Question

In: Operations Management

what are the skills, knowledge and chnge behaviour of the ARTIFACT 1 Case 1: Metrobus Strike...

what are the skills, knowledge and chnge behaviour of the

ARTIFACT 1

Case 1: Metrobus Strike

The amalgamated Transit Union (ATU) represents about 100 workers (e.g., drivers, mechanics, administrative staff) employed with Metrobus, a city-wide transit authority. On November 3, after the parties failed to negotiate a settlement, the union conducted a vote. In an overwhelming majority, 97 percent voted to reject the contract offer and go on strike. On November 4, picket lines were assembled at the worksite and all bus services were suspended.

The main reason for the strike appears to centre on the cost of benefits. While the employer has offered to increase wages by 15.5 percent over four years, management Is asking that all newly hired workers pay for 50 percent of their benefit plan costs. The employer feels that this 50/50 cost sharing of benefits is reasonable and consistent with other collective agreements. For example, numerous public-sector employees such as city employees, firefighters, and regional water employees all pay 50 percent of their benefit costs. The union, on the other hand, feels that this benefit sharing is unacceptable and unfair.

As a result of the strike, many potentially vulnerable citizens, such as students, seniors, and lower-income earners who cannot afford their own vehicles, are left with few transportation options during the winter. They now have to rely on getting rides with others, paying the high cost of cabs, or even not showing up to work or school. Students of the university even set up a ride-sharing website where they could attempt to coordinate rides during the strike.

Six weeks into the strike, the level of frustration has mounted. The mayor of the city, Dennis O’Keefe, has publicly urged both sides to settle the dispute and other councillors seem hopeful the that the government-appointed mediator will help resolve the issue. There have even been public protests and petitions asking the provincial government to legislate an end to the strike. Despite the frustration, the strike remains in full force with no foreseeable end.

ARTIFACT 1

Case 1: Metrobus Strike

The amalgamated Transit Union (ATU) represents about 100 workers (e.g., drivers, mechanics, administrative staff) employed with Metrobus, a city-wide transit authority. On November 3, after the parties failed to negotiate a settlement, the union conducted a vote. In an overwhelming majority, 97 percent voted to reject the contract offer and go on strike. On November 4, picket lines were assembled at the worksite and all bus services were suspended.

The main reason for the strike appears to centre on the cost of benefits. While the employer has offered to increase wages by 15.5 percent over four years, management Is asking that all newly hired workers pay for 50 percent of their benefit plan costs. The employer feels that this 50/50 cost sharing of benefits is reasonable and consistent with other collective agreements. For example, numerous public-sector employees such as city employees, firefighters, and regional water employees all pay 50 percent of their benefit costs. The union, on the other hand, feels that this benefit sharing is unacceptable and unfair.

As a result of the strike, many potentially vulnerable citizens, such as students, seniors, and lower-income earners who cannot afford their own vehicles, are left with few transportation options during the winter. They now have to rely on getting rides with others, paying the high cost of cabs, or even not showing up to work or school. Students of the university even set up a ride-sharing website where they could attempt to coordinate rides during the strike.

Six weeks into the strike, the level of frustration has mounted. The mayor of the city, Dennis O’Keefe, has publicly urged both sides to settle the dispute and other councillors seem hopeful the that the government-appointed mediator will help resolve the issue. There have even been public protests and petitions asking the provincial government to legislate an end to the strike. Despite the frustration, the strike remains in full force with no foreseeable end.

Solutions

Expert Solution

The government appointed mediator should go for a compromising approach representing the Metrobus company, as the company is bearing loss with each passing day as no operations are being conducted. And at the same time follow a collaborating approach to resolve the conflict while representing the Union.

In this situation, the Metrobus has only 2 options, either to settle the benefit plan with a ratio higher than 50/50 with the union so that they can negotiate to achieve a common ground, or else change the whole union and set of workers.

The strike has been continued for over 6 weeks and if Metrobus goes for some other union to get their work done, this would mean more time to hire around 100 new employees to carry out operations, or else they could negotiate to a little high percentage sharing of about 75% from their end towards health benefit, which the negotiator can help to get approved with the union.

This would mean operations can start at the earliest and the people who were impacted due to this situation can get back to normal to the earliest, while the company can start earning profits again, alo the union would be happy to get what they wanted in some way.


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