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Calculating the Impact of Union Proposals on Wages and Benefits

1. Jim will need to calculate the impact of the 20% wage increase proposed by the union. In order to do this he will have to make the following calculations:-

a-show the impact on AHWR

b-show the impact on WIB

c-show the impact on NWIB

d-calculate the new TCR for Wilson Bros in the first year of the new agreement if the company actually agreed to a 20% wage proposal as presented by the union. (5 marks)

2. Jim will need to calculate the impact of the safety boot and pension proposal on the non-wage impacted benefit calculation in the first year of the new agreement.  He will assume each employee works a 40-hour week, 52 weeks per year.  Calculate the new non-wage impacted benefit (NWIB that would result from accepting the union’s proposals)? (5 marks)

3. Jim doesn’t think he can agree to the union’s language on contracting out because as written it could severely limit the company’s flexibility.  What language, if any, should Jim propose to attempt to resolve this issue? (10 marks)

4. Jim doesn’t think he can agree to the union’s language on technological change because as written it could severely limit the company’s flexibility. What language, if any, should Jim propose to attempt to resolve this issue?  (10 marks)

5. How should Jim respond to Union Proposals #7, #8, #9 and #10?  (5 marks)

6. If the parties reach an impasse during negotiations, discuss the process that they must follow prior to a legal strike or lockout scenario. Remember to cite relevant legislation (5 marks)

7. Negotiations have completely broken down and a Mediator has been appointed by the government to help settle the agreement.  Discuss the Mediator’s final offer of settlement to the parties and draft a Memorandum of Agreement between the parties on that basis. (10 marks)

1: Impact on Average Hourly Wage Rate (AHWR):

Increase in AHWR = $6

So, the increased average hourly wage rate is:

= $30+$6

= $36

Impact on Wages Impacted Benefits:

= 0.9

So, the increased wages impacted benefit is:

= $4.50 + $0.9

= $5.4

Impact on Non-Wage Impacted Benefits:

= 0.6

So, the increased Non-Wage Impacted benefit is:

= $3 + $0.6

= $3.6

Calculation of Total Compensation Rate

= $7.5

So, the increased Total compensation rate is:

= $37.5 + $7.5

=$45

So, from the above calculations, it can be said that if the company agree with the proposal presented by the union, the wages rate of employees will increase by 20%, which negatively impact on the firm’s profitability and increase the cost.  

Proposing Effective Language Solutions to Contracting out and Technological Change Clauses

3: It is essential for the manager and union to use the attractive and effective language in the contract, which resolves the issues and provides the success to the organization. In this, the language of the contract must address the central issues such as compensation, working conditions, work environment in an effective manner so that employees can be encouraged to actively participate in the organizational functions. In concern to Jim, the Union’s language on contracting out issue can be solved by making the alternative contract by Jim to the Union leader for negotiation (Dubb, 2014). In this, Jim can also provide the information related to the increase in wages and their impact on the firm.

In this, Jim should use the language of collective agreement, which can be effective in motivating the union leader to agree on the alternative solutions. It can also be supportive in mitigating the issues and ensure the employees’ effectiveness in the organization. in the agreement, Jim should provide the alternative actions such as if the employee unable to fulfill its roles and responsibilities then the firm has the right to immediately dissolve the contract without any consent of union and employee will be laid off as a result of contracting out work.   


4:
In order to reduce the technology change language, Jim should ensure the union that no one will be laid off due to changes in technology. In this, the company will also provide the training to the employees to work on the specific training. On the other hand, the company will also provide coaching to the employees to develop their skills and knowledge on the specific work and the technology in order to perform the roles and responsibilities effectively (Dubb, 2014). Jim can also develop the agreement between the union and management, which will indicate that after training, if the employee unable to perform their roles and duties, the firm has the rights to terminate employee from their responsibilities.

Along with this, Jim should also develop the bargaining contract with the union. In this, Jim should communicate the rights clauses of the management such as general clauses and specific clauses. It can be effective for Jim to use the new and latest technology for the operational work like production, marketing and HR. Along with this, in the contract language, Jim also include the acts provided by the federal and state governments such as Worker Adjustment and Retraining Notification Act and Employment Standard Act, etc. The inclusion of these acts in the agreement would be effective in providing evidence to layoff the employees due to changes in technology (Mann and Roberts, 2015).

Responding to Specific Union Proposals

5: In response to the bulletin board to the union, Jim should develop the agreement with the union. This agreement will include the conditions, rules and regulations related to the installation of bulletin board on the company’s premises. In this, Jim would also discuss the proposal with the management and take its permission to install the union bulletin board at company’s premises. Jim would also make responses by including the proposal in the agreement that the management will provide the particular space for the union bulletin board on the premises under the conditions. In this, the location of union bulletin board may be discussed in the labor-management meeting (Jeong, 2016). Along with this, the union shall pay 100% of the material and installation cost of the new bulletin board.

In concern to the deduction of union dues, Jim will discuss the proposal presented by the union with the management. In this, the union will ensure that its proposal related to the deduction of union dues from each bargaining unit member will be considerd at higher extent to resolve the issues and maintain effective relationship with the union members (Bennett and Kaufman, 2016).

In concern to the probationary period, Jim should agree the union members to establish a negotiation meeting at the company premises. In this, Jim will negotiate on the probationary period of employees as possible by describing the positive and negative side of maintaining 90 days of probationary period for employees.

In concern to add proposals during the negotiation process, Jim should write a letter or mail to the union and provide the brief about the negative consequences of adding new proposal during the negotiation process. It can be effective in maintaining the effectiveness of negotiation process (Bennett and Kaufman, 2016).

6: The strike or lockout situation is harmful for both employees and firm. In order to mitigate this situation, in the National Labor Relation Act 1935, both the parties may follow the proper process after the impasse in negotiation. In this, either the management or union may ask to the government to appoint a conciliation officer in order to assist the parties to reach the agreement. If both the parties have not reached to the agreement, the parties will ask to the government to provide the services of mediator to reach to a collective agreement. In this, both the parties must follow the Uniform Mediation Act provided by the federal government to reach to a collective agreement. The consideration of this act would also be effective for both the parties to maintain effective relationship with each other (Jeong, 2016).

Following the Process in Case of an Impasse and Legal Strikes

But, if there is no progress towards the agreement, both the parties may engage in the legislated economic sanctions such as strike and lockout. But, in these situations, both the parties have the options of continuing the bargaining process under the existing terms of the collective agreement.

7: In the final offer of settlement, the mediator will propose following offers:

The company will increase the wages of the employees by 10% to all job classification.

If employee does not perform the assign role and responsibility, the firm has the right to layoff the employee as a result of contract out work.

The firm will provide training to the employees about the new technology and company will give 6 months written notice to the union prior to technology change

The firm will provide the bulletin board to the union in the company’s premises

Employee probationary period will be 2 months or 60 days

Union has no rights to add proposals during the negotiation process.

This agreement is effective from 2nd of August, 2016 to 1st of August, 2017 between the labor union and the management of the Toronto. The agreement sets out to negotiate the renewal of the collective agreement.

Now, therefore, the employer and union agree as follows:

The provision of the current collective bargaining agreement, effective August 1, 2015, and modified by Memorandum of Agreement dated 2nd August 2016 shall apply except as modified by this agreement.

While receiving all rights of the Employer as provided for in Section 89-9d, the employer and union jointly agree to increase the wages of employees by 10% in all the job classifications.

The employer and union jointly agree to layoff the employees if the employee does not perform his/her job, roles and responsibility.

The employer gives prior six-month notice to the employees and union about the technology change. In this, the employer shall coordinate with union in the development and conduct of training to the employees to work over the new technology

The employer will also provide the bulletin board to the union on the company’s premises. In this, space will be provided after labor-management meeting.

The employer and union jointly agree to reduce the probationary period from 90 days to 60 days.

The union and employer jointly agree that the union has no rights to add proposals at any point during the negotiation process.

In witness whereof, the Employer and Union have signed this agreement as per the above written day and year.

References

Bennett, J. T. and Kaufman, B. E. (2016) The Future of Private Sector Unionism in the United States. UK: Routledge.

Dubb, S. (2014) Logics of Resistance: Globalization and Telephone Unionism in Mexico and British Columbia. UK: Routledge.

Jeong, H. W. (2016) International Negotiation: Process and Strategies. UK: Cambridge University Press.

Mann, R. A. and Roberts, B. S. (2015) Essentials of Business Law and the Legal Environment. USA: Cengage Learning.

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[Accessed 29 February 2024].

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