Really fascinating article on the Future of HR, as told by some experts in the field. Focuses more on the American idea of HR, but I think the ideas about increased use of social networking and telecommuting is key. The other bit that struck me was the idea that there won't be too much international travel later on, as there won't really be much need. That disappoints me, and there I hope they're wrong.
According to a recent article in Macleans magazine, a Canadian news mag for those unfamiliar, the Canadian government has agreed to a small bailout of the auto industry. These failures have largely been blamed on the unionized work environment, especially due to the fact that the non-unionized Japanese auto makers are doing fine financially. But what is the HR perspective on this? Are unions to blame? Is this the fault of incompetent Labour Relations negotiators?
No, I don't think so.
Some facts I pulled from the Macleans article:
- the average Canadian auto worker makes $35 an hour, $72k a year, plus benefits
- the average Canadian manufacturing worker makes $20.75 an hour, $41k a year
- The National Post blamed HRM specifically
- Toyota and Honda pay their workers about $2.50 an hour less, which works out to about $5 000 a year less
- the largest drain on Canadian auto manufacturers is legacy payments to former workers
HR's responsibility falls into three main areas here; compensation, pension/benefits and working conditions, all of which can affect an organization's financial viability. In terms of compensation it's clear that the Big Three do pay more, which is likely due to union bargaining, but not outrageously so. So I have trouble seeing this as the reasoning behind it from an HR perspective. As for benefits, even the USW admits Honda's benefits are pretty good, so it seems like they're quite comparable. And in terms of working conditions, let's assume no one has any gold plated microwaves of Italian leather couches in the break rooms.
The real cost to the Big Three is legacy payments. They've been here for decades, been making cars for decades, and promising workers indexed pensions for decades. These payments are the biggest drain on the coffers, and something Honda and Toyota do not have to deal with yet. I think this is how these companies are getting into trouble.
So is there any real long term solution to this? Not really. You can reduce new pensions, but then you'll have trouble attracting the best workers. You can't outlaw unions but then you'll have court challenges, and, as Honda and Toyota have shown, that's no guarantee there will be a marked difference in wages.
There are two avenues to explore, though; innovation and morale. Innovation is often mentioned as why the Big Three haven't prospered, and maybe there's something to look at there. My experience with this sort of thing is limited, however, so that may not make a big difference. The other thing I would look at from an HR perspective is to make sure every worker is using their full potential. I've heard tales of auto workers for whom their entire job is to press a button, all day long, on an automated system. How does this affect wages and productivity? Is there no other job this person could be doing? I think this is where the auto makers need to be looking into. Are we using everyone to their full potential? What else could they be doing?
I'll admit my personal experience with unions and labour relations is somewhat lacking, so if anyone knows any different, please let me know, I'd welcome other opinions or constructive criticism. But I hope I've given you some things to think about.
Hello dear reader. My name's Tom, and I'm from HR. Or, rather, I work in HR.
I used this blog over a year ago as a personal one, but I'm revamping it as a professional one; hence a few tidbits of things floating around, but nothing too incriminating. I will be using this as an exercise in discussion and research on issues surrounding Human Resources Management. It's a broad field, with a lot of pertinent issues coming up, and I think it's time someone starting talking about them. Maybe in a way that is not boring or 100% politically correct.
Okay, well, I'll probably still be politically correct. What can I say? I'm Canadian.
Later today I'm going to have a post about interviewing coming up. We're doing some of this at work, and a few things have come to mind that I wanted to share.
So, that's my introductory post. I welcome any comments or constructive criticism you may have. Unconstructive criticism can be directed elsewhere!
