Slide1:   EMPLOYMENT MATTERS A lunchtime seminar series about employment relations and the world of work http://www.dti.gov.uk/er/emar/events.htm    


High-Level Employee Involvement at Delta Air Lines: High-Level Employee Involvement at Delta Air Lines Bruce E. Kaufman Andrew Young School of Policy Studies Georgia State University Atlanta GA The British Academy London, 10 March 2004


Employee Involvement:Not a New Idea: Employee Involvement: Not a New Idea When the Workmen Help You Manage 1919, William Basset 1920s: Shops Councils and Employee Representation Plans


Different Types of EI: Different Types of EI Financial Direct vs. Indirect (Participation vs. Representation) Low Level (Shop floor teams, quality circles) High Level (plant councils, board of directors group) High Level: about 7% of companies doing EI


Key Features of EI: Key Features of EI Scope (Narrow vs. Broad) Access to Management (Low vs. High) Power/Influence Information Informal vs. Formal


Delta Air Lines: the 1980s: Delta Air Lines: the 1980s A “top 100” employer A classic “high road” nonunion firm Enlightened Paternalism and Velvet Glove Command/Control Very high employee loyalty


Delta Air Lines: the 1990s: Delta Air Lines: the 1990s Intensified competition, turbulent markets, global expansion New management team Paternalism is out, business partnering is in EI adopted at first for non-strategic reasons Has grown into a central part of the business model Probably the most formal, advanced EI program in USA


Delta EI Program: Structure: Delta EI Program: Structure Top-Level: Delta Board Council Seven employees, each representing a business division Peer selected, two years terms Attend BOD meetings, meet with CEO, CFO and EVPs Base visits around the world Project assignments Preview employee sensitive communications/policies


EI Program contd.: EI Program contd. Middle-Level: Five Division Employee Councils Flight Attendant Forum Technical Operations Council Airport Customer Service Forum Cargo Partnership council Reservations Sales council Employee elected representatives Deal with all issues affecting that division


EI Program contd.: EI Program contd. Lower-Level: Base councils Elected representatives Handle base level issues Form Continuous Improvement Teams


Costs: Costs Employee/Management Time Slower/Constrained Decision Making Higher Labor Cost Unintended Collective Bargaining Long-Run/Uncertain Pay-Off Backfire Effect


Benefits: Benefits Energize the Employees Organizational Alignment/Coordination Production Efficiency/Quality Communication/Information Flow Organizational Change Management/Employee Development Employee Relations


Lessons Learned: Lessons Learned Not for Everyone Impact the Bottom Line Core Part of the Business Long-Run Focus Trust and Mutual Gain Distributive items Off the Table Empowerment and Problem-Solving


Lessons Learned – cont.: Lessons Learned – cont. Management Commitment Early Bumps Training External Pressure Cooperative Employee Relations vs. Union Avoidance


Slide15:   DISCUSSION   


Slide16:   EMPLOYMENT MATTERS A lunchtime seminar series about employment relations and the world of work http://www.dti.gov.uk/er/emar/events.htm