Organized Labor: History and Importance

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In 1900, only 3 percent of the labor force of the United States belonged to unions, but the percentage grew to 23 percent by the end of World War II. A decline began in the early 1960s and by 1991, the percentage had dropped to 16.1 percent (U.S. Bureau of the Census, 1992f. p.422). (Organized Labor). Many years ago, on August 17, 1942, there was an agreement on cooperation which was agreed upon by the National Congress of Industrial Organizations (CIO) Committee for American and Allied War Relief, the United Nations Relief Committee of the American Federation of Labor (AFL) and the Community Chests and Councils, Inc. (now United Way of America). This agreement spurred labor representation on Community Chests boards and councils as well as recognized the valuable contributions of the union members. Thus, this agreement was instrumental in getting the cooperation of the employees and even organized the employers and union representatives who emphasized the contributions of the members without any show of force. It was essential that there was a communication of a strategic plan within a company which is important in stimulating positive employee response. Thus, the employees feel that they are part of a “more professional organization.” Their management has identified where it wishes to go and made the necessary commitment to get there. Therefore, effectively communicating the strategic plan improves employee motivation and members are united in their actions (Thompson,1987).

Companies with active unions need to create alternative growth strategies in relation to their competitors, market opportunities, and resources of the organization. Their operation merely concentrated on the opportunities and strength of being the top brand in their field.

The successes of labor have been clear in some states such as in Iowa where Governor states that labor has been successful and America can now compete worldwide. Indeed, labor still has a big influence on people in the workplace (Iowa governor defends contributions of organized labor).

Teamwork in a union can help boost the employees’ morale despite the business situation. Seeking employees’ ideas, keeping them informed, expressing personal interest, instilling pride in words, providing effective supervision are just some factors that can contribute well to employee’s motivation in unions. To effectively motivate them, an effective incentive scheme is necessary. Recognition is important, whether expressed thru monetary or non-monetary rewards. But the monetary reward will always be vital because good pay is essential to employees’ satisfaction and must be given priority. For instance, in the company of Levi’s, workers should not feel that they are underpaid. A bonus plan must be created to provide extra compensation to boost the morale of the staff. Profit-sharing is also a monetary incentive to encourage employees to be more creative and think of ways to increase their sales and reduce expenses.

Non-monetary recognition may include plaques of appreciation, the announcement of special accomplishments, or promotion. Social relaxation in between busy working hours can improve employees’ sense of belongingness. Recreation programs can also be adopted as a way of developing good working relationships among them. Establishing a reasonable work production standard is one way of solving the ambition falls of workers. Living up to the set standards will bring a sense of achievement to the staff. In addition, better placement, better working environment, self-achievement, and self-esteem add up to employee motivation. These are just practical employee management and motivation suggestions for Levi’s which could help strengthen the company’s decline (King, 1998),

Reports said that Levi’s profit has improved this year due to layoffs, closure of plants, and other cost-cutting measures proven to be effective. The retrenchment done was proved to be a useful strategic tool only that it did not prove to be beneficial to workforce management. The need to move jeans production off-shore was inevitable for Levi’s to avert the problem of increasing labor costs. Such a move will help them continue their business without having to spend so much on labor because off-shore production means a cheap labor cost. This cost-cutting technique will be beneficial to a declining company like Levi’s (King, 1998).

Reclaiming a losing business is virtually impossible. Competitive threats must be blocked by developing a strategic planning scheme and enhanced managerial and leadership skills. Companies like Levi Strauss should keep in touch with the pulse of the labor unions and their relation to the Marketplace, Market Penetration, Market Development, and Product Development. The strategic plan should include the stimulation of positive employee responses to the changes that may take place in the company. They should make the employees feel that they are part of the organization. Evaluation of alternative strategies will provide a framework for better preparation for unexpected events that may either make or break the company and its people. (King, 1998).

Since team working has been implemented to keep the business, Levi’s can devise a motivation scheme to keep its employees’ morale high despite the business situation. Seeking employees’ ideas, keeping them informed, expressing personal interest, instilling pride in words, providing effective supervision are just some factors that can contribute well to employee motivation. To effectively motivate them, an effective incentive scheme is necessary. Recognition is important, whether expressed thru monetary or non-monetary rewards. But the monetary reward will always be vital because good pay is essential to employees’ satisfaction and must be given priority. Levi’s workers should not feel that they are underpaid. A bonus plan must be created to provide extra compensation to boost the morale of the staff. Profit-sharing is also a monetary incentive to encourage employees to be more creative and think of ways to increase their sales and reduce expenses. Non-monetary recognition may include plaques of appreciation, the announcement of special accomplishments, or promotion. Social relaxation in between busy working hours can improve employees’ sense of belongingness. Recreation programs can also be adopted as a way of developing good working relationships among them. Establishing a reasonable work production standard is one way of solving the ambition falls of workers. Living up to the set standards will bring a sense of achievement to the staff. In addition, better placement, better working environment, self-achievement, and self-esteem add up to employee motivation. These are just practical employee management and motivation suggestions for Levi’s which could help strengthen the company’s decline.

Works Cited

AFL-CIO Community Services. 2008. Web.

Iowa governor defends contributions of organized labor. Web.

King R.T. Jr. (1998), “Jeans Therapy” The Wall Street Journal Clearance Centre, INC.

Dow Jones and Company, Inc… 2008. Web.

Organized Labor. 2008. Web.

Thompson, A., Jr., and A. J. Strickland (III). (1987). “Strategic Management: Concepts and Cases,” Piano, Texas: Business Publications, Inc p 98).

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Organized Labor: History and Importance

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