The union delegation of Maria Garcia and her assistant, José Martinez arrive at Murcia’s company office. They are both new to the job, so an unknown quantity.
Ted: Our offer is a 6% wage increase. It's in line with inflation.
María: Our members are poorly paid, thanks to ineffective negotiations previously, but that has to change. Our counter is 12% this year as a starting point for both wages and bonuses.
Ted: Maria, that is not a viable offer. We simply don't make enough profit to wear that sort of increase. We would have to put car prices up and if sales fall as a result, we all suffer.
María: Your prices have gone up by 10% this year. You're just squeezing workers and customers. That's unacceptable.
Ted: Please understand, our costs have risen faster than prices. Steel prices alone are up 15% this year. We're not squeezing anyone, we're just trying to run a sustainable business.
María: The workers are struggling to survive on current wages.
Ted: The economy isn't good. Inflation is rising and we understand workers are feeling the pinch. But the company has to make something or we might as well shut up shop. Look, 8% is more than fair. Lucia, who is our financial specialist can maybe convince you.
Lucía: Yes, let me show you some figures.
María: No need. The workers' welfare is what matters. There is also concern about understaffing. Workers on the production line complain they are struggling to complete tasks. We estimate an increase of 5% in worker numbers as a minimum is needed.
Ted: We already pay a total productivity bonus based on meeting targets and divided per worker. More staff would mean a lower bonus per worker unless you want to change that too, frustration showing in his voice.
José: We don't accept bonuses dropping by 5% just to ease worker pressure. The total bonus has to go up 5% to accommodate the extra staff numbers but as the bonuses aren't that high anyway, that isn't a major cost. However, if we present to our members a 8% pay rise, then they will take industrial action.
Ted: Okay, an increase in the workforce by 5%, adjust the bonus level, and an 8% pay rise. Our final offer.
Lucía: Frankly, we can't afford that, but we understand everyone is feeling the pinch, so we are compromising.
María: Our members are poorly paid, thanks to ineffective negotiations previously, but that has to change. Our counter is 12% this year as a starting point for both wages and bonuses.
Ted: Maria, that is not a viable offer. We simply don't make enough profit to wear that sort of increase. We would have to put car prices up and if sales fall as a result, we all suffer.
María: Your prices have gone up by 10% this year. You're just squeezing workers and customers. That's unacceptable.
Ted: Please understand, our costs have risen faster than prices. Steel prices alone are up 15% this year. We're not squeezing anyone, we're just trying to run a sustainable business.
María: The workers are struggling to survive on current wages.
Ted: The economy isn't good. Inflation is rising and we understand workers are feeling the pinch. But the company has to make something or we might as well shut up shop. Look, 8% is more than fair. Lucia, who is our financial specialist can maybe convince you.
Lucía: Yes, let me show you some figures.
María: No need. The workers' welfare is what matters. There is also concern about understaffing. Workers on the production line complain they are struggling to complete tasks. We estimate an increase of 5% in worker numbers as a minimum is needed.
Ted: We already pay a total productivity bonus based on meeting targets and divided per worker. More staff would mean a lower bonus per worker unless you want to change that too, frustration showing in his voice.
José: We don't accept bonuses dropping by 5% just to ease worker pressure. The total bonus has to go up 5% to accommodate the extra staff numbers but as the bonuses aren't that high anyway, that isn't a major cost. However, if we present to our members a 8% pay rise, then they will take industrial action.
Ted: Okay, an increase in the workforce by 5%, adjust the bonus level, and an 8% pay rise. Our final offer.
Lucía: Frankly, we can't afford that, but we understand everyone is feeling the pinch, so we are compromising.
María looks at José and he nods to show his acceptance: Very well. We will accept.
María and José look satisfied and go to leave. María asks to see Ted privately. They go into his office but they stand facing each other.
María: Ted, there is one car assembler in this country. The pay is poor. If we go on strike, the government will be unhappy as will be politically unpopular with voters. María rubs her fingers up and down my suit lapel. You need to be more flexible Ted.
Ted: So what are you driving at María?
María You're not a bad guy Ted but we are going to up the ante next year. You'll need to cut costs in the meantime if you are so cash strapped as you say you are. Do I make myself clear?
Ted feels uncomfortable: You don't run Murcia Automóviles María but I will think on what you have said.
María: The government is left wing and the workers keep them in power. Therefore, the workers have the upper hand and the union represents them. I don't run the company but, leaning forward and speaking softly, you need to work with us.
Ted: I understand you have some power here, but at the end of the day, a deal that works for everyone is a good deal.
María Yes Ted and the deal is done, but we are only starting. She gives Ted a smile.
Lucía enters: What was that all about?
Ted: She's warning us that more demands are coming. We'll need to make some changes Lucía.
Lucía I'm not sure what changes we can make, Ted.
Ted: Cut costs where we can. The union has the upper hand at this point in time, and Maria knows it.
Lucía That woman is trouble Ted.
Ted: Yes but she's smart and knows how to play the game.
Lucía: What's our next move?
Ted: We'll need to look at our suppliers and see if we can get better deals on components.
Lucía: Okay, but most of our suppliers are locked in contracts. That won't be easy Ted.
Ted sighs: Nothing is easy right now. Lucía, can you look over all our expenses and see where we can save? Even small amounts all add up.
Lucía: I'll get right on it Ted.
They later have a meeting with the main stakeholders. Lucía and Ted convince them that the concessions were necessary to avoid industrial action but Ted and Lucía are told next year the union will have to be more reasonable. After the meeting Lucía and I meet up in my office.
Lucía: Well, that went better than expected.
Ted: Yes, but we're on borrowed time. We need to find ways to improve profitability without squeezing workers or raising car prices further.
Lucía: Easier said than done Ted.
Ted: I know but we'll find a way. Smiling, We always do. Now, let's get to work.
The next round of negotiations arrive next year. About 2% has been shaved off operating costs without being drastic. Inflation is running at 8% and worker frustration is building.
Ted to Lucía: You oversee the financial side of things. What can we afford to offer?
Lucía: Not much Ted. If we go above 10%, we'll be in trouble financially.
Ted: What should we go in with?
Lucía: Start with the inflation rate of 8%, but be prepared to go to 10%.
Ted: Okay. Our cost savings will allow that without impacting profit. Let's see what María has to say this time.
María: Ted, there is one car assembler in this country. The pay is poor. If we go on strike, the government will be unhappy as will be politically unpopular with voters. María rubs her fingers up and down my suit lapel. You need to be more flexible Ted.
Ted: So what are you driving at María?
María You're not a bad guy Ted but we are going to up the ante next year. You'll need to cut costs in the meantime if you are so cash strapped as you say you are. Do I make myself clear?
Ted feels uncomfortable: You don't run Murcia Automóviles María but I will think on what you have said.
María: The government is left wing and the workers keep them in power. Therefore, the workers have the upper hand and the union represents them. I don't run the company but, leaning forward and speaking softly, you need to work with us.
Ted: I understand you have some power here, but at the end of the day, a deal that works for everyone is a good deal.
María Yes Ted and the deal is done, but we are only starting. She gives Ted a smile.
Lucía enters: What was that all about?
Ted: She's warning us that more demands are coming. We'll need to make some changes Lucía.
Lucía I'm not sure what changes we can make, Ted.
Ted: Cut costs where we can. The union has the upper hand at this point in time, and Maria knows it.
Lucía That woman is trouble Ted.
Ted: Yes but she's smart and knows how to play the game.
Lucía: What's our next move?
Ted: We'll need to look at our suppliers and see if we can get better deals on components.
Lucía: Okay, but most of our suppliers are locked in contracts. That won't be easy Ted.
Ted sighs: Nothing is easy right now. Lucía, can you look over all our expenses and see where we can save? Even small amounts all add up.
Lucía: I'll get right on it Ted.
They later have a meeting with the main stakeholders. Lucía and Ted convince them that the concessions were necessary to avoid industrial action but Ted and Lucía are told next year the union will have to be more reasonable. After the meeting Lucía and I meet up in my office.
Lucía: Well, that went better than expected.
Ted: Yes, but we're on borrowed time. We need to find ways to improve profitability without squeezing workers or raising car prices further.
Lucía: Easier said than done Ted.
Ted: I know but we'll find a way. Smiling, We always do. Now, let's get to work.
The next round of negotiations arrive next year. About 2% has been shaved off operating costs without being drastic. Inflation is running at 8% and worker frustration is building.
Ted to Lucía: You oversee the financial side of things. What can we afford to offer?
Lucía: Not much Ted. If we go above 10%, we'll be in trouble financially.
Ted: What should we go in with?
Lucía: Start with the inflation rate of 8%, but be prepared to go to 10%.
Ted: Okay. Our cost savings will allow that without impacting profit. Let's see what María has to say this time.
María arrives for the next negotiation session. José is with her again. Lucía is also present.
Ted: Our offer is in line with inflation, 8%.
María: Ted, our members are struggling. The government is talking about price controls. Our members need 15% this year.
Ted: Maria, I understand the pressures but 15% is impossible. Our costs have risen sharply again.
María: Well Ted, our members can't afford not to have it.
Ted: Look María, let's be realistic here. We'll offer 10%. That's more than fair.
María: Ted, that's not going to cut it.
Ted: María, please understand our position. We're trying to keep the company viable.
María: And we're trying to keep workers from poverty, Ted.
Ted: I know María. I get it. But 15% is just not doable.
María: Ted, you need to understand something. Workers are at breaking point. If we don't get something substantial, there will be a strike.
Ted: Okay María. Let's talk numbers.
María: That's more like it Ted.
They spend the next few hours hammering out a deal. In the end, they agree to 12% wage increase.
Ted: Okay María. We have a deal.
María: Good Ted. I'll present it to the workers.
Ted: I hope they see it's a more than fair deal.
María: We'll see Ted. We'll see.
Ted: Our offer is in line with inflation, 8%.
María: Ted, our members are struggling. The government is talking about price controls. Our members need 15% this year.
Ted: Maria, I understand the pressures but 15% is impossible. Our costs have risen sharply again.
María: Well Ted, our members can't afford not to have it.
Ted: Look María, let's be realistic here. We'll offer 10%. That's more than fair.
María: Ted, that's not going to cut it.
Ted: María, please understand our position. We're trying to keep the company viable.
María: And we're trying to keep workers from poverty, Ted.
Ted: I know María. I get it. But 15% is just not doable.
María: Ted, you need to understand something. Workers are at breaking point. If we don't get something substantial, there will be a strike.
Ted: Okay María. Let's talk numbers.
María: That's more like it Ted.
They spend the next few hours hammering out a deal. In the end, they agree to 12% wage increase.
Ted: Okay María. We have a deal.
María: Good Ted. I'll present it to the workers.
Ted: I hope they see it's a more than fair deal.
María: We'll see Ted. We'll see.
After Maria leaves, Ted sits down heavily in his chair.
Lucía: You gave in Ted. We agreed 10% maximum. What will the shareholders say?
Ted: We've almost certainly avoided a strike. I will have to be at my persuasive best. I need you to help with that Lucía.
Lucía: I'll help you Ted but I don't know if they can be convinced.
Ted: Neither do I Lucía. Neither do I.
The meeting with major shareholders is not easy. Some suggest Ted should go. They ask Lucía if she was happy with the outcome?
Lucía: No, but Ted did what he had to do to avoid a strike.
Ted: Look, I know you're unhappy. But a strike is a worse scenario than the 12% deal.
Shareholder: Maybe Ted, but we need a stronger leader. Someone who can stand up to the union. Maybe Lucía is a better negotiator. Would you accept the CEO job Lucía?
Lucía is shocked: I'm not sure I'm ready for that.
Ted: Is that what you want? Me gone and Lucía in charge?
Shareholder: We just need someone who can get tough with the union, Ted.
Ted: Look, I've done my best. If you want someone else, that's your call. But don't think the union will roll over for anyone. María Garcia is no pushover.
Lucía: Ted is right. María is tough. Whoever is CEO will have a hard time with her.
Shareholder: Well, we'll think about it. But Ted, you're on notice.
Ted: Understood.
After the meeting, Ted and Lucía walk out together.
Lucía: Ted, I didn't know they were thinking like that.
Ted: It's business Lucía. Nothing personal.
Lucía: Still, it's not fair Ted. You've done everything you can to keep production going.
Ted: Thanks Lucía. But the shareholders want results. And right now, results are hard to come by.
Lucía: What are you going to do Ted?
He smiles grimly: I'm going to fight Lucía. I'm not going down without a fight.
Ted asks María for a meeting and he goes down to her office.
Lucía: You gave in Ted. We agreed 10% maximum. What will the shareholders say?
Ted: We've almost certainly avoided a strike. I will have to be at my persuasive best. I need you to help with that Lucía.
Lucía: I'll help you Ted but I don't know if they can be convinced.
Ted: Neither do I Lucía. Neither do I.
The meeting with major shareholders is not easy. Some suggest Ted should go. They ask Lucía if she was happy with the outcome?
Lucía: No, but Ted did what he had to do to avoid a strike.
Ted: Look, I know you're unhappy. But a strike is a worse scenario than the 12% deal.
Shareholder: Maybe Ted, but we need a stronger leader. Someone who can stand up to the union. Maybe Lucía is a better negotiator. Would you accept the CEO job Lucía?
Lucía is shocked: I'm not sure I'm ready for that.
Ted: Is that what you want? Me gone and Lucía in charge?
Shareholder: We just need someone who can get tough with the union, Ted.
Ted: Look, I've done my best. If you want someone else, that's your call. But don't think the union will roll over for anyone. María Garcia is no pushover.
Lucía: Ted is right. María is tough. Whoever is CEO will have a hard time with her.
Shareholder: Well, we'll think about it. But Ted, you're on notice.
Ted: Understood.
After the meeting, Ted and Lucía walk out together.
Lucía: Ted, I didn't know they were thinking like that.
Ted: It's business Lucía. Nothing personal.
Lucía: Still, it's not fair Ted. You've done everything you can to keep production going.
Ted: Thanks Lucía. But the shareholders want results. And right now, results are hard to come by.
Lucía: What are you going to do Ted?
He smiles grimly: I'm going to fight Lucía. I'm not going down without a fight.
Ted: The latest round of negotiations didn't go down well with the shareholders. I'm under fire. Do you want me to be the company negotiator or someone who may be less flexible?
María leans back in her chair, crossing her legs nonchalantly: Ted, I prefer dealing with you. You're reasonable. But if someone else comes in, we'll deal with them too.
Ted: Yes. If you could tone down the demands a bit, it would keep me as the negotiator.
María: Ted, I have to represent my members. I can't just tone down demands because you're in trouble.
Maria leans forward. Okay Ted. I'll see what I can do. But no promises.
Ted: Thanks María. I appreciate it.
María quickly thinking what leverage this gives her and she wants to play her dominant position.
María: Ted, I need to see more commitment from you.
Ted: What do you mean, María?
Maria stands up and walks around her desk, leans against it with an air of confidence: Ted, you need to show me you're serious about working with us.
He frowns: María, I've just agreed to a deal that gives your members 12%. What more do you want?
María: You're quite well paid Ted, unlike union reps like me. I can't even afford to put my daughter through higher education.
Ted: Are you suggesting what I think you're suggesting María? María, this isn't the way to do business.
María laughs softly: Oh Ted, business is business. And right now, I hold all the cards.
Ted stands up: I think we're done here María. He turns and leaves quickly.
Ted returns to his office shaken. Lucía sees him and follows him in.
Lucía: Ted? What happened? You look pale.
Ted: She hinted at some kind of... personal arrangement.
Lucía: What did she hint Ted? You can tell me.
Ted: It's so unprofessional. My personally helping financially to put her daughter through college.
Lucía: Then what are you going to do Ted?
Ted: I'll have to play along Lucía. But carefully. Very carefully. If I do help, there needs to be no paper trail.
Lucía: Ted, that's dangerous. If it comes out...
Ted: I know Lucía. But if I don't, she might push for even more in negotiations.
Lucía sighs: Ted, I don't like this.
Ted: Neither do I Lucía. But right now, I don't see another way.
Lucía: Just... be careful Ted.
Ted: I will Lucía. I will.
Maria leans forward. Okay Ted. I'll see what I can do. But no promises.
Ted: Thanks María. I appreciate it.
María quickly thinking what leverage this gives her and she wants to play her dominant position.
María: Ted, I need to see more commitment from you.
Ted: What do you mean, María?
Maria stands up and walks around her desk, leans against it with an air of confidence: Ted, you need to show me you're serious about working with us.
He frowns: María, I've just agreed to a deal that gives your members 12%. What more do you want?
María: You're quite well paid Ted, unlike union reps like me. I can't even afford to put my daughter through higher education.
Ted: Are you suggesting what I think you're suggesting María? María, this isn't the way to do business.
María laughs softly: Oh Ted, business is business. And right now, I hold all the cards.
Ted stands up: I think we're done here María. He turns and leaves quickly.
Ted returns to his office shaken. Lucía sees him and follows him in.
Lucía: Ted? What happened? You look pale.
Ted: She hinted at some kind of... personal arrangement.
Lucía: What did she hint Ted? You can tell me.
Ted: It's so unprofessional. My personally helping financially to put her daughter through college.
Lucía: Then what are you going to do Ted?
Ted: I'll have to play along Lucía. But carefully. Very carefully. If I do help, there needs to be no paper trail.
Lucía: Ted, that's dangerous. If it comes out...
Ted: I know Lucía. But if I don't, she might push for even more in negotiations.
Lucía sighs: Ted, I don't like this.
Ted: Neither do I Lucía. But right now, I don't see another way.
Lucía: Just... be careful Ted.
Ted: I will Lucía. I will.
María texts Ted: I'm sure we can find an arrangement that suits us both Ted.
Ted reads the message and sighs deeply. He types a reply: We'll talk María. But discreetly.
He puts his phone down and rubs his temples. He thinks ‘What have I got myself into?
The next day, Ted arranges to meet María discreetly at a small café away from the office.
Maria smiles: Ted. So, have you thought about my... suggestion?
Ted: I have María. But I need assurances.
María leans forward: What kind of assurances, Ted?
Ted: That this stays between us. And that you'll be reasonable in future negotiations.
Maria smirks: Of course, Ted. I'm always reasonable.
Ted: Okay, María. What exactly do you need?
Maria: My daughter's tuition is $12,000 a year. $4,000 per trimester.
Ted’s eyes widen: That's a lot María.
María shrugs: Education isn't cheap Ted.
Ted: What guarantee do I have that negotiations will be moderated?
María: If wage increases are at inflationary level, I'll convince our members we have to be reasonable.
Ted: Fair enough. I'll need to find a way to do this without raising suspicion.
María: I'm sure you'll think of something Ted. You're a smart man. Here's the number for a special bank account, not linked directly to me. The due dates are listed.
He nods: Give me some time María.
María: Of course Ted. But don't take too long.
He reflects: I have sent most of my earnings overseas. Transferring shouldn't be traceable back to me.
He gets back to the office and ever caring Lucía follows him into his office.
Lucía: Well Ted?
Ted: It's arranged.
Lucía shakes her head: Ted, I can't let you do this. If you get caught, your career and reputation is shot.
Ted: I know. What do you suggest?
Lucía looks down shyly, not something Latino women usually do: Ted, we've worked together for sometime now. We know each other well. Yet working together means we had to keep everything businesslike. Do you feel nothing for me?
Ted is shocked at the frankness. I do like you Lucía. But as you say, we couldn't pursue anything.
Lucía: I see how this job has been tough on you. You need a break from the stress. Why not consider resigning. I have been thinking. I would actually like to take over the CEO position. Then maybe you could ask me out?
Ted: Yes, I am worn out and you would make a fine CEO. I wonder if you could avert a strike next year, locking horns with María.
Ted reads the message and sighs deeply. He types a reply: We'll talk María. But discreetly.
He puts his phone down and rubs his temples. He thinks ‘What have I got myself into?
The next day, Ted arranges to meet María discreetly at a small café away from the office.
Maria smiles: Ted. So, have you thought about my... suggestion?
Ted: I have María. But I need assurances.
María leans forward: What kind of assurances, Ted?
Ted: That this stays between us. And that you'll be reasonable in future negotiations.
Maria smirks: Of course, Ted. I'm always reasonable.
Ted: Okay, María. What exactly do you need?
Maria: My daughter's tuition is $12,000 a year. $4,000 per trimester.
Ted’s eyes widen: That's a lot María.
María shrugs: Education isn't cheap Ted.
Ted: What guarantee do I have that negotiations will be moderated?
María: If wage increases are at inflationary level, I'll convince our members we have to be reasonable.
Ted: Fair enough. I'll need to find a way to do this without raising suspicion.
María: I'm sure you'll think of something Ted. You're a smart man. Here's the number for a special bank account, not linked directly to me. The due dates are listed.
He nods: Give me some time María.
María: Of course Ted. But don't take too long.
He reflects: I have sent most of my earnings overseas. Transferring shouldn't be traceable back to me.
He gets back to the office and ever caring Lucía follows him into his office.
Lucía: Well Ted?
Ted: It's arranged.
Lucía shakes her head: Ted, I can't let you do this. If you get caught, your career and reputation is shot.
Ted: I know. What do you suggest?
Lucía looks down shyly, not something Latino women usually do: Ted, we've worked together for sometime now. We know each other well. Yet working together means we had to keep everything businesslike. Do you feel nothing for me?
Ted is shocked at the frankness. I do like you Lucía. But as you say, we couldn't pursue anything.
Lucía: I see how this job has been tough on you. You need a break from the stress. Why not consider resigning. I have been thinking. I would actually like to take over the CEO position. Then maybe you could ask me out?
Ted: Yes, I am worn out and you would make a fine CEO. I wonder if you could avert a strike next year, locking horns with María.
Ted: I did verbally agree to her demands for tuition fees. If I back out, all bets are off and negotiations will be tough. If I honour the deal, then you will get an inflation tied pay rise for the workers and a less stressful negotiation round.
Lucía: Ted, I'm not sure how to say this but... I have some information that could help us.
Ted raises an eyebrow: What kind of information Lucía?
Lucía smiles slyly: Let's just say, María has some skeletons in her closet. She's been skimming off union funds. Small amounts, but it adds up. I have a friend in the union. He let it slip out.
Ted: So we have leverage. Maybe I don't need to pay her daughter's tuition after all.
Lucía grins: Maybe not Ted. Maybe not.
Ted: Okay Lucía. Do you still feel I should resign and recommend you as my successor?
Lucia hesitates. I... I don't want to force you out Ted. But if you're ready to move on...
Ted: And maybe, once I'm out of the picture here, we can... explore other possibilities.
Lucía smiles: I'd like that Ted.
Ted: So, how do you suggest we play this Lucía?
Lucía thinks for a moment: We let María know we know. Then we tell her to back off. Or else. With this information, we want her at her job. Exposing her and getting her sacked would lose us that advantage.
Ted: I like it. I'll tend my resignation and let you take the reigns.
Ted arranges a discreet meeting with María in a quiet country road. When Maria shows up, she is surprised to see Lucía also. Lucía puts forward what she knows. Maria is shocked.
Maria looks at Ted: You planned this?
He shakes his head: No María. But I'm not going to pay your daughter's tuition.
Maria sighs: Fine. But this stays between us.
Lucía: Of course María. As long as you play nice.
María: You'll regret this.
Lucía laughs: Oh María, don't make threats you can't back up. Oh, and I'm applying for the CEO role after Ted resigns.
María: Well, congratulations Lucía.
Lucía: Thank you María. I'm sure we'll have a... productive relationship.
María drives off, tyres skidding in the dust.
Ted: So, I guess it's official then. I'm resigning. And then... maybe dinner?
Lucía: Yes Ted. Dinner sounds perfect.
Ted: Good. Now, let's go break the news to the shareholders.
Lucía smiles. Lead the way Ted.
Ted: After you Lucía. You're the boss now.
And so Ted McCully steps down as CEO, recommending Lucía Fernández as his successor. The shareholders agree, impressed with Lucía's vision on moving forward. Lucía and Ted begin seeing each other , much to everyone's surprise.
María, meanwhile, keeps her head down, knowing Lucía has the upper hand. Murcia Automóviles moves forward, with Lucía at the helm, ready to face whatever challenges come her way. And Ted? Well, he’s just happy to de-stress and court Lucía.
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