Collect Bargain Contract

Collect Bargain Contract Order Description Union Contract Negotiations Rules: -Each student will be assigned a bargaining team role (union). -Negotiation strategies must be developed within the framework of the scenario provided. -All activities should be directed toward an end result of an agreement that is mutually acceptable and that the respective parties (employees / management) can live with, survive on, and prosper under. Instructions: -Students will be assigned as a member of the union bargaining team. Each student individually will be responsible for developing and posting a collective bargaining negotiation plan (Word Document) based on the assigned scenario that outlines the selection of bargaining team members, defined priorities, negotiating the ground rules, presenting proposals, and negotiation strategies for their assigned team (union). -The plan should also identify the major steps of a collective bargaining negotiation (from selecting bargaining team members all the way to ratifying the contract). You should attempt to anticipate the other side’s proposal topics. Some examples of major issues for negotiations include the following: 1) wages, 2) layoffs & use of seniority, 3) grievance process, 4) health insurance, 5) work conditions, etc. Each student should study the provided sections of the current collective bargaining agreement to identify contract language in need of improvement/deletion or identify key subjects not covered in the current agreement. Any proposed changes to the agreement should be supported with justification. -Each student must complete a minimum of the first four columns of Form OL-1 and include with your posted plan. Form OL-1 should not be shared with others. Lesson Text Book: Human Resource Management, the 12th Edition, By John M. Ivancevich & Robert Konopaske This week’s readings Chapters 15 and 17 Union Contract Negotiations Exercise - Union Scenario (Do not share with others) Union Team Scenario – You are to assume you are a member of a group of employees (Union) who work for Company Sooner Carbon Corporation. Sooner Carbon is located in the state of Oklahoma and has been in operation for approximately 20 years. The home office of Sooner Carbon is located in Albany, NY. Sooner Carbon generated about $40 billion in sales in 2010. The commercial market for their product was $20 billion. This includes all types of products ranging from activated to impregnated carbon products. Products are sold either in various stages in order to satisfy customer needs. Competition in the industry is among purely domestic manufacturers who import specific product lines, and foreign producers. Recently a new manufacturing plant was built in Mexico and several years ago in China. Global competition has severely impacted the U.S. Carbon manufacturing industry for the past decade. In a near complete reversal, over half of all U.S. Carbon products sold in the U.S. markets today are imported. Once global competitors began rapidly entering the U.S. markets, the American manufacturers responded by consolidating or closing U.S. operations, acquiring or building overseas plants, and contracting with foreign companies to produce for the U.S. market. The number of domestic manufacturers has fallen rapidly as weaker firms have exited the industry or have been acquired by the remaining competitors. Sooner Carbon imports into the U.S. market over the last decade have increased at annual rates as much as ten times the increase in American exports to foreign markets even though shipping costs can total as much as one-fourth the value of the shipped products. Labor intensive production operations are being outsourced to China, Vietnam, and Mexico to take advantage of the lower labor costs. American Carbon workers can earn an average hourly wage of about $15 while Chinese workers receive less than $1. Employment in the industry peaked in 2008 and has begun to steadily decline since. On March 1, 2013, the employment contract between the company and Lodge 014 of the International Brotherhood of Carbon Plant Workers expired. In April 2013, negotiations began between the Union and the Company in anticipation of the contract coming to an end. The Union presented demands to the Company which included an across-the-board pay increase of 26%, a four day – 10-hour workweek, and a 25 year full benefit retirement. Assume that the plant is poorly ventilated and not airconditioned, although the Occupational Safety and Health Administration has inspected and approved the plant for safety purposes. The average hourly pay was $16.50. In addition, the workers have hospitalization insurance and a retirement program wherein the employees are eligible for retirement at age 62. The company to date has not made any counter proposals. The company has two other smaller plants in operation, one in China and the other in Mexico. At 12:01 A.M. on March 1, 2013, the company locked all the employees out of the plant and has not permitted re-entry. A skeleton crew of workers made up of management members has been brought in to operate the plant on a very limited basis and it is rumored that the plant will be shut down completely at the end of the year. On March 3, 2013, the Union began picketing the Plant. The union workers have applied for unemployment benefits, which were granted by the Court after a hearing to which the Company protested and made the following two arguments. 1. The workers have not been fired, they are on strike. 2. If the workers are deemed to be terminated, they caused their own demise by making impossible demands during contract negotiations. The Court has ruled the workers are entitled to their unemployment benefits. The parties have agreed to resume negotiations this week. The company has indicated that if an agreement is not reached within the first hours of discussion, the company will close its doors in Oklahoma and all the workers will be out of work. Your task as a group is to choose a negotiating team of three persons, prepare for and develop a course of action based on your research of collective bargaining issues and negotiation strategies, and negotiate the Union contract for the next four years. Your team members who are not negotiators must approve the contract by a majority vote. You are to get as much as possible for your workers in the new collective bargaining agreement (contract). Articles of the Collective Bargaining Agreement: -Article 1: Purpose of Agreement This Agreement, entered into by the Sooner Carbon Corporation, (SCC)-Employer, and The International Brotherhood of Carbon Plant Workers, Lodge 014, (IBCPW)-Union as the Collective Bargaining Agent, pursuant to State Statute, is made to: a. Establish wages, hours, benefits, grievance procedures, and other conditions of employment of represented employees of the Sooner Carbon Corporation; b. Provide for quality product and service throughout Employer’s boundaries on an uninterrupted basis for the benefit of the customers; c. Assist in the amicable adjustments of labor disputes. -Article 2: Recognition Section 2.1: The Sooner Carbon Corporation, hereinafter referred to as Employer, recognizes the International Brotherhood of Carbon Plant Workers, Lodge 014, hereinafter referred to as Union, as the exclusive bargaining agent during the term of this Agreement. All employees shall be covered by this contract. Section 2.2: Employees who have not successfully completed the six (6) month of probationary period, following their date of hire, shall be considered probationary employees. The six (6) month probationary period may be extended by agreement of the Employer and the Union. -Article 3: Authority and Term The Employer and the Union have, by these presents, reduced to writing the Agreement entered into by the Employer and the Union through the collective bargaining process as that term is defined by State Statute. This Agreement shall be effective as of the 1st day of _________, 20___ and shall remain in full force and effect through the 30th day of __________, 20___ pursuant to the terms of State Statute, and governed by the terms of the International Carbon Workers Arbitration Act. -Article 4: Management Rights and Responsibilities Section 4.1: The Employer shall hire employees without regard to membership in the Union, and any employee who is not a member of the Union shall receive and shall be entitled to all benefits, rights, privileges, and agreements contained herein. Section 4.2: The Employer expressly reserves the right to plan, direct, and control all operations, and to hire, discipline, suspend, or discharge any employee, subject to the provisions of this contract. Section 4.3: The Employer shall have the exclusive right to determine the source or sources from which new applicants for work shall be secured; and shall be the sole judge of qualifications of employees for retention with the Employer subject to existing ordinances, state law, and the Grievance Procedures hereinafter specifically set forth. Section 4.4: Except as specifically modified by this Agreement, all the rights, powers and authority the Employer had prior to the signing of this Agreement are retained by the Employer and remain exclusively and without limitation within the rights of the Employer. Section 4.5: The employer and the Union specifically recognize the necessity of continuous improvement in efficient and effective customer service through the Employer’s operations, and each party to this contract agrees to cooperate with the other in accomplishing this result. In this regard there is hereby created an employer-Union Committee, to meet on an as needed basis, but not more than once monthly, to discuss areas of mutual concern. Section 4.6: All rules, regulations, fiscal procedures, working conditions, employer rules and practices and manner of conduction the operation and administration of the Corporation in effect on the execution date of this Agreement shall be deemed as part of this Agreement unless and except as modified or changed by the specific terms of this Agreement. This Agreement shall also supersede any personnel policies of the Sooner Carbon Corporation Home Office which conflict with its terms. Except as stated above, only the terms and conditions of employment of those individuals covered by this agreement shall not be altered except by the agreement of the parties. -Article 5: Bargaining Agent Security Section 5.1: This Agreement shall be binding upon the successors and assignees of the parties hereto during the term of this contract, and no provisions, terms or obligations herein contained shall be affected, modified, altered or changed in any respect whatsoever by the consolidation, merger, or annexation, transfer or assignment of either party hereto, or affected ,modified, altered, or changed in any respect whatsoever by any change of any kind in the ownership, or management, of either party hereto or by change geographically, or place of business of either party hereto. Section 5.2: The employer agrees to deduct, bi-weekly, dues and assessments in the amount certified to be correct by the Secretary of the Union, from the pay of those employees who individually request by means of payroll deduction card authorization that such deductions be made. The Employer further agrees to deduct, bi-weekly, a service fee from the wages of those employees who are in the bargaining unit but who are non-members of the Union, upon the condition that non-Union employees execute and keep effective a valid payroll deduction authorization. The amount of this service fee shall be uniform among all non-Union employees. The total amount of deductions shall be remitted by the Employer to the Treasure of the Union. The Employer shall not be liable either at law or equity for any damages incurred by the Union, which occurs from the Employer’s non-performance or delay of the duties and obligations of this Article 5, Section 5.2 covenant, where such non-performance or delay is due to fire, electrical or machine failure, strike, lockout, governmental order or regulation, or any other failure similar or dissimilar beyond the Employer’s reasonable control. Section 5.3: Upon giving five (5) days written notice, representative(s) of the Union may be granted a reasonable period of time off with pay, by the Company CEO, to conduct bona fide Union business as determined by the CEO. Business to be conducted must be defined and specified at the time the written request is made. Specifically, Union Executive Board members may be granted up to forty-four (44) days off per fiscal year under this section for purposes of performing their official duties, as set forth in the Union constitution and by-laws. No more than an additional one hundred (100) days per fiscal year, as a cumulative total, will be granted for non Executive Board members. No group in excess of five (5) individuals shall be granted identical time off under this provision. However, nothing shall preclude, upon five (5) days notice as above, the use of vacation or other recognized time off with pay by an individual or group of individuals for bona fide Union Lodge 014 business. Section 5.4: Employer agrees not to enter into any other agreement, written or verbal, with any employee association which in any way conflicts with the provisions of this Agreement. Employer further agrees not to discriminate against any employee for activity on behalf of, or membership in Union Lodge 014. Section 5.5: No employee shall be required to participate in any Employer sponsored or recognized charity, nor shall any employee be discriminated against for failure to so participate. No employee shall be subjected to a review of his/her personnel records to determine the employee’s participation or nonparticipation in any Employer sponsored charity. -Article 6: (under review) -Article 7: (under review) -Article 8: Grievance and Arbitration Procedures Grievances arising out of the operation and interpretation of this Agreement shall be handled and settled in the follow manner: Step 1: The aggrieved employee and/or union representative shall discuss the grievance with the employee‘s supervisor within five (5) days of the occurrence. Step 2: Should the answer provided by the supervisor (within three (3) days) not produce a satisfactory solution to the grievance, the grievance shall be reduced to writing and shall state the provision of the agreement which has been violated. The department head shall arrange for a meeting of the aggrieved employee, the union representative, the supervisor, the employee relations supervisor, and himself or herself for the purpose of discussing the grievance. The department head shall provide a written answer to the grievance within 48-hours after the close of the meeting. Step 3: If a satisfactory conclusion is not reached, the grievance can be referred to the plant manager by the Union. The plant manager shall schedule a meeting with in two (2) business days to discuss the grievance with the Union. The local Union can bring in a representative of the International Union at this step, and the plant manager can bring in anyone who he or she feels may aid in the resolution of the grievance. Step 4: If there is no resolution at Step 3, the grievance is appealed to arbitration. The Employer and the Union shall attempt to select an arbitrator. If this attempt fails, the Employer and/or Union shall ask the Federal Mediation and Conciliation Service to submit a list of seven (7) arbitrators. Each party shall eliminate three (3) names from the list by alternately striking one name at a time and the person whose name remains shall serve as the arbitrator. The arbitrator shall render a decision in writing that shall be final and binding upon the parties. The arbitrator to whom any grievance is submitted shall have the authority to interpret and apply the provisions of this Agreement, and the arbitrator’s decision must be in accordance thereto. The arbitrator shall have no jurisdiction or authority to add to, subtract from, or modify any of the terms of this Agreement. The Employer and the Union shall each pay its own expenses incurred in connection with the arbitration and one-half of the expenses and fees of the arbitrator and the facilities used in the arbitration hearing. -Article 9: Skill Incentive Pay Employees who are assigned as department/section trainers shall receive additional incentive pay in the amount of three (3) hours pay per eight (8) hour shift during any period in which the trainer has a trainee assigned to him or her. -Article 10: Seniority Section 10.1: “Seniority” as the continuous length of service of an employee with the Employer within each job classification. Seniority shall commence from the last date which the employee is employed by the employer; however, until the initial employment probation is completed, the employee shall not attain seniority status. At the conclusion of said probation, the initial probationary service shall count as a part of the employee’s seniority. Section 10.2: Seniority shall be determined as between two or more employees by… (under review) Section 10.3: Except where impractical due to skill levels of employees, or where special working conditions exist which would preclude certain employees from working specific shifts or days, and considering staffing levels, seniority shall be the dominant factor to be considered by the department head and/or CEO in determining the priority of each employee to: a. Time when annual vacation is granted b. His or her first choice as to scheduling time off on Thanksgiving, Christmas Eve, Christmas, New Year’s Eve, and New Year’s, it being understood that New Year’s Eve is not a designated holiday under this Agreement. c. Regular scheduled days off d. Order of layoff and recall Section 10.4: Seniority has no bearing on promotion decisions. Section 10.5: Seniority shall be lost upon the occurrence of any of the following events: (under review) a. b. c. d. e. Section 10.6: In the event an employee is reduced in classification, the seniority previously accrued in the former classification shall not be lost; however, the employee so reduced shall not be able to exercise his or her seniority with respect to Article 10, Sections 10.3 (a) through 10.3 (d) for ninety (90) days. Section 10.7: Vacancies and assignments will be made in accordance with the procedures set forth in the employee handbook / operations manual. -Article 11: Personnel Reduction Section 11.1: In the event it becomes necessary to lay-off employees for any reason, employees shall be laid-off in the inverse order of their seniority by job classification. Section 11.2: When an employee is laid-off due to reduction in the workforce, he or she shall be permitted to exercise their seniority rights to bump or replace an employee with less seniority. Such employee may, if he or she so desires, bump any employee in lower classification under the following conditions: a. He or she has more seniority b. He or she can do the available work c. Such bump request is initiated within two (2) working days of the date the employee receives written notice of lay-off. Section 11.3: Employees shall be recalled from lay-off according to their seniority within the job classification. Section 11.4: Notice of recall shall be sent to the employee at his or her last known address by certified mail. If the employee fails to notify the Employer within five (5) calendar days after receipt of such recall notice that the employee intends to return and if the employee after giving such notice of intent to return fails to be available to return to work within ten (10) calendar days after receipt of such recall notice, such employee shall be deemed to have quit. Section 11.5: No new employees shall be hired into a classification until all employees who are on lay-off status from that classification have been offered recall. -Article 12: Personal Leave Section 12.1: Sick Leave – a full-time employee is eligible for sick leave after completing six (6) months of probation with the company. An eligible employee will accumulate sick leave at the rate of one-half day per month of service from date of hire. Sick leave will not be carried over from one year (January 1 to December 31) to the next, and it can be used only for personal illness not covered by workers’ compensation. The Employer retains the right to require a doctor’s certificate as proof that an absence was due to a legitimate injury or illness. Section 12.2: Vacation shall be accrued as follows: (under review) Section 12.3: Emergency Leave a. Death in the Family – in the event of a death in the immediate family of an employee, the employee shall be granted up to three (3) calendar days off, with pay, at the time of the emergency. Immediate family shall be defined as: spouse, children, step-children, mother, father, step-mother, step-father, brother, step-brother, sister, step-sister, grandparents, and grandchildren of the employee and the employees’ spouse. b. Sickness in Family – In the event of sickness or injury to a member of an employee’s immediate family, as defined by above, which is serious enough to warrant the presence of the employee, as certified by the attending physician, the employee shall be granted up to three (3) calendar days off with pay. In the event the sickness or injury which qualifies under the FMLA, the employee may be allowed to use personal sick leave for the duration of leave as certified by a physician. -Article 13: Holidays Employees of the Employer who work a regular forty (40) hour week shall receive the following holidays as paid time off: (under review) -Article 14: Educational Incentive Pay Employees covered by the agreement shall receive tuition reimbursement for college level courses according to the following conditions: a. Courses must be taken for credit hours at an accredited college or university. b. The Employer will reimburse 100% of the employee’s tuition and mandatory fees for courses which are satisfactory completed up to a maximum of $1,250.00 per semester. Satisfactory completed is a letter grade of C minus or above or a letter of satisfactory completion for non graded classes. c. The Union and Employer will jointly determine the degrees which will qualify for reimbursement. Educational incentive pay shall be paid as follows: a. Associates Degree $75.00 per month b. Bachelor Degree $150.00 per month c. Advanced Degree $175.00 per month -Article 15: Insurance All terms, benefits, procedures, policies, methods and manner of operating and administering the current health and dental plans shall continue in full force and effect except for those changes as agreed upon by the Union and Employer. -Article 16: Complete Agreement This agreement is complete. It may be amended by mutual agreement in writing. Such amendment may be effective during the term of this agreement and may extend the term of this agreement. This agreement does not operate to include, nor does it obligate the Company to continue in effect, any working condition, benefit or past practice which is not covered or contained in the agreement. -Article 17: Duration of the Agreement This agreement shall become effective as of ____________________ and shall continue in effect until _________________. Thereafter, it shall renew itself for yearly periods unless written notice of termination is given by one party to the other not less than sixty (60) nor more than ninety (90) days prior to the expiration of this agreement. -Article 18: Labor Management Committee A joint Labor-Management Committee will be formed during FY 2013-2014 to address the following issues as agreed upon by the Union and Employer. Form OL-1 Pre-bargaining Preparation: Part A: Bargaining Subject Area (label the bargaining subject e.g., wages, holidays…) Bargaining Priority (rank in highest order) (ID the priority rank of the bargaining subject) Realistic Expected Outcome (describe in detail the specific outcome expected on subject) Part B: Initial Bargaining Proposals Instructions: For each initial bargaining proposal or counterproposal that your team intends to introduce as part of the bargaining agenda at the joint negotiation meeting, include the complete, specific, and clear wording of each initial subject proposal. Proposals should be stated using the exact contract language your party would prefer to appear in the contract. Exhibits Exhibit 1: Company Balance Sheet 2011 Exhibit 2: Company Income Statement 2010 Exhibit 3: Production and Maintenance Employees by Seniority in OKC Plant 2011 PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)