Aaron Matthews is the human resources director for Molloyâ??s Metals, Inc., a manufacturer of machined metal components used in the automotive and aircraft manufacturing and servicing industries. Among the companyâ??s 129 employees is a group of 78 machinists who constitute the core of the companyâ??s business. Without their work, there would be no business. They are represented by a union, and the contract is coming up for renegotiation in one month. Times have substantially changed since the last contract was negotiated four years ago. The industry has become much more competitive, and many competitors have closed shop or moved overseas, and many overseas competitors have sprung up. Molloyâ??s has traditionally been among the highest paying within the competitor group and could afford to be because of its high productivity. Today, however, productivity alone may not be enough to save the company. Some reduction in the wage scale and bringing in lower paid, less experienced workers may be necessary to remain competitive. The union has indicated that it is strongly against any wage cuts and would vigorously fight any arrangement that brought in lower paid workers to do their jobs. They seem to be determined to strike rather than to concede too much to management. As you prepare for the upcoming negotiations, you wonder just how you should approach the negotiations.
As a consultant to Mr. Matthews, what steps would you advise him to take to get ready for the negotiation, and what other factors should be considered? Be specific about what you would recommend. In your recommendation, consider the following:
â?¢What are the objectives the company should pursue for negotiation?
â?¢What is the appropriate information that should be sought to prepare for the wage portion of the negotiation?
â?¢What is the negotiation style that should be followed?
â?¢How would you deal with the possibility of a strike?
In addition, analyze the situation and recommend at least one additional issue/consideration for the negotiation.
At least three pages in the form of a memo... I will incorporate to my final paper
To: Aaron Mathews (Human Resource Director)
Date: September 27, 2011
Subject: Crucial Steps to take in readiness for the negotiations
As we know negotiation is the mutual communication that occurs between two parties to come up with the needed solution for certain problems. Through this negotiation that you are going to embark on you are going to find very powerful solutions to the problems that are affecting the efficiency of the organization The main objective for this negation is to resolve the conflict that is existing between the management and the union members. The only way to gain a lot from the negotiation transaction is to prepare well. This will be attained through the following precise modes; the placing of the appropriate objectives that will be able to materialize when the negotiation is being implemented (Negotiation Styles, 2011).
The company should negotiate with the union members on the best way to resolve the problem at hand so that the operations of the organization can continue. You as the director take the initiative and speak to each individual employee to get their personal feedback on how they want the problem to be solved. Call for a meeting to explain to them the current situation in the company and the efforts that you are take to combat it. The main objective that the negotiation should purpose to attain is the ...
The solution provides advise, insight and guidance in putting together a memo from a Consultant using viewpoints on principles of SHRM to Mr. Matthews, who is the named HR Director for the sample case (see above for full details of the problem).