High-Level Employee Involvement at Delta Air Lines

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  EMPLOYMENT MATTERS A lunchtime seminar series
aboutemployment relations andthe world of work
http//www.dti.gov.uk/er/emar/events.htm    
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High-Level Employee Involvement at Delta Air Lines

• Bruce E. Kaufman
• Andrew Young School of Policy Studies
• Georgia State University
• Atlanta GAThe British AcademyLondon, 10 March
  2004

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Employee InvolvementNot a New Idea

• When the Workmen Help You Manage 1919,
  William Basset
• 1920s Shops Councils and Employee
  Representation Plans

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Different Types of EI

• Financial
• Direct vs. Indirect (Participation vs.
  Representation)
• Low Level (Shop floor teams, quality circles)
• High Level (plant councils, board of directors
  group)
• High Level about 7 of companies doing EI

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Key Features of EI

• Scope (Narrow vs. Broad)
• Access to Management (Low vs. High)
• Power/Influence
• Information
• Informal vs. Formal

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Delta Air Lines the 1980s

• A top 100 employer
• A classic high road nonunion firm
• Enlightened Paternalism and Velvet Glove
  Command/Control
• Very high employee loyalty

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Delta Air Lines the 1990s

• Intensified competition, turbulent markets,
  global expansion
• New management team
• Paternalism is out, business partnering is in
• EI adopted at first for non-strategic reasons
• Has grown into a central part of the business
  model
• Probably the most formal, advanced EI program in
  USA

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Delta EI Program Structure

• Top-Level Delta Board Council
• Seven employees, each representing a business
  division
• Peer selected, two years terms
• Attend BOD meetings, meet with CEO, CFO and EVPs
• Base visits around the world
• Project assignments
• Preview employee sensitive communications/policie
  s

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EI Program contd.

• Middle-Level Five Division Employee Councils
• Flight Attendant Forum
• Technical Operations Council
• Airport Customer Service Forum
• Cargo Partnership council
• Reservations Sales council
• Employee elected representatives
• Deal with all issues affecting that division

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EI Program contd.

• Lower-Level Base councils
• Elected representatives
• Handle base level issues
• Form Continuous Improvement Teams

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Costs

• Employee/Management Time
• Slower/Constrained Decision Making
• Higher Labor Cost
• Unintended Collective Bargaining
• Long-Run/Uncertain Pay-Off
• Backfire Effect

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Benefits

• Energize the Employees
• Organizational Alignment/Coordination
• Production Efficiency/Quality
• Communication/Information Flow
• Organizational Change
• Management/Employee Development
• Employee Relations

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Lessons Learned

• Not for Everyone
• Impact the Bottom Line
• Core Part of the Business
• Long-Run Focus
• Trust and Mutual Gain
• Distributive items Off the Table
• Empowerment and Problem-Solving

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Lessons Learned cont.

• Management Commitment
• Early Bumps
• Training
• External Pressure
• Cooperative Employee Relations vs. Union Avoidance

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  DISCUSSION   
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  EMPLOYMENT MATTERS A lunchtime seminar series
aboutemployment relations andthe world of work
http//www.dti.gov.uk/er/emar/events.htm