Would it be better to take a strike or to avoid one? Suppose that you offered la

Question

Would it be better to take a strike or to avoid one? Suppose that you offered labor the minimum – 80% of the current wage, no benefits, no profit sharing, no wage escalator. After a three month strike you could expect to settle half way between their demands and your offer, at least 10% below your competitors. How much money is that per year? (Tip – take 10% of the total Labor Cost on the Annual Report Income Statement.) How much would you save over the next five years? Assume that a strike would hurt your productivity gains by cutting them half. If your productivity index is now 1.12, and it dropped to 1.06, you would have to hire additional workers. Estimate what this would cost you. (Tip. Look at last year’s total Labor Cost on the Annual Report Income Statement. This was your cost at your current productivity level. If productivity falls, you labor cost would go up. For example, if the productivity level fell by .06, you would need 1-1/(1.06) = 5.7% more workers. Your labor costs would increase by 5.7%.) Given these tradeoffs, what do you want your company to offer in the labor negotiation this round?

Explanation / Answer

Status for any arrangement should being with different steps expected to develop negotiation system

Review of Previous Negotiation:

Start the system by minding union inspiration from past arrangement. The method of investigating the minutes exchange will allow to HR master to contemplate the conflict made by both sides and observer answer given in gratefulness to the disputes. Investigating the minuses of past exchanges, incorporate the procedure, timing concession and get consistently gives the best learning information and pointer of future behavior as for union

B . Review of working learning in the midst of the life of the last contract

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