Question

(TCO C) Play the role of a consultant to management.
(a) Summarize for the management team the economic, political/legal, social, and other factors that you believe the union will integrate into their negotiations package. Keep in mind that the contract negotiations will typically reflect the current status of the economy, political/legal concerns, and social factors impacting society in general and other concerns held by management and labor.

Answer 1

Following factors need to be considered as a part of negotiation contract between the union and management.

1. Gowth rate of economy. Governement policies and their impact on the growth of the organisation. Growth rate of the sector in which the company operates. Remuneration standards of the industry.

2. Cost of living in the area for an average family. Employment pattern of the region. Characterstics of the labour market and scope of negotiation.

3. Political stability of the region. Agenda of the political parties and their outlook of the labour unions. Power equations at the union and provincial level.

4. Laws governing the labour relations in the region. Restrictions that affect human resources policy of the organisation. Unions and their place in the legal view.

5. General state of law and order in the region.

6. Life expectancy, literacy rate, per capita income, human development index, penetration of education, technological development and other factors related to the demography of the region.

7. Mission and vision of the organisation, its growth strategy and plans for future, and alignment with the human resource policy, risk factors in the business, financial implications of the negotiation process.