Reference no: EM133182533

A collective agreement between a hospital and the union contained the following:

• a management rights article
• a provision regarding contracting out that provided: "12.01. The Hospital shall not contract out any work usually performed by members of the bargaining unit if, as a result of such contracting out, a layoff of any employees other than casual part-time employees results from such contracting out"
• a technological change article that provided for notice to the union for technological change plus notice to employees who might be laid off

The hospital proposed adoption of a new food preparation system that would involve food being assembled elsewhere by an outside company. The final preparation would be done at the hospital using new equipment that would be installed. The system was similar to one used in the airline industry and involved a $5.5 million investment. If the new system was adopted some hospital employees including cooks would be laid off.

1. Assume you are a union official. On what basis might the union challenge this?
2. Assume you were an employer representative. On what basis might the employer defend the plan?
3. If you were an arbitrator dealing with this situation, what would your decision be?

Please provide a lengthy answer because it is 15 marks question.