Negotiations Assignment FINAL

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Mohawk College *

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M845

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Economics

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Jan 9, 2024

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Negotiation Assignment: Wilson Brothers vs. UFCW Jennifer Lyons, Industrial Relations HRM845 November 19, 2023 Question 1 Jim will need to calculate the impact of the 20% wage increase proposed by the union. In order to do this he will have to make the following calculations:- a-show the impact on AHWR b-show the impact on WIB c-show the impact on NWIB d-calculate the new TCR for Wilson Bros in the first year of the new agreement if the company actually agreed to a 20% wage proposal as presented by the union.

Impact on AHWR ( Average Hourly Wage Rate) Current AHWR = $30.00 + 20% increase as per UFCW proposal AHWR = $30.00 x 1.20 = $36.00 Impact on WIB (Wage Impacted Benefits) : WIB = 15% of current AHWR ($30.00) WIB = $30.00 x 0.15 = $5.40 Impact on NWIB (Non-Wage Impacted Benefits) : NWIB = 10% of current AHWR ($30.00-no increase) NWIB = $30.00 x 0.1 = $3.00 AHWR : $36.00 WIB: $5.40 NWIB: $3.00 THE PROPOSED TCR WOULD BE: $44.40 Question 2 2) Jim will need to calculate the impact of the safety boot and pension proposal on the non-wage impacted benefit calculation in the first year of the new agreement. He will assume each employee works a 40-hour week, 52 weeks per year. Calculate the new non-wage impacted benefit (NWIB that would result from accepting the union’s proposals)? There are 800 unionized employees at Wilson Bros who work 40 hours per week for 52 weeks in a year result in 2080 working hours per year. The union proposes the following: Safety Boots Requirement proposal: The Company pays $50 per year per employee Company Contribution for pension plan proposal: $500,000 in the first year

If Jim accepts these proposals, these are the impacts: $500,050 (per year per employee) 1,664,000 (total hours for 800 employees working 2080 hours per year) = $0.30 The total of Non-Wage impacted benefits will equal $0.30. The pension and safety boots and proposal will affect the Wilson Bros company by increasing the NWIB by $0.30 changing the TCR to $44.70 (44.40 + $0.30) Question 3 Jim doesn’t think he can agree to the union’s language on contracting out because as written it could severely limit the company’s flexibility. What language, if any, should Jim propose to attempt to resolve this issue? The initial proposal, by the union states that the company cannot outsource any work currently done by members of the bargaining unit without obtaining written consent from the union. Additionally, it emphasizes that there should be no employee layoffs resulting from outsourcing. Flexibility Concerns for the Company: There are concerns about how this clause may limit the company’s flexibility for companies like Wilson Brothers that require turnaround times and thrive on innovation. It is important to have the ability to outsource tasks without facing restrictive constraints. Proposed Modifications: Clause 3.0; This suggests that while the company will ensure job security for employees, there can be exceptions if some union members lack skills or if specific tasks require equipment not available within the company. Clause 3.1; This offers a solution, for temporarily reassigning employees affected by outsourcing with a notice period of 60 days to facilitate smooth transitions. Additional Proposals: It is recommended to specify that alternative employment opportunities should be provided to affected employees with at least 90 days’ notice before any work is contracted out which might result in staff layoffs. The company should also try to reassign employees within two weeks of giving notice of outsourcing the work if they have the necessary resources and capable employees to perform the task.

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Jim should suggest language that allows flexibility, for the company while ensuring job security for employees. This includes: · Avoid layoffs caused by outsourcing. · Requiring union approval before regularly outsourcing work performed by bargaining unit members. · Offering alternative job assignments or transfers within the company to affected employees. Communicating these policies and intentions to the union and the company fosters understanding and acting in faith. The proposed language should balance protecting employee interests and providing flexibility for the company. It is crucial to define situations where outsourcing does not lead to layoffs of bargaining unit employees and specify exceptions when outsourcing is permissible due, to lack of skills or equipment. Additionally, the company must commit to offering alternative employment opportunities and providing notice to both the union and affected employees. Question 4 Jim doesn’t think he can agree to the union’s language on technological change because as written it could severely limit the company’s flexibility. What language, if any, should Jim propose to attempt to resolve this issue? The union has proposed a 12-month written notice requirement, for any changes ensuring that no employees within the bargaining unit will be laid off due to these changes. Notice proposals of technological change is commonly seen in workforces such as these. For instance, in the 2016 agreement of United Steelworkers Local 1944 the following agreement was reached (please note this is a federally regulated union/company) "In ARTICLE B10. TECHNOLOGICAL CHANGE it is understood that technological change will be defined according to section 51(1) of Division IV Part 1 of the Canada Labour Code. The parties involved in this agreement have mutually agreed that sections 52, 54 and 55 of Division IV Part 1 of the Canada Labour Code do not apply. Both the company and the union are committed to discussing measures that can support employees affected by change in adapting to its effects. If a regular employee with one year or more of service is terminated due, to the introduction of

change they will be entitled to severance pay based on completed years of service as outlined in the provided table (refer to reference link for details)."In response, to the proposal the employer has raised concerns about the 12 month notice period viewing it as restrictive and potentially harmful to the companys competitiveness. They propose revising it to a 120 day notice period. Additionally they emphasize the importance of engaging in discussions with the union after giving notice regarding training and adapting to changes. The employer is committed to providing training for employees who may be affected by these changes.” Technological advancements are crucial for the success of the company and in turn the success of the employees; however, these changes could result in redundancies and automation, ultimately leading to job replacements or eliminations. In order to ensure company profitability. Jim should suggest an amendment to the duration of the 12-month notice period. This is the language Jim should propose: · Implementing a notice period (120 days) before introducing changes. · Providing information in the notice regarding implementation dates relevant departments involved, nature of change and its impact on employees. · Ensuring appropriate training opportunities for employees who require skills due to changes. · Recognizing the benefits of progress while also acknowledging the importance of minimizing any impact on employees. · Ensuring that provisions for layoffs are subject to at least 90 days’ notice to the employees affected, due to the changes. Question 5: How should Jim respond to Union Proposals #7, #8, #9 and #10 #7: The company will provide the union with bulletin boards on company premises to use for union business. The company has agreed to install notice boards at locations, within its premises to display union-related information. These boards will be strategically placed in areas for all union

members. However, the management will have the authority to determine these boards' placement and size, ensuring they align with company policies and do not disrupt the atmosphere. #8: The company will deduct union dues from each bargaining unit member and remit the dues to the union on a monthly basis. To comply with the Rand formula, the company acknowledges its responsibility to deduct and forward union dues. To make this process more efficient, we suggest establishing a date for transferring dues which will enhance consistency and reliability in this procedure. # 9: Probationary Period-Decreased from Ninety (90) to Thirty (30) days. Regarding the proposal to reduce the evaluation period from ninety (90) days to thirty (30) days. Jim could request a comprehensive evaluation of an employee's suitability, for their position necessitates a ninety (90) day assessment period. We recommend maintaining this timeframe while committing to conducting performance reviews and providing written assessments. In cases where termination may occur during this time frame we assure you that it will be done fairly and with reasons. Detailed written justifications will be provided to both the employee and the union within two business days. # 10: The union reserves the right to add proposals to this list at any point during the negotiation process. Jim should agree to proposal 10 for the following reasons: Real World Examples; Unions commonly reserve the right to modify their bargaining proposals during negotiations. For instance, in 2016 the Public Service Alliance of Canada negotiated with Canada Post Corporation. Explicitly stated that they could adjust their proposals throughout the bargaining process. Requirement for Good Faith Negotiation ; According to the Canada Labour Code, both employers and unions must engage in negotiations in faith as soon as notice to bargain is given. Good faith negotiation involves being open to considering and adapting to changing proposals. Jim can certainly put forth the same proposal to be applied to the company's offers.

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Canadian labour law considers it essential for parties involved in collective bargaining to introduce and adjust proposals. This flexibility plays a role, in maintaining a fair negotiation process. Question 6 If the parties reach an impasse during negotiations, discuss the process that they must follow prior to a legal strike or lockout scenario. Remember to cite relevant legislation. When negotiating a bargaining agreement, it is crucial for the involved parties to adhere to the procedures outlined in the Labor Relations Act and other relevant laws before considering a lawful strike or lockout. This ensures the integrity of the negotiation process. If negotiations reach an impasse and the parties are unable to move, they must follow these steps: Collective Bargaining Negotiation: The deadlock should occur during negotiations after the expiration of the agreement. Requirements for Parties: · Get in touch with a conciliation officer from the Ministry of Labor, Training and Skills Development. · Receive either a no board notification or a report from a conciliation board appointed by the Ministry. · Observe a waiting period; either 17 days after receiving the no board notice or 10 days after receiving the conciliation report depending on which comes · Strike Voting: Unions excluding those in the building and construction industry must hold a majority vote in favour of striking.

· Role of Conciliation Officer or Mediator: Appointed by either party involved or by Minister's decision this individual plays a role in facilitating agreement and reporting outcomes to the Minister. In some cases, a conciliation board may be established to provide assistance. · Involvement of Ontario Labour Relations Board: Parties, within this sector must get in touch with this board which assigns a conciliation officer dedicated to working towards achieving an agreement. · When the conciliation officer determines that reaching an agreement is impossible, they issue what is called a "no board report." This report starts a countdown, towards the occurrence of a strike or lockout. · If negotiations fail, there are options to consider. These include continuing with bargaining holding a vote on the employer's offer, exploring interest arbitration or seeking assistance from a mediator. · According to Section 163.5(8) of the Labour Relations Act of 1995 it is not permissible to initiate strikes or lockouts due to failure in reaching an agreement (as stated in subsection 7). This emphasizes the importance of going through the conciliation process and exhausting all steps before considering a strike or lockout. By adhering to the Labor Relations Act all possible avenues for reaching an agreement are explored before resorting to actions such, as strikes or lockouts. This underscores the significance of engaging in faith bargaining by effectively utilizing mediation and conciliation processes and following labour relations procedures. Question 7 Negotiations have completely broken down and a Mediator has been appointed by the government to help settle the agreement. Discuss the Mediator’s final offer of settlement to the parties and draft a Memorandum of Agreement between the parties on that basis. The mediator's role is to facilitate discussions between the employer and the union, ensuring an impartial environment for both parties. Mediators are skilled at fostering understanding considering viewpoints and clarifying the matters, at hand. Their objective is to draft a Memorandum of Agreement, which documents the consensus reached during negotiations. This memorandum outlines the terms that have been mutually agreed upon.

Memorandum of Agreement Wilson Brothers Company ("Employer") Commercial Workers Union ("Union") The Union and Employer representatives agree, subject to ratification, that the previous collective agreement, which expires on November 19, 2023, shall be continued subject to the following amendments: Agreement Terms: 1. Agreement Duration: The contract remains valid for one year from its approval. 2. Wage Adjustment: We will implement a 20% wage increase for all job categories. 3. Technological Change: a. The Company will ensure that the union is informed at 60 days, in advance before implementing any changes that might affect the working conditions or employment status of employees. b. This notification will include details such as the date of the change departments involved, the nature of the change and how it will impact employees' terms of employment. c. In situations where employees need to acquire skills due to advancements the Company will make every effort to provide training d. Employees affected by changes resulting in job loss will have access to layoff provisions. Will be included in the recall list for up to 6 months. e. Both the Company and Union recognize the impact of advancements and will endeavour to minimize any effects on employees.

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f) The Company is committed to providing employee training for skills required due to changes during working hours without any cost incurred by the employee. 4 Contracting Out: a. The Company aims to avoid outsourcing work that can be efficiently and effectively performed by Wilson Brothers Toronto Plant employees within limits. b. The Union shall receive a notice period of 30 days and an opportunity, for discussion regarding any plans related to outsourcing work. c. The Company and Union will work together to evaluate if the employees, at Wilson Brothers Toronto Plant have the skills required for tasks that are currently outsourced. d. The decision to outsource will not result in employees losing their jobs as affected employees will be entitled to layoff provisions. e. Employees who are laid off due to outsourcing will remain on the recall list for a period of 6 months. f. The Union is open, to addressing concerns that lead to outsourcing and collaborating with the Company to retain work at Wilson Brothers Toronto Plant. g. Both parties agree to explore training opportunities in order to prevent situations where outsourcing becomes necessary. 5. Pension Fund Contribution: The company will contribute $500,000 to the pension fund in its year. 6 Subsidy for Safety Footwear: Each employee will receive a $50 stipend, from the employer to purchase safety boots. 7. Union Fee Collection: Regular deduction of union fees will be implemented for each union member following the company’s payroll schedule. 8. Bulletin Boards: The company will provide the union with bulletin boards on company premises to use solely for union business. 9. Probationary period: The Probationary period for new employees in the bargaining unit shall remain at 90 days. The employer reserves the right to determine without prejudice if the employee fulfils the duties of employment and holds sole discretion as to terminate the employee if they do not meet the job requirements.

10. The company and the union will reserve the right to add/amend proposals to this list at any time during the bargaining process. The parties agree to use their best efforts to ensure that their principals will ratify this memorandum of agreement. Dated on the ___day of ___ 2023 Signed by: On behalf of the Employer: _________________________ Jim Byer, Employer Representative Manager, Human Resources Wilson Brothers On behalf of the Union: ___________________________ Ralph Goodall, Union Representative Chief Spokesperson/Business Agent United Food and Commercial Workers Union References: https://www.ontario.ca/page/collective-bargaining#section-4 https://uswlocals.org/system/files/telus_twu_2016to2021_en_2.pdf https://www.ontario.ca/page/collective-bargaining#:%7E:text=A%20legal%20strike https://www.canada.ca/en/treasury-board-secretariat/services/collective-agreements/coll ective-bargaining/collective-bargaining-process.html

https://www.canada.ca/en/treasury-board-secretariat/services/collective-agreements/coll ective-bargaining/collective-bargaining-process.html https://psacunion.ca/sites/psac/files/attachments/pdfs/2016-10-18_psac_proposals_en_ 0.pdf https://www.ontario.ca/laws/statute/95l01#BK97 Module 9: Negotiations and the Memorandum of Agreement, Seneca College, 2023 Suffield, Larry, and Gary L. Gannon. Labour Relations . 5th ed., Pearson Canada Inc., 2019.

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Negotiations Assignment FINAL

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