scriptural principles

Case Study 3: (Case #99 – Text: Nkomo, Fottler & McAfee, 2010). Read the entire case and
prepare your paper according to the instructions below, being sure to address fully the 3
questions at the end of the case in your paper. Include in your paper content that demonstrates a
clear understanding of the ethical aspects of both union and management behavior. Provide
analysis and examples of pros and cons in the strategy used by North American Tire Plant in
their attempts to circumvent the continuance of the Local 974 of United Tireworkers of
America. Scripture teaches us numerous principles regarding money. What specific scriptural
principles could be integrated into the setting of wage rates in this case?

in current APA formatting. This assignment must include a title page and reference page (not
included in page count). There must be a minimum of 4 scholarly sources, in addition to the
textbook.

The Give Back: A Case of Union
Busting
Three years ago, Local 974 of the United Tireworkers of
America made significant contract concessions to the North
American Tire plant in Bailey, Georgia. The union concessions
were made for the company’s economic survival and for the
plant to remain open. Now, as the U.S. economy was struggling
to recover from what some had called the worst recession since
the Great Depression, North American Tire and its union was
back at the bargaining table. While the U.S. economy had shown
some signs of recovery, the union was not looking to give back
again but to recover some of what was given up in previous
negotiations. The union’s position was that its previous
concessions had facilitated North American Tire’s survival and
that it had already done its part to ensure the company’s
viability. However, the company had other goals for
negotiations.
The company’s initial proposals did not satisfy the union’s
negotiating team, a strike resulted, and both sides indicated
their resolve was strong. While picket lines and demonstrations
at the plant were rather uneventful, a war of words was fought
in the media. On the one hand, full-page ads appeared in the

local papers condemning the company for going back on their
word to make up for the givebacks of the past. On the other
hand, the company claimed it needed to maintain its
competitive position in an industry undergoing a shakeout of
under-performing competitors. North American Tire’s parent
company, Swiss Financial, of Alpsland, Switzerland, reported
that operating profit rose 20 percent to $68 million on sales of
$1.1 billion in the most recent quarter. North American’s other
nonunion plants were operating at capacity, and the company
recently announced the purchase of Mexico’s largest tire maker.
Negotiations broke down when the union rejected what
management called its best offer. The company stated that the
contract proposal was well above average for the Bailey,
Georgia area. However, the union countered that it was well
below industry standards. In addition, the union filed unfair
labor practice charges with the National Labor Relations Board
(NLRB). The union alleged that the strike was caused by unfair
labor practices including the company’s refusal to bargain over
medical insurance or to bring its decision makers to the
bargaining table.
Supervisors and clerical employees kept the North American
Tire plant in Bailey operating at less than 30 percent of capacity,
and plans were made by management to hire strike
replacements. Striking employees were invited to return to
work, but only a small percentage returned. The company began
to advertise, interview, and hire strike replacements. Although
the labor market was tight and Bailey’s unemployment rate was
less than 3 percent, there was no shortage of applicants. The
company increased production at the Bailey plant, and
production was also stepped up at its nonunion plants. While
the union cried foul, the company continued to increase
production. A federal mediator was appointed to get both sides
back to the bargaining table to resume negotiations.

Questions

1. What are the pros and cons of North American Tire’s strategy of
hiring replacement workers? How ethical is the behavior of
management?

2. Assuming that the firm’s goal is to break Local 974 of United
Tireworkers of America, what are the advantages and
disadvantages of this strategy?
3. What standard should the firm use in setting wage rates
(industry or geographic)?