Reference no: EM133801581
Case Study "Impasse in Negotiations"
Decision:
The Board determined that in this instance, a true impasse had been reached because it appeared that any further negotiations were futile. The parties were simply unable to resolve the fundamental issues and any agreements on other issues would not have resolved the impasse. The record shows that the Company struggled with the health insurance plans, and made it clear from the inception of the negotiations that medical insurance would be a deciding factor. It invited the Union at the outset to participate and to get involved, providing the Union with all relevant information, such as cost comparisons and charts showing the insurance coverage for each employee and more. The Company invited representatives from a new insurance carrier under consideration to explain the benefits. Indeed, the Company had included the Union from the outset in its selection process of other insurance companies to provide the employees with adequate, but lower cost health benefits. The Union was not impressed; it rejected the Company's offer to accept the new plan, even though the benefits were substantially the same under either plan. Another point of contention from the first meeting was the Union's insistence that the "right to change" language, which had been in all prior contracts between the parties, be deleted. This proviso had been part of the section entitled "Medical-Hospital-Physician," for many years and provided in substance that the Company had the right to change insurance carriers and the means of providing benefits, including the level of benefits, without causing a substantial lowering of benefits and without prior notice to the Union.
The Board found that the evidence did not indicate that the Company declared the impasse prematurely and found that the unilateral implementation of the Federated Plan did not violate the Act. The Board pointed out that only after the Union had repeatedly rejected the Company's proposal to change insurance plans from United Health Care to the Federated Plan #5677, did the Company implement the plan based on the assumption that the negotiations had reached an impasse.
Answer the following questions:
1. Would the Company's willingness to share financial information on the health care plans with the Union help the Board decide on whether there was an impasse? Explain.
2. What other options were available to the parties to break the deadlock in these negotiations?
3. What would be the effect on the bargaining relationship between these two parties if the Board finds that a legal impasse had occurred? If the Board finds that a legal impasse has not occurred?