Analysis of Labor Relations Contracts
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When considering labor relations and working from the union side of a contract, what are some of the advantages to having a long contract (5 years) versuses a shorter contract? How will having a long contract save the company money? What are some ways the company can promote incentives to the union labor force when negotiations are underway? Should the union cap the quantity of work on a shift, i.e. Auto industry cap how many cars are made in one day, to help improve quality?
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You have asked for an opinion answer to the following questions from a union contract negotiation standpoint.
1. What are some of the advantages to having a long contract (5 years) versus a shorter contract?
-Having a long contract ensures that union members are working, with no labor disruption (like a strike) and therefore continuing to pay union dues.
-A long contract gives union members a greater feeling of job security, which in turn creates a more affable view of the union and what it is doing for its members.
-It is a part of human nature that there is a natural resistance to change. Having a 5-year contract instead of a 2 or 3 year contract ensures that things will stay the same for a longer period of time.
-Members will know what to expect as far as their wages are concerned 5 years down the road and can then make longer-term financial goals and plan to attain those goals.
-Obviously the key to a longer contract is security. People like to know that their financial future and job security are not up in the air for the next 5 years.
2. How will having a long contract save the company money?
-Contract disputes are always costly. The company has to hire lawyers to negotiate and respond to any charges by the union that they are bargaining in bad faith.
-In the event of a strike, the company's production plummets and if they choose ...
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