Question

You work as the lead HR Manager for BWA Enterprises, a company that builds parts for one major car manufacturer. On the organization chart, management, and administrative tasks are represented by rectangles, the union is represented by the ovals.

You are preparing for negotiations for the next CBA. The current, 3-year CBA is set to expire in 12 months.

At present, there is a new union president that you have found very difficult to deal with; the union is considered antagonistic towards management ideas, proposals and policies. The grievance rate has increased significantly since the last round of negotiations; primarily around issues of safety, overtime requirements (due to not enough workers to cover all of the shifts), non-fulfillment of benefits, and inadequate training when a new product line is introduced.

On the other hand, management is sympathetic towards creating a better working environment around the areas of grievance. The key will be to find a mutual way to address the concerns. However, stakeholders have also drawn a hard line along areas of pay-raises, more benefits, retirement options and years of service increases (such as extra vacation days, salary grids, holidays for birthdays, etc.).

40% of our annual gross profit of $10 million dollars go to employees within the union (80 members) for salary, benefits, and retired employee benefits. 20% goes to administrative and management, 25% goes to inventory, taxes, equipment, and facilities, and other supporting costs. The remainder is stockholders equity.

Financially, BWA enterprises is in the black, but because of recent tariff and trades restrictions across the border, our main customers have already given notice that they will be looking to domestic sources for the parts we produce. Also, our research department has reported that several of the jobs currently being filled by humans has the potential to be automated by AI within a 2 – 5 year timeframe based on new inventions and research. The union is aware of this development.

1. Strategies to improve union-management relations –
   • Describe areas of bargaining that compromise can be achieved.
   • Determine strategies that can be used to make negotiations and grievances run more smoothly.
   • Review and comment on at least 6 of the following data to support the objectives:

• Compensation per employee including overtime worked
• Paid holidays
• Vacation pay
• Leaves
• Allowances (meal allowance, education allowance, meal allowance, clothing allowance, etc.)
• Accident/incident rates
• Group benefits costs
• Demographics on workforce
• Training spending

Answer 1

1. The board is cheerful that mechanical headway will make ready for mechanization. Human occupations will get supplanted by machines. This will be savvy just as precise for the organization. Henceforth the organization is searching for multi year CBA, so that after that they can investigate mechanization alternatives. Association, then again, wants employer stability for the representatives for a long length. Henceforth they are contending for multi year CBA.

2. A shared accord can be shown up when the CBA is produced for a long time. This will satisfy both association's and the board's point of view. Salary increases won't be plausible in the conditions where the organization is at the skirt of losing some principle clients. The organization can, anyway satisfy the preparation prerequisites of the association. Preparing will sharpen the abilities of the representatives, in this way expanding their general execution and encouraging the adequacy of in general business process.

3. With the arrangement of doing a multi year CBA, the association will lose professional stability for the representatives by 2 years. No thought of increases in salary, again will influence the winning limit of the workers. Encouraging preparing for the workers will be a success win circumstance for both. Representatives will pick up aptitudes, which may expand their reasonable worth, organization will have better ability and in this manner by and large execution of the business will improve.

4. Situations regarding :

Win-Win: Facilitation of preparing will be a success win circumstance for the two gatherings. . Workers will pick up abilities, which may expand their reasonable worth, organization will have better ability and in this way by and large execution of the business will improve.

Predicament: choice of not considering increases in salary can be an impasse for both the gatherings. The representatives may get demotivated if there is no increase in salary. This may unfavorably affect their exhibition. Organization may think of it as a success win circumstance, yet in since quite a while ago run, it will be a losing circumstance for them. This is so in light of the fact that as the exhibition of the workers will get hampered due to non-thought of increase in salary, the general productivity and adequacy of the business procedure will get affected significantly.

Win-Lose: The accord of multi year CBA will be a success circumstance for the organization as by at that point, mechanization openings will be colossal and they can exploit the equivalent. Workers would lose 2 years of professional stability which can be a major risk to their general steadiness. Subsequently it will be a losing condition for them.

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