Reference no: EM132090584

RTD MANAGEMENT

The management negotiation team finds four gut-wrenchers on the negotiation table:

The Colorado Department of Transportation has mandated that additional bus routes be privatized within the next three years. Privately, the Chairwoman of the Senate Transportation Committee notes that a 15% turn toward privatization would make her very happy.Most everybody likes a happy politician.

The federal government has privately announced that its contribution to the RTD annual budget will be reduced 10% annually for the next three years unless RTD takes concrete steps to expand its light rail system.If RTD demonstrates that commitment, the federal government will maintain its 20% annual contribution and increase it by 5% during each year that RTD actively pursues construction of a more expansive rail system.

The Colorado General Assembly has been inundated by angry citizens who are demanding fare reductions for students, the disabled, and Medicare recipients.Demonstrations are becoming a more common occurrence.The media has taken up the story, and RTD is regularly crucified for its lack of compassion.In response, some drivers have taken the personal initiative to give free rides to these “less fortunate” riders.

Non-union employees at RTD haven’t forgotten that, while Union members received a 1.5% raise three years ago, the workers not represented by the Union were told to tighten their belts.Although the non-union workers can’t strike, a work slow-down may be warranted this year.That would certainly slow RTD’s progress the next three years to a snail’s pace.

Analyze this scenario and your strategy as to how you will advocate your position during the negotiation process. Specifically, discuss the history of the parties' relationship and the potential issues presented this year, when the next contract is to be signed. What are your broad objectives for the contract?