Gainsharing in a Union Environment

A truly involved workforce is an awesome competitive weapon... that is the key to unlocking the door of economic excellence.

Can a system that epitomizes cooperation, openness and trust exist and prosper in a house seemingly divided?

The historical adversarial relationship between companies and Unions is well known. Companies drive for increased profits and reduced costs (and a big one is people) while Unions drive for workers rights and increased pay and benefits.

In pre-Union days workers were viewed as simply a physical tool of production. This view of the worker led to the continuing abuse of workers, in many instances, and, not at all surprisingly, to the union movement. Workers needed protection because of how they were viewed-tools of production. They were certainly not viewed as Human Resources.

At this point it is wise to look at some of the data in an article published in Business Horizons entitled, How Unions View Gainsharing.* The authors list reasons why Unions may oppose gainsharing and the top 5 are:

• Management may try to substitute it for wages
• Management cannot be trusted
• Peer pressure to perform may increase
• Bonus calculations are not understood or trusted
• Union influence is undermined

The authors also found reasons that Unions may favor gainsharing and the top 5 here are:

• Increased recognition
• Better job security
• Increased involvement in job activities
• More money
• Increased feeling of achievement of contributing to the organization

In order for gainsharing to have a chance in a Unionized facility the two lists above must be understood and dealt with openly and frankly as soon as possible.

There are documented cases where Scanlon type Gainsharing plans can operate and thrive in Unionized Companies. It takes great courage on the part of Management and great courage on the part of the Union but it can be done. The very first Scanlon implementation was in a unionized plant. What became known as the Scanlon Plan was created and implemented by a United Steel Workers local President, Joseph Scanlon.

I will close this article by simply saying that in no case can a house realize it’s true potential by being totally divided. Fortunately it is very possible to protect your interests and still focus on the competition. The old mindset of trying to get more of the pie must be replaced by the new mindset of making the pie BIGGER. If the leaders of the people, that is the Management/Union nexus, can embrace the fact that neither can be near as good alone as they can be together, then the battle is as good as won. A truly involved workforce is an awesome competitive weapon. Joseph Scanlon said it best…

“Nobody knows more about the work than the worker. There are a great many things that the worker can do if he has a complete understanding of the necessary. Given the opportunity of expressing his intelligence and ingenuity, he becomes a more useful and more valuable citizen in any given community or in any industrial opportunity.” ~ Joseph Scanlon

Leaders, that is the key to unlocking the door of economic excellence. Do it, for your people, for your Company, for your community and for the competitive ability of the United States of America. You will be a leader of a truly involved workforce whose human resources are maximized.

*How Unions View Gainsharing, Timothy L. Ross, Larry L. Hatcher, and Dan B. Adams. Business Horizons, July/August 1985, No. 85403