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Labor/Management Negotiation: A Simulation Activity

General Information for Union and Management

The current contract expires tonight at midnight. Both sides have agreed to one last negotiating session. The three issues still unsettled are wage rates for engineers, vacations, and the workweek for rail yard workers. The current contract provides for the following:

Wage rates for engineers:
$450 per week for one year
$550 per week for years two through five
$750 per week for years six through ten
$1000 per week after ten years
Vacation for all union employees:
  • one week in year one
  • two weeks in years two through four
  • three weeks in years five through ten
  • four weeks after ten years

Workweek for rail yard maintenance workers:
Forty-five hours per week of regular time, with time and a half for any work in excess of 45 hours in a week; management has the option to arrange the workweek so that part time employees work in place of employees who have reached 45 hours in a particular week so as to eliminate some of the overtime pay
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