Advisory Report

For Part I of this assignment, in your assigned you will use the Bush Corporation Information document and Bush Bargaining Information document (both found in the Week 4 – Content area). Based on your assigned team, you will either represent the management or union perspective.

The Legal Advisory Team will create and provide 2 – 3 page advisory report to each of the parties relative to the legal requirements and concerns for collective bargaining to include such discussions as good faith bargaining, mandatory topics, and inherent managerial rights.

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1. Objectives:
1) To allow you to experience the collective bargaining process.
2) To help you understand the skills necessary to successfully negotiate a
union contract.
Bush Corporation is a general aviation and business aircraft firm located in
a large western city, the company manufactures aircraft, aircraft parts, avionics
and other aircraft accessories in addition to providing aircraft maintenance and
overhaul services. The company’s major aircraft models – fanjets and propjets –
are generally used for business and recreational flying. The company’s products
have fared well in a highly competitive market. However, in the first half of the
last decade there has been a slump in the market for new general aviation
aircraft. Industry experts attribute this slump to high aircraft costs and
overcapacity in corporate flight departments. Many large corporations are
increasingly turning to on-demand charter flights to meet their business flying
needs. A combination of weak market demand and high product liability
insurance rates have plagued the industry and have forced many to cut back
production and lay off workers. Economic forecasts indicate that demand may
pick up in the latter half of the decade as international sales increase. Top
management at Bush is very concerned about keeping down labor costs in order
to remain competitive. Last year the company had to close down on production
line and lay off 450 workers for six weeks. The aerospace industry is becoming
increasingly automated, and Bush is planning to increase its use of robots in the
production process.
A majority of Bush’s 2,500 production employees, 2000, are members of
the International Association of Machinists. A relatively good labor-management
relationship has become somewhat strained because of the large-scale layoffs
last year. While the union is aware of the company’s economic situation, it is
most concerned with employment security and a better position in terms of
benefits. The present three-year contract (see Exhibit 7.2) is set to expire, and
contract negotiations are set to begin. Union and company bargaining proposals
are shown in Exhibit 7.3.


BushCorporationInformation BushBargainingInformation2


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