Analyzing Industrial Relations: A Case Study of XYZ Company's Conflict

This case study analyzes a conflict at XYZ Company involving employee unionization and collective bargaining. The situation arises when employees organize a campaign against management, leading to disputes over employment rights and job demands. The management, concerned about potential negative consequences, attempts to dissuade the union through a memorandum referencing a similar case where employees lost their jobs. The case explores key issues, including the termination of an employee, Luke Smith, and the differing perspectives of the management and union. The management emphasizes Smith's violation of company rules and dishonesty, while the union views the termination as an act of retaliation. The study also highlights the importance of management's viewpoint, the role of a market growth workshop in resolving conflicts, and the eventual involvement of a binding arbitrator to settle the dispute. It provides a detailed examination of industrial relations dynamics, conflict management strategies, and the challenges faced by both management and employees in the context of unionization and collective bargaining.

Running head: INDUSTRIAL RELATIONS
INDUSTRIAL RELATIONS
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Executive Summary
This case study presents a common organizational conflict which arise in almost every company
irrespective of their sector and industry under which they are operating. The company XYZ is
dealing with an issue of unionization where the employees are organizing a campaign against the
management for a collective bargaining. The management team was trying hard to make them
understand that the consequence of this campaign will not be in favor of them as there was a
similar case in the market and the employees ultimately had to lose their job. At last a bonding
arbitrator was appointed for solving the dispute.

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Table of Contents
1.1 Introduction...........................................................................................................................3
1.2 Discussion..................................................................................................................................3
1.2.1 Key issues in the scenario of the company.........................................................................3
1.2.2 Management’s point of view for the whole case................................................................5
1.2.3 Market growth workshop....................................................................................................7
1.2.4 Arguments that may be brought by the union team............................................................8
1.2.5 The importance of relationships between union and management of any company........10
1.2.6 If the union was certified then some steps taken by management to approach collective
bargaining..................................................................................................................................12
1.2.7 Top five priorities in collective bargaining from management’s side..............................14
1.2.8 Summary of the argument to the arbitrator.......................................................................16
1.3 Conclusion...............................................................................................................................17

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1.1 Introduction
Organizational conflict is a common thing in the business industry however, it is
important to manage those conflicts as soon as possible because highly impacts their productivity
of the organization and the company can lose their market position as well. Here is a case study
of company XYZ where the employees have formed an illegal union campaign for the purpose
of collective bargaining. Now, the management team will have to settle this dispute. They have
sent an official memorandum to the union team to tell them about the consequences of campaign
which led to employee termination in another organization of the same market. However, this
letter was considered as a type of warning to the union team. In this case study, the management
team have helped their employees a lot to fulfil their individual objectives and also improve their
professional skills by organizing some training program. These programs would help the
employees to improve their efficiency and earn more to fulfil their objectives and the total
productivity of the organization will also increase hence, two objectives will be fulfilled at one
time. However, at the end the origination had to involve binding arbitrator to solve the issue.
1.2 Discussion
1.2.1 Key issues in the scenario of the company
The main problem here is the relationship between the employer and employee of XYZ.
The employees are engaged in union and they believe that being a part of union will help them to
get their employment rights and fulfil their job demands. In a union there are several people who
are fighting for a single interest and force the employers to provide the demanded service to
employees (Ann et al., 2013). However, the employer (XYZ) just like any other organization
was not allowing the fact of forming a unionized team inside the organization and sent one

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memorandum to the union and asked them to stop doing such activities and focus into
productivity as in another organization the union team lost their jobs due these activities
(Ashkenas et al., 2015).
However, another problem was also seen when Luke Smith was terminated due to not
following proper instructions and regulations for lifting that were set up by the company while
he was unloading heavy boxes from truck. It was noticed by James who is an Assistant manager
of Distribution Centre. James was terminated from his job very quickly and the reason provided
by the employers is that firstly, he was not disciplined enough to follow the rules and secondly,
he was lying when asked to him regarding his unprofessional behavior. James was an active
member of Union and a participant in the organized campaign that was initiated by the union
team of that company. One important thing here to notice is that before the incident of Smith,
another employer was also caught few months back doing the same thing but he was shifted to
another department and given a verbal warning. That employee was not terminated from his job.
That employee was not a part of union team and other employees were in doubt that the reason
for termination of Luke may because he was a part of union team.
Here the argument started because the employer was stating that the reason for
termination of Smith is that he lied to the management regarding his act which was not tolerable.
If he confessed the right act then he would be spared like the other employee before few months.
He violated the regulations by not taking measures as well as violated the business framework by
lying to the employers (Bădoi, 2014). However, the union team stated that the employer was
simply terminated Smith because they were against union team and Smith was a part of it. The
employers wanted to set an example of the outcome that could happen if one employee supports
the union team. The termination process for Smith was very fast unlike the other employees and

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that could be because they did not want the case to go more publicize. The conflict between the
employee and the employer was a big reason that Smith was terminated. However, it must be
noted that after this incident the company organized one program related to safety instructions
for lifting, posted banners in each department and supervisors were always reminding of the
measures that were set for the employees to follow so that no employee can ignore or forget the
rules (Bravo, 2019).
1.2.2 Management’s point of view for the whole case
Management of every company is responsible for the acts that are going on inside the
company and it should be maintained properly so that organizational harmony is maintained
every time. It is commonly seen that managements of almost every company are always against
the union team and their formation because somehow they are responsible for bringing chaos
into the organizational system (Chan & Hui, 2014). Works may get delayed, there might be
unnecessary high demand from the employees, strikes and a lot of disturbing events that may
cause if the union team is strong. This slows down or diminishes the productivity level of the
organization. XYZ management team is also worried about the same fact because the union team
was organization a campaign going against the management of the company. The management
team had sent a memorandum which contained the outcomes of unionization and the employees
may also lose their job. The example of another firm was also provided to them however, the
union took it in a wrong way and stated it as a warning letter. The letter contained the outcome
that may happen to the union team for their campaign and the management team also informed
them that they are ready to fight any of the cases against the union team. The letter was not a
warning letter rather a suggestive letter for the employees to stop forming a team against the
management of the company because management will always work for the employees and it is

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their duty to help the management to do their job and respect the decisions of the company
(Chin, 2013).
After the case of Smith’s termination, the union team thought that the management have
terminated him because he was an active participant in the union organized campaign because
few months ago an employee who did the similar act was not terminated rather given a verbal
warning and sifted to anther department. The management team however cleared the fact that the
reason behind termination of Smith was not merely his ignorance of safety measures, rather he
violated the rule of the company by lying about his act and not admitting his absence minded
behavior while working (Chin, 2014). This act was not acceptable for the company and so he
was terminated. The other employee few months back who had committed the same mistake
while working had admitted his actions and apologized, the employee was given a verbal
warning and he was shifted to another department. This shows the kind behavior of the
management towards their employees, they are trying to maintain the harmony inside the
organization. It is nearly impossible to maintain and fulfill each employee’s demand however the
management team tries to keep up with their promise by providing them a friendly environment
for working and paying good amount of salary and wages. Another act by management is that
when after the termination of Smith another employee broke his leg for the ignorant behavior
while doing his job for lifting, the management team organized a training program for the
employees to teach them lifting procedures, in every corner of that department some posters
related to the procedures were fitted and supervisors were also asked to remind the employees
regularly regarding the procedures so that they do not admit at last that they have not understood
the procedures or forgot some steps in the procedures. This was all for the betterment of the
employees (Fairbrother, Lévesque & Hennebert, 2013).

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1.2.3 Market growth workshop
Conflict between the management team and union team has always happened in almost
every organization and hence, there has always emerged the need of third party into the system
who would listen to both the party’s word like a rational person and then find a solution which
would be mutually benefitting for both the conflicting parties. This forum manages the conflict
between different cross-unit issues because it impacts the needs of the customers and market
growth of the company and that is a very serious issue for the company because if they lose their
market position then it will be much harder for them to again retain that position (Ferrell, 2016).
However, in the beginning when the forum was initiated it was not that successful. The
reason was clearly due to the ignorant behavior of the senior managers of the conflicting firm.
The senior managers used to send their subordinated to the meeting because they never took the
matter in a serious manner which made it difficult for the forum to resolve the issue. After this
the forum insisted the senior managers to resolve the issue over a conference call where both the
parties would attend the session (Gent, 2013). Senior managers began to understand that the
issue became more complex due to their non-attendance in the previous sessions and started to
give more attention towards the conference call sessions. This sessions gradually helped the
forum to understand the matter clearly and then mutually find a solution which would benefit
both the parties. The main objective of this forum has always to resolve the issue permanently so
that it does not arise again in future. A lot of time the resolving period may be longer which
would totally depend upon the conflicting issue, longer the issue longer the resolving period.
It is to be noticed that many companies after the conflict is over, they announce the
solution in front of the organizational associates and then put the papers inside a managerial
black box so that it stays safe and can be utilized in future. Some of the important points are

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provided to the social media so that other organizations can get help from the case study to
resolve their issues if there is any kind of similarity between them (Helfen & Fichter, 2013).
These creates a harmony between the organizations and help them to keep the organizational
environment more peaceful and work productively also. The Market growth workshop evolved
into Cross-team workouts which allows the conflict to be more transparent and every detail is
clearly visible to every party. This somehow helps the forum too to understand the need of both
the parties more quickly and find a solution fast. It is important to resolve organizational
conflicts because this slows down the productive process and that impacts the organization more.
Hence, for the sake of efficient and smooth productivity of the organization, the management
calls out the professionals in the initial stage of the conflict to understand the situation suggest a
solution for it (ISMAILI, 2019).
1.2.4 Arguments that may be brought by the union team
As per this case study, the union team was not certified for bargaining which means the
activities they are doing is not justified and those acts can be considered to be illegal acts. The
union team was campaigning even after the management team asked them not to do so. The
management of the organization have sent them a memorandum to suggest them for taking
lesson from one of the organization in the market whose union team was exactly behaving and
arguing like them and then they had to lose their job (Jiménez, Martos & Jiménez, 2015). These
kind of consequences should be avoided by the union team but they took the memorandum letter
as a warning letter. The most arguing statement occurred after the incident of Smith when he was
terminated from the company upon an act which already happened in the company but that
employee was not terminated. Smith was an active participant in the campaign organized by
union team for the purpose of bargaining unit. The union team can argue here with the fact that

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the management team intentionally did this because they wanted to provide a non-verbal warning
for the employees of the company not to join union team. A big conflict can take place over this
matter because management team terminated Smith and did all the procedures very fast which
was unusual and announced that the negligence act was not the only factor for termination, Smith
lied to the management about this action which is violation of business framework. After Smith’s
case, another employee broke his leg due to similar negligence of safety measures during lifting
of heavy boxes. At that time also the employee was not terminated. This incidence has a huge
probability of occurrence of future chaos in the organization (Koh et al., 2013).
The union team can take the last incidence as a fact that they were right about Smith.
Smith was terminated because he was involved in the union activities and before anyone could
argue, Smith’s termination procedures were all done. Union can legally present this case in front
of the forum and seek for justice as the management team cannot threat them like this. Forming a
union organization is employee’s right and they can do this to demand and secure their
objectives for the job? However, it should be noted that the management’s power is way more
than the union team and they are not even legally approved hence union participants have a very
less chance of winning over the management team. the argument which could be brought by the
union team will ultimately be baseless and unjustified because after the case of Smith and the
employee with broken leg, the management decided to introduce some new program where the
existing employees will be taught regarding lifting procedures and related safety measures which
needs to be followed by the employees (Koskinen-Olsson, 2019). Some posters were fitted and
supervisors also kept a routine check over the employee’s activities. All these activities were for
the safety purpose of employees. These facts can favor management team’s side so it is quite
useless to bring this matter into an argument. Union team felt that they would demand their

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needs in the organization and argue about the details regarding Smith’s termination. There is a
strong point for union team because a partiality was shown in Smith’s case but other employee
with similar ignorance in activities were not terminated. It is the right of employees to ask their
manager for justified details as why Smith was terminated and why the other employees were
allowed to stay in the company (Lennard, 2014).
1.2.5 The importance of relationships between union and management of any
company
Irrespective of the sector under which any company operates, it is common that there will
be a union in the company and difference between the preferences will occur at one point of
time. At this point conflict is the common factor which disturbs the productivity efficiency of the
organization and can result into losing the market position. It is important for every organization
to maintain a good and healthy relationship between the union team and management team.
Good relationship means minimizing conflicts between the teams and converting both of their
interests into one mutual interest (Madureira et al., 2014). In one organization, it can be quite
difficult for the company to work with two conflicting interests and there is a high chance that
chaos will occur much frequently. If there is a good relationship between both the teams then the
organization will function with much better efficiency and the market position will also be
sustained. Some required policies and strategies cannot be introduced if there will be a constant
conflict between both teams. The management team will not properly function because their
main focus will be towards the conflict rather than in the organizational betterment. A better
relationship between both teams will help the organization much better and also help attracting
customers because it is a good sign that organization has adopted some strategic measures which
helps both the team to maintain a good relation (Martins, van Mil & Da Costa, 2015). There

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many real life organizational examples in different areas of the world where different companies
at first were struggling to maintain a cooperation between both the teams and after applying
some measures and strategies, they were perfectly able to manage their operations and
productivity in such a way that it fulfills both of their demands at a time (Marzán, 2013).
There are some procedures which can help the management and union to grow a healthy
relationship between them so that there is no conflicts and one team does not involve in others
decision making. Those procedures are following:
 Regular communication: it is very important for both the team to have a regular
communication between each other as it helps to minimize conflicts and understand each
other much better. This step is important because employer’s business may get affected
of the union starts involving themselves into it. Getting a good pay is an advantage for
the union participants to maintain a good relationship with the management team
(Memun.org., 2020).
 Mutual respect: a good communication can only happen when there is a mutual respect
between each other. If both the team equally respects each other then there will be a less
chance of having conflicts. Management should focus into controlling working
environment and resource while the union teams must represent employees in their
workplace. Any organization can run only with the happy employees and management
and a good cooperation between will help the organization to be more productive and
gain more respect form market. Mutual respect also helps the management and
employees to meet their individual goals.
 Proactive policies: it is needless to say that employees work for their own interest and
hence this can bring conflict in the management’s decision. For the purpose that