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Human Resources Management (HRM)

Home Uncategorized Human Resources Management (HRM)

By Cynthia Wambui 0 May 16, 2021 UNCATEGORIZED

Rikki

A_r_e_ _W_e_ _“I_n_ _t_h_e_ _Z_o_n_e_”?_

Rikki Wang was the HR generalist serving three grocery outlets in a major metropolitan centre in western Canada. She
graduated from the HR management program at MacEwan University and had secured the present job three weeks
after graduation. The three stores were unionized with a total of 44 employees in one UFCW bargaining unit among the
three sites. Wang carried responsibility for labour relations and health and safety for the regional chain of stores. Her
other colleague picked up responsibilities for all remaining HR duties.

The union had served notice to bargain last month for a renewal of the existing contract expiring on June 30. Rikki had
already begun her preparatory work by talking to store management about issues with the current contract and other
operational matters that would likely be key contributors to the success of the grocery chain in the next five years. She
had also done market research on compensation and cost-of-living allowance trends both regionally and at the
provincial level, as well as speaking to the corporate lawyer who provided HR advice to her from time to time. A
meeting was planned later next week with the general manager, finance supervisor, legal counsel and heads of the
receiving/stores, cashiers and produce sections to discuss developing bargaining strategies for the upcoming
bargaining meetings with the UFCW team.

Nikki had a good relationship with her union local president and chief steward. There was going to be a new UFCW
business agent involved in the upcoming bargain round, who was reported to be “much tougher” than the recently
retired head office union rep Nikki had dealt with since starting her job. Due to the competitive nature of the retail
grocery industry and inroads made by the emerging web-based food-to-your-door suppliers, Nikki’s company had
tended to set terms and conditions for work of the bargaining unit at or slightly below the competition. Price pressures
from much larger competitors also played a factor in preparing for the upcoming bargaining round with the union.
From her consultations, Nikki was in the midst of preparing bargaining strategy on three key issues that surfaced from
her consultations: call-in pay; seniority links to vacation entitlements; and cost-of-living allowances. Her research had
revealed the following on these key issues: • Call-in pay: the grocery chain currently follows provincial employment
standards requirements—employees must be paid for a minimum of three hours if they’re asked to go to work or
attend training, even if it’s for a period of less than three hours, unless it’s because the employee is unable to continue
working. Regional competitors also adhere to provincial ESA; one non-union store pays a four-hour call-in pay
allowance. • Seniority links to vacation entitlements: the grocery chain currently follows provincial employment
standards requirements—less than one year of service (union contract allows for 4% proration); one to five years at
ESA requirement (two weeks) and greater than five years (three weeks). Seniority-driven entitlements were discussed
in the last round of bargaining but were withdrawn by the union in lieu of wage rate adjustments. Many of the
bargaining unit members (67%) have eight or more years of service. Survey evidence shows other unionized food
outlets (including those with UFCW locals) factor in seniority to vacation entitlements starting after three years of
service. • Cost of living (percentage)—regional and provincial forecasts for anticipated contract period: Year 1 (2.50);
Year 2 (2.75); Year 3 (3.2).

Questions

Question 1. Work out estimated bargaining zone levels (initial, target and resistance) anticipated from union
negotiators for each of these three contract items.

Call-in pay:

Initial zone: Union negotiators initial bargaining zone for call-in pay will be 4.5 hours. Union will try to negotiate this to
have enough room to bargain. A competitive market and emerging web-based food delivery services making in roads
in the market, union will use this fact to put forward 4-hour call-in pay to make a point to stay in the game.

Target: The target bargaining zone for call-in pay that union will try to negotiate will be 4 hours. The current
competitive market conditions will be kept in the play while bargaining the call-in pay target zone. Union is aware of
pricing pressures from other non-union competitors and will try to factor that in while negotiating.

Resistance: Resistant point for union will be 3.5 hours for call-in pay. This is close to the minimum ESA standard and
anything below this will be the breaking point of negotiation. Union will not agree to anything below this level for call-in
pay.

Seniority links to vacation entitlements:

Initial: Union will add the vacation entitlements to the collective bargaining based on seniority. This was not concluded
in the last contract. The initial zone for union on seniority links will add a week for each year of service after 3 years.
The current ESA standard provides 2 weeks of vacation for service between 1 to 5 years and 3 weeks for greater than
5 years. Union will start with a week for each year after 3 years.
Target: Target for union is to include the seniority-based vacation entitlements in this contract and to add a week for
each year of service up to max of 6 weeks paid as earned vacation after 3 years.

Resistance: Union will negotiate this for one-week vacation on each year of service. The resistance for union will be
anything less that 3 days added for each year on the current provincial employment standards.

Cost of living:

Initial: Union will bargain for 1.5% + regional and provincial forecasts for year 1, 2 and 3. Looking at the other
competitive factors and inflation indexing, Union will negotiate 4% for year one, 4.25% for year two and 4.7% for year
three. The buffer will help negotiate a very competitive cost of living percentage for union employees.

Target: The target for union on cost of living will be to negotiate for + 1% on the regional and provincial forecast. That
is 3.5% for year one, 3.75% for year two and 4.2% for year three. These are the targets union will look to bargain and
have enough negotiating buffer when starting with initial zone.

Resistance: The resistance for union on the cost of living is .5% on the current forecast. That is 3% for year one, 3.25%
for year two and 3.7% for year three. These are based on the current forecasts and what union believes in terms of
cost of living for the next three years. Anything below this will be the breaking point of negotiation and union will not
accept it resulting in suspending work and halting dialog with management unless management would like to be
review it further.

Question 2. Work out estimated bargaining zone levels (initial, target and resistance) to be developed by the employer
in this case?

Call-in pay:

Initial zone: Union negotiators initial bargaining zone for call-in pay will be 4.5 hours. Union will try to negotiate this to
have enough room to bargain. A competitive market and emerging web-based food delivery services making in roads
in the market, union will use this fact to put forward 4-hour call-in pay to make a point to stay in the game.

Target: The target bargaining zone for call-in pay that union will try to negotiate will be 4 hours. The current
competitive market conditions will be kept in the play while bargaining the call-in pay target zone. Union is aware of
pricing pressures from other non-union competitors and will try to factor that in while negotiating.

Resistance: Resistant point for union will be 3.5 hours for call-in pay. This is close to the minimum ESA standard and
anything below this will be the breaking point of negotiation. Union will not agree to anything below this level for call-in
pay.

Seniority links to vacation entitlements:

Initial: Union will add the vacation entitlements to the collective bargaining based on seniority. This was not concluded
in the last contract. The initial zone for union on seniority links will add a week for each year of service after 3 years.
The current ESA standard provides 2 weeks of vacation for service between 1 to 5 years and 3 weeks for greater than
5 years. Union will start with a week for each year after 3 years.

Target: Target for union is to include the seniority-based vacation entitlements in this contract and to add a week for
each year of service up to max of 6 weeks paid as earned vacation after 3 years

Resistance: Union will negotiate this for one-week vacation on each year of service. The resistance for union will be
anything less that 3 days added for each year on the current provincial employment standards.

Cost of living:

Initial: Union will bargain for 1.5% + regional and provincial forecasts for year 1, 2 and 3. Looking at the other
competitive factors and inflation indexing, Union will negotiate 4% for year one, 4.25% for year two and 4.7% for year
three. The buffer will help negotiate a very competitive cost of living percentage for union employees.

Target: The target for union on cost of living will be to negotiate for + 1% on the regional and provincial forecast. That
is 3.5% for year one, 3.75% for year two and 4.2% for year three. These are the targets union will look to bargain and
have enough negotiating buffer when starting with initial zone.

1. Resistance: The resistance for union on the cost of living is .5% on the current forecast. That is 3% for year
one, 3.25% for year two and 3.7% for year three. These are based on the current forecasts and what union
believes in terms of cost of living for the next three years. Anything below this will be the breaking point of
negotiation and union will not accept it resulting in suspending work and halting dialog with management
unless management would like to be review it further.

Question 3. On each of these issues, how would you answer Nikki’s question, “Are we ‘in the zone’?”

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