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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 instruc that may affect bargaining unit members ing contracting out of mengers and acquisition scenarios tions regarding the analysis and a possible renewal of the collective agreement provided below between Clean Canada. The outlined collective agreement has an expiry Agreement Right Partners Incorporated and the Allied Service Union Issues Arising Under the Collective date listed in this simulation which may be altered by your instructor The union's business agent union local president and bar- gaining committee began a concerted intra-organizational Background bargaining process with their parentmon'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 sound The company was established in 1997 by brothers Michael of bargaining induded and Zack Cummings. The brothers had previously owned a chain of dry cleaning stores which they sold to open Clean FOR THE UNION Right Partners. Their initial clients were two area hospitals and one nursing home Due to the entrepreneurial spirit of Union security-delete Article 102(e) and demand the two brothers, the business grew quickly and over the hiring more part-time employees to cover vacation 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, wees (%) 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 SEIU) seven years Fours (85) after seven years but less than even (Il years and five (5) wees (10%) after then in 2010, by Allied Services Union Canada (ASU) for eleven (II) 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 5175 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 bated in new contract (New) and the company. While the first collective agreement was Hours of work-hnguage 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 seniority is accumulated) from one hundred and eighty or a lockout (180) calendar days to sixty (60) calendar days and While Clean Right Partners is a major player in the will have no seniority rights during that period health care and industrial uniform and linen markets in (Article 14.023 their region, there has been a strong rumour over the Leaves of absence add any leave of absence language last six months of a possible corporate acquisition by a 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 expir 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 . . . . . . 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 procedureintroduce 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. DO . Article 11 Compensation 11.01 The following hourly rates shall be effective during the term of this Agreement: Classification Feb 1 2016 Feb 1 2017 Feb 1 2018 Route Driver 23.82 24.43 25.45 Mat Driver 21.29 21.84 22.75 Dock Attendant 16.11 16,52 17.21 Porter 14.98 16.00 15.36 11.02 The Company will pay for parking tickets received by drivers in the course of their duties for unavoidable parking infractions. It is agreed that the Company shall be the judge of whether or not the infraction was unavoidable. In the event the Supervisor declines payment of a parking ticket he will give reasons in writing if requested to do so by the employee. 11.03 Safety Shoes The Company agrees to contribute the sum of one hundred and thirty-five dollars ($135.00) for one pair of safety shoes per calendar year, upon production of a receipt of purchase, to employees who are required by the Company or by the Company's customer to wear CSA approved safety shoes or boots. 11.04 The Company will endeavour to pay any error in pay resulting in underpayment of one hundred dollars ($100.00) or more within twenty-four (24) hours of determina- tion of the error and any error in pay of less than one hundred dollars ($100.00) on the first paycheque following the determination of the error, if practicable, and, if not, then on the following paycheque. The Union agrees that any error in pay resulting in overpayment will be deducted from the first paycheque following determination of the error, if practi- cable, and, if not, then in the following paycheque. Article 11 Compensation The bargaining team is instructed to pursue a one- or two-year agreement. A three-year agreement is acceptable only if there is adequate protection against inflation. For the first year of the agreement the local hopes to achieve a 3 percent wage increase, and under no circumstances will it accept less than a 1 percent increase. In the second year of the contract the local hopes to achieve a 3 percent increase and under no circumstances will accept less than a 1 percent increase. A strike vote has not yet been held; however, it is anticipated that the bargaining unit will vote in favour of a strike. The current agreement also provides for $130 purchase for safety shoes. The unior should seek to increase this amount to $150