Closing Case: Give and Take

Case Summary

The general view of management and labor unions is that they are antagonists: When one wins, the other losesand vice versa. In reality, of course, there are many situations where businesses and unions coexist quite peacefully. One notable example came from Harley-Davidson, which needed to reduce its overall costs to remain competitive.

The York factory was a key site for cost reduction. The factory was in dire need of modernization, the labor contract governing York workers called for wages above the industry average, and the factory had more than sixty different job classifications, and the union contract made it nearly impossible to move workers across classifications. One of the first options Harley considered was simply closing the York plant and moving its jobs to the firms newest factory in Kentucky. The International Association of Machinists and Aerospace Workers, however, persuaded the company to renegotiate a new arrangement that would allow some of the union workers to retain their jobs.

Case Questions (List question and answer.)

Do you think the Harley deal was too one-sided? Why or why not?

Do you think that it is appropriate for a government entity (such as the state of Pennsylvania) to take an active role in union-management negotiations? Why or why not?

In what ways could the new agreement have been improved to be viewed as more just and fair?

Please answer clearly and detailed