Why must labor and management be able to accurately determine the cost of wage proposals? Give examples and use sources.

Who got the turkey? How do you think the arbitrator ruled? Why? What is the supporting evidence for your decision? The answer will be shown by the instructor’s post and visible once you submit the answer.

Facts: The company had paid its employees a cash bonus totaling $30 turkey money at Christmas and Thanksgiving for the thirteen years prior to 1970. In 1970, the company signed its first union contract, which made no mention of the turkey bonus. It did, however, contain a zipper clause that read:

It is acknowledged that during negotiations that resulted in this agreement, the union had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects of collective bargaining. Therefore, for the life of this agreement, the union agrees that the company shall not be obligated to bargain collectively with respect to any subject or matter not specifically referred to or covered in this agreement.

That year, the company did not pay employees the Christmas and Thanksgiving bonus. The union filed charges against the company with the National Labor Relations Board. The union claimed that the company’s unilateral action in discontinuing the bonus was a refusal to bargain in good faith. The company responded that the bonus was not in the contract and it was under no duty to provide it. Further, it contended that the zipper clause precluded any claim for bargaining during the term of the contract and that the matter was an issue for arbitration, not board action