By Sally Klingel, Ann M. Martin
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Extra resources for A Fighting Chance: New Strategies to Save Jobs and Reduce Costs
The work force of CMO shrank by nearly one-third from 1978 to 1985. Xerox continued corporatewide cost-cutting efforts and began diversifying its operations. Outsourcing of product components became one of the major strategies for reducing costs, and Xerox began to compare its own in-plant costs with those of low-cost vendors abroad. Such "competitive benchmarking," as it is called, was both a way to monitor the competitiveness of production costs at Xerox plants and to find new producers for outsourcing.
Indirect Results The formation of cost study teams sometimes results in indirect changes in the labor relations environment of an organization. If the level of trust between the union and management changes at Harrison as a result of Hog's Helpers' work, the team could have a long-term effect on other cooperative efforts. Managers at Harrison above supervisory level have reported a change in the environment of the distribution center. They note that labor and management have gone "from jointness to mutuality'' and that the work force is more willing to talk about issues.
Harrison managers insist emphatically that insourcing and outsourcing decisions are made at Harrison. If this is the case, then there will be significant opportunities for joint labor-management efforts to shape the future of the Harrison plant. 3 Trico Products Corporation and theUAW 1979, Trico Products Corporation began to experience I na serious economic downturn. a supplier of windshield As wipers to the automotive industry, Trico was directly affected by the drop in car sales caused by competition from foreign imports and the oil crisis.
A Fighting Chance: New Strategies to Save Jobs and Reduce Costs by Sally Klingel, Ann M. Martin