TPP OP Class. Workforce Management: Updating the Social Contract at Work and A Short Primer on Labor Relations

Transcription

1 TPP OP Class Workforce Management: Updating the Social Contract at Work and A Short Primer on Labor Relations

2 Today s Agenda, Objectives Pose the key Challenge: Rebuilding a viable social contract at work Short primer on Labor Relations--set up discussion of Kaiser Permanente Labor- Management Partnership Case Discuss Part Time Partner Redux case

3 The Social Contract The expectations that employees, employers and their communities and societies have for work and employment relationships

4 The Old Social Contract? Emerged out of Depression & WWII Image of a full time long term job Loyalty, good performance exchanged for security Security increased with tenure Benefits tied to tenure Wages & productivity/profits grew together Assumed spouse at home attending to family & community responsibilities

5 Today s World of Work 70% Regular ; 30% Non-standard work 48% of the workforce is female 15% workers have spouse at home Job durations more uncertain Less expectation for long tenure Wages, profits, productivity less correlated Increased premium on skills & learning

6 America s Choice: Class Warfare or a New Social Contract Cumulative Pressures between haves/have nots Decade of increased inequality Crisis in corporate confidence Void in worker voice decline in unions Declining pension security: from defined benefit to 401(k)s Tax cuts of 2001, 2003??, and renewed budget deficits Social and human service cuts at state level Long hours family, community pressures Which post war scenario will play out? WWII and a new social contract Vietnam and an era of conflict over scarce resources

7 120 Hourly Wages for Men by Wage Percentile, th Index (1973=100) th th Materials Source: Developed Mishel, by Lawrence, Joel Cutcher-Gershenfeld et al The and State Thomas of Working Kochan America (MIT) for use in ESD.140 Economic Organizational Policy Institute. Processes

8 Hourly Wages for Women by Wage Percentile, th Index (1973=100) th 20th Materials Source: Developed Mishel, by Lawrence, Joel Cutcher-Gershenfeld et al The and State Thomas of Working Kochan America (MIT) for use in ESD.140 Economic Organizational Policy Institute. Processes

9 3.0 95/50 Percentile Wage Inequality, Men 2.6 Ratio 2.4 Women Materials Source: Developed Mishel, by Joel Lawrence, Cutcher-Gershenfeld et al The and Thomas State of Kochan Working (MIT) America for use in ESD.140 Economic Organizational Policy Processes Institute.

10 Median Family Income, ,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Materials Source: Developed Mishel, by Joel Lawrence, Cutcher-Gershenfeld et al The and State Thomas of Kochan Working (MIT) America for use in ESD.140 Economic Organizational Policy Processes Institute.

11 3.5% Annual Growth in Family Income, and % 2.5% 2.0% 1.5% 1.0% % 0.0% -0.5% -1.0% Lowest fifth Median 95th percentile Source: Mishel, Lawrence, et al The State of Working America Economic Policy Institute.

12 4500 Average Family Hours, Black Hispanic White Materials Source: Developed Mishel, by Joel Lawrence, Cutcher-Gershenfeld et al The and Thomas State of Kochan Working (MIT) America for use in ESD.140 Economic Organizational Policy Processes Institute.

13 13% Change in Income and Hours for Middle Income Families, and % 9% 7% 5% 3% 1% -1% -3% -5% Average income Average hours Source: Mishel, Lawrence, et al The State of Working America Economic Policy Institute.

14 Health Insurance and Pension Coverage, % 75% 70% 65% Health insurance 60% 55% 50% 45% Pension 40% 35% 30% Source: Mishel, Lawrence, et al The State of Working America Economic Policy Institute.

15 50% Poverty Rate, Families With Children, % 40% 35% 30% 25% 20% 15% 10% 5% 0% All Female headed Source: Mishel, Lawrence, et al The State of Working America Economic Policy Institute.

16 Labor Management Relations Efforts to Transform the New Deal Model of Labor Relations

17 Three Levels of Employment Relations System in a Firm Workplace Level--day to day relationships, job structures, co-worker, supervisory relations, etc. HR Functional Level--specific terms and conditions of employment are established or negotiated Strategic Level--basic decisions on firm strategy, location, structure, technology etc.

18 New Deal Model--1930s-70s Workplace: Tight, narrow job definitions, grievance procedure for input, Collective Bargaining: Centerpiece of the system; take wages out of competition Strategic Level: Left entirely to management--outside the influence of workers and unions

19 Efforts to Transform, 1980s Workplace: participation, teams, flexibility Collective Bargaining: work rule flexibility, job security; new pay systems Strategic Level: Info sharing, consultation, joint governance, employee ownership Current estimates: 1/3 relationships have significant efforts to change in place Limited by business-labor political impasse

20 The Larger Setting Unions declined--35% in mid 50s to 9% in private sector today Still influential in older mnf. Industries Growing in service sector; e.g. health care Wide variations in quality of individual, local relationships National Level: Political impasse on labor policy--business vs Labor Void in informal business-labor dialogue

21 Isolated Alternatives Labor-Management Partnerships Saturn Kaiser Permanente New York Hospitals and Health Care Union San Francisco Hotels & Hotel Workers Union Airlines: Southwest & Continental New York City labor-management community post 9-11

22 Situating Saturn Grew out of GM-UAW workplace experiments with QWL, teams, NUMMI GM couldn t build small cars profitably High level of trust built up between UAW leader Don Ephlin & GM s Al Warren Both willing to champion a new approach Most far-reaching & controversial labor relations & org. design experiment in the U.S of the past quarter century

23 Key Features of Saturn Partnership Team based work system-- 29 work functions Co-management--union-management partners throughout the organization Union participation in Manufacturing Action Council and Strategic Action Council Risk-reward pay system Employment security Partnership extends to suppliers & retailers

24 Kaiser Permanente Partnership Biggest in the nation--started in 1997 Visited Saturn & used it as a Benchmark National in scope--26 unions KP is a decentralized partnership with 2 parts: Permanente Group (for-profit physician groups) Kaiser Health Care (HMO) and Hospitals (non-profit) Broad set of objectives--improve health care, expand the business, involve employees/unions in business operations and strategies

25 Case of the Part-Time Partner So, didn t we solve this problem?

26 Summary Pts: Employees Positive Features Allows better work-personal life integration Risks Signaling lower commitment? Less opportunities to build social networks Reduced learning/development opportunities? Blurring of work & family/personal time/space

27 Summary Pts: Flexible work: Benefits to the Firm Retain valuable employees Attract future employees looking for flexibility Build employee appreciation & commitment Avoid burnout Identify/test links between hours & productivity Discover new paths to productivity & quality

28 Summary Pts: Challenges Managers: Must take a system s perspective what other HR policies need to be adjusted? Dealing with differing workforce views-life situations Changing traditional control mindset Society/Government Need to adapt employment laws/regulations to fit more varied employment relationships