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12
Participatory Processes
McGraw-Hill/Irwin
An Introduction to Collective Bargaining & Industrial
Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Relations, 4e
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Quality Circles
In a typical Quality Circle (QC) program, workers in one area
of a plant meet for one or two hours per week with their
supervisor
- Quality Circles allow workers and management to identify
improvements in production and service delivery
- Many companies initially reported large payoffs from QC
activities, with scrap rates dropping and cost savings through
new processes
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Employee Ownership
- A more radical form or participation is employee ownership
- In some cases, employee buyouts occurred in the face of
impending plant shutdowns
- Some unions have promoted employee ownership as a way to
improve job security
- The employee buyout of United Airlines is the most noteworthy
example
- In 1994, United became the largest employee-owned company in
the U.S.
- It is not clear that the employee ownership had a positive effect
on morale or corporate performance at United
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Summary
- Experience suggest that new participatory processes cannot operate
in isolation from collective bargaining
- Reforms work best when they are associated with changes across
all three levels of industrial relations activity
- The ultimate success of reforms depends upon the ability to
reinforce and sustain high levels of trust
- To achieve tangible benefits, participatory programs have often
been accompanied by contract changes
- Shop floor participation has been spurred by strategic participation
- This helps convince workers that enhanced job security will follow
strategic participation
- Union critics fear that they will be co-opted by management in the
participatory process and their independence will be compromised
- Participation has rarely expanded without a crisis setting