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Labor and Management

LABOR AND MANAGEMENT

A Simulated Problem-Solving Exercise for Social Studies Classes Aimed at GivingStudents an Insight into Labor Problems

Circumstances of the Model:

MOUNT VAN BUREN has about 56,000 population, the fifth largest city in the state.
The principal local industry is the main plant of the ACME WELKNOT MANUFACTURING COMPANY. This prosperous business employs some 6,000 factory workers who are all members of a local union affiliated with the strong national industrial union THE UNITED WELKNOT WORKERS OF AMERICA.

STRIKE: Two weeks ago contract negotiations broke down between representatives of the union and the company. Since then production has stopped, striking pickets surround the plant, and the entire economic welfare of the community is threatened.

Disputed Union Contract Items:

HOURLY WAGE RATE

1.Present rate: $8.25 per hour. Time and a half after 40 hours.
2.Union proposal: $9.60 per hour. Double time after 40 hours.
3.Company offer: $9.00 per hour. Time and a half after 40 hours.

PAID VACATION AND SICK LEAVE

1.Present: Two weeks per year. Five days paid sick leave.
2.Union proposal: Four weeks per year. Ten days paid sick leave.
3.Company offer: Three weeks per year. Five days paid sick leave.

PROSPECTIVE LAYOFFS IN VIEW OF THE COMING OF AUTOMATION

1.It is known that the company plans technical changes using automation methods that will make it possible to reduce its labor force by 2, 000 or more factory employees.
2.The union is asking that seniority be the basis on which employees will be retained: last employed; first laid off. Also, the union asks that 3 months severance pay be given to those laid off.
3.The company refuses to agree on either the seniority plan or severance pay.

LABOR AND MANAGEMENT
A Simulated Problem-Solving Exercise for Social Studies Classes Aimed at Giving Students an Insight into Labor Problems

Circumstances of the Model:

MOUNT VAN BUREN has about 26,000 population, the fifth largest city in the state.

The principal local industry is the main plant of the ACME WELKNOT MANUFACTURING COMPANY. This prosperous business employs some 6,000 factory workers who are all members of a local union affiliated with the strong national industrial union THE UNITED WELKNOT WORKERS OF AMERICA.

STRIKE: Two weeks ago contract negotiations• broke down between representatives of the union and the-company. Since then production has stopped, striking pickets surround the plant, and the entire economic welfare of the community is threatened.

Disputed Union Contract Items:

HOURLY WAGE RATE

1.Present rate: 4.25 per hour. Time and a half after 40 hours.
2.Union proposal: 4.60 per hour. Double time after 40 hours.
3.Company offer: 4.35 per hour. Time and a half after 40 hours.

PAID VACATION AND SICK LEAVE

1.Present: Two weeks per year. Five days paid sick leave.
2.Union proposal: Four weeks per year. Ten days paid sick leave.
3.Company offer: Three weeks per year. Five days paid sick leave.

PROSPECTIVE LAYOFFS IN VIEW OF THE COMING OF AUTOMATION

1.It is known that the company plans technical changes using automation methods that will make it possible to reduce its labor force by 2,000 or more factory employees.
2.The union is asking that seniority be the basis on which employees will be retained: last employed; first laid off. Also, the union asks that 3 months severance pay be. given to those laid off.
3.The company refuses to agree on either the seniority plan or severance pay.

6 May,1985
We the undersigned, being duly appointed plenipotetiaries, and thus
entrusted with full powers of negotiation And ratification, of the United Coal Miner’s
of America and Pittsburg Coal & Natural Fuel Inc.(hereafter referred to as Party
of the First Part and Party of the Second Part), do hereby make known our mutual
ratification of all articles mentioned insofar as they may pertain to work rules,
benifits and all fuctions thereof.

ARTICLE I: WAGES
Whereas, the Party of the First Part agrees to the hourly wage rate of /hour for full-time employees with a rate of for
part of any hour employment thereafter. Full-time status to be achieved after hours.

ARTICLE II: VACATION AND SICK LEAVE.
Whereas the Party of the Secind Part has agreed to grant days vacation to all full-time employees belonging to the Party of the First Part.
In addition, both parties have agreed to days paid sick leave to
members of the afforementioned Party of the First Part.
In the event that the afforementioned employee does not choose to make use of said personal days, the interested party will recieve compensation for same.

ARTCILE III: UTILISATION OF AUTOMATION AND COMPENSATION THEREOF.

Whereas, it has been acknowledged by both parties that the future Utlisation of automated technology is inevitable in lieu of the current foreseeable economic situation, the Party of the First Part has agreed to accept increased plant automation with the following provisions;

1)The Party of the Second Part has agreed to
as compensation to the involved Party of the First Part.
2)Both interested parties have agreed that will
serve as criteria for future notification of redundancy.

ALL afforementioned agreements, being officially and rightfully signed and notarised by both parties, are legal and binding under U.S. law for the specified period

6 May,1985
of years, to be implimented immediately. Failure to comply or adhere to any article and/or provision herein stated, is an offense punishable to the full extent of the law.

SIGNED:
1. United Coal Miners of America.
2. , Pittsburg Coal & Natural Fuel Inc.

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