Here are two well-known examples of employee ownership and teamwork
from corporate America.
Sincerely,
Wonko
United Airlines is a famous example of employee ownership that is
widely believed to have been successful for a time. The attacks of
September 11 and the broader problems in the airline industry as a
whole have resulted in United Airlines' problems rather than obvious
flaws in its ESOP.
"United Airlines Captain James Curtin believes in employee ownership.
Back in 1994, he eagerly joined thousands of fellow employees who got
their hands on a 55% equity stake in the carrier's parent, UAL Corp.
(UAL), in exchange for steep pay cuts. What he has seen since, Curtin
says, has confirmed the wisdom of that record $4.9 billion swap:
uninterrupted labor peace, job security, worker clout in the
boardroom, an expanding airline that is the world's largest and,
often, most profitable, and a retirement nest egg for 80,000 present
and past employees."
"UAL's ESOP: From Milestone to Millstone?" By Michael Arndt, with
Aaron Bernstein (March 20, 2000)
http://businessweek.com/2000/00_12/b3673128.htm
"United today finds itself in bankruptcy, nine years after the ESOP's
inception. This current crisis is certainly not a result of
employee-ownership. On the contrary, United thrived through the late
1990's because of the cost savings created by the ESOP."
"IRS Ruling Signals End to UAL ESOP" The IAM (March 4, 2003)
http://www.goiam.org/territories.asp?c=4064
"For a while, it worked smoothly. Greenwald introduced task force
teams and invited pilots and mechanics into strategy sessions to help
cut costs. UAL's stock price more than quadrupled by late 1997."
"United Experiment Falters" by Dave Carpenter, Associated Press (March
4, 2002) http://starbulletin.com/2002/03/04/business/story1.html
An article on employee ownership in general:
"How Employee Ownership Is Good For Business" By Martin Staubus,
Beyster Institute (May 2005)
http://www.beysterinstitute.org/includes/cfbin/output/article_slot_view.cfm?ID=628210
Employee Involvement is a teamwork promotion process negotiated
between Ford and the UAW in 1979. It is viewed as being successful.
"In the late 1970s, the parties explored Employee Involvement (EI) as
a way to enlist worker commitment and effort. The objective was to
improve product quality and plant operations, as well as to enhance
employees' satisfaction with their jobs and with the business. EI was
formally adopted in 1979 as a voluntary process. It quickly proved its
value in a severe economic downturn which precipitated one of the
Company's deepest financial crises and reduced the work force by
almost one-half."
About the NPC" UAW http://www.uawford.com/sub_about.html
"Employee Involvement" UAW http://www.uawford.com/ei.html
"Progress is seen in the fact that instead of being in ?serious
financial trouble,? they are setting record profits and their quality
has improved. Paul A. Banas, former Manager of Employee Development
Strategy and Planning at Ford Motor Company, believes their
participative management and employee involvement program has directly
contributed to their 65 percent improvement in quality between 1980
and 1986 and their record-breaking profits in 1987 and 1988 [2, p.9]."
"The Power of EI At Ford" by D. Keith Denton, CIVID3.com (2003)
http://www.civid3.com/powerofeiatford(full).htm
Ford's program was copied from its Japanese competitors, who had long
had a strong culture of employee involvement in the form of "quality
circles."
"Employee Involvement -- A Vital Aspect Of Total Quality Management" C
& K Management Limited (2003)
http://www.themanagementor.com/kuniverse/kmailers_universe/manu_kmailers/QM_employee.htm |