NEGOTIATION ASSIGNMENT
Whenever possible use bullet points and identify answers by using the letter
corresponding to each union proposal. Please submit as a .doc or .rtf document
in the designated area in the Grade Centre by the due date.
Seawright Industries is a manufacturer of plastic containers, located in Cambridge
Ontario.
Their production workers are members of the Teamsters, Local 555. They have been
unionized for 2 years, negotiating 2 different contracts, each for 1 year. They were
originally unionized when workers became upset over what they believed was unfair
treatment by a Plant Manager who favoured some workers and dismissed others ‘on a
whim’.
The previous contract negotiation was fractious and resulted in a 25 day strike, prior to
the signing of the contract. A few months after they settled that contract, many of the
production workers staged a one day ‘wildcat’ strike led by their Chief Steward. This
was over a perceived disregard by a supervisor when an alleged safety issue was
reported.
Currently there are 300 members in the bargaining unit. Their current wages and
benefits are as follows:
Average Hourly Wage Rate (AHWR)
$30.00 per worker, per hour.
Wage Impacted Benefits (WIB)
$ 4.50 per worker, per hour.
Non-Wage Impacted Benefits (NWIB)
$ 3.00 per worker, per hour.
Total Compensation Rate (TCR)
$37.50 per worker, per hour.
Wage Impacted Benefits include government mandated employer contributions to
Canada Pension, Employment Insurance, Workers Compensation and Employers
Health Tax. The company pays these as a percentage of each worker’s gross pay.
Non-Wage Impacted Benefits include company provided dental, prescription and life
insurance coverage and the company’s group Retirement Savings Plan (RSP). These
are paid per worker and not based on their salary/income. The company currently pays
a lump sum of $3,100 per worker, each year into the group RSP.
At current rates the WIB is equal to 15% of the AHWR and the NWIB is equal to 10% of
the AHWR. Page 1 of 3 The current contract is set to end on July 1 st 2017. The union has provided
management with a list of their proposals. They are:
A. A one year contract.
B. A wage increase ‘across the board’ of 10% to all workers in the bargaining unit.
C. A signing bonus of $500 per worker.
D. An increase in the employer’s contributions to the Group RSP of $1,500 per
worker, per year.
E. Amending the benefit plan to include short term disability, prescription eyeglass
coverage and out of country medical coverage at an additional cost to Seawright
Industries of $1,040 per worker per year.
F. An increase in the number of union stewards from 6 to 10.
G. The inclusion of a ‘contracting out’ clause guaranteeing that under no
circumstances will any bargaining unit employee be laid off due to any work
being contracted out by Seawright Industries.
H. The inclusion of a ‘technological change’ clause guaranteeing that under no
circumstances will any bargaining unit employee be laid off as a result of
technological change, or technological changes in Seawright Industries’
production process.
I. The reduction of the probationary period for employees from one hundred and
eighty (180) days to thirty (30) days.
J. Inclusion of a clause requiring Seawright Industries to directly deduct union dues
from all workers in the bargaining unit and to remit them directly to the Local on a
monthly basis.
K. The amendment of the ‘bumping clause’ to allow any worker who bumps another
to receive up to six (6) months of training in order to learn the required skills and
to prove that they are capable of performing the new job.
L. Changes in the progressive discipline process and definitions of what constitutes
‘just cause’ for dismissal including the removal of ‘insubordination’ from the list of
offenses that may be considered ‘just cause’.
The negotiating team for the union includes the Local’s Business Agent, Thomas
Corrigan, the Chief Steward, Brian Davidge who led the illegal wildcat strike and 2 of the
Shop Stewards, Helmut Hoyer and Carla Mernick. The Stewards are all long service
employees and considerably older than the average bargaining unit worker. The union
claims that they have the overwhelming support of their workers to ‘bargain
aggressively’ and that their members will support a strike if necessary.
Seawright Industries busy season is the period June to November. Currently the
company has one (1) months’ supply of completed containers in inventory. Page 2 of 3 SUBMISSION REQUIREMENTS As the Director, Human Resources for Seawright Industries you must formulate a
response to each proposal from the union. In order to do so you must calculate the
predicted cost of each proposal. Assume a 40 hour work week and a 52 week work year
for each worker when making your calculations.
1. You will need to calculate on a per hour, per worker basis the new rates based
on the union’s proposals for the:
a) AHWR
b) WIB
c) NWIB
d) The TCR which will be calculated using the above
e) The cost per worker, per hour of the signing bonus which is not included in
the above calculations as it is a one time cost.
You may need to round each of these to the closest ‘cent’. Include which
category each union proposal will be added to. This is worth 10% of the marks
for this assignment. 2. You will need to format and present your proposed written response to each of
their monetary proposals including your own counter proposals (proposals B
through E). Each will be worth 5% of the total mark. 3. Format and compose your written response to each of their non-monetary
proposals (A and F through L) including if applicable your counter proposals.
Each will be worth 5% of the total mark. 4. You realize that somehow contrary to the Ontario Labour Relations Act’s
requirements, your collective agreement does not include a ‘grievance
procedure’. Draft a procedure that meets with statutory requirements, that you
will propose be included in the collective agreement. This is worth 10% of the
total mark. 5. Prior to presenting your proposals you will have to conduct considerable
research. This will then be condensed into a Company Mandate Document.
Explain what research you will conduct, how it might be conducted and who
would sign-off on the Company Mandate Document. This is worth 10% of the
total mark. 6. Explain the process required by the Ontario Labour Relations Act prior to the
Teamsters Local 555 going on a legal strike against Seawright Industries. This is
worth 10% of the total mark.
Page 3 of 3

 

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