HR Case

"They want what?" the mayor exclaimed. "Like I said," the town clerk replied, "17 % over two years."

"There is no way that the taxpayers will accept a settlement anywhere near that," reiterated the mayor. "I don't care if the garbage doesn't get collected for a century. We can't do more than 8 percent over the next two years." The town clerk looked worried. "How much loss of service do you think the public will accept? Suppose they do go on strike? I'm the one who always gets the complaints. Then there's the health problem with rats running all over the place!

Remember over in Neibringtown, when that little kid was bitten? There was a hell of an outcry."

The mayor agreed.  "Garbage collectors always have strong bargaining power, but, if I don't fight this,

I'll be voted out in the next election. I say we offer 6 % over 18 months.

Then we can go either way - 6 % over 12 months or 8 % over two years."

"I wonder if we have any other options?" worried the town clerk.

"Well, we could threaten not to hire any more union personnel and to job out the collection service to private contractors if the union isn't cooperative," mused the mayor. "That's a good idea!" The town clerk sounded enthusiastic.  "Also, we can count a newspaper advertising campaign to get the public behind us.

If we play on the fear  of  massive  tax  increases, the  garbage  collectors  won't  have  much  public sympathy"

"What about asking the union to guarantee gar­bage collection for older citizens during a strike?

If they refuse, they'll look bad in the public eye; if they accept, we are rid of a major problem.

Most people can bring their trash to a central collection point. Not all older citizens can," chuckled the mayor. "We can't lose on that issue!

 "Okay then," said the town clerk. "It looks like we have the beginning of a bargaining strategy here.

Actually, I feel better now. I think we're in a rather strong position."

QUESTIONS

1. Discuss the plight of public sector unions faced with the reality of a limited tax base and public pressure to lower taxes.

2. Is the town clerk right? Is the town in a good bargaining position? Explain your answer.

3. What strengths does the union have in its position?

4. If you were a labour relations consultant, would you agree with the present strategy? What alter­natives, if any, would you propose?