Case: Locating the New Recreational Vehicle Plant

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WEEK #4 Individual Work Labor Relations and Collective Bargaining MAN4400-12 Instructor Theodore Stacy B. White 11/10/2012 Abstract This paper will discuss, in a planning committee member role with primary responsibilities that involve issues related to potential unionization and labor costs, what advice should be given in terms of company size, location, staffing, wages and benefits, and other employee relations issues that would help GMFC keep the new plant union-free and competitive. Body CASE: Locating the New Recreational Vehicle Plant • What advice would you provide to the company on size, location, staffing, wages and benefits, and other employee relations issues that would help GMFC keep the new plant union-free and competitive? As a member of the planning committee, whose primary area of responsibility involves issues related to potential unionization and labor costs, I would do an environmental scan, as well as some demographical research of some areas. Since union penetration is highest in the Northeast and Midwest and lowest in the South and rural areas, I would recommend the new plant’s location be in a rural area or located somewhere in the South, because: (1) employees in areas where unions have relatively little membership may be less willing to join unions, and (2) plants that are located in areas without unions don’t provide information to employees that would enable them to compare economic benefits provided by union and nonunion organizations, therefore, employees may not be motivated to organize for economic reasons. In regards to plant size, I would advise the company to keep the number of employees at the plant around 500, because plants that are smaller and have fewer than 200 employees can become capitalized by a union rather quickly. GMFC is a very large, nonunion

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