The Dairy Company is proud to be one of the most successful companies in the country that provide milk-based products to Australian customers as well as oversea. As we look at the future of the company, it is necessary to restructure the company body frame, strengthen employer-employee relation, the main endowment factor of our company. It is important to come to the satisfactory agreement that could benefit both parties.
Dairy Company Goals:
1. The agreement upon the appreciation in salary is to be indicated during the life of the agreement. 2. Training module to be provided to employees
3. Develop an efficient hours roster
4. Maximize the duration of the agreement
5. Consultative Committee structure and confidential information
Dairy Company Strategies
Daily Dairy is very well aware of the important of employees, the undeniable part which largely contribute to company’s benefit. The company feels that it must develop a solid agreement to benefit every single contributor, but it also wishes to remain flexible and open to new changes and to the variation of demanding market. An integrative agreement is much needed. ”Most negotiators would prefer to be involved in the more integrative approach to bargaining, which is a good choice as the research generally suggests that the integrative approach yields better results” (Walton and McKersies’s 1965)
1. The agreement upon the appreciation in salary is to be indicated during the life of the agreement. As the recession coming up, the prediction of 10 to 20% of employees will be cut down to reduce expenses and raise a significant amount to capital. A part of the surplus amount e contributed to the capital will be added to the current salary. The purpose of this appreciation is to enhance the life standard of each individual, furthermore improve the productivity of employees and production line of Daily Dairy in general. The appreciated proportion will be determined by the proved contribution towards improved productivity of each individual performance.
The total amount increase benefiting employees is predicted to be 5% rising from 65%-35% between company and workers to 60%-40%. As the disappointing productivity in recently month, employment diminishing is inevitable but to encourage these employees by adding more shared benefit, we believe it could improve the general production line. We believe that the agreeable rates can be determined by reasonable flexibility from both sides and are prepared to offer several concessions of our own. Fell stated in his Clear-cut compromise strategy that “the split different between what you and other party want, so both get something, and neither of you gets all that you wanted”. (Fells,R.E 2012).
2. Training module to be provided to employees
Training opportunities are already given for potential employees. The quantity can go up or down depend on the availability of vacancies. However, we agree to give more training opportunities to employees for contingency problems, and upcoming expansion. As we have stated above, the salary appreciation is counted based on individual performance. Workers will be paid upon the contribution of their work, not for the skills they hold.
3. Develop an efficient hour’s roster
We believe that in order to achieve productivity, efficiency rosters are much needed for each individual. A pattern has been build up to achieve efficiency from both company and employees. In this pattern, both parties specify their requirements, limitations and thus come to an agreeable terms. For this instance, Daily Dairy required each employee to fulfill 38 hours per week with an optional of working overtime. Alternatively, employees can state their preferred working time, number of overtime hours. Agree to these terms, Daily Dairy will make sure providing the best possible roster to each individual, and employees are obligate to fulfill what has been agreed upon. In return, we need employee to be flexible to new roster in the time of increased demand; seven day notice will be given to any changes in roster.
By optimal the employee rosters in ordinary business day, we satisfied their needs thus we can expected improved in productivity. Furthermore, in the time of need, we also can expect the same productivity from employee regarding the changes in roster. It’s the win-win situation that Daily Dairy wants to achieve. “the win-win situations exist where some value are created that did not exist, or seem to exist when the parties first started negotiating”.(Fells,R.E 2012).
4. The duration of the agreement
The longer the duration of the agreement the better off for our company. At first, Daily Dairy can avoid dissipating both human and money resources on these repeatable problems and focus on more pressing matter. Secondly, with a predictable fixed in labor cost, we can achieve more stability and further benefit toward company, money in general. In short-run, wages could not reflect the price-level change (inflation rate), so worker are actually work under wages. In short, while the labor expenses are fixed, our profit is variant, the different will benefit us in the long run. We want to achieves 4 years agreement. Thus we should make the initial offer and it should be higher than 4 years. “A first offer tends to become an anchor for the negotiations, so going first has aan advantage ( Galinsky & Mussweiler 2001; Magee, Galinsky & Gruendeld 2007)
5. Committee structure and confidential information
Employees are the main skeleton which structures the appearance of company. With this in mind, we want to build a most effective joint workplace committee that enables the possibility to have a mutual understanding between company and workers. With a consultative role, committees can provide management with worker viewpoint before decisions about the workplace are made. Recognizing that the current industry is very competitive and maintaining secrecy about Daily Dairy’s strategic information is the most important, confidentiality information must be kept safe from outside world which includes committee. “The trust required in these specific situations is separate from whether the other negotiators are inherently trust worthy” (Fells,R.E 2012). The benefit returns is not worth the risk.
We have showed our reciprocity in some matter and also in some we stand a firm ground but after all, we believe that these concessions show our good faith and will enhance a mutually beneficial relationship between our company and employees. We hope this agreement would result in a significant amount of productivity growth, and would also serve to strengthen our infrastructure and our mutual benefit as a whole.
Fell,R.E. (2012), ‘Trust: Situation-Specific’ , Effective Negotiation (2), pp.29 Fell,R.E. (2012),’What , exactly, do we mean by a win-win negotiation?’, Effective Negotiation (2), pp.40
Fell,R.E. (2012), ‘Stategic choice :A negotiator’s choice of issue strategy’, Effective Negotiation (2), pp.46 Galinsky, A.D. & Mussweiler, T. (2001), ‘First offer as anchors: the role of perspective-taking and negotiator focus’, Journal of Personality and Social Psychology, 81(4),pp.657-69
Walton, R.E., & McKersie, R.B. (1965), A Behaviour Theory of Labour Negotiations, McGraw-Hill, NewYork
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