Scoring System for Adam Baxter Company Negotiation

Topics: Incentive, Strike action, Employment Pages: 7 (2156 words) Published: February 23, 2015
Scoring System for Adam Baxter Company Negotiation                              Role: Management The maximum possible score within the system is 100, given that the Local 190 agrees to all changes presented by the management.

1. Worker autonomy and target production levels in new plant (maximum points: 30)   Points 1. Maintain same level of autonomy/maintain production level at 80%                                                0 2. Slightly reduce level of autonomy/increase production level to 90%                                                10 3. Moderately reduce worker autonomy /increase production level to 95%                                         20 4. Completely eliminate worker autonomy /increase production level to 100%                                   30

2. Group inventive system (maximum points: 25)
a. Maintain current incentive structure at 60% of base pay in incentive payments                               0 b. Reduce incentive structure to a maximum of 40% of base pay in incentive payments                      9 c. Reduce incentive structure to a maximum of 20% of base pay in incentive payments                     18 d. Completely eliminate the incentive payments to 0% of base pay in incentive payments                  25

3. Escalation clause (maximum points 10)
a. Maintain the current automatically have wages adjusted to CPI                                                        0 b. Defer the current automatic increase paid to when the new plant is operating at full capacity     2.5 c. Reduce the wage adjustment to only 60% of CPI                                                                                 5 d. Reduce wage adjustment to only 30% of CPI                                                                                    7.5 e. Stop the automatic increase in wages completely                                                                               10

4. Location of the new plant (maximum points : 20)
a. Keep the headquarters in Deloitte and locate plant outside of Deloitte                                            20 b. Keep current headquarters as well as plant within Deloitte + no strike pledge                                  0

*NOTE:Here we have to consider what would happen with the current employees if the plant is   relocated outside of Deloitte.

5. Wages and benefits (maximum points: 15)
a. Maintain same wage ($10.69) and same pay program and benefits                                                   0 b. Reduce current wages to ($7.69) and maintain same pay program and benefits                              5 c. Increase wages to ($11.69) and reduce other pay programs  by 30%, maintain benefits                   8 d. Increase wages to ($12.69) and reduce other pay programs by 60%, maintain benefits                  10 e. Increase wages to ($13.69) and reduce other pay programs by 90%, maintain benefits                  13 f. Increase wages to ($14.69) and eliminate other pay programs , maintain benefits                          15

*NOTE: given that the benefits are a norm within the industry we will not negotiate these term. Our focus will be on base pay as well as pay program. From the case each employee sometimes earn up to $21.38. In our case, option b results in maximum compensation of: $18.38, c: results in $18.17, option d:$16.96, option e: $14.759 and option f in only $14.69. This fully depends on how much risk we would want to transfer to the employees by having a portion of their pay vary In terms of the weights of the scoring system, the main issue for the management here is related to the: worker autonomy and target production levels in the new plant. This is given a weights of 30% of the total points achievable. Group inventive systems 25%, and  location of the new plant  20%, Wages and benefits 15%  and the escalation clause 10%. The escalation clause was given a lower rating mainly because inflation although it is estimated to be...
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