EMPLOYMENT MATTERS A lunchtime seminar series about employment relations and the world of work

1. EMPLOYMENT MATTERS A lunchtime seminar series aboutemployment relations andthe world of work http://www.dti.gov.uk/er/emar/events.htm

2. High-Level Employee Involvement at Delta Air Lines Bruce E. Kaufman Andrew Young School of Policy Studies Georgia State University Atlanta GAThe British AcademyLondon, 10 March 2004

3. Employee Involvement:Not a New Idea When the Workmen Help You Manage 1919, William Basset 1920s: Shops Councils and Employee Representation Plans

4. Different Types of EI • Financial • Direct vs. Indirect (Participation vs. Representation) • Low Level (Shop floor teams, quality circles) • High Level (plant councils, board of directors group) • High Level: about 7% of companies doing EI

5. Key Features of EI • Scope (Narrow vs. Broad) • Access to Management (Low vs. High) • Power/Influence • Information • Informal vs. Formal

6. Delta Air Lines: the 1980s • A “top 100” employer • A classic “high road” nonunion firm • Enlightened Paternalism and Velvet Glove Command/Control • Very high employee loyalty

7. Delta Air Lines: the 1990s • Intensified competition, turbulent markets, global expansion • New management team • Paternalism is out, business partnering is in • EI adopted at first for non-strategic reasons • Has grown into a central part of the business model • Probably the most formal, advanced EI program in USA

8. Delta EI Program: Structure Top-Level: Delta Board Council • Seven employees, each representing a business division • Peer selected, two years terms • Attend BOD meetings, meet with CEO, CFO and EVPs • Base visits around the world • Project assignments • Preview employee sensitive communications/policies

9. EI Program contd. Middle-Level: Five Division Employee Councils • Flight Attendant Forum • Technical Operations Council • Airport Customer Service Forum • Cargo Partnership council • Reservations Sales council • Employee elected representatives • Deal with all issues affecting that division

10. EI Program contd. Lower-Level: Base councils • Elected representatives • Handle base level issues • Form Continuous Improvement Teams

11. Costs • Employee/Management Time • Slower/Constrained Decision Making • Higher Labor Cost • Unintended Collective Bargaining • Long-Run/Uncertain Pay-Off • Backfire Effect

12. Benefits • Energize the Employees • Organizational Alignment/Coordination • Production Efficiency/Quality • Communication/Information Flow • Organizational Change • Management/Employee Development • Employee Relations

13. Lessons Learned • Not for Everyone • Impact the Bottom Line • Core Part of the Business • Long-Run Focus • Trust and Mutual Gain • Distributive items Off the Table • Empowerment and Problem-Solving

14. Lessons Learned – cont. • Management Commitment • Early Bumps • Training • External Pressure • Cooperative Employee Relations vs. Union Avoidance

15. DISCUSSION

16. EMPLOYMENT MATTERS A lunchtime seminar series aboutemployment relations andthe world of work http://www.dti.gov.uk/er/emar/events.htm