ASSIGNMENT 2: NEGOTIATIONS - INDIVIDUAL VERSION PETER HOPPE Workers and management at a large automotive dealership service department are embroiled in a serious conflict regarding compensation, benefits, and working conditions. The service department employs 10 auto technicians (mechanics) who are paid based on a fixed project rate. For example, while the dealership may charge a customer $39 for an oil change, the technician performing the oil change would get paid $10. Similarly, a technician would get paid $45 to service four brakes, while the dealership would charge the customer $149. The service union representative calculates that technicians only receive 25% of the service fees charged to customers. The dealership manager suggests that this calculation is inaccurate and that technicians actually receive a much higher percentage of customer invoices. The union representative wants to increase the percentage of customer invoices that technicians earn to 40%, not including the cost of parts. The manager claims that this is far above industry standards, and that the dealership simply cannot afford to pay its technicians at this rate. The second point of contention is about the benefits plan the technicians currently have. The plan covers 50% of dental, prescription medication and optical needs. This basic coverage also has an annual financial cap. Technicians receive four paid sick days per year and two weeks of paid vacation. The union representative wants to negotiate a better plan for the technicians that includes 80% coverage for dental, prescription medication and optical needs, 12 paid sick days, and four weeks of paid vacation. The manager claims that this is not within industry standards, would be far too expensive for the dealership, especially if any pay increases are to be considered. Finally, current working conditions are unsatisfactory to the technicians. The service bays have no air conditioning, and it can reach 40 degrees Celsius on some hot summer days. During busy days, breaks are very limited as customers are waiting for their cars to be serviced. A 30-minute paid lunch break is provided. Technicians do not receive any additional income for overtime. The manager claims that installing air conditioning would require a significant investment, especially since garage doors are constantly opening and closing. However, she is willing to look at providing more breaks and an extended lunch period. Additional overtime pay cannot be considered according to the manager, but technicians will be given the option to accept or reject any overtime work. This is a new union and the first contract negotiations. The person representing the union has limited experience but is facing heavy pressure from the technicians to have management meet their demands. They have made it clear that they are prepared to go on strike if required and will be in a legal strike position in two weeks. Sales and service at the dealership have suffered due to the COVID-19 pandemic. While business has improved over last few weeks, the manager is under great pressure to keep the dealership profitable or else the owners have threatened to shut it down and move operations to another dealership. However, doing so would come at a great expense to both the employees and dealership. The dealership manager and union representative have worked together for five years and have enjoyed a mutually respectful working relationship. However, since the union was formed, this relationship has been strained, and a few verbal confrontations have ensued.

ASSIGNMENT DETAILS: You have been assigned to role of mediator to bring both sides to reach an amicable solution and agreement.

SECTION 1: Your first task is to provide some background on the causes and type of conflict being experienced, as well as the positive and negative consequences of this conflict. This should be followed by a summary of commonalities and differences the union and management are facing:

SECTION 2: Second you will need to provide an assessment of the strengths and weaknesses of both the union and management, including the BATNA of each side: SECTION 3: Your third task will be to suggest compromises each side can make towards reaching an agreement based on your assessment above:

SECTION 4: Finally, you should draft an informal agreement for each side to review and include reasons why this agreement is mutually beneficial:

Your work should integrate content from Chapter 10 of your textbook. The solutions and agreement you write should be compelling, creative and realistic according to industry standards. Don't be afraid to suggest solutions that provide alternatives to the current system of compensation, benefits and working conditions. The word length suggestions for each section above are only guidelines. However, your assignment should be 1,500 to 1,800 in length and formatted in an easy-to-read and professional style.