KES acquired a tender from Eskom. The project is a 3-year project. Although it is not...

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KES acquired a tender from Eskom. The project is a 3-year project. Although it is not a forced issue, the client recommends that KES retains the team that working for the previous service provider as they are experienced in the scope of work and have specific plant knowledge. KES offered the employees contracts with rates and salaries less than they were getting from the previous employer. So the employees through their union submitted the following demands from KES: Item RATES Provident Fund Bonus Contract Condition Between KES and Eskom Basic Salary: Artisans - R 165/h Semi-Skilled - R 90/h Safety Officer R100/h Assistant Fitter - R 55/h No allocation for provident fund Conditions from KES previous employer to employees Basic Salary: Artisans R 154/h Semi-Skilled - R 74/h Safety Officer R100/h Assistant Fitter - R 37/h NO Provident fund No allocation for 100% 13 cheque bonus proposed Employee Demands to conditions employees Basic Salary: • Artisans - R 120/h Semi-Skilled - R 55/h Safety Officer R45/h Assistant Fitter - R 35/h NO Provident fund NO Bonus Basic Salary: Artisans - R 160/h • Semi-Skilled - R 85/h Safety Officer R120/h Assistant Fitter - R 60/h Provident Fund of the member's choice Employers contribution and Employee Contribution 100% 13 cheque The union has threatened that they will lead their employees to go on strike if all their demands are not met. What will be your response (or revised offer) be as the operations manager in response to the union and employees' demands KES acquired a tender from Eskom. The project is a 3-year project. Although it is not a forced issue, the client recommends that KES retains the team that working for the previous service provider as they are experienced in the scope of work and have specific plant knowledge. KES offered the employees contracts with rates and salaries less than they were getting from the previous employer. So the employees through their union submitted the following demands from KES: Item RATES Provident Fund Bonus Contract Condition Between KES and Eskom Basic Salary: Artisans - R 165/h Semi-Skilled - R 90/h Safety Officer R100/h Assistant Fitter - R 55/h No allocation for provident fund Conditions from KES previous employer to employees Basic Salary: Artisans R 154/h Semi-Skilled - R 74/h Safety Officer R100/h Assistant Fitter - R 37/h NO Provident fund No allocation for 100% 13 cheque bonus proposed Employee Demands to conditions employees Basic Salary: • Artisans - R 120/h Semi-Skilled - R 55/h Safety Officer R45/h Assistant Fitter - R 35/h NO Provident fund NO Bonus Basic Salary: Artisans - R 160/h • Semi-Skilled - R 85/h Safety Officer R120/h Assistant Fitter - R 60/h Provident Fund of the member's choice Employers contribution and Employee Contribution 100% 13 cheque The union has threatened that they will lead their employees to go on strike if all their demands are not met. What will be your response (or revised offer) be as the operations manager in response to the union and employees' demands

Answer rating: 100% (QA)

As the operations manager of KES I understand the importance of maintaining good relationships with ... View the full answer