Group Collective Bargaining Negotiation: A Comprehensive Report

Desklib provides past papers and solved assignments for students. This report details a successful union negotiation in a hospital.

GROUP COLLECTIVE BARGAINING ASSIGNMENT

PLANNING DOCUMENT
A. Issues:
We have identified the four major issues that our union members are facing in the hospital.
Based on priority the issues are:
1st – Wages
2nd – Medical Benefits
3rd – Career Ladder
4th - Childcare
Rationale for the prioritization:
Our first issue is wages. It is an extremely important bargaining issue for our union as our
union is consist of a majority of the workers at the hospital and the average wage of our unit
member is $20.00/hour. With this amount, most of the employees are unable to pay their
necessary monthly bills. In addition to this, due to inflation in consumer prices, the hospital
has not kept the past contract with the union. The current salary structure at the hospital is
not even complying with the other hospitals in the region. Thus, it is the most serious issue
as appropriate wages are the basic needs of the employees.
Our next issue is a medical benefit; it has been allegedly found that the hospital is going to
deduct the increased amount of extended health care services from the salaries of the
employees that were used to provide free of charge to the employees. It is very unfair for
the employees as the provided wages already does not meet with industry standards and if
any additional cost is deducted from the employee’s salary than they would not able to
meet their basic needs. Thus, it is very important to restrain hospital from charging any
exorbitant cost against the employee's salary.
The third issue is related to the promotions and career opportunities within the hospital.
The majority of the workers in the hospital are women despite this, the leading positions are
held by men in each department that reflects inequality and sex discrimination and
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unmotivated the existing employees. Thus, the management should provide growth
opportunities to all of its existing qualified employees before recruiting through any external
sources. The desirability of growth is the second most important factor for any employees.
The last issue is childcare as the majority of the employees are women and have young
children. It becomes difficult for them to manage the work-life balance. Therefore, the
hospital should think to provide “fee-for-service” on-site childcare center that would be
advantageous for the employees as well as the hospital as it will be less expensive for
employees and they can concentrate on their work along with ensured care for their child.
B. Proposal:
First Proposal:
 We would like to have a 10% increase of $2.00/hour for every worker. This will cost
management around $2.5 million every year and the average monthly salary of every
worker would be $320 per month.
 The management should maintain 100% company-paid family medical insurance as
employees could not afford any new charges against their pay.
 The management should offer the job vacancies primarily to the internal employees
in each department before posting it outside the organization.
 The management should provide an on-site child care center at the hospital by using
existing vacant space. The management could also charge a fee for such services
from the employees.
Rationale for Proposal:
The first proposal is aimed at obtaining as favorable outcomes as possible that are in the
interest of the union member. So we have planned to primarily propose a 10% increase in
wages despite our goal of 5%. For the medical benefit, we want to avoid any extra burden
on employee salary. We have also aimed at promoting equity within the hospital in respect
of career and growth and we have also understood the struggle of employees with young
children so we have proposed a plan for an on-site center. With our first proposal, we would
be clearly able to analyze management opinions.
Second/revised proposal:
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 we have proposed to negotiate our first proposal as our primary goal is to get at
least 5% of the increase in the wages.
 For medical benefits, it has been proposed that the management would share 50%
medical benefit with the employees.
 In relation with job opportunities, we would stick to our first proposal and the first
proposal is revised with the fact that 75% of the workforce of the hospital is
consisting of women employees but higher job positions are occupied by the males
that reflect a pattern of sex discrimination within the hospital.
 The company should provide an on-site childcare center or childcare subsidies and
financial benefits for the employees to support employees with young children.
Rationale for revised proposal:
The second proposal is set to negotiate with the management at specific issues like wages
and medical benefit that are our priority issue. The second proposal has also supported in
agreeing on management to develop childcare policies for the employees.
C. Union Member
1. Opening statement on the Issue:
Greetings to everyone, I am Gurjeet Singh and I am the facilitator of my team. Today, my
union member and I are here to negotiate on certain issues that we are confronting within
the hospital like wages, medical benefits, career ladder, and child care. Our first priority
issue is wages that will be presented by Manjinder Singh Dhaliwal, next issue of Medical
Benefit will be presented by Harwinder Singh, the issue of career ladder will be presented by
gurjeet Singh and I will present the issue of Childcare. These are the most common issues
that influence the majority of our union members and should need to be highlighted in front
of the management to find the proper solution to our problem.
2. Explanation:
The four issues of wages, medical benefits, career ladder, and childcare are the most
common issues that all of our union members are experiencing within the hospital. First of
all, we don’t think that the management is fair in its salary structure as the provided salary is
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insufficient for fulfilling the basic needs of the employees as well as it is below than the
average wage standard in the industry. The second thing is, the management has decided to
increase the number of extended healthcare services for the employees and their family
member that was free of cost for the employees but it has been allegedly found that the
hospital is going to charge for the increased insurance cost from the monthly salary of the
employees. If it is true then the hospital should back-off their decision as the provided salary
is already not sufficient for the employees and the employees could not afford the extra
charges against their wages. Thus, if the management wants to increase health care facilities
for employees it should be 100% incurred by the company.
The next issue is the presence of sex discrimination and unreasonable management
practices in terms of jobs and promotion in the hospital. The hospital is unfair with the
majority of its workers as most of the workers are female and they do not have proper
growth opportunities in the hospital. This is evident by the fact that despite female majority,
men hold the leading positions in the hospital. This clearly reflects as sex discrimination that
is a legal offense too. Female workers should have equal opportunities like their male
counterparts. A person with proper qualifications and experience within the hospital should
have proper growth opportunities.
In addition to this, the employees are also confronting with the issues of work-life balance
as the majority of our union members have young children who are in strong need of an on-
site childcare center at the hospital. This will support the employees in meeting their
personal and professional responsibilities effectively. The management could also benefit
from this as employee productivity would be increased if they have proper facilities for their
children at their workplace.
3. First Proposal:
By considering these issues, we have decided to propose certain changes and development
in the current system and policies of the management.
 For dealing with the issue of wages we would like to have a 10% increase of
$2.00/hour for every worker. This will cost management around $2.5 million every
year and the average monthly salary of every worker would be $320 per month.
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 In terms of Medical benefit, the management should maintain 100% company-paid
family medical insurance as employees could not afford any new charges against
their pay.
 For issues related to the career ladder, the management should offer the job
vacancies primarily to the internal employees in each department before posting it
outside the organization.
 The management should also consider the personal responsibilities of the employees
who have young children and should provide an on-site child care center at the
hospital by using existing vacant space. The management could also charge a fee for
such services from the employees, despite this, it would be much profitable for the
hospital and employees. around 75% of the employees need this service as they
have children from 6 months to 2 years of age.
4. Anticipated Response from Management:
Regarding our first proposal, management may present certain favorable or unfavorable
responses such as:
 For wages, the management would anticipate that the proposed demand of 10%
increase in the wages is unreasonable or too high for the company. The
management could also argue that it is more than the industry standards.
 For medical benefits, the management may try to negotiate with the union to share
the increased amount of medical benefit with the employees.
 The proposed career ladder policy is in the interest of both the employees and the
management so the management may not have any issues regarding the union
proposal.
 Initially, management would decline the proposal of on-site childcare center within
the hospital as it would in no interest for the hospital.
5. Your response and counter-proposal:
The Management opinions and arguments would be counted with proper analysis;
 For wages, the management has clearly declined the 10% increase in wages. We
already have an idea that the management would not easily agree to the proposed
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rate of salary increment. So we have proposed to negotiate our first proposal as our
primary goal is to get at least 5% of the increase in the wages. So we have proposed
the same.
 For medical benefits, with the discretion of union members, we have decided to
negotiate with the management as small share as possible. It has been proposed
that the management would share 50% and 50% of medical benefit would be shared
by the employees.
 In relation with job opportunities, we would stick to our first proposal and the first
proposal is revised with the fact that 75% of the workforce of the hospital is
consisting of women employees but higher job positions are occupied by the males
that reflect a pattern of sex discrimination within the hospital.
 Regarding childcare, the union has proposed that the childcare facilities are very
important and beneficial for the employees as well as the company. The employees
feel distraction if their children are alone at home that negatively affects their work
performance. Moreover, It is very essential for the overall growth of the child and
would support in providing job opportunities to the single mother’s. Private
childcare centers are very expensive and not trustworthy. Thus, the company should
provide an on-site childcare center or childcare subsidies and financial benefits for
the employees to support employees with young children. Our survey has shown
that 60% of the employees need onsite childcare services while 30% demands
childcare subsidies and 10% demands financial benefits.
D. Management Member:
1. Opening Statement on the Issue:
Hello everyone, we value your contribution to the hospital and would like to ensure all the
union members that their issues will be positively heard and solved according to the
organizational policies and system. We understand all of your issues and would definitely
cooperate to solve them.
2 Explanation:
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The primary issue of wage is clearly analyzed and understood. The main reasons for low
wages are obvious, as the increasing inflation in consumer prices has affected the financial
management of the overall organization. However, our hospital is working on financial
planning and budgets to solve this issue. Coming to next, we have decided to increase
medical benefit and services for all of our employees. This decision is in favor of the
employees, as they will be able to meet the health care needs of their family and
themselves at a reasonable price at the hospital. Regarding the job opportunities, our
hospital does not practice any kind of discrimination. The employment and promotions in
the hospital are based on skills and qualification of the candidates. Lastly, the issue related
to the childcare is not a big issue in the opinions of the management and the employees can
easily find a childcare center around the city.
3. Response to the Union’s proposal and your opening Position:
In response to the first proposal of the union is as follows;
 The demand for union regarding the salary increment at 10% is very high and
unreasonable. The hospital has to incur so many costs and a budget of $2.5 million is
a really big amount for the hospital. It would negatively affect the other operations
of the management.
 The decision of increasing Medical benefit is in favor of employees, but it is not
possible to provide a 100% benefit from the company's side. Although we could
negotiate to share medical benefits insurance fund with the employees.
 The employment of male at leading positions is just coincidence and if the union
members think that it is discrimination then we would welcome their proposal as it is
in the interest of our employees and the company
 The development of the childcare center would be very expensive for the hospital in
the present financial conditions.
4. Anticipated Response from the union:
 The union has proposed to negotiate their primary proposal of 10% increase in the
wages.
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 For the medical benefit, the union members have agreed to share the cost of
insurance and proposed to share only 50% from their side.
 The unions have presented more facts to strengthen their proposal for providing job
opportunities to the existing employees of the hospital.
 Union has stick to their proposal and proposed that we should provide an on-site
childcare center or childcare subsidies and financial benefits for the employees. they
have presented survey results showing that 60% of the employees need onsite
childcare services while 30% demands childcare subsidies and 10% demands
financial benefits.
5. Response to the Union’s Revised Proposal:
At the discretion of the management team the following response to all the four issues have
been presented;
 The management team has decided to offer a final 5% increase to the employee’s
salary.
 We have decided to share 40% of the insurance cost with the employees and the
employees would incur the remaining 60%.
 We have agreed to the union’s proposal and decided to a one-week posting of a job
for internal employees.
 The management has finally decided to consider the union's request and offer a 40%
discount on the private childcare services for the employees at the selected childcare
centers in the city.
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OUTCOME DOCUMENT
Wages:
After bargaining and negotiation between the management, the final increase of 5% in the
current wage of the employees is decided. It is the primary issue for the union and the union
has successfully achieved its desired aim of getting a 5% increase in employee wages. This
will cost around $1.25 million to the company yearly.
Medical Benefits:
The final outcome to the second issue of medical benefit is that the instead of deducting the
total amount of increase insurance cost from the employee's salary the company the
insurance cost will be shared among the company and the employees at 60% and 40%
respectively.
Career Ladder:
The union has successfully achieved its aim of developing equitable career opportunities for
all the employees of the organization. The company has prioritized to recruit employees
internally through the one-week posting of job vacancy within each department of the
hospital.
Childcare:
The main objective of the union is to have an on-site child care center for the employee as
the majority of the employees has young children. However, the management has not
approved to this but has agreed to provide 40% subsidy for childcare expenses for its
employees at the selected childcare centers in the city. This would be profitable for both the
employee and the organization.
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EVALUATION OF THE BARGAINING PRESENTATIONS:
1. What worked well?
During the bargaining process, the most favorable thing is that the union has
achieved its aim of getting 5% increase in the wages and the negotiation and
bargaining for wages is implemented according to the set plan.
2. What did you observe to be the most challenging for each team?
The most challenging thing for our team is to agree management in providing
childcare center or subsidies for the employees. in order to strongly negotiate with
the management, we have to perform an internal survey and present facts to the
management.
3. What suggestions do you have for any improvements the team could make?
There are so many grounds where the team has to develop and improve. The
primary thing is that the team should focus on negotiating with proper facts and
analysis of the overall situation and formulate plans accordingly.
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