AMERICAN WORKPLACE VOLUME 2 ISSUE 2 MARCH 1994 U.S. DEPARTMENT OF LABOR BUILDING AN OAW FOUNDATION The service and manufacturing sectors of the U.S. economy, both public and private, are emerging as winners in the quest to become market driven. They focus on customer needs, test market products and services, get feedback, and, above all, meet the customer's time and quality demands. Can Washington policy makers apply the same concept? Test their ideas on potential users? Be customer attentive? On January 25, OAW unveiled nine approaches to help American workplaces achieve high-performance goals and "test marketed' them on stakeholders-more than 45 CEOs, labor leaders, academics, and association leaders. These initiatives (see Workplace Agenda, page 1) promote innovation in U.S. workplace practices and encourage cooperation in the labor-management arena. Secretary of Labor Robert B. Reich set the tone of the 4-hour meeting, telling participants, "The workplace is a win-win or a lose-lose situation. We all win or we all lose together." He urged the audience to address the questions: How do we improve the quality of the worker-manager relationship? Increase productivity at work? Create high-performance workplaces? "Help us develop programs to institutionalize these ideas," said Reich. Martin Manley, OAW's assistant secretary, noted: "We cannot mandate innovation in the workplace. It will happen through working partnerships, sector by sector, region by region." In outlining OAW's initiatives, Manley noted that roughly 5 percent of the nation's businesses claim to be high-performance organizations. "We want to encourage more." Thus, the OAW formulated its agenda for the future. "Before these initiatives are cast in concrete...let's discuss how we can achieve tangible results for American business and for those who are on the front line of workplace change." A sampling of participant responses to OAW's agenda: WHAT BUILDS HIGH PERFORMANCE? Indicators like the rate of turnover, effective training, teamwork, and worker satisfaction need to be added to bottom-line measures used by the financial community in determining a company's health. "We need maps to show how to do this, how to implement it, how to get these ideas into organizations," said Robert Rosen, president of Healthy Companies. 1 "We lack new models ... and we have two problems-- institutionalization of these ideas and leadership development." On top of that, moving toward a high-performance organization requires internal buy-in. "Only when senior management makes the commitment can it happen," said Russell Maier, CEO of Republic Engineered Steel. He included the need for buy-in from stockholders and boards of directors as well. "But [once that commitment is made] pressure for change must come from the bottom, too." Morton Bahr, president of the Communications Workers of America, urged OAW to highlight best practices where they exist: "In unionized organizations, ask them what have they been able to do as a result of these efforts? Collect best practices and say 'This is good for the nation.'" He cited the experience of CWA and AT&T as one example. WHAT KEEPS IT GOING? Once companies believe a high-performance organization is possible, then what? Individuals discussed their experiences in making high performance the norm: "What can companies do to break the traditional mold?" asked George Becker, president-elect of the United Steelworkers of America. "We--both companies and unions--have to ask ourselves, 'If we were starting this business today, how would we run it?'" Eileen Appelbaum of the Economic Policy Institute added the manufacturer/supplier relationship to the equation. "Small companies supply larger manufacturers, who set terms of business. Even if small firms implement best practices, they may not have great gains to pass along to workers. How do we deal with this?" "The first time companies run into trouble, what keeps them from going back to the old way of doing business?" asked Professor Barry Bluestone of the University of Massachusetts. "What can we do to provide...an alternative set of processes that keeps things on the right track?" PROMOTE WHAT WORKS The answer lies in identifying best practices, creating an environment in which they can thrive, and getting the word out about what works. Hugh Tranum, executive director of the National Labor Management Association, urged OAW to be inclusive in its high-performance message: "Reach out to small companies that are not high performance--the small regional manufacturers, for instance, who have barely survived during the past 5 years. They need to hear this message." His recommendation: networks of organizations and companies that diffuse the message. "Employers want their professional associations to help them out," said Phyllis Eisen of the National Association of Manufacturers. "Identify and use your 'best messengers' to help get out the message of high-performance workplaces." Other resources suggested by various individuals included local, regional, and state offices of economic development, trade associations, labor-management councils, institutions of higher learning, and researchers studying worker-management practices. Diffusion should also be done by those with experience. "Use your best success story of high-involvement," encouraged Frank Doyle, executive vice president of General Electric. "A leader of a company with a labor union leader who has watched out for the workers' interests--together they are far more persuasive than any one of us can be separately." "Promote them--those high performance workplaces--in detailed case studies," urged Ellen Bravo of 9to5, the National Association of Working Women. "Show that best practices are the road to high-performance workplaces." "All these individual ideas and experiences help us get a clearer picture of where we should be heading," said Manley. "Through working partnerships with these customers and others, we can begin to expand the use of high-performance practices. That's a goal worthy of our nation's attention." _________________________________________________ OAW ANNOUNCES WORKPLACE AGENDA At a January 25 gathering of more than 45 workplace leaders, the Office of the American Workplace (OAW) announced its plans for 1994 and beyond. Like the workplace itself, the following represent works in progress, subject to changes. Performance Measurement Project- The Performance Measurement Project will develop better measures of workplace practices and provide nontraditional indicators of firm performance. The project will seek to establish the link between workplace practices and long-term productivity and profitability. As a first step, OAW is developing a discussion guide to provide investors with a set of questions helpful in evaluating potential investments. Labor Leadership Institute- The Labor Leadership Institute will bring together 40 union leaders for training in effective participation in workplace partnerships. The Institute will identify critical skills needed by union leaders in high-performance work settings, develop and deliver curriculum, provide work-site application, follow-up, and training evaluation. The UAW, CWA, ACTWU, and the USWA are sponsoring unions for this initial pilot. Workplace Practices Clearinghouse- OAW is building an information clearinghouse on innovative workplace practices constituting high-performance work systems. The clearinghouse will consist of a database of companies engaged in innovative work practices, a bibliographical listing of references, a directory of other resource organizations, and a calendar of events, all designed to help OAW's constituencies understand and implement innovative work practices. Labor-Management Outreach- OAW will develop strategies to support, promote, and integrate the work of state programs and other community-based service providers to encourage high-performance work practices. OAW will help facilitate regular communications and contact with innovative leaders of management and labor. National Center for the Workplace/National Workforce Assistance Collaborative- OAW has entered into a cooperative agreement with the University of California at Berkeley and four other universities to create the National Center for the Workplace (NCW), which will research and document effects of high-performance practices. With the Employment and Training Administration, OAW is collaborating with the National Alliance of Business on the National Workforce Assistance Collaborative, designed to create training and applied research materials for use in the workplace. Industrial Extension/Technology Integration- OAW is working with the National Institute of Science and Technology's (NIST) Manufacturing Technology Centers (MTCs) and state and local officials to help firms integrate innovative work systems and human resource practices with new technologies and production methods. With the Employment and Training Administration, OAW is developing a human resources assessment tool for MTC extension agents to use with their clients. OAW also is working with the White House's National Science and Technology Council on these issues. Employee Ownership and Participation- OAW is promoting appropriate employee ownership and participation strategies as a means of improving company performance and increasing worker voices in the workplace. OAW will examine national policies and state efforts to foster and encourage these goals. Industry Association Partnerships- OAW is working with several business organizations and industry associations to identify and publicize high-performance workplace practices relevant to their member firms. Framework to Support New Workplace Relations- OAW will use the findings of the Commission on the Future of Worker Management Relations to develop appropriate public policy regarding private-sector labor laws. Additionally, OAW will support the National Partnership Council and federal agency/union efforts to achieve the goals of Executive Order 12871, calling for labor-management partnerships in the federal sector. ______________________________________________________ NEW UNION FINANCIAL REPORTING FORMS ADOPTED On December 21, 1993, the Department of Labor issued its final rule revising the financial reporting forms labor unions must file on an annual basis with the Department. The rule affects all unions covered by the Labor-Management Reporting and Disclosure Act (LMRDA), also known as the Landrum-Griffin Act. "These rule changes will significantly reduce the reporting burden on many unions while providing for public disclosure of information that is of most interest to union members and the public," said Secretary of Labor Robert B. Reich. The final rule rescinds a requirement adopted in 1992 but postponed before taking effect, that unions report expenditures in functional categories. It also reinstates the requirement that unions report on the cash basis of accounting; the 1992 regulations allowed reports to be filed on either a cash or accrual basis of accounting. Retained in the final rule are provisions adopted in 1992 for the new abbreviated Form LM-4, to be used by small unions with less than $10,000 in annual receipts, as well as an increase in the financial ceiling for filing Form LM-3-from $100,000 to $200,000. Unions with receipts of $200,000 or more will file the revised Form LM-2. The new Forms LM-2, LM-3, and LM-4 must be used by unions for reports covering fiscal years beginning on or after January 1, 1994. Therefore, the new forms will first be filed in calendar year 1995 and cannot be used before that time. OAW's Office of Labor-Management Standards (OLMS) administers LMRDA and is now distributing information about the new forms to all reporting unions. OLMS is also conducting a series of special briefings on the new reporting forms for international unions with at least 100 affiliates. Union officials wanting additional information about the new forms or about special briefings should contact OLMS. Copies of the final rule, along with sample reporting forms and instructions, are also available. Write or call: OLMS, Division of Liaison, Compliance Assistance and Training Room N-5605 200 Constitution Ave., NW Washington, DC 20210 Telephone. (202) 2147320 _____________________________________________________ GRANTS FUNDING AVAILABLE The Federal Mediation and Conciliation Service (FMCS) has announced that $769,000 will be available in 1994 to fund joint labor-management committees and cooperative programs. Since 1981, FMCS has awarded grants under its Labor-Management Cooperation Program to business and labor groups seeking to establish and/or operate joint committees to deal with issues of mutual concern to business and union groups. More than 150 committees in the public and private sectors have received FMCS grant funding. Seventy- five percent are still in operation and have achieved reduced grievances, improved quality of work life, and measurable productivity increases as a result of their work. Applications kits, which include a 45-minute videotape on how to develop and apply for FMCS grants, are available free by contacting: Office of Labor-Management Grant Programs Federal Mediation and Conciliation Service 2100 K St., NW Washington, DC 20427 Or phone (202) 653-5320 Grant applications must be postmarked by May 14, 1994. __________________________________________________________ FUTURE OF THE AMERICAN WORKPLACE REPORT A report highlighting results of last summer's Conference on the Future of the American Workplace is available free from OAW. The report summarizes the comments of participants, including those of panel moderators President Bill Clinton, Secretary of Labor Robert B. Reich, and Secretary of Commerce Ronald H. Brown. The conference attracted more than 600 CEO's, labor leaders, plant managers, academics, and front-line employees--all practitioners and stakeholders in the transformation to high-performance workplaces. Through case study presentations and panel discussions, participants addressed new workplace strategies that lead to higher productivity and benefit employees. For a single, free copy of the _Workplace_of_the_Future: _A_Report_of_the_Conference_on_the_Future_of_the_American_ Workplace_, contact: Office of the American Workplace U.S. Department of Labor 200 Constitution Ave., NW Room N-5402 Washington, DC 20210 Or fax (202)219-8762 Video highlights of the conference's opening session and four panel discussions are available to interested readers. Panel topics included: PANEL 1 The Revolution in the American Workplace PANEL 2 Overcoming the Barriers to Change PANEL 3 How Will New Workplace Strategies Benefit Workers, Companies, and the Nation's Economy? PANEL 4 Accelerating the Pace of Change: Public and Private Strategies. For video information on the Future of the American Workplace conference, contact: Garrigan Media, Inc., at l-800-546-5034 Cost $49.95, plus shipping and handling. [SysOp note: the full transcript of the July 1993 conference is available for download on the TQM BBS or by ftp or gopher from Clemson University. Filename: WRKPLACE.ZIP. The report mentioned above will be available soon. Filename will be: WKPLCFUT.ZIP.] ________________________________________________________ NATIONAL LABOR-MANAGEMENT CONFERENCE ANNOUNCED Labor-management practitioners seeking how-to advice as well as a broad picture of the labor-management landscape will want to attend the Seventh National Labor Management Conference, June 7- 9, 1994, in Washington, DC. A total of 35 workshops, covering such issues as health care reform, reinventing government, total quality management, and developing high-performance workplaces, will be featured. Secretary of Labor Robert B. Reich has been invited to give the keynote address. According to FMCS Director John Calhoun Wells: "This is a unique opportunity to see what unions, companies, and government agencies across the country are doing together to change their course." The cost for the conference is $195. Its primary sponsor is the Federal Mediation and Conciliation Service; cosponsors include the Department of Labor, the National State and Local Government Labor-Management Committee, and the National Labor Management Association. Past conferences have drawn more than 1,500 professionals in the labor-management arena. For more information, contact: The National Labor-Management Conference P.O. Box 27429 Washington, DC 20038 Or phone. (202) 737-2620