![]() Two decades ago, it would have been considered an important accomplishment to have two or three products built on the same platform and the same assembly line. In the face of increased market volatility, the UAW and the auto industry have in recent decades embraced work rules that allow for more modular and more flexible forms of production.This is evident in the expertise the union now brings to discussions of quality, safety, predictive and preventative maintenance, workforce development, team-based operations, and other such topics. ![]() The UAW is transitioning from a union that primarily threatens to withhold labor to one that primarily enables work.car manufacturers (Ford, General Motors, and Fiat/Chrysler)-is a constructive partner in the U.S. The United Automobile Workers union (UAW)-which represents autoworkers at the Big Three U.S.As a result, the company’s workers received profit sharing checks of $6,2, $8,3, $8,8, and $6,9. As an example of the industry’s recent success, Ford enjoyed profits of $6.2 billion in 2011, $7.2 billion in 2012, $8.3 billion in 2013, and $6.9 billion in 2014.auto industry has been revitalized in recent years through a commitment to quality, innovative production and management techniques, a constructive relationship between management and labor, and improved relations with suppliers. To increase understanding and appreciation of the strategic dynamics facing the industry, we offer a comparison of the industry’s responses to two major recessions (the early 1980s recession and the Great Recession) a look at the relationship between productivity and compensation a specific focus on labor costs and work rules an examination of the geography of the industry, including the role of what are termed “transplants” (foreign-owned assembly and supplier facilities) and a consideration of how new technologies and systems to achieve quality and efficiency improvements are challenging core operating assumptions. jobs-and because the lessons are relevant to other industries facing transformational challenges. In particular, this paper aims to develop a deeper appreciation of the industry’s problems and of the sources of resilience in the industry, which include management leadership, union partnership, and front-line workforce teamwork.Ī more holistic understanding of the industry is important since its footprint accounts for an estimated one in every 22 U.S. In contrast, the overarching goal of this report is to present a series of windows into the industry that convey its complexity, and that make clear the limitations of simplistic assumptions about labor and management. Most policymakers and outside observers still make simplistic assumptions about labor and management in the auto industry, assuming, for example, that the industry’s problems can be alleviated just by reducing labor costs and relaxing union work rules. auto industry has faced multiple existential crises, illustrating both the cost of lost opportunities and the power of innovation as the archetypical industrial enterprise adapts to a post-industrial knowledge economy.
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