Zinnia Simulation Phase 2

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View the attached documents, my part of this project is HOURS. Complete the sections to the best of your ability.

The 3 costing worksheets below are due this Friday.

Target Settlement

Maximum Settlement

Here as you see, the Management Maximum Threat or Walkaway is 2%…….Target is 1%…….Initial offer might be .5%.

The plan might be offer to offer a .5% wage increase…….desired is !%…..however, the team would settle on 2% to avoid a strike…..but not more than 2% or management would in fact consider a work stoppage.

Conversely, the Union team proposals would start at the high percentage of wage increase and revert to lower percent to avoid a strike.

Briefly review the Zinnia Income Statement:


Income Before Fixed Charges – $3,582,967

NET INCOME – $869,465

Hotel occupancy is projected to be only slightly higher in the coming years. So, that equates no significant chance in income or profit unless some concession are made in the CBA.

When you cost your proposals, consider the Income Before Fixed Charges, Net Income and no change in occupancy. As stated in the materials, a new 200+ hotel has just opened with more planned.

Overall, the work is somewhat seasonal. August v. January, there is a 30% drop in occupancy. Warning to both parties, you could negotiate your Company out off business and your members out of a job. Helpful links http://www.thezinnia.com/

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