Two assignments

Instructions for Mock Arbitration

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:

1. Part I – You will be given:

a) the demographics of the employees working for CAC Company; included will ll be 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 that the company will not consider

You will be responsible to detail current total cost of labor, under the existing contract, including, benefits, paid time off, and wages. In addition, you will detail what the total cost of a new contract will be if labor were to get all of their demands and then detail what the labor cost will be if the company is successful in arbitration.

2. Part II – You will be the IBEW Local 3. You will: a) give specific reasons why each of the contract demands that have been brought

to the table are items that are not negotiable. (You will be given itemized demands)

3. 4.

Part III – You will be the CAC Company. You will: a) give specific reasons why CAC cannot consider specific contract demands. (I will provide the information from the employer.) Part IV – You are the Arbiter. You will:

a) provide a detailed report, as the arbiter, giving your decision and your reasons for granting the demands of labor or the company during this contract negotiation.

Part I A – Here are the company demographics

Job Title Current Hourly

Pay Rate Length of Service

1 Receptionist $10.50 5 years

2 Office Administrator $20.00 7 years

3 Word Processor $7.50 2 years

4 Accounts Payable Clerk $10.00 5 years

5 Accounts Receivable Clerk $12.00 6 years

6 Mailroom clerk $7.50 2 years

7 HR Administrator $20.00 10 years

8 Administrative Assistant $25.00 9 years

9 Administrative Assistant $20.00 6 years

10 Administrative Clerk $12.00 5 years

11 Administrative Clerk $11.00 3 years

12 Administrative Clerk $10.00 1 year

13 Electrician Apprentice $13.28 1 year

14 Electrician Apprentice $14.00 1.5 years

15 Electrician Apprentice $15.00 2 years

16 Junior Electrician $15.28 2 years

17 Junior Electrician $16.28 2.5 years

18 Junior Electrician $17.50 4 years

19 Electrician I $23.71 5 years

20 Electrician I $23.71 5 years

21 Electrician I $24.00 7 years

22 Electrician II $27.80 8 years

23 Electrician II $28.00 8.5 years

24 Electrician II $29.00 9 years

25 Electrician II $30.00 10 years

26 Electrician II $31.00 12 years

27 Electrical Maintenance Worker $16.84 3 years

28 Electrical Maintenance Worker $18.00 4 years

29 Driver $13.89 2 years

30 Driver $14.25 3 years

31 Warehouseman $10.28 2 years

32 Warehouseman $11.00 2.5 years

33 Warehouseman $12.00 3 years

34 Warehouseman $12.25 3.5 years

35 Warehouseman $12.98 4 years

36 Stock clerk $10.52 1 month

37 Stock clerk $10.52 6 months

38 Stock clerk $10.52 1 year

39 Data specialist $30.00 4 years

40 Purchasing specialist $27.50 3 years

41 Purchasing clerk $20.00 8 years

42 Purchasing clerk $18.50 4years

Part I - B - The current contract between CAC and the International Brotherhood of Electrical Workers will expire on the last day of this month. The benefits listed below are for employees who have completed their 90 day trial period. The contract includes the following benefits: Vacation time – 1 week after 1 year of service 2 weeks after 7 years of service 3 weeks after 12 years of service Sick time – 1 paid sick day each 6 months of service Benefits – the CAC Company now provides only an HMO option for health and a DMO for dental. The company pays 55% of the benefit costs for employees. Coverage for families are paid in full by the employee. Work schedule – the CAC Company operates 6 days a week, a normal schedule is Monday through Saturday. Warehouse hours are 6am to 4pm, field personnel work 7am to 4pm. Office personnel work 8am to 5pm Monday through Friday, with one unpaid hour for lunch.

PART 1 C - The demands of labor and the issues that will be part of the arbitration are:

1) Change to the accrued vacation time: a. 1 week after 1 week of service b. 2 weeks after 2 years of service c. 3 weeks after 5 years of service d. 4 weeks after 7 years of service e. vacation time can be carried over from year to year

2) Change to sick time policy:

a. 1 paid sick day per month b. Allow sick days to accumulate and carried over from year to year

3) Add Personal Time Off policy:

a. Allow employees to have 5 hours of personal time off per month to be used for personal errands such as doctor’s appointments, school meetings, etc.

4) Benefits a. Employer to pay a larger portion of employee benefits – increase to 70% of the

cost b. Employer to pay a portion of family coverage – at 50% c. Change to a cafeteria plan where employees can select either an HMO or PPO

medical option d. Employer paid life insurance policy for employees with benefit being equal to

their annual salary e. Vision plan for employees and family – paid for 70% for employees and 50% for

family coverage f. Tuition reimbursement plan for employees who are attending school. Employees

can take classes that are specific to the interest of the business. An employee who is attending a college or training school to enhance their skills will be reimbursed at 100% for achieving an A, 75% for achieving a B and 50% for achieving a C.

5) Work Schedule a. Change in work schedule for warehouse staff from 6am to 7am start time, b. Change in work schedule for office staff from 8am to 5pm to 8:30am to 4:30pm to

include a paid 1 hour lunch.

PART 1 D - The items and issues that the company is willing to take to arbitration are as follows: The company will consider changing the vacation policy:

1. 1 week after 1 year of service 2. 2 weeks after 3 years of service 3. 3 weeks after 7 years of service 4. Only 1 week of vacation time can be carried over from one calendar year to another 5. Employees must use their vacation time in the calendar year

The company will consider changing the sick time policy:

1. 1 sick day every two months 2. Sick days must be used in the calendar year and may not be carried over

The company will consider personal time off policy:

1. 1 hour of personal time off, per month, this time can be accrued not to exceed 7 hours at any one time

The company will consider offering a Life Insurance policy for employees. The company will consider initiating a tuition reimbursement plan. PART 1 - E - The CAC Company will not consider during negations or during arbitration are as follows:

1. Making changes to the medical insurance plan it will remain an HMO for employees paid at 55% by the company and 100% for family benefits

2. The employer will not consider a cafeteria plan for benefits 3. The employer will not consider offering a vision plan 4. The employer will not consider changes to the work schedule