PLEASE DO THE OPENING PROPOSSL AND WRITTEN PROPOSAL

Opening Statement on Proposals:

What will you say to introduce your proposal (opening position) to the other side? How are you going to frame your proposal? What rational will you use? What are you trying to signal to the other side?

In this section, write out a concise introduction that you could use to introduce your proposal (opening position) to the other side at the bargaining table.

Written Proposal:

You must make a written proposal for your opening position. This is the document that will be included in your proposal package that is exchanged with the other side at the negotiation table.

For an existing Article, strikethrough what you are proposing deleting, and bold any new language.

For a new article (Technological Change), this must be a full Article that could be added to the collective agreement.

REFRENCES

Potential Changes to Article and Impact on Parties

Potential Change to Language	Benefit to Your Team (indicate if you are union or management)	Impact or Concerns of Other Team	Key research that will be used to support proposed changes
Introduction of Wage structure across job levels within CE	Management will propose a wage increment to impact job levels 1 to 6 (Group 1) which are considered low income earners thereby reducing the impact of wage increment in the income statement of CE for 2020.	Job levels 7- 12(Group 2) which are not impacted would feel there is a systematic discriminatio n in place which is based on their job title/level. They would not see it as fair.
Introducti on of C.O.L.A as a form of wage increment to cushion the effect of inflation on wages of employee s for Group 1 job levels for year 1 only	Management will propose a wage increment based on the rate of inflation in the economy (CPI). CE will not pay an arbitrary general wage increase (GWI) to staff without generating enough revenue to cover it due to the present state of the economy. We are proposing C.O.L.A. of 0.3% plus 1% for all employees in Group 1 only for Year 1	Management will propose a wage increment based on the rate of inflation in the economy (CPI). CE will not pay an arbitrary general wage increase (GWI) to staff without generating enough revenue to cover it due to the present state of the economy. We are proposing C.O.L.A. of 0.3% plus 1% for all employees in Group 1 only for Year 1
Introduction of a guarantee 1% GWI in year 2 for all job levels	The impact of this increment on financials for year 2 is a 1% increase in labour cost. This can be accommodated based on a projection that makes the amount only 5.07% of net income projected and 31% of projected increase in net income in year 2.	Unions are expected to demand of the usual 3% wage increase per year. Their argument will be if no increment can be made to GWI, why not leave it as same- 3%.
Introduction of an additional 2% GWI in year two which is based on CE business performance targets for year 2. This payment will only be made if CE's increase in net income in year 2 is >= 32%. If this performance is not attained, this GWI will not be given to employee s	The performancebased wage increase links employee and employer interest. If the company does well, the employees will do well. This enables us to protect ourselves from paying wage increments the business cannot afford. If we acquire a similar contract like that of the building contractor in Milton, this target would be easily attained. If targets are met, both the employer and employees are better off	Targets are not at the control of the employees. If CE refuses to get a contract from a building contractor or the economy GDP continues to decline, employees will not get this bonus.
Introduction of a lump-sum payment. Effective the second pay period after the ratification of the collective agreement, each active employee with at least 1- year seniority, shall receive a $1,500 lump-sum payment	Offering a lumpsum payment of $1,500 will allow management to exert control over spending for employee wages. It will help reduce the cost of wages for the entire fiscal year. As CE faces uncertain times, it helps reduce the cost of how much they must pay out to their employees.	The union consider a lump-sum as a positive as it places money in the pockets of employees quickly and efficiently. However, CE has offered a competitive wage for its employees with a GWI of 3% for the past two years. The union may consider a lump-sum payment insufficient compared to a wage increase.

Costing of Changes

Table 1: % Change in Income

Description	Year Just Ended	One Year Ago	Two Years Ago
Net Income for Year	$ 2,964,324.00	$ 2,129,325.00	$ 3,925,317.00
Percentage change in income
rounded to the nearest decimal place.	39.2%	-45.8%

Note: An examplefrom Consolidated Electric 2023 is included in the following table shown above. The rate of income mobility from one year to the next is measured by the percentage change in income. It is determined as follows: (Net income for thisyear) current year/(Net Income for the pervious firstyear) previous year-Net income for the pervious secondyear. This demonstrates a decline from two years ago to one year ago yet a 39% increase in the most recent year. As there is no assurance that CE will continue to expand at the same pace in the upcoming year, we will adopt a careful growth rate of 39%/2 = 19.5% to determine our potential salary increment techniques for years 1 and 2.

Table 2: Projected Income

Description	Year 2 Projections	Year 1 Projections	Year Just Ended
Net Income for Year	$ 4,233,128.78	$ 3,542,367.18	$ 2,964,324.00
Influence of higher income on finance	$ 690,761.60	$ 578,043.18

Note These predictions are made to comprehend the effects of a successful business performance by CE on the discussions around employee salary increase. The projected net income for YR1 and YR2 is based on an income growth rate of 19.5%, which is only half the actual income growth rate for the most recent fiscal year. If CE doesn't obtain a comparable contract its existing performance level could not be able to support further expansion.

Table 3: Cost of pay overall for all job levels utilizing the current YR 2 hourly rate from the expired collective agreement.

Number Of Workers in Each Job Level	Job Level	Job Title	Yr2 From Expired CA	Absolute Wages for The Year $ (1 Employee)	Absolute Wages for The Year $ (All together)
110	1	Line Operator Assembler	$15.99	$33,259.20	$3,658,512.00
10	2	Cleaner	$15.56	$32,364.80	$323,648.00
94	3	Utility Operator	$15.63	$32,510.40	$3,055,977.60
Machine Operator - Light
183	4	Repair RMR	$15.73	$32,718.40	$5,987,467.20
65	5	Assembly Line Attendant	$15.84	$32,947.20	$2,141,568.00
Wrapper and Loader
Material Handler
12	6	System Helper	$16.01	$33,300.80	$399,609.60
Machine Operator - Heavy
Crate Maker
85	7	Storekeeper - Trucker	$16.16	$33,612.80	$2,857,088.00
43	8	Service - Materials	$16.29	$33,883.20	$1,456,977.60
Receiver - Shipper
Spray Painter
8	9	Welder	$16.43	$34,174.40	$273,395.20
7	10	System Operator	$16.62	$34,569.60	$241,987.20
3	11	Set-up Assembly	$16.84	$35,027.20	$105,081.60
20	12	Set-up and9 Maintenance	$16.99	$35,339.20	$706,784.00

Note: The financials for CE 2023 are excerpted in the table above. The calculations used to get the "Absolute salaries for the year $" account for the total amount paid out to each job level category for the number of employees who fall under that level during a 52-week, 40-day workweek. In the most recent fiscal year, employees received a total payout of $21,208,096 in regular earnings.

Table 4: Calculations of Cost of Living Allowances (C.O.L.A)

Month	CP1 2021-2022	CPI 2022-2023
November	144.2	154
December	144	153.1
January	145.3	153.9
TOTAL CPI FOR THE LAST 3 MONTHS	433.5	461
Average rounded to the nearest 0.01	144.50	153.67

Note: Statistics Canada is where the CPI numbers in the table above were taken from. (n.d.)) (Average CPI 2022/23 - Average CPI 2021/22)/Average CPI 2021/22 is the formula used to compute the cost-of-living allowance (C.O.L.A. ), which is equivalent to 0.06%. For Group 1 employees alone, we plan to implement C.O.L.A. + 1% salary increases.

Table 5: Effects of the Group Structure and paying Group 1 workers C.O.L.A. extra 1%

Wage Levels	Number Of Workers in Each Job Level	Job Level	Job Title	Yr2 From Expired CA	1.06% Increment for Wage Group 1 Employees (hourly rate $)	Absolute Wages for The Year $ (All together)
Group 1	110	1	Line Operator Assembler	$15.99	$16.16	$3,697,292.23
10	2	Cleaner	$15.56	$15.72	$327,078.67
94	3	Utility Operator	$15.63	$15.80	$3,088,370.96
Machine Operator - Light
183	4	Repair RMR	$15.73	$15.90	$6,050,934.35
65	5	Assembly Line Attendant	$15.84	$16.01	$2,164,268.62
Wrapper and Loader
Material Handler
12	6	System Helper	$16.01	$16.18	$403,845.46
Machine Operator - Heavy
Crate Maker
Group 2	85	7	Storekeeper - Trucker	$16.16	$16.16	$2,857,088.00
43	8	Service - Materials	$16.29	$16.29	$1,456,977.60
Receiver - Shipper
Spray Painter
8	9	Welder	$16.43	$16.43	$273,395.20
7	10	System Operator	$16.62	$16.62	$241,987.20
3	11	Set-up Assembly	$16.84	$16.84	$105,081.60
20	12	Set-up and Maintenance	$16.99	$16.99	$706,784.00

Positional Bargaining Strategy

Potential Change to Language	Opening Position	Target Position	Fallback Position	Research to Support each Demand/ Proposal
Introduction of Wage structure across job levels within CE	"Group the job levels to create a wage structure for different Job levels."	Level 2,3,4 job levels will be labelled 'Group 1' workers while Job levels 1,5- 12 will be labelled 'Group 2'	Level 1-6 (wages less than $16/hr) Job levels will be labelled 'Group 1' workers while Level 7-12 job levels will be labelled 'Group 2'	-Grouping these individuals allows CE to distinguish between the lower-income earners and the higher income earners. -This will reduce the impact of an increased general wage increase for this option. (Dana Canada Corporation, Power Technologies Group Collective Agreement, 2018, Article 27.01)
Introduction of wages for 2020 using the group strategy.	No wage increases for any level for the year 2020.	No wage increases for any level for the year 2020. Offer a lump-sum payment of $1,500 for employee with seniority. Paid following the second pay period of ratification .	Wage increases of 1.3% for Group 1 of employee s. 0.3% Cost of living Allowance (C.O.L.A) plus 1% to remain competitive with other employer s. 0.3% to adjust for the Cost of-Living Allowance.	-Economic conditions and lack of homebuilder contract make management apprehensive to raise wages. -Offering a lump-sum payment to employees puts money in their pocket quickly. It costs less for the employer to payout the lump-sum payment then raises wages. -The 1.3% wage increase for group one provides those at lower levels allows CE to remain competitive and an adjust for the cost of living. Offering it to Group 1, allows CE to save on salaries and wages