Referencing Styles : APA Q1) Fixed term agreement Sony works for South Auckland Institute of Business; she was pregnant and went on a maternity leave. In order to fill the gap, the organisation hired Shirley on a full time basis. However, when Sony was returning from her Maternity she was told that they don’t need her anymore as “Shelly has taken over” and her performance has been extraordinary, in fact much better then what Sony was ever able to produce. She was told that is now a surplus to the requirement. Question: Advise Sony if the employer is correct in taking that decision (3 marks) Q2) Casual and part time David has a family business specialising in winemaking. Since his 2 adult children now want to locate to Australia, he needs 2 workers to assist him at his winery in Waiheke Island. He needs one worker for 3 hours per day, 15 hours per week in total and the other worker for the summer only when there is a peak in business activity. Question: Advise David a) With full justification on the choice of employment arrangement, he should use for both the workers ( 2 marks) b) What does it mean when a casual employee can drift into a permanent employee ( 2 marks) Q3) Trial period Ravi was employed on a fixed term contract for 6 months at a local accounting firm. After 6 months were over he was told by the manager that they were pleased with him and offered him full time employment. The new employment agreement did not contain any trial period clause. Ravi was delighted, however after 2 months of working the manager told him that they are not happy with his performance after giving him full time; the manager stated that “he has slacked off”. Ravi was told not to come to work anymore and that he was on a 90 day trial period when he was offered the full time contract. Question: Advise Ravi whether the manager is right under the law relating to trial periods. (3 marks) Q4) Union membership Lin works for a leading fast food company franchise in Auckland. He joined the union as he was pressured by his workmate who helped him get a job there. After 6 months of employment Lin wanted to opt out of his union membership as one day after work while having a drink at the bar with the manager, the manager said that he can get him a pay rise if he opts out of union membership. The manager said unions are nothing but a nuisance and that Lin should stay out of it. His mate said that he is not a team player and that he has let him down. Further Lin was told that he will have to pay a penalty to the union. Question: Discuss the legality of Lin’s friend’s behaviour and the manager in relation to what you know about Union membership. (3 marks) Question 5: Negotiation - Lo5 (20%) Read the case studies provided below and answer the questions at the end of each case study Case Study 1: Creating and Claiming Value Background: Steve is a senior IT Development Consultant and Team Leader at MBS Enterprises, subject to an individual Employment Agreement. Although Steve found his work to be satisfying, he never really found the time he needed to take stock and see if he was being paid his true worth. Projects were never ending and always somehow high priority and urgent. So after being badgered by his partner, Steve told his employer that he was going away for a long weekend, and used his time to search the internet for positions offering comparative salaries in similar companies. At first Steve felt uncomfortable about the thought of leaving his employer, and persuaded himself that he was “just gathering information”. Steve’s job discoveries surprised him. Despite his annual salary reviews, Steve found he could possibly get 15-35% more. Unsure of whether the jobs were that similar, Steve decided to contact the companies and agencies responsible for placing the advertisements. Steve wrote his most important questions down, and then took notes from each confidential telephone conversation. Some were ruled out for requiring relocation or unsociable hours. The three positions that remained were just too interesting not to take further. So Steve interviewed for these positions, still just curious to know what he was really worth. After receiving attractive written offers from two companies, Steve decided to go back to have a talk with his current manager who then arranged for Steve to meet with the whole management team to discuss the conditions of his employment agreement which in particular referred to his salary package. Negotiation Process: Before the week of the meeting, Steve wrote down his objectives, two of which included creating and claiming value. His aim was to create value by listening very carefully to the employers needs and interests (expanding the pie), and claim value by getting his needs and interests met. While preparing for the meeting, Steve’s partner advised him to adequately identify his interests and prepare a BATNA (Best Alternative to a Negotiate Agreement) as these were the two factors that keep most negotiations from being as effective as they could. Steve made sure he knew his own unique selling points, and was clear about what skills, knowledge and experience he had to offer the company. He was aware that his success in negotiating a higher compensation package is contingent on the data he had already collected which suggests his market value is higher than what he is currently getting paid. Steve also knew exactly what he wanted and knew where he was willing to compromise by re-evaluating his total compensation package (base; salary, perks, bonuses, relocation costs). To his advantage, Steve was confident he knew the job and was positive that his skills and expertise were of great merit to the organization. It wasn’t easy to think seriously about leaving his company and team mates. Steve wrote to his manager requesting for a meeting on his wages. Within a week, the manager responded setting the meeting for the following week. In the meeting, Steve stressed on how much he enjoyed his job, and how he believed in what the company was doing and how he would like to continue his career with them. He shared that two recent more attractive offers were forcing him to reconsider his options, and asked what his manager could do to make it attractive enough for him to stay. Steve felt that he was realistic about what he wanted and stated his evidence to clearly prove why he felt his salary should be higher. The negotiation was conducted in such a way that the flow of information was free and open and both parties shared information openly. Both parties made attempts to understand what the other side really needed and wanted. They focused their attention on commonalities and emphasized on common goals, objectives and interests. The negotiation process was one where the parties to the employment relationship dealt with each in good faith, which included not doing anything (directly or indirectly) that would mislead or deceive the other. Both Steve and the management team were active and constructive in achieving employment relationships in which the parties are, among other things, responsive and communicative. Both Steve and the management team focused their commitment to meeting the needs of all involved parties, exchanged information and ideas, invented options for mutual gain, used objective criteria to set standards, and kept decisions tentative and conditional until the final proposal was complete. Conclusion: As a result of the negotiation, the company realized how valuable Steve was to the company and a week later, Steve’s salary (including bonuses) were boosted by 30%, with most of his other requests (which had been dismissed in the past) honoured. Q5 a): Identify the legal framework applicable to such negotiations and provide examples of good faith which was demonstrated between the two parties. (5 marks) Q5 b): Discuss with examples from the case which style of negotiation was adopted by both parties. (5 marks) Case study 2 Trafalgar Breweries Ltd (TBL) is one of Nelson’s oldest companies. It has been family owned by the MacBlack family since 1886, and its current chairman is Hamish MacBlack. TBL’s ‘Horatio’s Special’ is a popular beer that has been successfully exported to Europe and the Far East in the past 10 years. With the high dollar value starting to have an effect on sales, TBL have struggled to keep up with demand although staff numbers have increased by 100% in the last five years. Traditionally, TBL management style has been paternalistic and the workforce has generally been content with this set up. However, in the last few years, as staff numbers have grown and more professional managers have been appointed, the old ‘family’ feel of TBL has fallen away. Consequently, an increasing number of workers have joined the Brewery and Allied Workers Union (BAWU). With union membership now 60% of the non managerial workforce, BAWU organisers believe that they set the terms for the TBL workforce as a whole. The success of TBL has attracted the attention of certain large breweries. A recent article in the National Business Times suggested that it was likely that TBL would either list on the New Zealand Stock Exchange or enter into a private deal with Southern Amalgamated Breweries Ltd (SABL) which owns 80% of the breweries in the South Island. If a deal went through with SABL, the article suggested that some production process could be moved to Christchurch. Such a shift in production would enable TBL to meet increased demand but could also lead to around 50% layoffs in Nelson. Basic terms of employment (In practice, non unionised workers automatically receive the same terms as the collective agreement between TBL and BAWU. Although some long serving non unionised workers receive additional benefits, such as an additional 3 days annual holiday.)