Chat with AI
Labor Relations 12th Edition by John Fossum
Edition 12ISBN: 978-0077862473Labor Relations 12th Edition by John Fossum
Edition 12ISBN: 978-0077862473 Exercise 1
Case: GMFC Impasse
Assume you are director of industrial relations for GMFC. The company and the union have failed to agree on a new contract, and the old contract expired last week. Two issues are unresolved, and no movement has been made on these for more than 10 days. The union is demanding 10 cents an hour more than the company is willing to offer, and management continues to demand some employee co-payments for medical care. This is the first negotiation in 15 years in which a new contract has not been ratified before the old one expired.
Local 384 voted a strike authorization about a month ago, but the leaders have not indicated at this point whether they intend to strike. Production managers are lobbying for a lockout to avoid material losses if the heated steel treating process must be shut down rapidly. Marketing managers want production maintained to meet orders scheduled for shipment. They argue the union doesn't intend to strike because it hasn't already done so.
In the executive council meeting this morning, financial officers briefed the top executives of GMFC and indicated the company could accept a labor cost increase of 5 cents an hour more, but only if this is a firm figure and not subject to increases over the term of the contract. Unfortunately, the union appeared adamant that it will not agree to any health care co-payment.
It is now your turn to recommend strategy to the company in this impasse. Considering the evidence, what action should the company take? Outline the action, including processes used and timetables. Consider the possibility that your strategy may trigger a strike or other union activity.
Assume you are director of industrial relations for GMFC. The company and the union have failed to agree on a new contract, and the old contract expired last week. Two issues are unresolved, and no movement has been made on these for more than 10 days. The union is demanding 10 cents an hour more than the company is willing to offer, and management continues to demand some employee co-payments for medical care. This is the first negotiation in 15 years in which a new contract has not been ratified before the old one expired.
Local 384 voted a strike authorization about a month ago, but the leaders have not indicated at this point whether they intend to strike. Production managers are lobbying for a lockout to avoid material losses if the heated steel treating process must be shut down rapidly. Marketing managers want production maintained to meet orders scheduled for shipment. They argue the union doesn't intend to strike because it hasn't already done so.
In the executive council meeting this morning, financial officers briefed the top executives of GMFC and indicated the company could accept a labor cost increase of 5 cents an hour more, but only if this is a firm figure and not subject to increases over the term of the contract. Unfortunately, the union appeared adamant that it will not agree to any health care co-payment.
It is now your turn to recommend strategy to the company in this impasse. Considering the evidence, what action should the company take? Outline the action, including processes used and timetables. Consider the possibility that your strategy may trigger a strike or other union activity.
Explanation
Verified
Verified
Case summary:
Mr. Y is the director indu...
Labor Relations 12th Edition by John Fossum
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
