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Unformatted text preview: BUS353-01 Labor Relations Bargaining Issues 1. Wages Based on a local labor market wage survey, the company claims it is paying the industry average wage rate or above for its production workers. The majority of employees at St. Louis are machine operators earning a base wage rate of $9.20 an hour. The union members consider their wages to be inadequate and are demanding a $2.00 an hour increase for all job classifications. The members believe this will bring them closer to the wages received by most other area workers. The company considers the normal cost of labor in plastic manufacturing to be 15% to 20% of revenue. If the company has to pay above this percentage it would put the company into a difficult competitive position. Labor contracts that have recently been negotiated at comparable size manufacturing firms indicate wage increases of about 2.5%. The company at comparable size manufacturing firms indicate wage increases of about 2....
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This note was uploaded on 06/17/2011 for the course BUS 353 taught by Professor Henrynovak during the Spring '11 term at St. Xavier.
- Spring '11