A Comeback for the UAW? With the currently aging workforce and the demands on both domestic and foreign auto workers in the US the overall desire for labor organization could be on the upswing during the next decade. With almost two thirds of the current manufacturing workforce poised for retirement and lower wage workers being hired unions could gain an infusion of both support and energy. Couple this with a downward trend in the economy which stokes demand for lower costing automobiles could cause automakers to look for new ways to increase profits. The need for increased profits usually leads to layoffs and decreased wages this will add even more fuel to the union engines.

The writer theorizes that with a majority of Detroit autoworkers at retirement age the new lower paid workers with few benefits may resent the high retirement packages of their retiring counterparts. (Noe, 2009) Do you think the new and younger workers, paid less and getting fewer benefits, will fight to keep retirees’ benefits? He couples this with the fact that Japanese automakers want to normalize wages with the areas in which the automobiles are being manufactured. Both reasons lead the author to believe that the workers on both sides will turn to the UAW (United Auto Workers) to help keep wages high and benefits in tack. I tend to disagree with some of the authors conclusions. I do believe the younger workers in Detroit will turn more fiercely to the UAW to protect high wages and benefits. The Detroit workers are sons; of sons of sons of autoworkers I don’t think they will resent the older retired workers due to the fact most will know them as family, friends or the relatives of friends. I think they will turn to the union to try and guarantee themselves the same packages the retiring workers receive. As far as the foreign owned companies most of these plants are firmly located in southern states like Tennessee, Mississippi, Alabama and Georgia. These states are right to work states for a reason, most of the populace desire freedom over return. That is to say that most will take a lower wage as long as it stays within in the community norms and so that they retain the freedom to negotiate on their own terms.

Even without considering wages the HR department at the must consider the large health care and retirement packages of the almost 56,000 retiring workers over the next decade. They must also consider the benefits packages of the 56,000 new hires that must be hired to replace the retiring workers. With new union contracts coming up these benefits packages could very well be subject to change. There could also be a desire to improve on the older contract. This could very well lead to a strike if early preparations on employee desires are not made prior to the renegotiations. With previously stated stressors on the foreign auto manufacturers in the country UAW involvement could be knocking at their door. (Noe, 2009)This time around, the UAW could sign up the American workforce of foreign car companies for the same reason. All of the future obstacles will involve labor relations in some form or another not everyone will be happy with the new deals negotiated or not.

If I were hire by Toyota to deal with the possibility of dealing with a possible unionization of its plants in the US I would start with the communities where the plants are located. Sure everyone one wants hirer wages but if the company can keeps its pay within community standards or a little above company standards it placates the majority of workers. I would try to add better benefits packages with low cost incentives like 401 K vestment increases instead of adding more expensive options like increasing the company paid share of medical insurance. Toyota needs to emphasize the community involvement, and the economic impact it has to the community using specific names, businesses and locations. This would better show significant connections to the community.

The author makes a compelling argument for the UAW’s rise back to power but he does it very caviler disregarding economic factors and also cultural factors. The tensions look like they may push workers back to the union but if companies show they operate on good faith with modest packages it could backfire on the UAW by making them seem greedy and selfish. The overall concern is and should be the workers welfare and contentment. Content workers don’t leave and they tend to produce a more quality product and at a faster rate. In the end it is the union members not the union which will make or break the companies and also the unions themselves. References
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2009). Fundamentals of human resource management, 3rd edition. New York, NY: McGraw-Hill/Irwin.