A Union Playing Dirty

Slab Yard Slowdown The author of this report has been asked to assess and react to the case study pertaining to the slab yard slowdown. Basically, there are a good amount of workers who are actively gaming the system to get incentive payments that they are not entitled to. They are gaining these extra payments by manipulating their torches so that they push through work quicker.

However, this manipulation is causing the failure/flaw rate of the steel items being produced to go sky-high as compared to what it could be and should be. In no uncertain terms, the workers engaging in this ploy are stealing from the company because they are knowingly gaming the system to get more money at the expense of the company when it comes to the failed steel pieces.

However, the employer was less than wise in how this problem was responded to and the company will probably pay a steep price for what it did even if their motives were legitimate. Analysis The Problem Overall, the problem is that workers are being paid for shoddy work that far exceeds the output that is expected and a lot of that output is flawed in nature. The failure rate is certainly higher than it should be given accepted procedure.

The reaction to this was for the workers to be fired on sight for having tips that were out of spec. The workers reacted to this with a wildcat slowdown so as to punish the company. While the workers were clearly stealing from the company and being actively insubordinate (even before the slowdown), the sudden change in the discipline procedure, even if it's not against the collective bargaining agreement on file, is a terrible idea. Indeed, the prior discipline was to suspend for two days.

It started off that way in the first shift and then shifted to termination. The workers on the following shift were undaunted because they expected that it would just be a suspension. However, it turned out to be some more terminations. When they third shift got wise to this, they complied with the tip requirements but the aforementioned wildcat strike was done in clear retaliation for the move. The Solution There are two high-level problems that need to be corrected.

The bad behavior and practices of the employees needs to be fixed but he same is true of the employer. As it relates to the employer, there was at least one, perhaps two, miscues. First, making such a pivot as it relates to the usual punishment for a certain infraction with no notice is something that one cannot due. Second of all, doing so in a union environment is begging for trouble and a nasty reaction from the union.

Third, it should never be done period if there are any provisions in the collective bargaining agreement about due process, discipline structure or any specific mention of how this particular act will be responded to in terms of discipline. Two potential solutions to this is to give a thirty-day notice to the workers that anyone caught manipulating their tips after the 30 days will be fired on the spot for insubordination and stealing from the company.

Another solution, and this could be blended with the first, is to revisit the incentive structure and see if it should be adjusted in favor of the employees. Given that some employees are already making $100,000 from the current structure, that probably wouldn't be necessary but it is worth looking at and talking about it with the employees. The disparity between the higher-earning employees and the other rank and file should be looked at as well. If the disparity in pay can be justified, it should be left as is.

If not, then adjustments can be made. As it relates to the employees, they need to come to the realization that they cannot steal from the company by knowingly sending through flawed product and/or using a shoddy process or method. At the same time, wildcat strikes are not legal.

Even so, the employees should have their concerns heard if the revised disciplinary structure is against the collective bargaining agreement and they do deserve a high amount of pay given the amount of danger and heat that is involved with the job. Also, the fact that employees are forgoing breaks to earn more money needs to stop as well as this is almost certainly a violation of the law.

There are some instances where forgoing minimum wage and other laws is allowed for so long as it is agreed upon and allowed for by the CBA. However, if the break forsaking is not allowed under the law, everyone should be taking their normal breaks without exception (Morath, 2015).

Actions Given the above, the following needs to occur: The workers must be made to understand that bilking the company and churning out defective product is going to kill the company and it will stop immediately If allowable under the CBA, workers should be made to understand that intentional slowdowns and any other form of wildcat strikes are not allowed and will not be tolerated. Workers can and will be punished for violations of the CBA just like the employer would be held liable if they did the same.

If allowable under the CBA, terminations will start happening for people that are manipulating their bits. They are sending out flawed product in a knowing way so as to pad their pockets. This is insubordination and borderline criminal behavior. It will not be tolerated. At the same time, the employer should make it clear that a mutual solution can and should be hammered out but anything that involves the continued inflating of earnings or flawed output is a non-starter.

Midland would be better off shutting down the plant and liquidating than allowing the workers to kill the company. The demise of Hostess was a perfect example of that. Beyond that, everything is on the table including the restructuring of wages/incentives and so forth (O'Toole, 2016). The practice of not taking breaks will stop .. without question. It is not.