Labor Laws and Unions Paper

Labor Laws and Unions Paper

Patricia Baskerville

HRM/531

February 27, 2012

Professor Brian Frank

Labor Laws and Unions Paper

Unionization plays a critical role in protecting the rights of the employees within the workplace. In today's economy, very few industries have unions such as manufacturing, education and healthcare. In this article, Ford Motor Company, an automobile industry has a large union mainly because of the size of the company. This article will discuss Ford's motor company background, and its legal issues or obstacles the organization may encounter. In addition, this article will discuss Ford's legal issues violation and possible recommendations to minimize litigation. Following, this article will discuss Ford's benefit of joining a union and the process the organization took toward unionization, and the method the union uses to bargain. In closing, this article will discuss the effects union bargaining has on Ford Motor Company. Furthermore, Ford Motor Company union assisted with its operational processes by increasing its performance and production level.

Background

Henry Ford, the founder of Ford's Motor Company developed this organization in 1903. Henry Ford's objective was to create a company that is the leading automotive manufacturing company throughout the world. Ford Motor Company produces cars, trucks, commercial trucks, and replacement automobile parts. Ford Motor Company employs over 200,000 people including 170,000 employees and 40,000 United Auto Workers (UAW) in the United States. As a condition of the union, Ford created contract in which they will hire 12,000 employees with the United States, and invest a little over 6 billion of dollars into its operating plants. The labor contract is effective for four years, which can drive its business to build value and profits.

Legal Issues and Obstacles Ford could Encounter

Because of the economic crisis the United States underwent, a legal issue Ford can face is workforce reduction. As a result of the recession, the unions had to accept reductions in benefits and compensation because they wanted to sustain its employment. If the union failed to accept Ford's terms, the organization would have outsourced to reduce labor costs. Ford could face a legal issue because of the compromise it made to the union in regards to the new labor contractor. The issue may arise if the company continues to lose money, which may have to overturn the contract because the organization cannot afford to pay its employees and offer any benefits. The best option is for Ford to implement a strategy that can sustain its business, avoid employee strikes, and to reduce conflicts about investment approval.

Possible Laws Broken

The possible laws broken within Ford's motor Company is its employee's laws that constitute its rights and protection. The government provides each industry with employment laws to follow, and both the organization and employees must comply with the laws. The reason for the laws is to safeguard the employees' rights and security. Ford may break current laws by not adhering to the guidelines in employment laws, and the employee believes his or her rights are in violation. Because of circumstances, Ford must ensure that it provides an appealing reason for laying off employees without employees experiencing discrimination or prejudice. Furthermore, Ford's business decisions can result in unwanted legal attention and can develop a bad image for its organization.

Recommendations

There are several methods an organization can use to minimize legal issues. In Ford's situation, one way to avoid legal issues is documenting the discussion and guidelines it had with the union and places it in a storage space. This strategy will reduce the risks of breaching a contract and can be used as a reference guide to the organization. Documenting and informing employees and the UAW of any changes or updates that may conflict with contract, provide effective feedback from union and employees, and to reduce strikes and lawsuits.

In addition, Ford should establish future considerations of legislation to prevent future conflicts, provide effective training of policies and procedures,