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. A draft bargaining notice and schedule

• Prepare a formal notice to the union

Answer 1

The executives is confident that innovative progression will make ready for computerization. Human employments will get supplanted by machines. This will be practical just as exact for the organization. Henceforth the organization is searching for multi year CBA, so that after that they can investigate robotization choices. Association, then again, wants employer stability for the representatives for a long term. 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 executives' point of view. Salary increases won't be practical in the conditions where the organization is at the skirt of losing some primary clients. The organization can, anyway satisfy the preparation prerequisites of the association. Preparing will sharpen the abilities of the representatives, subsequently expanding their general execution and encouraging the adequacy of in general business process.

3. With the exchange of doing a multi year CBA, the association will lose professional stability for the workers 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 build their fairly estimated worth, organization will have better ability and in this manner in general execution of the business will upgrade.

4. Situations as far as :

Win-Win: Facilitation of preparing will be a success win circumstance for the two gatherings. . Representatives will pick up aptitudes, which may build their reasonable worth, organization will have better ability and subsequently in general execution of the business will improve.

Dilemma: choice of not considering increases in salary can be an impasse for both the gatherings. The workers may get demotivated if there is no increase in salary. This may antagonistically affect their presentation. Organization may think of it as a success win circumstance, however 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 representatives will get hampered due to non-thought of increase in salary, the general proficiency and viability of the business procedure will get affected extensively.

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