2.

Target Point

● The Employer maintains the right to contract out the work done by the bargaining unit. The
Employer will inform the Union of significant work that needs to be performed by
contracting out on a monthly basis through a Labour and Management Meeting.
● During the meeting, the Employer will afford the Union an opportunity to discuss the
Employer’s plans, including the location, estimated duration, type of contract work, and
the company’s reasons for contracting- out the work.

3. Resistance Point

● The Union's request to perform the contract work in-house will be reconsidered by the
Employer with the condition that the existing employees in the bargaining unit are qualified
and capable of performing the work cost-effectively and within the required time frame.
● Unless there is an emergency, the Employer will notify the Union 120 days in advance of
work to be completed in terms of the scope, nature, and alternatives to contracting out the
work.
● The main objective for both the Employer and the Union should be to reduce contract work
by using the bargaining unit workforce.
● To look into alternatives to a contract, or to review and possibly bring back work that has
already been outsourced, a committee might be formed.

4. Rationale

Our opening position supports our management’s bargaining strategy and is based on the
rationale that the meetings will be held to share information which is necessary to the work that
is being planned for the potential of contracting out1. Our management is hoping to get any views
from the Union’s perspective within 15 days before finalize the contracting-out plans2. We’ll
maintain the condition of the existing collective agreement Article 27 by providing the Union with
120 days’ notice if there will be a layoff of employees in the bargaining unit resulting from
contracting out. We would maintain the right to contract out the work done by the bargaining unit
without any restriction and prohibition.

Our target position is based on the rationale that our management still needs to keep the right to
contract-out without any prevention. At the same time, we would like to support the win-win
strategy when dealing with the Union. We’ll introduce the arrangement of monthly Labour and

1
(Casino Employer/ Caesars Windsor and Unifor. Effective from April 4, 2018 – April 3, 2021,
https://negotech.labour.gc.ca/eng/agreements/10/1009008a.pdf )
2
(Casino Employer/ Caesars Windsor and Unifor. Effective from April 4, 2018 – April 3, 2021,
https://negotech.labour.gc.ca/eng/agreements/10/1009008a.pdf )
Management Meeting to discuss further3. This step is crucial to get an agreement that will be
settled because both management and the union must reach an agreement where costs do not
affect any party. During the meeting, the location, estimated duration, type of contract work, and
the company’s reasons for contracting the work will be shared with the Union in an open and
detailed manner4. We’ll clearly inform the Union why we need to contracting-out the maintenance
and security departments.

Our reference position is based on the idea that the parties' primary goal should be to use the
bargaining unit's workforce to reduce contract work5. The Employer will consider the Union’s
requests to perform the work in house, but with the condition to cut down expenses. A contracting-
out committee could be established to discuss alternatives to a contract, or to review the utilization
of the work and possibly bring back work that has already been outsourced. The existing collective
agreement Article 27 that provides the Union with 120 days’ notice - if there will be a layoff of
employees in the bargaining unit resulting from contracting out will be maintained by the
Employer.

5. Cost Impact Analysis

Contracting-out appears attractive to many employers in turbulent times because of its promises
of flexibility and cost savings. The Provincial Lottery Corporation finds it appealing to outsource
maintenance and security departments in line with its corporate strategy of 'core-periphery’ and
cost reduction (Sharpe 1997). At the heart of this strategy, core employees will be subject to high-
involvement work practices, while peripheral employees will be subject to low-involvement work
practices.

Costs, without a doubt, play a significant role in contracting-out decisions. Outsourcing will take
place only when the costs of the "inhouse" production exceed the sum of the costs of the outside
service contractor (Sclar, 2000).

Labor costs, particularly wages and benefits, can be higher in unionised firms than in outsourcing
companies. (Rees and Fielder, 1992). Other specific goals for our management to appeal in
contracting-out is to improve the quality of maintenance, provide excellent security service to our
customers and the cost advantage of quality of the service provided by contractors(Perry, 1997).

Deloitte’s recent Global Outsourcing survey proved our strategy that, despite the pandemic, cost
reduction remains the main objective of companies even globally who chose contracting-out
(Deloitte, 2021). As a result, our management will choose to outsource primarily to improve

3
(Casino Employer/ Caesars Windsor and Unifor. Effective from April 4, 2018 – April 3, 2021,
https://negotech.labour.gc.ca/eng/agreements/10/1009008a.pdf )
4
(Non-casino employer/ Arcelormittal Long Products Canada Hamilton East and Local Union No.5328 United Steelworkers.
Effective from August 1st, 2021- May 31st, 202. https://usw5328.com/collective-agreement )
5
(Non-casino employer/Paladin Security Group Limited and United Steelworkers. Effective from July 1, 2014 to June 20,
2018.https://sp.ltc.gov.on.ca/sites/mol/drs/ca/Administrative%20and%20Waste%20Management/561-39258-18%20(869-0129-
18).pdf )
efficiency, availability of expertise, and flexibility. Also, our management would like to free up
employees’ time for other tasks. We want to increase available resources and reduce operating
costs.

III. Wages
Wages are a type of monetary remuneration paid to employees by their employers for work done
for the business.
All of the hourly wage rates for the various classifications of employees working at the
Diamond Casino are contained in Schedule A of the collective agreement and will be
considered for negotiation on the new collective agreement.

The Diamond Casino's management would like to shed some light on the casino's current
situation and financial standing. The Organization had a difficult time in the year 2020 due to the
Covid 19 pandemic, which severely impacted the Casino's income. The efforts of the employees
that stood behind the firm are still appreciated by management. In this regard, where the Union
has been urging to negotiate a new collective agreement over the expired collective agreement
for wages, the Management proposes to increase wages at a rate of 1.5 percent for the first year
of the new collective agreement and looks forward to negotiating a 2.5 percent raise for the
Casino's hardworking employees in the following years.

Opening Position

1. Payment Period: Wages will be paid bi-weekly on Fridays during working hours via
direct deposit. If a paid holiday falls on a Friday payday, the payday is moved to the
following week's Thursday. Pay stubs will be distributed on the fourth Thursday of each
pay period.

2. Increase in Wages: Owing to the financial standing and heavy losses incurred in the past
financial year, the Management proposes to provide a top-up of 2% to the employees for the 1st
Year of the new collective agreement and eventually taking it up to 2.5% for the next year of the
new collective agreement.

6 http://negotech.labour.gc.ca/eng/agreements/10/1009007a.pdf
7https://sp.ltc.gov.on.ca/sites/mol/drs/ca/Arts%20Entertainment%20and%20Recreation/713-84784-16.pdf
3. Reporting Wage: a) Any employee who reports for work on their regular scheduled shift and
has not been appropriately notified not to report to work shall be paid for a minimum of four (4)
hours at the applicable hourly rate.

b) Any employee who reports for a scheduled meeting or training but has not been appropriately
warned not to report for the meeting or training will be paid for the length of the scheduled meeting
or training up to a maximum of four (4) hours at the applicable hourly rate. The management
intends to continue reporting pay in accordance with the ESA for the first year.

4. Call in Pay:
a) When an employee is called in for work, he or she is entitled to be paid for the number of
hours worked at the position's wage rate, and if the employee is called in on short notice, he or
she is entitled to at least 5 hours of salary or for the time worked, whichever is greater.
b) An employee who is called to work outside of his regular working hours will be paid a top-up
wage of $1.5 over the position's regular wage rate; the employee will carry a pager during this
time if necessary by the employer.

Target Point

While negotiating a new collective agreement with the union, management intends to
focus on the following stated negotiations:

1. Payment Period: Wages will be paid bi-weekly on Fridays during working hours via
direct deposit. If a paid holiday falls on a Friday payday, the payday is moved to the
following week's Thursday. Pay stubs will be distributed on the fourth Thursday of each
pay period.

If a pay adjustment is required, the Company will make every effort to ensure payment
as follows:

a) Pay shortfalls of up to five (5) hours will be compensated on the following paycheque.

b) Pay shortages of more than five (5) hours shall be addressed within three (3)
business days of the Supervisor identifying the shortage.

8 https://sp.ltc.gov.on.ca/sites/mol/drs/ca/Arts%20Entertainment%20and%20Recreation/713-84784-
16.pdf

c) Pay overages of fewer than five (5) hours shall be rectified on the following
paycheque.