Reference no: EM132879397

Clean Right Partners is an independent, private-sector operation located in a major urban centre in your province. The company was established in 1997 by brothers Michael and Zack Cummings. The brothers had previously owned a chain of dry cleaning stores which they sold to open Clean Right Partners. Their initial clients were two area hospitals and one nursing home. Due to the entrepreneurial spirit of the two brothers, the business grew quickly and over the next two decades has become a major player in health care, industrial uniform and linen cleaning services in the region. Clean Right Partners was unionized on two occasions: first, in 2007, for production and maintenance personnel (a total of 110 full-time and part-time staff represented by SEIU); then in 2010, by Allied Services Union Canada (ASU) for drivers and loading dock employees(a total of 19 full-time and part-time).The company has a small human resources department with a director, health and safety coordinator, benefits coordinator, HR assistant and HR clerk-receptionist. The HR director handles all union-related matters with the support from time-to-time of outside legal counsel. There have been two prior collective agreements between ASU and the company. While the first collective agreement was achieved with the help of mediation after a rather acrimonious start, the second round of bargaining proceeded to a successful conclusion without the threats of either a strike or a lockout.

While Clean Right Partners is a major player in the health care and industrial uniform and linen markets in their region, there has been a strong rumour over the last six months of a possible corporate acquisition by a renowned provincial cleaning and linen service company. The Cummings brothers are approaching retirement age yet maintain they are not entertaining any overtures from this or any other potential buyer. Needless to say, union members throughout the company are somewhat anxious with this situation. The current collective agreement between the company and ASU does not contain any language regarding contracting out or mergers and acquisition scenarios that may affect bargaining unit members.

-What would be the tactic for contracting out? Interest based bargaining?

-What is the opening position?

-What is the initial position and explanation?