Running a business with union labor

June 12, 2024

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Hi all -

Would anyone with experience running a business with union labor be willing to connect briefly to share insight into the day to day of running the business?

I understand that situation could be different depending on the industry, contract with the union (CBA), etc, but would love to get a general perspective.

Thanks!

Jorge

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Reply by a searcher
from Harvard University in Palos Verdes Estates, CA 90274, USA

Thank you for the tag, ^redacted‌. This is quite beyond the scope of a quick forum post (there are entire academic programs devoted to this subject) - but I will say that you probably should not immediately use it as a "litmus test", which too many people do. Also, please understand that except for a few old line and traditionally "militant" industries, you will almost certainly have a mix of union and non-union labor in your operations for companies the size most of us are looking at. My experience in managing these two components was quite less volatile than I would have thought.

There are probably some great opportunities out there that are getting overlooked (or undervalued) at cash-generating businesses with some union labor on account of people instantly screening "no". It is a fact of life in some states, and a good business with union labor at least deserves a good look before the DQ.

Reply by a searcher
from The University of Chicago in Nashville, TN, USA

I've run a union shop in a manufacturing plant management position but not as an owner. I would focus less on pay + benefits and more on understanding the work rules for cross training, overtime, temporary/permanent layoffs, etc. Ideally you would see the handbook ahead of time. It honestly makes day-to-day life easy as a manager because there are black and white rules but those rules can really limit your creativity and flexibility. You end up referencing the book multiple times per day. Feel free to reach out directly if you think I can help.

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