Team 3: Collective Bargaining Agreement Curtis Miller, Graham Mumaw, Angela Pacitti, Acacia Quarles, Kenneth Rousselo, Sara Tharpe, Morgan Thurmond

Case Summary

  • The Zinnia hotel, located in Minneapolis, MN
  • 300 Rooms and 167 employers
  • Current contract expiring, Management and Local H-56 Union bargained on December 8th, 2016.
  • Assumptions agreed upon prior to bargaining
  • The new contract will last until hotel is under new ownership

Laws/Regulations/ Agencies

  • State minimum wage law
  • Affordable Care Act
  • Employee Retirement Income Security Act
  • Title VII of the Civil Rights Act of 1964
  • Family and Medical Leave Act
  • Fair Labor Standards Act
  • Human Services Licensing Act
  • Maltreatment of Minors Act

Management's Position

  • The Zinnia will be negotiating other contracts next year
  • Reputation
  • The owner Ms. Baldercash pressure not to increase labor cost

Employee's/ Union Position

  • Rank and File demands
  • Union feels like all employees are overworked, underpaid, underinsured
  • Employee's unhappy with ownership and picket outside her house

Contract Results

  • Healthcare: $2.90 contribution by employer per year
  • Wage Increase:
  • Year 1: 3.5%
  • Year 2: 2.5%
  • Year 3: 2.5%

Contract Results

Pension Contribution

  • Year 1: .45 cents
  • Year 2: .50 cents
  • Year 3: .50 cents


  • 5 weeks of paid time off upon completion of voluntary cross-training program

Contract Results

Work Schedules

  • 2 Week Notice


  • 2 months required for warning shut down


  • 10 minute mandatory meeting at beginning of each shift including management and union representative.


  • 50% discount on food covered by the company for employees

Contract Results


  • Employees have an option to take six "floating" holidays off


  • Company is covering 100% renovation costs and 50% of childcare costs

Discussion/ Conclusion

  • Substantial compromises beyond BATNA
  • Management gave too many vacation days, more money towards 401K Contribition
  • Management received cross- training proposal
  • Union settled too quickly and for too little wages and did not receive double time for holidays
  • Solid compromise on: Healthcare, Daycare, Work Schedules, Meetings Notifications, and Meals.
  • Financial Costs after changes over 3 years: $53,504,818.69
  • Net Income of 3 year contract: $2,528,530.03


Created with images by stevendepolo - "Seidman Boardroom" • Greencolander - "hotel" • drtel - "hotels" • jill111 - "bedroom window france interior" • delgaudm - "Hotel Monaco" • Ben Husmann - "View from my door, 8pm" • Ben_Kerckx - "hotel gang perspective" • Orca - "hotel high stone" • rkit - "staircase hotel building" • bboylanky - "Fullerton Hotel"

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