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Labor Relations: Union Bargining Scenario

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Our case begins as we are sitting around the bargaining table with the union and the organization. The current contract is set to expire. The proper notification has been delivered. The stage has been set. This is the actual negotiation. The four people at the table are the business agent, the organizer, the president, and the human resources director.

Beth (the business agent): "Even with the increased competition since the hurricane, I believe the field deserves an increase in pay. According to our analysis, the COLA increase should be about 3.5%."

Jim (the president): "While that is an interesting offer, we prefer to look at the entire region where you employ all the skilled labor we provide. Our analysis shows the CPI has risen by just 2%. We would agree to a 2% increase each year over 4 years."


Based on this beginning and the information provided, finish the discussion between Beth and Jim. The analysis should include:

- One wage issue
- One non-wage issue
- One working condition issue

What should the union have done to prepare for the contract negotiation on these points?

What should the company have done to prepare to talk about these issues?

Please see attachment. This may help with the analysis and question.

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Solution Summary

This solution provides an analysis of the given scenario, which includes one wage issue, one non-wage issue, and one working condition issue. It also discusses what the union should have done to prepare for the contract negotiation and what the company should have done to prepare to talk about the issues.

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What should the union have done to prepare for the contract negotiation on these points?

Beth thinks that Cost of Living Adjustment (COLA) increase should be about 3.5% but the president of the organization mentions the 2% increase in CPI at the region where they employ the workers. Thus ...

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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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