "The union can picket the employer only if (1) the employer is not currently unionized, (2) the petition for election has been filed with the NLRB in the past 30 days, and (3) a representation election has not been held during the previous year" (Cascio, 2010).
If Ford could negotiate layoffs with the union, Ford may still face class action lawsuits if they cannot show just cause and prove that discrimination did not take place during the layoffs. If more of one group of workers; (ie. women or African Americans) are laid off Ford also can be accused of favoritism and again be faced with discrimination law suits. Recommendations to Minimize Litigations:
To avoid any litigation, Ford must have guidelines for the negotiations with the UAW in place in case the future goals and objectives cannot be met because of shaky economic grounds. These litigations should include the policies and procedures and define which group or groups would be affected if jobs needed to be furloughed. Human resources would also be an important part of this process because personnel files would need to be accurate and up-to-date to include reviews and disciplinary actions so that discriminations allegations could be defended. Benefits of Joining a Union:
Ford benefits from negotiating with UAW because they only have to deal with one entity instead of individual people. The company and union can avoid work strikes by compromising and coming to an agreement that is agreeable to all parties. UAW and Ford want to avoid work strikes at all costs because it can be devastating to the individual employees and company as a whole. If employees feel like they are treated fairly, they will be more happy at their positions and productivity will increase. Unionization Process Within Ford:
In the United States, unions were formed to protect workers from abusive management regarding unsafe working conditions, and low wages. Ford was no different from any other company when it came to unionization. Unions used work strikes as a way to get management to comply with the demands of the workers. Ford Motor Company was extremely anti-union and used internal security forces to prevent employees from organizing. Many of the strikes in 1936 and 1937 were violent and Ford Motor Company finally recognized the union in 1937. The UAW gained collective bargaining rights in 1941 (Healey, 2011).
Today, unions are formed under the National Labor Relations Act (NLRA). The first step in the unionization process is a petition or signature cards signed by employees stating the intent to unionize. Employers will often decline to recognize a union, even if presented with enough evidence that a majority of people want to represented by a union. This allows the union to demonstrate its right to election under NLRA's secret ballot process. The NLRA will certify the union if the is a majority vote is in favor of "yes" An election can be bypassed if more than 50% of the employees sign the petition. Union Bargaining
After a turbulent beginning, Ford and UAW frequently work together to compromise on issues such as wages, working hours, health and safety conditions, training, and overtime. The results of these negotiations are called collective bargaining agreements. The contracts are put in place for certain period of time and both parties agree to the terms. A new contract must be negotiated when a contract expires or Ford risks having employees strike. Effects of Union Bargaining
The effects of union bargaining ensures that all employees are being treated fairly and equally. In organizations that are not unionized, employers set wages and employees do not have a say in the matter. The UAW serves as a mediator between employees and management to ensure that discrimination is not occurring at the company. Summary
Unions have been making a difference for everyone ever since they came into existence. Unions have helped build the middle-class by fighting to make a difference to ensure that members have higher principles and standards for workers, businesses, families, the environment, and public safety and health.

References
EyeWitness to History. (2005). Henry Ford Changes the World, 1908. Retrieved from http://www.eyewitnesstohistory.com/ford.htm
Healey, T. (3/2/2011). A Guide To How Unions Work In The Automotive Industry. Retrieved from http://automotive.about.com/od/Unions/a/A-Guide-To-How-Unions-Work-In-The-Automotive-Industry.htm
Porter, L. (3/6/2009). Worker opposition to Ford- UAW agreement refelcted in votes. Retrieved from http://www.wsws.org/articles/2009/mar2009/ford-m06.shtml