Making the Case for Insourcing by Mike Parker, UAW Local 1700, Labor Notes
In some cases, such as at the Big Three auto companies, unions have specific contract language to use. The company must notify the union of its intention to outsource work and the union has 90 days to make a proposal showing the savings from in-house work. It’s not much—management still has the final decision.
In most contracts the union has no rights at all in this area. But the union can try demonstrating cost-savings as a way of applying pressure on one section of management to make the right decision.
Accurately calculating the full costs of a job takes considerable skill, time, and knowledge. Despite management’s obvious advantages, unions may have some of their own.