De La Salle University-Manila

In partial fulfilment of the

course requirements in
Strategic Human Resource Management (SHURMAN)
this 3rd Term of AY 2014-2015

Case Study #3:

Union Organizing at SGA Industries

Submitted By:
De Castro, Erika J.

Submitted To:
See, John Andrew

Submitted On:
April 15, 2015

I. Point of view
The perspective on which Iam approaching the problem is from the employee's
point of view, because based on the case the employees are really the ones who are
greatly affected by the issue and they are the ones who would be the one to decide
whether there would be a union or not.
II. Statement of the problem
The problem of the case is all about the growing foreign competition that has
affected a lot of companies. Due to the large competition the domestic companies started
to lose a large amount of sales, thus forcing the management to start downsizing plants,
laying off employees, reducing salaries and rescinding many of the perks and benefits
that the workers were receiving back then. So because of this tension around the
workplace started to occur especially since the workforce started dividing into two, half
which is in favor for the management while the other half favors the union.
III. Areas for consideration
A. Job Security
One of the things to be considered is the security of the employee's job. If the
employee will not join a union, it won't be guaranteed that he will not be part of the lay off
especially if he was just recently hired by the company. Usually employee's who were
recently hired are the first ones to be fired. However joining unions doesn't necessarily
mean that you can keep your job. It can also jeopardize the job of the employee. Even
though the employee that joins a union cannot be fired easily, if the management decided
to shut down the company due to big losses he can lose his job. Unions usually cause
more problems to the company which causes the delay and inefficiency of the company
and if the company won't be able to get profit it can lead to the shut down of the company.
Also joining unions can delay or even hinder employees from getting promoted.
B. Salaries and Benefits of the Employee
Another thing to be considered is the salaries that would be given to the employees.
Being included in a union entitles you to have a better wage however one of the downside
is that in some unions even if you work harder the employer won't give you rewards except
for those that were negotiated by your union. While on the other hand, although
employees that didn't join any unions aren't guaranteed with high wages, they have a
higher chance of getting promoted since employers believe that they are loyal to them
compared to others.
C. Company's Productivity
In my opinion the most important thing to be considered is the productivity of the
company. No matter how high an employee's wage is, if the company isn't able to
generate income then sooner or later everything will also collapse together with the firm. It
is important to not only think of one's interest. By ensuring the productivity of the company

everything will soon follow so it would be advisable to also prioritize the efficiency of the
organization.
IV. Alternatives
Alternatives
1. Don't join in the

union and just let the

management lead.

Advantages
Employee doesn't need to
pay union fees and initiation
fees. It won't jeopardize
their promotion since
management trust them
more. They are also paid for
their effort, quality, ideas,
and unique traits

2. Join in the union and Better wages

3.

voice out one's

problem towards the
management.

Employees will have a

secured job since
management can't fire them
easily
Employees can acquire
more benefits

Don't join the union,

instead choose a
representative that
would inform the
management about
the employees
concerns.

Tension in work will be

lessen. Trust with one
another will be stronger and
there would be unity in the
workplace. Concerns can
be addressed even without
the union.There won't be
inefficiency in the company.

Disadvantages
Concerns regarding
salaries and benefits
received might not be
resolved. They arent
protected from layoffs.

They only get paid based

on the negotiation of the
union, so they aren't
usually paid extra for their
effort. They also need to
pay fees when they join
unions. They can cause
inefficiency instead of
helping the company.
Jobs of the employees
aren't as secured if they
won't join unions.

V. Implementation strategy
The problem with this issue is that it is quite hard for the employees to decide
whether they should join a union or not. But in this case I choose the third alternative. I
believe it would be better for the employees to not join the union and instead try to resolve
their concerns with their management first. Based from what I read, it can be seen that the
new employer has been encountering a major crisis since a lot of foreign businesses are
competing against them, due to this he is forced to cut costs and so they started to lay off
workers. I think employees should also consider that the management is really trying to
resolve the problem and if they try to resolve it first without adding any third parties, which
are the unions, I believe they would be better off. Through this solution the tension around
the workplace would be minimized and trust and loyalty will be formed in the workplace.
So to implement this strategy, workers should meet with each other and plan how they can
approach the employer so that they can inform him their concerns regarding the salaries,
benefits and job safety. They can also suggest other solutions to the employer to show him

that they really want to help save the firm and with this the employer would also be able to
trust his employees more and treat them well like families.
VI. Expected impact on companys Financial, Customers, Internal Business Processes,
and Employees
Financial

Customers

Internal
Business
Process

Employees

Lower costs

Better customer
care

Efficient

Employee
retention

Increase
profitability

Less Conflicts

Orderly workplace

Satisfied
employees

Increase revenue

Customer retention

Loyal employees

If the employees were to implement my alternative course of action then the

management and the employees would have a stronger relationship. Employees would be
loyal to employers while employers will treat their employees well. Through this
satisfaction will be attained by the employees and the loyalty and retention of the
employees would be the reward of the employers. If the conflict of interest are to be
resolved this way many problems that is usually caused by a union can be avoided like
inefficiency of the company, disloyal employees, tension in the workplace and strikes. By
addressing the concerns directly and not have to operate under the possibility of a
collective strike the company's production won't slow down but instead it would flourish. So
without the strikes there would be lower costs. Since there is no interruptions in the
business process there would be an increase in profitability leading to a higher revenue.
Consequentially, no collective strikes would also result to a better reputation that can
attract more customers. Previous customers would also be retained because they know
that the company has a really good reputation. Also since employees are satisfied they
can provide better services which will result to a better customer care. The integration of
this alternative can ensure that the business process won't be sacrificed in order to resolve
the concerns of the employees. Workers hold a high role in a company because without
them the company won't be able to give services or create products so it is the employer's
responsibility to make sure that they are properly taken care of and treated well. Likewise
employees should also consider the effects of their actions to their employer and to the
company. That's why it's highly regarded that employees and employers should work
together to find a solution to their conflict of interests first before including a third party
because by collaborating first the employees would be able to satisfy their needs without
jeopardizing the company.