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Adam Baxter Corporation Case Summary

624 Words3 Pages

Recently, Austin Bean and I, as Human Resources representatives had the opportunity to meet with representatives of the Local 190 Union to present and discuss Adam Baxter Corporation’s response to their demands, regarding the new employees union’s contract. As a result, we agree on a new contract valid for the next 3 years from today’s date. This new agreement valid from March 15, 2017 to March 15, 2020 is as follows: 1. In regards to the demands of an hourly pay increase from $10.69 to $11.69, we discussed the current industry status, the domestic and world market instability, and how our competitors are in general, struggling with massive pay cuts and layoff due to the current financial environment. Furthermore, we discussed that a pay …show more content…

We also agree with keeping the current employees with the same pay rate of $10.69 and a bonus of 3months of pay for all those employees that which to leave the company. 2. In regards to the current 52 weeks layoff notice, we explained that it is unreasonable and financially irrational to sustain more labor than necessary. We also explained that due to the current financial uncertainty of the domestic and international market, Adam Baxter Corporation is currently in the process of investing in automation, to be able keep up with competitor’s production and quality. For those reasons, we agree on a one-day to one-month layoff notice for all employees of the company, including management. 3. In regards with the demands of having an incentive program, we agree on the implementation of a monetary incentive program based on seniority and centered on a six-month and twelve-month performance evaluations and safety compliance. We likewise agree on having rewards for attendance and punctuality. We also presented a 401K retirement system managed by Fidelity Investment Corporation with a 7% match, and the new Adam Baxter Corporation’s profit sharing program based on the company’s yearly financial performance and the individual employee’s annual performance

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