UAW Solidarity, The Nine Line, November/December 2005, No. 4

UAW Solidarity
The Nine Line
November/December 2005 No. 4
http://www.uaw.org/solidarity/rnews/05/q4/r9/r9_02.cfm

Labor Day in Akron, N.Y.
South Koreans study Perry's, Local 686 relations

On Labor Day weekend a group of labor relations and human re-source managers from SK Corp., a huge multi-billion dollar corporate giant from South Korea, arrived in Akron, N.Y. to study a labor relations and union management success story with UAW Region 9, Perry's Ice Cream, UAW Local 686 and Cornell University School of Industrial and Labor Relations.

The trip was arranged by Cornell ILR staff in Buffalo to present a case study of how working together can help both union and company. SK brought 25 labor relations and human resource managers representing the SK Corp and their many divisions.

After spending a few days in Ithaca, N.Y., in a seminar with the Cornell University Center for Advanced Human Resources Studies, the SK representatives made the trip to Akron to meet with: Scott Adams, Region 9 international representative; Bob Engelhart, Local 686 unit president for Perry's; Michael Calhoun, Perry's vice president of operations; Art Wheaton, Cornell University ILR in Buffalo, and the members of Perry's Joint Operations Leadership Team.

At first glance having visitors from South Korea learn from a regional ice cream company may seem like a giant mismatch. SK had revenues of $55 billion in U.S. dollars and profits of $4.5 billion (U.S.) in 2004. SK has 25,000 employees.

Meanwhile Perry's Ice Cream has a workforce of fewer than 200 union members.

SK Corp. owns multibillion dollar businesses in energy and chemicals, information and telecommunications, logistics and services, and finance. SK has a labor union with some 2,500 members. The company offers high wages and benefits and extensive training and development. Size is not the most important issue when it comes to labor relations.

But best practices are not always created by the largest companies. Smart companies and unions are willing to learn from others. Perry's was selected because its labor management relations are vastly improved from their first collective-bargaining contract in 1999 and continue to improve the operations of the company.

With help from UAW Local 897 and Ford Stamping plant personnel, Perry's has turned its Joint Operations Leadership Team into a case study for others to model.

Most people in western New York think of the Delphi Automotive plant in Lockport when someone mentions UAW Local 686. While Unit 1 at Delphi Automotive is by far the largest unit of Local 686, it may not be the best case study for cooperative labor management relations.

While Perry's is a relatively small unit of Local 686, its labor management relations are a key to the success of the company and its ability to compete in the ultra-competitive ice cream market.

This is not the first time a Korean company has come to western New York to speak with Region 9 or Local 686. Last year LG Electronics visited Ford Buffalo Stamping plant and Local 897, meeting with Kevin Donovan, Region 9 Servicing representative; Frank Andrews, Local 686 president; and Bob Engelhart, the UAW unit president from Perry's.

A highlight of the program with SK management at Perry's came during the question-and-answer session. One of SK?s human resources senior managers said, ?It appears that the company has made too many concessions.?Mike Calhoun, Perry's vice president of operations, was eager to respond.

"If you perceive us paying above the market wage and providing a good benefits package, or jointly sharing in a decision-making process while in return getting better employees, increased productivity, 30 percent less scrap, working together to reduce compensation costs by half, if you perceive these things as concessionary then I must respectfully disagree," Calhoun said.

Region 9 Director Geraldine Ochocinska's and many UAW locals have participated in international programs and labor relations programs with Cornell ILR for many years. Western New York has long been a leader in cooperative labor management relations and successful union management partnerships.