The University is headed by a President. There are over 1 ,OHO employees and there are three unions organize and recognized as the bargaining units for their respective members. One union is composed of the non-teaching rank-and-file employees; the second union is comprised of the elementary and high school teachers, while the third consists of the college faculty. The existing collective bargaining agreement of the non-teaching union is for the period 2003 to 2008. The economic provisions were due for negotiation in January 2006 and notice had been served on management.
The arties agreed to meet and to negotiate on January 9, 2006 and union officers were accompanied by their lawyer. Management was represented by the UP for human resources, UP for administrative affairs, UP for finance, director for guidance services center, and the in-house legal counsel. A Union’s Proposals During the negotiations, among the proposals presented by the union to amend the existing agreement were: 1) a five thousand (PH 5, 000. 00) pesos salary increase spread over the remaining period of two years or P 2,500. 00 increase for 2006 and another increase of UP,500.
O for 2007 and before the expiration of the CAB; 2) a 50% increase in seniority effective 2006; 3) additional five days’ vacation and sick leave credits effective school year 2006-2007; 4) equal opportunity to attend training; 5) financial assistance in the amount of to any union member who is diagnosed with a dreaded disease; 6) service cash incentive of Pl 0,000. 00 to union members who have served the University for 10 years and multiplied by two for every ten years additional service rendered. B Management’s Position The management countered with: 1) p 1 ,OHO.
O increase instead of 2) a ID percent increase in seniority pay; 3) a status quo on the vacation and kick leave credits; 4) the union come up with their own financial assistance to their members with dreaded disease; 5) cash incentive P 10,000. 00 to be given to union members who have served the university for 25 years and not for 10 years only. The management agreed to provide equal opportunity for union members to attend training provided they are recommended by their supervisors or department heads and provided further that there are available funds. The union representatives stood their ground.
Their lab’. Year was very vehement in his objections to the management’s counter-proposals. On the there hand, the management explained that since the economic crisis in 1997, the University has encountered financial difficulties owing to the decline ins enrolment. Because tuition fees are the lifeblood of educational institutions, a decreased enrolment means lesser earnings. Moreover, the University has to maintain its high standard or quality education necessitating improved facilities, increased book collection, purchase of new equipment, renovation of buildings, etc.
No agreement was reached between the parties that fateful day. The parties agreed, however, to resume negotiations a week thereafter. QUESTIONS: 1 . ) How will the UP for HRS bring HRS related issues to the negotiation table for the parties to agree to a compromise? Create a new proposal based on the needs of both parties in that way the relationship of both parties will be harmonious and might manage the cost probability Of the organization. UP Of the HRS must establish a good communication with the union. HRS must show them facts and financial impact of each move the university is taking. 2. Discuss the pros and cons of the proposals of the union and the management. Pros CONS MANAGEMENT Managed the cost and profitability of the organization. Controlled financial losses. May result to labor unrest. Gal cost brought by conflicts with the union due to CAB disagreement. UNION High cost in employees benefit. May suffer to losses due to lack of enrollees and high cost in employees benefit. Business continuity may be compromised. Good facility may suffer. 3. ) In the event that the CAB negotiation is deadlocked, and the case was resolved to you as the conciliator, how will you resolve it?
Evaluate financial implication to the organizations and study legal implication of action the organization is taking then decide what you will do. Make a new proposal hat both parties can compromise. 4. ) What is the implication of the CAB deadlock for the industrial and labor relations of the parties? Labor unrest if no agreement made. Confrontational, both parties. CASE # 2 BEACHHEADS HOTEL Human Capital Dilemma This is a case of two competing hotels, Sunrise Hotel and Beachheads Hotel that are both located in a medium sized, deteriorates town in the Northeast U.
S. The hotels are both competing for the same set of guests, as well as the same set Of potential employees. They are both budget hotels, right next door to each other, with 60 guest rooms each and a view of the beach. The occupancy during peak season for the Sunrise Hotel is 98%, but during the winter months goes down to 65%. The Beachheads Hotel has peak season occupancy of 90% and off peak occupancy of 50%. Joe is the General Manager of Sunrise Hotel and has been in his current position for 5 years. He has been with Sunrise Hotel for a total of ID years.
He worked his way up at Sunrise Hotel from front desk agent to front desk supervisor, and finally to Assistant General Manager before he became the General Manager. He does a good job of screening potential employees for his front desk area of the hotel cause he realizes the importance of that area of the hotel, especially in tourist areas. He also has incentives set up for excellent performance of the front desk agents and training and development programs designed to give everyone information that will help them do their job better.
There is a sense of teamwork at Sunrise Hotel and that helps everyone want to do a good job. His guest satisfaction ratings for his hotel are overall excellent. On a rating scale of 1-10, his hotel averages a 9. The average length of tenure of his employees is 4 years, and his current front desk supervisor was promoted room within, along with his Assistant General Manager. Because of the small size of the hotel, Joe is actually involved with all of the hiring decisions and helps to give training programs himself, along with his leadership team.
The employee turnover at the Sunrise Hotel is 25% overall and that is primarily when hourly employees graduate high school or college and leave the Sunrise Hotel for a career somewhere else. Brian is the General Manager of the Beachheads Hotel and deals with a very different situation. Brian was brought in from another hotel in the same hotel group about 6 months ago. He was told by his boss that he needed to “fix” this hotel that it would start having better customer satisfaction ratings and more return guests.
Despite the fairly high occupancy noted during peak seasons, the off peak season occupancy is only 50%. Also noted by his boss, the occupancy should be as good as the Sunrise Hotel. Brian has been with his hotel group now for 2 years and he came out of the accounting and finance department in his old hotel. He has a great understanding of the numbers in the lodging industry, but has not been involved with the human resource aspects of the job. The remover of hourly employees at Beachheads Hotel is 120% and that means that Brian is constantly running the hotel shorthanded and with new employees.
The Beachheads Hotel has been doing the hiring through a human resource practitioner in the hotel that was put in the position because she really could not handle serving guests at the front desk very well. Mary was promoted to human resources a year ago after she had one too many altercations with the guests at the front desk. The owner of the hotel wanted to make sure that she would not make any of the other guests angry, so he promoted her to a human resources practitioner. Since that time, she has been busy trying to keep up with hiring and she has had no time for training employees.
Because she is so busy, paychecks often come out to employees late, there are no policies written down for employees to use as a guide for performance, customers are treated badly by new and poorly trained employees, and the departments of the hotel do not communicate very effectively and therefore everyone blames everyone else when things go wrong. The average length of tenure of the front desk agents at the Beachheads Hotel is 3 months and the customer satisfaction rating at the Beachheads is a 6 UT of a 10 possible rating. Most of the front desk agents that are hired come from other hotels in the area after they quit or are fired.
Brian is not involved in the hiring for the hotel at all, and does not get involved with training and development. He spends most of his days looking at the financial reports for the hotel and analyzing average daily rate, occupancy rates, and REVEAL. Brian knows that he has many problems to deal with and so he goes to the Sunrise Hotel to observe things over there for a while. He sees a happy crew and talks to Joe about how he is making that happen. Joe is happy to help, but ants Brian to go back and observe his employees first and come up with ways that he specifically can help guide Brian. What systems should Brian implement in order to start changing the human capital practices in the Beachheads Hotel? In order to start changing the human capital practices at the Beachheads Hotel, there needs to be a serious shift in the culture there. Since Brian did not have any human resources background, he does not get involved in hiring, training, and ensuring that these functions are used to build a stronger service culture. Mary, the HRS practitioner, was put into place because she could not work with customers, yet she is now in charge of the internal customers in the organization, the employees.
Brian needs to get involved in building a stronger culture by making sure that he works with Mary to make sure that she is focused on people and creating a positive atmosphere. Investments need to be made in training and development of the people currently employed at Beachheads Hotel and also in the new people to build a committed workforce. 2. ) What could Brian learn from Joe in terms of the human capital aspects of running a hotel? Brian should start out by learning more about the human UAPITA in his own hotel first and getting himself immersed in the people of the company.