Bargaining
Please reference the readings and readings and other sources
Part 1
During the 2009 financial crisis, Chrysler and General Motor’s received bailout money from the US government. As part of the bailout, Chrysler and GM workers agreed to a strike ban and arbitration. Ford workers however, went against union leadership and rejected these stipulations. In doing so, Ford workers have kept an important weapon: threat of a strike. If Chrysler and GM cannot come to an agreement with their workers, arbitration will be used to form a binding agreement. Ford workers have no such obligation to go to arbitration with Ford and can go on strike. While GM and Chrysler benefit from not having to face the possibility of a strike and arbitration, Ford must carefully navigate contract negotiations, which are sure to be tense.
1. Explain pattern bargaining and how it relates to this situation (file attached). Do you feel it is beneficial to labor unions?2. Ford CEO was rewarded with millions in stock rewards and a hefty compensation increase. How does Ford justify its argument that it needs to continue to cut labor costs during negotiations?3. What are the benefits of mandatory arbitration? Do you think it benefits the UAW or Ford?4. Do you believe Ford workers made the right decision in going against union leadership and rejecting the strike ban and mandatory arbitration? Why?
Part 2 – Based on Chapter Readings
Choose one of the scenarios from HR Strategy: Responding to a Union Organizaing Drive at the end of Chapter 6 and assum the union wins recognition (file attached). As an HR manager, how would you prepare for the negotiations? What type of information would be important to you. What type of bargaining priorities and strategies would you develop? How would you answers change if you were a union representative?.
