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MGT 516
Union Organizing
TUI University
By
David L. Gobber
Union Organizing 2
INTRODUCTION
The purpose of this assignment is to address – overall the role of labor unions in helping
to shape the industry and current conditions – and how unionization has impacted this industry or
business category overall; specifically, has this industry trend affected the organization’s
business? The second question to address is how much might proposed union-related legislation
What is a “best practice?” As explained, a "best" practice complies with the law. The
following list of “best” in practice explains what is meant for companies and the law and notes
that they can be interrelated (Best Practices of Private Sector Employers, 2001).
As demonstrated by the above “Best Practices,” Intel Corporation, in the same industry
as Microsoft, has met several of the best practices methods (Best Practices of Private Sector
Employers, 2001). Intel Corporation (Intel) designs, manufactures, and markets microcomputer
components. It is the world's largest computer chip maker and also a leading manufacturer of
Clara, CA, and employs approximately 48,500 persons. Manufacturing, sales, and service
facilities are located in at least twenty-one countries. Voluntary mentoring program encourages
pairing of mentors and partners from different departments; requires negotiation and
implementation of an agreement between the partner, the partner's direct manager, and the
mentor; and includes a program and development plan. Employees discuss career development
Union Organizing 3
plans with their managers throughout the company. Most sites have employee resource centers
that deliver information, training, resources, and tools for continuous learning and optimum job
performance. Training is delivered through Intel University and specialized functional training
programs. There is tuition reimbursement for degree programs (Best Practices of Private Sector
Employers, 2001).
For example, Intel was identified in the categories of “Best Practices” Presented by
Companies in Promotion and Career Advancement and “Best Practices” Presented by Companies
in Terms and Conditions of Employment. Specifically, Intel announces all open positions except
some at the most senior level and they have partnered with selected schools and universities to
promote the company as career choice, and in the U.S., focuses special attention on the
redeploying employees from areas of declining business value to areas of increasing business
redeployment proposal with Human Resources; in defining job alternatives; in networking; and
write a transfer review, and to communicate actions, processes, and resources. A Business Unit
Redeployment Manager is provided to work with the employee in launching the job development
search, and to provide employee counseling. Intel’s Company's Open Door Program is staffed by
Senior Specialists, who are accessible to all employees, and are highly-trained, impartial fact
finders, who look at all sides of concerned issues. The specialist meets with employee to discuss
employee's concerns and issues; conducts a confidential investigation; analyzes all information
with an eye toward compliance with company guidelines, Corporate Business Principles, general
fairness, and the law; makes recommendations to employee and management chain about how to
Union Organizing 4
best resolve the issues; helps find workable solutions; and gives information about the issues
only to those individuals with a "need to know." The employee is not penalized for participation.
Moreover, goals, not quotas, are flexible, are set by job groups, and require good faith efforts of
managers. In meeting the goals, candidates are selected from among the best qualified, in a way
that ensures that the best people possible are being hired (Best Practices of Private Sector
Employers, 2001).
At IBM, another high technology industry, employees are encouraged to come forward
and talk to their manager at any time they have experienced harassment. Communication
channels, such as Open Door, Panel Review, and Speak Up Programs exist to help employees
address their situations. Has thirty-one diversity councils around the world; and also holds
diversity town meetings. IBM has community service assignments and career programs, and
many volunteer IBM-ers in the community representing the organization. Moreover, goals, not
quotas, are flexible, are set by job groups, and require good faith efforts of managers. In meeting
the goals, candidates are selected from among the best qualified, in a way that ensures that the
best people possible are being hired. They provide purchasing and marketing opportunities to
minority-, women-, and disabled-owned companies; and have long-standing relationships with
United Negro College Fund. The company has determined that it is in its best business interest to
have a workforce that looks like, understands, and appreciates its diverse customers, and can
produce products that are needed by diverse clients. Its workforce diversity program is built on
Equal Opportunity, Affirmative Action, and Work-Life Programs, which work to eliminate
disadvantages, not to give anyone an advantage; and to help create an atmosphere conducive to
the highest quality work in a workplace where all people feel comfortable and productive (Best
Motorola – also in the technology industry - uses internal recruiters and external search
firms, and both are required to present diverse candidate pools. The CEO and the President led
efforts to break the Glass Ceiling for women and minorities. As a result, the number of women
and minorities has increased. Planning has been an instrument of major significance in
identifying talented employees for leadership positions in the future. At least forty hours per year
training for each employee has been mandated. Motorola recruits at minority universities;
provides Hampton University's engineering department with money, equipment, faculty training
and the summer assignment of faculty to work at the company. They also support the television
broadcasts of two Engineer of the Year programs (Black, Hispanic). And, the company’s
internship program includes the Minority Scholarship Internship Investment Program (MSIIP),
offering summer internships to sophomores and juniors in engineering and finance. Each
business sector or group creates its own diversity program, so each is designed differently.
Minority students are aided through the company's various partnerships with the Chicago public
school system; and African American women employees volunteer in the Sojourner Program,
which provides mentors for hundreds of "at risk" African American women in the Chicago area
Xerox, the last example in this industry, prides itself on promoting from within its own
ranks; but if a specific set of skills are not found in the internal candidate pool, recruiting firms
are engaged to provide candidates with such skills, and a diverse candidate pool is requested in
each case. Upward mobility for women and minorities is integrated into the Management
Each of the twenty-five organizations reviews its organization, lists women and minorities at
middle management level and above in that organization, and makes recommendations for their
Union Organizing 6
next potential career move. These assessments are next reviewed by the Presidents of the major
Xerox organizations; and those inputs are subsequently reviewed by the corporate office to
determine bench strength for key executive positions. When the company must reduce its ranks,
it tries to avoid unnecessary impact on minorities and women. They have a Diversity Program
and a Minority/Female Vendor Program, where Xerox purchases products, supplies and services
from qualified minority-owned and women-owned businesses. The company indicates that it is
an equal opportunity employer committed in policy and practice to recruit, hire, train, and
promote, in all job classifications, without regard to race, color, religion, sex, age, national
origin, citizenship status, marital status, sexual orientation or status as a veteran of the Vietnam
era. Xerox also prohibits discrimination against persons because of their disability, including
disabled veterans; and does not practice nor tolerate harassment of or retaliation against any
employee or applicant on the basis of these characteristics, or because the individual exercised
his or her EEO rights. Lastly, Xerox views diversity as something more than a moral imperative
or a business necessity; the company sees it as a business opportunity to bring many diverse
backgrounds, fresh ideas, opinions, perspective, and creativity to the solving of real business
problems, and gives the company a competitive advantage (Best Practices of Private Sector
Employers, 2001).
These examples - Intel, IBM, Motorola, and Xerox – demonstrate that Microsoft is not
alone in its attempts to provide the right type of non-discrimination environment for its
They also establish a strong foundation on which to develop, identify, and communicate
the “best practices” in an industry. Their reputations, success, and survivability depend on these
Union Organizing 7
communities. These best practices, strong reputations for fairness to all employees are some of
the ways to avoid labor unions’ successful organizing and impinging on a major corporation’s
In 2006, Microsoft employees were growing more and more disillusioned with
“stagnating salaries and an increasingly contentious review system that they say was unfair,” that
led to more defections by senior engineers and growing dissatisfaction among rank-and-file
workers. The publication affiliated with the Washington Alliance of Technology Workers, a labor
union affiliated with the AFL-CIO has tried to organize Microsoft workers in the past. At issue is
the company's performance review system. Some workers complained that the review process
had become tainted, rewarding workers based on office politics rather than performance.
(Microsoft's labor troubles, 2006) Obviously, this is one type of frustrated workplace
based technology labor union said Microsoft's employee compensation wasn't keeping up with
the rise in the cost of living, citing what it described as previously confidential company
documents. The Washington Alliance of Technology Workers, which hoped to unionize the
Microsoft work force, said it planned to release data from two documents delivered anonymously
In 2005, the same labor union complained that Microsoft was outsourcing jobs to India at
the expense of U.S. workers in Washington (Microsoft outsourcing high-end jobs, union says,
2004). When companies don’t listen to their workers, they will resort to other means, even techie
At Intel, for example, Oregon¹s largest tech employer, would "prefer to continue to
operate in a non-union environment," said Bill MacKenzie, spokesman for Intel Oregon. Intel
needs the "flexibility to move quickly, and respond to changing market conditions." Intel makes
widespread use of both the foreign worker H-1B visa program and its own offshore development
and manufacturing facilities in its efforts to maintain a strong bottom line. The company¹s
focused emphasis on cost controls through all facets of its operations pays off. However, workers
form unions, said MacKenzie, when ³they don¹t think they¹re being treated fairly, don¹t think
they¹re being communicated with, don¹t think a company is being consistent in its policies, and
don¹t think a company is responsive to their concerns. Although I don¹t think any of these apply
to Intel, some workers at Intel disagree. Intel demands long hours and supervisors do not shrink
from telling workers that if they fail to come up to scratch, their jobs could be filled by workers
in other parts of the world. Intel has brought in employees from places like Malaysia to be
trained by local workers. Once enough training has taken place, functions are moved offshore to
be performed at lower cost, and local workers are laid off. The traditionally strong emphasis on
productivity at Intel is increasing, "It¹s a highly competitive marketplace. We need to hold and
grow our market position (Earnshaw, 2003)." Local software company Merant has a slightly
different take on the infant tech union movement. "It¹s a wake-up call for corporations," said
Diane Williams, vice president of human resources. Labor unions were formed in the early 20th
century, she said, "because of the conditions of the workers. If employers are not open to
listening to workers, protecting their interests and working with them, they¹ll resort to outside
means" to protect their interests (Earnshaw, 2003). These attitudes and potential actions have
plagued both the Microsoft and Intel companies, as well as other “best practices” companies,
throughout the past ten years. Presently, however, they remain union-free.
Union Organizing 9
unionization of their employees. In fact, they are doing everything they can to promote lower
wages and less job security at their companies, the very two major benefits that unions seek for
workers. With considerable market power and a labor force resistant to unions, everything is in
Microsoft’s favor for continuing its endeavor for cheap, dispensable labor.
Microsoft Chairman Bill Gates is one of the leading supporters in the fight for infinite H-
1B guest worker visas (Broache, 2007). At a Congressional hearing in March, 2008, Gates said
there is only one way to solve a crisis-level shortage of qualified scientific talent in the United
States, "Open our doors to highly talented scientists and engineers who want to live, work and
pay taxes here (cited in Broache, 2007)." The true motivation in Microsoft’s endorsement of the
H-1B guest workers lies in its desire to bring in foreign workers at lower pay rates than it can
At the same time, Microsoft is courting the importation of labor to reduce costs, it is a
strong advocate of outsourcing to achieve the same objective. Various outsourcing presentations
by Microsoft senior executives make it clear that the company just wants “cheap” labor as
evidenced by statements such as “quality work at 50-60% of the cost,” “2 heads for the price of
one,” and “leverage the Indian economy’s lower cost structure (Microsoft’s Indian outsourcing
documents).” Increasingly, it is obvious that Microsoft’s outsourcing is not just for noncritical
work as it has publicly claimed. Leaked documents reveal that the company is outsourcing to
living in this country across many of its positions (Bishop, 2006). Minimum, midpoint and
maximum compensation guidelines at Microsoft remained unchanged between 2004 and 2007
Union Organizing 10
for eight of its twenty-one salary categories, at the lowest end of the pay scale. In other
categories, many of the increases have been below three percent. In the Seattle area, where
Microsoft has a large presence, salaries fell by about two percent during this time (Bishop,
Microsoft has tremendous advantages in preventing unionization with little help on site
for its employees. In its fight for H-1B visas, all it has to do is threaten to ship the work overseas
if it doesn’t get its way. The only real constraint on outsourcing is the availability of skilled
labor overseas. However, the advantage Microsoft has is the reluctance of high-tech workers
outsourcing and layoffs has intimidated many workers. Still, high-tech workers have long
associated unions with blue-collar workers. And, high-tech workers tend to change jobs more
frequently, meaning that job security may not be as important as it is in other industries. On the
other hand, in today’s downturned economy, workers at all levels are not changing job position.
In the long-term, job scarcity may lead to large enough dissatisfaction to finally persuade high-
tech workers that unionization is in their best interests (Bishop, Microsoft outsourcing high-end
Microsoft’s objective is inexpensive labor that it can use on an as-needed basis. Presently, it has
the market power to achieve its aims and a domestic labor force resistant to unions. These forces
at work are not likely to change for some time. Perhaps high-tech workers will eventually
realize that they need the protection of unions to continue to make a good living and to protect
their jobs, but there are few signs of encouragement at this time.
Union Organizing 11
The Microsoft Web site states, “Our mission is to enable people and businesses
throughout the world to realize their full potential. Achieving this requires great people who are
bright, creative, and energetic, and who possess the following values:
As a global industry leader and corporate citizen, Microsoft continues the effort to
understand, value, and incorporate differences by stating, “We work hard to enable talent, satisfy
customers, and lead technology innovation globally” (Microsoft Diversity and Inclusion, 2010).
Microsoft offers quality of life experiences to their employees, customers, associates, and
stakeholders.
PROPOSED LEGISLATION
negatively affects Microsoft or other companies in the high technology industry? The timely
discussion about the Bush-tax reductions being continued may or may not affect the high
technology industry. It will depend on how high or low the taxes will be proposed and for how
long a time period, if not permanent. This legislation, among others on the table related to the
economy will impact all industries. The legislation affects the potential for hiring skilled workers
in technology and how they might be paid. Although not directly union-related, the legislation
that is being debated will affect worker’s satisfaction levels with pay, pay increases, and taxes. If
taxes are increased, then workers may be more disillusioned and dissatisfied and seek union-
related information.
Union Organizing 12
While major companies are being offered inducements through the hiring incentives and
tax reductions for companies, workers do not see any specific benefits coming their way and that
could also negatively impact their satisfaction with the jobs that they are not able to leave.
CONCLUSION
work environment - in all areas of their organization whether in the U.S.A. or in another country
in one of Microsoft’s Operational Centers or in one of their subsidiaries. While there is always
work to be done in every organization, Microsoft currently is a strong positive example for other
global entities. While their attempts to resist unionization have been successful - and may
conflict with their stated mission at times by subtle threats - they do offer an excellent work
REFERENCES
Best Practices of Private Sector Employers. (2001, May 25). Retrieved December 5, 2010, from
The U.S. Equal Employment Opportunity Commission :
http://www.eeoc.gov/task/practice.html
Microsoft outsourcing high-end jobs, union says. (2004, June 16). Retrieved December 5, 2010,
from Seattle PI Business: http://www.seattlepi.com/business/178021_msftindia09.html
Microsoft Diversity and Inclusion. (2010). Retrieved November 4, 2010, from Microsoft:
http://www.microsoft.com/about/diversity/en/us/default.aspx
Bishop, T. (2004, June 6). Microsoft outsourcing high-end jobs, union says. Retrieved December
5, 2010, from Seattle Post-Intelligencer:
http://seattlepi.nwsource.com/business/178021_msftindia09.html
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from Seattle Post-Intelligencer:
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5, 2010, from CNET News : http://news.com.com/Gates+calls+for+infinite+H-1Bs
%2C+better+schools/2100-1014_3-6165166.html?tag=st.num
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