Losing Control To Unions
By John Guarniere
Like approximately 15,000 other companies this year, you may have received notice from the National Labor Relations Board (NLRB) that a group of your employees is considering representation by a labor union.
Your fires reactions are usually disbelief, shock, and more than a tinge of anger. These initial reactions quickly give way to a search for answers to some pressing questions:
- What did we do to cause this action?
-Why did employees sign a petition to begin with?
- Will the company's competitive position be harmed by unionization?
- How should my company conduct itself during the election?
- Will the company lose control if the union is voted in?
These feelings are not unique. Surprisingly, 50 percent of those companies receiving notices from the NLRB are small non-manufacturing companies. Within 60 days from the notice, the election must be held. In those situations where employees vote in the union, the union becomes certified to represent the group.
PERHAPS THE ONLY employees with a gripe were those that signed the petition, or possibly the problem is company wide. The problem may be more "perceived" than "real" which has become exacerbated by poor communications. Additionally the problem may be you, the CEO or owner.
Whether employees feel underpaid of unfairly treated, it is often the case that top management did not listen to them. Often the problem is that the boss has been so busy making the company grow and seeing to increases in market share that he or she has not had the time or the financial resources to develop realistic human resources policies and/or employee relations programs.
What can be done about it?
Instead of going to war with your employees, you should indicate that if employees feel that there are serious problems or mistakes, the company is now willing to listen to them and work with them to solve the problems to everyone’s mutual satisfaction. Management should say "you've gotten our attention, now let's work together."
THe best way to deal with these situations is for the owner or CEO to become his own "representative" in order to maintain control of his company. He needs to develop a human resource program that deals with employee concerns.
Some of the critical actions that must be taken by the CEO are as follows:
Employment
- Spend time and select positive thinking employees
- Promote from within whenever possible and develop career paths.
Training
- Train your managers and supervisors in employee relations, appraisal and communication skills.
Organization
- Hold a selected individual accountable for the human resource function.
- Hold managers and supervisors accountable for effective communications.
Performence Management
- Install equitable performance measurement and appraisal systems at all levels, especially at the lower levels.
- Install compensation systems that reward corporate and individual profitability and/or increased productivity.
Communications
- Let all employees know about long range plans and new directions.
- Develop formal channels for upward and downward communications.
- Always keep communication channels open.
Management
- Always treat your employees with respect.
- Specify each employee's role and goals.
- Encourage ideas and suggestions through formal suggestion programs.
- Invest in employee benefit plans.
Leadership
- Listen to what your employees have to say.
- Develop progressive human resource policies and work rules.
- Give hourly employees more responsibility.
- Do opinion and attitude surveys annually.
- Foster an organizational climate that promotes teamwork.
- Keep the workplace organized, vital and upbeat.
For those companies that achieve high grades in their human resource efforts they not only will avoid unionization, but they can anticipate being counted among the fastest growing and most profitable businesses in the country.
Many organizations recognize the time needed to handle the human resource function is more than they can devote to it but not enough to justify a full time employee. The need for on-site personnel management is growing among professional service organizations and is being met by a select group of companies that can provide everything from hiring your staff to selecting the best employee benefits at the least cost to developing incentive-based compensation programs. Your financial advisor should be able to assist you in locating one of these companies.
Published in the Mercer Business Magazine
By John Guarniere
Like approximately 15,000 other companies this year, you may have received notice from the National Labor Relations Board (NLRB) that a group of your employees is considering representation by a labor union.
Your fires reactions are usually disbelief, shock, and more than a tinge of anger. These initial reactions quickly give way to a search for answers to some pressing questions:
- What did we do to cause this action?
-Why did employees sign a petition to begin with?
- Will the company's competitive position be harmed by unionization?
- How should my company conduct itself during the election?
- Will the company lose control if the union is voted in?
These feelings are not unique. Surprisingly, 50 percent of those companies receiving notices from the NLRB are small non-manufacturing companies. Within 60 days from the notice, the election must be held. In those situations where employees vote in the union, the union becomes certified to represent the group.
PERHAPS THE ONLY employees with a gripe were those that signed the petition, or possibly the problem is company wide. The problem may be more "perceived" than "real" which has become exacerbated by poor communications. Additionally the problem may be you, the CEO or owner.
Whether employees feel underpaid of unfairly treated, it is often the case that top management did not listen to them. Often the problem is that the boss has been so busy making the company grow and seeing to increases in market share that he or she has not had the time or the financial resources to develop realistic human resources policies and/or employee relations programs.
What can be done about it?
Instead of going to war with your employees, you should indicate that if employees feel that there are serious problems or mistakes, the company is now willing to listen to them and work with them to solve the problems to everyone’s mutual satisfaction. Management should say "you've gotten our attention, now let's work together."
THe best way to deal with these situations is for the owner or CEO to become his own "representative" in order to maintain control of his company. He needs to develop a human resource program that deals with employee concerns.
Some of the critical actions that must be taken by the CEO are as follows:
Employment
- Spend time and select positive thinking employees
- Promote from within whenever possible and develop career paths.
Training
- Train your managers and supervisors in employee relations, appraisal and communication skills.
Organization
- Hold a selected individual accountable for the human resource function.
- Hold managers and supervisors accountable for effective communications.
Performence Management
- Install equitable performance measurement and appraisal systems at all levels, especially at the lower levels.
- Install compensation systems that reward corporate and individual profitability and/or increased productivity.
Communications
- Let all employees know about long range plans and new directions.
- Develop formal channels for upward and downward communications.
- Always keep communication channels open.
Management
- Always treat your employees with respect.
- Specify each employee's role and goals.
- Encourage ideas and suggestions through formal suggestion programs.
- Invest in employee benefit plans.
Leadership
- Listen to what your employees have to say.
- Develop progressive human resource policies and work rules.
- Give hourly employees more responsibility.
- Do opinion and attitude surveys annually.
- Foster an organizational climate that promotes teamwork.
- Keep the workplace organized, vital and upbeat.
For those companies that achieve high grades in their human resource efforts they not only will avoid unionization, but they can anticipate being counted among the fastest growing and most profitable businesses in the country.
Many organizations recognize the time needed to handle the human resource function is more than they can devote to it but not enough to justify a full time employee. The need for on-site personnel management is growing among professional service organizations and is being met by a select group of companies that can provide everything from hiring your staff to selecting the best employee benefits at the least cost to developing incentive-based compensation programs. Your financial advisor should be able to assist you in locating one of these companies.
Published in the Mercer Business Magazine