Question: Read the case and answer the question: Q. Consider the contract change that Tesco wanted to make the employees at Chepstow ? How do you
Read the case and answer the question:
Following negotiations that had been ongoing since the preceding summer, in February 2010, the management of a Tesco distribution plant based in Chepston South Wales, was disappointed when the workforce rejected a relocation plan whereby they would move to a new distribution plant, built nine miles away from Chepstow, on the other side of the nearby Severn Bridge, at Pilning. The 750 employ. ees were unhappy with the proposed moves to get to work they would have to pay the toll charge to cross the Severn Bridge, and the new terms and conditions were not as favourable, as the average salary would drop from 21,000 to 18,000 and pensions would be decreased, while their union Unite would no longer be recognised as their representative body. Following negotiations the company had agreed that nobody transferring from Chepstow to Pilning would actually face a pay cut, but instead their salaries would be frozen until the rate paid to newly recruited employees caught up with their pay. Those staff not accepting the new terms and conditions would be made redundant Ron Web, the national secretary for Unite, said: 'What Tesco is hiding behind this move is that it wants to keep the workers, but only if they agree to vastly inferior contracts. At the same time they want to deny workers the chance to be represented by their lawful union. At a time like this, when workers are frightened for their jobs, this is an underhand way to get them to agree to pay cuts.' In contrast Nigel Jones, the operations director at Pilning, said: 'Our new distribu- tion centre at Pilning will not only represent a long-term investment within the area, but is good news for local job seekers, particularly in the current climate.! At the time the local press reports from Wales told how indignant local councillors felt about the switch Pilning and the impact it would have on their constituents; in contrast, the press reports from the Bristol area quoted delighted councillors welcoming the number of new jobs to the area
Q. Consider the contract change that Tesco wanted to make the employees at Chepstow ? How do you think the new employees at Pilning might feel once they knew that it would take eight years for them to catch up with their colleagues who had transferred from Chepstow ? Evaluate the possible employee perceptions around the organisational justice of the proposed alternations to thier employement conflict.
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