Question

In: Economics

Cafeteria Workers who have been recently unionized at a private university in the Boston area. Their...

Cafeteria Workers who have been recently unionized at a private university in the Boston area. Their wages on average are $14.00 per hour and a starting wage it $12.50. Every two years workers receive raise averaging $1.00 based on their performance evaluations. Fringe benefits are limited to 10 days of paid holiday per year if they work more than 1,800 hours in the previous year, free use of the exercise facilities and a 25% discount for social events such as concerts and sports matches held on campus. And no other benefits. They are asking on average a $5.00 raise and 4% raise thereafter for the next three years. The management (university) believes that it is too excessive and the university will have to raise the cost of tuition for the university. Workers also want to be vested in the university's employee health plan if they work at least three years first and on average $1,800 hours per year. And some contribution to a retirement pension. Please advocate the position of the Union.

Solutions

Expert Solution

The workers in the Boston area university cafeteria receive on average $14 per hour wages and they receive on average $1.00 appraisal every two years subject to performance. They also get some other benefits.


However, the workers are demanding $5.00 rise in wages and further 4% rise each year for the next 3 years.
The current wage offered by the University administration is marginally above the minimum wage in the state of Massachusetts which $12. The workers are not entitled to pension benefits and they are not included in the employee healthcare benefits scheme.


The existing situation is not in the best interest of the cafeteria workers and it does not reflect the high cost of living in the Boston area as well as the higher cost of healthcare in the US without government assistance.
The University administration should negotiate with the workers considering the costs and financial burden on the University because a higher financial burden will result in raising the tuition fees for the students.
However, the workers are entitled to higher benefits as they are demanding after working for more than three years.


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