operational management

| December 10, 2015

 Your company terminated an employee for stealing a ladder. The employee filed a grievance with the union. The union argues that the employee had verbal permission from the temporary supervisor while the regular supervisor was away from the office. The employee said he had been allowed to do this previously. The union further argues that the issue with the ladder was not the real reason; the real reason was the supervisor%u2019s friend wanted the job.   The company denies the alleged motive and states that no one is allowed to take company equipment from the property. It further states that the contract stipulates that the penalty for theft is immediate termination.   The two parties are not going to be able to resolve the case. A third-party intervention will be needed. To decide whether it is worth the trouble, your boss asks how much labor arbitration will cost. (Note: To answer these questions, you need to use %u201C labor%u201D vs. %u201Cemployment%u201D arbitrator.)

Based on the most currently reported data by the American Arbitration Association (www.adr.org ) and the Federal Mediation and Conciliation Service (www.fmcs.gov) , you should factor all but one of the following into your budget. Which one is incorrect?

  1. 50% of an arbitrator%u2019s daily fee
  2. Administrative fees up to $225
  3. 50% of the travel expenses for the arbitrator
  4. 100% of the witnesses%u2019 expenses
  5. $600 court waiver fee

Once the arbitrator has heard the case and read post-hearing briefs, you should have a decision within:

  1. 30 days if AAA was used
  2. 30 days if FMCS was used
  3. 50 days if a single arbitrator vs. a panel was used
  4. 10 days if expedited arbitration was used

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operation management
business law

Category: Business

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