Avoiding Labor Disputes

Boeing’s longest labor dispute in the past decade came to a close this month as union machinists returned to work.  The strike cost Boeing an estimated $100 million dollars a day in deferred revenue and further delayed the production of the 787 Dreamliner aircraft.

So what was the final result of the dispute?  J. Lynn Lunsford, of the Wall Street Journal, had this to say about the situation, “Officials with International Association of Machinists and Aerospace Workers said 74% of union members voted Saturday to accept a new contract that includes a 15% increase in wages and improved job security. In a change that will guarantee Boeing a more predictable delivery timeline, the union agreed to extend the contract a year to four years in exchange for increased pay and other concessions.”

Even with the strike ending, Boeing officials predict it will take several weeks for the workforce to get fully up to speed.  Boeing CFO, James Bell, intoned that production would be delayed ‘on a day-for-day’ basis.  Despite the ambiguity, Boeing’s stock share price has climbed dramatically since October 27th, when investors became confident of an impending end to the labor dispute.  Share price has risen from $42.50 to $52.50 since the 27th.  Industry experts estimate that Boeing has missed 70 deliveries due to the 57-day strike.

This prolonged incident poses the question: How can conflicts like this be avoided?  Labor disputes can be difficult situations that lead to significant damage both to the company and the employees.

Dunn & Bradstreet off the following tips to avoiding labor disputes:

1. Don’t give conflicting verbal and nonverbal messages. Nonverbal communication includes your posture, facial expression, mannerisms, and any other form of body language. It has been proved that when an employee receives a verbal message and a nonverbal message at the same time, they usually listen to the nonverbal one. So say what you mean and act like you mean it.
2. Give your employees the tools they need to do their jobs. If your employees can’t get the job done because they lack the proper tools (or training), who’s really at fault? Make sure the proper equipment is available before handing out that next assignment.
3. Learn to lead from the background. You don’t have to be a Napoleonic boss in order to be an effective one. Delegate authority properly and provide the instructions, tools, and equipment your employees need to get their jobs done. Then step well enough away. If problems or issues arise, you can always step back in to help.
4. Meet regularly with union representatives. If you consistently cancel union meetings and avoid union representatives, the next time contract negotiations are on the table you might be surprised to learn that you’ve become the enemy. Keep the lines of communication open year-round by meeting with union employee reps on a regular basis. Doing so will help you overcome workplace issues while they’re still small and easily manageable.
5. Be fair, but don’t give away the farm. There may be times when you’ll be tempted to say yes to every union demand, simply to get them off your back. Don’t do it. Instead, understand that it’s the nature of bargaining for each party to ask for more than they’re willing to accept. As long as you’re being reasonable and following the rules and guidelines of collective bargaining, there’s no need to give away the keys to your business.

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