Labor Management Relations

Management enjoys good relations with labor unions, which include less than 5% of the county’s manufacturing employers. None of the county’s warehousing or distribution companies are unionized. Out of 11 elections since 1980, only three manufacturing employee groups have chosen union representation. Since 1988, there have been two cases (i.e. DeKalb Forge and UARCO) of union withdrawal or de-certification. Moreover, union organization efforts have failed at Sycamore Systems (Sycamore) and SCA (formerly Alloyd) (DeKalb).

The primary local unions are the International Union of Electrical Workers (IUE), the Teamsters, and the International Association of Machinists and Aerospace Workers (IAM or IAMAW). Relative to organizing companies, these unions have been inactive for the past decade. Furthermore, there have been no strikes by organized labor in manufacturing since 1989.

Labor-Management relations were investigated by PHH Fantus Company in 1988 as part of a community/county economic development assessment. PHH Fantus concluded that local labor-management relations were competitive with many “right to work” states. There have been two successful union organizing activities since the PHH Fantus report.

Generally, local employees have not sought union representation, and local human resource managers are proactive in maintaining competitive wages and benefits.

The two successful elections were at Engineered Storage Products (2001 - DeKalb), and Johnson Controls (2003 - Sycamore). Each of these had some unique circumstances. Engineered Storage Products was sold by A.O. Smith Company to CST of Kansas City in early 2001. CST directed that a different health, medical and retirement package be imposed on the work force, and the workers soon circulated an election petition and organized with the Teamsters. In the Johnson Controls case, the plant supplies auto seating to the Belvidere Chrysler Assembly plant. Johnson Controls has recently agreed with the UAW to allow auto parts plants to be organized without management intervention or opposition. Earlier, the company won a union election.

A third unionization effort became unsuccessful when the plant closed after only 22 months of operation. ENCoat was a supplier to Caterpillar Agricultural Products and AGCO and had partnered with Ryder Logistics for supply of painted components to the AGCO (former Cat) plant. Management invited the Teamsters to represent the employees due to daily interaction with union truck drivers and union Cat/AGCO workers.