1. CASE STUDY: Grant Office LTD (15 marks total)

Grant Office LTD manufactures office equipment including filing cabinets, desks, and cabinets. The production employees at the company are representated by a union. The only terms of the collective agreement that are relevant to the situation below are as follows:

Article 1: The company agrees that work normally performed by employees within the bargaining unit shall continue to be so performed but bargaining unit employees. However, the union recognized that the flexibility necessary to the company's operations requires that such work be carried out from time to time, for varying period of time, by employees not within the bargaining unit. This will not be exercised in such a way as to cause the layoff or permanent replacement or reduction in the regular earnings of any bargaining unit member.

Article 2.01: Seniority with the company shall continue to accrue during an employees period of layoff, as long as the employee remains eligible for recall. An employee on layoff shall not be entitled to any benefit conferred by the Agreement on regular employees, except as specifically provided for in this agreement.

Article 2.02: When work again becomes available in a classification, the laid-off and displaced employees shall be recalled in accordance with their bargaining unit seniority provided the employee is able to do the work available.

Letter of understanding:

RE TEMPORARY RECALL/TRANSFER

Further to discussions held on November 5 2009, between management and union representatives, the company and the union agree to the following, which hereby forms part of the collective agreement:

1. For the purpose of this agreement, temporary work shall mean work normally performed by employees within the bargaining unit.
2. A Temporary Work List will be created on a classification by classification basis. An employee will be placed on the list if he or she has previously held the classification and is out of plant on layoff unless he or she has expressly and in writing indicated his or her wish to not be on the list.
3. Where the employer determines that the temporary work is available, the employer will by telephone begin contacting employees with the requisite classification background in order of seniority to offer that temporary work, the first employee to accept the offer will receive it.

After a decline in sales, the company laid off eight maintenance employees on January 4, 2010. The employees work included installation and repair of equipment, and maintenance of facilities including painting. In April 2010, the company decided to pain the production area of the plant. To complete this project, the company entered into a contract with the General Maintenance Company. The union filed a grievance claiming that the work begin completed by the General Maintenance Company should have been done by recalling employees on layoff.

What is meant by seniority and why do unions prefer it to be included in a collective agreement? ii What is the significance of seniority in this case?

What is the value of paragraphs (1) and (2) in the letter of understanding to both the union and the employer in this case?

Do you think management representatives could successfully use Article 1 in the agreement to defend their decision to contract with General Management Company? Why: