CHALLENGE How long would a labor dispute in a precious minerals mine last? How to solve the dispute?
SOLUTION Key stoppage issues surrounded wages and working conditions when worldwide market prices were increasing dramatically. Over 50 stakeholders were mapped, included labor groups, union representatives, workers, local municipalities, senior management, shareholders, parent company, regulators and the government.
Multiple labor groups were demanding at least a 6% increase while senior management refused any concessions. Analytics revealed that the dispute would be extended, irreparably damaging labor relations when increasing production was key to profits. Our recommended tactics, strategies and paths identified:
- A strategy that sequenced both the agenda and proposals to each labor union
- Our compromise settled on a 2.5% wage increase only
VALUE Anticipated market price fluctuations in advance due to time of stoppage. Led to end of strike and rebuilt labor and management confidence.