Reference no: EM133179732

Case Study: Khatric Manufacturing Company's Collective Bargaining

Khatric Manufacturing Company has been manufacturing plastic household items for 60 years. As the leading manufacturing company in Jamaica, the C.E.O., Marc Richards, has announced the diamond year-long celebration to celebrate their achievement. With over 2000 employees, the Board of Directors has approved the diamond celebration committee, which comprises of staff members from the different departments and units.  However, members of staff were questioning why the same procedure was not used to create industrial harmony in the workplace, to address the many outstanding and always looming issues within the workplace.

The disgruntled staff members have planned to participate in an industrial action on the same day that the company is having a media launch to announce the diamond anniversary plans. The Southern Trade Union (STU) has written to the CEO and the HR Director informing them of the planned industrial action, unless the company sets a date to negotiate the Claim that was submitted for over four months, without a set date.

The business has been successful and the workers realize that their salaries are close to minimum wage, with little or no hope of an increase soon. The union has started to galvanize the workers, to be on alert for the final decision and their participation in the planned industrial action. The management team got information through the grapevine of the plans of the union and staff members.

The CEO wrote to the STU and requested a meeting with them.  The union wrote back to the CEO and informed them that they will not attend any meeting, until a date is scheduled for the negotiation of their salary claim for the next two years.  Having received the response, the CEO summoned the management team to an emergency meeting. At the meeting, plans were put in place for each department to prepare for the pending industrial action.  The Operations Director, Finance Director and the HR Director were asked to activate their contingency plans, in the event the industrial action is implemented.

Mr. Richards highlighted some of the items that were up for negotiation. Included were a 20% increase in salary and benefits, 12% increase in uniform allowance, and the implementation of an Occupational Health and Safety (OHS) policy.  He also stated that the workers were dissatisfied with many things within the company and wanted to have their voices being heard.  Mr. Richards informed the management team that the workers were dissatisfied with their compensation package, the provision of sufficient personal protective equipment, equity in benefits, payment for Sick Leave, Vacation Leave and Maternity Leave, hazard allowance, health insurance, accidental and death benefits, and poor communication from top management.

Mr. Richards informed the management team that the company may have to consider laying off staff andor redundancy. He indicated that the decision was due to the downturn in the economy because of the Covid-19 pandemic.

He added that the company would soon finalize plans to start the collective bargaining process.

The staff members heard about the CEO's meeting and were eager to have the collective bargaining started, which would prevent or delay management laying off or making the staff redundant. He emphasized that persons would be recalled and given contracts for employment. With the trade union representation, the matter would be dealt with in keeping with the government's labour laws.

Staff members have been demotivated, as they do not feel that their efforts of working hard were appreciated by the management team. Despite having an employee recognition and employee assistant programmes in the Human Resource Manual, the programmes were stopped by the current CEO. With the collective bargaining about to take place, employees are hopeful that those programmes will be reinstated.

QUESTIONS

(a) Recommend four (4) contingency plans that the company should put in place to minimize the negative impact of the industrial action.

(b)  Should the Southern Trade Union (STU) carry out their threat of industrial action, describe four (4) tactics that they may use.

(c) What impact can taking strike action have on the employees of Khatric Manufacturing Company. Support your views with details from a relevant Jamaican case ruling.