A collective bargaining session is about to begin. You will represent the Getwell Hospital, a part of the National Medical Corporation (NMC). NMC is a very successful chain of 50 hospitals around Bangladesh and the largest chain of private for-profit hospitals in the country.

You will be negotiating with the Hospital Employees Union, representing 625 hospital workers at Getwell Hospital, including certified nursing assistants (C.N.A.s), laboratory technicians (lab techs), radiology technicians (radiology techs), pharmacy technicians (pharmacy techs), food service, and housekeeping workers. Also at the hospital is a unit of 250 registered nurses (R.N.s), represented by a different union and involved in their own separate negotiations with the Getwell Hospital management. The issues in these negotiations are 1) Wages; 2) Medical Benefits.

Your goal is to negotiate the least costly wage and benefit package you can, for a one- a year contract with the Hospital Employees Union. While you want to attract and

retain the best employees, you need to stay within Getwell Hospital's budget. The The Board of Directors of the National Medical Corporation has instructed you to avoid spending over BDT 1.5 1.75 crore of new money on improvements in wages and benefits. The Corporations Board of Directors also wants you to avoid a strike and its potential consequences. To add to the pressure, you have just been informed that the union members have taken a strike vote and are prepared to walk out if their demands are not met. Any contract you agree to with the unions bargaining committee must be approved by the NMC Board of Directors, and then, ratified by the union members. Here's the background:

1. Wages: Wages will be the most important and expensive issue you negotiate. The average wage for an employee in the bargaining unit is BDT 100/hr. Each employee works 40 hours x 50 weeks (approx.) = 2,000 hours per year; BDT 100 x 2,000 hours = BDT 200000 average workers wages per year; 200000 x 625 = BDT 12.5 crore.

However, the union feels that the company should be sharing its profits with the workers whose labor creates the profits! The union proposes to get at least a 20% increase in wages from management or BDT 20.00/hour for every worker. Formulas for total cost: Each employee works 40 hours x 50 weeks (approx.) = 2,000 hours/year. BDT 20 x 2,000 hours = BDT 40,000. BDT 40,000 x 625 = BDT 2.5 crore (workers wage increment per year). Apparently, a 20% raise for a worker will cost the following per month: BDT 800/week x 4.17 wks (approx) = 3336/mo (approx). However, the Board of Directors of the National Medical Corporation has instructed you to avoid spending over BDT 1.5 1.75 crore for this year on improvements in wages and benefits. Considering these uncertain economic times, you cannot afford more. In addition, you would like to keep wage costs down so NMC can increase the annual dividends (share of profits) that will be paid to its stockholders (owners), and therefore, attract even more investors. You also want to invest more money in new technology and equipment. You could inform the union negotiators that higher wages might mean down-sizing. In order to convince the union, you should use more analysis, calculations, and supporting materials and place your offer accordingly.

2. Medical Benefits: Getwell Hospital has provided health care services at no charge for all employees and their dependents on-site at the Hospital, or any of NMCs hospitals around the nation. This has cost the Hospital an average of BDT 2000/month for each employee in the bargaining unit, and each month this money is deposited into the Getwell Hospital Employees Family Health Care Insurance Fund bank account. The hospital currently budgets almost BDT 1.5 crores (BDT 2000 x 625 employees x 12 months = BDT 1.5 crore) for this benefit provided to employees and their families. However, you have been advised by NMC headquarters that inflation will increase the cost of providing these benefits next year 20% next year, or BDT 30 lakhs. This increase will have to be covered by your budget for this 9 contract and you think it is reasonable for the employees to share this cost burden, just like many employees in other workplaces have to. You also know that the National Medical Corporation, which owns Getwell Hospital, wants to reduce labor costs and increase dividends (profits) to the stockholders (owners). Therefore, you want the employees to start contributing BDT 400/month to the Getwell Hospital Employees Family Health Care Insurance Fund, in order to maintain their medical

benefits at the hospital, and you will deduct this amount each month from employees paychecks. You need to convince the union of this.