Reference no: EM133156642

Collective Bargaining Case Study: Caesars Entertainment

A worker's union from Montau Entertainment in South Thailand, known as Unitor attempted to reach a deal on their most recent collective agreement on the issues regarding wages, unsatisfactory agreement terms, pensions and workplace conditions. The members, along with their union, had been in negotiations with Montau Entertainment leading up to before launching strike. The week prior to the deadline a tentative contract was presented but the club members rejected the offered rate of 59%. Financial security appeared to be the main reason for the rejection. Tony, the union vice president, said "members wanted a bigger raise than the employer was willing to accept" (Club workers, 2018). Members were looking for a raise comparable to other clubs and other upcoming increases to minimum wage. Montau Entertainment 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, members felt that was not enough and they also requested their job retention from closure or outsourcing throughout 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. At last, on the May 15 both parties agreed to restart the negotiation with the help from a provincial conciliator. After lengthy negotiations they presented another contract with increase rate of 53% to the members, which was once again rejected. This contract also offered an increased signing contract 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 (Hong, 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 offer in the agreement before making their decisions. "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" (Bangpo, 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 Unitor National President, Dias Lo, and the regional Montau Entertainment President, Ethan Lo. 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 also given 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 Montau could be shortened had Unitor 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 Montau Entertainment seems to have stemmed from misunderstandings of bargaining goals.)

Question:

There are three (3) types of industrial actions that can be taken by employees and employers in the event of an industrial dispute. Explain the three types of actions and what are the advantages and disadvantages of each action in helping both parties achieve their expectations.