XYZ Corp started as a small business and tripled in size. It has 150 employees. XYZ Corp ships books nation wide and consists of union workers. The Packers Union is strong and growing. Because of rapid growth, XYZ Corp’s compensation and reward system are out dated. The Packers Union is demanding an organizational review because they feel the company’s compensation is below industry standards. The Packers Union representative, Jack Frost, indicated changes need to be made immediately because retention levels are dropping. Frost informed XYZ Corp he will present his concerns at the next board meeting.
XYZ Corp has asked its CEO, Tom Evers, to develop a compensation program satisfying union employees.
Tom must consider some compensation dimensions: 1) Pay for work and performance, 2) Pay for time not worked, 3) Loss of income continuation, and 4) Benefits and services.
Tom has looked into these compensation strategies: 1) Incentive payments, 2) Base wages and salary, 3) Wage salary and add-ons, and 4) Benefits and services
There are many laws and acts that may affect Tom’s decision making because XYZ Corp is unionized.
Case Study Questions
1. Tom Evers has a couple of choices when considering to implement a viable compensation package. Select two considerations and explain why your choices are important to the Packers Union. For each selection, your minimum response should be 75 words.
2. Select two compensation strategies that may help XYZ Corp’s retention rate. Explain why you’ve chosen those two. For each selection, your minimum response should be 75 words.
3. List Laws that may affect union compensation. Select a minimum of two laws. Explain why or how your chosen laws affect union compensation. The minimum response should be 100 words.
This question was asked on Jan 23, 2013.
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