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Sga Industries Case Study Summary

Decent Essays
This case study is about the management of an organization trying to discourage their workers on the issue of forming a union. The organization, SGA Industries, is currently a non-union organization. Some of the workers are interested in starting a union; but, some of them have different opinions regarding the formation of a union. Previously the workers at SGA Industries enjoyed their working conditions and there was not a need for unionization. SGA Industries was known as the “world’s largest producer of women’s hosiery and employed approximately 6,500 people at ten plants in five communities in Georgia and South Carolina” (Nkomo, Fotler & McAfee, 2010). SGA’s sales were great. They had a good reputation in the community, and the company provided for its workers and treated them like family members.…show more content…
Some of the changes they noticed were they [(“laid off 1,500 employees, reduced employee’s pay, and decreased perks that the workers had previously enjoyed” (Nkomo, Fottler, & McAdee, 2012)]. In addition, SGA Industries changed the qualifications for labor positions which caused an increase in employee turnover. These changes prompted the workers to become interested in forming a union to address the changes in their work environment. They felt the union would advocate for their rights (Nkomo, Fottler, & McAfee, 2010). The management at SGA Industries did not agree with unionization at the company. The President of the company made several comments to coerce the employees to vote against the union. After that did not work, he wrote a letter to the workers using scare tactics. In his letter, he claimed that jobs would be lost if the union is voted in. An employer cannot use any type of scare tactics to employees if they decide to vote for a union or join a union (Unionization Procedures,
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