Labor Relations - 3780
BUS 3780
PROPOSAL
between
LOCAL 384, UNITED STEELWORKERS OF AMERICA, AFL-CIO
and
GENERAL MANUFACTURING & FABRICATION COMPANY, CENTAL CITY, INDIANA
Company Issues Local 384 wants to ensure that our workers are secure in their jobs and there will be no cause to subcontract work out that can be completed in house. We want to ensure that the wages are competitive and
at or above the consumer price index and fair across the board and that benefits remain supportive the way that this company has done over the past years. Occupational safety in the company is everyone's
job and we want to set safety standards and implement measures to have the best safety record in all of the Steelworkers of America.
Written Proposals
Proposal Justification
a.
A provision for wage increases that usually includes a fixed general annual increase that may
be combined in some instances with merit provisions and cost-of-living escalators that add to
the across-the-board increase when the cost-of-living index goes up more than a
predetermined amount. Same as "d." below.
The company will not subcontract work the bargaining unit is capable of performing nor close
or move the plant's operations during the life of the agreement.
b.
To ensure job security and stability.
1
The first Tuesday after the first Monday in November will be a paid holiday in even-numbered
years to permit employees to conveniently exercise their right to vote in federal elections.
f.
to allow all employees the time and opportunity to vote.
i.
1
All benefits available to employee spouses shall be extended to domestic partners of
employees, but will have to pay any luxury taxes on any health increases.
i.
To accommodate the changing landscape of modern families and have access to top-tier
employees who choose domestic partnership over marriage.
k.
1 The length of this current contract shall be for three years.
k.
To be able to address issues or problems within this time period and not be locked into a long
term unadjustable contract should anything arise.
c.
The company will train bargaining-unit members to operate and maintain computer
2 technology used in the production process, and all production technician jobs will be included
in the bargaining unit.
c.
To stay modernized and inline with technological updates to streamline our production and
eliminate the need to hire subcontractors.
d.
COLA adjustments of .07 cents per hour for each 1-point increase in the consumer price index
2
and paid at the first pay day in the third month of the each following quarter.
d.
A provision for wage increases that usually includes a fixed general annual increase that may
be combined in some instances with merit provisions and cost-of-living escalators that add to
the across-the-board increase when the cost-of-living index goes up more than a
predetermined amount.
h.
The company's 401(k) match will be increased from up to 3% to up to 5% of gross pay for
3 employees contributing to the plan and will contribute 2 % to the account of all other
employees, including those who do not make individual contributions.
h.
To attract and retain talent to the company using this defined contribution plan.
e.
4
a.
A general wage increase of 5% of base wages per hour as of March 1. No wage increase for 3
1
years, but a yearly bonus of 2.0%, 2.5% and 3.0% at the end of each year.
b.
1
f.
j.
The company will implement a prescription drug benefit that will pay the full cost of generic
prescriptions and 80% of proprietary drug prescriptions.
4 Mandatory overtime cannot exceed 10 hours in any given week.
e.
j.
Generic prescriptions are considerably less expensive than brand name prescriptions and more
readily available.
To protect the employees from fatigue caused accidents and the company.
m.
The company will cover 80% of medical, dental and vision costs, and new employees will incur
3 a 6 month obligation of work before they will be covered under the company health program.
Will use current health plan.
g.
5
l.
5 Maternity leave will be allowed for all employees for up to 12 weeks.
l.
Adding a seniority bonus of additional vacation time for employees will benefit the company
with higher productivity, stronger workplace morale, greater employee retention and
significant health benefits.
To remain compliant with the Family and Medical Leave Act (FMLA) regulations.
n.
5 The company will assist with up to 50% of childcare costs.
n.
To assist childcare for employees because it is among working parents' biggest expenses.
Vacation accumulation will be increased by 0.02 hour per straight-time hour worked for
employees with 20 or more years of service.
m.
g.
For the purpose to continually reduce the burden of illness, injury, and disability, and to
improve the health and functioning of the employees of the company.
AGREEMENT
Between
GENERAL MANUFACTURING & FABRICATION COMPANY
CENTRAL CITY, INDIANA
And
LOCAL 384, UNITED STEELWORKERS OF AMERICA
AFL-CIO
Effective March 1, 2012
Cover Page
Part 4
Issue Selection
Written Proposal
Proposal Justification
Priority
of the
Issue
The Length of Agreement shall be Though it is not usual, company wants to
2
the Agreement
three years.
have the contract agreement which lasts
for six years. The reason behind it could
be changes in economy also, if the contract
is for a year or 2, both the company and
union have to make new contract which
gives an opportunity to unions to demand
more of the other needs and ask for wage
increase. If it stays six years, within those
years none of the parties can change or
must follow the contract though there are
changes in the marketplace.
Wages
Wage increases of
a 2 percent lump
sum when the
contract is ratified,
a 2 percent lump
sum on March 1 of
the second year, a
2.5 percent lump
sum on March 1 of
the third year, a 3
percent base wage
increase on March
1 of the fourth
year, and a 2.5
percent base wage
increase on March
1 of the fifth and
sixth years. First
year 2%, second
year 2.5 and third
year 3%
Health Care Plan The
annual
increase in the
employer’s
contribution to the
employee
health
care benefit will be
limited
to the
percentage wage
increase
negotiation.
Supplementary
The supplementary
Unemployment
unemployment
Benefit Plan
benefit will be
discontinued.
Seniority
Persons promoted
to
supervisory
positions
will
continue to accrue
seniority within the
bargaining
unit
after
their
promotion
and
retain
bumping
rights back into the
bargaining unit if
This is a fair demand from the company
since they are offering wage increase with
lump sum and base wage increase. This
will benefit both, the company and
employees. Lump sum includes the other
compensation such as bonus, overtime pay
and other benefits and raises. Here the
company is trying to do cost controlling on
wages since due to the inflation and
deflation rate price can go up and down.
This will allow company to not have
changes even though there will be inflation
or changes in economy.
1
The company is willing to pay for the
health care of the employees, but it will
only cover limited cost exposure here.
2
Laid off government benefits and some of
the benefits from company.
Write this again and stop this
unemployment benefit.
The company is willing to give promotions
to employees to take higher position such
as manger but if for some reason there is
cut off for managers then the person
promoted can go to back to their previous
job, but they have to start from the scratch
for their seniority.
4
2
Overtime
401(k)
Retirement Plan
an
economic
reduction I force
among supervisors
is implemented.
If in the need of
managerial
position,
the
company
will
promote
employees
by
seniority position
with a managerial
payment package
on a temporary
basis for a already
approved
future
time period of
position
with
notice ahead and
when the position
taken away the
temporary manager
can go back to
his/her
seniority
position and get
with the seniority
payment package.
Employees
may
not refuse Saturday
overtime and / or
up to two hours of
overtime per day,
including Saturday
no more than 10
hours a week.
This demand indicates that there is no way
that employee could say to no to work
overtime during weekdays and work on
Saturdays. This is beneficial for both
parties since, company does not have to
give extra money to outsider worker to get
done with task. Also, there is lot of trust
issues of whether the new person will
properly do the work or not. If the worker
is from the company then, there mostly no
doubt and have someone to trustworthy or
who has at least worked there and not have
to explain the process or give training. On
the union point of view, this is a good
opportunity earn more money and step up
to get seniority ahead.
All employees will The government wants companies to
be automatically address some social issues therefore it is
enrolled in the obligated to have 401(k) plans. This allow
*
1
401(k) retirement
plan.
5% increase from
3% to 5% whoever
is contributing and
those who are not
the company will
provide 2% for
upto 5 years and if
they leave within a
period of 5 years
they will loss all
the amount the
company provide.
Health Insurance If
the
health
Plan
insurance plan is
expected to incur a
“luxury tax” as
defined by the
PPACA,
the
employer
contribution
for
family
coverage
will be reduced by
as
much
as
necessary to avoid
the tax.
Arbitration Fee
The losing party in
the arbitration shall
be responsible for
paying
the
arbitrator’s fee for
hearing the case
and rendering an
award.
20%
for
the
winning
management and
80% for union
Wellness
A
wellness
Program
program that will
include counseling
and
prevention
programs
to
address high-risk
behaviors such as
employees to choose to put money in to in
which after they retired they get the money
for their living and not have to worry
about doing job at the age of 80 years.
If the tax on the family health care
insurance increases, the company is going
to not help with the tax paying. The
employee have to do it by him/herself.
Take care of the family health care
insurance plan but not payment on tax.
No payment of tax
3
This is a fair demand since of one of the
parties, company or union is losing. If
company knows and sure that they are
winning the case if it’s taken to arbitration,
then losing party will pay their fee. This
will restrict both parties to take their case
to arbitration and avoid everything like fee
and save time.
1
A wellness program is equally important
in the contemporary environment. This is a
must doing because if the employee is
mentally or physically instable, they are
not able to focus and give their 100% to
work which will affect negatively on the
growth on company and its profit.
1
Holidays
Relocation
Package
Job
Training
poor dietary habits,
smoking, and lack
of exercise that
detrimentally
affect health will
be offered. Any
employee
who
does not participate
must pay a 25
percent surcharge
on his or her
required
health
care contribution.
Wellness program
is not mandatory
but if something
wrong later u gotta
pay ur own.
The first Tuesday
after
the first
Monday
in
November will be
a paid holiday even
though
the
employees have to
get back to work
after they done
voting.
Employees
will
earn salary based
on the re-location
area
only
on
volunteer basis.
Therefore, person being health will
increase benefits to company and avoid so
many other risks.
Federal voting day.
If the company happen to relocate some or
one employee, it is going to give the salary
based on the states minimum wage policy.
Each state has different minimum wage
policy therefore exchanging the salary will
be beneficial to employee and adjust in the
new environment. This package will cover
employee’s reasonable moving and other
work-related expenses. By offering
transferees
a relocation
package, employers
provide
comprehensive financial and other types of
assistance to relieve the employee and
their family of the expensive burden of
relocation.
Skill If a shortage of This will allow employees to improve their
employee,
then skills and have work in the different
should train other departments. Also, for company, it will
3
2
Maternity Leave
Subcontracting
company
employees to do
the
job.
The
company will train
bargain
unit
members
to
operate
and
maintain computer
technology used in
the
production
process, and all
production
technician jobs will
be included in the
bargaining unit.
Due to health care,
there
will
be
maternity leave of
six
weeks for
mother and three
days for father.
The company will
not
subcontract
work
the
bargaining unit is
capable
of
performing
nor
close or move the
planet’s operations
during the life of
the agreement,
reduce their energy on searching new
employee and give higher payment than
the employee at company.
This is important part for parents to have
some time for their new born baby. The
mother would have three weeks before and
after the baby born. The father will have
the baby born day and two more days off
after the baby born.
To ensure job security and stability.
1
claudett & Hill-otero
Labor-Management Negotiation Simulation Project
Each student will individually prepare for, and participate in, a simulated labor relations negotiation. Based on a provided scenario, each student will research, select,
justify and prioritize negotiation proposals. Each student will draft, a written proposal and provide legitimate justification to support the proposal. Only the actual
negotiation will be group work.
Issue Selection
Poor
Fair
Good
Excellent
Student demonstrates
Student does not demonstrate Student demonstrates
effectiveness at issue selection Student demonstrates superior
effective issue selection and effectiveness at issue selection and and setting of bargaining
effectiveness at issue selection and
setting of bargaining priorities. setting of bargaining priorities. priorities.
setting of bargaining priorities.
Written Proposal Poor
Fair
Good
Excellent
Student does not demonstrate
effective proposal writing skills.
Proposal is ambiguous or
nonsensical.
Student demonstrates superior
Student mostly demonstrates Student demonstrates effective proposal writing skills. Proposal is
effective proposal writing skills. proposal writing skills. Proposal is clear and unambiguous, and includes
Proposal is somewhat ambiguous. clear and unambiguous.
specific terms.
Fair
Good
Excellent
Poor
Proposal
Justification
Student does not support
proposals with persuasive
justification. Student does not
offer data, reports or charts.
Poor
Student mostly supports proposals Student supports proposals with
with persuasive justification. persuasive justification. Student
Student offers some data, reports offers complete data, reports or
or charts.
charts.
Student supports proposals with
persuasive justification. Student
offers complete data, reports or
charts. Student's justification is
compelling and convincing.
Excellent
Fair
Negotiation
Management
Good
Student does not demonstrate
Student demonstrates effective
effective table and bargaining Student mostly demonstrates table and bargaining team
team management skills. Student effective table and bargaining team management skills. Student
demonstrates poor
management skills. Student demonstrates good
communication and listening demonstrates fair communication communication and listening
skills.
and listening skills.
skills.
Student demonstrates effective ta
and bargaining team managemen
skills. Student demonstrates
excellent communication and
listening skills.
Achievement of
Objectives
Poor
Fair
Good
Excellent
372 Labor Relations
appreciation of and
Mock Negotiating Exercise
This negotiating exercise will help you develop an
union or management bargaining team in formulating strategies and tac-
information covered to this point in the text, you will act as a member of a
tics for negotiations. Following a more detailed approach to contract cost-
between General Materials & Fabrication Company (GMFC) and Local 384
ing and instructions, the exercise presents a copy of the expiring contract
of the United Steelworkers of America.
handled,
hourly
renegoti-
A. CONTRACT COSTING
Contract costing is not straightforward. The cost changes often depend on
changes in employee seniority, the way increased vacations are
and similar issues not directly associated with the amount of an
wage increase. A costing example will be created so that you can see the
effects. Assume a bargaining unit containing 100 employees will
ate its contract. Five pay grades presently have pay rates, given length of
service in the organization, as shown in Table MN.1.
The 100 employees are distributed by grade and seniority, as shown in
Table MN.2.
Table MN.3 shows the historic turnover rates (proportion of employees
who quit or retire in a given year) of bargaining-unit employees by grade
and seniority level.
Seniority
TABLE MN.1
Pay Rates
Grade
1
2.
3
4
5
< 1 yr.
8.50
9.50
10.50
11.50
12.50
1-2 yr. 3-5 yr.
9.00
9.50
10.00 10.50
11.00 11.50
12.00 12.50
13.00 13.50
6-10 yr. > 10 yr.
9.50
9.50
11.00 11.00
12.00 12.50
13.00 13.50
14.00 14.50
TABLE MN.2
Employment Levels
Seniority
< 1 yr. 1-2 yr. 3-5 yr. 6-10 yr. > 10 yr.
Grade
> 10 yr. Total
N CO
1
2.
3
4
5
Total
2
4
5
14
15
3
20
10
20
45
15
10
5
6
8
19
ON
10
11
32
28
100
Chapter 11 Contract Negotiations 373
TABLE MN.3
Grade
Turnover Rates by
Grade and Seniority
1-2 yr.
1
2.
3
4
10 yr.
0.10
0.00
0.02
0.03
0.10
5
The employer's retirement plan provides for full vesting of benefits at
five years of service. Employees who quit before accruing five years of
service forfeit their accrued benefits. The plan is fully funded to provide a
retirement income account for present employees, taking anticipated turn-
over into account. The retirement program provides that employees will
receive an equivalent of 5 percent of their gross pay (regular and overtime)
contributed to their retirement accounts.
The health care program provides hospital and medical insurance cov-
erage paid by the employer. Twenty-five of the employees are single and
without dependents. The other 75 have families, but of these, 5 are families
in which both the husband and the wife are employed by this company, so
premiums need not be paid for both. Health care premiums are $300 per
month for single employees and $700 per month for those with depen-
dents. Premiums are expected to increase 10 percent next year for both
single and family policies.
Under the contract, overtime is apportioned (within grade) on the basis
of seniority, with each employee entitled to five hours of overtime before
the next junior employee in that grade is entitled. After all employees
within the grade have received overtime, the cycle is repeated. During
the last year, overtime was available in the following number of hours by
grade: grade 1–520 hours, grade 2–840, grade 3—1,640, grade 4-1,020,
and grade 5—780. The overtime premium for all these hours was 50 per-
cent. Table MN.4 shows the average number of hours of overtime per
employee by seniority and grade level during the past year.
All employees receive nine paid holidays and three paid sick days each
year. The average employee takes two sick days, regardless of grade or
Seniority
TABLE MN.4
Hours of Overtime
Total
Grade
520
840
1,640
1,020
< 1 yr. 1-2 yr. 3-5 yr. 6-10 yr. > 10 yr.
51.25 55.00
40.00 40.00 42.86
35.00 35.00 37.00 40.00
65.00 67.50 70.00
75.00 78.75
1
2
3
4
780
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