DRAFT Honeywell Readiness Plan for Corporate Union Campaigns

1. DRAFTHoneywell Readiness Plan for Corporate Union Campaigns Stevie Coleman Jeff Johnson Ellie Murray Tyler Nielsen

2. Video example

3. Toolkit Vision and Objective Vision The Honeywell Readiness Plan for Corporate Union Campaigns has been developed to proactively, quickly and efficiently respond to a corporate union campaign on Honeywell International. Objective To develop a framework that can be used by Honeywell with the resources required to prevent or react to a nationwide corporate union campaign and dissipate any problems as quickly as possible.

4. What is a Corporate Campaign? Definition • An organized effort by one or more unions to increase national awareness of local business issues, and to increase support in its pursuit of gaining concessions from corporations, either in organizing or collective bargaining.

5. Problem Description and Overview Honeywell is at significant risk of becoming the target of a national union corporate campaign and has no readiness plan in place to deal with this possibility. Highly visible company with large political contributions Decline in US membership; 6.9% of HON sites are unionized Local HSE and Human Rights campaigns escalate quickly Union retaliation to HON work action

6. Benchmarked Companies Break down barriers, localize issues!

7. Union Strategies Institutional Shareholders Board of Directors Employees Corporation Regulators & Legislators Bankers & Creditors Other Unions Customers & Suppliers Social Media & Community Outreach

8. Internal External Project Map Corporate Campaign Overview Govt. Relations Global Security LER Communications Legal Toolkit

9. Labor and Employee Relations LER Global Security Govt. Relations Communications Legal

10. LER – Corporate Campaign Risk System • LER assists SBG’s to identify high risk sites • PER Survey • Corporate Campaign Risk Assessment Survey • Common Triggers Presence • Local Comp & Ben Data • Political Climate • Community Relationship • Supplier & Customer Dependency • International ties • Further toolkit usage based on risk level 2010 NLRB Union Recognition Elections U.S. rate = 11.8% ACS 20% or more Aero 15% to 19.9% 10% to 14.9% PMT 5% to 9.9% TS 4.9% or less Alaska Hawaii

11. LER – Online Monitoring

12. LER – Knowledge Management • Develop tool that allows LER to track union activity on a nationwide basis • Serves as a supplement to site-level procedures already in place – will capture plant data and store for future use • Gives LER ability to analyze trends and preserve information • Creates a master index in a central location that aggregates data and offers easy access • Organizes information and allows for electronic storage

13. Communications LER Global Security Govt. Relations Communications Legal

14. Communications – Online Presence Develop public webpage that is ready to be published in the event of a corporate campaign • Topics to include: HON’s stance on unions, escalation triggers, position papers addressing union attack trends, educational facts, Hometown Solutions, public image improvement, etc. • Options to include: a previously developed page, to be published as needed, on both Honeywell’s corporate site and individual plants sites (if applicable) to localize the campaign impact

15. Social Media • Easy proactive tool • User Friendly • Instant Information • One-way media relations done through social media • Continued ability to discretely monitor • Social media links positioned on Honeywell website • I Am Honeywell

16. I am Honeywell

17. Government Relations LER Global Security Govt. Relations Communications Legal

18. Government Relations • Continue to grow positive relationships • With elected officials • With Federal agencies, focusing on local branches • Hometown Ambassador Program • HON influence in political sphere • Company interest in legislation and regulation • Manage politician involvement • Ensure legal compliance at all stages of campaign and negotiations • Union spending HON has great relationships with Federal officials, focus is needed at the State and local levels

19. International • General awareness of international issues • EMEA, APAC, Americas • Increased collaboration of national unions at the international level • Honeywell US Unions meet with European Union Leader • Possible Vulnerabilities • Government Relations / Legal • International Treaties • Foreign Treaties enforced on multi-national organization • Common Triggers • Human Rights • Outsourcing

20. Legal LER Global Security Govt. Relations Communications Legal

21. Legal • Partner with other functions to ensure compliance • HRGs must give training to site leaders on how to communicate with employee populations during campaign by reinforcing the training LER does • Legal Considerations and Guidelines During Union Organizing Campaigns • Library of already approved legal communications ready to be launched should they be needed nationally • Unfair Labor Practices (ULP) Prevention • Approve all communications

22. Global Security LER Global Security Govt. Relations Communications Legal

23. Global Security • Partner with LER to prepare action plans for: • Retaining and protecting assets • Employees, executives and board members safety • Business continuity • Training local security personnel • Warning signs of union activity • Escalation process – Post orders • Know your legal boundaries Protecting HON personnel and property

24. Toolkit Framework • Corporate Campaign Risk Assessment System and Survey • Campaign Knowledge Management Tool • Focused Online Monitoring • Positive Social Media Engagement • Online Site covering Honeywell’s Labor Policies • Deployable Webpage Specific to Each Site LER Govt. Relations Global Security Legal Communications Corporate Campaign Toolkit

25. Questions?

26. Appendix

27. Campaign Overview

28. Common Campaign Warning Signs

29. High Level View of Current Escalation Process

30. Union Activities • Unions contact employees or if employees are dissatisfied, they contact a third party on their own • Leadership failure at site • Signing of Union Authorization Cards • 30% sign goes to vote • 50% sign no vote needed for recognition • Secret Ballot Vote after 45 days

31. Possible Increased Risk • Micro-unions • Recognition • Quickie elections • Most likely to be 21 days from filing, shortened from average of 45 days 30-40% cost increase off the bottom line if a union comes.

32. Functions

33. LER – Risk Assessment Survey Corporate Campaign Risk Assessment Example Survey Scoring = 10 Scoring = 7 Scoring = 3 Scoring = 1 Local politicians are partial to labor causes, but have a working relationship with HON. Some HSE issues exist and compensation and benefits practices trail the local market. Somewhat dependent on a small assortment of C&S and currently have less than positive relationships. A fair amount of diversity among C&S and relatively good relationships. Local politicians are partial to the private sector and may have a good relationship with HON. Few or no HSE issues exist and compensation and benefits practices are close to local market average. C&S base is diverse with no large dependence on any singular business. Positive relationships with most C&S. Local politicians are pro-business and draw little support from unions. Positive relationship with HON. Few or no HSE issues exist and compensation and benefits practices far exceed local market averages. Great dependence on very few C&S. Relationships are often turbulent. Local politicians are pro-labor and often campaign for union causes. Limited to no relationship with HON. Major HSE issues exist with pending investigations and large amounts of media coverage. Government Relations Seek to proactively maintain positive relationships with local politicians, forging strong alliances to promote business objectives. Comments = Comments = Comments = Score = Score = Score = Customer & Supplier Relations Create productive and positive relationships with customers and suppliers. As much as possible, seek to have a diverse array of both customers and suppliers. Corporate Campaign Triggers Prevent against the occurrence of common campaign triggers. Seek to mitigate risk when these possible triggers are present. * Total Score = * Total Score is identified by adding the score from each category and writing it in the Total Score area.

34. Communications – Google Results • Only way to optimize placement on search is through relevancy and page quality • Must make the keywords you are searching a headline or made part of a page on HON careers website • Current state: • Search ‘Honeywell Jobs’ and a monster.com ad comes up, meaning they’re buying our ads • Search “Working at Honeywell” and no ads pop up, meaning we can still purchase these keywords • Search ‘Honeywell Unions’ & Metropolis’ anti-union site is the third search result • Looking ahead: • Bid on keywords to change results page and purchase placed ads from Google • Optimize pages so that results are enhanced and link to internal, not external, sites

35. Government Relations • GR strives for positive relationships between HON and politicians, especially State and local • Way to serve HON interest within the political sphere (i.e., influence of regulation and legislation) • These connections would be developed regardless of union activity, but become part of a management strategy within a campaign • Keeps elected officials informed, but not involved if union activity occurs • Ensuring legal compliance • POC during campaigns • Local efforts • Break up union cohesion • Grow relationships with Federal agencies at State and local level • Local examples: Chamber of Commerce, community outreach, etc. • Easier campaign management

36. Government Relations – Union Spending

37. Government Relations – Union Spending

38. International – Key Findings • Americas • Mexico • Failed pressure by US Unions • Government Relations • Canada • Many US unions have a presence in Canada • Corporate decisions on sub-contractors • APAC • Risk • Human Rights Violations • Large gathering of manufacturers (Aero) • Government Regulated Unions • China and Singapore • Strong, US-like Unions • Korea and Australia • EMEA • Metropolis, Illinois • Euro Works Council • Seelze Plant • Conde, France • Solidarity Day to slow down work at Honeywell sites throughout Europe failed • IndustriALL • International Federation of Chemical, Energy, Mine and General Workers’ Unions (ICEM), the International Textile, Garment, Leather Workers’ Federation (ITGLWF), and the International Metalworkers’ Federation (IMF) • US Outreach • Honeywell US Union Council • Metropolis, Hopewell, Claymont, Jacksonville, Buffalo, and Hamburg, Germany

39. Legal – Communicating w/ represented employees & media DO DON’T No threatening language Do not undermine or disparage union No promises Do not propose anything that has not been proposed to and negotiated with the union first Do not convey company is the employees’ protector Do not “spin” or exagerate Bargain through the media Direct deal with employees through the media • Include acknowledgement that we recognize the union as the employees’ exclusive bargaining representative • Communicate ONLY factually accurate information • Make clear if information is opinion rather than fact • All information must have been communicated to the union first • Provide a copy of the communication to the union BEFORE communicating to employee • Ensure consistency with all employee, internal, external and union communications

40. Research

41. Internal Research • Anniston, AL • Kansas City, MO • Torrance, CA • Shreveport, LA • Metropolis, IL • Muncie, IN • Spokane, WA • White Oak, MD • Prince Edward Island, ON, Canada Union activity has occurred at each of these sites

42. Metropolis • June 28, 2010 – August 2, 2011 • 228 Employees • United Steelworkers Local 7-669 • Uranium conversion facility • Social Media • usw7-669.com • Twitter.com/usw7669 • Facebook.com/honeywelllockout • YouTube

43. Additional Best Practices • “Sensing” Meetings • LER team members meet with their counterparts at their suppliers, customers, and even talk regularly with their competitors to gauge union activity, risk, avoidance strategies, and defense tactics • Customer-Supplier Support • Proactive and reactive support across the various functions • 24-hour hotline • Straw-polls in regular meetings • Consultants to do risk assessment • Internal Communication Monitoring • Politician and Media Tours • Comp & Ben dictated by risk level • Security Cameras • Corporate Campaign Responder Team

44. BMW • UFCW • Financial Pressure • Minnesota – 1986 Trying to copy the success of the ACTWU against JP Stevens, the UFCW attempted to create financial pressure against Hormel by attacking their main bank, First Bank. The campaign saw very limited success and solidarity between unions and ultimately failed. http://projectionsinc.com/blog/2011/07/22/corporate-campaign-101-the-teamsters-and-bmw/

45. Boeing • IAM • Governmental Pressure • South Carolina/Washington – 2009IAM retaliated against SC plant for kicking out the union by filing complaints against Boeing to the NLRB for moving production of the 787 to SC. NLRB admitted that it wouldn't have happened if SC plant was still unionized. Boeing had to pledge new contract to Seattle plant to build new 737 MAX line at the unionized plants. NLRB much scrutinized by business and republicans for going after a groundless complaint that truly sought to control business decisions.http://www.redstate.com/laborunionreport/2011/12/29/union-retaliated-against-boeings-south-carolina-employees-nlrb-charge-alleges/http://online.wsj.com/article/SB10001424052970203413304577088374112815392.html#articleTabs%3Darticle

46. Cintas • Teamsters • Multi-site attack • 2003-2011 Threat of work sent offshore. Handbills, flyers, OSHA visits increase, contacting religious groups to put fliers in church bulletins, developed negative websites about Cintas, whitepaper sent to investors, some financial analysts filed lawsuits, held rallies, attended Labor Day functions to draw up media interest across the country http://www.cintas.com/company/news_media/workplace-of-choice/union-question-answer.aspx

47. Coca-Cola • No specific union • Media Campaign • Global Coca-Cola has experienced a multitude of local, national, and global campaigns over the years. As these instances have unfolded, they have noticed a trend develop – use of the Internet. These campaigns have allowed unions and labor activists to organize via the web and disseminate information to possible new recruits, and offer Coca-Cola little protection. http://killercoke.org/

48. General Mills • BCTGM • Multi – Site • Mid-West The BCTGM showed up one morning distributing handbills and union information. The union held picnics and bbq’s and invited current union workers from other plants to befriend and influence union prospects. General Mills responded with Corporate LER offering training and education for employees, flyers to employees homes, and held regular Q&A sessions for employees. Union was unsuccessful in its organizing.

49. Denso Corporation • UAW • Multi-site • Midwest/South – 2006The UAW conducted a multi-site campaign when one morning they showed up hand-billing and hosting meetings/parties at five Denso Corporation sites in Michigan, Tennessee, and Arkansas. The attempt was unsuccessful as Denso quickly reacted with defense and education campaigns at their various sites, coordinated by their head labor leaders. Toyota owns 23% of Denso and it’s cheaper, unorganized labor costs is a big factor in Toyota’s success in the US. Thus, it is seen as a stepping stone for possibly organizing Toyota and other foreign manufacturers. http://www.uawatdenso.org/index.php?option=com_content&task=blogcategory&id=14&Itemid=41

50. Honda • UAW • Supplier & Customer Pressure • Midwest/South – CurrentThe UAW has been outspoken in their desire to organize foreign auto-manufacturers who have an extremely large body of unorganized labor. Many attempts to organize Honda directly have failed, so the UAW attempted to organize their suppliers and put pressure on their customers to squeeze Honda from both sides. Attempts to organize Yusa and Denso, two large auto-suppliers, were carried out unsuccessfully. The UAW is also picketing foreign dealerships in hopes of organizing them all. http://www.leftlanenews.com/uaw-begins-picketing-toyota-dealers-nationwide.html