Section FourOperating on a Nonunion Basis
In order to gain greater flexibility, companies commonly pursue
strategies of operating on a nonunion basis. Such strategies are
sometimes a major determinant of the organization’s structure,
affecting divisional composition, plant size, and plant location.^18
Anil Verma has studied some large multiplant firms, having both
union and nonunion operations. One strategy he found among
firms desiring to reduce their exposure to labor relations
problems was the approach of building small new plants that
operate on a nonunion basis rather than investing in increased
capacity in existing unionized plants.^19 Emerson Electric
provides an example of such strategies. The company, which
has both unionized and nonunion plants, has an effective
organizational structure for economical manufacturing. This
structure also has reduced the likelihood of unionization in
some of its plants. Emerson has some divisions that carry well-
known product line names, such as Skil tools, In-Sink-Erator
kitchen appliances, Dremel hobby tools, and Ridgid tools, as
well as industrial product manufacturing such as Fisher
controls. As a result of locating its plants in small rural
communities and organizing by divisions having strong name
identifications, stronger employee commitment and lower costs
may be obtained, as well as an increased likelihood of
remaining nonunion.^20 In addition to these organizational
characteristics, there are numerous other variables that affect