Final Paper_Essay - NBA666 NEGOTIATIONS FINAL GROUP PAPER...

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NBA666 NEGOTIATIONS FINAL GROUP PAPER
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MEMORANDUM TO: ABC MANAGEMENT TEAM FROM: ABC NEGOTIATION TEAM SUBJECT: ROUND THREE NEGOTIATION WITH LOCAL 190 DATE: 10/5/2009 CC: The purpose of this memorandum is to summarize, and explain the merits of, the agreement ABC has reached with Local 190 as a result of our recently-concluded third round of negotiations. We agreed to the following terms with Local 190: 1. When and if additional layoffs are necessary, the union will be able to determine 50% of the layoff pool based on their criteria, with the company determining the composition of other 50% of the pool of employees to be laid off. Similarly, the union will have the right to determine 50% of the pool of workers to be rehired. 2. Hourly wages will be set at $12.00. 3. A committee with 50/50 representation between the workers and the management will be formed to determine work rules, with management breaking any ties. Discussion about an incentive plan for workers will be taken up by this committee in due course. Merits of points in this agreement 1. Agreeing to 50/50 Management/Union control on layoffs and rehiring was simply a compromise between the two parties positions. Obviously both sides would prefer to have control of who is laid off and who is rehired. Each side controlling half left both sides adequately satisfied. 2. A $12.00 hourly wage was in line with emerging industry standards, and, we felt this increase necessary to avoid a costly strike. Moving wages to $12.00 per hour was near our ceiling, though less than what at least one of our competitors is now paying. 3. With management able to break any ties, the company ultimately maintains control over work rules. However, the hope is that a committee composed of both management and union representatives can explore areas of concern to their respective sides and come to a consensus over work rules. Ultimately, the ABC negotiating team feels that this arrangement should results in the workers having greater buy in to work rules, which will foster genuine acceptance of those rules. Summary: This was a challenging negotiation for ABC. We believe that this agreement will allow the company to continue to be run profitably and efficiently, while avoiding a costly strike that would could irreparably harm the harmonious labor-management relations we have enjoyed at ABC for many years.
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To: Local 190 Union Membership From: Local 190 Negotiation Team Date: 12/05/07 Subject: Round 3 Negotiations with ABC Management Team This memorandum serves to summarize and explain the merits of the agreement that we have recently concluded on your behalf with the ABC management team during the final round of negotiations. The Local 190 team has agreed to the following terms with ABC: 1. When and if additional layoffs are necessary, the union will have the right to determine the composition of 50% of the total layoff pool, while the company will have the right to determine the composition of the remaining 50%. Similarly, the union will have the right
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This essay 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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Final Paper_Essay - NBA666 NEGOTIATIONS FINAL GROUP PAPER...

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