The objectives of management
The management of Drapers plans to implement the following modifications:
Lengthen the working week (45 hours). This new policy will contribute to an enterprise's higher production and provide additional income for its employees. Additional five hours of labor will generate £75 per week for households. Currently, the company cannot afford to pay overtime, therefore a 45-hour workweek will be beneficial for both the business and the employees. Single-status compensation and terms. Change is important to reduce employee turnover among part-time workers, who are now in a severely disadvantageous situation. Currently, these individuals do not qualify for sick leave or pension benefits. By instituting single status pay and conditions, management will encourage these employees to remain with the organization. Profit-based compensation plan Employee compensation will be closely tied to the financial performance of the organization over a specified time period. This approach will offer workers with an incentive to boost output levels. No paid closing weeks; flexible work schedules and generic job descriptions. The staff will be reassigned to a different department. This technique will allow the company to avoid the threat of a labor shortage. Secondly, this strategy will facilitate the development of a vast array of talents among workers. Holidays such as Christmas and Easter are worked. Currently, the business routinely suspends operations for holidays and other special occasions. Instead, the corporation will provide more holiday leave. The employee remuneration package will be established on a three-year cycle. This modification is intended to make compensation policies more clear. Moreover, it is intended to increase full-time staff retention rates. New sick pay program The first three days of sick leave will be unpaid, but employees will be compensated for the subsequent four weeks. Additionally, the corporation intends to institute a new cumulative paid sick leave. Each employee will receive one additional paid day after ten years of service.
The reforms are vital, not only for the continued existence of Drapers but also for the well-being of employees. Currently, the corporation is facing challenges such as an economic slowdown, growing operational expenses, and a decline in corporate profitability. They will allow the company to accomplish the following goals. At this point, it is vital to note that the corporation will no longer conduct separate negotiations with labor unions in the future.
The counterproposal of labor unions
It is highly expected that the union reps will make multiple counteroffers.
They are especially likely to oppose to a 45-hour workweek. They may advocate for a reduction to forty-three or forty-two hours. The question can only be brought up by the union representative. Additionally, the union will demand on slightly increased salary for the staff. The firm can make trade unions some concessions. However, one might assert that an increase in working hours will necessarily result in a wage increase for employees. Workers might object to generic job descriptions and flexible work conditions. This may also be viewed as an attempt to violate workers' rights. Therefore, the team of management negotiators should clarify that these models are utilized by a large number of automakers and that such a strategy can only improve worker performance rather than harm them. Lack of paid sick leave for temporary employees. This subject is non-negotiable, as the corporation plans to provide identical compensation and working conditions for all employees, regardless of their standing. Nonetheless, it should be noted that the corporation will hunt for new permanent hires among its temporary employees.
References
Shelley, S., and M. Calveley, 2007. Learning with labor unions: a modern objective in labor relations. Ashgate Publishing, New York
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