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

2. 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

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

4. 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

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

6. 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

7. 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

8. 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

9. 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

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

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

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

13. 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

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

15. DISCUSSION

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