The present case is based on the Grocery right company, which operates in a very competitive market. The consumer of the industry is very price sensitive; therefore any increase in the price of the products leads to the loss of the revenue to the company. The performance of the company is already very low so the addressing the demand of the union is a very critical aspect for the company.
Due to the financial position of the company, it was very tough for the company to increase the wages and ultimately the bad financial position of the company definitely impact on the employees also. Earlier the company addresses the many demands of the employees, however, at present any increment in the wages will be very harmful for the financial position of the company. However, if the company also assumed about the hiring the new employee at the time of actions taken by the earlier employee, then also employees of the company will focus on the law related with the minimum terms of the employment protected by the government (Tucker, and Stromdahl, 2017).
In this study, the performance of the company was not so good therefore any increment in wages leads to a further fall in the performance of the company. The consumer of the product will get attracted towards another company if any strike was done by the labour and further, it will be more difficult for the company to recapture the consumers (Bosmans, Lewchuk, De Cuyper, Hardonk, Van Aerden and Vanroelen, 2017). However the company assumed that it is very easy to hired and trained the new employees for them at the time of any negative action taken by the existing employee, but in practice, it was not feasible.
Conclusion
On the basis of the above study, it has been seen that the union and the company, both should consider the issues raised by each other. If the union does not agree with the wages system of the company, then the performance of the business will more be reduced, and ultimately the employees will get impacted by this. This is because if the company will result in a loss, then it definitely removes the unnecessary workforce or may shut down the company, then the employees will get jobless. Further, the company also consider the issues raised by the union as if the worker on strike then the existing consumer will get a move towards another company. Due to the significant competition in the market, any consumer easily moves towards for the alternative products which are provided by the other company. Moreover, in the past, the company agreed with the many demands of the union. Therefore it is beneficial for the company as well for the union to negotiate and consider the viewpoints of the each other and decide the wages.
In the present study, the company named as Power Co. engaged in the manufacturing of the industrial product across Canada. The policy of the company is to pay the consistent wages and the benefit to its employee across the country. The company while deciding the wage rate for the labour does not take the aspect of the local market wage rate system. Moreover relationship of the company with the union almost very satisfied except the one or two plants. Power co is moving towards with the union for the contract based on the plant in the Edmonton region.
In this case, the company does not consider the local market wage rate while deciding the wages for its employee. Further, the government of Canada for enhancing the labour market condition made the rules, policies and procedures for the minimum wage rate system. With respect to this aspect, the company must follow all the described guideline as defined in the legislation. The further company has to pay the minimum wages to the employee according to the norms set up in the act. In the present situation, the company is not following the local market wage system, it is a very general aspect that the company should pay the wages as per the prevailing wage rate in the local market. Therefore the union can bargain with the company to pay the wages according to the wage system set up in the local market (Meer, and West, 2016.)
In the present case, the company has twelve unionized plants, and the company follows the wage rate parity system in all the operations of the company. Further, the negotiation for the wage rate system of all the plants are not the same; each pant conducts negotiation with the union for different collective agreement. Since; almost all the unions are very satisfied except the one or two plants situated at the British Columbia. Along with this, the operations of the company are very connected; therefore if any plant does not operate due to the strike, then the other plant compensate for the lost production. Due to the above reason, the bargaining power of the company is very strong.
On the basis of the above description, it has been concluded that the company possess the more bargaining power as compared with the union. Due to the integrated operations of the plant, the company will not worry about any lost production due to the strike by the labour because the other plant of the company will compensate the lost production. Moreover many unions satisfied with the company, it is due to the fact that the wage system of the company is proper. Therefore the company can influence the union more effectively. However, the union may also with their basic rights, and the minimum wage system can bargain with the company (Dube, Lester, and Reich, 2016). Therefore the company by considering the local market wage rate system and the rights of the employee should address the issues raised by the union and negotiate with the union (Aloisi, 2015).
The present study based on the Chemical Corp, which is large capital-intensive industrial chemical company engaging in the operations across Canada. Earlier the company was hundred per cent unionized however gradually company follow the policy of the union avoidance and shutting down their operation and started the new operation at Mexico. At present, the company is only two third unionized. In this study, the union officer is under pressure for establishing the wage parity system across all the operations of the company by entering into the negotiation with the company.
It is very relevant to set up the wage parity system across the operations of the company. Every employee of the company should receive the equal pay for the same work. It will lead to the similarity of the wage system across the company (McGowan, and Ng, 2016). Further, the union raises this issue at the time when the company is in a growing stage, any strike by the union deteriorates the profits of the company. Therefore the company can agree with the negotiation according to the wish of the union.
Since the company is in a growing stage, any loss of the production will affect the profitability of the company very significantly. Further along with the profitability the reputation of the company also going affected adversely if the company does not negotiate with the union. On the other part, the investment cost for the operations of the company is very high. Therefore any strike by the company leads to the losses to the company and the cost of the non-considering the demand raised by the union will be very much higher than the cost the wages to the company.
Conclusion
It has been concluded that the union has more bargaining power as compared with the company. Since the company is the capital intensive and any strike by the union leaders to the company in a loss, therefore the company will try to negotiate with union so that the working of the employees cannot be affected and also loss from the non-operations of the business can be minimized (Ameri Schur, Adya, Bentley, McKay and Kruse 2018). Apart from the above the issues raised by the union is also very genuine, since in the company the payment system of the wages to their employees should be the same for the same work. Each employee should receive the wages equal to the wages received by another employee across all the plants of the company for the same work and the working hour of the employee (Hirschl, 2015). Therefore due to the above reasons, it has been concluded that union possess the significant bargaining power, and the company has to agree with the demands raised by the union, and the same will be the benefit for the company.
References
Tucker, E.M. &Stromdahl, A., (2017). Fixed-Term Contracts and Principle of Equal Treatment in Canada. IUSLabor.
Bosmans, K., Lewchuk, W., De Cuyper, N., Hardonk, S., Van Aerden, K. &Vanroelen, C., (2017). The experience of employment strain and activation among temporary agency workers in Canada. Society, Health & Vulnerability, 8(1), p.1306914.
McGowan, R.A. &Ng, E.S., (2016). Employment equity in Canada: Making sense of employee discourses of misunderstanding, resistance, and support. Canadian Public Administration, 59(2), pp.310-329.
Ameri, M., Schur, L., Adya, M., Bentley, F.S., McKay, P. &Kruse, D., (2018). The disability employment puzzle: A field experiment on employer hiring behavior. ILR Review, 71(2), pp.329-364.
Hirschl, R., (2015). Constitutional Renewal: Comparative Lessons for Canada. Queen’s LJ, 41, p.i.
Aloisi, A., (2015). Commoditized workers: Case study research on labor law issues arising from a set of on-demand/gig economy platforms. Comp. Lab. L. & Pol’y J., 37, p.653.
Meer, J. &West, J., (2016). Effects of the minimum wage on employment dynamics. Journal of Human Resources, 51(2), pp.500-522.
Dube, A., Lester, T.W. & Reich, M., (2016). Minimum wage shocks, employment flows, and labor market frictions. Journal of Labor Economics, 34(3), pp.663-704.
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