The Right to Contract out
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Please answer the five questions at the end of case" The Right to Contract Out"
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1. The burden of proof lies on the Union as it is on the Union. The obligation is on the Union to establish that the company has violated the terms of the contract. The level of proof should be clear and convincing evidence. It means that the claim of the union is more likely to be true than not true.
2. This is matter of contract interpretation. The reasons are that the union created two new job classifications to broaden the spectrum at the company. The janitors were placed in L-1 classification and there was wage protection for those that held the job. The union knew that the wage rates of janitors were out of sync with the norms of the labor market. So it is not a case of 'good faith". in the contract there is a provision that the company has the 'rights to place" production, service, maintenance, or distribution work with outside contractors or subcontractors". The company has exercised its right in accordance with the terms of the contract.
3. Some general guidelines for companies to retain right to contract our bargaining unit work are that the agreement between the union and the company should equivocally give the management right to contract our bargaining unit work. The agreement with the union should also list the work that may be contracted out. The list should include all bargaining unit work. The agreement should also mention that the bargaining unit work may be contracted out whenever the management wants. Finally, the agreement should mention that cause of contracted out may include but not limited cost savings for the company.
4. When the company contracts out bargaining unit work it simply exercises the managerial functions as described in Article 4.1.2. That is placing of production, service maintenance, or distribution work with outside contractors. The recognition clause is Article 2.1.1 where the company recognizes the Union as the sole and exclusive bargaining agent with respect to rates of pay, wages, hours, and all other conditions of employment for all employee ...
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