The Zinnia - Contract Negotiation Company 1

Case Summary

  • Union Position
  • Management Position
  • We covered 12 items out of 13.
  • We spent too much time on healthcare
  • Spent too little time on vacation and retirement
  • At the end of the negotiation, overall everyone was satisfied.

Laws/ Regulations/ Agencies Involved:

  • WARN Act
  • Family Medical Leave Act
  • Fair Labor Standards Act
  • Minnesota Department of Labor and Industry
  • Affordable Care Act
  • IRS
  • Labor-Management Reporting and Disclosure Act

Management's Position

Probationary Period

  • New Hire - 90 Days
  • Promotional - 30 Days


  • Maximum 2 weeks in advance
  • Minimum 1 week in advance

Vacation Time

  • Add 5 Days at 5 Years
  • Add 5 Days at 15 Years


  • Overtime Hours will not exceed 52 hours per year, per employee.

Full-Time Classification

  • 30 hours/wk

Consecutive Days Off

  • 2 Days off for every 5 consecutive Days Worked


  • Increase Contribution Rate Per Hour by $.05 every year


  • Employer Contribution: 60%
  • Employee Contribution: 40%
  • 3% Annual Wage Increase

Employees'/ Union's Position

  • Union wanted 5% wage increase per year
  • Health Insurance: Dependents covered, Lower Prescription co-pays, eye care, and dental care.
  • Vacation: 2 weeks after 1 year/ 3 weeks after 4/ an additional week for each 4 years of service.
  • More holidays
  • 7 day posting for work schedules
  • Double time for 7th consecutive day of work.
  • Day Care
  • 6 Months notice for shut down
  • No Subcontracting
  • Certain amount of days for immigrants to go back to home country and get Visa.

Contract Results

  • Wage: 5% increase each year for 3 years
  • Probationary Period: 60 days for new hire, 30 days for promotion
  • Healthcare: 60% Paid by Employer, 40% paid by employee. While the Employer will now pay for the dependants of 76 employees. 50% of dental paid by company
  • Full time work: 30 hours a week, all current employees will keep their same benefits
  • Daycare: promise to look into a daycare during contract term (good faith) search for company to fill retail space to provide a daycare
  • Maternity: 12 weeks of paid maternity leave at 55% of average pay
  • Overtime: There will rarely be O/T because 5 days on and 2 days off scheduling. In the event, on 7th consecutive day there will be double time given out.
  • HRIS: Agreed to 5 days on, 2 days off
  • Scheduling: 2 weeks notice- reserve right to change schedule 1 week prior
  • Notification: 90 day notification of potential shut down
  • Retirement: Increase retirement 5% per year
  • Holiday: 9 days to choose from out of 15, with a 3 week notification

Conclusion/ Discussion

  • Overall both sides were satisfied.
  • We can't agree to 50/50 on co-pays
  • HRIS implementation should have been an assumption
  • "Promise" to look into a Day Care
  • 1 time-out was taken
  • Better Time-Management was needed
  • More research could have been done on other side's potential items and positions
  • Grandfathering in employees who were part of previous contract in regards to full time employment

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