CASE STUDY

COOL Company, a manufacturing firm in Malaysia, and the ABC Union, which represents a group of employees at the company, have been negotiating a new collective agreement for several months. The previous agreement has expired, and both parties are seeking to reach a new agreement that addresses key issues such as wages, benefits, and working conditions.

Background

COOL Company is a large manufacturing firm that employs over 1,000 workers in Malaysia. The company produces a variety of products for both domestic and international markets, and it has a strong reputation for quality and innovation. The ABC Union represents a group of workers at COOL Company, including production staff, maintenance personnel, and administrative support staff. The union has been active at the company for many years, and it has played an important role in advocating for the rights and interests of its members.

Negotiations

Negotiations between COOL Company and the ABC Union have been ongoing for several months. The parties have met multiple times to discuss issues such as wages, benefits, and working conditions, but they have not yet reached a final agreement. One of the key issues in the negotiations is wages. The ABC Union is seeking a significant increase in wages for its members, arguing that they have not received a fair increase in recent years. COOL Company, on the other hand, is concerned about the cost of labor and the impact of a wage increase on the company's bottom line.

Another issue in the negotiations is benefits. The ABC Union is seeking better benefits for its members, including increased healthcare coverage and more generous retirement benefits. COOL Company is willing to consider some changes to the benefits package, but it is also concerned about the cost of these changes and the impact on the company's finances.

Finally, working conditions are another key issue in the negotiations. The ABC Union is seeking improvements to working conditions, such as better safety measures and more flexible scheduling. COOL Company is committed to providing a safe and healthy work environment, but it is also concerned about the impact of changes to working conditions on productivity and efficiency.

QUESTION

1. Discuss some strategies that COOL Company might use to negotiate a successful collective agreement with the ABC Union? Justify your answer with appropriate section and act.