Académique Documents
Professionnel Documents
Culture Documents
Such statement can probably be the best hint, glimpse and gist that we can give in
the case entitled Winning the Battle but Losing the War –and probably, the most
The aforementioned case tells us the considered most important strike in the United
States of America’s labor history. The feisty and outspoken United Auto Workers (UAW)
launched the history’s first sit-down strike against their employer which is General Motors
Such strike was further followed by other series of strikes and in June 1998, such
union, the UAW, had threatened to shut the metal-stamping plant. In June 5, 1998, GM
started to endure one of the costliest strikes in the history – a strike wherein 3,400
members of UAW walked-out from their work and 25,000 workers from the firm’s Flint,
Michigan plants went on a strike.This 44 day strike had a severe impact on GM, having
an estimated lost of $2.2 billion in sales not to mention other losses in terms of market
shares. But what are the causes of such strike? First, workers at Flint have worked at a
manic pace through breaks and meals, so they could get off work a few minutes early
when their production quota was filled and in return, company promised, it would bring
new machinery into the plant, making it as productive as its newest factories in Mexico
and Brazil. But despite its promise, new investment never materialized. Second, massive
lay-off. Yes,massive – a lay-off of 17,300 workers in just one day and further announcing
lay-offs every day, a statistical data which can then, justify the usemassive
of lay-offs.
What is the effect of such strike? Neither parties, the GM and the UAW can be held
victorious, on who really had won. The only clear effect of this is that the relationship
between the UAW and GM had been greatly damaged and it is very much uncertain on
BACKGROUND
employs an approximate number of 327,000 people around the world. In fact, it sells cars
and trucks globally under well-knowned brands like Chevrolet, Pontiac, Opel, Hummer
and has collaborations with Toyota, Isuzu, BMW, Daimler Chrysler and Suzuki Motor
asset? Isn’t it that every company’s greatest assets are their employees? But in GM it is
very much evident that their employees are not their greatest asset because if such
employees are really assets then, they could not have resorted on conducting series of
strikes, there will be no UAW having walk-out from work and a sit-down strike.
But what is UAW? What are the immediate issues in their strike ? The United Auto
Workers (UAW) is the union who had a strike against the General Motors. It is officially
International Union which has 500,000 members all over US, Canada and Puerto Rico.
Their immediate issues in the strike include health and safety, speed-up, outsourcing,
Based on the maxim of a certain Lao Tsu, GM hence, can be considered to be the
unfortunate one who underestimated its enemies, and enemies can be considered as the
UAW. It ignored such strike conducted believing that they can continuously gain profits
and still manage to have a successful corporation but it overlooked that it is already
losing a lot of its treasures, and it is already losing billions of its assets. It had mistaken
on its employees’ treatment. It further overshadowed the local and UAW’s issues by
continued threat to wipe out jobs in Flint. The two parties aforementioned are the
concerned parties in this case, they are the two opposing parties, with opposing views
but ironically, working on the same workplace and working for the same purpose.
PROBLEM IDENTIFICATION
GM’s attitude: ”If you don't do it our way we will close down and move to Mexico. It would
probably take something big, like what happened in Indonesia, for things to change."
UAW: “Here we are in an economy they tell us is flourishing and every day we are losing jobs.
The rich keep getting richer."
1) EXTERNAL PROBLEM
changing
2) INTERNAL PROBLEM
• When the company promised that it would bring new machinery into the plant,
making it as productive as its newest factories in Mexico and Brazil but the
promised new investment never materialized; hence, a 44 day strike from June 5
• When GM planned to close the Flint Metal Center (the birthplace of UAW)
The main issue surrounding the case is the nature of the relationship between the
management and the union. As what the case states on its face, the real issue is whether
the relationship between unions and management is really changing. The latter for the group
is the external issue that this paper wishes to resolve. The internal issue however,
surrounding the case can be further sub classified to the major and minor problems.
Considering all the issues and controversies herein laid, this paper desires to attain
1. To identify the procedures of the General Motors with respect to the handling of its Labor
4. To justify the importance of determining the roles of a company and a labor union in
5. To prove that the relationship between the unions and the management is really changing.
AREAS OF CONSIDERATION
Strength: It provides the cause of the conflict and can explain the behavior of both parties. It
also seeks to stabilize the balance of this paper. If this will be considered, the question of the
changing relationship between the company and labor union may be answered.
Weaknesses: We don’t see any conflict if the nature of the work will be considered
Opportunities: It will provide a simple yet well-related solution not only to this case but to the
Threat: If this area will going to be abused, it may harm both parties and their market
subjective one
Threat: The possible alternative that can be drawn herein may not last taking into
Strength: This constitutes an objective pattern to determine the real cause of the controversy
Weaknesses: If the research is ineffective, inaccurate and insufficient data may be used
Opportunities: It can propose revisions on the aforementioned agreement that may be used
not only within the company but with the market and other related businesses
Strength: It answers the question “why”. Hence, this will lead to a concrete answer to the
Weaknesses: Behavior varies, hence a collective behavior does not necessarily implies that
Opportunities: It identifies the psychological element of the case, hence it will justify that
strongly implemented
6. The continuing concern of the company in retaining its leadership in its field
Strength: It provides the mission-vision of the company; their continuing concern and their
desired results
Opportunities: If proven to be unjust, the same may be amended and new company rules will
as a result be produced
7. External and Internal environment affecting the real score between GM and UAW
Weaknesses: An extensive will be undertaken, and therefore will prolong his case study
Opportunities: The Company’s image to its environments (whether internal or external) will
be enhanced
Threat: This area prolongs the ascertainment of solution and attainment of the objectives
Considering the aforementioned areas of consideration, the following alternatives are herein
suggested:
1. Revive the damaged relationship of GM and UAW through the enhancement of their
agreement with respect to bargaining power. The rights that were prejudiced shall be
cured through the reinstatement of the worker who previously suffered forced lay-offs
and in the same manner that the industrial espionage suffered by the company shall
as possible be lessened.
Advantage: It shows that the company gives importance to their assets and capital; that is,
the labor.
Disadvantage: The Company is not financially and morally ready to readmit the workers
previously terminated.
2. The company shall stick to its vision to retain its leadership. The prejudiced
workers shall not be reinstated but to be given a just benefiting capable not only of
the sustenance. After the same were settled, discussions with respect to the sides of
Advantage: It justifies the company’s vision-mission. The company will gain the trust and
recognition of their external environment specifically the industry to it is attached for the
reason that former will be viewed as a company which adheres its vision-mission.
Disadvantage: First is that will threatened the company. The workers who were previously
terminated may possibly perform an industrial espionage to the detriment of General Motors
by way of transferring to the latter’s competitor and thereby transmit the knowledge that they
contributed and gained to the General Motors. Second is that, the company’s image will be
harmed. The market may view them as a company who doesn’t value their workers.
3. Change the company’s goal and favor the laborer, anyway human resource is
Advantage: It will regain the trust of the market to which GM caters to. It is also a good moral
Disadvantage: Apart from those two advantages is a multiple complication that this
alternative may produce. Changing the company’s mission-vision is a crucial step. It affects
not only the internal management of the company but the leadership and image that the
same wishes to adhere. The change in the mission-vision cannot be demanded specially
that General Motors is in the process of regaining the leadership in their industry. If the
company will change their goals, it will impliedly result to an absolutely reformation of all the
aspects of the company such as the production, human resource, sales, marketing etc.
4. Same in number 1 except that the reinstatement shall be conditioned that the
workers shall be admitted when the company finally regained its leadership. In the
Advantages: This alternative totally diminishes the disadvantage laid in ACA no. 1; that is,
the questionable financial capability of the company in reinstating the 30,000 workers laid-
- the company value their best asset and that is the labor
- the condition herein stated is not prejudicial to the terminated workers for they will
Disadvantages: We don’t see any disadvantages except with respect to the worker’s
acceptance of this alternative. However, we are in the belief that the same will not be
rejected for the reason that the same is not unreasonable for in this alternative, the
Disadvantages: The same is not conscionable for it doesn’t provide a specific solution to the
problem. Moreover, seeking legal intervention is costly. Most importantly, there is a conflict
between the company’s advocacies and legal provisions for the same does not assure the
chosen field.
Advantages: This provides a quick escape to the controversy the company is dealing with.
Disadvantages: It is prone to legal dispute and claims. It provides no solution to the problem.
BIBLIOGRAPHY
1
Wikipedia, Flint, Michigan Auto Industry
http://en.wikipedia.org/wiki/Flint,_Michigan_Auto_Industry
2
World Socialist Web Site, Metal Center strike in sixth day; New GM strike threat in
Flint, Shannon Jones, 11 June 1998
http://www.wsws.org/workers/1998/jun1998/uaw-j11.shtml
3
World Socialist Web Site, Court threat to General Motors strike, Martin McLaughlin,
17 July 1998
http://www.wsws.org/workers/1998/july1998/gm-j17.shtml
3
World Socialist Web Site, GM job cuts will devastate North American cities, Joseph
http://www.wsws.org/articles/2005/nov2005/gm-n23.shtml
4
How Industrial Unionism Was Won: THE GREAT FLINT SIT-DOWN STRIKE
http://www-rohan.sdsu.edu/~rgibson/flintstrike.html
5
New York Times, Jobless Claims Rise; G.M. Strike Is a Factor, Saturday, March 3,
2007
http://query.nytimes.com/gst/fullpage.html?
res=980CE0D61E3DF93AA25755C0A96E958260