Chapter 12, Problem 3CTQ

Summary Introduction

Case summary:

This case study is between a company and its union members. Company B came up with a new wages and benefits to the members of IAM (International Association of Machinists) by way of launching 777X jetliners. This brought a fear in the members of IAM a threat of moving out the jobs out of State W. Most of the experienced machinists were the best people of IAM in area S.

The members were in great anger when Company B presents it revised contract which could affect the wages and pensions of the members in order to build 777X model. The local union leaders were under ruled by the other international and district leaders. The revised contract took by way of vote of members. But the members rejected the contract with a margin of 2-to-1. The company after verification modified the new contract but the members rejected the deal as the contract is similar to the one first.

Later the national leadership of International Association of Machinists stepped and forced the members to vote and later the deal was approved. Though the deal was approved there still remains a strife among the members.

Characters in the case:

• Company B

To discuss: Whether it is economically beneficial or health for Country U when states complete with one another.