Company's Relationship with the Union

Company's Relationship with the Union

  • Submitted By: TobyTheDog
  • Date Submitted: 03/02/2009 6:28 PM
  • Category: Business
  • Words: 1243
  • Page: 5
  • Views: 405


Gap Analysis: Global Communications
Toby The Dog

Gap Analysis: Global Communications
Global Communications, a telephone company, is facing total market share loss. The top executives have come up with a plan to save the company, yet created issues with the union that many of their employees belong. The company must now analyze their position, the company’s end-state vision, and the relationship with the union to decide where it is going to go an how it will get there with the most satisfactory end-state possible for the employees, the success of the company and the public relations fall out that will follow the decision.
Situation Analysis
Issue and Opportunity Identification
In the past 3 years, Global Communications has experienced a loss in market share as well as declining profits. Competition has lowered the operating cost for other multi-faceted communication companies and provided a cost disadvantage for Global Communications.
To counter this decline in profitability, Global Communications has created alliances and partnerships with other organizations to be able to expand into the greater communications market in order to realize growth opportunities. The executives at Global Communications have also created a cost-cutting plan to outsource labor to cheaper, more skilled workers in Ireland and India.
In conjunction with gaining cheaper labor overseas, another part of the cost-cutting plan includes laying off the current higher expense, less skilled labor. The union and its representative feel betrayed due to lack of involvement in the decision making process to cut costs by outsourcing labor. In previous negotiations with the union, it was decided to cut certain benefits from current employees and now the downsizing will create a conflict of interest with the union/employees and the company. The opportunity in the issue is to maximize the cost savings of Global...

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