1. In your opinion, was management’s request to change the insurance carrier (plan) reasonable?

Explain your reasoning. The employer designs, installs, and maintains private telephone systems for customers.

Employees in the bargaining unit have been represented for many years by the union.

The parties’ current collective bargaining agreement provides for the following medical insurance benefits:

‘‘basic medical benefits covering reasonable and customary charges; and major medical benefits with an unlimited maximum benefit; a dental benefit plan; and long-term disability benefits. These benefits are described by the specific insurance contracts to be filed with the Union’s district office.’’

The company had been experiencing declining profits for several months attributed to a general economic recession and the loss of a major client.

In June, the management team reviewed the current situation and forecast for the firm’s short-term future and decided to adopt a strategy of cutting operating costs. As part of this strategy, the three top managers of the firm, who were also its owners, agreed to eliminate their salaries and lay off two members of the administrative staff.