Sec A_Group4_New Union Wellington Associates - Final

04/08/2023Indian Institute Of Management Raipur

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Does Wellington Associates need a Union?

Nikesh Agarwal (12PGP030)Rajat Katiyar (12PGP034)

Rishiraj Singh (12PGP035)Sathiyasundaram (12PGP038)Suchishmita Roy (12PGP044)Tejit Mithal (12PGP046)

04/08/2023Indian Institute Of Management Raipur

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Agenda

• Summary/ Key Players

• Issues (problematic scenarios)

• Possible alternative solutions

• SW analysis for each alternative

• Proposed solution

04/08/2023Indian Institute Of Management Raipur

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Summary/Key Players

Organization under consideration: Wellington Associates (Analyzes high-tech industry)

Jane Wellington, Founder and CEO, presiding over the weekly senior management meeting.

Elvin Cusack, Head of HR, speaks about the possible union formation due to unhappy support staff.

A number of very unhappy clerical staff invited union

Neil Whetson, Head of IS, suggestion of firing them was not tenable due to legal and PR issues.

04/08/2023Indian Institute Of Management Raipur

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Whetson argues that they pay top dollar, provide flexitime, medical/dental plans, and day care center.

Cusack presented the view points of support staff: WA is a 2 tier company, differential treatment

between professional and support staff Initial pay good, but stagnant raise policy Flexitime not for support staff, depends on

managers Medical insurance and day care are

costly/unaffordable Support staff seen as easily replacable.No

internal promotion policy for support staff. Limited opportunities for furthering education.

Summary/Key Players Contd ..

04/08/2023Indian Institute Of Management Raipur

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At the bottom is the matter of Respect.

An example might be made out of WA by regional union leaders.

Wellington proposes to meet certain support staff, while others opine that they should meet attorney.

Wellington feels that this will add more friction, and that Support staff should have solved issues internally, willing to listen and compromise.

WA is not a kind of company that should have union.

Summary/Key Players Contd ..

04/08/2023Indian Institute Of Management Raipur

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Issues

How should Wellington and her colleagues react to the potential formation of the union.

An example might be made out of Wellington Associates by regional union leaders and hence they might put in a lot of efforts and money into it.

Wellington at a loss, regrets the distance between management and employees, wants to talk directly to support staff, but management opines that an attorney must be involved.

04/08/2023Indian Institute Of Management Raipur

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Alternatives

• Hire an attorney, do a legal analysis and then talk to SS, inform them about cons of Union (since they are well paid, union (which cites industry standards) might not be of much help) and come to a compromise without forming union

• Talk to people internally, listen to their problems and reach a compromise

• Identify the repercussions of firing influential employees of support staff, and take bold steps.

• Let the union be formed for the satisfaction of Support Staff.

04/08/2023Indian Institute Of Management Raipur

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SW Analysis(Hire an attorney)

Strength Weakness

Whole process will go in a legal and systematic way.

Situation can ruin more

Proper guidance to solve the issue by the attorney

Staff may feel more isolated and separated from the company

Change in Policy would take place which would benefit SS

More cost & time involved

Issue can become more public and can involve media and can hamper the image of company

04/08/2023Indian Institute Of Management Raipur

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SW Analysis(Talk to people internally, listen to their problems and reach a

compromise)Strength Weakness

Supporting staff will get back their self esteem.

Some of the staff members may take authoritative move.

Their problems of day care cost, medical insurances can be subsidized.

Can take undue advantages of flexi timing work model.

Management can give little flexible working conditions by few fresh hiring.

All the bargains given to supporting staff can cost very high to management.

The relationships between management and supporting staff will get strengthened.

Management may loosen the grip they had earlier over supporting staff and there can be more ego clashes.

Make the SS believe the cons of joining an Union

04/08/2023Indian Institute Of Management Raipur

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SW Analysis(Take bold steps: firing)

Strength Weakness

Will give a strong signal against voices of dissent

Firing their leaders may even make the situation worse.

May provide an easy solution May find it difficult to justify the action if summoned by court

Keeps the employer’s bargaining power high

It is very difficult to identify all influentialemployees.

It is easy to replace fired support staff

People cannot be suppressed for long. This will only increase the dissent among them

May hamper the company image in public

04/08/2023Indian Institute Of Management Raipur

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SW Analysis(Let the union be formed for the satisfaction of

Support Staff)Strength Weakness

All the support staff will regain their faith on Wellington Associates .

Union can function as labour cartels which restricts the number of workers , drive up the remaining workers’ wages.

They can fight for their right reasons, mainly earn more respect.

The average union member generally earns more than the average non-union worker.

Can bring out serious matters (medical insurance, further opp.)in front of management in a very effective way.

Union can effectively tax these investments by negotiating higher wages for their members, thus lowering profits.

They will work as per the rights and duties of staff under a union.

Unions can redistribute wealth between workers.

04/08/2023Indian Institute Of Management Raipur

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Best Alternative(Talk to people internally, listen to their problems &

reach a compromise)

• Enhance Mutual Trust between SS and Management

• Make SS believe that there is no additional benefit by joining Union

• Image of the company is not hampered• WIN-WIN situation for all• Will reduce attrition level further• Will result to more effective policy in the

company• More employee engagement

04/08/2023Indian Institute Of Management Raipur

Thank You…