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`WAGE AGREEMENT`
In union-management relations collective bargaining is essentially a power relationship. It is through the implied and actual use of power that parties are compelled to resolve their conflicts and this was also true when Pioneer Plastics Ltd. (PPL) management started negotiations with Amalgamated Plastic Workers Union (APWU) for renewal of a wage agreement. PPL is a small-size industrial unit and had been in existence for over 30 years.
Sudar Singh, the new Managing Director, was surprised at the list of demands by APWU`s Secretary Ali Ahmed, a non-employee, and hs tenacity for firm stand. Throughout the six-hour session Ahmed exhibited his strength as a great organiser of workers.
Three years ago, PPL had embarked on a new strategy of producing large size containers to meet the demands of expanding edible oil market and has plans for developing new industrial products, and because of this the number of employees had doubled during the last four years, to about 120.
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Questions :
(a)What information Singh needs to prepare for the next session with APWU?
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(b)What past practive of poor relations can you identify?
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(c)What strategy or strategies would you suggest Singh to use ? Should he `take a strike` or try to avert it, why?
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(d) What could be done to develop more effective labour relations on a long-term basis?
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