Labor Negotiating Practices
The issue of labor negotiating practices is one of the most important issues that companies must address. This is because the sensitiveness of labor problems is reflected in their legal implications. The battle between employers and employees becomes more and more difficult and requires advanced negotiation skills.
Company's Stance towards Labor Issues
The company that is analyzed in this case is represented by the companies that joined their forces in order to purchase Twinkies and other important brands from Hostess in their attempt to invest in their revival. These companies are represented by Metropoulos and Co. And Apollo Global Management. The potential of these brands has been acknowledged by the two companies that are interested in opening up new production plants. This means that they will hire a large number of employees. However, the issue in this case is that these companies are not interested in allowing employees to develop unions. The company that previously owned Twinkies, Hostess, had difficulties into managing its relationship with the union.
The standoff between the union employees and Hostess Brands was so powerful on several levels that the company's owners decided to sell the business. However, a court of law has ruled that Hostess managers are entitled in receiving bonuses in this case. Therefore, the new owners are interested in reducing such problems by not allowing the development of unions.
This also means that the company is interested in addressing a different approach in negotiating labor relationships. It is likely that the new owners can consider that the direct relationship between the company and its employees, with no unions representing employees can lead to better results.
Labor Agreement Negotiation Strategy
It is difficult for large companies, with numerous employees to directly manage their relationship with employees. The company must be extremely careful in managing this relationship in order to not develop a sense of inequality within the company. This is because this inequality has been identified as an important effect of not developing unions that mediate the relationship between the company and its employees.
Therefore, it is important that the strategy developed by the company is able to address the effects that are determined by workers not organizing themselves in unions. The company's managers expect that the new workers they hire will not be represented by unions. The owners stated that they are interested in hiring employees that are not union members. This is because the previous owners had difficulties in managing their relationship with union members. Therefore, the new owners consider that they can better collaborate with employees that are not union members, and that do not have their opinions corrupted by the interests of union managers.
However, this can be a difficult to reach objective. This is because members of the bakers' union state that they are the only qualified personnel that can use the equipment required by producing Twinkies and other products of the company. This gives the leverage to union members on some point (Feintzeig, 2013). But the new owners are confident that their recruitment and selection process can identify skilled workers that can successfully use this equipment. This mean that the company must develop a recruitment and selection process that can identify skilled workers that can use this equipment, or invest in training programs intended to train unskilled employees into successfully using them. It is difficult to evaluate which is the best alternative.
In addition to this, the company has difficulties in determining whether it is possible to find as many workers as needed by improving production that are not union members. The company's owners have also stated that they are likely to outsource some of the activities and process required by the company. This mostly refers to distribution, transportation, and sales force. It is important to determine the effects of this strategy on the production process.
Therefore, the company's owners must evaluate what the percentage of union members it is likely to hire for its activity. Based on this analysis, they can determine what the best negotiation strategy can be. This strategy must be developed based on what the company is interested in obtaining from this process.
Economic and Administrative Issues during Collective Bargaining
The negotiation process regarding the workforce that the Twinkie owners must hire can be significantly influenced by unions. Given the fact that the company intends to hire non-union members, it is expected that this process will not be disrupted by economic or administrative issues. The collective bargaining process will not take the form of traditional collective bargaining. The fact that employees are not union...
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