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Consolidated Metals Ltd vs United Metal Workers of Canada

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Sarah Santos

on 24 February 2014

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Transcript of Consolidated Metals Ltd vs United Metal Workers of Canada

Integrative Bargaining:
Produces mutual gain
Win-win bargaining
Consolidated Metals Ltd vs United Metal Workers of Canada
Purpose and Methods
Union Representatives for
United Metal Workers of Canada
Consolidated Metals Ltd.
Negotiation Process
Management Representatives for Consolidated Metals Ltd
Eva Yarmo-Arriaga: Lead Negotiator
Previous work experience with bargaining, collective agreements and knowledge of payroll costs

Alexandria Aitchison: Second Speaker
Well-rounded understanding of the rationale behind decisions

Anjan Ravi:
Played integral part of the decision making and research process
Key player in developing strategies and providing insight about employment law

Shereen Din: Lead Negotiator
Past negotiations experience

Sarah Santos: Second Speaker
Communication and problem solving skills useful in achieving the union's ultimate goal

Amanda Buczkowski:
Research skills useful in preparing for the collective bargaining process


- To negotiate a new collective - Integrative bargaining: each
agreement between Consolidated side understands the needs of
Metals Ltd and the United Metal other and presents realistic
Workers of Canada options
- Beneficial and fair to both parties - Problem solving
- Each group would trade
something of lesser value to gain
in areas which were deemed
more important

United Metal Workers of Canada
Union Priorities
Job Security
Retirement Fund
Union's Strategy
Distributive Bargaining:
Competitive approach
When two parties compete over the distribution of some fixed resource
Initial Proposal
1. All employees shall receive pay increases of 5% per hour, 6 months after employment in their job. Every job class range shall be increased by $5.00. An increase of shift premium of $2.00 for the overnight shift (12:00am- 8:00am)
2. Increase health and welfare plan to 100% coverage
3. Increase pension opt option up to 10%
4. Increase paid vacation by 14 days across the board
5. Decrease the number of days to investigate the grievance from 10 to 5 days
6. Add a first step: Verbal warning and increase the second step to two written warnings.
New Machinery
Management Proposal:

New machinery and 24-hr operation, with three 8-hr shifts.
Union Grievance:
Requires employees to work extra shifts
Suggested Change:

Increase vacation time
Agreement Reached:

Machinery will increase production by improving efficiency.
Employee work will not increase.

Benefit Plans
Union Proposal:

Increase employer contribution to 100%
Management Grievance:
Current plans are costly
Company-paid flexible plans
Provides savings for both parties
Agreement Reached:
Company-paid flexible plans
100% Basic Accidental
Death& Dismemberment
100% Basic Life Insurance
$1000 Flexible Funds
Pension & Wages
Union Proposal:
Increase wages
increase retirement fund from 7.5% to 10%
Management Grievance:

Cannot afford payroll increase
Current wages above industry average

Revisit negotiations on retirement fund and wages in 12 months. Potential employee profit-sharing plan; 4.5% of pay (contingent minimum 8% profit increase)
Agreement Reached:

Revisit both in 12 months (contingency)

Union Proposal 1:
Add verbal warning
Increase second step
to 2 written warnings
Management Grievance:
Diminishes effectiveness
Suggested Change:
Add verbal warning
OR written warning
Agreement Reached:

Increase second step
to 2 written warnings

Job Security
Union Proposal:
No layoffs or new hires
Agreement Reached:

No layoffs or new hires
Grievance Steps
Union Proposal:

Decrease investigation from 10 to 5 days
Management Grievance:
Current investigation length necessary
for effective human resource management.
Thorough investigations benefit employees.
Union Suggested Change:

Shorten process by combining step 1 & 2
Agreement Reached:
Combine step 1 & 2
Union Proposal:

14- day increase in paid vacation
Management Grievance:

Unable to provide increase
Suggested Change:

5 paid annual sick days per employee (medical documentation required
after 3 consecutive days)
Agreement Reached:

5 paid annual sick days per employee
(medical documentation required
after 3 consecutive days)
Union Proposal 2:
Expunge disciplinary documentation
after 12 months with no disciplinary action
Management Grievance:
Insufficient time to monitor improvement
Suggested Change:

Expunge after 18 months with
no disciplinary action
Agreement Reached:
Expunge documentation after
18 months with no disciplinary action
Company to purchase flexible group benefits plan.
Provide training

Company to purchase & install new machines.
Conduct health & safety assessment
Provide training

Employees lowest on seniority list move to 12-8am shift

Pension & Compensation:
Revisit negotiation in 12 months
(contingent on minimum of 8% profit increase)
Next Steps
Strategy 2
- Revisit hiring, firing, and pension after 12 months
- Revised benefit package
- Changes in progressive discipline
- Sick days added
- Profit sharing bonus of 4.5% contingent on company profits exceeding 8% in the next 12 months
Evaluation of Process:
- Integrative bargaining proved beneficial for both sides
- Company and Union were able to work together to develop a collective agreement that benefits both sides while saving the company money
Estimated Cost of Final Agreement:
- The new cost of Basic Life Insurance and Basic Accident Death and Dismemberment(AD&D) to be incurred wholly by the employer is $1.57 per $10,000 of salary earned by the employee for the cost of Basic Life Insurance and $0.17 for basic AD&D
- Revised benefits allow CML to save
- Cost of EPSP: $783,900
Management Strategy
Integrative Bargaining:
Understanding Interest of the union
Collaborate to find a solution
Satisfy needs of both Union and Management
Priorities for
No Increase in payroll
Renewal of offshore oil contract
Reducing employees costs for benefits
Maintain competitive wage
Maintain strong relation with the union
Ground Rules
Bargaining in good faith
Restrain from swearing
Break every hour
Initial Proposal
1. Alternative Strategy 1: Purchase new machinery.
2. Revisit wages and Pension after 12 months of effective date
3. Layoff and hiring freeze will be put into place for 12 months after effective date
Ground Rules
Counter offers can only be accepted or declined after a discussion amongst the group has been made.
Listen to whoever is speaking
Do not interrupt, and wait for them to finish first
Treat everyone with respect.
15 minute break after every hour worked.

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