Case analysis

Striking for benefits

Presented by
Akhil
Akshara
Rahana
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Contents

Background 3

Key issues 4

Q&A 5-12

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Background

Sept 2003 the strike by southern california grocery workers

against the state major supermarket chains.

70,000 employees went on strike

unions and employers across the country were closely

following the negotiations.

3
Key issues

Employee benefits
Payment of health care cost to the employees
Good health benefit for Southern California grocery workers.
Separate insurance pool for new employees.
Issues in union.

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Q&A

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1.Assume you are mediating this dispute. discuss five creative
solutions you would suggest for how the grocers could reduce the
health insurance benefits and the cost of their total benefits package
without making any employee pay more.

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 Answer..

Business health insurance is a major cost of doing business, especially for

small companies as groceries

Grocery health insurance may take a huge amount out of the revenue, but
benefits often attract better employees and help retain existing workers.

As a mediator that struggling to provide health insurance, the

following solutions can reduce the small business health insurance benefits and
cost

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Answer..

Direct primary care physicians can partner with employers to

deliver affordable preventative and primary care on a fixed-monthly
membership model.

Provide wellness programs -These programs can help lower a

companys insurance costs by creating more health awareness
among employees and thus encourage them to take better care.

Prohibit smoking within the organization - Implementing a

comprehensive program that eliminates smoking during work hours,
assists employees in efforts to quit and incentivizes them to remain
nonsmokers can reduce your smoking population.
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Answer (cont)

Presenting employee
verification

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2. From the grocery chains point of view ,what is the downside of
having two classes of employees, one of which has superior health
insurance benefits? How would you suggest they handle the problem?

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 Answer

The problem with having two categories of employees

1. one of them having superior health insurance benefits
2. The other is paying a lot to get this service.

.This unfairness between the two classes will create jealousy and
resentment among these groups and thus, morale decreases.

.Administration costs will increase as there will be two forms of health

benefits to employees.

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3.Similarly,from the point of view of the union, what are
the downsides of having to represent two classes of
employees, and how would you suggest handling the
situation?

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 Answer..

There are two major problems faced by the union;

1. Already existing employees will feel that they were sold out by the union.
2. Loss of faith in the union.

Thus, there will be a high chance of having a strike by the employees in different
fields that will be against the union.

So, the union should treat this issue carefully to avoid.

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