General Motors as a Unionized Organization
This week paper is going to outline several things about General Motors (GM) as one of unionized companies in the United States (US) and United Auto Workers (UAW) as the labor union that represents workers for GM Corporation. This paper will also discuss the effects of the union on the GM Motors such as organization’s benefit by joining a union, the unionization process, the process of Union bargain and the effects the union bargaining have in the organization.
General Motors Company, commonly known as GM was founded in September of 1908. It’s an American multinational automotive corporation with global headquarter in Detroit, Michigan (General Motors, 2011). General Motors produces cars and trucks in 31 countries, sells and services ...view middle of the document...
History of United Auto Workers (UAW) in relation to General Motors
UAW is a labor union which represents workers in US, Puerto Rico and Canada that ranges from multinational corporations, small manufacturers, state and local governments to college and local universities, hospital and non-private organization. UAW was founded in Detroit, Michigan in the 1930s and was part of CIO (Congress of Industrial Organizations). The UAW has more than 390,000 active members and more than 600,000 retired members in US Puerto Rico and Canada. It has more 2,500 contracts with some 1,700 employers in these countries including GM Motors (United Auto Workers, 2010).
Since UAW founding in 1935, UAW has consistently developed partnership with employers and negotiated industry-leading wages and benefits for its members. UAW members have benefited from a number of collective bargaining breakthroughs, including for gaining high wages and pensions for auto workers.
As a unionized company, GM motors faces advantages as well as challenges. One of the advantages of being unionized company can be seen in the representation policy. Companies like GM have detailed representation policy and use their representatives to negotiate for wages and other changes. Challenge that is often faced by unionized company is strikes. A labor strike is a powerful bargaining tool of labor unions (The disadvantages of labor unions, 2011).
An example in 2007, The United Auto Workers (UAW) launched a nationwide strike against General Motors as 73,000 members walked off the job and hit the picket lines at the nations’ largest automaker. President at UAW at that time was saying that GM had not been willing to meet the union part way in negotiation. Strikes do not benefit any parties but when someone is pushed off the cliff, things like strikes will happen (Isidore, 2007).