Take unions aboard, US specialist tells firms

COMPANY managers should bring unions on board rather than try to bypass them, according to Mr Mike Goodman, vice president of…

COMPANY managers should bring unions on board rather than try to bypass them, according to Mr Mike Goodman, vice president of Innovation Associates.

In an interview with The Irish Times he said many US firms coming to Ireland brought an anti union tradition with them, but there was growing evidence of unions adapting to new roles, even in the United States.

He was responding to a question about the growing number of US companies investing in Ireland which have non union policies. Next week SIPTU is bringing Elan Pharmaceuticals of Athlone to the Labour Court for refusing to recognise the union.

Elan is just one of many companies adopting this stance. A recent survey by Industrial Relations News showed that of 20 large US companies setting up in the Republic between January 1st 1994 and November 2nd 1995, none has recognised a union.

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Mr Goodman was in Dublin for a conference organised by the Institute of Personnel and Development on how to develop the "learning organisation" as a way of maximising input from staff. This is widely regarded as the next phase in the evolution of management.

Unions are understandably suspicious of change, Mr Goodman says. The importance of the learning organisation for unions is making them understand that making a profit does not have to mean a company getting more for less from its workforce.

"In a learning organisation, unions will be asked to take on different kinds of roles. For example, they are literally involved in peer hiring and setting learning and training agendas and even jobs.

"Jobs themselves become less of a fixed process. They change. This can be taken as a threat or an opportunity.

This did not mean there would be no conflict if unions opted for change, Mr Goodman said. "The worst thing you can do is smooth over differences and pretend things are functioning well."

An intelligent organisation uses the energy generated by conflict in a similar way to a practitioner of aikido. Managers need to take on more of a "teaching and a tutoring role".

He continued "A famous Japanese industrialist once said that the problem with the US was its workers. I think he had it quite wrong. The fundamental problem with the US is the managers.

"The threat from the industrial relations standpoint comes often from the middle management. They are often the ones whose role is under threat, who are being laid off."

One of the ideals of the learning organisation was that senior management should learn from what was happening at all levels in the company, and outside. Customers and suppliers were "stake holders" in a company, as well as workers and shareholders.

If unions are left out of this process, Mr Goodman says, they will look for somewhere else to do battle." This could be by adopting more radical strategies outside the workplace.

Where there is persistent serious conflict in unionised firms, Mr Goodman says, "what's missing for both parties is an understanding of the long term consequences behind their actions. What's missing is a common aspiration, even though both sides want companies that are healthy and profitable."

Despite the strong anti union bias in US business, Mr Goodman says there are plenty of examples of unions and managements being able to rise above traditional stances.