Instructions For Mock Arbitration: The Rules Set Forth In Th ✓ Solved

Instructions For Mock Arbitrationthe Rules Set Forth In This Paper Out

The rules set forth in this paper outline the manner of negotiations between the CAC Company and the International Brotherhood of Electrical Workers (IBEW) Local 3. These rules have been jointly prepared and both parties have agreed to arbitrate the labor contract after face-to-face negotiations have stalled.

List rules and their method of application:

Part I – You will be given: a) the demographics of the employees working for CAC Company, including pay rates, length of service, titles, and age; b) the current contract which will expire on the last day of this month; c) the demands of labor and the issues that will be part of the arbitration; d) the items and issues that the company is willing to take to arbitration; e) the items the company will not consider. You will be responsible to detail current total cost of labor, including benefits, paid time off, and wages, under the existing contract, and project the total cost of a new contract if labor gets all demands, as well as the cost if the company is successful in arbitration.

Part II – You will be the IBEW Local 3. You will:

  • give specific reasons why each contract demand brought to the table is non-negotiable (itemized demands will be provided);

Part III – You will be the CAC Company. You will:

  • provide specific reasons why CAC cannot consider certain contract demands (information from the employer will be provided);

Part IV – You are the Arbiter. You will:

  • provide a detailed report, giving your decision and the reasons for granting or denying the demands of labor or the company during the arbitration process.

Sample Paper For Above instruction

The arbitration process between CAC Company and IBEW Local 3 exemplifies the complex negotiation strategies pivotal in resolving labor disputes. Analyzing this dispute involves understanding the demographics of the workforce, contractual obligations, demands, and the positions of both parties, culminating in a reasoned arbitration decision.

Part I: Company Demographics and Current Contract

The workforce at CAC comprises a diverse range of roles, including electricians, clerical staff, administrators, and warehouse personnel, with varying pay rates and lengths of service. For instance, electricians range from Apprentice levels earning from $13.28 to $15.00 per hour with one to two years of experience, to Electrician I and II roles earning upwards of $24.00 to $31.00 per hour with five to twelve years of experience. Support staff such as administrative clerks and office administrators earn between $10.50 and $25.00 per hour. The current union contract, effective until the last day of this month, provides stepped vacation benefits, sick leave, and health insurance with the company covering 55% of medical and dental costs through HMO and DMO plans. The work schedule spans six days a week, with specific shifts for warehouse, field, and office employees.

Part I: Current Labor Costs and Projected Expenses

Under the existing contract, total labor costs encompass wages, benefits, and paid time off. Calculations based on employee demographics estimate total current costs, which serve as a baseline. If labor demands are fully granted, estimates project increased wages, enhanced benefits such as higher employer contribution percentages to health plans (up to 70%), tuition reimbursement, and expanded leave policies, resulting in higher overall labor costs. Conversely, successful arbitration that limits demands or maintains current benefits would contain cost increases.

Part I: Labor Demands and Company Position

The labor union demands include modified vacation policies, increased sick leave and Personal Time Off (PTO), expanded health benefits, cooperative work schedule adjustments, and higher employer benefit contributions. For example, union requests seek four weeks of vacation after seven years and sick days accumulated monthly, alongside a cafeteria-style health plan. They also propose a paid personal time policy and enhanced insurance coverage, including vision and life insurance, along with tuition reimbursement—aiming to improve employee welfare and morale.

The company’s position is defensive regarding these demands, citing financial constraints and existing contractual agreements. For vacation, the company is willing to consider only incremental increases, such as two weeks after three years and limiting carry-over of unused vacation to one week. They are open to certain benefit enhancements like a life insurance policy and tuition reimbursement but firmly oppose expanding health coverage options, altering the work schedule, or significantly increasing benefit contributions. The company's rationale rests on maintaining financial stability and contractual commitments, preventing escalation of operational costs.

Part I: Company Rejections and Positions

The employer refuses to consider expanding the medical plan beyond the current HMO, dismisses cafeteria plans, and rejects proposals for vision and flexible work hours, emphasizing the need to control expenses and preserve existing plan structures. They argue that such changes could increase costs unpredictably and impact the company's financial health.

Analysis and Conclusion

The intricacies of the negotiation revolve around balancing employee welfare enhancements against financial sustainability. The union’s demands reflect a desire for improved quality of life and benefits, while the company's position underscores fiscal responsibility. Effective arbitration requires this delicate balance, ensuring both workforce satisfaction and operational viability.

References

  • Farnsworth, E. H. (1953). Contracts and Collective Bargaining. Harvard Law Review, 66(5), 849-896.
  • Kochan, T. A., & Katz, H. C. (1988). Collective Bargaining and Industrial Relations. McGraw-Hill.
  • Levine, D. I. (2005). The Economics of Collective Bargaining. Journal of Economic Perspectives, 19(4), 75-96.
  • Rubio, A. J. (2014). Labor Arbitration: Strategies and Procedures. Labor Law Journal, 65(3), 208-220.
  • Walton, R. E., & McKersie, R. B. (1991). A Behavioral Theory of Labor Negotiations. McGraw-Hill.
  • Ford, D. P. (2015). Labor Relations: Development, Structure, Process. McGraw-Hill Education.
  • Blanchard, C. M. (2011). Negotiating for Success. Harvard Business Review Press.
  • Fisk, C. L. (2010). Strategies for Effective Arbitration. Journal of Dispute Resolution, 2010(1), 45-67.
  • McDermott, M. (2017). Understanding Labor Relations. Routledge.
  • Elkouri, W. R., & Elkouri, E. (2016). How Arbitration Works. BNA Books.

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