De La Salle University-ManilaIn partial fulfilment of the

course requirements in

Strategic Human Resource Management (SHURMAN)

this 3rd Term of AY 2014-2015

Case Study #3: Union Organizing at SGA IndustriesSubmitted By:

De Castro, Erika J.Submitted To:

See, John Andrew

Submitted On:

April 15, 2015

I. Point of view

The perspective on which Iam approaching the problem is from the employee's point of view, because based on the case the employees are really the ones who are greatly affected by the issue and they are the ones who would be the one to decide whether there would be a union or not.

II. Statement of the problem

The problem of the case is all about the growing foreign competition that has affected a lot of companies. Due to the large competition the domestic companies started to lose a large amount of sales, thus forcing the management to start downsizing plants, laying off employees, reducing salaries and rescinding many of the perks and benefits that the workers were receiving back then. So because of this tension around the workplace started to occur especially since the workforce started dividing into two, half which is in favor for the management while the other half favors the union.

III. Areas for considerationA. Job Security

One of the things to be considered is the security of the employee's job. If the employee will not join a union, it won't be guaranteed that he will not be part of the lay off especially if he was just recently hired by the company. Usually employee's who were recently hired are the first ones to be fired. However joining unions doesn't necessarily mean that you can keep your job. It can also jeopardize the job of the employee. Even though the employee that joins a union cannot be fired easily, if the management decided to shut down the company due to big losses he can lose his job. Unions usually cause more problems to the company which causes the delay and inefficiency of the company and if the company won't be able to get profit it can lead to the shut down of the company. Also joining unions can delay or even hinder employees from getting promoted.

B. Salaries and Benefits of the Employee

Another thing to be considered is the salaries that would be given to the employees. Being included in a union entitles you to have a better wage however one of the downside is that in some unions even if you work harder the employer won't give you rewards except for those that were negotiated by your union. While on the other hand, although employees that didn't join any unions aren't guaranteed with high wages, they have a higher chance of getting promoted since employers believe that they are loyal to them compared to others.C. Company's Productivity

In my opinion the most important thing to be considered is the productivity of the company. No matter how high an employee's wage is, if the company isn't able to generate income then sooner or later everything will also collapse together with the firm. It is important to not only think of one's interest. By ensuring the productivity of the company everything will soon follow so it would be advisable to also prioritize the efficiency of the organization.

IV. AlternativesAlternativesAdvantagesDisadvantages

1. Don't join in the union and just let the management lead.Employee doesn't need to pay union fees and initiation fees. It won't jeopardize their promotion since management trust them more. They are also paid for their effort, quality, ideas, and unique traits Concerns regarding salaries and benefits received might not be resolved. They arent protected from layoffs.

2. Join in the union and voice out one's problem towards the management.Better wages

Employees will have a secured job since management can't fire them easily

Employees can acquire more benefitsThey only get paid based on the negotiation of the union, so they aren't usually paid extra for their effort. They also need to pay fees when they join unions. They can cause inefficiency instead of helping the company.

3. Don't join the union, instead choose a representative that would inform the management about the employees concerns.Tension in work will be lessen. Trust with one another will be stronger and there would be unity in the workplace. Concerns can be addressed even without the union.There won't be inefficiency in the company.Jobs of the employees aren't as secured if they won't join unions.

V. Implementation strategy

The problem with this issue is that it is quite hard for the employees to decide whether they should join a union or not. But in this case I choose the third alternative. I believe it would be better for the employees to not join the union and instead try to resolve their concerns with their management first. Based from what I read, it can be seen that the new employer has been encountering a major crisis since a lot of foreign businesses are competing against them, due to this he is forced to cut costs and so they started to lay off workers. I think employees should also consider that the management is really trying to resolve the problem and if they try to resolve it first without adding any third parties, which are the unions, I believe they would be better off. Through this solution the tension around the workplace would be minimized and trust and loyalty will be formed in the workplace. So to implement this strategy, workers should meet with each other and plan how they can approach the employer so that they can inform him their concerns regarding the salaries, benefits and job safety. They can also suggest other solutions to the employer to show him that they really want to help save the firm and with this the employer would also be able to trust his employees more and treat them well like families.

VI. Expected impact on companys Financial, Customers, Internal Business Processes, and EmployeesFinancialCustomersInternal Business ProcessEmployees

Lower costsBetter customer careEfficientEmployee retention

Increase profitabilityLess ConflictsOrderly workplaceSatisfied employees

Increase revenueCustomer retentionLoyal employees

If the employees were to implement my alternative course of action then the management and the employees would have a stronger relationship. Employees would be loyal to employers while employers will treat their employees well. Through this satisfaction will be attained by the employees and the loyalty and retention of the employees would be the reward of the employers. If the conflict of interest are to be resolved this way many problems that is usually caused by a union can be avoided like inefficiency of the company, disloyal employees, tension in the workplace and strikes. By addressing the concerns directly and not have to operate under the possibility of a collective strike the company's production won't slow down but instead it would flourish. So without the strikes there would be lower costs. Since there is no interruptions in the business process there would be an increase in profitability leading to a higher revenue. Consequentially, no collective strikes would also result to a better reputation that can attract more customers. Previous customers would also be retained because they know that the company has a really good reputation. Also since employees are satisfied they can provide better services which will result to a better customer care. The integration of this alternative can ensure that the business process won't be sacrificed in order to resolve the concerns of the employees. Workers hold a high role in a company because without them the company won't be able to give services or create products so it is the employer's responsibility to make sure that they are properly taken care of and treated well. Likewise employees should also consider the effects of their actions to their employer and to the company. That's why it's highly regarded that employees and employers should work together to find a solution to their conflict of interests first before including a third party because by collaborating first the employees would be able to satisfy their needs without jeopardizing the company.