Case Study Ch 14

by

Business Finance

Kenny and Norton, owners of TEAM FUN!, a sporting goods manufacturer and retailer are kayaking in the LAGOON, their water-gear area. Kenny splashes Norton. “Did you see the paper this morning?” Norton shakes his head no as Kenny continues. “I bet I know why Keith was talking about changing operations at his company and finding out how happy all his employees are. Those guys voted in a union. Honest. Front page of the business section.” (Keith is one of their longtime competitors.) Norton frowns. “Why would they go union? He’s a great guy. Tony found out that they pay better than we do. Say, do we need to worry about a union here?” (Tony is director of human resources for TEAM FUN!.) Kenny reassures him, “No worries here. Besides, they have to let us know ahead of time if they are having a ‘certification vote.’ I think he said two years, or maybe that’s two months, before they organize one. We can go talk to all the employees if you want. Next month’s picnic doesn’t have a topic yet. We’ll ask Tony as soon as he shows up. You’ll never catch me in a union.” “We were in a union before,” says Norton. “Remember that food processing plant in Texas where we shoveled frozen peas into boxcars? We paid dues, filed grease bandages, the whole bit. It was a closed shop.” Kenny: “My fingers got frostbit there. I never paid dues. And, I thought I was bribing that guy not to tell when we came in late. I never had a closet for any of my stuff. That place wasn’t anything like TEAM FUN! Ask Tony what he thinks about a union. Did you ever figure out why they called the complaint procedure a ‘greased bandage?’” Norton snorts, “I’ll fire him if he thinks it’s a good idea.” Kenny smiles. “We can just fire all of them if they think it’s a good idea.”

Questions: 1. How accurate is Kenny’s description of the union organizing process? Give details.

2. Explain to Norton the union activities he remembers from their Texas job.

3. Is TEAM FUN! likely to organize?

4. Should the organization resist or encourage such activities?