Determinants of impasses in public sector labor negotiations
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The Labor Relations (figure) proposes a model for describing the determinants of impasses in public sector negotiations. Apply this model to the New York City Transit negotiations and strike of December 2005. Do the following in your assignment:
- Address each of the factors listed in the model and provide a brief description of each.
- Determine which factors in the negotiations you think were the most important for the public interest.
- Analyze which factors were the most important for each of the parties: the transit workers, the management, and the union.
Link for article:
http://en.wikipedia.org/wiki/2005_New_York_City_transit_strike
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Solution Summary
A model for describing the determinants of impasses in public sector labor negotiations are examined.
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Environmental Factors:
? Economic Factors-Retirement, Pension and Wage Increases.
o The TWU wanted 6% salary increases per year for the next 3 years. The MTA offered a 3%, 4% and 3.5% raise for the 1st, 2nd and 3rd year respectively.
o TWU wanted to lower pension eligibility age from 55 to 50 and the number of years worked to 20 from 25. Such a plan had been attempted after a strike in the 1960s. It led to an exodus of skilled older workers who were now suddenly eligible. The pension and health care reforms cost about US$30 million over the three-year contract. However, the pension costs would balloon to US$160 million in the first 10 years, and US$80 million per year after 20 ...
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