By Sally Klingel, Ann M. Martin
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Additional resources for A Fighting Chance: New Strategies to Save Jobs and Reduce Costs
It is in the nature of cost study tean1s that they are set up to deal with an imminent threat to an operation. Unless external trends change dramatically, the threat does not usually disappear, and it may even get more serious. Are cost study teams, then, only exercises in futility, or do they buy critical time that enables an operation to regroup? Clearly, Hog's Helpers must struggle with this issue. Team members recognize, as do most people in the distribution center, that it is not enough to have reached this year's target.
Win-One is composed of almost half the people in a department that makes medium-duty radiators. They became an employee involvement team in 1981, early in the history of employee participation at Harrison and long before their product was threatened with outsourcing. In 1984, the department took the opportunity provided by a lull in work to undergo the week-long training to become an operating team. By this time the team had a facilitator and a product coordinator, the latter, a supervisor in a new role, the former, a UAW officer chosen by his fellow team members to lead the team.
Nonetheless, some management representatives who were familiar with the Mexican vendor argued that its quality could be raised to CMO levels at little cost. The union argued that just-in-time delivery requirements could not be met or quality requirements maintained without a substantial change in costs. At one point in the negotiations, management gave the union two options: take a 50 percent wage cut to make CMO workers Xerox and the ACTWU 29 competitive with Mexican workers or take the risk of bidding on new products to keep jobs in the plant.
A Fighting Chance: New Strategies to Save Jobs and Reduce Costs by Sally Klingel, Ann M. Martin
Categories: Corporate Finance