Employment Matters: A Lunchtime Seminar Series About Employment Relations and The World of Work

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

http://www.dti.gov.uk/er/emar/events.htm
 
 
High-Level Employee Involvement
at Delta Air Lines

Bruce E. Kaufman
Andrew Young School of Policy Studies
Georgia State University
Atlanta GA

The British Academy


London, 10 March 2004
Employee Involvement:
Not a New Idea

When the Workmen Help You Manage


1919, William Basset

1920s: Shops Councils and Employee


Representation Plans
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
Key Features of EI
 Scope (Narrow vs. Broad)
 Access to Management (Low vs. High)
 Power/Influence
 Information
 Informal vs. Formal
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
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
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
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
EI Program contd.
Lower-Level: Base councils
• Elected representatives
• Handle base level issues
• Form Continuous Improvement Teams
Costs
 Employee/Management Time
 Slower/Constrained Decision Making
 Higher Labor Cost
 Unintended Collective Bargaining
 Long-Run/Uncertain Pay-Off
 Backfire Effect
Benefits
 Energize the Employees
 Organizational Alignment/Coordination
 Production Efficiency/Quality
 Communication/Information Flow
 Organizational Change
 Management/Employee Development
 Employee Relations
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
Lessons Learned – cont.
 Management Commitment
 Early Bumps
 Training
 External Pressure
 Cooperative Employee Relations vs. Union
Avoidance
 

DISCUSSION 
 
 

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

http://www.dti.gov.uk/er/emar/events.htm
 
 

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