Thursday, February 6, 2014

Beneficial Constraints

"[Harley Davidson] knew it had to keep employing members of the International Association of Machinists and United Steelworkers, who were paid far more than nonunion workers in the South and several multiples of the going rate in Mexico. The company could only compete by redesigning the production system so that each worker created more value than they cost … Harley’s very existence was in question in 2009. Today it is a manufacturing role model, and that has a lot to do with its workers. The average tenure of a line worker at the York plant is 18 years, and these workers are extremely devoted to the company … Costs have fallen by $100 million at the plant and quality has improved even more significantly." -Adam Davidson, Building A Harley Faster

The blog post's title — also referenced in the article quoted — refers to a concept developed by Wolfgang Streeck which encourages the development of a long-term cooperative relationship between employers and their employees.

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