Question

You are a manager at Frigid Refrigerator Enterprise Systems (FRES). Employees of FRES earn 15% above the average of other workers in the refrigeration industry. Management feels FRES is losing its ability to compete because its labor costs are too high. The obvious solution: ask labor to reduce labor costs either by reducing salaries, reducing the number of workers, or a combination of both. Now it’s time to reach an employee–management agreement. Create a list of management and union demands. 3 or 4 items for each group. MANAGEMENT DEMANDS COMPROMISED SETTLEMENT UNION DEMANDS As a member of management, how would you persuade union negotiators to vote on a compromised settlement?

Answer 1

DEMANDS OF MANAGEMENT:

• REDUCE LABOR COSTS
• MORE PRODUCTIVITY
• INCREASE NUMBER OF WORKING HOURS
• LESSEN THE NUMBER OF EMPLOYEES
• RECRUIT NEW EMPLOYEES WITH LESS SALARIES.

DEMANDS OF LABOR UNION:

• JOB SAFETY
• SECURE ENVIRONMENT
• FIXED/ MORE SALARIES
• LESS/ SUITABLE WORKING HOURS.

THEY CAN BE PERSUADED BY MAKING THEM AWARE OF THE CONDITIONS OF THE COMPANY AND MAKING THEM REALISE THAT THEY ARE THE MEMBERS OF THE COMPANY WHICH IS A FAMILY TO THEM. THEY CAN BE MADE AWARE OF THE LEGAL THINGS SO THAT THEY CAN FULLY UNDERSTAND THE PERSPECTIVE OF MANAGEMENT. THEY CAN BE MOTIVATED FOR THE EFFECTIVENESS OF THE UNION AND CAN BE ASSURED THAT WHATEVER THE MANAGEMENT HAS DECIDED IS THE BEST OPTION.