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Collective Bargaining Strategy Template

Company Bargaining Strategy with Hourly Employees of xxxxx
Summary of Details
The 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 BARGAINING

A.   Location and Timing



B.   Composition of Bargaining Teams

C.   Background of Union Relationship

C.   Past Contracts
Collective Bargaining Strategy Template


E.   Composition of the Unit


There are currently 7 drivers in West Chicago.


West Chicago as of 10/01


Drivers


Name
DOH
DOB
Wage
Collective Bargaining Strategy Template


F.   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.
Collective Bargaining Strategy Template

BARGAINING OBJECTIVES
A.   Wages & Pension Plan
B.   Health and Welfare Benefits
Overall 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.
Collective Bargaining Strategy Template

C.    Retirement Plan

D. Language

     We will submit proposals around the following language items: (insert proposals)

E. Duration
It is the company’s objective to negotiate a three-year agreement at this point. .

F.   No Work Stoppage

It is the company’s objective to negotiate a new agreement without incurring a work stoppage.
Collective Bargaining Strategy Template

IMPLEMENTATION STRATEGIES
A. Pre-positioning


The preliminary discussions with the Union have not gone well. We will take an
   aggressive stance if necessary,
 B. Wages
Again, 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)
Collective Bargaining Strategy Template

IMPLEMENTATION STRATEGY


C. Health and Welfare Plan


As 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. Language
In 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.
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:

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Collective Bargaining Strategy Template

  • 1. Collective Bargaining Strategy Template Company Bargaining Strategy with Hourly Employees of xxxxx Summary of Details The 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 BARGAINING A. Location and Timing B. Composition of Bargaining Teams C. Background of Union Relationship C. Past Contracts
  • 2. Collective Bargaining Strategy Template E. Composition of the Unit There are currently 7 drivers in West Chicago. West Chicago as of 10/01 Drivers Name DOH DOB Wage
  • 3. Collective Bargaining Strategy Template F. 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. Collective Bargaining Strategy Template BARGAINING OBJECTIVES A. Wages & Pension Plan B. Health and Welfare Benefits Overall 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. Collective Bargaining Strategy Template C. Retirement Plan D. Language We will submit proposals around the following language items: (insert proposals) E. Duration It is the company’s objective to negotiate a three-year agreement at this point. . F. No Work Stoppage It is the company’s objective to negotiate a new agreement without incurring a work stoppage.
  • 6. Collective Bargaining Strategy Template IMPLEMENTATION STRATEGIES A. Pre-positioning The preliminary discussions with the Union have not gone well. We will take an aggressive stance if necessary, B. Wages Again, 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. Collective Bargaining Strategy Template IMPLEMENTATION STRATEGY C. Health and Welfare Plan As 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. Language In 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. 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: