Management and Labor Relations Techniques of Japanese-Owned Automotive Assembly Plants in the United States

Abstract

This field project involves a study of the Japanese-owned automotive assembly plants, or “transplants,” in the United States and the management and labor-relations techniques that have made them successful. The management and labor-relations aspects of the transplants are compared and contrasted to those of the American-owned, Big Three auto plants. The success of the transplants is measured and analyzed using J.D. Power data for initial quality and Harbour Report data for plant efficiency. The study identifies six major factors that have led to the success of the Japanese transplants, in terms of management and labor relations. These are 1) Non-unionization (with some exceptions). 2) Organization of workers into empowered production teams. 3) Lean production systems. 4) No-layoff policies. 5)Recruitment socialization. 6) Excellent relations with suppliers. Each factor is discussed in detail. A literature review of authoritative books on the subject of the Japanese transplants is included, as well as a brief history of the transplant phenomenon over the past 25 years. It is anticipated that this study will provide a clearer understanding of the success of Japanese management and labor-relations techniques through their application in automotive manufacturing in the United States.