Employee Labor Relations: Analyzing FedEx's Labor Issues

Verified

Added on  2019/09/30

|3
|366
|246
Report
AI Summary
This report analyzes the labor relations case at FedEx, highlighting the conflicts arising from performance appraisals and workforce reduction strategies. The management's initial plan to eliminate non-performing employees led to significant unrest and resistance from the workforce, particularly due to existing retention policies and concerns about unfair treatment. The report details the role of the labor union in negotiations and the eventual adoption of voluntary retirement packages as a solution. The analysis covers the impact of the company's policies, the challenges faced by both management and employees, and the steps taken to resolve the conflict. The report references relevant literature to support its findings, providing a comprehensive overview of the case and its implications for employee relations.
Document Page
Employee labor relations
Employee labor relations Discussions Question
Student Name
Student ID
University Name
20
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Employee labor relations
Answer
In the recent case of FedEx, there was a brewing conflict due to the ongoing
performance appraisal. In here, the management had a strategy to reduce the workforce by
eliminating few nonperforming employees. Initially, it leads to a big controversy, as the large
part of the workforce was old, loyal and were also secured on account of the company
retention policy (Thompson, 2018).
This resulted in a lot of conflicts, issues and even caused a disruption within the
workplace. It was evident that the latest policy of the performance appraisal was a step to
retain the high performing employees, but at the same time was causing an insecurity element
for the nonperforming employees. Due to this step, it resulted in the violation, non- abidance
and even barriers to accept such plans. It was also perceived by the workforce that
management would try to mold the policies and save employees who deemed as favorite
instead of considering the performance. There would be an unethical step & total misuse of
the policies. Firing & appraising were the two main agendas of the policies imposed by the
management. Due to the job insecurity, it resulted in unrest and violated actions been taken
by the workforce. Soon the tabloid was set for the bargaining and the negotiation power
between the labor union and the management, It was ascertained how to deal with the
conflicts and step in to negotiate it. After brief negotiations, it was considered as an option to
introduce voluntary retirement packages instead of firing staff. Instead of terminating their
employment, the management came up with the VRS scheme, which allowed three months of
advanced payment to resolve the matter.
21
Document Page
Employee labor relations
References
Thompson, C., Barrett, J. T., & O’Dowd, J. (2018). Collaborative Workplace Option:
Interest-Based Bargaining, Consultation And Problem-Solving: A Guide For Parties And
Practitioners. Siber Ink.
22
chevron_up_icon
1 out of 3
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]