Below is a situation which many companies often face in today's competitive scenario. At a manufacturing company called Kalapashe, the Union had given a proposal to Management for a 20 % hike in wages. The collective bargaining process was still going on. The Industrial Relations Manager was clever, he called for an immediate meeting with the Union. He tried to put the state of affairs on the table before the Union and asked them to find a solution. This is what he presented to the Union • The input prices (cost of raw material, electricity, water etc.) have gone up by 10 % • Due to competition the company has to reduce the product price by 10% • At the same time the shareholders are also expecting 5 % more returns from the existing 15 %. The IR manager puts forward the above circumstances before the union and asked them to give a solution. Your Task: Use your Industrial Relations knowledge to determine areas that you can explore to find an amicable solution.
Below is a situation which many companies often face in today's competitive scenario.
At a manufacturing company called Kalapashe, the Union had given a proposal to Management for a 20 % hike in wages. The collective bargaining process was still going
on.
The Industrial Relations Manager was clever, he called for an immediate meeting with the Union. He tried to put the state of affairs on the table before the Union and asked them to find a solution. This is what he presented to the Union
• The input prices (cost of raw material, electricity, water etc.) have gone up by 10 %
• Due to competition the company has to reduce the product price by 10%
• At the same time the shareholders are also expecting 5 % more returns from the existing 15 %.
The IR manager puts forward the above circumstances before the union and asked them to give a solution.
Your Task:
Use your Industrial Relations knowledge to determine areas that you can explore to find an amicable solution.
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