Question

In: Operations Management

One of the main purposes of minimum wage legislation is to protect non-unionized workers in jobs...

One of the main purposes of minimum wage legislation is to protect non-unionized workers in jobs requiring minimal skill levels. A minimum wage creates a "floor" above which employees or their unions may negotiate with the management for higher pay rates. In1970, Ontario's minimum wage was set at $1.50 per hour. On January 1, 2018, the minimum wage rate in Ontario increased to $14 dollars per hour and was promised to rise to $15 dollars per hour thereafter. It is estimated that 10% of the provinces workforce is paid the minimum wage rate.

In early 2018, media outlets reported protestsThat occurred at various Tim Horton's outlets in OntarioOver action by franchise owners to deal with rising labor costs. Union officials noted Employee accounts of losing paidBreaks and having to buy their own uniforms after the new minimum wage rates went into effect. The Ontario Federation of Labour (OFL) Called for a National Day of Action in January 2018, saying that it was mobilizing concerned members of the labour movement, including the "Fight for $15," the Canadian Labour Congress and labour federations across Canada, to protest such actions in response to minimum wage increases.  

Protest against actions taken by Tim Horton's and many of its franchisees were held in over 20 Ontario communities with the support of the Ontario Public Service Employees Union, Labour councils and other action-based worker agencies. Similar protest occurred in British Columbia, Nova Scotia and Saskatchewan.

Over 20 representatives from various labor councils gathered at a Tim Horton's location in Windsor, Ontario to protest. An OFL representative stated that she and other union representatives were there to show the workers that the labour movement and the community where there to support them and make sure they were treated with respect. Another union leader said if there was a union steward present in such a situation, steps would have been taken to resolve employee concerns. Many of the workers felt afraid to raise their concerns with management due to a fear of being fired.

There was no report of how many union organizers might have been at these rallies trying to gain support among the employees to join a union.

As an HR leader at Tim Horton's corporate office, what steps would you suggest to senior management to successfully handle this situation and hopefully avoid the employees joining a union?

Solutions

Expert Solution

Answer:

As an associate time unit leader, we might initial counsel that senior management abides by the laws and rules of Bill 148. This bill entails that the final salary will increase to $14 per hour on January one, 2018, and can increase to $15 on January one, 2019. Seeing that Tim Horton’s offers remuneration base pay to its workers, they will add commission elements to their salaries. This commission will relate to bonus pays, monthly distribution associated with the company’s overall growth, or perhaps reward points supported feedback and task completion. Secondly, all employers ought to be entitled to a fifteen-minute paid break once operating for four hours, to a thirty-minute paid break once operating for six hours, associated an hour paid break if worked for eight hours. Lastly, Tim Horton's ought to offer uniforms to their workers at the start of the use and solely charge if lost and required a replacement.


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