Negotiations Assignment 2884c

Negotiations Assignment

Question 1 Toronto, Ontario (1035 employees) Average Hourly Wage Rate $ 30.00 Total Benefit Rate $ 7.50 Total Compensation Rate $ 37.50 (hourly only) AHWR = $30*1.20 = $36 WIB = 15%*$36 = $5.40 NWIB = 10%*$36 = $3.60

TCR = $36+$5.40+$3.60 = $45 Therefore, if Wilson Bros agrees to the 20% wage proposal presented by the union, the new TCR for the first year would be $45. Question 2 There are 800 employees in the union. Total hours per employee per year = 40*52 = 2080 hours per employee Pension plan = $500,000 Safety boots = $50*800 = $40,000 3.60*2080*800 = $5,990,400 Total NWIB = $500,000+$40,000+$5,990,400 = $6,530,400 Therefore, the new non-wage impacted benefit would be $6,530,400 after accepting the union’s proposal. Question 3 Since Jim does not believe he can agree to the union’s language on contracting out because it could severely limit the company’s flexibility, Jim should consider using different options to bargain with the union. Dealing with the issue of outsourcing, the language that must be focused on is relating to work environment of employees and their compensation. Jim should focus on offering alternatives in replacement for this removing the outsourcing term in the contract. The language he should focus on using should relate to the collective agreement. He should make sure that other options that are equally effective are being offered as a replacement, in order to avoid disputes between the union and company. One solution for this issue is that Jim can create an another contract and use that as a negotiating term with the union. He can suggest increasing wages in order to bargain out this term from the contract. Another solution Jim should consider offering is instead of laying off employees, the company can find other options such as wage freeze or unpaid time off. These suggestions can ensure to the union that employees will not be laid off on the event of outsourcing jobs.

Question 4 In response to the union’s request regarding the technological change clause, Jim can ensure that employees will not be laid off due to technological changes. Jim can suggest that the company will offer training to the employees so that they may master the new technological changes so that they may implement their training into their work. Examples may include training workshops offsite or hiring an expert to workplace to train employees on using the new technology. This strategy can benefit employees on the basis that they may develop and learn new skills that can be put to use. Jim should also note to the union that since they are providing

training to the employees, they reserve the right to terminate those who are unsuccessful in implementing the training of new technology with their work, as this can severely affect the company’s work flow. Upon discussing this contract term with the union, Jim should also bring up the request of including the management’s right clause in the union negotiation so that management does not lose all decision making power to the union. Question 5 Union proposal 7 – bulletin board request In regards to the union’s request on a bulletin board space on company premises, Jim should negotiate with the union on the specific location and regarding the bulletin board. He will ensure that the union will provide the material at their cost, and will be only allowed to post notice in that specific area where the bulletin board is located. Jim will find a location where the union can conduct their business along with a space to include the bulletin board. Union proposal 8 – deducting union dues In regards to the union’s request on deducting union dues, Jim will communicate with the union on the specific details regarding the amount of union dues and the specific date of collection. Union proposal 9 – probation period decrease from 90 days to 30 days In regards to the union’s request on decreasing probation periods from 90 days to 30 days, Jim will inform the union of the reasons why they choose 90 days as their probation period. He will outline the benefits of their choice. If an agreement cannot be made, Jim will suggest an offer in the middle, such as a 60-day period. However, the probation period is quite firm to be 90 days unless union strongly disagrees after hearing the advantages and benefits of implementing the 90-day probation. Union proposal 10 – rights to add proposals to the list In regards to the union’s request on having the right to add proposals to the list, Jim will negotiate with the union by requesting them to obtain management approval obtain adding proposals to the negotiation. He will also outline how adding new proposals can affect the whole negotiation process, as well as strain relationships between union and management. Question 6 Upon experiencing an ime during negotiations there are important processes that  management and the union need to follow prior to a legal strike or lockout scenario. Under the  Labour Relations Act, if both union and management cannot come to an agreement, they can   the government, in which the government will send a mediator to assist with the  collective agreement negotiations. By using a mediator to help with the negotiation, it will avoid 

the need for a strike or lockout which can affect many people in the company. After following  the mediations steps with the mediator, if management and union still cannot reach an  agreement, both groups have the option to enforce a strike or lockout.  Question 7 Upon mediation, the mediator has offer the details below as the final offer of settlement to  both parties: • Instead of a 20% increase on all job classifications, a 10% increase will  be applied  • Management will inform the union 3 months before any technology  changes in the company • After training employees to implement new technology with their work  responsibilities, if they are unable to apply and perform as expected, management has  the right to terminate those employees and outsource their jobs • Management will provide a space for the union or conduct union  business and a space for their bulletin board • Bulletin board materials and cost will be paid by the union • Probation period for employees will decrease from 90 days to 60 days  • Union will have the right to add proposals during negotiations ONLY IF management agrees and approves Memorandum of Agreement Between Wilson Brothers and United Food and Commercial Workers The Employer and Union representatives has agreed to implement the collective agreement  subject to the following amendments. Both union and employer has agreed to increase wages of all employees by 10%. Both union and employer has agreed to the  of termination on the basis that employees  cannot perform their job.  The employer will notify the union 6 months before any technology change is to be  implemented.  The employer will provide a space for the union to conduct their union business as well as a  space for the bulletin board (that will be the cost of the union) 

Both union and employer has agreed that probation period will be reduced from 90 days to 60  days Both union and employer agree that union may only add proposals to the negotiation process,  if approved by the employer. The parties agree to use their best effort to ensure that their principles will confirm this  memorandum of agreement.  Dated this 29th day of May 2019. 

For Employer

For the Union

References

Seneca College. (2019). HRM845: [Module 7 Preparing for Negotiations, The Company Mandate Document]. Retrieved from https://olportal.ontariolearn.com/.php?college=SE Seneca College. (2019). HRM845: [Module 9 Negotiations and the Memorandum of Agreement]. Retrieved from https://olportal.ontariolearn.com/.php?college=SE Suffield, L., & Gannon, G. L. (2016). Labour relations. Toronto: Pearson Canada.