Case Study 3 Read the following hypothetical excerpt and based on your understanding of chapter 15 (Collective Bargaining and Labor Relations) of the textbook answer the questions that follows. [ 20 marks) The Oz Resort Scenario Oz Resort is part of a chain of resorts owned and managed by Holiday Fiji Ltd. Oz Resort, located in Nadi, the western tourist town of Fiji. Oz resort has an annual turnover of F$45.2 million. It is a large resort by Fijian standards, boasting 500 rooms and recreational facilities including an 18-hole golf course, children's activity programs, water sports (for example, scuba diving, parasailing, water-skiing, jet-skiing), horse-riding, tennis, bush-walking, several restaurants and a night-club. Oz Resort won an industry award five years ago for the quality of service. On the wall of the resort lobby is a large plaque with the inscription People are the Key to Success'. Oz Resort has 260 employees, of whom 40 are permanent, and 220 are temporary. Most of the temporary staff is university students recruited through personal recommendations. No formal skills or qualifications are required, as staff receive firm-specific training to enable them to develop career paths. Some employees' accommodation is provided in dormitory huts next to the amenities block. Employees are provided with uniforms (hot pink bicycle shorts and t-shirt). 3 In July 2000, there was a change of management at Oz Resort due to the previous manager being promoted to be HR Director of Holiday Fiji Ltd. The new Resort Manager, Ratu Nalaba Burelevu, was recruited from a competitor resort where he had created record profitability. By October 2001, Ratu Nalaba introduced some changes that had worked well in his last position. The changes were introduced without consulting staff. To cut costs, staff are now required to pay for their uniforms and to pay for the use of any of the sporting facilities offered by the Resort. At the same time, working hours per month have been increased with no accompanying pay increase. Employees are also required to work harder due to a new policy of not replacing staff who leave the resort. There has been some resistance from staff to these changes and staff turnover has increased to 30 percent per year. In the July 2002 meeting of the department managers, several complaints from employees were reported to Ratu Nalaba. First, the training promised at selection was not provided, so opportunities for promotion were non-existent. Second, employees were disgruntled as they were not paid for working overtime, despite understaffing, especially on weekends. Third, staff complained that, as the huts were designed for temporary accommodation, they were too hot and uncomfortable. Fourth, workers were refusing to wear the uniforms as they now were required to pay for them. Since Ratu Nalaba was not prepared to listen, the employees are contemplating on taking an industrial action against the resort. However, However, Ratu Nalaba insisted that he had a responsibility to cut costs and to make the resort more profitable. Employees would slowly get used to the changes. In the most recent customer survey conducted in September 2002, customer satisfaction appears to be declining. The client's study indicated some problem areas at Oz Resort. For example, 52 percent of customers rated service as poor', while 40 percent said they would never return to Oz Resort'. Specific complaints included: 'Staff were too interested in having a good time themselves to look after us'; 'Staff did not know what they were doing. They seemed inexperienced'; and 'Every staff member I saw appeared to have a bad attitude'. Recent figures show that profitability has dropped by 20 percent. Ratu Nalaba knows he has to act now or a never. Questions 1. Employees have suggested forming a union at the resort to better address their grievances which was later rejected by the management. Discuss the pros and cons of forming trade unions in organisations both from employer and employees' perspectives. [5 marks) II. Explain at least three types of industrial actions employees may resort to in making their grievances known to the management? Discuss the consequences of these actions to various stakeholders in the hotel industry? [ 5 marks) Identify external dispute resolution mechanisms that could be employed to resolve industrial actions if it did eventuate. [ 5 marks] 4 IV. Write a paragraph explaining the difference between craft and industrial unions with examples to employees of the OZ resort. [ 5 marks]