Collective bargaining strategy template


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Collective bargaining strategy template

  1. 1. Collective Bargaining Strategy TemplateCompany Bargaining Strategy with Hourly Employees of xxxxxSummary of DetailsThe current labor agreement between ---- and the International Brotherhood of Teamsters, Local # , representing seven (7) regular drivers at that location, expires at midnight on Monday, January 15th, 2002.MECHANICS OF BARGAININGA. Location and TimingB. Composition of Bargaining TeamsC. Background of Union RelationshipC. Past Contracts
  2. 2. Collective Bargaining Strategy TemplateE. Composition of the UnitThere are currently 7 drivers in West Chicago.West Chicago as of 10/01DriversNameDOHDOBWage
  3. 3. Collective Bargaining Strategy TemplateF. Company’s Economic Position______, serving primarily the greater XXXX area. In 2000, total sales at the branch were, and generated an operating income of , or XX% margin. For 2001, total sales at the branch were , generating an operating income of ---- or XXX% margin. West Chicago has seen significant market growth in the last year.G. Perceived Tenor of Bargaining Unit Rumors from the shop floor express the belief that the Union will seek to replace a good portion of the current language with language from an agreement more closely akin to freight line OTR trucking companies or the National Master Freight Agreement, which is the type of group that Local 705 typically represents. The rejected wage increase, the Central States Pension fund, Profit-sharing, sub-contracting of work, the hiring of casual help, the drug testing policy and the requirement to wear uniforms are also probable issues of concern to the Union.
  4. 4. Collective Bargaining Strategy TemplateBARGAINING OBJECTIVESA. Wages & Pension PlanB. Health and Welfare BenefitsOverall Strategy:• “Me Too” clauses where possible for asterisked benefits below. When “Me Too” clauses are implemented, clarify in the contract.• Seek to transition employees into the ___ plan with standard company contributions• Minimize health care cost increases for the Union plan as much as possible, if retained.• Seek to obtain a contribution from the drivers, and allow union plan to be introduced,?We are likely to face great difficulty with the union in achieving any sort of contribution for the health care plan. If we can reach a relatively affordable economic settlement, hold the line on the 401-k, and avoid the profit sharing and Central States pension issues, I would recommend that we be willing to compromise on this issue. Our plan at this point is to come as close as possible. Current rates on this benefit plan are $164.00 weekly, fully paid by the company.
  5. 5. Collective Bargaining Strategy TemplateC. Retirement PlanD. Language We will submit proposals around the following language items: (insert proposals)E. DurationIt is the company’s objective to negotiate a three-year agreement at this point. .F. No Work StoppageIt is the company’s objective to negotiate a new agreement without incurring a work stoppage.
  6. 6. Collective Bargaining Strategy TemplateIMPLEMENTATION STRATEGIESA. Pre-positioningThe preliminary discussions with the Union have not gone well. We will take an aggressive stance if necessary, B. WagesAgain, we believe expectations on money will be quite high. This is due to the company’s previous discussions with the Union regarding a wage adjustment, and also by the relatively high market demand for drivers that still exists, and by the lower than usual wage increases that were granted at the last renewal. (2% annually over three years)
  7. 7. Collective Bargaining Strategy TemplateIMPLEMENTATION STRATEGYC. Health and Welfare PlanAs mentioned earlier, we will be dealing with an expectation that the union will be attempting to pass along the full cost of health care plan increases to the company. Our objective will be to minimize this, either by achieving a contribution as i------, or by lowering the scope of the plan design coverage to reduce the overall costs of the benefits. The goal of achieving any employee contributions here will be difficult.D. LanguageIn summary, it shall be the team’s primary objective to achieve a renewal agreement that addresses the needs of the business within reasonable boundaries, given all the parameters detailed in this report. If this should not prove possible, then we will reevaluate our position mid-negotiation and either seriously consider some possible alternative . Granting any component of the ----- success-sharing programs, and participation in the Central States pension fund are both strike issues for the Company.
  8. 8. Collective Bargaining Analysis Wage and benefit support can be obtained from the corporate compensation and benefits design groups. It would be useful to schedule pre-planning conferences with both groups prior to the final development of your proposals. It would also be my recommendation to get as much input from them as possible regarding integration of ----- into enterprise pay and benefit plans for union employees. For legal and practical reasons, it is highly recommended that management prepare and rehearse its arguments and justification for refusing to grant any type of gain-sharing or profit sharing programs. An outline of these arguments follows: