Collective Bargaining: The General Motors-United Auto Workers Deal


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
  
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : HROB109
Case Length : 19 Pages
Period : 2005-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : General Motors
Industry : Automotive
Countries : USA

To download Collective Bargaining: The General Motors-United Auto Workers Deal case study (Case Code: HROB109) click on the button below, and select the case from the list of available cases:



Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Human Resource and Organization Behavior Case Studies
» HRM Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

A 'Monumental Outcome of Collective Bargaining' Contd...

The agreement with the UAW put an end to the problems GM had been facing with regard to the rising healthcare costs for its employees.

GM had been the market leader in the US till 1980, with a market share of 46 percent. However, with the entry of foreign car manufacturers like Honda Motor Company8 (Honda) and Toyota Motor Corporation9 (Toyota), GM began to face intense competition and it lost market share to these new players. Analysts felt that GM had lost its market leadership position because of its sluggishness in designing new models when compared to its Japanese competitors who kept coming out with new designs.

In addition to this, GM's fortunes were severely affected with under-funded pension liabilities, rising employee and retiree healthcare costs, and a decreasing market share in the US automobile market.

The company's US market share fell to less than 25 percent in 2006. Also, for the third quarter that ended September 30, 2007, the company reported losses of US$ 39 billion (Refer to Exhibit I for GM's financial performance).

These problems had GM teetering on the brink of bankruptcy in 2005.

The company put a turnaround plan in place in 2005. The plan focused on reducing costs among other things. The company worked with the UAW to decrease its healthcare costs and also to facilitate huge job cuts...

Excerpts >>

8] Honda Motor Company Limited, headquartered in Tokyo, Japan is one of the world's major manufacturers of automobiles, trucks, motorcycles, and scooters. Honda was founded in 1948 and started its assembly plant in the US in 1982. Its revenues for the fiscal year 2007 were US$ 94.24 billion.

9] Toyota Motor Corporation, headquartered in Toyota, Aichi, Japan, is one of the world's leading automobile manufacturers. It was founded in 1933. It sells its products under brand names such as Toyota, Hino, Lexus, and Scion. Its revenues for the fiscal year 2007 were US$ 202.86 billion.

  

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.