I don’t know how to handle this Management question and need guidance.
Bayside Foods is a large grocery retail outlet in the community. The city has a
population of 50,000. Bayside Foods has approx. 210 employees that fill 144 positions.
There is a vast array of employment opportunities in the area, including retail, health
care, education, banking, insurance, manufacturing, restaurants, fast foods and
government. The hospital and manufacturing companies in the area have union
representation. There are two separate unions representing these industries. Health Care
Representatives (HCR) is the union representing the hospital and Workers Choice (WC)
is the union representing the manufacturing companies. The unemployment rate in the
area currently is low, around 5%. With a lower unemployment rate, there is competition
around the area for good employees.
Bayside Food is the largest employer in the retail food and grocery market for the area.
The store is open 24 hours a day, 7 days a week. A summary of the positions, number of
FTE’s (Full Time Equivalents) and salaries are as follows:
Executive Director 1.0 $135,000
Finance Director 1.0 90,000
Operations Director 1.0 80,000
Department Managers 10.0 483,000
Business Staff 6.0 201,000
Janitorial Staff 12.0 300,000
Storeroom 15.0 414,000
Customer Service 14.0 408,000
Clerks 84.0 2,447,000
Department managers: Responsible for a specific area, such as produce, bakery, meats,
dairy, frozen foods, etc. There are a total of 10 departments, which each having a
manager. Responsible for managing staff, ordering inventory for their department,
managing their budget, working with vendors, working with customers, working on
promotional activities for their departments
Business Staff: Includes all business functions such as payroll, accounts payable,
Janitorial: Responsible for cleaning and sanitation of the store
Storeroom: Responsible for receiving goods off the trucks, stocking in the storeroom
Customer Service: Responsible for checkouts
Clerks: Work in a specific department, such as meat, produce, bakery, etc. Each
department has clerks, who work under the department managers. Clerks are staffed 24
hours a day/ 7 days a week. There are 3 staffed every day during first shift, 2 staffed
every day on 2 nd shift and 1 staffed every day on 3 rd shift for each department. They are
responsible for stocking the products in their department, and assisting customers. They
rotate products in their area so product does not spoil or is not outdated.
Total budget for Bayside foods for the upcoming year is $13,000,000. Of this,
$4,558,000 is salaries (detail above) and $1,140,000 is employee benefits. The detail of
these benefits paid by the company is: Health insurance-$393,000, Retirement Fund –
183,000 (contributes 4% of salaries on employee behalf), FICA-$348,000 (required
benefit-7.65% of salaries), Workmen’s Compensation premiums-$100,000 (required
benefit), Unemployment compensation premiums (required) $20,000, Disability
Insurance $96,000. Employees receive 1 week vacation after 1 year, 2 weeks of vacation
for years 2-7, and 3 weeks of vacation after 3 weeks. Vacation benefits are for full time
employees. Part time employees do not receive vacation. All management positions are
full time. The remaining job categories have both full time and part time positions. The
store employees a number of students. Each department manager is responsible for
hiring and staffing of their area. No sick time is currently available, so if someone is sick
or needs time off, they can take a vacation day or no pay. Part time staff fills in for full
time staff when they are on vacation. The store closes on Christmas Day and
Thanksgiving. Full time staff receives holiday pay for these days, part time staff do not.
Full time staff also receives holiday pay for Memorial Day, Labor Day, July Fourth, and
New Year’s Day. Part time staff work these days, and are paid for working but do not
receive anything extra for holiday pay. Current premiums for health insurance that staff
pays are $200 per month for full time staff for family plan and $100 per month for full
time staff for a single plan. Part time staff is not eligible for health insurance.
The current shifts are: Days 8:00 am to 4:30 pm, 2 nd shift is 4:00 pm to 12:30 am, and 3 rd
shift is 12:00 am to 8:30 am. Included in the shift is a 30 minute unpaid meal break and a
15 minute paid break for the full 8 hour shift. Part time staff generally works 4 to 5 hours
shifts on the weekdays and 8 hour shifts on the weekends and holidays.
A recent vote went through and the WC Union was voted in and will be effective to
represent employees at the start of the year. Potential bargaining units are janitorial,
storeroom and clerks. Many of these positions are staffed with part time employees. The
customer service staff is not in yet, and management is trying to keep them out. The
union is still trying to get them in. The union dues for the staff in the union will be $30 a
month and all staff being represented by the union are required to join and start paying
dues upon being hired.
In addition to the budget indicated above, management has indicated there is $350,000
available for increases in salaries and benefits.
Management and Union will be negotiating a contract that will be effective January 1. It
is now July 1. This is the first contract. The only knowns for the contract at this point are
the union dues indicated above and the three groups that are for sure part of the union.
Prepare a union contract. A management planning schedule should also be included.
The student will determine the content of the contract and what the negotiated items are.
The amount available for the entire organization for salary and benefits is indicated
above. A summary should be included in the project that indicates how the available
funds will be distributed between salaries and benefits and between union and nonunion
employees. Be creative. As the job market is competitive, the benefits that are available
may not be the best benefits. This is an opportunity for the creation of new and
Recommended layout for the project:
Summary describing the negotiation process (estimated 2-4 pages)
Management Planning for Contract Negotiations Document (estimated 1 to 2
Summary of the distribution of the available funds for salaries and benefits
($350,000). Indicate in this document the nonunion group of staff and the union
group of staff. (estimated 1 page)
Union Contract (number of pages will vary depending on what all is negotiated.
Pages 387-405 in the text has an example).It is estimated this contract will be
shorter than the contract sample in the text, but still should include detail.
(Estimate 9-13 ages)
The final document should be a formal document that appears professionally prepared.
The final project/assessment is due at the close of the course in week 8. The assignment
will not be accepted after this time. Please post to the drop box in week 8 in the
assignment section designated for this assignment.