Option 2 (MO3-1, MO3-4): Based on the material covered in Module 3 (Chapter 14 o

Question

Option 2 (MO3-1, MO3-4): Based on the material covered in Module 3 (Chapter 14 of the text), select one issue (i.e., a single issue such as wages, days off, but not a combination of issues) that could be negotiated during collective bargaining, identify the starting point/initial point on the issue for both the union and management. You need to specify a precise starting point/initial point, such as that used in the mini-lecture, but do not use the exact mini-lecture data. Next identify the resistance point for each party. Again, specify a precise resistance point. Determine where an agreement can be reached based on your example. State precisely the entire area where an agreement can be reached.

Explanation / Answer

Grievance is any feeling of dissatisfaction that an employee may feel at his workplace. It is the duty of managers to offer effective grievance handling with the help of collective bargaining. Effective grievance handling and collective bargaining helps in establishing better connect and rapport between the employee and the company.

The specific steps involved in grievance handling and collective bargaining process are:

In my company, collective bargaining machinery is being resorted to discuss the way-out to reduce the operations cost. Operational cost of the company was quite high and the company was thinking of ways in which this could be curtailed. The company is offering 2 alternatives:

The employees were not happy with either of the alternative as in both cases, the brunt was suffered by them. So a grievance was raised and I was allotted to conduct a collective bargaining machinery to solve the same.

As the IR director, I would try to present the management’s perspective in a clear and concise manner in the bargaining process. The management would let the employee union to present their arguments first and the team will check the feasibility of each. Then the management side will present their case. On the behalf of management, I would try that the employee union agrees for reduction in labor cost as termination of employees will not be beneficial for either party. The employees will lose their job and security while the company will lose their valuable employees. A small cut in labor cost, with a promise of offering good bonus on company’s performance can be the final argument of the management side.

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