In the scenario. The numbered, brown font shows when you need to respond. Directions for each question are
given at that time.
NOTE: Assume that all legal notifications to government offices for contract negotiations met the required
deadlines.
TIP: You may want to create a timeline for the events to help you understand the issues.
Characters
For XYZ Union For RST Company
President
Chief Negotiator/team leader = Bill Sharp
Grievance Chairperson
Shop Steward
Shop Steward #2 = Ravi
Rank & File
Strike Replacements: Marley, Juan, Rich, Frank
Grieving Employee = Barbara Stone
CEO
Vice President of Finance (VPF)
HR Director
Labor Relations Specialist = Paula
The president of the XYZ union (Union) convened a special meeting of the members to discuss the new
contract with its private-sector employer, the RST company (Company). Bill Sharp, the unions chief negotiator,
stepped to the front of the room.
Let me begin by saying that our negotiating team has been well prepared for this bargaining. Weve known
that it would not be an easy task and have anticipated the major issues. Weve been meeting twice a week at
the table for the last two months and have secured several of the demands that you wanted, such as standard
2-shift, advanced scheduling.
Delores, who plans to retire soon, interrupted: What did they do for the retirees? The retirees didnt get a
single increase in their pension benefits over the last three years. They should get a at least a 5% bump to help
them keep up with inflation.
Bill replied: Just like 3 years ago, the company has again refused to negotiate about that; so, no, were still
working on it. When we have a complete contract that is ready for ratification, well go over all of the provisions
with you. For tonight, we need to talk to you about an impasse.
As the murmurs in the room subsided, Bill shifted his body weight to his other leg and leaned toward the group.
At this point in the process, were negotiating the critical elementskeeping the work at our site if they open a
new location and health care benefits. The work-to-rule days we had and the informational picketing we
already tried were useful, but they are still digging in their heels on both of these important issues. Were not ?
likely to have a new contract agreed upon when our existing contract expires at the end of this month. We need
to start building for a strike. That means work all the overtime you can now and start saving. Well have to get a
campaign going in the shop, but also talk about a press and customer strategy. But at the end of the day, I
think well need to strike the company if were going to get them to give us a fair contract. You know striking
isnt the way most contracts are settled, but we need to prepare for the possibility. Tonight, we need to hear
your questions and comments. Remember that anything said in this meeting should stay here; we dont want to
tip them off about our plans plus the information could change during the rest of the process.
Here are questions the rank and file asked that evening. You need to provide the answer to each one. Write
concisely, limiting the answer to each to a maximum of one-half page. Use the specific statutory provisions,
terms and concepts covered in this course to support your analysis. Use APA to reference any borrowed
material.
1. If we do strike, I heard the company can hire new people to do our work. Will I lose my job?
2. I have a family and bills to pay. I heard there is a strike fund. Where does that money come from?
After another 3 weeks of negotiation, all of the issues had been settled except for the following items. Several
proposals crossed the bargaining table from both sides. The most recent ones were:
Union Recognition clause
Companys proposal = The company recognizes the Union as the sole and exclusive bargaining representative
of all production, maintenance, and product control employees in the New York facilities. This excludes office
and clerical employees, technical employees, sales staff, professionals, and security staff. Supervisors, as
defined by the National Labor Relations Act, are also excluded.
Unions proposal = Remove New York from the companys paragraph.
Management Rights clause
Companys proposal = The Union recognizes that management has full and sole rights to direct the workforce,
includi
ng the right to hire, transfer, discipline, suspend or discharge employees. It includes the right to
determine working hours, to assign overtime, to modify jobs, and to transfer work to any other company
location or to subcontract work.
Unions proposal = The Union recognizes that management has full and sole rights to direct the workforce,
including the right to hire, transfer, discipline, suspend or discharge employees. It includes the right to
determine working hours, to assign overtime, and to modify jobs. Exercising these management rights cannot
violate any other term of this contract.
The union also proposes to add this provision in the contract: Reassignment of Work
Work that is transferred to any other company location or subcontracted must be offered first to the New York
employees. If the first-refusal offer is not made, the company will pay both the NY employees and the workers
who perform the work for the time. If the NY employees decline the offer, no penalty will apply.
Health care premiums
Companys proposal = Employees will pay 20% of their health care premiums in the second and third years of
the contract.
Unions proposal = The company will pay 100% of the health care premiums in all years of the contract.
The president of the union, who is planning to run for re-election next year, scheduled a meeting with the
unions negotiation team leader, Bill.
President: So what are we going to do? What are the options?
Bill: They wont budge on these. We think theyre planning to open a new facility in a RTW state. If we dont
have protection of our jobs, they will shift the work there and well eventually disappear. We have to raise the
pressure.
President: Can we file an unfair labor practice claim with the Board about how they are refusing to negotiate?
3. Bill looks to you for guidance. In a short paragraph, explain whether this is a good strategy. Under what
provision would that be done? What is the likelihood that the union would win a case about the companys
bargaining conduct? Why? Write concisely, limiting the answer to a maximum of one-half page. Use the
specific statutory provisions, terms and concepts covered in this course to support your analysis. Use APA to
reference any borrowed material.
At the same time, the Vice President of Finance for the company, who has a bonus clause in his performance
plan which is based on cost reduction, meets with Paula, the Labor Relations Specialist who is leading the
companys negotiations.
VPF: So where are we now?
Paula: Down to the final wire. They might not have reached their resistance point and still be willing to discuss
the health care cost, but they are adamant about any language that suggests we could assign their work
elsewhere. Im pretty sure they are preparing for a strike.
VPF: Can they do that? I thought it was illegal.
4. Paula has explained strikes to the VPF before but realizes that it can be hard to remember which ones are
legal and which are not. Briefly explain again whether this particular strike is legal and why. Write concisely,
limiting the answer to a maximum of one-half page. Use the specific statutory provisions, terms and concepts
covered in this course to support your analysis. Use APA to reference any borrowed material.
VPF: Well, what is our Best Alternative to a Negotiated Agreement? BATNA, isnt that the right word? What
else can we do?
Paula: Yes, it is. Legally, in our circumstances, we likely can unilaterally implement our last proposal. As soon
as we do, however, the picket line will go up.
VPF: Is that horrible?
Paula: The operation managers tell me well have trouble filling our orders. Even strike replacements, which is
a major effort to put in place, wont be a total solution since they dont know the work. Some of the jobs have a
long learning curve. Well need to bolster security measures to minimize the chances of physical damage to
property and people. Then, there is the media. When were trying to expand our operations and convince the
county to give us tax breaks, bad press wont help. And, there may be damage to our long-term relationship
that could result in costly grievances throughout the life of the contract.
VPF: Well then? We have to get a handle on these constant overtime costs. They are blowing the budget every
quarter. Shifting the work to a lower-cost option is essential. ?