Management Strategy for Union Negotiations

Running Head: Management Strategy For Union Negotiations 0
MANAGEMENT STRATEGY FOR UNION NEGOTIATIONS

Management Strategy for Union Negotiations 1
Table of Contents
Introduction........................................................................................................................2
1. Management strategy document...................................................................................2
2. Union campaign and strategy........................................................................................5
3. Bargaining Position Analysis.........................................................................................7
4. Negotiation Development............................................................................................10
Conclusion.......................................................................................................................11
References.......................................................................................................................13

Management Strategy for Union Negotiations 2
Introduction
This study is mainly based on labor laws to minimize the cost of Canadian companies which will
help to regulate the needs of employees. A tractor manufacturing company named Volvo Trucks
Canada has been chosen to create a bargaining proposal. A management strategy illustrates
the significance of wages, compensation along with market demands for increasing the
productivity of the company. In this paper, the management strategy and Union campaign
strategy depicts the objectives of the management team and evaluates the financial strength
and demands of the union. In addition, the risks and opportunities associated with the company
can be found by evaluating the bargaining history. Bargaining position analysis is being done to
identify the outcome of lockout or strike in an organization. Action plan has been constructed in
the proposal to distribute and define the roles and responsibilities of each committee member.
Various strategies are used to develop the negotiation process within the company.
1. Management strategy document
a. Composition of Management Negotiating Team
As an HR leader of Volvo Trucks Canada, it can be observed that only zero wage increased in
one year, and directors planned to eliminate the retirement benefits which might affect the
profitability of the company. The negotiating team consists of 50 members and the whole HR
department, Finance department along with the operational department will be represented. The
HR department handles and prepares employees for the wages and benefit proposals. The
finance department helps the negotiating team to understand the risks associated with the
agreement. All the departments have the power to approve the negotiation points because they
control and regulate the finance and operation of the company. The Labor law of Canada
depicts that the employees should be treated equally and it ensures whether the employees are
valued within the organization (labour.gov.on. ca, 2020).

Management Strategy for Union Negotiations 3
b. Management’s objectives
● From the given mandate, it can be stated that there are some risks associated with the
Volvo Trucks Canada due to lack of leadership. The main motive of the company is to
reduce the cost but to maintain the needs of their employees. The main risks are based
on the removal of retiree benefits, which might affect the finance of the company. The
company can gain more stability if they make changes in the compensation rate i.e. the
company should provide compensation which is 1.2 times higher than the average cost.
This will be beneficial for the Volvo Truck Canada as it helps to gain more profitability by
reducing the wage percentage (volvogroup.com, 2020). The relationship of the union
has been strained ad the rate of grievance has increased on a large scale.
● Based on the given scenario, Existing policies which are present in the tractor
manufacturing company are retirement policies to help the ex-employees. However,
Practices such as increasing the compensation of employees and offering vacation
entitlements exist. Items of interest are to minimize the manufacturing cost of the
products by not affecting the employees. Employees demand high increment and the
company need more production which is only possible by establishing a win-win strategy
and it is based on the labor law.
● (i) The company can offer compensation to all the 50 employees who are doing
overtime; for which an approximate wage should be 1.2 times higher than the average. It
will provide benefits to both the company and will satisfy the needs of the employees.
(ii) The internal demographics of the company show that maximum employees fall in the
age group 30-55 and they are associated with the company for more than 20 years and
5 employees are close to retirement.
c. Costing
● Cost of each item