For this assignment, you need to analyze the information below from BOTH the management AND the employee perspective. This information pertains to a labor union in a simulated firm in Glen Ellyn. The first part of your information relates to Management the second part relates to the Labor Union employees. I have provided you with information from the last union negotiations at the plant in 2015. It is now time to begin preparing for negotiations for 2019 and beyond.

Your assignment needs to include the following information:

Considerations for Management as they begin to prepare for negotiations

Beginning offer to the plant workers

Considerations for Labor Union employees as they begin to prepare for negotiations

Beginning offer to management

Analysis of what you have gained from this assignment and insights you now have into labor union negotiations

Format this assignment using the section headings such as you see below with Management and the CPFac Workers Labor Union. Be very clear about the information required above.

Management

Put yourself in the role of President and Owner of Cooper Plastics Corp. located in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc.

There is a union, CPFacWorkers, representing the 95 factory workers at Cooper Plastics.

It is time for the management team at Cooper to once again negotiate with the CPFacWorkers.

Your negotiations document needs to include the following for BOTH Management and the Union:

Length of the next contract in years - Labor contracts are frequently 2-4 years in length

Base pay

Annual pay increases for each year of your labor contract

Shift pay differential

Overtime pay

Number of workers per shift

Benefits percentage of salaries

Annual paid sick days

Annual paid holidays

Total increased costs - calculate how much your increases are going to cost you

Source of money for increased costs - where is the money coming from for these increased costs

Data from Current Contract, which expired in March 2019:

Contract began in March 2015

CPFacWorkers conceded to 20 layoffs when negotiating the 2015-2019 contract

Remaining workers agreed to a 10% pay cut to help the company continue to recover from the recent US recession

Sick days were reduced from 10 to 6

Holidays reduced from 10 to 6

Shift differential pay (The dates show you the increases/decreases throughout the contract)

3pm-11pm $0.50 3/15-3/17 $.25 3/17-3/19

11pm-7am $1.00 3/15-3/17 $.35 3/17-3/19

Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

7am-3pm shift 50 workers - $1,040,000

3pm-11pm shift 30 workers - $624,000

11pm-7am shift 15 workers - $312,000

Managers 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K

Overtime time and a half; 2017-2019 no OT has been worked

Sales: Profits:

2016 $4,000,000 2016 $1,040,000

2017 $5,250,000 2016 $2,392,000

2018 $6,000,000 2018 $3,300,000

CPFacWorkers Labor Union

Now, put yourself in the role of the negotiating team representing the CPFacWorkers labor union at Cooper Plastics in Glen Ellyn, Illinois. Cooper manufactures plastic cups, plates, silverware, bowls, etc. There are a total of 95 factory workers in the bargaining unit of your union.

It is time to negotiate with the Cooper Plastics management team.

Your negotiations document needs to include the following:

Length of contract in years

Base pay

Annual increases

Shift pay differential

Overtime pay

Number of workers per shift

Benefits percentage of salaries

Annual paid sick days

Annual paid holidays

Total increased costs

Source of money for increased costs

Data from Current Contract, which expired in March 2019:

Contract began in March 2015

CPFacWorkers conceded to 20 layoffs when negotiating the 2015-2019 contract

Remaining workers agreed to a 10% pay cut to help the company recover from the recent US recession

Sick days were reduced from 10 to 6

Holidays reduced from 10 to 6

Shift differential pay:

3pm-11pm $0.50 3/15-3/17 $.25 3/17-3/19

11pm-7am $1.00 3/15-3/17 $.35 3/17-3/19

Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay $10/hour

7am-3pm shift 50 workers - $1,040,000

3pm-11pm shift 30 workers - $624,000

11pm-7am shift 15 workers - $312,000

Managers 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K

Overtime time and a half; 2017-2019 no OT has been worked

Sales: Profits:

2016 $4,000,000 2016 $1,040,000

2017 $5,250,000 2017 $2,392,000

2018 $6,000,000 2018 $3,300,000

Other Considerations:

The United States appears to have come out of its 2008-2010 recession, though there are those who are beginning to say it will return in 2019 or 2020 as recent stock market fluctuations may confirm.

Cooper has new products scheduled to be coming out in mid-2019 which may help stimulate growth in the firms revenues and profitability.

Management at Cooper does all hiring, scheduling, firing, and promotions.

It has become increasingly difficult to get employees to work the 3-11pm and 11pm-7am shifts. Absenteeism is high on these shifts and productivity on both of these shifts are lower than on the 7am-3pm shift.