Chapter 12, Problem 1CTQ

Summary Introduction

Case summary:

This case study is between a company and its union members. Company B came up with a new wages and benefits to the members of IAM (International Association of Machinists) by way of launching 777X jetliners. This brought a fear in the members of IAM a threat of moving out the jobs out of State W. Most of the experienced machinists were the best people of IAM in area S.

The members were in great anger when Company B presents it revised contract which could affect the wages and pensions of the members in order to build 777X model. The local union leaders were under ruled by the other international and district leaders. The revised contract took by way of vote of members. But the members rejected the contract with a margin of 2-to-1. The company after verification modified the new contract but the members rejected the deal as the contract is similar to the one first.

Later the national leadership of International Association of Machinists stepped and forced the members to vote and later the deal was approved. Though the deal was approved there still remains a strife among the members.

Characters in the case:

• Company B

To discuss: Whether the criticism on Governor and state’s senator is fair.

Explanation of Solution

The criticism is fair because these official are working for the welfare of people and not for the subset of people in the union. It is not the duty of these official to bring the deal or contact to vote, it is purely in the decisions of union leadership to make such kind of decisions. Thus, the criticism on Governor and state’s senator is fair.