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Individual Assignment02
Individual Assignment 2

Negotiations

The Maple Grove Case

Two years ago the United Steel Workers organized the 400 workers at Maple Grove Foods, a food processing company in Western Ontario. Previously the company had been in operation for over thirty years as a non-union shop. Management had tried to convince employees not to join the union. The employees were paid quite well, in the view of the company.

However, after a lengthy campaign the union organizing drive was successful. Jim Byer was hired as the company spokesperson to negotiate the first agreement between the parties and he and his team worked with Ralph Goodall, the chief spokesperson and business agent for the union. Negotiations did not go well. Both parties felt the other was not being responsive to concerns raised and after months of frustration the union applied to the Labour Board for first contract arbitration.

The arbitrator dictated the terms of the first agreement and neither the company nor the union was happy with the settlement. The term of the dictated agreement was two years and it was now time for the parties to meet and discuss the renewal of the collective agreement.

The terms of the first collective agreement dictated by the arbitrator were:
Average Hourly Wage Rate: $25.00 per hour.
Wage Impacted Benefits: 15% of AHWR
Non-Wage Impacted Benefits 10% of AHWR

Jim Byer received the final set of union proposals in the mail this morning from Ralph Goodall and Ralph requested a meeting to start negotiations next week. The union proposals were as follows:

Union Proposals

1. General wage increase to all job classifications - 20%

2. Term - 1 year agreement

3. Add new: Contracting Out Clause: The company will not contract out any work currently done by members of the bargaining unit without the written consent of the union. Under no circumstances will employees in the bargaining unit be laid off as a result of contracting out work.

4. Add new: Technological

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