Sample Memo on Advise regarding HR principles
Molloyâ??s Metals, Inc., a manufacturer of machined metal components used in
the automotive and aircraft manufacturing and servicing industries. Among the
companyâ??s 129 employees is a group of 78 machinists who constitute the core
of the companyâ??s business. Without their work, there would be no business.
They are represented by a union, and the contract is coming up for
renegotiation in one month. Times have substantially changed since the last
contract was negotiated four years ago. The industry has become much more
competitive, and many competitors have closed shop or moved overseas, and many
overseas competitors have sprung up. Molloyâ??s has traditionally been among
the highest paying within the competitor group and could afford to be because
of its high productivity. Today, however, productivity alone may not be enough
to save the company. Some reduction in the wage scale and bringing in lower
paid, less experienced workers may be necessary to remain competitive. The
union has indicated that it is strongly against any wage cuts and would
vigorously fight any arrangement that brought in lower paid workers to do their
jobs. They seem to be determined to strike rather than to concede too much to
management. As you prepare for the upcoming negotiations, you wonder just how
you should approach the negotiations.
As a consultant to Mr. Matthews, what steps would you advise
him to take to get ready for the negotiation, and what other factors should be
considered? Be specific about what you would recommend. In your recommendation,
consider the following:
What are the objectives the company should pursue for
negotiation?
What is the appropriate information that should be sought to
prepare for the wage portion of the negotiation?
What is the negotiation style that should be followed?
How would you deal with the possibility of a strike?
In addition, analyze the situation and recommend at least
one additional issue/consideration for the negotiation.
At least three pages in the form of a memo.
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