Assuming that you are representing union members from either a German or Mexican
ID: 295489 • Letter: A
Question
Assuming that you are representing union members from either a German or Mexican company that recently entered into an international joint venture with each other. The new business is to be located in Mexico and the union workers, all line supervisors from both companies will be working together in Mexico.
What are at least 6 major points regarding union representation, bargaining,rights, and worker participation in management should be considered in the labor agreement? Read Chapter 10, particularly the Comparative Management in Focus: Labor relations in Germany and also the Comparative Management in Focus: Motivation in Mexico (found in Chapter 11).
What are some applicable biblical principles in this situation?
Explanation / Answer
6 major points regarding union representation, bargaining,rights, and worker participation in management should be considered in the labor agreement are as follows:-
1. Labour agreement
2. Legal framework
3. Contract and labour law enforcement
4. Right to join
5. Right to strike
6. Protection against victimization.
labor-management relationship in Germany
The largest German trade union, the Industrial Union of Metal Workers (Industriegewerkschaft Metall, or IG Metall), drew inspiration from the United States to resolve the issues of dwindling finances and plummeting membership that the union faced. This approach may seem puzzling, given the recent decline of the U.S. labor movement; however, few other countries in the world have such a storied history of labor organizing. Using the American experience as an example, IG Metall sought to make it worthwhile to recruit new members for the union and simultaneously play a constructive, value-adding role to German firms. Specifically, the union sought to change its incentive structure in order to increase its membership. As a result of its efforts, IG Metall is now the only German union with any reported growth in members actively at work within the last decade. Still, Silvia hesitates to pass judgment. Is IG Metall simply harvesting low-hanging fruit in advance of an encroaching frosty decline in the natural labor milieu? By contrast, his examination of the second-largest trade union in Germany, the United Service Employees Union (Vereinte Dienstleistungsgewerkschaft, or ver. di), illustrates the complexities and challenges of multisectoral union integration. Per Silvia, this behemoth merger of five different public and private sector unions demonstrates what happens to a trade union without any clear, identifiable strategy. Further, the institutional vigor of the industrial relations system in Germany appears unable to aid ver. di and its continued hemorrhaging of members; Silvia’s narrative conveys the idea that, although ver.di may not break up, its future is less than rosy without a viable plan to recruit more members. Most of the other trade union members are split among six smaller trade unions: IG BCE (mining, chemicals, energy), EVG (railroad), GEW (education, science), IG BAU (construction, agriculture, environmental products), NGG (food processing, hotels, restaurants), and GdP (police).
Employer associations and trade unions, although similar, differ in that firms or their components (such as a plant), rather than people, are members of employer associations. Among employer associations, Silvia identifies a divergent and murkier pattern of membership rates. Historically, Gesamtmetall, an employer association in the metal and electrical engineering industries, is the one with the best public member firm data. Its numbers paint a bleak picture of declining membership, with firms leaving the association each year. Yet, an examination of the Federal Employers Association of the Chemical Industry (Bundesarbeitgeberverband Chemie, or BAVC) paints a different picture of stability. Compared with Gesamtmetall, BAVC experienced only minor variations in membership levels. The author speculates that the concentrated nature of the chemical sector is a contributing factor. Either that, or BAVC labor management simply did a better job.
Comparative Management in Focus: Motivation in Mexico
To understand the cultural milieu in Mexico, we can draw on research that concludes that Latin American societies, including Mexico, rank high on power distance (the acknowledgment of hierarchical authority) and on uncertainty avoidance (a preference for security and formality over risk). In addition, they rank low on individualism, preferring collectivism, which values the good of the group, family, or country over individual achievement. In Mexico, the family is of central importance; loyalty and commitment to the family frequently determines employment, promotion, or special treatment for contracts. Unfortunately, it is this admirable cultural norm that often results in motivation and productivity problems on the job by contributing to very high absenteeism and a turnover rate, especially in the maquiladoras. This high turnover and absenteeism are costly to employers, thereby offsetting the advantage of relatively low labor cost per hour. ?Family reasons? (taking care of sick relatives or elderly parents) are the most common reasons given for absenteeism and for failing to return to work.