Question

Your participation in class has led to your work as a consultant for a local trade union which is preparing for negotiations. They have asked you for a four page memo outlining a union’s basic health care strategy. Since this is hypothetical, the memo should generally address the current trends in health care costs, trends in employer contributions and advice for messaging with their members regarding any changes to coverage and/or contributions. This is an internal memo only designed to give pragmatic advice. It should be cited and documented, and the focus is on practical counsel and solid facts that are of real value in negotiations. You will also provide a brief overview of three different negotiation strategies commonly used by unions and employers.

Answer 1

To - The Trade Union Members

From - John Brown

Subject- Health Care Negotiations

Date - 04/03/2020

Health care has been very expensive these days and we all know that we cannot pay off Medical debts unless we have any kind of insurance or coverage. Health care industry has developed and is developing day by day but the expenses are also getting higher day by day. Any minor surgery or treatment can easily cost hundreds of dollars and it is out of reach for common man. The medicines and doctor's fees takes out most of the salary of the Employees.

As we know that the current health care coverage is not upto the mark and provides only basic requirements . Employees after company's coverage still have to shed out a lot cash. The current trend in employer's contribution is around 30,000 dollars every year and even have special link ups with many hospitals which gives special discount to the Employees. As per now, the company providing coverage is 18,000 dollars and which gets processed after a hectic paperwork. So, The members should meet and focus on key points such as what is the amount that shall be covered by hospitals. What is the health care for family members? If anyone dies , what should be the compensation ?.

Negotiation strategies that has to be implemented

1-) Giving options so that the company can screen and choose the option which they feel is more reasonable.

2-) The bargay strategy where they should meet at a middle point . For ex if company say they will give the same amount of money for healthcare coverage , but thebtrade union should accept this but should ask a family member to be included in the half price.

3-) Damages to be negotiated beforehand where Employees should negotiate by saying that increasing coverage will result in increase in employee trust and loyalty towards company.