End Of A 20 Year Experiment:
End of a 20 year experiment:
Why Saturn and the United Autoworkers Agreement Failed
The General (GM) Motor Saturn-United Auto Workers (UAW) agreement evolved from GMs desire to build a small, affordable, and efficient vehicle. The purpose of this paper is to explore the opposition to the agreement and the circumstances of events that will explain why the Saturn-UAW agreement failed.
The unique labor relations agreement was basically the result of two chief negotiators, Don Ephlin from the UAW and Reid Rundell from GM who takes the initial concept conceived in 1982 and makes it a reality. By 1983, GM and the UAW enter into a joint venture to develop the principles and ideas for the foundation of Saturn. A team of 99 individuals, Group 99, visit numerous plants and facility all over the world and come up with the following proposal: "ownership by all employees, the assumption of responsibility by all, equality and trust among employees, the elimination of banners to do a good job, give staff the authority to do their job, and existence of common goals (Saturn Corporation)." In layman's term, the group recommended the use of labor-management cooperation, employee empowerment, self directed teams, and the ability to resolve conflict management at the lowest level through consensus.
GM and the UAW approve a labor agreement for Saturn in 1985. The agreement in itself is unique because it is not consistent with current auto manufacturing principles. The agreement focuses on a team-based production and labor-management decision making. It takes the standard six hundred plus page UAW contract and condenses it to thirty plus pages. It reduces job classification, allows job flexibility and eliminates standard work rules. All employees receive salary and twenty percent less than the standard General Motor contract. Saturn employees can recoup the difference through job performance and achieving common goals. However, if...
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