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 administrators is certain that creative progress will get ready for robotization. Human occupations will get displaced by machines. This will be monetarily sharp similarly as accurate for the association. Subsequently the association is scanning for multi year CBA, so that after that they can research motorization choices. Affiliation, on the other hand, needs business strength for the laborers for a long range. From now on they are fighting for multi year CBA.

2. A mutual accord can be shown up when the CBA is created for quite a while. This will fulfill both affiliation's and the administrators' perspective. Pay raises won't be feasible in the conditions where the association is at the skirt of losing some rule customers. The association can, in any case fulfill the readiness necessities of the affiliation. Getting ready will hone the capacities of the laborers, thusly extending their general execution and empowering the feasibility of all things considered business process.

3. With the course of action of doing a multi year CBA, the affiliation will lose boss security for the laborers by 2 years. No idea of compensation builds, again will impact the securing furthest reaches of the laborers. Empowering planning for the delegates will be a triumph win condition for both. Laborers will get aptitudes, which may extend their decently evaluated worth, association will have better capacity and thusly for the most part execution of the business will improve.

4. Situations as far as :

Win-Win: Facilitation of getting ready will be a triumph win situation for the two social occasions. . Laborers will get aptitudes, which may extend their decently assessed worth, association will have better capacity and as needs be all things considered execution of the business will update.

Problem: decision of not considering compensation increments can be a stalemate for both the social occasions. The laborers may get demotivated if there is no compensation increment. This may horribly influence their show. Association may consider it a triumph win condition, yet in since a long time prior run, it will be a losing situation for them. This is so in light of the fact that as the introduction of the agents will get hampered due to non-thought of compensation increment, the general profitability and practicality of the business methodology will get influenced fundamentally.

Win-Lose: The agreement of multi year CBA will be a triumph situation for the association as by then, motorization openings will be massive and they can pick up by the equal. Laborers would lose 2 years of business security which can be a significant hazard to their general consistent quality. Subsequently it will be a losing condition for them.