Question

Happy Trails, LLC is a medium-sized independent living home , a for profit facility located in the suburban environment. Due to traffic road congestion, this elder care facility is the most convenient independent living home near the city. Independent living homes in the city offer many of the same services as Happy Trails, but are more expensive. The elderly may go to several hospitals for acute health care issues.

In a response to the changing economy and patient access from the suburban areas to the city, Happy Trails has taken some measures to compete, become more attractive, and build on its long-term care for patients in the surrounding areas. It has reduced overtime allotments of its seasoned patient care staff, and has terminated several registered nurses. As the registered nurses leave Happy Trails, they are replaced by licensed practical nurses who received lower compensation and fewer benefits. The health care facilities in the city are unionized and are well represented by an experienced union business agent.

The union has recently negotiated superior wages and benefits at the independent living homes in the city. In terms of the health care professional employees employed there, Happy Trails is not so happy now because the union representing the other facilities has received the attention of the Happy Trails LPNs.

As a team, you are a group of individuals who are members of a consulting firm. The independent living home management team has asked your advice what would you advise the independent living home management to do.

Should Happy Trails oppose unionization?

What arguments or defenses might the hospital raise to the unions organizing issues?

If the company elects to resist unionization's, what steps must the company follow?

What unfair labor practices need to be avoided by management?

Answer 1

Q-1. Should Happy Trails oppose unionization?

A: Happy Trails should oppose unionization as unions tend to interfere and obstruct management decisions. The union has recently negotiated superior wages and benefits at the independent living homes in the city pushing up costs of those homes. This would push up costs at Happy Trails too. Happy Trails, LLC, is a medium-sized independent living home, a for profit facility located in the suburban environment which has recently taken some measures to compete, become more attractive, and build on its long-term care for patients in the surrounding areas including replacing registered nurses with licensed ones.

Q-2. What arguments or defenses might the hospital raise to the unions organizing issues?

A: Unionization will obstruct all the measures taken by Happy Trails to compete and become more attractive. Unionization has pushed up costs which will hamper Happy Trail's measures to build on its long term care for patients in response to the changing economy and patient access from the suburban areas to the city by replacing registered nurses with licensed practical ones who can cater in a better way to the long term care for patients. The elderly may go to several hospitals for acute health care issues and should be approachable and affordable. Unionization just pushes up labor costs at hospitals and won't be affordable to the elderly who may be living on social security and/or meagre pensions with no regular high fixed incomes. Happy Trails must show its affordable and economical costs to help and support its customers in the long run. These are the best arguments or defenses that they can employ to oppose the unions organizing issues.

Q-3: If the company elects to resist unionization's, what steps must the company follow?

A: If the company elects to resist unionization's, the steps the company must follow are:

i) The company must have a team meeting with all its staff and explain their stand including the reason for resisting the unionization and seeking support from its staff.

ii) The company must issue fixed term contracts to its staff to ensure that they are on temporary basis and not permanent employment basis.

iii) Happy Trails has already taken steps to replace registered nurses with licensed practical ones since they are not registered will be amenable to oppose unionization provided they are paid better and given more benefits.

iv) Happy Trails must ensure that there are no unfair labor practices so as to gain staff buy in to its stand to resist unionization.

Q-4: What unfair labor practices need to be avoided by management?

A: The management of Happy Trails has reduced overtime allotments of its seasoned patient care staff, and has terminated several registered nurses. These replacement licensed practical nurses are being provided lower compensation and fewer benefits by Happy Trails. These are the unfair labour practices which need to be avoided byHappy Trails. Unfair labour practices will strengthen the union's stand to demand unionization of Happy Trails and must be addressed by Happy Trails immediately if it wants to successfully oppose and resist unionization.