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New PDF release: A Fighting Chance: New Strategies to Save Jobs and Reduce

By Sally Klingel, Ann M. Martin

ISBN-10: 087546145X

ISBN-13: 9780875461458

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Extra resources for A Fighting Chance: New Strategies to Save Jobs and Reduce Costs

Sample text

This time, management had found a Mexican vendor that was 43 percent cheaper than Xerox. The contractual agreement calling for the formation of a CST in such a situation was activated, and the work force was told that a study team was necessary. The work force was not told the enormity of the task, however. When volunteers for a second study team were solicited, the response of the work force was twofold. People felt alternately that management was using the threat of outsourcing and the CST process just to lower costs, or that the decision to outsource had already been made and that Xerox and the ACTWU 25 management was activating the CST only as a formality, because of the contractual agreement.

Management began to explore the risks and benefits of maquiladora operations, and by the fall of 1985 it had decided to move Trico's high-volume production to Texas and Mexico. Trico Products and the UA W 55 Initiation of the CST Concept In November 1985, three days after the decision to move was announced publicly, leaders ofUAW Local 2100 and its regional representative met with management to urge the company to reconsider its decision. The union argued for a study of the feasibility of building a new plant in Buffalo.

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. , when a lower-cost vendor had been found), no process had ever been established at the departmental level to make ongoing cost comparisons. When management announced in 1986 that the wire harness department was again no longer competitive, the reaction among the employees was one of shock and disappointment.

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A Fighting Chance: New Strategies to Save Jobs and Reduce Costs by Sally Klingel, Ann M. Martin


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