Question

PLEASE READ ALL OF THESE INSTRUCTIONS BEFORE BEGINNING THIS ASSIGNMENT. For this assignment, you need to analyze the information below from BOTH the management AND the employee perspective. This information pertains to a labor union in a simulated/made up/not real firm in Glen Ellyn. The first part of your information relates to Management – the second part relates to the Labor Union employees. I have provided you with information from the last union negotiations at the plant in 2016. It is now time to begin preparing for negotiations for 2020 and beyond. The third part of this assignment is your analyzing what you have gained from this assignment.

Your assignment needs to include the following information:

• Part One:
  • Considerations for Management as they begin to prepare for negotiations
  • Beginning offer to the plant workers - This means if you were management for this firm, what would your initial/first offer be to the labor union employees in each of the categories below.
• Part Two:
  • Considerations for Labor Union employees as they begin to prepare for negotiations
  • Beginning offer to management - This means if you were the employees in the union, what would your initial/first offer be to the management of the firm in each of the categories below.
• Part Three:
  • Analysis of what you have gained from this assignment and insights you now have into labor union negotiations. Understand that negotiations go on and on sometimes for years. But each set of contract negotiations has to begin somewhere - and this is what I'm having you look at in this assignment. First offers don't include what you really want - it's your starting point.

Format this assignment using the section headings noted as you see below with “Management” and the “CPFac Workers Labor Union”. Be very clear about the information required above.

Management –

Put yourself in the role of President and Owner of Cooper Plastics Corp. located in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc.

There is a union, CPFacWorkers, representing the 95 factory workers at Cooper Plastics.

It is time for the management team at Cooper to once again negotiate with the CPFacWorkers.

Your negotiations document needs to include the following for BOTH Management and the Union - you must include these categories for both offers:

• Length of the next contract in years - Labor contracts are frequently 2-4 years in length
• Base pay
• Annual pay increases for each year of your labor contract
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs - calculate how much your increases are going to cost you - you need to provide me a total of costs and how you arrived at that number
• Source of money for increased costs - where is the money coming from for these increased costs - this is obviously an assumption based on the information you have

Data from Current Contract, which expires in September 2020:

• Contract began in March 2016
• CPFacWorkers conceded to 20 layoffs when negotiating the 2016-2020 contract
• Remaining workers agreed to a 10% pay cut to help the company continue to recover from the recent US recession
• Sick days were reduced from 10 to 6
• Holidays reduced from 10 to 6
• Shift differential pay (The dates show you the increases/decreases throughout the contract)

/hour

• 7am-3pm shift – 50 workers - $1,040,000
• 3pm-11pm shift – 30 workers - $624,000
• 11pm-7am shift – 15 workers - $312,000
• Managers – 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime – time and a half; 2017-2019 no OT has been worked

Sales:                                                              Profits:

• 2016 $4,000,000                                          2016 $1,040,000
• 2017 $5,250,000                                          2016 $2,392,000
• 2018 $6,000,000                                          2018 $3,300,000
• 2019 $6,200,000 2019 $3,400,000

CPFacWorkers Labor Union –

Now, put yourself in the role of the negotiating team representing the CPFacWorkers labor union at Cooper Plastics in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc. There are a total of 95 factory workers in the bargaining unit of your union.

It is time to negotiate with the Cooper Plastics management team.

Your negotiations document needs to include the following - you must include these categories in both offers:

• Length of contract in years
• Base pay
• Annual increases
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs
• Source of money for increased costs

Data from Current Contract, which expired in September 2020:

• Contract began in March 2016
• CPFacWorkers conceded to 20 layoffs when negotiating the 2016-2020 contract
• Remaining workers agreed to a 10% pay cut to help the company recover from the recent US recession
• Sick days were reduced from 10 to 6
• Holidays reduced from 10 to 6
• Shift differential pay:
  • 3pm-11pm   $0.50 3/15-3/16 $.25 3/17-3/19
  • 11pm-7am    $1.00 3/15-3/16 $.35 3/17-3/19
• Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

• 7am-3pm shift – 50 workers - $1,040,000
• 3pm-11pm shift – 30 workers - $624,000
• 11pm-7am shift – 15 workers - $312,000
• Managers – 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime – time and a half; 2017-2019 no OT has been worked

Sales:                                                              Profits:

• 2016 $4,000,000                                          2016 $1,040,000
• 2017 $5,250,000                                          2017 $2,392,000
• 2018 $6,000,000                                          2018 $3,300,000
• 2019 $6,200,000 2019 $3,400,000

Other Considerations:

• The United States appears to have come out of its 2008-2010 recession, though there are those who are beginning to say it will return in 2020 as recent stock market fluctuations may confirm.
• Cooper has new products scheduled to be coming out in mid-2020 which may help stimulate growth in the firm’s revenues and profitability.
• Management at Cooper does all hiring, scheduling, firing, and promotions.
• It has become increasingly difficult to get employees to work the 3-11pm and 11pm-7am shifts. Absenteeism is high on these shifts and productivity on both of these shifts are lower than on the 7am-3pm shift.

When complete, click on the assignment name link to submit the assignment for grading.

Answer 1

As a business organisation, a healthy relationship between employees and the management is crucial. A regular communication is a channel through which it can be maintained.

As the President and Owner of Cooper Plastics Corp, I will lead the negotiations with the CPF ac workers union

Length of the contract..... Will be 2 years

Base pay ...... $10 per hour

Annual pay increase for each year of labour contract..... 12% ( as employees accepted pay cut during recession)  

Shift. Pay differential.

3pm 11 pm. $0.75 3/15 3/16 $.50 3/17-3/19

11pm to 7 am $1.25 3/15-3/16 $70 3/17-3/19

Overtime pay 150% of regular paid hour rate

Number of workers per shift 3 pm - 11 pm 45 workers , 11 pm 7 am 30 workers

Benefit percentage of salaries ...will be increased to 35% from 28%

Annual paid sick days ... 10

Annual paid holidays ...... 10

Total increased cost ....... Will be met by increased production and performance through increased work force

Now I am in the negotiating team representing the CPF acWorkers

union at Cooper Plastics in Glen Ellyn

Length of contract in years.... 2 years

Base pay .... $ 12 per hour

Annual increases 12%

Shift pay differential

3pm - 11 pm $ 1 3/15-3/16 $.50 3/17-3/19

11pm - 7 am $1.25 3/15 -.3/16 $.60 3/17-3/19

Overtime pay. .. 150% of regular work hours pay

Number of workers per shift

7 am - 3 pm shift 75 workers

3 pm 11 pm shift 45 workers

11 pm 7 am shift 25,workers

Benefit percentage salaries should be increased to 35 %

Annual paid sick leaves should be back to 10 days.

Annual paid holidays should be back to 10 days

Total increased cost.... Source of money for increased cost will be met by the increased work force. Increased overtime payout will be motivating for works to work overtime.

Conclusion : The world has come a long way from 2008 recession and as expected by experts 2020 will be another round of recession. The US economy has come out strongly from 2008 recession and is better prepared to handle the economic uncertainty in future. Cooper Plastics Corp located in Glen Ellyn, Illinois has been doing good after recession and now new products are lined up for production, so business profitability will go up. A health employee management relationship always gives a better chance at surviving any challenge in the economy.