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Copy of Consolidated Metals Ltd and the Union

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by

Oxana Svergun, PhD

on 21 November 2013

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Transcript of Copy of Consolidated Metals Ltd and the Union

Consolidated Metals Ltd and the Union
Darshita Shah
Oxana Svergun
Nazeema Shiwmangal
Bhavisha Modi
Violet Schultz
Shaghayegh Jahandar
Adepero Adenusi
Devendra Persaud
Management
Oxana
:
Team lead, HR planning, management consulting, presentation
1.15+years’ HR Management experience
2.Taught courses on HR management and Leadership
3.Strong expertise in metallurgical sector
Violet:Labour Relations consultant, negotiator
1.Took courses in Strategic HR, Communications, Leadership Development
Shaghayegh :Administrative support, minutes, communications
1.Currently working as a manager, has experience in managing people
Devendra
:
Market research, support
1.Works for a property management office
2.Knowledgeable in managerial aspects of business
Union
Darshita
:
Coordinator, report preparation
1. open to understand the opposite
party’s perspective.
2.Have taken Leadership course.
Nazeema
:
Team leader, labour relation subject matter expert, negotiator
1.Research doing an administry collective agreements.
2.Negotiation experience.
Bhavisha
:
Negotiator
1.taken negotiations course.
2.Argue well.
Adepero : Admin support

1. Handles public speaking reasonably well
2. Has taken leadership course as well.

- The CML Company is at risk of losing its largest offshore oil contract.
- Two business lines: Fishing and Oil & Gas equipment
- Goal: To raise the production quotas by implementing new labour-saving machines
- The firm needs to control expenses including payroll costs
- Basic strategy: interest-based with some elements of distributive negotiation
Management Preparation
NEEDS AND PRIORITIES
1. To transfer to 3 shift schedule
2. Reduce the salary cost
3. Freezing current salary rates
4. Decreasing absenteeism


Strategy
1. To engage union representatives into interest-based negotiation for creating the effective environment for change management initiatives.
2. Not to disclose the staff reduction plan and to let the management team to come up with a proposal on introducing part-time positions.
3. To use a clever technique to draw the Union’s attention on performance issues, which were not of highest priority but helped us to gain more beneficial solutions for the high priority issues, such as severance pay and work schedule.
Union Preparation
NEEDS AND PRIORITIES
1. Wages
2. Job security
3. Vacation
4. Pension
5. Severance Pay

Strategy
1. Initial approach was to adopt Distributive bargaining tactics while being fully aware that interest-based bargaining would have to be utilized during the collective bargaining process.
2. To negotiate with Management with an opening position that there would be no concessions.
Negotiating
Process:
Two negotiation sessions;
initial proposals discussion
counter proposal discussion and final agreement

Next steps:
1. Implement new equipment and train employees
2. Reduce the headcount by transfers to part-time positions and Early Retirement Program
3. Implement 24/7 schedule
4.Maintain working relationships with union
Outcomes
1. Signed the new collective agreement effective Nov 13, 2013 by applying an interest based strategy.
2. Achieved significant surplus of $6,891,343
3.Savings generated from implementing three shifts and reducing overtime will be reinvested in benefits and wellness programs.

First proposal
3.1 : full time employees eight (8) hours per day and forty (40) hours per week, as required by established work schedule
3.2 : overtime rate of one and one-half times the normal hourly rate
3.3 : shift premium of $1.00 per hour for night shift worked and $ 1.20 per hour for evening shift worked, in case of working 5 or more evening/night shifts per week.
4.1 : lay off based on performance and seniority and employees with the best performance will be retained and retrained, if needed. The job can be secured on the basis of seniority when the qualifications of applicants are approximately equal.
4.2 : severance payment equal to two (2) weeks' base pay plus an additional one (1) week's pay per year of service with a limit of 25 weeks payment.
4.3 : “Regular part time employee” (RPT) means an employee in the regular service with 35 hours per week.
7.1: pay increase of $0.50 per hour twelve months after employment in their job grade, and every 12 months thereafter, until they reach the maximum rate of pay for their job grade.
8.2 : The Company to reimburse employees sixty percent (60%) of all costs incurred in respect of Section 8.1 above.
9.1 : Company to place 5 – 7.5 % of each employee's base annual salary into a retirement fund. The final cost incurred by the Company within the specified range will depend on the optional employee’s contribution to the pension plan.
10.1 : Remove the 5 weeks vacation for employees with more than 20 years experience
First proposal
3.3 : shift premium of $1.50 per hour worked for third shift
more than 28 hours will be considered a full time employee
4.3 : severance payment equal to eight (8) weeks’ base pay plus an additional one (1) week’s pay per year of service for senior employees who have provided with 20+ years of service
4.4 :At the time of layoff the management works with the union to consider options including Job sharing
5.1 : post vacancies or new job openings on designated bulletin boards for a minimum of 14 days
6.1 :Decisions will be made in an interest-based perspective.
Third party mediator chosen by both management and union to help reach a decision and the cost will be shared by both parties
7.1 : to remove pay grade maximum, 3% pay increase annually for all employees
8.1 : The health plan should cover employees with spouse and children
8.2 : After 10 years of service the company should reimburse employees hundred percent (100%) of all costs incurred in respect of Section 8.1 above
11.2 : In steps 1, 2 and 3 change the 10 days to 5 days

Lessons Learned
Interest strategy allows to reach the beneficial outcomes for company, Union and employees
HR plan helps to establish framework for successful bargaining
Collective Bargaining
Case Study
Group 9
Full transcript