Strategic Action Recommendations

    You are the vice president for human resources for GMFC. The company and the union have failed to agree on a new contract, and the old contract expired last week. Two issues are unresolved, and no movement has been made on these for more than 10 days. The union is demandin" rel="nofollow">ing 10 cents an hour more than the company is willin" rel="nofollow">ing to offer, and management contin" rel="nofollow">inues to demand some employee co-payments for medical care. This is the first negotiation in" rel="nofollow">in 15 years in" rel="nofollow">in which a new contract has not been ratified before the old one expired. Local 384 voted a strike authorization about a month ago, but the leaders have not in" rel="nofollow">indicated at this poin" rel="nofollow">int whether they in" rel="nofollow">intend to strike. Production managers are lobbyin" rel="nofollow">ing for a lockout to avoid material losses if the heated steel treatin" rel="nofollow">ing process must be shut down rapidly. Marketin" rel="nofollow">ing managers want production to meet orders scheduled for shipment. They argue the union doesn’t in" rel="nofollow">intend to strike because it hasn’t already done so. In the senior management meetin" rel="nofollow">ing this mornin" rel="nofollow">ing, the CFO briefed the other members and in" rel="nofollow">indicated the company could accept a labor cost in" rel="nofollow">increase of 5 cents an hour more, but only if this is a firm figure and not subject to in" rel="nofollow">increase over the term of the contract. Unfortunately, the union appeared adamant that it will not agree to any health care co-payment. You have been tasked to recommend specific strategic actions to the senior management team in" rel="nofollow">in this impasse. Considerin" rel="nofollow">ing the evidence, what actions should the company take? Outlin" rel="nofollow">ine each specific action, in" rel="nofollow">includin" rel="nofollow">ing processes used and timetables. Consider the possibility that your strategic recommendations may trigger a lockout, strike, or other union activity.