Reference no: EM133043137

Considerations for Management as they begin to prepare for negotiations - management's first offer

• • Beginning offer Management will present to the Union Employees - This means if you were management for this firm, what would your initial/first offer be to the labor union employees in each of the categories below.

Part Two: CFPac Workers Offer 

•  Considerations for Labor Union employees as they begin to prepare for negotiations - union workers first offer
• Beginning offer the Union Employees will present to management - This means if you were the employees in the union, what would your initial/first offer be to the management of the firm in each of the categories below.

Part Three: Your Personal Analysis of this Assignment Experience

•  Analysis of what you have gained from this assignment and insights you now have into labor union negotiations. Understand that negotiations go on and on sometimes for years. But each set of contract negotiations has to begin somewhere - and this is what I'm having you look at in this assignment. First offers don't include what you really want - it's your starting point. This is a paragraph or two summary analysis of what you have learned from this assignment and from studying unions in your chapter reading.
• YOUR ASSIGNMENT RESPONSE MUST INCLUDE ALL THREE PARTS - This can be completed in one document - Simply separate where Part 1 begins and ends from where Part 2 begins and ends from where Part 3 begins and ends.

Management -

Put yourself in the role of President and Owner of Cooper Plastics Corp. located in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc.

There is a union, CPFacWorkers, representing the 95 factory workers at Cooper Plastics.

It is time for the management team at Cooper to once again negotiate with the CPFacWorkers.

Your negotiations document needs to include the following bulleted list of items for BOTH Management and the Union - you must include these categories for both offers:

• Length of the next contract in years - Labor contracts are frequently 2-4 years in length
• Base pay
• Annual pay increases for each year of your labor contract
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs - calculate how much your increases are going to cost you - you need to provide me a total of costs and how you arrived at that number
• Source of money for increased costs - where is the money coming from for these increased costs - this is obviously an assumption based on the information you have

Data from Current Contract, which expires in December 2021:

•  
  • Contract began in March 2017
  • CPFacWorkers conceded to 20 layoffs when negotiating the 2017-2021 contract
  • Remaining workers agreed to a 10% pay cut to help the company continue to recover from the recent US recession
  • Sick days were reduced from 10 to 6
  • Holidays reduced from 10 to 6
• 7am-3pm shift - 50 workers - $1,040,000
• 3pm-11pm shift - 30 workers - $624,000
• 11pm-7am shift - 15 workers - $312,000
• Managers - 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime - time and a half; 2019-2020 no OT has been worked

Sales:                                                              Profits:

• 2017 $4,000,000                                          2017 $1,040,000
• 2018 $5,250,000                                          2018 $2,392,000
• 2019 $6,000,000                                          2019 $3,300,000
• 2020 $6,200,000                                          2020 $3,400,000
• The final numbers for Sales and Profits have not been finalized for 2021 and are not available at this time

CPFacWorkers Labor Union -

Now, put yourself in the role of the negotiating team representing the CPFacWorkers labor union at Cooper Plastics in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc.  There are a total of 95 factory workers in the bargaining unit of your union.

It is time to negotiate with the Cooper Plastics management team.

Your negotiations document needs to include the following bulleted list of items - you must include these categories in both offers:

• Length of contract in years
• Base pay
• Annual increases
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs
• Source of money for increased costs

Data from Current Contract, which expired in December 2021:

• Contract began in March 2017
• CPFacWorkers conceded to 20 layoffs when negotiating the 2017-2021 contract
• Remaining workers agreed to a 10% pay cut to help the company recover from the recent US recession
• Sick days were reduced from 10 to 6
• Holidays reduced from 10 to 6
• Shift differential pay:
  • 3pm-11pm   Currently set at $.25/hour
  • 11pm-7am   Currently set at $.35/hour
• Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

• 7am-3pm shift - 50 workers - $1,040,000
• 3pm-11pm shift - 30 workers - $624,000
• 11pm-7am shift - 15 workers - $312,000
• Managers - 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime - time and a half; 2019-2020 no OT has been worked

Sales:                                                              Profits:

• 2017 $4,000,000                                          2017 $1,040,000
• 2018 $5,250,000                                          2018 $2,392,000
• 2019 $6,000,000                                          2019 $3,300,000
• 2020 $6,200,000                                          2020 $3,400,000
• The final numbers for Sales and Profits have not been finalized for 2021 and are not available at this time

Other Considerations:

• The United States appears to be in a manufacturing funk as productivity and labor availability and supply availability have decreased as the country works through the Covid pandemic. Many organizations have found their supply inventory limited as manufacturers who shut down during the initiatl months of Covid are still working to restaff and produce the quantities of their products and components in demand. The realities of the Coronavirus pandemic have brought job losses, revenus losses, and stock market fluctuations.
• Cooper had new products scheduled to be coming out in mid-2021 planned to help stimulate growth in the firm's revenues and profitability but now the reality is the viability of those products is suffering due to inventories required to produce the new products.
• Management at Cooper does all hiring, scheduling, firing, and promotions.
• It has become increasingly difficult to get employees to work the 3-11pm and 11pm-7am shifts.  Absenteeism is high on these shifts and productivity on both of these shifts are lower than on the 7am-3pm shift.

Remember to include all three Parts of this part of the assignment