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Resolving contract disputes with employees

On behalf of Kadish & Associates Law Group posted in Contract Disputes on Thursday, May 12, 2016.

The first responsibility of an Arizona business is to the success of the company. A large part of any company’s success is often its employees. Therefore, resolving contract disputes with them is an important function of the business owners and/or management. However, any decisions that are made need to ensure that the business remains viable and can continue to grow and be profitable.

Finding a balance between the needs of the employees versus the company can sometimes result in an unpopular resolution. A Honeywell location in another state has been in negotiations with a chapter of the UAW for a five year employment contract. The union rejected the latest proposed contract provided by Honeywell.

The workers of UAW Local 9 in South Bend, Indiana, said that if it was up to them, they would continue to work while a new contract is negotiated. However, the company was forced to lock out union workers since the prior contract ended on May 3. The company explained that the industry is not the same as it was when the recently expired contract was negotiated over five years ago. Even one of Honeywell’s largest customers is cutting nearly 4,000 jobs, which could affect the company.

This is just one factor that any Arizona company should take into consideration when attempting to resolve contract disputes with employees. Many employers want to be able to provide their workers with raises and other benefits, but it is not always possible to give them exactly what they want and keep the business on the right track as well. Therefore, it might take numerous negotiations and explanations for workers to understand that compromise will more than likely be the better course of action for everyone involved. Ensuring that any agreement ultimately reached is legally binding on both parties will also be required to provide the peace of mind that both sides need in order to move forward and help the business succeed.

Source:, “Honeywell, UAW labor union in contract dispute”, Joel Porter, May 9, 2016

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