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This information pertains to a labor union in a simulated firm in Glen Ellyn.

For this assignment, analyze the information below from BOTH the management and employee perspective. This information pertains to a labor union in a simulated firm in Glen Ellyn. The first part of your information relates to Management - the second part relates to the Labor Union employees. I have provided you with information on negotiations at the plant in 2015. It is now time to begin preparing for negotiations for 2018.

Your assignment needs to include the following information:

·       Considerations for Management as they begin to prepare for negotiations

·       Beginning offer to the plant workers

·       Final offer to the plant workers

·       Considerations for Labor Union employees as they begin to prepare for negotiations

·       Beginning offer to management

·       Final offer to management

·       Analysis of what you have gained from this assignment and insights you now have into labor union negotiations

Format this assignment using the section headings such as you see below with "Management" and the "CPFac Workers Labor Union". Be very clear about the information required above.

 

Management -

Put yourself in the role of President and Owner of Cooper Plastics Corp. located in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc.

There is a union, CPFacWorkers, representing the 95 factory workers at Cooper Plastics.

It is time for the management team at Cooper to negotiate with the CPFacWorkers.

Your negotiations document needs to include the following:

·       Length of contract in years

·       Base pay

·       Annual increases

·       Shift pay differential

·       Overtime pay

·       Number of workers per shift

·       Benefits percentage of salaries

·       Annual paid sick days

·       Annual paid holidays

·       Total increased costs

·       Source of money for increased costs 

Data from Current Contract, which expired in December 2017:

·       Contract began in March 2015

·       CPFacWorkers conceded to 20 layoffs when negotiating the 2015-2017 contract

·       Remaining workers agreed to a 10% pay cut to help the company continue to recover from the recent US recession

·       Sick days were reduced from 10 to 6

·       Holidays reduced from 10 to 6

·       Shift differential pay: 

  • 3pm-11pm  $0.50 3/13-3/14 $.25 3/14-3/16
  • 11pm-7am   $1.00 3/13-3/14 $.35 3/14-3/16

·       Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

·       7am-3pm shift - 50 workers - $1,040,000

·       3pm-11pm shift - 30 workers - $624,000

·       11pm-7am shift - 15 workers - $312,000

·       Managers - 10 @$30K, 2 @ $40K, [email protected]$50K, Pres/Owner $75K

·       Overtime - time and a half; 2014-2015 no OT has been worked

Sales:                                                             Profits:

·       2014 $4,000,000                                         2014 $1,040,000

·       2015 $5,250,000                                         2015 $2,392,000

·       2016 $6,000,000                                        2016 $3,300,000

 

CPFacWorkers Labor Union -

Now, put yourself in the role of the negotiating team representing the CPFacWorkers labor union at Cooper Plastics in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc. There is a total of 95 factory workers in the bargaining unit of your union.

It is time to negotiate with the Cooper Plastics management team.

Your negotiations document needs to include the following:

·       Length of contract in years

·       Base pay

·       Annual increases

·       Shift pay differential

·       Overtime pay

·       Number of workers per shift

·       Benefits percentage of salaries

·       Annual paid sick days

·       Annual paid holidays

·       Total increased costs

·       Source of money for increased costs 

Data from Current Contract, which expired in December 2017:

·       Contract began in March 2015

·       CPFacWorkers conceded to 20 layoffs when negotiating the 2015-2017 contract

·       Remaining workers agreed to a 10% pay cut to help the company recover from the recent US recession

·       Sick days were reduced from 10 to 6

·       Holidays reduced from 10 to 6

·       Shift differential pay: 

  • 3pm-11pm  $0.50 3/13-3/14 $.25 3/14-3/16
  • 11pm-7am   $1.00 3/13-3/14 $.35 3/14-3/16

·       Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

·       7am-3pm shift - 50 workers - $1,040,000

·       3pm-11pm shift - 30 workers - $624,000

·       11pm-7am shift - 15 workers - $312,000

·       Managers - 10 @$30K, 2 @ $40K, [email protected]$50K, Pres/Owner $75K

·       Overtime - time and a half; 2014-2015 no OT has been worked

Sales:                                                             Profits:

·       2014 $4,000,000                                         2014 $1,040,000

·       2015 $5,250,000                                         2015 $2,392,000

·       2016 $6,000,000                                         2016 $3,300,000 

Other Considerations:

·       The United States appears to have come out of its 2008-2010 recession, though there are those who are beginning to say it will return in 2018 as recent stock market fluctuations may confirm.

·       Cooper has new products scheduled to be coming out in mid-2018, which may help stimulate growth in the firm's revenues and profitability.

·       Management at Cooper does all hiring, scheduling, firing, and promotions.

·       It has become increasingly difficult to get employees to work the 3-11pm and 11pm-7am shifts. Absenteeism is high on these shifts and productivity on both of these shifts are lower than on the 7am-3pm shift.

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