STRIKING FOR

BENEFITS-CASE
ANALYSIS
Submitted by,
Kannan R
Merrin Syra Mathew
Shivakumar
Zubair Nazir

Contents
TITLE

PAGE NUMBER

FACTS

FIVE SUGGESTIONS

STORE OWNERS STANDPOINT

DOWNSIDES FOR THE UNION

Facts
70,000 striking grocery workers in California.
Existing employees doesnt want to pay towards their health
insurance.
Want to pay $10 as co-pay for a doctor visit.
$4.00/hour benefits cost for current employees.
Skyrocketing health care costs were undermining their
competitiveness.
$1.35/ hour benefits only for new employees.
Minimum $10 per week should be contributed by new employees
health insurance.
Union would have two classes of employees.
Employees don't want to budge.

Five creative ways to reduce benefits

costs without having employees pay
more.
1.
2.
3.
4.
5.

Flextime for new employees.

Reduce various benefits like mental health, travelling.
Switch to high deductible health plan + HAS
Wellness programs
Long-Term Care

What are the downsides of having two

classes of employees from the store
owners standpoint?
Downsides

Entitled employees aggressive

Resentful employees aggressive
Warring employees
Morale is a critical problem. Anytime there are two classes, jealousy and
resentment increase and morale decreases. Also, administration costs
increase.

Suggestions:
Pay the lower benefit employees slightly more.
5

What are the downsides for the union with

having two classes of employees?
Suggestions to deal with this?
Downsides
Two warring factions of employees that must be treated in different
ways.
The low paid employees may feel the union is not work hard for them.
The lower class employees will feel that they were sold out by the
union and may loose faith in the value of the union. Initially the union
will be safe because of the larger number of employees in the better
group, but eventually that will change.

Suggestions:
Reduce union dues for new employees and increase union visibility to
make sure there is still support.