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, Ontarios 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 provinces workforce is paid the minimum wage rate.

In early 2018, media outlets reported protests that occurred at various Tim Hortons 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 Hortons 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 Hortons 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 Hortons employees?

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