Steer negotiations between labor and management

Assignment Help Project Management
Reference no: EM133364996

As a manager with years of experience in negotiations, you were involved in many different types of conflicts. There was one case where a worker argued he should be allowed to smoke his (legally prescribed) marijuana at his desk. Another time, someone asked you to mediate two executives who were having a strategic disagreement-one thought the company should invest in tulip futures, while the other thought pork bellies were the answer. Even with this experience, you have not seen a case like the one going on at a Mott's apple juice factory where you were called in for consultation.

Mott's, a division of Dr. Pepper Snapple Group, employs 305 people at its juice factory in Williamson, N.Y., near Rochester. All 305 employees were on strike for more than three months. They are protesting the fact the company wants to make severe cuts in pay and benefits-a reduction of wages by $1.50 (about $3,000 per year), a pension freeze, a reduction in 401K contributions, and a decrease in the health insurance subsidy.

On the surface, these cuts seem to make some business sense because companies all over the world are struggling. What is so unusual in this case is the Dr. Pepper Snapple Group is more profitable than it ever has been. In the last year, its net income was $550 million, a dramatic improvement from the previous year, when it lost $312 million. Because of this success, employees are accusing the company of greed. Stuart Applebaum, the president of the factory workers' union, says "[Dr. Pepper Snapple doesn't] even show the respect to lie to us. They just came in and said, 'We have no financial need for this, but we just want it anyway because we figure we can get away with it.'"

The company, meanwhile, defends the pay and benefits cut by arguing its current labor costs are considerably higher than other local companies. The average pay at the Mott's plant is $21, whereas other factories and transportation companies in the area pay closer to $14. In a public statement, the company defends the move, saying in part, "As a public company, Dr. Pepper Snapple Group has a fiduciary responsibility to operate in the best interests of all its constituents recognizing a profitable business attracts investment, generates jobs, and builds communities."

You are assigned to a task force with representatives from management and labor who are charged with resolving the crisis. After a review of the files, you realize this is a critical case; if the employees lose, other companies might be motivated to take similar actions and cut labor costs (and increase profits) even when they are not struggling financially.

Questions

1. How could you help steer negotiations between labor and management, so the conflict between them is healthy and productive? Is it even possible?

2. Is the company justified in trying to cut costs even when it has made a huge profit? Are the employees justified in not working to protest what they perceive as unfair cuts?

3. If you were the negotiator, how would you proceed?

Reference no: EM133364996

Questions Cloud

How did the global pandemic that began in early 2020 affect : How did the Global Pandemic that began in early 2020 affect demand and supply factors for your organisation's products and services?
Explain how firms that compete in the four different market : Explain how firms that compete in the four different market structures determine profitability. Use specific examples from the simulations or the textbook
Discuss the likely effects on labor force participation : Draw the current daily budget constraint (assume a wage that is net of the hourly child-care costs) for a single mother and then draw in the new constraint.
Analysis of project management leadership styles : What are the salient considerations in the selection of an appropriate Project Manager for IT driven transformational project?
Steer negotiations between labor and management : How could you help steer negotiations between labor and management, so the conflict between them is healthy and productive? Is it even possible?
What will be the total output of the industry and the price : Assume that in equilibrium before trade, there are 20 firms, each firm producing 20 units What will be the total output of the industry and the price of output?
Demonstrate the use of all of your constructors : Demonstrate the use of all of your constructors i.e. use each constructor in the class to create a QuestionOne object
How many total meals are cooked by co-op members : How many total meals are cooked by co-op members? How many total parties are thrown by the co-op? Justify your answer mathematically.
Recall some of your more interesting projects : Recall some of your more interesting projects and think of times when there was a misalignment between what was formally presented as the set of requirements

Reviews

Write a Review

Project Management Questions & Answers

  Create a project schedule and align resources

Create a project schedule and align resources, Analyze project schedule and resource allocation

  Managerial roles and gap analysis

Write a report on Managerial Roles and Gap Analysis

  Questionaire on project management

Questionaire on Project Management

  Describe the market growth rate for product

Describe the market growth rate for product and service.

  Prepare a work plan and project schedule - gantt chart

Design an online system for the human resources department to manage available job positions.

  Project risk management approach

How does a project risk management approach pro-vide an early warning signal for impending problems or issues

  Black-scholes options pricing model

Calculate the payoff and the profits for investments

  Describe the features or characteristics of product

Describe the features or characteristics of your product or service.

  Write paper on inventory management system

Write paper on Inventory Management System.

  Analysis of the overall project risk

Analysis of the overall project risk

  Investment and performance analysis

Evaluate the usefulness of ROCE

  Distribution strategy and project management

Distribution strategy and project management

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd