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. . Appendix C Contract Negotiation Simulation Clean Right Partners Inc. company and ASU does not contain any language regard- You will be provided with further information and instructhat may affect bargaining unit members ing contracting out of mergers and acquisition scenarios tions regarding the analysis and a possible renewal of the collective agreement provided below between Clean Right Partner Incorporated and the Allied Service Union Issues Arising Under the Collective Canada. The outlined collective agreement has an expiry Agreement date listed in this simulation which may be altered by your instructor The union's business agent union local president and tur gaining committee began a concerted intra-organizational Background bargaining process with their parent union's business agent and legal counsel union local leaders and the general Clean Right Partners is an independent private-sector op membership once notice to bargain had been served on the eration located in a major urban centre in your province company. The following priorities for the upcoming round The company was established in 1997 by brothers Michael of bargaining included and Zack Cummings. The brothers had previously owneda chain of dry cleaning stones which they sold to open Clean FOR THE UNION Right Partners. Their initial clients were two area hospitals Union security-delete Article 1.02 (e) and demand and one nursing home. Due to the entrepreneurial spirit of hiring more part-time employees to cover vacation the two brothers, the business grew quickly and over the leaves next two decades has become a major player in health care industrial uniform and linen cleaning services in the region Vacation entitlement increase entitlements- Clean Right Partners was unionized on two occasions: first. weeks (4) after one year but less than three (3) years in 2007, for production and maintenance personnel (a total three weeks (6%) after three (3) years' service but less than of 110 full-time and part-time staff represented by SHIU) seven (7) years: Four-weeks (8%) after seven (7) years but then in 2010, by Allied Services Union Canada (ASU) for less than eleven (11 years), and five) weeks (10%) after even (11) years (Article 11) drivers and loading dock employees a total of 19 full-time and part-time). The company has a small human resources Management rights-eliminate language "who has department with a director, health and safety coordinator acquired seniority from current Article 3.01. benefits coordinator, HR assistant and HR derk-receptionist Compensation-increase annual shoe allowance to The HR director handles all union-related matters with the $175 per year (Article 11.03). support from time to time of outside legal counsel. There Compensation--cost-of-living adjustment to be nego have been two prior collective agreements between ASU tiated in new contract (New) and the company. While the first collective agreement was Hours of work-language guaranteeing minimum of achieved with the help of mediation after a rather acrimo- hours reporting pay if shift is cancelled. (New). nious start, the second round of bargaining proceeded to a Seniority-reduce probationary period (after which successful conclusion without the threats of either a strike a seniority is accumulated) from one hundred and eighty or a lockout While Clean Right Partners is a major player in the (180) calendar days to sixty (60) calendar days, and will have no seniority rights during that period health care and industrial uniform and linen markets in (Article 14.02) their region, there has been a strong rumour over the last six months of a possible corporate acquisition by a Leaves of absence-add any leave of absence language renowned provincial cleaning and linen service company into the agreement in keeping with any LOA Intro The Cummings brothers are approaching retirement age yet duced by government through employment standa or other legislation during the term of the expi maintain they are not entertaining any overtures from this or any other potential buyer. Needless to say, union mem- agreement. Negotiate up to ten paid days for any approved LOA now not paid by employer (New) bers throughout the company are somewhat andous with this situation. The current collective agreement between the Job posting-eliminate second paragraph of Article 17.01. 290 . . . . Contract Negotiation Simulation 291 Employee benefits-no action taken on promised Compensation--change safety shoe allowance period employer commitment on long-term disability protect - from 12 to 18 months (Article 11.03). see last sentence in Article 19.01. . Sick leave-current accumulation formula but stop Sick leave-increase monthly sick leave credit accu- any "carry-over" or "pay-out" of unused credits from mulation to two days (16 hours) per month and make one year to the next (Article 20). adjustments based on this change to Article 20.01 and 20.02 Another Important Matter FOR THE COMPANY While Clean Right Partners is a major player in the Grievance procedure-introduce language before the health care and industrial uniform and linen markets in reference to Step 1 that articulates the necessity of first their region, there has been a strong rumour over the having a "complaint stage" to allow the affected last six months of a possible corporate acquisition by a employee(s) to discuss the issue with the supervisor in renowned provincial cleaning and linen service corpora- an attempt to resolve the matter. Also suggest time lim- tion. The Cummings brothers are approaching retire- its associated with this process (Article 4-New) ment age yet maintain they are not entertaining any Discipline and discharge-strike out "verbal" from overtures from this or any other potential buyer. Need- first line in Article 5.02. less to say, union members throughout the company are somewhat anxious with this situation. The current col- Employee record-replace time limit for clearing lective agreement between the company and ASU does record from 10 months to 24 months (Article 6.01). not contain any language regarding contracting out or Compensation-change "will" to "may" in Article mergers and acquisition scenarios that may affect bar- 11.02 regarding company payment of parking tickets. gaining unit members. Article 3 Management Rights 3.01 3.02 The Union acknowledges that it is the right of the Company to hire, promote, demote, transfer, classify and suspend employees, and also the right of the Company to discipline or discharge any employee for cause, provided that a claim by an employee, who has acquired seniority, that he has been discharged or disci- plined without reasonable cause shall be the subject of a grievance and dealt with as hereinafter provided. The Union further recognizes the right of the Company to operate and manage its business in all respects in accordance with its commitments and responsi- bilities. The location of the plants, the products to be manufactured or pro- cessed, the schedules of production, the methods, processes and means of manufacturing or processing used, the right to decide on the number of employ- ees needed by the Company at any time, the right to use improved methods, machinery and equipment, and jurisdiction over all operations, building, machin- ery, tools and employees at the Company's plants are solely and exclusively the responsibility of the Company. It is understood and agreed that breach of any of the plant rules or any of the provisions of this Agreement shall be deemed to be sufficient cause for discipline or dismissal of an employee and may be the subject of a grievance. The Company agrees that these rights and functions will be exercised in a manner consistent with the provisions of this Collective Agreement. 3.03 Article 3 Management Rights This article provides that only employees who have acquired seniority may make a claim of being discharged without cause. The Union will demand that the phrase "who has acquired seniority" be removed