1. Collective Bargaining Strategy Template
Company Bargaining Strategy with Hourly Employees of xxxxx
Summary of Details
The current labor agreement between ---- and the International Brotherhood of Teamsters, Local # , representing
seven (7) regular drivers at that location, expires at midnight on Monday, January 15th, 2002.
MECHANICS OF BARGAINING
A. Location and Timing
B. Composition of Bargaining Teams
C. Background of Union Relationship
C. Past Contracts
2. Collective Bargaining Strategy Template
E. Composition of the Unit
There are currently 7 drivers in West Chicago.
West Chicago as of 10/01
Drivers
Name
DOH
DOB
Wage
3. Collective Bargaining Strategy Template
F. Company’s Economic Position
______, serving primarily the greater XXXX area. In 2000, total sales at the branch were, and generated
an operating income of , or XX% margin. For 2001, total sales at the branch were , generating an
operating income of ---- or XXX% margin. West Chicago has seen significant market growth in the
last year.
G. Perceived Tenor of Bargaining Unit
Rumors from the shop floor express the belief that the Union will seek to replace a good portion of the
current language with language from an agreement more closely akin to freight line OTR trucking
companies or the National Master Freight Agreement, which is the type of group that Local 705
typically represents. The rejected wage increase, the Central States Pension fund, Profit-sharing,
sub-contracting of work, the hiring of casual help, the drug testing policy and the requirement to
wear uniforms are also probable issues of concern to the Union.
4. Collective Bargaining Strategy Template
BARGAINING OBJECTIVES
A. Wages & Pension Plan
B. Health and Welfare Benefits
Overall Strategy:
• “Me Too” clauses where possible for asterisked benefits below. When “Me Too” clauses are implemented,
clarify in the contract.
• Seek to transition employees into the ___ plan with standard company contributions
• Minimize health care cost increases for the Union plan as much as possible, if retained.
• Seek to obtain a contribution from the drivers, and allow union plan to be introduced,?
We are likely to face great difficulty with the union in achieving any sort of contribution for the health care
plan. If we can reach a relatively affordable economic settlement, hold the line on the 401-k, and avoid
the profit sharing and Central States pension issues, I would recommend that we be willing to compromise
on this issue. Our plan at this point is to come as close as possible. Current rates on this benefit plan are
$164.00 weekly, fully paid by the company.
5. Collective Bargaining Strategy Template
C. Retirement Plan
D. Language
We will submit proposals around the following language items: (insert proposals)
E. Duration
It is the company’s objective to negotiate a three-year agreement at this point. .
F. No Work Stoppage
It is the company’s objective to negotiate a new agreement without incurring a work stoppage.
6. Collective Bargaining Strategy Template
IMPLEMENTATION STRATEGIES
A. Pre-positioning
The preliminary discussions with the Union have not gone well. We will take an
aggressive stance if necessary,
B. Wages
Again, we believe expectations on money will be quite high. This is due to the
company’s previous discussions with the Union regarding a wage adjustment, and
also by the relatively high market demand for drivers that still exists, and by the
lower than usual wage increases that were granted at the last renewal. (2%
annually over three years)
7. Collective Bargaining Strategy Template
IMPLEMENTATION STRATEGY
C. Health and Welfare Plan
As mentioned earlier, we will be dealing with an expectation that the union will be attempting to
pass along the full cost of health care plan increases to the company. Our objective will be to
minimize this, either by achieving a contribution as i------, or by lowering the scope of the
plan design coverage to reduce the overall costs of the benefits. The goal of achieving any
employee contributions here will be difficult.
D. Language
In summary, it shall be the team’s primary objective to achieve a renewal agreement that
addresses the needs of the business within reasonable boundaries, given all the parameters
detailed in this report. If this should not prove possible, then we will reevaluate our position
mid-negotiation and either seriously consider some possible alternative . Granting any
component of the ----- success-sharing programs, and participation in the Central States
pension fund are both strike issues for the Company.
8. Collective Bargaining Analysis
Wage and benefit support can be obtained from the corporate
compensation and benefits design groups. It would be useful to schedule
pre-planning conferences with both groups prior to the final development
of your proposals. It would also be my recommendation to get as much
input from them as possible regarding integration of ----- into enterprise
pay and benefit plans for union employees.
For legal and practical reasons, it is highly recommended that
management prepare and rehearse its arguments and justification for
refusing to grant any type of gain-sharing or profit sharing programs. An
outline of these arguments follows: