Submitted By Harleen Kaur (c0733939)
Identify the employers labour relations strategy (2 marks), and explain possible reasons for this strategy (8 marks).
Ans. The strategy of labour relations used in the case study scenario of Walmart and UFCW is Union Opposition. Union Opposition is a strategy that describes a situation where one association or a firm oppose to deal with union or to have trade union for a business firm to deal with matters of labours.
The circumstances in this case were such that managers and association of Walmart opted both worthy procedures and wrong legal activities to oppose union at any cost.
Walmart at every level tried to stop its employees to regulate their rights to be a part of union and to sign up for collective bargaining agreement.
Competitive strategy of the Walmart: Walmart was having a cost cutting strategy in which it was competing by its lowest prices for products in a market.
To avoid compensation costs or other expenses, Walmart was against the unionization. Along with cost reduction strategy, Walmart also deals with some distinctive product those of its competitors, so if there would be presence of trade union, it could give motivation to employees to suit against material of the product and greeting the customers with services. (Suffield & Gannon, 2016, pp. 76-77)
Union or Non-union Status of Competitors: Decision of opposing a trade union was also of the matter that, all the rival firms of Walmart were also non-unionized.
every one of the contenders of Walmart were non-unionized. If Walmart would have been a unionized defender, it would be occurring more other costs than those of its rivals. (Suffield & Gannon, 2016, pp.77)
Management Morals or Philosophy: Personal opinions and mindset of authorities of Walmart could also be the reason behind opposition of union labours. Personal values and morals of managers to oppose unionization could even overcome the choice of other members regarding collaborative decision for having trade unions (Suffield & Gannon, 2016, pp.83)
Experience with Unionization: Past resemblance with the incidents in which union was a part and resulted as having a negative impact with companies dealing and members was also a reason to oppose union people. As Walmart just shut down one of his plant at Jonquiere, Quebec due to his negative experience with union traders. (Suffield & Gannon, 2016, pp.84)
Union Philosophy and Policy: Managers mainly are against unions due to interference of unions in the effective and profitable decisions of company. No company want to sacrifice its profit due to social importance. If unionization would have been in Walmart, later may have to sacrifice profitable approach towards product and business. (Suffield & Gannon, 2016, pp.84)
Identify and explain the environmental factors referred to in Chapter 2 affecting this situation (10 marks).
Ans. There are five condition components which were influencing this situation:
Due to the closing of one branch at Jonquiere, Quebec it was very fortune that Walmart had suffered economic losses. Due to closure of the branch and financial losses, the leader of Saskatchewan Federation of Labor issued, “monetary fear-based oppression” against Canadian employees. (Suffield and Gannon, 2016, pp. 22-24).
As union banged on in winning the case in 2013, Court announced that Walmart have violated the law, and incurred the huge compensation costs to its previously working employees in Quebec store.
Even Walmart have spent lots and lots of money in the curriculum of courts during the hearings for opposing unions.
In this whole scenario, NDP supported UFWC and till 2007 power was in the hands of NDP. During this period the legislature havent made any changes to the arrangements with respect to the vote on affirmation applications.
Saskatchewan politicians were supporting Walmart, taking the approach of politicians some changes were seen that referred to have union under Trade Union Act there will be a voting system under the purview of this gathering the alterations came into spot to the Trade Union Act required a vote (Suffield and Gannon, 2016, p. 84).
Due to personal moral and beliefs of managers they opposed union. With regard to employees preference, Walmart announced that they do alternatively cares about their employees and rights, but they dont need any third-party involvement for their employees to be taken care of. (Suffield and Gannon, 2016, p. 26).
Just to inform employees of Saskatchewan, the results of favoring and forming unions, Walmart unemployed many other employees of Quebec. Unemployment will be the major problem in society for those whose lifestyle was dependent on that respective job.
Walmart even imposed their mindset of opposing the union to other employees as well by predicting them as not worthy legislation.
There were alterations in the Trade Union Act regarding the voting system of trade union formation decision
Mainly the Canadian Charter of Freedom was issued by Walmart authorities to the management to stay free and away from the unions. (Suffield and Gannon, 2016, p. 83)
Walmart have not followed the legislations of labor relations that meant the human rights of employees to join union. Walmart just violated the rights of employees by not giving them chance to have or deny union as per their rights. (Suffield & Gannon, 2016, pp. 28-29).
www.walmartworkerscanada.ca depicts the step and action taken by Walmart to explore the ideas and experience with relevant colleagues. This media step reflects that how Walmart just used its spending plan by using legal means to reciprocate against collective bargaining scheme, and depicted that Walmart is best in stopping its employees to join and support union. (Suffield and Gannon, 2016, p. 83)
Suffield, L., Gannon, G. L. (2016). Labour Relations (4th Canadian ed.). Toronto, ON: Pearson.