The Potential and Precariousness of Partnership: The Case of the Kaiser Permanente Labor Management Partnership

Abstract

In 1997, the Kaiser Foundation Health Care and Hospitals, the Permanente Medical Federation, and a coalition of unions signed a national agreement creating one of the most ambitious labor management partnerships in U.S. history, initially covering some 58,000 employees. Based on field research and archival data, this paper analyzes the first eight years of this partnership in light of three strategic challenges—initiating, governing, and sustaining partnership—and the organizational challenge of partnership in a highly decentralized organization.

The role of management and trade union leadership on dual commitment: The mediating effect of the workplace relations climate

“…Part of the WRC research (e.g., Pyman et al, ; Valizade et al, ) has been developed in response to a growing interest for union–management collaboration and bipartisan arrangements such as “quality of work life programs, gain‐sharing plans and union‐management committees [which] have become an established feature of labor relations in many organizations” (Deery & Iverson, : 588). Such studies have brought out the importance, for union and management actors, of displaying appropriate skills and leadership behaviours (Harrisson, Roy, & Haines, ; Kochan et al, ). More specifically, they have recognised that a positive WRC requires, from both union and management representatives, particular behaviours and skills in terms of communication, problem solving, and conflict resolution in their interactions with members and other local actors.…”

“…For instance, in a context where relationships between management, the union, and employees are less collaborative, intellectual stimulation behaviours can lead organisational members to see the situation in a more positive light, helping them to overcome disagreements and propose effective solutions (Doucet, Poitras, & Chênevert, ; Rahim, ). Such behaviours can thus modify the perception of the work environment, emphasising common interests and mutual respect between the parties, and in this way, facilitate a positive WRC (Harrisson et al, : Kochan et al, ). Finally, by listening to workers' needs and concerns (individualised consideration behaviours), transformational leaders not only build a strong relationship with workers based on mutual recognition and trust, but also promote honest and transparent exchanges, which facilitate collaboration between organisational members (Valizade et al, ).…”

“…Over the last three decades, efforts have been made by unionised firms to shift to a more cooperative approach with unions (Valizade, Ogbonnaya, Tregaskis, & Forde, ), as the more traditional, conflictual approach to labour–management relations has become unproductive, affecting their chance of survival (Balser & Winkler, ; Deery & Iverson, ). This is especially true for sectors such as manufacturing and the automobile and aerospace industries, which have been marked by major technological changes and new production models, such as lean or just‐in‐time production (Kochan et al, ; Martinez Lucio & Stuart, ).…”

Developing Positive Employment Relations

“…If the results are favourable, why do we not see more partnership in the USA? Partnership scholars in the USA have noted the fragility of the model (see, for example, Kochan et al 2008 ) and have pointed to a mix of challenges from both the external environment and the internal dynamics of partnership (Preuss and Frost 2003 ;Eaton et al 2004 ). In part, partnership runs against deeply held views by management that they are better off without a union at all and the concomitant search for methods of escaping unions.…”

The British partnership phenomenon: a ten year review

“…They make clear that rhetoric alone will not deliver effective outcomes or mutual gains, and indicate a range of preconditions ranging from job security, training and employee selection, through to management commitment and supportive business strategies. In a more recent review of the US context, Kochan et al. (2008) identify further enablers of partnership including a perceived need to change the status quo, investment in the skills and capabilities of actors, changes in the roles and leadership styles of managers and unionists at all levels, new structures, overcoming resistance, and the achievement of tangible, valued, sustained results over time.…”