To say that the management of barge builder Jeffboat LLC and the International Brotherhood of Teamsters Local 89 have had a tenuous relationship over the years would be an understatement.
For nearly four decades, management and labor leaders battled over wages, benefits, workload and safety issues.
On numerous occasions, the Teamsters went on strike against the company, and as late as October 2006, the rift became so bad that Teamsters officials said that representatives of both parties could not stand to be in the same room together.
What a difference a couple of years make.
On Thursday, Jeffboat and the Teamsters were presented the University of Louisville Labor-Management Center’s 2009 labor-management award to recognize their improved relations.
In the past, companies such as United Parcel Service Inc., Brown-Forman Corp., Ford Motor Co., General Electric Co. and Hillerich & Bradsby Co. have been recognized for their cooperation with labor unions.
“It has been a dramatic change,” said Jeffrey Cooper, assistant to Teamsters Local 89 president Fred Zuckerman.
Kim Durbin, manager of corporate communications for Jeffboat parent company American Commercial Lines Inc., said the improved relations have led to a 20 percent increase in manufacturing productivity during the past two years. And, she said, the number of on-the-job accidents has declined.
“From a company standpoint, there was a genuine desire to improve relations and productivity,” Durbin said. “Employees and management will tell you that those things have improved.”
Decertification threat, new contract seen as turning point
Changes in the relationship between Jeffboat and the Teamsters began to change in late 2006, when some disgruntled Teamsters workers filed a petition with the National Labor Relations Board, seeking to decertify the Teamsters as the representing labor union for Jeffboat production workers.
A vote was taken in December 2006, and the measure was defeated 77 percent to 23 percent.
That vote, Cooper said, marked a turning point in the relationship between the union and the company.
Less than a month later, officials from both sides hammered out a new labor agreement that is the most lucrative ever enjoyed by production workers at Jeffboat. The agreement expires in April 2010.
Durbin said the contract negotiations showed Jeffboat management that the union was ready to move in a more positive direction.
As a result, there has been a decline in the number of grievances that union workers have filed against Jeffboat and a drop in the number of arbitration cases between Jeffboat and the Teamsters.
And when there is a grievance, rather than having separate investigations conducted by the company and the union, a joint investigation is performed.
“Things are getting a lot better between the two sides,” said Ace Hilpp, a federal mediator who has been involved in labor discussions between the parties.
Opening the lines of communication
Although one party might not always like what the other has to say, the key to building a stronger relationship hinges on having a running dialogue, both parties said.
“Now all of our talks are extremely cordial,” Cooper said. “We don’t get aggravated at each other anymore. We all try to take a positive approach.”
Another key to improved relations has been a commitment to improving safety at Jeffboat.
Members of the Jeffboat management team and the union bargaining unit have safety task forces that meet weekly to discuss safety concerns. There also is a joint steward safety committee that addresses broader safety concerns.
Diversity a priority
The racial makeup of the rank-and-file at Jeffboat has continued to change over the past few years and both management and union leaders said they have made a commitment to promote diversity.
In 2005, about 3 percent of the work force was Hispanic. Today, about 25 percent of the 1,400 hourly workers are Hispanic.
The company provides English and Spanish training for management and union bargaining unit employees.
The training, the parties said, not only has helped improve labor relations but also has fostered friendship among the workers.
“It is important because it was hard for a lot of (Hispanic workers) to become involved in things,” Cooper said. “Now, quite a few of the stewards and alternate stewards are Hispanic, and things are getting better.”
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