Labor Participation in Plant Modernization

Abstract

Using case study and survey data from a project evaluation study of intervention projects at sixteen small and medium-size manufac turing firms, the author identifies factors that promote and ob struct union participation in plant modernization planning and implementation. Although measurable benefits came from local union leader and employee involvement in modernization at some of the plants, seven of the pilot sites halted their joint moderniza tion projects. Contributing factors were poor baseline labor rela tions and plant financial instability due in large measure to faulty management decisions. Proactive union activity was not enough to sustain projects in the face of such obstacles.