Expert answer:Bargaining book, will attach an example once a tut
Solved by verified expert:We need your “Retirement “section of the bargain book for target desired and maximum filled in (I already filled them in)as well as the target and maximum paragraphs filled in. Fill in the target & maximum PARAGRAPHS explain our logic behind our settlements. Feel free to look at what I put for the initial offer to get an idea of what to add in.Refer to our bargain book and info provided only and If you must , refer to thezinnia.com”a paragraph or two explaining the logic behind the target settlement. For Retirement. A paragraph or two explaining the logic behind the maximum settlement for Retirement. When you read the bargaining book you will see the Target and Max settlement sheet”
20171014214928union1team_bargainingbook233.docx
Unformatted Attachment Preview
Running head: THE BARGAINING BOOK
Assignment for Course:
HRM 5380 – Employee Relations
Submitted to:
Date of Submission:
October 15, 2017
Title of Assignment:
The Bargaining Book
CERTIFICATION OF AUTHORSHIP:
I certify that I am the author of this paper and that
any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I
have also cited any sources from which I used data, ideas of words, whether quoted directly or
paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student Signature:
*******************************************
Instructor’s Grade on Assignment:
Instructor’s Comments:
The Bargaining Book: Team 1
Management Team Members:
2
THE BARGAINING BOOK
Union Team Members:
Table of Contents
Bargaining Agenda……………………………………………………………………………….4
Company Overview………………………………………………………………………………5
Initial Offer……………………………………………………………………………………….7
Initial Offer Worksheet…………………………………………………………………………..10
Minimum Settlement Worksheet…………………………………………………………………12
Target Settlement Worksheet…………………………………………………………………….14
Minutes…………………………………………………………………………………………..16
Justification………………………………………………………………………………………18
Final Settlement Worksheet……………………………………………………………………………………………..19
Final Contract…………………………………………………………………………………….22
Final Costing Table………………………………………………………………………………63
3
THE BARGAINING BOOK
Success Factor/Takeaway………………………………………………………………………..51
Bargaining Agenda
1. Wages
2. Health Insurance
3. Holidays
4. Vacation
5. Retirement
4
THE BARGAINING BOOK
Company Overview
The Zinnia is a prestigious and diverse hotel providing services from overnight stays to
board room meetings located in the downtown Minneapolis area. The company was acquired by
a well-known individual from the Metropolitan area who also owns other lucrative retail and
commercial properties. At the Zinnia there are 167 employees working an average of 35 hours
weekly, five departments, and approximately 25 percent of the staff are classified as senior
employees. The Zinnia is now faced with the renewal of its Union Contract with Local H-56.
The renewal is causing conversation, and raising concern as this agreement will set the future
contracts needs re-negotiation. Some of the main objectives for this contract are to make sure
the employees are receiving equitable compensation and health insurance, as well as vacation
and holiday pay in order to remain competitive within the unionized hospitality industry arena
and maximize profitability.
THE BARGAINING BOOK
5
Currently, the Zinnia offers gradual pay increases effective the anniversary of the
agreement. Other benefits provide to employees are higher pay rates based on higher
performance job classifications. Holidays, vacations, jury duty and funeral leave are all paid
perks as well. Employees are also provided meals and the laundering and upkeep of uniforms.
Another benefit, specifically for part-time employees is the overtime pay, which is one and onehalf of the employee’s regular straight line pay. Health care coverage is provided and
contributed made by the employer and these benefits are comparable to other union hotel.
Wages
According to the Minnesota Department of Labor and Industry, the current minimum
wage for large employers in 2017 is $9.50. Based on the current wages listed in the Zinnia
website, union employees are paid over the minimum wage. This pushed us to research the
market average wage using tools such as Indeed and Salary.com. When using Indeed, the Zinnia
union employees are almost 30% over paid but when looking at Salary.com the Zinnia union
employees are paid almost the exact same. This is a huge gap but in neither source, are the
Zinnia union employees under paid or non-compliant with the state minimum wage. This could
be the leading cause of Zinnia’s high costs but based on employee surveys, majority vote feels
under paid and are demand for an increase.
Healthcare Insurance
The Zinnia provides healthcare benefits to its eligible employees, which are fulltime and
banquet staff. The letter from the Convention Bureau explains that the union agreement is about
to expire and ramifications could be huge based on the results of the negotiation. Furthermore,
this negotiation can and will affect, The Twin Cities Hotel Employers-Employees Health and
THE BARGAINING BOOK
6
Welfare Trust Fund, and as stated before will set the standard for other hotels with negotiations
in the near future. The Zinnia understands that by allowing employees to have a voice and
providing quality healthcare and benefits it will increase productivity and continue to have
competitive stance in the market.
Currently, the Zinnia offers both positions the same benefit plan through the “The Fund.”
The Twin Cities Hotel Employers-Employees Health and Welfare Trust Fund, contributes $2.80
per hour per employee. The cost for a single employee is $4,000 that is fully covered by the
Zinnia’s contribution, $10,500 for a family with a contribution of $7,500 and $3,000 by the
employee. However, these rates will increase by 5% if no changes are made within the plan.
There are some benefits provided by the ACA, for example: preventive healthcare and
prescription drugs. The ACA requires that 95% of the employees working 30 hours per week or
130 hours per month should be offered this coverage, luckily, The Zinnia provides this coverage
to employees that work as little as 20 hours per week. Other benefits include, in-patient hospital
expenses, out-patient medical care, maternity health care, supplying of generic and non-generic
drugs, life insurance and accident and sickness disability.
Holidays
The Zinnia’s policy for paid holidays is offered to all regular full-time and part-time and
banquet staff. These days are: New Year’s, Memorial, Independence, Labor, Thanksgiving and
Christmas. All employees will receive pay, exclusive of probationary, and if the part-time
employee regularly works on the day in which the holiday falls. Two additional days will be
added to the list: Veterans and Black Friday.
Vacation
7
THE BARGAINING BOOK
Retirement
Our Initial Offering
As management we have concluded that the employees at Zinnia Hotel are paid above the
average of $9.00 per in comparison to the local market. It is in best interest of the organization
that management not increase the hourly wages as requested .In order to compensate for not
increasing the wages, we have determined what seems to be critical to the employees needs, and
believe that the reason for the initial demand for the wage increase is due to the lack of sufficient
benefit coverage. As the majority of our workforce are begins to look into their retirement plans
it is best to invest into our employees’ healthcare plans as we will like to retain them by
providing a secure environment which will allow them a healthy and happy work life.
Employees are one of the main foundations of the organization, and without them this hotel
would not have been so successful over the years. Therefore, we determined that for our initial
offering the employees will be receiving an increase of 1% plus 5 cent wage change on their first
year anniversary and another 1% plus 10 cent wage change increase on their second year of
employment and 1% plus 15 cent wage change on their third year anniversary. The total costs
for the wage increases for the first year will be $49,482.76, the total costs for the second year
will be $99,346.20 and the total costs for the third year will be $149,533.92. Despite the decrease
in wage percentage, Zinnia will be offering all employees a more substantial benefit package.
The health plan offered to employees will be covered 70% by the Zinnia hotel and
employees will have a 30% contribution. This will be stable despite market changes in change
for an onsite wellness program. Retirement, vacation and holidays will remain the same.
Target Desired Settlement
THE BARGAINING BOOK
8
In order to attract and retain the best employees it is important as management that the
Zinnia Hotel develops a competitive compensation package. Our target desired settlement will
include the following: employees will receive a 2% increase in their straight time hourly rate for
the first second and third year of employment. The total costs for the wage increases for the first
year will be $72,135.40, the total costs for the second year will be $145,713.50 and the total
costs for the third year will be $220,763.16. The health plan offered to employees will be
covered 75% by the Zinnia hotel and employees will have a 25% contribution. This will be
stable despite market changes in change for an onsite wellness program and day care services.
The current offering of 6 months of child care leave will be cut to 3 months in exchange for
onsite daycare. Employees will have the added bonus of being able to spend time with their
children and knowing that they are only a few feet away. Employees with 1-2 years of service
will receive 1 additional day of vacation, employees with 3-20 years of service will receive 2
additional day of vacation .The total amount spent for the first year will be $4,790.47, for the
second year $10,209.17 and the third year $15,854.77.
Maximum Settlement or Walkaway Plan:
In order remain profitable it was determined that our maximum settlement or walkway plan
will be the following: employees will receive a 3% increase with no cent change in their straight
time hourly rate for the first second and third year of employment. In order to accommodate this
wage increase the health plan offered to employees will be covered 60% by the Zinnia hotel and
employees will have a 40% contribution. This will be stable despite market changes in change
for an onsite wellness program and day care services. The current offering of 6 months of child
care leave will be cut to 3 months in exchange for onsite daycare. The total costs for the wage
9
THE BARGAINING BOOK
increases for the first year will be $108,203.09, the total costs for the second year will be
$219,652.28 and the total costs for the third year will be $334,444.94.
Team: Union Team 1
Date: 9/24/17
TEAM MEMBER CONTACT INFORMATION
Bargaining Responsibility
Contact Information
Health Insurance/Other Benefits
Vacation/Holiday
Wages
Retirement
INITIAL OFFERING+
(STARTING POINT)
Item
Proposal
Cost
10
THE BARGAINING BOOK
Year 1: 5% increase
Wages*
$189,973.91
Year 2: same as the year before
Year 3: same as the year before
Year 1: Single ($4200) and Family ($11025) Covered at
100% include 5% increase
Health
Insurance
Year 2: Single ($4200) and Family ($11025) Covered at
100% include 5% increase
$1,274,700.00 per
year (167 employees
and 50% have family
coverage
Year 3: Single ($4200) and Family ($11025) Covered at
100% include 5% increase
Year 1: Remains the same as existing contract
Retirement
$ 2,972,970.28
Year 2: Remains the same as existing contract
Year 3: Remains the same as existing contract
Year 1: Remains the same as existing contract
Other
Benefits
Year 2: Remains the same as existing contract
Year 3: Remains the same as existing contract
Year 1:
Proposal includes x vacation days after x years of service:
3 after 0, 5 after 1, 10 after 2, 13 after 5, 17 after 10, 20
after 15 and 25 after 20
Vacations
and
Holidays
Year 2:
$6,059.86
Holidays: Day after Thanksgiving, Martin Luther King’s
$9,349.34
Birthday, Lincoln’s Birthday, Eid al-Fitr, Eid al-Adha, Yom
Kippur, Rosh Hashanah, Diwali and Christmas Eve
Year 3:
Combination of year 1 and 2
Year 1: N/A
Other
$2,847.91
Year 2: N/A
Year 3: N/A
11
THE BARGAINING BOOK
Other
Other
Attach additional sheets as needed with proposed language changes.
ESTIMATED ANNUAL COSTS
(add or delete years as needed)
Proposed Contract Duration: _3_ years
Year 1: $1,318,322.60
Year 2: $1,487,212.87
Year 3: $ 1,487,212.87
TOTAL LIFE OF
CONTRACTCOST: $4,292,748.34
* Leader of the Bargaining Team
12
THE BARGAINING BOOK
Team: Union Team 1
Date: 9/24/17
Team Members:
MINIMUM SETTLEMENT
(THREAT OR WALKAWAY POINT)
Item
Wages
Proposal
Year 1: 3% increase
$108,203.09
Year 2: same as the year before
$219,652.82
Year 3: same as the year before
$334,444.94
Year 1: Single ($4200) and Family Covered at
80%($11025) include 5% increase
Health
Insurance
Cost
Year 2: Single ($4200) and Family Covered at
80%($11025) include 5% increase
Year 3: Single ($4200) and Family Covered at
80%($11025) include 5% increase
Single ($348,600)
total per year
Family
($8820employer
pay; 2205employee
pay)
Total per
year($1,089,480)
0.35x 35hrs=12.25 X
167 employees =
$2045.75 X 52=
$106,379
Year 1: $0.35 contribution per employee/hour
Retirement
Year 2: $0.40 contribution per employee/hour
Year 3: $0.40 contribution per employee/hour
(0.40 x 35hrs = 14 x
167 employees = $
2338 x 52= $121,576)
x2
= 2,972,970.28
13
THE BARGAINING BOOK
Year 1: Remains the same as existing contract
Other
Benefits
Year 2: Remains the same as existing contract
Year 3: Remains the same as existing contract
Year 1:
Vacations
and
Holidays
Proposal includes x vacation days after x years of service:1
after 0, 7 after 1, 11 after 2, 13 after 5, 16 after 10, 18after
15 and 25 after 20
$43,205.73
$56,296.76
Year 2:
$99,502.49
Additional Holidays: Day after Thanksgiving, MartinLuther
King’s Birthday, Christmas Eve Year 3 :Years 1+2
combined
Other
Attach additional sheets as needed with proposed language changes.
ESTIMATED ANNUAL COSTS
(add or delete years as needed)
Proposed Contract Duration: __3__ years
Year 1: $1,240,888.82
Year 2: $1,365,429.58
Year 3: $1,523,427.53
TOTAL LIFE OF CONTRACT
COST: $4,129,745.93
14
THE BARGAINING BOOK
Team: Union Team 1
Date: 9/24/17
Team Members:
TARGET (DESIRED) SETTLEMENT
Item
Wages
Proposal
Year 1: 4% increase
$144,270.79
Year 2: 4% increase
$219,652.82
Year 3: 4% increase
$334,444.94
Year 1: Single ($4200) and Family ($11025) Covered
at90% include 5% increase
Health
Insurance
Cost
Year 2: Single ($4200) and Family ($11025) Covered
at90% include 5% increase
Year 3: Single ($4200) and Family ($11025) Covered
at90% include 5% increase
$1,182,090.00 per
year (167 employees
and 50% have
family coverage
Year 1: Remains the same as existing contract
$ 0.35 for each hour worked for the year by every employee
and the company contributes $0.35 to the employee each
hour worked in the company each year
$0.35*35 hrs*167
Year 2: Remains the same as existing contract
Retirement
$0.40 for each hour worked for the year by each employee
each year and the company contributes $0.40 to the
employee each hour worked in the company each year.
$0.40*35*167
Year 3: Remains the same as existing contract
$0.40 for each hour worked for the year by each employee
each year and the company contributes $0.40 to the
employee each hour worked in the company each year.
2,972,970.28
15
THE BARGAINING BOOK
$0.40*35*167
Year 1:Remains the same as existing contract
Other
Benefits
Year 2:Remains the same as existing contract
Year 3:Remains the same as existing contract
Vacations
and
Holidays
Year 1: Proposal includes x vacation days after x years of
service: after 0, 7 after 1, 10 after 2, 13 after 5, 15 after 10,
18 after15 and 25 after 20
Year 2: Additional Holidays: Day after Thanksgiving,
Martin Luther King’s Birthday, Christmas Eve
$35,745.38
$56,296.76 + year 1
$92,042.14
Year 3: Combine years 1+2
Attach additional sheets as needed with proposed language changes.
ESTIMATED ANNUAL COSTS
(add or delete years as needed)
Proposed Contract Duration: _3___ years
Year 1: $1,326.038.47
Year 2: $1,493,784.96
Year 3: $1,608,577.08
TOTAL LIFE OF CONTRACT
COST: $4,428,400.51
16
THE BARGAINING BOOK
UNION TEAM 1
MINUTES
Union Team 1 met on Tuesday, September 12, 2017 at 6:00 pm est. via Whatsapp conference
call to discuss the teams’ negotiation plans.
Group members that attended were:
Topics Of Discussion
· Group members’ introductions
· Team member skill inventory- (skills, knowledge, etc. comprised in this team that you can
leverage to work at optimum performance).
· Ground Rules- meeting schedules, due dates/deadlines, “attendance” expectations, and
communication methods. Conflict management (what are potential conflicts that teams may
experience between team members and how to manage/solve these conflicts).
· Discussed the background of the Zinnia exercise
· Subcommittee designation and responsibility:
· Discussed the next scheduled meeting Monday, September 19, 2017 at 7:00 pm est. via
Whatsapp conference call
Meeting adjourn @ 6:40 pm est.
Recorded minutes by
UNION TEAM 1
MINUTES
Union Team 1 met on Monday, September 19, 2017 at 7:00 pm est. via Whatsapp conference
call to discuss the teams’ bargaining plans.
Group members that attended were:
Topics Of Discussion
17
THE BARGAINING BOOK
· Group members discussed initial offering (starting point), minimum settlement (threat or
walkaway point), and target (desired) settlement for wages, retirement, health insurance,
vacations and holidays, and other benefits
· Submission of initial offering, no revisions were needed (per the instructor)
· Revisited the initial offering and created a negotiation plan
· Included management team to the group Whatsapp and conference calls
· Both management and union team introduction followed by the goals that both sides are trying
to accomplish with the bargaining exercise.
· Discussed the next scheduled meeting Wednesday, September 27, 2017 at 7:00 pm est. via
Whatsapp conference call
Meeting adjourn @ 7:35 pm est.
Recorded minutes by Amy Huguley
UNION TEAM 1
MINUTES
Union Team 1 met on Wednesday, September 27, 2017 at 7:00 pm est. via Whatsapp conference
call to discuss the teams’ bargaining plans.
Group members that attended were:
Topics Of Discussion
· Group members discussed offers of the management team.
· The contract deadlines and that was negotiation between the union and management team
· Contract revisions found on the H-56 union website
· Final cost document revisions
· Discussed the next scheduled meeting Wednesday, October 6, 2017 at 7:00 pm est. via
Whatsapp conference call
Meeting adjourn @ 7:30 pm est.
Recorded minutes by Amy Huguley
18
THE BARGAINING BOOK
UNION TEAM 1
MINUTES
Union Team 1 met on Wednesday, October 6, 2017 at 7:00 pm est. via Whatsapp conference call
to discuss the teams’ bargaining plans.
Group members that attended were:
Topics Of Discussion
· The contract that was negotiated between management and the union.
· Revising the original contract on the H-56 union website.
· The final cost document and final contract
· Degree of success achieved in the collective bargaining simulation
· Submission date/deadline for the bargaining book
Meeting adjourn @ 7:35 pm est.
Recorded minutes by Amy Huguley
Justification
As we reviewed the contract we realized that the new contract had to be balanced during
the 3 year period. From a management stand point we decided to increase the percentage of
salaries to employees for the next three years. We realized that attracting and retaining quality
employees can be quite challenging. Everyone has different driver but ultimately Maslow’ …
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades