Reference no: EM133050881

Appendix. Collective Bargaining Simulation: Two-Tier Contract at Community GroceryUnion Private Information

Private Information for the Union Bargaining Team
A Two-Tier Collective Agreement at Community Grocery

Serving as members of the Union bargaining team, you have been given a strong mandate to minimize the disparities between the existing members (Permanent Classification) and future members (Casual Classification). At the same time, you have been charged with protecting the existing entitlements of members.

In order of priority, the Union's bargaining issues are listed here:

1. Casual Classification wages
2. Permanent Classification wages
3. Casual Classification pensions
4. Casual Classification job security

Casual Classification Wages

The Union objects to the Employer's aim to reduce a portion of the jobs into low paid, dead-end transient positions. The wage rate of the Casual Classification should be similar to that of Clerk Level 1, Permanent Classification, or as close to it as possible. The parties have agreed to limit the negotiation of the Casual Classification wages to two issues:

a. Starting rate-Indexed to the starting rate of the Clerk Level 1 schedule or slightly less, such as $2 per hour less. It is important to index the Casual Classification wage rate to some level of the Permanent Classification.

b. Annual increases-Equal to the annual increases in the Permanent Classification or as close to it as possible.

Permanent Classification Wages

The Union recognizes that, even with the financial constraints, there is an opportunity to gain a wage increase for the existing members. However, the Union is deeply suspicious of the Employer's motive for offering a wage increase. The Union will have trouble justifying wage increases for existing members to future members who are payed considerably less. Although the workforce is older (mostly middle aged or older) and most have dependents, very little in the way of savings, and are in dire need of a wage increase, the Union cannot be seen as trading basic union rights such as job security and decent wages for significant wage increases for existing members. However, a reasonable increase for Permanent Classification employees is much needed, irrespective of the terms of the Casual Classification.

Both Parties have agreed that changes to the wages of the Permanent Classification will only be expressed as an across-the-board percentage increase or decrease. There is one outstanding issue:

a. An across-the-board increase for the Permanent Classification

Casual Classification Pensions

The Union rejects the Employer's assertion that the modern grocery industry has no place for fairly paid jobs that offer the traditional host of supports, such as a pension plan. Furthermore, the Union maintains that if the Employer provides fair compensation, which includes benefits like a pension plan, new employees will be interested in a long-term career with the company. The Union's leadership has agreed that the current terms of the pension plan for the Permanent Classification must be protected and some form of pension plan must be available to the Casual Classification.

The parties agree that negotiations concerning the pension plan are limited to changes to the matched Employer funding and will be expressed as a percentage of annual salary.

a. The Union is determined to maintain its current pension plan for the Permanent Classification. The Casual Classification must have the same pension plan as the Permanent Classification (matched up to 4%) or as close as possible.

Casual Classification Job Security

Job security is a priority for the Union, as it is viewed as the only means left to preserve some form of long-term employee security. Without substantially similar job protection, the two classes of employees will struggle to build the solidarity required by the Union to resist the Employer. Without the protection of a Just Cause Provision, employees are vulnerable to job loss. The company will attract only transient workers, thus fulfilling the Employer's prophecy that the grocery industry is largely made up of less committed, short-term employees rather than the type of workers looking for the rewards that come from long-term union membership.

The Union wants the following:

a. Strict limits on the number of Casual Classification employees to be hired, expressed as a ratio: for every existing 10 Permanent employees, 1 Casual Classification employee may be hired (10:1). If this ratio is not achievable, then try for as close as possible.

b. Casual Classification employees are to be covered by the existing Just Cause Provision in the collective agreement. If not achievable, then severance payment beyond statutory minimums for Casual Classification employees terminated without cause, to be expressed as days' pay per months of service. At a minimum, affected employees should receive 2 days' pay for every month of service in addition to the minimums required by employment standards legislation.

c. After 1 year of service, Casual Classification employees will graduate into the Permanent Classification at the bottom of the seniority schedule and be entitled to all of the provisions of the collective agreement afforded to Permanent Classification employees.