ABC-round1 (1)_Notes - Section 3 On-going Negotiations...

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Section 3 On-going Negotiations (Group 7 Pay-off Matrix) Operation of the new plant=325 points for complete management control of operations, 250 points to double production targets, 0 points if kept the same Incentives=325 points for complete elimination of incentives, 162.5 points if cut in half, 0 points if left as is Escalator=200 points escalator clause if eliminated, 100 if agree to postpone payment until after new plant is built, 0 points if left as is Wages= 100 points if wages kept at $9.00, minus 25 points for each half-dollar/hour more. 0 points if left as is. Reservation point is a total of 600 points. At this stage, it is difficult to quantify how many points we would assign for partial management control of the plant, or for partial elimination of incentives. We will be better able to assess this with information from the first round negotiations. As far as priority goes, we felt the operation of the new plant stems from management control, which is the overarching element that effects much of the way the business is
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This note was uploaded on 02/19/2009 for the course NBA 666 taught by Professor Mellisathomas-hunt during the Fall '07 term at Cornell University (Engineering School).

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ABC-round1 (1)_Notes - Section 3 On-going Negotiations...

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