Unit VII Collective Bargaining - Essay Example

Since 1975, ESOPs have been on the growth because it has significantly played a big role in supporting the trade unions. For instance, it has a hand in allowing unions to have partial ownership. This means that it has offered the trade union with an incentive of becoming weaker bargainers hence leading to a reduction in the rate of labor disputes and strike incidences (Block, 2006). Employee Stock Ownership Plans (ESOPs) have assisted the employee to strategically plan for the operation of the organization and coming up with outsourcing solution.

On an employee perspective, it has allowed room for integration of the model with other existing plans to be able to provide high quality service and maintain a consistent customer satisfactory plan operation. The employers would experience a reduction in their business equity in the events of leveraged ESOP. During the valuation period the ESOP is most overvalued hence subjecting the employer penalty tax of 15%. It affects the value of an organization hence deterring employer from making the investments (Sloane, 2001).

In addition, Employees would be affected due to the poor performance of an organization that is, they would encounter a loss of the long-term investment. Lack diversification of the ESOP investment would lead to the loss of the employees’ retirement funds (Aidt, 2002). Question 2: Describe the two major forms of no-strike provisions agreed upon by managements and unions. Outline and explain the series of remedies that employers have available when these provisions are violated (including any union-generated action that interfered with production).

The management and the unions agreed upon provision that would guide the members of the union to raise their grievance without going for any strike within the period of the agreements. Among the provision agreed upon is the no-strike clause. It bonds the union along with the management to promise that their