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P and N General Motors Presentation

Final Project for 15.665
by

Steve Smith

on 1 October 2010

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Transcript of P and N General Motors Presentation

1910 2010 A rough beginning 1908 - GM Founded 1935 - UAW Formed Labor's Love Lost GM and UAW -- A New Path Forward 2005 - Contract Negotiation 2007 - UAW Concessions 2009 - GM Declares Bankruptcy 1975 2000 Growing pie bias A turning point? Transparency and relationship building
led to a more integrative negotiations UAW agreed to a mid-contract
renegotiation in which they accepted
a reduction in health care Transparency and relationship building continued
Situation is dire for GM and open books means
UAW really understands VEBA
voluntary employees'
beneficiary association GM agreed to put $20 million in a trust for retiree health care and not to decrease the number of UAW employees Now there's a 3rd party at the table GM and the UAW worked together to satisfy the government UAW accepted 17.5% stock for VEBA instead of cash and job reduction The Future The risk
Same situation, same behavior, same results
Recommendations
Establish lasting relationships
Begin informal negotiations early
Align interests
Leverage credible threats Agreed to accept arbitration if necessary in 2011 1937 - Battle of the Overpass Ford "Security" beat union organizers in view of news reporters 1937 - First UAW Mass Meeting UAW asks supporters to gather in Detroit - over 150,000 show up UAW members attack a strikebreaker - image wins the first
pulitzer for photojournalism 1941 - UAW Strike at Ford Plant 1937 - GM Fisher Body Plant UAW stages the first major sit down strike over management
proposal to move production to a different plant Legislative support for unions grew out of the Great Depression
UAW literally fought its way into existence in the auto industry Industry growth and GM dominance after WWII
UAW / GM relationship defined by distributive negotiation
UAW uses lengthy strikes to win penions, health care, wage increases Troubled times US auto industry affected by oil shortages, foreign competition
GM market share begins a 30+ year decline
UAW / GM negotiations become more difficult as the pie shrinks 1937 - Battle of the Overpass Ford "Security" beat union organizers in view of news reporters UAW asks supporters to gather in Detroit - over 150,000 show up 1937 - First UAW Mass Meeting UAW stages the first major sit down strike over management
proposal to move production to a different plant 1937 - GM Fisher Body Plant UAW members attack a strikebreaker - image wins the first
pulitzer for photojournalism 1941 - UAW Strike at Ford Plant 1950 1964 - UAW wins medical benefits
after 5 week strike of GM plants 1984 - UAW negotiates for "jobs bank" to provide pay for laid off workers 1998 - UAW strikes for 58 days
to protest outsourcing 1970 - UAW wins "30 and out" benefits
after 10 week strike US auto industry affected by oil shortages, foreign competition
GM market share begins a 30+ year decline
UAW / GM negotiations become more difficult as the pie shrinks Team Better Than Your BATNA Tye Duncan
Soji Awe
David Hwang
Steve Smith Power and Negotiation
15.665
Spring 2010
Final Presentation
Full transcript