Question

Labor Relations- Chapter- Unions: Objectives, Processes and Structure

Case Study- A Raise in Pay, But . . .

One of the main purposes of minimum wage legislation is to protect non-unionized workers in jobs requiring minimum skill levels. A minimum wage creates a “floor” above which employees or their unions may negotiate with management for higher pay rates. In 1970, Ontario’s minimum wage was set at $1.50 per hour. On January 1, 2018, the minimum wage rate in Ontario increased to $14 per hour and is promised to rise to $15 per hour in 2019. It is estimated that ten percent of the province’s workforce is paid the minimum wage rate.

In early 2018, media outlets reported protests that occurred at various Tim Horton’s outlets in Ontario over action by franchise owners to deal with rising labour costs. Union officials noted employee accounts of losing paid breaks 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.

Protests 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 protests occurred in British Columbia, Nova Scotia and Saskatchewan.

Over 20 representatives from various labour 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 were 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 be 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.

Questions:

1. What are the different roles played by federations of labour and labour councils?

2. How could the respective roles of these two labour organizations influence actions by other parties to address the concerns raised by affected Tim Horton’s employees?

3. 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?

Answer 1

Case Title: A Raise in Pay But...

Questions:

What are the different roles played by the federations of labour and labour councils?

The federations of labor is mainly responsible to manage the large scale activities, on the other hand, the activities at the local level are managed and maintained by the labor councils. The main roles of The federations of labor include lobbying with the federal government, developing the policies related to social and economic aspects, dealing with the jurisdictional disputes, implementation of the CLC code of ethics coordinating with the different types of labor movements all over the world. All these roles and functions are important as they set the direction of the labor movement in the country.

On the other hand, the labor council is mainly related to the municipal or regional level and it mainly helps to improve the communities and help to protect their interests at the regional scale. Collecting and processing the union dues, handling and representing the conflicts of the union members, managing the collective agreement, taking political initiatives when required.

How could the respective roles of these two labour organizations influence actions by other parties to address the concerns raised by affected Tim Horton’s employees?

The establishment of The Ontario Federation of Labour (OFL) took place by the Canadian Labour Congress (CLC), thus CLC supported the various types of movements initiated by OFL. The different roles of OFL provide protection for the working individuals and their unions and it also includes the Ontario Public Service Employees Union (OPSEU. The membership of Ontario Public Service Employees Union (OPSEU) is more than 155000 which is almost 23% of OFL’s membership which has a total member number of 700000. This will have a major effect on the dealing and activities of other parties. Awareness was spread by OFL about the unfair treatment of employees of Tim Horton and thus will definitely tarnish its image among the customers. This will result in lower revenue for the franchisors in communities. In fact, the appeals can also be made to the various government agencies to act legally and pas the laws so that the employees of the company can be protected.

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? (

First of all, I would advise that the management must follow all the laws and regulations of Bill 148. So the company has to provide the minimum age of $14 per hour and then it was increased to $15 per hour on January 1, 2019. As the company only facilitates the base salary to the employees, it is advised to add commission components in it. This can be associated with the bonus pay, monthly payouts, reward points on the basis of the positive recommendation, and task completion. All the employees must be given a break time of 15 min after working for 4 hours and once they work for 6 hours, the break of 30 min can be given. The employees should also be facilitated with the uniforms when they join the company and can large nominal fees on the loss or replacement of the uniform.