Winner
International Truck and Engine Corp. and Hill & Knowlton: High-stakes labor negotiations – UAW and International Truck and Engine

Organizing labor negotiations can be, in the words of one judge, “brutal.” That was just the situation confronting International Truck and Engine, which sought a new five-year master contract for 7,100 employees represented by the United Auto Workers (UAW) union. But crucially, for the first time, the company had enough nonunion plant capacity to be able to sustain a strike. The tricky balance was preparing for a potential strike in full view of union workers – making arrangements for rerouting production and enlisting nonrepresented employees – without causing a breakdown in negotiations or inciting any work disruptions.

Corporate communicators worked closely with plant communicators to provide key audiences, including employees, local media, and community officials, with consistent messages that explained the company's side of the story. The team also had to support communications at nonunion facilities to ensure continued production. Key objectives were to prepare employees to accept proposed contract changes, assure external audiences that International could continue to perform in any conditions, and facilitate the negotiation process regardless of events.

To achieve these goals, a broad-based communications team developed messages that supported fair negotiations but did not comment on specific content. Working with the negotiating team, key issues were identified and employees were kept informed. Credible sources outside the company were secured to respond to media and support management's view. Overall, channels that had been established since the last negotiation were used to communicate openly without looking reactive or pointed.

A four-stage tactical program was then implemented. The first stage was called “set the tone,” which included leadership conferences by the CEO and the development of written resources and third-party endorsements. The second stage was to “reach out,” the third was “negotiate,” and the final stage was “recover.”

The ultimate validation of these efforts occurred when the company achieved a new contract without a strike. Although the old contract expired without an agreement, the UAW and International continued to negotiate for an additional 26 days, and employees worked without a contract. The new contract was ratified by 54% of the UAW members and stipulated greater employee sharing of rising healthcare costs, among other changes.

The objective to assure external parties that International would be running business as usual throughout the proceedings was also met. Analysts and media expressed confidence in the company during the negotiations, and employees continue to boost productivity at union and nonunion plants alike.

Honorable Mention
Providian Financial: Building the new Providian Financial

Embattled by a plummeting stock price – from a onetime high of $120 per share to just $2 at the start of 2002 –  and the resignation of its CEO, Providian was in tatters and employee morale was at an all-time low. A new CEO initiated changes to the management team, and it took drastic action. As the company began work to rebuild, a strategy was developed to reposition it as one focused on servicing middle America. But none of this could be successful without the buy-in of employees. As the result of its “show me” strategy that allowed staffers to participate by communicating openly at every step of the way, research showed that 85% were “more optimistic” about the company's future, and 93% said they had a better understanding of the firm's overall strategy – up from 55% at the beginning of the year. “This was a sound tactical program,” one judge praised. “All the pieces are there for a small budget,” said another. “This gets high grades for productivity.”

Finalists 2004
Fleishman-Hillard and SBC Communications: Stand & deliver

International Truck and Engine Corp. and Hill & Knowlton: High-stakes labor negotiations – UAW and International Truck and Engine

Matha MacDonald and United Airlines: Transforming United Airlines

Providian Financial: Building the new Providian Financial

RadioShack Corporation: “Think Customers First” strategic platform

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