ORC Sightlines

January 2007

UK Companies Learn About the Labor Relations Landscape in the US

If companies sometimes underestimate the degree of difference in management styles and practices between the US and the UK, that goes double for differences in the two labor relations systems. Earlier this month, representatives of 15 multinational companies headquartered in the United Kingdom met in London with ORC Senior Vice President Tom Connors, Fiona Webster, Director of ORC’s Employee Relations Practice in Europe, and representatives of global law firm Morgan Lewis to get a crash course on the context for management/labor relationships in the States.

Union Organizing

Although traditional enterprise-level organizing will continue in the usual way for at least the next several years, American unions have all but given up on their ability to make much headway in this manner. Much of their focus, therefore, will be on winning two prizes the unions believe are essential to their ability to organize workers:

The unions are pursuing a two-pronged strategy to secure these goals. They are working the legislative and judicial systems to bring about changes to the law while targeting negative publicity campaigns at selected companies to make life as uncomfortable for their senior managers as possible.

Bread and Butter Issues

The most troublesome issues between management and labor are health care, pensions, and job security. Health care costs continue to escalate, and nothing that happens at the bargaining table can bring them down again. The most that either side can achieve is to shift costs back and forth in the short term. Long term solutions will have to come from society at large, but there is no forum in the US at present that would allow labor, management, and government to come together to work out a reasonable solution.

Cost concerns are also at the heart of management’s desires to move jobs offshore (increasing workers’ anxiety about job security) and to migrate from traditional current pension systems, favored by unions, to cash balance and defined contribution plans.

Handling Litigation Threats in the US

Representatives from the leading global law firm Morgan Lewis introduced meeting participants to some of the intricacies of US labor law. They noted in particular the rise of class action claims regarding discrimination and compensation disparities and wage and hour litigation and offered strategies for avoiding multi-million dollar lawsuits.

Innovation a Must

The unions have demonstrated their willingness and ability to embrace new strategies and make new alliances, especially with their brother labor organizations around the world, to leverage their bargaining power. In order to survive, companies operating in the US labor environment will have to find equally innovative ways to engage the workforce, increase productivity, and decrease costs. The companies in attendance at this meeting agreed to continue working together to develop these solutions. As the US Employment Policy Advisory Group (US-EPAG), they’ll meet regularly to share best practices for managing industrial relations and human resources in the United States. Any UK companies interested in participating in US-EPAG can contact Fiona Webster in the UK, +44 (0)20 7591 5609 or Tom Connors in the US, +1-212-852-0352.

Whence the HR Leaders of Tomorrow?

Every HR executive and academic has his or her own list of key competencies for the people who will lead HR in tomorrow’s complex global organizations. These may differ somewhat depending on various situational factors, but at the core most include items such as:

In the past, HR may have been the proverbial cobbler when it came to workforce development, its own children going barefoot as it worked to supply the needs of the rest of the organization. But today, as the demands on HR have grown, some companies have taken a more active, disciplined approach to identifying high potential HR talent—both from within the HR community and from employees in other functions—and helping them develop these critical capabilities. Many companies are providing specialized classroom training to HR professionals, running internal conferences for the HR community, conducting semi-annual or annual talent reviews within the function, planning developmental assignments, and formalizing succession planning for HR positions.

How to best prepare the next generation of HR leaders is a topic that has been brought up again and again in many of ORC’s Networks. Some of the issues Network members are grappling with are how to provide meaningful developmental experiences in a lean organization, helping high potential HR managers build their personal and professional networks, and teaching them to step out of their technical comfort zones into a more strategic mind set. To help our clients address these needs, ORC has started a new Network specifically for high potential HR talent.

The Future HR Leaders' Network will bring together HR professionals who are considered “high potential” by the HR leaders in their organizations and aspire to one day becoming senior HR officers. They must have at least eight years experience in corporate or divisional roles and hold positions as HR business partners, managers or directors of specialized functions (e.g., compensation, OD, recruiting), or other senior positions. Network meetings and conference calls will stress building strategic awareness and knowledge in areas of concern for senior HR leaders. They will also have the opportunity to interact with members of ORC’s Senior HR Officers’ Network.

The first meeting of the Future HR Leaders’ Network will be March 29. If you are interested in nominating a participant, please contact Susan Carter, 212-852-0389.

IRC Sponsors Research on Work/Life Balance Issues for Expatriate Employees

Ironically, the technological advances that have enabled increasing flexibility in how work is structured and where and when it is performed have also made it much harder to escape from the demands of the office. The 24/7 culture that has grown up around our BlackBerries and cell phones has an even greater impact on the work/life balance of expatriates and their families.

ORC Worldwide is conducting a study, sponsored by Industrial Relations Counselors, Inc., a nonprofit research organization, to gain insight into challenges expatriates face in the global business environment and how employers are dealing with work/life balance issues. The 2006/2007 Work Life Balance Survey is designed to collect information directly from employees on international assignment regarding topics such as:

Participating companies are asked to send the survey invitation to their international assignees for completion. Assignees will receive the executive summary of results; the full analysis will be available only to appropriate management in the company. The survey will take about 30 minutes to complete and responses will be treated in the strictest confidence. If your organization would like to participate in the study, please contact Samantha Blackhurst Polovina, ORC Worldwide Survey Manager, as soon as possible at 212-852-0308.

Related Links
Sightlines Archive