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How industrial relations affects plant performance: The case of commercial aircraft manufacturing

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Author Info

  • Morris M. Kleiner
  • Jonathan S. Leonard
  • Adam M. Pilarski

Abstract

This analysis examines how changes in major industrial relations policies affected productivity over the years 1974-91 at one of the most important manufacturing plants in the United States. The authors find that productivity fell greatly, both in percentage terms and in absolute dollars, during strikes and a slowdown and during the terms of office of tough union leaders. In contrast with much of the firm performance literature, they find only small initial productivity effects of a movement from traditional adversarial management, which is the norm in this industry, to total quality management (TQM) and back again. How and why TQM is adopted, the authors suggest, may be as important as whether it is adopted. Finally, major industrial relations events like strikes, a slowdown, and the TQM program did not have long-term productivity effects; the firm returned to pre-event levels of productivity within one to four months. (Author's abstract.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 55 (2002)
Issue (Month): 2 (January)
Pages: 195-218

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Handle: RePEc:ilr:articl:v:55:y:2002:i:2:p:195-218

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Cited by:
  1. Susan Helper & Morris M. Kleiner, 2007. "International Differences in Lean Production, Productivity and Employee Attitudes," NBER Working Papers 13015, National Bureau of Economic Research, Inc.
  2. John T. Addison & Paulino Teixeira, 2006. "Does the Quality of Industrial Relations Matter for the Macro Economy? A Cross-Country Analysis Using Strikes Data," GEMF Working Papers 2006-02, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. John T. Addison & Paulino Teixeira, 2007. "Are Good Industrial Relations Good for the Economy?," Working Paper Series 28-07, The Rimini Centre for Economic Analysis, revised Jul 2007.
  4. John T. Addison, 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," GEMF Working Papers 2005-03, GEMF - Faculdade de Economia, Universidade de Coimbra.
  5. Hirsch, Barry T., 2007. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," IZA Discussion Papers 2930, Institute for the Study of Labor (IZA).
  6. Panos, Georgios A. & Theodossiou, Ioannis, 2010. "Union Mediation and Adaptation to Reciprocal Loyalty Arrangements," SIRE Discussion Papers 2010-119, Scottish Institute for Research in Economics (SIRE).
  7. David Metcalf, 2002. "Unions and Productivity, Financial Performance and Investment: International Evidence," CEP Discussion Papers dp0539, Centre for Economic Performance, LSE.
  8. Parama Chaudhury, 2010. "Multi-tasking and the Returns to Experience," Economics Series Working Papers 518, University of Oxford, Department of Economics.

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