In-sourcing as a Strategy for Reclaiming Union Work

Abstract

Drawing on examples from the automobile and medical products industries, this paper outlines an approach for confronting outsourcing. Two dimensions define the approach. The first in volves a direct challenge to the costing method used by manage ment in make-or-buy decisions; for various reasons, management often employs a flawed comparison method that unfairly burdens in-house operations. The second dimension involves a shop-level process for systematically collecting data on the full range of costs associated with outsourcing, and then incorporating such costs into the make-or-buy comparison. This paper concludes that the present economic conditions of diminished capacity utilization and layoffs present an opportunity for unions to in-source work and reemploy union members.