Reference no: EM133388346

(A worker's union from Caesars Entertainment in Windsor, Ontario, which is known as Unifor attempted to reach a deal on their most recent collective agreement on the issues regarding wages, unsatisfactory agreement terms, pensions and working conditions. The members, along with their union, had been in negotiations with Caesars Entertainment leading up to the strike deadline. The week prior to the deadline a tentative contract was presented but the members rejected at a rate of 59%. Financial security appeared to be the main reason for the rejection. Doug Boughner, the union vice president, said "members wanted a bigger raise than the employer was willing to accept" (Caesars Windsor club workers strike, 2018). Members were looking for a raise comparable to other clubs and other upcoming increases to minimum wage. Caesars Windsor had proposed a $1.75 per hour pay rate increase over 3 years, as well as added signing bonuses for new employees and an increase to pensions of 1%. However, to the members this was not enough. They wanted to know that their jobs were protected from closure or outsourcing for the duration of the agreement. April 6, 2018, was day one of the strike. As 2,300 dealers, cooks, housekeepers, and janitors prepared to walk off the job, and as management prepared to shut down operations, they had to cancel reservations at the hotel, postpone 12 concerts and events, and render the club non-operational. For how long no one knew. On April 18, 2018 both sides went back to the bargaining table, but talks quickly broke down, as is often the case with distributive bargaining. It took until May 15 for both parties, with help from a provincial conciliator, to resume talks. After lengthy negotiations they presented another contract to the members, which was once again rejected by 53%. This contract offered increased signing bonuses for all workers, kept the pay increase in line with the initial agreement, but added a 4th year at an extra $0.50/hr increase, bringing the total to $2.25 over 4 years (Hill, 2018). Membership was upset that the strike had not been resolved and many of them indicated they wished they had more time to consider the deal before needing to make a decision. "There was no consensus on why union members rejected the latest proposal. For many, it was the additional fourth year on the contract they did not want. Some complained the wage increases were too low, while others complained of poor working conditions, job security or pension concerns" (Battagello, 2018). Both sides met privately with a provincial mediator at the end of May, and went back to the tables on June 02, 2018 for another round of negotiations. These talks were attended by the mediator, as well as the Unifor National President, Jerry Dias, and the regional Caesars Entertainment President, Kevin Laforet. After eight hours of negotiations they had come up with a contract they hoped would meet the needs of the members. The striking members voted 75% in favour of the latest deal and were excited and ready to return to work. With the help of the provincial mediator, the parties finally agreed on a 3 year, rather than a 4-year contract which had previously been rejected. The financial gains were the same as noted in previous contracts with a wage increase of $1.75. Signing bonuses for full time, part time and casual employees remained the same ($1600, $1200 and $675 respectively). Assurances that no existing food outlets would be closed and that no department would be eliminated or outsourced during the three-year term. It took two failed attempts at collective bargaining, but in the end, the parties became effective negotiators. Twice they went to the table and worked out a contract to present, and twice this was rejected by members. Once the mediator got involved, met with both parties individually, and got talks restarted there appeared to be a commitment to ending the strike. By having the presidents from both sides present during the final round of bargaining it seemed to members that this time a fair agreement may be reached. It was told that the strike at Caesars could be shortened if Unifor had clearer understanding of what the members truly wanted and had the members themselves been in agreement. While they went back and forth on secondary issues, what they finally accepted was what was originally offered. The strike at Ceasars Windsor seems to have stemmed from misunderstandings of bargaining goals.)

1. (Based on the above case, discuss why the bargaining between Caesars Windsor Club Workers and Caesars Entertainment failed in the beginning. Give two reasons why it failed and explain two reasons how at the end both parties finally achieved the mutual agreement.)

2. (Based on the above situation, suggest how the union should initiate the collective bargaining to facilitate the process and expedite the agreement, as well as on behalf of the club itself, what features should be there for the Workers Club to be stronger and more effective when conducting the collective bargaining process.)