V 7) A prohibition on loss of employment resulting from technological change. "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her hours of work as a result of the us new equipment or the introduction of other technological change." (LODIN PUKMURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the reason developing new products and expanding into new markets and to oversee new markets, and to oversee increases in employee training. 5 W Iles dem Siespune 0 0 I Solunon. Lupin furniture Products ltd. OPENING POSITIONS Union Proposals: A collective Bargaining - Simulation 1) An across-the-board wage increase for all job classicanons of 5%. 2) A one year contracte -600 D 3) A return to 12 paid statutory holidays. ays. 4) A new seniority section (XII) to read: Layoffs, recalls, and transfers between plants will be based on seniority. In the case of layoffs, employees will have 30 days to bump into another job in either plant) for which the employee is qualified if the position is held by another employee with less seniority." 5) The Prince George wage rates to be increased to the level of those in Vancouver. A prohibition on contracting out (outsourcing): "The Employer agrees to not contract out any work that could be done by employees in the bargaining unit even if this provision requires that the company hire new employees." 7) A prohibition on loss of employment resulting from technological change r "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her hours of work as a result of the use of new equipment or the introduction of other technological change." (LODIN PUKMZURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the feasibility of developing new products and expanding into new markets, and to oversee increases in 1 employee training. Lupine Furnitu The Furniture Products Limited Ltd Collective Bargaining Simulation HRMG 3205. Labour Relations 1 2019 version 1. Each student will be appo committee to participate in the Collective appointed ither a management of a Union bargaining Bargaining Simulation. A critical aspect of conducting negotiations is the case to familiarize yourself with the backe ons is the planning and preparation process. Study the following ground of the company, the economic conditions, and the issues for begotiation You will then be ready to participate with your mittee in formulating strategic class negotiating session. 2. Note: To better understand possible trade- le trade-offs during bargaining, each bargaining committee should do basic costing of the collective agreement that ludes at least the following: (1) the current total annual wage cost of the company's production and maintenance personnel; (2) the wage cost associated with a one percent increase in wages: (3) the current total wage cost for one day, and (4) the current total annual cost of the medical, dental, and extended health care premiums. (Assume that there is one 8-hour work shift per day.) 3. Background: British Columbia-based Lupine Furniture Products Limited manufactures furniture at two plants: one in Vancouver, employing 85 persons in production and maintenance, and the other in Prince George, employing 43 persons in production and maintenance. It is a privately-owned company founded in 1986 by a former executive of a large eastern-based furniture manufacturer. The company's main markets are located in British Columbia and Alberta, with approximately one-half of the company's shipments going to BC markets and the other half to Alberta. Its United Sernine's product goes w ridered selling to other 4. The company manufactures medium-priced home furniture commonly sold by retailers using local raw materials plus several types of wood imported from eastern North America and Asia. The company's Canadian markets are all in BC and Alberta. Its United States markets are found on the west coast. However, only a small fraction (about 5%) of Lupine's product goes to US markets and none is sold elsewhere in Canada. While the company has often considered selling to other markets, no concrete planning about this possibility has yet occurred. Some managers and union officials think it is very important for the company to enter new markets in eastern Canada and in the US. The volatility of the Canadian dollar relative to the US dollar over the past several years (it has ranged from USD 0.74 to USD 1.10 and is currently USD $0.76.) has made expansion into the US tempting at times and risky at other times. Some union officials have tried on several occasions to convince the company to expand into the US. Some managers did agree with this, but the company president has not yet been persuaded and, given the current state of the US economy and President Trumps comments on trade, she is unlikely to change her mind in the near future. She is also cautious about moving into eastern Canada in the current economic environment. However, she remains open to being convinced if a strong case can be made. of the early 1990s and 2008. the late 1990s and 2010. In the mid- short-lived but sharp drop in Isid off for several months. All have nown only slightly over the past three erformance than some firms in the alt economic environment that 5. Lupine's business was badly hit by the recessio However, the company's fortunes improved ved but ur resulted in a s, a short-term economie de company sales. At that time same employees were since been recalled to work C les have a years. However, this represente somewhat better performance than industry who have experienced flat sales in the dith followed in the wake of the late-2008 downturn and and the collapse of a of oil prices in 2015.. 2016. Although interest rates have been very low, sp as furniture has not been very strong. Fortunately, economy has returned to positive growth. Major clo in clouds on the economic horizon include pipeline dispute adversely affecting all of Alberta, trade negotiations, the uncertainty of USMCA approval in the USA and the low price of oil. Accordingly, Lupine management is not too optimistic about sales for at least the next year or so. spending on consumer durables such the US downturn is over and the 6. As a result of continuing economic uncertainty and business competition, Lupine has plans to alter its product line to include a range of bome-assembly products requiring less skill in manufacturing, which in turn raises the possibility of contracting out (outsourcing) some of this manufacturing. 7. The union that represents the employees is the Furniture and Allied Workers' Union, Local 101 (FAW-affiliated with the BC Federation of Labour and with the Canadian Labour Congress). It received separate certifications for each plant in 2007 covering all production and maintenance workers. At the suggestion of management and with the agreement of the union, a single set of negotiations and a single collective agreement have covered the two plants since collective bargaining began in 2007. Lupine has a union shop arrangement whereby employees are required as a condition of employment to join the union and to pay union dues. 8. FAW local union elections will be held in several months and some members have started to agitate for the unseating of the moderate leadership. There is dissatisfaction with the current union leadership among those in the tradesman classifications because of the small pay differential between skilled tradesmen and generally lesser skilled production personnel. 9. In an attempt to remain competitive, the company replaced aging equipment in its paint shop with new automated machinery in 2016. No layoffs occurred as a result of these changes, but several workers who left the company were not replaced. Although the installation was relatively simple and a few maintenance personnel were on layoff at the time, they were not recalled to do the work. The company used a non-union contractor to do the installation instead. A threatened wildcat strike at the Prince George plant was only narrowly averted. When the FAW filed a grievance, the company pointed out that the collective agreement did not limit its right to contract out the work. The union took the case to arbitration and lost. and the plant want the company 10. In addition, there are persone install more new equipment that will clima term contract in the upcoming round of that the company will attempt at som a consolidation of all three Doprades classification in order to enhance the opera ant that the company plans to especially if it can get alone ining. There are other rumours vill elimiste several jobs, especial d o llective bargaining were are oth collective bargaining round, to barani ah cassifications in a single i flexibility of the workplace collective agreement espiring on 11. In September 2016, the pastrada June 30, 2019 with a 1.25% increase in each elimination of 2 paid holidays, thereby redac anxious to improve upon the old contract and laid off, the recent installation of new equipe and the moderate increase in consumer durabu company's future looks brighter than managem ch of the three contact years, plus the The number from 12 to 10. The union is the fact that no workers are currently on of w oment, the economic recovery of oil price Un consumer durable goods spending as signs that the ghter than management is willing to admit. 12. Economic Conditions: The Canadian COD Conditions: The economy grew in real terms by 1.1% in 2015 1.2% in 2016 and 3.0% in 2017. It is forecast to to reach 2.1% in 2018 and 1.5% in 2019. The BC provincial economy grow by 2.7% in 2015, 2015, 3.4% in 2016 and 3.0% in 2017. It is dropped o forecast to grow 2.5% in 2018 and in 2019. The Alberta provincial economy n 2018 and 3.0% in 2019. ut de 12 dropped 4.0% in 2015, dropped 2.39% in 2016 but increased by 3.9% in 2017. It is forecast to grow 2.1% in 2018 but drop 1.0% in 2019. 13. US economic growth rates were 2.0% for 2015, 1.4% for 2016 and 3.2% in 2017. It is forecast to grow 2.5% in 2018 and 2.1% in 2019. The US unemployment rate has significantly improved, dropping from between 8.0 and 9.0% to 5.8%. Further improvements are expected over the next year. The state of the US economy is always a concern for Canadians given Canada's close economic ties to the US. 14. There were 31,466 housing starts in BC in 2015, 41,840 for 2016 and 43,666 in 2017. Alberta, even with its slightly smaller population, had the following housing starts: 37,285 in 2015 but only 24,533 in 2016. In 2017, there were 29,457 housing starts. Following the serious flooding in Alberta in 2013, housing starts were abnormally high with many being replacement for damaged and destroyed houses in 2014 and 2015. 15. Canadian demand for consumer durable goods, including furniture, was moderate in the low-interest rate environment of the past decade until it dropped during the economic downtum of 2008-2009. Most of 2010-14 was not that good for consumer durables spending as there was only a 1.2% increase and 2015 - 2016 saw sales remain flat. 16. Industry observers forecast that Canadian home furniture sales, measured in constant dollars, expanded about 30% over the period from 2008 to 2018 (somewhat more than the 24% expected in the US). This fact is of interest to both Canadian and foreign furniture manufacturers. Trade liberalization (due to the North American Free Trade Agreement and the new European Trade Agreement) has resulted in growing import pressures in Canada, but at the same time has created new export opportunities for those companies that are able to adjust to the more competitive environment. Many US le suppliers are becoming even more active in Canada will result in some job losses in the Canadian furniture tower than 100-200 employers are expected to fare best i tes because of their ability to specialize and to respondre consumer demand. psy. Www with infot antively guy login t 17-Management spokespersons for the industry have expressed level of imports in Canada, currently over 40% of the domestic exceed exports. Many of these imports come from parts of the is levels are higher than the Canadian average. This is the case even furniture workers are generally better educated than their US.COM increasing imports from China. Less than 5% of imported furnit from Europe and this furniture is typically very high end, expensive express or to Comme as of the US where you e case eventos Cada ir US counterparts. These ed furniture traditionally d. expensive fun 18. The industry is fairly labour intensive, with labour costs account total sales for the industry. Technological improvements in productie increased operational flexibility, are seen as ways of raising prodotti academic experts continue to recommend that manufacturers invest and in improved employee relations in an attempt to remain competitive ur costs accounting for about 25% of ments in production, along with s of raising productivity. Some manufacturers invest in employee training 19. BC manufacturers will generally try to resist large cost increases in collective bargaining and will focus on increased productivity (an area in which BC manufest tend to lag behind those in other provinces due to generally less investment in new technology and less product innovation). On the trade union side, many unions are anxious to protect employees from the growing uncertainty of the ever-changing marketplace and from the resulting attempts by employers to increase the operational flexibility of their workplaces. 20. Inflation has been low both in BC and in the rest of Canada over the past several years. Inflation (as measured by the consumer price index) in BC was 2.3% in 2017, 1.9% in 2016, 2.1% in 2017 and 2.2% in 2018. Alberta inflation was 1.4% in 2017 in 2016, 2.5% in 2017 and 2.3% in 2018. Forecasts beyond a year or two make, but most economic observers do not expect any large increases in 18. Forecasts beyond a year or two are difficult to Note: Refer to the following sections of the 4th edition of the Lab textbook to understand why employers and unions take the position regarding various issues: duration of agreement (p. 154); contracting technological change (p. 171); and the relevant parts of Figure 7-10,- 168 to 170. This basic research will prepare you for engaging in nego other side. the 4th edition of the Labour Relaions ons take the positions they do 4); contracting out (p. 160); arts of Figure 7-10, 7-11 and 7-12 on pp. engaging in negotiations with the RELEVANT SECTIONS OR EXISTING ONS OF EXISTING COLLECTIVE AGREEMEN 1) Sestion XX-Existing Ware Rates as of June Classification Prince George** (43) (No. of workers) 1 - Labourer/Helper 2-Assembler/Operator I 3 - Assembler/Operator II 4 - Tradesman I 5-Tradesman II ates as of June 30, 2019: Vancos (85) (No. of workers) $15.70 (17) $16.50 (17) $17.10 (27) $19.90 (17) $20.70 (7) $15.45 (8) $16.25 (8) $16.85 (15) $19.65 (7) $20.45 (5) **There has always been a 25-centhour differential between the plants on all wage rates. 2) Section XII - Seniority "The Employer retains the right to determine who shall be promoted, transferred, laid off, or recalled, and shall consider the factor of seniority only if qualifications and ability are considered equal between employees." 3) Section XV - Insurance "The Employer shall pay the premiums for the medical, dental, and extended health care plans." 4) Section X -- Grievance Procedure "Step 1: Within 14 days of the occurrence of a difference between an employee and the Company, the employee shall discuss the difference with his/her immediate supervisor. Step 2: If the matter is not resolved then within 14 days of the completion of Step 1, the difference shall be submitted in writing to the supervisor. A grievance meeting shall be held and a written response shall be given within 14 days of the receipt of the grievance, Step 3: If the matter is not resolved then within 14 days of the completion of Step 2, the grievance shall be submitted in writing to the President of the Company, who shall reply in writing within 14 days of the receipt of the grievance. come in Step 3, it may, within 14 days matter to arbitration for resolution." Step 4: If the Union is not satis after receiving the President's of satisfied with the outcome in St resident's response, take the net to b opin furniture Foduck ltd. OPENING POSITIONS r don Proposals: A e Bargaining -Simulation for all job classifications of 5% 1) An across-the-board wage increase for all 2) A one year contract. 3) A return to 12 paid statutory holidays. 4) A new seniority section (XII) to read: "Layoffs, recalls, and transfers between plants recalls, and transfers between plants will be based on seniority. In the case of layoffs, employees will have 30 days to bump into another job (in either plant) for the employee is qualified if the position is held by another employee with less senior The Prince George wage rates to be increased to the level of those in Vancou 6) A prohibition on contracting out (outsourcing): "The Employer agrees to not contract out any work that could be done by the bargaining unit even if this provision requires that the company hire new cm COUVerlor be done by employees in company hire new employees." 7) A prohibition on loss of employment resulting from technological change: "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her bours of work as a result of the use of new equipment or the introduction of other technological change." LUPIN FURNITURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the feasibility of a developing new products and expanding into new markets, and to oversee increases in employee training. Employer Proposals: 1) A four year contract with annual wage increases of 1%, 1%, 1%, 1% for Tradesman I and II; and 0%, 0%, 0%, 0% for Assembler/Operator I and II; and 0%, 0%, 0%, 0% for Labourer/Helper. 2) The following addition to the existing seniority section (XII): "in the sole opinion of the Employer" to be added just before "qualitications and ability are considered equal between employees." 3) Amend Section X by replacing, in all relevant instances, "14 days" with 3 days." V 7) A prohibition on loss of employment resulting from technological change. "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her hours of work as a result of the us new equipment or the introduction of other technological change." (LODIN PUKMURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the reason developing new products and expanding into new markets and to oversee new markets, and to oversee increases in employee training. 5 W Iles dem Siespune 0 0 I Solunon. Lupin furniture Products ltd. OPENING POSITIONS Union Proposals: A collective Bargaining - Simulation 1) An across-the-board wage increase for all job classicanons of 5%. 2) A one year contracte -600 D 3) A return to 12 paid statutory holidays. ays. 4) A new seniority section (XII) to read: Layoffs, recalls, and transfers between plants will be based on seniority. In the case of layoffs, employees will have 30 days to bump into another job in either plant) for which the employee is qualified if the position is held by another employee with less seniority." 5) The Prince George wage rates to be increased to the level of those in Vancouver. A prohibition on contracting out (outsourcing): "The Employer agrees to not contract out any work that could be done by employees in the bargaining unit even if this provision requires that the company hire new employees." 7) A prohibition on loss of employment resulting from technological change r "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her hours of work as a result of the use of new equipment or the introduction of other technological change." (LODIN PUKMZURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the feasibility of developing new products and expanding into new markets, and to oversee increases in 1 employee training. Lupine Furnitu The Furniture Products Limited Ltd Collective Bargaining Simulation HRMG 3205. Labour Relations 1 2019 version 1. Each student will be appo committee to participate in the Collective appointed ither a management of a Union bargaining Bargaining Simulation. A critical aspect of conducting negotiations is the case to familiarize yourself with the backe ons is the planning and preparation process. Study the following ground of the company, the economic conditions, and the issues for begotiation You will then be ready to participate with your mittee in formulating strategic class negotiating session. 2. Note: To better understand possible trade- le trade-offs during bargaining, each bargaining committee should do basic costing of the collective agreement that ludes at least the following: (1) the current total annual wage cost of the company's production and maintenance personnel; (2) the wage cost associated with a one percent increase in wages: (3) the current total wage cost for one day, and (4) the current total annual cost of the medical, dental, and extended health care premiums. (Assume that there is one 8-hour work shift per day.) 3. Background: British Columbia-based Lupine Furniture Products Limited manufactures furniture at two plants: one in Vancouver, employing 85 persons in production and maintenance, and the other in Prince George, employing 43 persons in production and maintenance. It is a privately-owned company founded in 1986 by a former executive of a large eastern-based furniture manufacturer. The company's main markets are located in British Columbia and Alberta, with approximately one-half of the company's shipments going to BC markets and the other half to Alberta. Its United Sernine's product goes w ridered selling to other 4. The company manufactures medium-priced home furniture commonly sold by retailers using local raw materials plus several types of wood imported from eastern North America and Asia. The company's Canadian markets are all in BC and Alberta. Its United States markets are found on the west coast. However, only a small fraction (about 5%) of Lupine's product goes to US markets and none is sold elsewhere in Canada. While the company has often considered selling to other markets, no concrete planning about this possibility has yet occurred. Some managers and union officials think it is very important for the company to enter new markets in eastern Canada and in the US. The volatility of the Canadian dollar relative to the US dollar over the past several years (it has ranged from USD 0.74 to USD 1.10 and is currently USD $0.76.) has made expansion into the US tempting at times and risky at other times. Some union officials have tried on several occasions to convince the company to expand into the US. Some managers did agree with this, but the company president has not yet been persuaded and, given the current state of the US economy and President Trumps comments on trade, she is unlikely to change her mind in the near future. She is also cautious about moving into eastern Canada in the current economic environment. However, she remains open to being convinced if a strong case can be made. of the early 1990s and 2008. the late 1990s and 2010. In the mid- short-lived but sharp drop in Isid off for several months. All have nown only slightly over the past three erformance than some firms in the alt economic environment that 5. Lupine's business was badly hit by the recessio However, the company's fortunes improved ved but ur resulted in a s, a short-term economie de company sales. At that time same employees were since been recalled to work C les have a years. However, this represente somewhat better performance than industry who have experienced flat sales in the dith followed in the wake of the late-2008 downturn and and the collapse of a of oil prices in 2015.. 2016. Although interest rates have been very low, sp as furniture has not been very strong. Fortunately, economy has returned to positive growth. Major clo in clouds on the economic horizon include pipeline dispute adversely affecting all of Alberta, trade negotiations, the uncertainty of USMCA approval in the USA and the low price of oil. Accordingly, Lupine management is not too optimistic about sales for at least the next year or so. spending on consumer durables such the US downturn is over and the 6. As a result of continuing economic uncertainty and business competition, Lupine has plans to alter its product line to include a range of bome-assembly products requiring less skill in manufacturing, which in turn raises the possibility of contracting out (outsourcing) some of this manufacturing. 7. The union that represents the employees is the Furniture and Allied Workers' Union, Local 101 (FAW-affiliated with the BC Federation of Labour and with the Canadian Labour Congress). It received separate certifications for each plant in 2007 covering all production and maintenance workers. At the suggestion of management and with the agreement of the union, a single set of negotiations and a single collective agreement have covered the two plants since collective bargaining began in 2007. Lupine has a union shop arrangement whereby employees are required as a condition of employment to join the union and to pay union dues. 8. FAW local union elections will be held in several months and some members have started to agitate for the unseating of the moderate leadership. There is dissatisfaction with the current union leadership among those in the tradesman classifications because of the small pay differential between skilled tradesmen and generally lesser skilled production personnel. 9. In an attempt to remain competitive, the company replaced aging equipment in its paint shop with new automated machinery in 2016. No layoffs occurred as a result of these changes, but several workers who left the company were not replaced. Although the installation was relatively simple and a few maintenance personnel were on layoff at the time, they were not recalled to do the work. The company used a non-union contractor to do the installation instead. A threatened wildcat strike at the Prince George plant was only narrowly averted. When the FAW filed a grievance, the company pointed out that the collective agreement did not limit its right to contract out the work. The union took the case to arbitration and lost. and the plant want the company 10. In addition, there are persone install more new equipment that will clima term contract in the upcoming round of that the company will attempt at som a consolidation of all three Doprades classification in order to enhance the opera ant that the company plans to especially if it can get alone ining. There are other rumours vill elimiste several jobs, especial d o llective bargaining were are oth collective bargaining round, to barani ah cassifications in a single i flexibility of the workplace collective agreement espiring on 11. In September 2016, the pastrada June 30, 2019 with a 1.25% increase in each elimination of 2 paid holidays, thereby redac anxious to improve upon the old contract and laid off, the recent installation of new equipe and the moderate increase in consumer durabu company's future looks brighter than managem ch of the three contact years, plus the The number from 12 to 10. The union is the fact that no workers are currently on of w oment, the economic recovery of oil price Un consumer durable goods spending as signs that the ghter than management is willing to admit. 12. Economic Conditions: The Canadian COD Conditions: The economy grew in real terms by 1.1% in 2015 1.2% in 2016 and 3.0% in 2017. It is forecast to to reach 2.1% in 2018 and 1.5% in 2019. The BC provincial economy grow by 2.7% in 2015, 2015, 3.4% in 2016 and 3.0% in 2017. It is dropped o forecast to grow 2.5% in 2018 and in 2019. The Alberta provincial economy n 2018 and 3.0% in 2019. ut de 12 dropped 4.0% in 2015, dropped 2.39% in 2016 but increased by 3.9% in 2017. It is forecast to grow 2.1% in 2018 but drop 1.0% in 2019. 13. US economic growth rates were 2.0% for 2015, 1.4% for 2016 and 3.2% in 2017. It is forecast to grow 2.5% in 2018 and 2.1% in 2019. The US unemployment rate has significantly improved, dropping from between 8.0 and 9.0% to 5.8%. Further improvements are expected over the next year. The state of the US economy is always a concern for Canadians given Canada's close economic ties to the US. 14. There were 31,466 housing starts in BC in 2015, 41,840 for 2016 and 43,666 in 2017. Alberta, even with its slightly smaller population, had the following housing starts: 37,285 in 2015 but only 24,533 in 2016. In 2017, there were 29,457 housing starts. Following the serious flooding in Alberta in 2013, housing starts were abnormally high with many being replacement for damaged and destroyed houses in 2014 and 2015. 15. Canadian demand for consumer durable goods, including furniture, was moderate in the low-interest rate environment of the past decade until it dropped during the economic downtum of 2008-2009. Most of 2010-14 was not that good for consumer durables spending as there was only a 1.2% increase and 2015 - 2016 saw sales remain flat. 16. Industry observers forecast that Canadian home furniture sales, measured in constant dollars, expanded about 30% over the period from 2008 to 2018 (somewhat more than the 24% expected in the US). This fact is of interest to both Canadian and foreign furniture manufacturers. Trade liberalization (due to the North American Free Trade Agreement and the new European Trade Agreement) has resulted in growing import pressures in Canada, but at the same time has created new export opportunities for those companies that are able to adjust to the more competitive environment. Many US le suppliers are becoming even more active in Canada will result in some job losses in the Canadian furniture tower than 100-200 employers are expected to fare best i tes because of their ability to specialize and to respondre consumer demand. psy. Www with infot antively guy login t 17-Management spokespersons for the industry have expressed level of imports in Canada, currently over 40% of the domestic exceed exports. Many of these imports come from parts of the is levels are higher than the Canadian average. This is the case even furniture workers are generally better educated than their US.COM increasing imports from China. Less than 5% of imported furnit from Europe and this furniture is typically very high end, expensive express or to Comme as of the US where you e case eventos Cada ir US counterparts. These ed furniture traditionally d. expensive fun 18. The industry is fairly labour intensive, with labour costs account total sales for the industry. Technological improvements in productie increased operational flexibility, are seen as ways of raising prodotti academic experts continue to recommend that manufacturers invest and in improved employee relations in an attempt to remain competitive ur costs accounting for about 25% of ments in production, along with s of raising productivity. Some manufacturers invest in employee training 19. BC manufacturers will generally try to resist large cost increases in collective bargaining and will focus on increased productivity (an area in which BC manufest tend to lag behind those in other provinces due to generally less investment in new technology and less product innovation). On the trade union side, many unions are anxious to protect employees from the growing uncertainty of the ever-changing marketplace and from the resulting attempts by employers to increase the operational flexibility of their workplaces. 20. Inflation has been low both in BC and in the rest of Canada over the past several years. Inflation (as measured by the consumer price index) in BC was 2.3% in 2017, 1.9% in 2016, 2.1% in 2017 and 2.2% in 2018. Alberta inflation was 1.4% in 2017 in 2016, 2.5% in 2017 and 2.3% in 2018. Forecasts beyond a year or two make, but most economic observers do not expect any large increases in 18. Forecasts beyond a year or two are difficult to Note: Refer to the following sections of the 4th edition of the Lab textbook to understand why employers and unions take the position regarding various issues: duration of agreement (p. 154); contracting technological change (p. 171); and the relevant parts of Figure 7-10,- 168 to 170. This basic research will prepare you for engaging in nego other side. the 4th edition of the Labour Relaions ons take the positions they do 4); contracting out (p. 160); arts of Figure 7-10, 7-11 and 7-12 on pp. engaging in negotiations with the RELEVANT SECTIONS OR EXISTING ONS OF EXISTING COLLECTIVE AGREEMEN 1) Sestion XX-Existing Ware Rates as of June Classification Prince George** (43) (No. of workers) 1 - Labourer/Helper 2-Assembler/Operator I 3 - Assembler/Operator II 4 - Tradesman I 5-Tradesman II ates as of June 30, 2019: Vancos (85) (No. of workers) $15.70 (17) $16.50 (17) $17.10 (27) $19.90 (17) $20.70 (7) $15.45 (8) $16.25 (8) $16.85 (15) $19.65 (7) $20.45 (5) **There has always been a 25-centhour differential between the plants on all wage rates. 2) Section XII - Seniority "The Employer retains the right to determine who shall be promoted, transferred, laid off, or recalled, and shall consider the factor of seniority only if qualifications and ability are considered equal between employees." 3) Section XV - Insurance "The Employer shall pay the premiums for the medical, dental, and extended health care plans." 4) Section X -- Grievance Procedure "Step 1: Within 14 days of the occurrence of a difference between an employee and the Company, the employee shall discuss the difference with his/her immediate supervisor. Step 2: If the matter is not resolved then within 14 days of the completion of Step 1, the difference shall be submitted in writing to the supervisor. A grievance meeting shall be held and a written response shall be given within 14 days of the receipt of the grievance, Step 3: If the matter is not resolved then within 14 days of the completion of Step 2, the grievance shall be submitted in writing to the President of the Company, who shall reply in writing within 14 days of the receipt of the grievance. come in Step 3, it may, within 14 days matter to arbitration for resolution." Step 4: If the Union is not satis after receiving the President's of satisfied with the outcome in St resident's response, take the net to b opin furniture Foduck ltd. OPENING POSITIONS r don Proposals: A e Bargaining -Simulation for all job classifications of 5% 1) An across-the-board wage increase for all 2) A one year contract. 3) A return to 12 paid statutory holidays. 4) A new seniority section (XII) to read: "Layoffs, recalls, and transfers between plants recalls, and transfers between plants will be based on seniority. In the case of layoffs, employees will have 30 days to bump into another job (in either plant) for the employee is qualified if the position is held by another employee with less senior The Prince George wage rates to be increased to the level of those in Vancou 6) A prohibition on contracting out (outsourcing): "The Employer agrees to not contract out any work that could be done by the bargaining unit even if this provision requires that the company hire new cm COUVerlor be done by employees in company hire new employees." 7) A prohibition on loss of employment resulting from technological change: "No member of the bargaining unit shall be laid off or otherwise lose his/her employment with the Employer or suffer a reduction in his/her bours of work as a result of the use of new equipment or the introduction of other technological change." LUPIN FURNITURE PRODUCT) 8) Establishment of a joint union-management committee to investigate the feasibility of a developing new products and expanding into new markets, and to oversee increases in employee training. Employer Proposals: 1) A four year contract with annual wage increases of 1%, 1%, 1%, 1% for Tradesman I and II; and 0%, 0%, 0%, 0% for Assembler/Operator I and II; and 0%, 0%, 0%, 0% for Labourer/Helper. 2) The following addition to the existing seniority section (XII): "in the sole opinion of the Employer" to be added just before "qualitications and ability are considered equal between employees." 3) Amend Section X by replacing, in all relevant instances, "14 days" with 3 days