Question

Childish Inc. (the "Company") is a unionized toys company with 1,100 employees that develops and sells children's toys in North America. The Company's factories and offices are located in Ontario and the Company is an Ontario-regulated corporation. The union was certified on January 20, 2020 to represent the Company's entire workforce. The union and the management entered into negotiations which are not going very well. The management started with a request to decrease wages by 3.5% explaining this is necessary to keep the Company competitive due to an increase in production line expenses. The union requested further explanation and breakdown of the increased expenses but did not get any. The union therefore objected the cut and proposed that the Company reduce expenses spent on the executive management meetings (food and accommodation) instead of cutting wages. The management refused to consider this as it believed it was the norm in the industry. The union then suggested a new formula for overtime pay and for extended health benefit plan to compensate for the wage cut. The management refused again to consider this proposal because they were concerned about its financial implications. The union requested more time to get back to the management with alternatives, but the management suspected the union may be doing this as a delay tactic. Each party believes the other party breaches their duty to bargain in good faith. Ultimately this deadlock results in a failure to reach a collective agreement. The parties try conciliation and fail to reach an agreement. The Minister of Labour issues a decision that a conciliation board will not be appointed. A strike vote is held with a majority vote in favour of a strike. 16 days pass. The Company hires replacement workers and continues with their clients' orders, and the union decides to go on a strike. The union sets up picket lines outside some big retail stores which sell Childish toys. Customers walking into the stores are asked to stop and sign a petition. The level of noise and traffic is very disturbing to many customers and store owners.

a) Discuss the legal arguments of both parties regarding the duty to bargain in good faith and potential remedies. [4 marks]

b) The picketing is unlawful. True/False [0.5 mark] Explain your answer [2.5 marks]

Answer 1

Answer :

a)The management of Childish inc began with a proposal to reduce salaries by 3.5 percent because they want to compete better in the market. The union demanded further clarification and analysis of the increased expenses, but after not getting any reply from the management, they demanded to reduce the management meeting expenses and requested not to cut employees' salaries.hey have also requested to compensate salary cut with new overtime pay structure and health plan benefits. Due to financial implications. the company management has not approved the union request and eventually deadlock results in a crash to arrive at a collective agreement. There will always be distributive bargaining elements that are respected by both sides. Those issues usually involve monetary terms. Negotiators can however be able to extend the pie even in this region and at the same time improve their respective positions. If negotiators are willing to think outside the box and look for innovative solutions, this can be achieved. For example, if profits have been decreasing, a company may offer a bonus to workers rather than an increase in pay. Employees get the cash payment benefit but the base pay rates remain unchanged. They can invoke the contractual grievance-arbitration procedures if they are unable to obtain a mutually acceptable outcome and ask an outside neutral to decide the matter. Then the losing party has someone to blame – that arbitrator with a pointed-head. Union and management leaders will then continue their partnership without needless acrimony. To be sure they have achieved that stage, they can agree to hold another negotiation session when in doubt. Second, the reforms they are making unilaterally can not be more favorable for the staff than those already proposed at the negotiation table by their partner.

b)False

Picketing is legal or illegal depends on the cases. Picketing is a form of speech, and so enjoys immunity from First Amendment. In the private sector, Union-management ties are regulated by the National Labor Relations Act and other important statutes. Public picketing is illegal under federal law as it may be used to harass massive unruly crowds. Picketing is lawful when used to communicate the dispute to the public, the employer, or other workers. It can not however be used to intimidate people or to incite violence. Workers have the right to picket in small numbers outside the premises of the employer, Where it is peaceful, a strike is generally lawful. A strike is never a legal excuse for violence, and acts of physical violence and property damage are to be seen as criminal acts. It can not, however, be used to threaten people or to cause violence. Customers who come into shops are told to stop signing a petition. For many customers and store owners, the level of noise and traffic is very disturbing. So, Picketing is unlawful here, as the union creates problems for people and compels people to sign the petition. But, generally, it is unlawful and can be done peacefully to show their protest to the concerned company.

**** Kindly LIKE the answer.It will help and motivate us ****