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Employee and labor relations form a very important part of today’s corporate practices and culture. Companies across the globe strive to create, manage and sustain a healthy labor relations policy and environment. Healthy labor relations encourage employees to become more productive and therefore improve a nation’s economy, besides helping the growth of the organization. The purpose of this study is to review three key employee benefit programs launched by U.S. based companies. We will review UPS Education program, Workplace Health and Wellness program from Johnson & Johnson and the latest Breast Milk Delivery program by Twitter. Using internet research and the company literature, the review evaluates the kind of policies that have been implemented and their successes. The study presents aspects of company vision and the way in which these have positively impacted the development of effective labor relations frameworks and policies.
Many countries have promulgated labor laws to maintain balance and proper functioning of the labor market. Around 16 million workers in the U.S. were covered by labor relations law in the year 2013 (MacIntyre and Lammam, 2014). According to Collinson Grant (n.d.), ‘employee relations’ is the totality of the relationship between an employer and its employees.
This engagement between employers and employees is carried out in many different ways in organizations. It is mainly done through the formulation of policy – sometimes with consultation and feedback from employees – implementation of the policy through organized communication, engagement with unions, staff groups and groups of employees. Individual rules and guidelines which an employee needs to abide by, to efficiently conduct a job role in an organization, does not fall under the ambit of employee relations.
In today’s globalized world, labor relations and employee practices play a very important role in maintaining harmony. A report by A.T. Kearney (2014), details out the strategies for improving labor relations in a global world. Many countries have the labor and skills to produce goods at a lower cost. Such outsourcing has brought about an increased focus on labor laws in many developing countries and new laws have been implemented. The report urges global executives to relook at the labor and communication strategies to address labor policy globally. Global organizations therefore face the prospect of pressure from global unions – a strike across all countries can cripple any business operation. Added to this is the phenomenon of fragmentation of unions. Organizations may also have to deal with smaller unions in countries individually. This demands that executives understand the unique characteristics of geography, employee culture and labor laws. Also, use of email and other social media have enabled employees across the globe to stay in touch. This can be beneficial, in terms of new collaboration and learning; or detrimental, since a dispute in one country can easily spread to other regions. It is therefore becoming more critical for organizations to adopt a labor relations policy that is flexible, has global relevance, is proactive, is collaborative and communicates effectively. In addition, organizations should look at periodical risk assessments to gauge the state of the relationship. Organizations that do these things well are often rewarded – by enhanced employee productivity, loyalty and awards for best practices.
UPS is very sensitive to the needs of its part time and full time employees. The company is keenly aware that many of their senior leaders were once part time workers. The program is strategically aligned to the needs of the employees. Many people need to work part time and study at the same time to further their career goals. UPS has devised this program, targeting the key segment of the population. It helps them build bonds with the part time student workers early on and then offer them full time jobs, once they are ready. The company therefore maintains a steady pipeline of labor, even in developed countries like USA and in countries of Europe, where labor costs are high and loyalty is a key factor.
The UPS Tuition Reimbursement Program builds the perception that the company cares for the future of its employees. It acts as a partner in the growth for the employees’ career. It gives students an opportunity to earn and learn, at a stage in life where they need support. Many of the roles in the company are managed by interns. The company offers roles in marketing, operations, human resources, finance, supply chain solutions and so on. The program allows for bright and talented individuals to start contributing to the company and their career from day one. It is a mutually beneficial program where the company and the students benefit. UPS believes in building the right teams across the company divisions and provides the chance to play a key role in the business. Part time workers are trained to become full time workers and leaders in future. The results have been very good. Since the company takes care of employee’s career and earning, many part time workers choose to continue with the company and become full time employees, contributing effectively to the growth of UPS. Many of the part time employees have become life-long employees. More than 70% of the management team at UPS began their career as part-time employees, paid by the hour. UPS believes in investing in its people and acting as a key enabler for their career growth (UPS, 2016). According to Cappelli, (2000); UPS realized that drivers are the key to the delivery business. The Tuition Program is therefore strategically planned and implemented. Timely delivery is key to customer satisfaction and that is possible only with good delivery drivers. Although the turnover rates in such labor jobs are high, UPS has ensured that it can manage and run its business efficiently by using this program and training methods, increasing retention.
The company follows global labor and employment guidelines. Since the organization has global reach, it has strict compliance with laws and regulations which affect factors such as ethics, labor, employment, health and safety, product quality, environment and so on. The company also pursues a formal communication strategy with its employees world-wide.
Employees are not only encouraged to provide feedback on business issues but are also free to join any labor union or association as they deem fit. Care it taken that any support or opposition to such associations does not result in failure at the interview stage. Although the company permits the employees to have the right to unionize and bargain collectively, they are not permitted to engage in any form of forced labor activities. Another important policy is non-discrimination against employees for their views on ideology, race, religion, caste, color, creed, gender, sexual orientation, country, age, disability or any other human rights based protections offered by law. This is a very important aspect of the company’s global ER policy.
The employees are treated well even in cases of wrongful behavior. Company chooses to either counsel such employees or take disciplinary action if necessary, but any form of physical methods are not permitted. The company believes and enforces child labor laws in all its offices and subsidiaries. Employees are free to join and leave the company as they wish, with no force or pressure.
The Workplace Health Program is very successful and it combines the use of online tools to assist in employee health and safety. It also involves group health programs like discussions on diet, to help achieve high standards in employee health and work safety. In addition to these facilities, the company also provides employees with Health and Wellness centers on-site, with a fitness centre, personal training and exercise options. The company also developed the CEO Cancer Gold Standard to help cancer prevention for its employees and their families. The company uses many different chemical and pharmaceutical ingredients to manufacture its products. Some of these processes generate noise and are health hazards. To circumvent these issues, the company runs a toxicology program where data is measures and evaluated. Toxicology standards are then established to protect employees from risk. Johnson & Johnson follows the guidelines and regulations of organizations like the U.S. Occupational Health Administration and American Conference of Governmental Industrial Hygienists (ACGIH). Based on the results of the study, employees are provided with protection gear like gloves, gowns, breathing apparatus to remove risk.
The company has also introduced a Global Policy on HIV/AIDS. The company follows a policy of Preventing Workplace Accidents and Illnesses. The many aspects of safety programs include machine safety, electrical safety, contractor and warehouse safety, fall prevention, office safety and so on (Johnson and Johnson, 2016). More than 128,000 employees are able to work in very safe environments across the world. When computers were introduced, the company enhanced the focus on ergonomic injuries and safety.
The company also develops initiatives under the Workplace Health program, based on employee need. For instance, in 2011 it was found that 50% of employee injuries occurred due to tripping and falling. The company soon launched a communication campaign called StepRight to increase awareness and prevention of slips, trip and fall risks (Johnson and Johnson, 2016). Another aspect of safety is Fleet safety. This is done to protect employees from injury while on the road. Many education and awareness programs are held globally, reducing the rate of crashes per million miles (CPMM) driven by 34%. In view of its exemplary labor relations and HR practices, the company has won many awards and recognitions - the Robert W. Campbell Award for excellence in environmental, health and safety (EHS) management in 2005, Corporate Health Achievement Award (CHAA) and The Pennsylvania Governor’s Award for Safety in 2005. In 2015, the company has been named as one of the Best Companies for HR in The Workforce 100 list (Workforce, 2015).
Diversity talent is a key metric that most global companies measure themselves against. This initiative by Twitter is unique and unorthodox, but will go a long way in attracting women to the workforce and retaining them. Time will tell.
Conclusion. From the above review it is evident that labor relations are a key focus area at many new age and older organizations. In my view, companies need to have a very robust labor management and engagement strategy. People and their lives should be seen in totality instead of just being seen as work-focused.
Companies should have an organized structure, roles, teams and policies to monitor engagement and quality of relations, globally. Labor relations and their implementation have assumed importance especially in the new age of technology, automation and globalization.
Effective labor relations are a function of a formal, organized structure, core strategy, program development, communication and its global execution. Companies need to monitor and be flexible in implementing change as new markets, new regulations, new employee needs evolve over time.
References
A.T. Kearney. (2014). Shifting Labor Relations. ATKearney.com.
Retrieved from: https://www.atkearney.com/documents/10192/4677256/Shifting+Labor+Relations.pdf/c27fc38f-24b2-423e-9b9e-e9cb92477e1d.
Cappelli, P. (2000). A Market-Driven Approach to Retaining Talent. hbr.org. Retrieved from:
https://hbr.org/2000/01/a-market-driven-approach-to-retaining-talent
Collinson Grant. (n.d.). Employee Relations. collinsongranthr.com. Retrieved from:
https://www.collinsongranthr.com/employment-law/employee-relations.aspx
HRM America. (2015). Breast milk shipping latest perk at Twitter. hramerica.com.
Retrieved from: http://www.hrmamerica.com/hr-news/breast-milk-shipping-latest-perk-at-twitter-24512.aspx
Johnson and Johnson. (2016). About Johnson & Johnson. j&j.com. Retrieved from:
https://www.jnj.com/about-jnj/company-history.
Lev-Ram, M. (2015). Exclusive: Twitter’s new perk for working moms? Free breast milk
deliveries. fortune. Retrieved from: http://fortune.com/2015/09/01/exclusive-twitters-new-perk-for-working-moms-free-breast-milk-deliveries/
MacIntyre and Lammam. (2014). Labor Relations Laws in Canada and the United States. Fraser
relations-laws-in-canada-and-the-united-states-2014-rev.pdf.
UPS. (2016). Pay for School and Train for Success. ups.com. Retrieved from:
https://www.ups.com/content/us/en/bussol/browse/article/ups-pay-for-school-and-train-
for-success.html
Workforce. (2015). 2015 Workforce 100: Ranking the World's Top Companies for HR.
Workforce.com. Retrieved from: http://www.workforce.com/articles/21293-2015-
Workforce-100-List.
