Human Resource Case Study: RiverCity Electronic Manufacturing Company

This case study examines RiverCity Electronic Manufacturing, focusing on the company's labor relations and the challenges arising from employee dissatisfaction and unionization efforts. The company faces issues related to organizational politics, favoritism, and a lack of transparent communication, leading to a decline in workplace morale and the desire of employees to join the International Metalworkers Union. The management attempts to restrict the union's formation through various strategies, including requiring a high percentage of employee signatures on the petition and gathering information from union members. The study highlights the importance of addressing employee concerns, implementing fair practices, and fostering a positive workplace environment. It suggests solutions such as establishing trade unions, implementing employee welfare programs, and ensuring transparent communication channels to improve employee satisfaction and reduce labor disputes. The case emphasizes the need for management to prioritize employee well-being and career development to create a more harmonious and productive work environment.

Running head: CASE STUDY OF RIVERCITY ELECTRONIC MANUFACTURING COMPANY
CASE STUDY OF RIVERCITY
ELECTRONIC MANUFACTURING COMPANY
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1CASE STUDY OF RIVERCITY ELECTRONIC MANUFACTURING COMPANY
Facts of Case
The president of the company as per the notice, wants to conduct the election in 30
days where the it is to be determined whether the employees will be represented by the
International Metal workers union or not. This is a case study of human labor industrial
relations relating to trade union and dispute issue. The River city workers are hugely involved
in the trade union management. The various events of automobile agreement sign due to
turbulent labor management problems by the other workers to join union and the expansion
of union members to 500 made the management estimated previously that union leadership
by the workers would never have been possible in a company where benefits, compensation
are on average level of satisfying the worker’s motivation and the benefits they derive in the
form of compensation, retirement plan, health benefit plan and the not so tiring working
hours. However, when situations started worsening over the years with low workplaces
values and the politics of interpersonal among the team managers and the division of
departments with favoritism of benefits, the union membership began to rise.
Strategy of Firm
The firm was sure that the petition notice cannot be signed by much quantity of the
labor in the company. They arranged security with data protection for the election and
distribution of the cards. They sent all the letters to the employees from the operational to
middle level management employees. The firm does not want the election and the union to
form, therefore the runoff of the names of member of union have been recognized during the
process and through biasness, the top management decided a strategy to restrict the election
process. The top management people along with the suggestion of Attorney decided to pass a
notice to the labor that the workers have to get 30% above signs into the petition in order to
receive the membership to the union. The management was very sure that they will not be
able to make it. There was a very high belief that the workers will lose the chance for
membership to the union as there are every small workers engaged in the union activity,
therefore much of the workers and the white collar employees will not be involved due to the
adequate compensation with benefits provided by the company to them. The minor portion is
on the union which make the management strike a biased move towards the workers. They
appointed an employee to look for rumors and gather secret information from the union
members in order to prepare grounds for them to lose in the final election.

2CASE STUDY OF RIVERCITY ELECTRONIC MANUFACTURING COMPANY
Problems
The main problem lie here is the organizational politics and the resistance of
management to support and engage in welfare programs for the workers. However, the real
reason of joining the union for workers was different. The different and varying practices of
communication patterns with favoritism and biasness towards the workers from management
led into the election and joining of union by the workers in order to have their own group
while making negotiations in the discussion forum with the top management as per Porter
et.al, (2017). Although the compensation was adequate, but it made the blue-collar employees
join the union and the white-collar employees to leave and join other organizations. The
workers along with the white collar employees in the sub-assembly and warehousing
departments were keen in joining the union due to the unfair and deteriorating workplace
environment. Although the benefits and the holidays with working time is adequate, but the
workplace culture with moral values and the degrading communication channel with politics
and corrupted promotion policy made the employees join the union to seek justice for their
rights. All the divisions have been functioning with different policies and the benefits were
different. The succession ladder of the company is bit biased with promotion not done on
justified basis in the sub-assembly and warehousing divisions. Although the white collar
employees started getting deprived of their workplace motivational factors, the blue-collar
workers on the manufacturing level have to face dire problems related to benefits, loss of
recognition, automation and mechanization issues with loss of labor.

3CASE STUDY OF RIVERCITY ELECTRONIC MANUFACTURING COMPANY
Discussion of Solutions
There should be formulation of trade union in the company with more than 30% of
membership rights. The company in order to not have the trade union functioning can provide
the necessary benefits with programs for the employee welfare but having a trade union of
workers will make the voices and the demands of the workers come in front of the
negotiating table for joint discussion (Crouch, 2017). The membership of union members will
not bring dispute until and unless the top management do not meet their demands and give
them justice treatment. The trade union is necessary to make the workers gain an ownership
right in the joint discussion along with the prioritization of their concerns which is often
reported to go unheard by the top management (Hassel & Schroeder, 2019). The non-
transparent communication channel of the company with less regard for workers and politics
will have to make way for the trade union to operate.
Another solution should be a proper employee welfare programs conducted both for
career development and for the removal of favoritism. The succession ladder should be
focused towards the growth of the career of employee in the company as per the potential and
abilities rather than rating biased performance appraisal. The concerns and the issues faced by
the employees and workers at the manufacturing level should not always be addressed by the
union, the top management should also invest attention and due consideration to the problems
of labor in the organization.

4CASE STUDY OF RIVERCITY ELECTRONIC MANUFACTURING COMPANY
References
Crouch, C. (2017). Membership density and trade union power. Transfer: European Review
of Labour and Research, 23(1), 47-61.
Dreyfuss, C. (2017). Prestige grading: A mechanism of control. In Organizational Careers
(pp. 145-149). Routledge.
Hassel, A., & Schroeder, W. (2019, August). Trade Union Membership Policy: the Key to
Stronger Social Partnership. In Industrial Relations in Germany (pp. 73-94). Nomos
Verlagsgesellschaft mbH & Co. KG.