PLEASE READ ALL OF THESE INSTRUCTIONS BEFORE BEGINNING THISASSIGNMENT. For this assignment, you need to analyze theinformation below from BOTH the management AND the employeeperspective. This information pertains to a labor union ina simulated/made up/not real firm in Glen Ellyn. The first part ofyour information relates to Management – the second part relates tothe Labor Union employees. I have provided you with informationfrom the last union negotiations at the plant in 2016. It is nowtime to begin preparing for negotiations for 2020 and beyond. Thethird part of this assignment is your analyzing what you havegained from this assignment.

Your assignment needs to include the following information:

• Part One:
  • Considerations for Management as they begin to prepare fornegotiations
  • Beginning offer to the plant workers - This means if you weremanagement for this firm, what would your initial/first offer be tothe labor union employees in each of the categories below.
• Part Two:
  • Considerations for Labor Union employees as they begin toprepare for negotiations
  • Beginning offer to management - This means if you were theemployees in the union, what would your initial/first offer be tothe management of the firm in each of the categories below.
• Part Three:
  • Analysis of what you have gained from this assignment andinsights you now have into labor union negotiations. Understandthat negotiations go on and on sometimes for years. But each set ofcontract negotiations has to begin somewhere - and this is what I'mhaving you look at in this assignment. First offers don't includewhat you really want - it's your starting point.

Format this assignment using the section headings noted as yousee below with “Management” and the “CPFac Workers Labor Union”. Bevery clear about the information required above.

Management –

Put yourself in the role of President and Owner of CooperPlastics Corp. located in Glen Ellyn, Illinois. Cooper manufacturesplastic cups, plates, silverware, bowls, etc.

There is a union, CPFacWorkers, representing the 95 factoryworkers at Cooper Plastics.

It is time for the management team at Cooper to once againnegotiate with the CPFacWorkers.

Your negotiations document needs to include thefollowing for BOTH Management and the Union - you must includethese categories for both offers:

• Length of the next contract in years - Labor contracts arefrequently 2-4 years in length
• Base pay
• Annual pay increases for each year of your labor contract
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs - calculate how much your increases aregoing to cost you - you need to provide me a total of costs and howyou arrived at that number
• Source of money for increased costs - where is the money comingfrom for these increased costs - this is obviously an assumptionbased on the information you have

Data from Current Contract, which expires in September2020:

• Contract began in March 2016
• CPFacWorkers conceded to 20 layoffs when negotiating the2016-2020 contract
• Remaining workers agreed to a 10% pay cut to help the companycontinue to recover from the recent US recession
• Sick days were reduced from 10 to 6
• Holidays reduced from 10 to 6
• Shift differential pay (The dates show you theincreases/decreases throughout the contract)

/hour

• 7am-3pm shift – 50 workers - $1,040,000
• 3pm-11pm shift – 30 workers - $624,000
• 11pm-7am shift – 15 workers - $312,000
• Managers – 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime – time and a half; 2017-2019 no OT has beenworked

Sales:                                                             Profits:

• 2016$4,000,000                                         2016 $1,040,000
• 2017$5,250,000                                         2016 $2,392,000
• 2018 $6,000,000                                        2018 $3,300,000
• 2019 $6,200,000 2019 $3,400,000

CPFacWorkers Labor Union –

Now, put yourself in the role of the negotiating teamrepresenting the CPFacWorkers labor union at Cooper Plastics inGlen Ellyn, Illinois. Cooper manufactures plastic cups, plates,silverware, bowls, etc. There are a total of 95 factory workers inthe bargaining unit of your union.

It is time to negotiate with the Cooper Plastics managementteam.

Your negotiations document needs to include thefollowing - you must include these categories in bothoffers:

• Length of contract in years
• Base pay
• Annual increases
• Shift pay differential
• Overtime pay
• Number of workers per shift
• Benefits percentage of salaries
• Annual paid sick days
• Annual paid holidays
• Total increased costs
• Source of money for increased costs

Data from Current Contract, which expired in September2020:

• Contract began in March 2016
• CPFacWorkers conceded to 20 layoffs when negotiating the2016-2020 contract
• Remaining workers agreed to a 10% pay cut to help the companyrecover from the recent US recession
• Sick days were reduced from 10 to 6
• Holidays reduced from 10 to 6
• Shift differential pay:
  • 3pm-11pm   $0.50 3/15-3/16 $.25 3/17-3/19
  • 11pm-7am    $1.00 3/15-3/16 $.35 3/17-3/19
• Benefits are 28% of salaries

Current Salaries based on 2080 hours per year, base pay$10/hour

• 7am-3pm shift – 50 workers - $1,040,000
• 3pm-11pm shift – 30 workers - $624,000
• 11pm-7am shift – 15 workers - $312,000
• Managers – 10 @$30K, 2 @ $40K, 1@$50K, Pres/Owner $75K
• Overtime – time and a half; 2017-2019 no OT has beenworked

Sales:                                                             Profits:

• 2016$4,000,000                                         2016 $1,040,000
• 2017$5,250,000                                         2017 $2,392,000
• 2018$6,000,000                                         2018 $3,300,000
• 2019 $6,200,000 2019 $3,400,000

Other Considerations:

• The United States appears to have come out of its 2008-2010recession, though there are those who are beginning to say it willreturn in 2020 as recent stock market fluctuations mayconfirm.
• Cooper has new products scheduled to be coming out in mid-2020which may help stimulate growth in the firm’s revenues andprofitability.
• Management at Cooper does all hiring, scheduling, firing, andpromotions.
• It has become increasingly difficult to get employees to workthe 3-11pm and 11pm-7am shifts. Absenteeism is high on these shiftsand productivity on both of these shifts are lower than on the7am-3pm shift.

When complete, click on the assignment name link to submit theassignment for grading.