BARGAINING EXERCISE -TEAM 1
Linden Company, Inc. has been in business in St. Louis County for 40 years. It is engaged in the busines of purchase, sort, package and distribution of prescription medication. The Alpha and Omega Union, local 2143, represents about 70% of the 450 workers, and the other 30% of the workers do not belong to the union, but do pay a portion of the union dues in exchange for earning the same wages and benefits as the union members. The collective bargaining contract has lasted for 3 years and expired two weeks ago. Negotiating teams from management and from the union began meeting for collective bargaining on a new contract, and have had two preliminary meetings so far. You on behalf of your respective teams are to bring these negotiations to a conclusion with agreement on the following issue
1. Wages-Currently the worker wages are $26 per hour. The union wants no lower than a $2.50 per hour increase. Management wants no greater than a $1.00 per hour increase.
2. Family Leave-Currently this is controlled by federal law, which affords up to 12 weeks of unpaid leave. The union wants no lower than $500 per week. Management wants to try to stay with no payment.
3. Health Care-Currently the Company pays for health care for all employees and their families if the employee has worked for 1 year or more, and the deductible is $5,000 annually per employee and their family. The union wants to reduce the vesting time to 6 months.
Management wants to eliminate paying for health care and make a VERBA lump sum payment.
4. Right-To-Work legislation is being proposed in the State Legislature. The union wants a provision in the contract to protect against this and make the workplace a "Union Shop" Management does not want such a provision in the contract. Neither party has been able thus far to come up with any compromise position.
Divide the issues among the team members. Come up with strategies for negotiating and set a goal you wish to eventually reach in the negotiations. You will be graded as individuals and on the research and preparation you have put into the Exercise, the organization and clarity with which you handle the negotiations, how you handle counter proposals by the other side of the negotiations, and as you near the end of the negotiations, how you work with the other members of your team to try to reach the desired agreement.