Blooming Labor Dispute

To begin this assignment, I would file a specific and proper request for the review of the parties’ positions and try to find out the common ground before the negotiations. I would also establish the timelines when the negotiation process should begin and the expected time for reaching an agreement. This would also include possible extension of time in order to allow for a fair agreement. This would allow all the parties to be assured that their positions will consider the arising differences and with enough time.

In determining the viability of the benefit change, it would be important to examine the reasons for the employer to opt for defined contribution plan and the effects such changes would impact on the parties’ relationship. The other information that would be needed include relevant compliance with the rules and laws by the state and the federal system. Hence, it would be necessary to ascertain the facts and basis on which the changes are founded (Trapp, 2013). Making a decision on factual basis would make it viable to the employer and the union.

The other reasonable alternatives to mandatory defined contribution includes the target benefit and money purchase plans which may offer different ways of deferred compensation structuring and give employers various options when deciding on retirement package. Profit sharing with an option for salary deferral comes with discretionary contributions (Texas Pension Review Board, 2012).

The best decision in the negotiations is for the employer to adopt the defined contribution plan which would offer the employees the power to direct it, while ensuring the burden by the employer is easy. This means that adjustment would be made by the trade union on behalf of employees.

Reference

Trapp, M., M., (2013).Going Through Withdrawal: A Step-By-Step Guide to Arbitration in Multiemployer Withdrawal Liability Dispute. ABA Journal of Labor & employment law.  145

 

Texas Pension Review Board, (2012).A Review of Defined Benefit, Defined Contribution and Alternative Retirement Plans. Retrieved from: http://www.prb.state.tx.us/files/reports/areviewofdbdand.pdf