In Business This Week
A RULING, FINALLY. A PRECEDENT? MAYBE
Although the National Labor Relations Board's long-awaited ruling on labor-management work teams is likely to upset some employer groups, the decision is narrowly written and won't force most companies to abandon teams, board sources say. The case involves Electromation, an Elkhart (Ind.) electronics manufacturer, which in 1989 appointed worker-manager teams after notifying employees that there would be no pay hikes that year.
The NLRB ruled that Electromation violated the National Labor Relations Act. But NLRB sources say the ruling addresses only Electromation's actions, not teams in general. In the long run, though, the case may set a precedent that could give employees more say in determining team composition.EDITED BY HARRIS COLLINGWOOD