What arguments can you make in favor of such proposal

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Reference no: EM132294854

You are the human resources manager for FoodMart, a regional grocery retailer. The FoodMart employees are members of the Retail Clerks Union, and FoodMart and the union are engaged in negotiations to renew their collective agreement. The retail gro- cery business is extremely competitive, and a number of low-cost, low-overhead chains compete directly with FoodMart. The employees of the low-cost grocery chains are not unionized, and their wages are barely above the minimum wage. FoodMart em- ployees’ wages average around $9.25 per hour, and FoodMart also offers generous benefit packages, including medical insurance and pensions. As a result, FoodMart’s labor costs are much higher than the low-cost chains, and FoodMart has seen its profit margins decline. FoodMart had considered proposing wage and benefit reductions to the union; the union had publicly vowed not to agree to any wage concessions.

To avoid a strike, the CEO suggests that you offer the union a guarantee not to reduce wages and benefits if the union agrees to begin a campaign of consumer and publicity picketing and hand-billing in front of the low-cost grocery stores—to inform the public how the low-cost chains treat their employees. What arguments can you make in favor of such a proposal? What arguments can you make against it? Should you make such an offer to the union? Prepare a memo to the CEO outlining the posi- tive and negative aspects of the proposal, and recommending a course of action, with appropriate supporting reasons.

Cite a provision of the NLRA and/or a case in support of your argument.

Reference no: EM132294854

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