Management Position on Future Health Care Benefits in GMFC

976 words | 4 page(s)

Due to the Provisions provided by the PPACA, the organization has been compelled to look into the details of the PPACA critically. Even more importantly, the organization has evaluated the organization’s health care benefit compensation program, to ensure that the GMFC PPACA is compliant and in alignment with the projected future business outcome. As such, following an in-depth analysis of the PPACA and organizational, it is the position of the management that there is an urgent need for reforms in health care coverage. It is the organization’s management position that the main reforms be instituted in current health care coverage programs requires that employees purchase health insurance after the expiration of the current collective bargaining agreement. The changes are triggered by the escalating inflation of medical costs. In addition, it is best to take into account that the PPACA provisions are bound to substantially increase the organization’s cost in the health care management plan, not to mention the vulnerability of attracting the Cadillac tax.

It should be noted that the new proposed reforms to the company’s health care coverage complies with the legal provisions as provided for in PPACA. Also, contrary to popular opinion, it is best to keep in mind that the reforms provide employees with a wide variety of options to choose from. While these health care coverage recommendations are intended to comply with the provisions of PPACA, it is worth to acknowledge the fact that they enhance the employee’s capacity to comparatively shop for a health insurance policy that suits an individual. In other words, the proposed reforms concur with the PPACA in the sense that it empowers employees by providing them with the opportunity to budget and manage funds spent on healthcare. Other than spending on healthcare on a carte blanche basis at the expense of the organization and the possibility of disabling business continuity, the reforms will make health care coverage a payment system or plan controlled by the individual employees. Consequently, employs can eventually get to purchase a health insurance plan that provides the best value.

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While envisioning future health care benefits in GMFC, the management emphasizes that the changes will also facilitate, a culture of spending more effort and resources on wellness and preventive services. In the near future the GMFC management looks forward to the consideration of providing wellness and preventive care education. The initiative is projected to sensitize GMFC employees on wellness and preventive care and reap the benefits of reduced health care costs in the long run and avoid tax penalties.

Therefore, in conclusion, the position of GMFC as it pertains to the future of health care benefits is to move all employees to private health exchanges and halt providing direct health insurance to workers. These reforms are aimed at providing workers with a wide range of options insurance options from which they can choose. Equally important, the reforms will also facilitate business continuity by enabling the organization to stabilize its healthcare spending amid the inflations of health care cost.

Recommend Strategy to the Company in this Impasse
It is evident that the impasse in GMFC calls for negotiation since both the workers and the management respectively have critical needs that require urgent reconciliation. The situation presents several considerations that are of significance importance to all stakeholders of the organization. To begin with, the union is demanding for a wage increment of 10 cents per hour, whereas the organization is willing to offer 5 cents an hour. The management’s offer has so far been declined by the union. In the same vein, there is the possibility of a looming strike, following a strike authorization. However, the union leaders have not shown any signs of a strike. As such, production managers are lobbying for the lockout of the processing plants to avoid the destruction of property. On the other hand, marketing managers have pending shipment orders scheduled for delivery, thus don’t see the need to lockout the plants as the union leadership has not provided a strike notice.

Taking into account the interests and demands of the various stakeholders involved in this impasse, it is strongly recommended that the management commissions a negotiating team. The team will then convene an urgent preliminary meeting to begin negotiations with the leaders of the union. Also, the objective of this meeting is to utilize the attitudinal restructuring approach to neutralize the impasse, heal wounds, in addition to building trust between the workers, union leaders and the management as well. The reason behind this, is to facilitate the creation of an environment in which the concerned parties can reach an agreement. Equally important, the attitudinal restructuring meeting will allow for the commencement of any further engagements without compromising on the business operations of the organization. As such, this implies that the steel processing plants will continue to operate and delver the scheduled orders to the respective customer, unless the union provides the management with an official strike notice at the meeting.

Equally important, the meeting will help the management to ascertain the workers union position as it pertains to the matter at hand. Similarly, the convened meeting will serve as meeting for setting up meaningful negotiations going forward. In the meeting, negotiators are required to gather facts as well as other grievances and any other necessary information.

After concluding the afore-mentioned meeting, it is strongly recommended that the negotiation process continues by adopting an integrative bargaining approach. The integrative bargaining approach is beneficial and appropriate for negotiating multiple issues. During this process, the negotiation teams will engage each other, with the main shared objective of developing an agreement that benefits both the workers and the organization. By so doing the agreement arrived at in the end of the negotiation process will be satisfactory to the workers and the management without compromising the continuity of business operations.

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