Employee

Stakeholders
and Workplace
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© 2005 by Nelson, a division of Thomson Canada Limited. 1

Chapter Fifteen Objectives
• Identify the major changes in the workforce today
• Outline the characteristics of the new social
contract
• Explain the employee rights movement
• Discuss the notion of just cause
• Discuss the right to due process and fair treatment
• Describe companies action for a friendlier
workplace
• Elaborate on the freedom-of- speech issue and
whistle-blowing
© 2005 by Nelson, a division of Thomson Canada Limited. 2
Chapter Fifteen Outline
• The New Social • The Right to Due
Contract Process and Fair
• The Employee Rights Treatment
Movement • Freedom of Expression
• The Right Not to Be in the Workplace
Fired Without Cause • Whistle Blowing
• Summary

© 2005 by Nelson, a division of Thomson Canada Limited. 3

Introduction to Chapter Fifteen
• Consider how global competition has
reshaped the social contract between
organizations and their workers
• Consider the trend of expanding employee
rights

© 2005 by Nelson, a division of Thomson Canada Limited. 4

The New Social Contract

Business Understandings
Organization’s Employee’s
Expectations Expectations

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Social Contract
Reasons for the Change in the
Social Contract
• Global Competition
• Technology advances
• Deregulation

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Social Contract: Changes
Old Social Contract New Social Contract
Job security Few tenure arrangements
Life careers with one employer Few life careers; changes common
Loyalty to employer Loyalty to self
Paternalism Relationships
Personal responsibility for one’s
Sense of entitlement
job future
Stable, rising income Pay for “value added”
Focus on individual Focus on team building and
accomplishments projects

© 2005 by Nelson, a division of Thomson Canada Limited. 7

Employee Rights Movement
For nonunion workers, employee rights issue
continues to be a problem . . . the desire to
be treated with dignity and respect, to have a
right to due process,
privacy, freedom of speech, and
safety, and even a right to a job.

© 2005 by Nelson, a division of Thomson Canada Limited. 8

Employee Rights Movement
Sources of Employee Rights
• Statutory rights
• Collective bargaining rights
• Enterprise rights

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Employee Rights Movement
Models of Management Morality and
their Orientation Toward Employees

Moral Amoral Immoral

End Law Means

© 2005 by Nelson, a division of Thomson Canada Limited. 10

Right Not to be Fired Without
Just Cause
Employment-at-Will Doctrine
• Public policy exceptions
• Contractual actions
• Breach of good faith actions

© 2005 by Nelson, a division of Thomson Canada Limited. 11

Right Not to be Fired Without Just
Cause
Management’s Response
1. Obey the law
2. Investigate all complaints in good faith
3. Deal in good faith with employees
4. Fire only for good cause

© 2005 by Nelson, a division of Thomson Canada Limited. 12

The Right to Due Process
Types of Due Process
• Substantive due process
– Right to fair treatment
• Procedural due process
– Right to a fair system of decision making

© 2005 by Nelson, a division of Thomson Canada Limited. 13

Alternative Dispute Resolution:
Ethical Ways for Due Process
Hearing procedure—permits employees to be
represented by attorney or neutral party

Peer Review Panel—Fellow

workers in the same job family and
at a grade level equal to or higher
than the employee with a grievance

Ombudsperson—A “troubleshooter” investigates and helps

achieve equitable settlements for employee complaints

© 2005 by Nelson, a division of Thomson Canada Limited. 14

Whistle Blowing
Corporat
Employe
e
Loyalty e
Employer
Obedience
Confidentiality

Corporat Responsibility Responsibility

Employe
e Public
e
Employer
(Has certain
rights)
(Has certain (Has certain
rights) rights)
Whistle blowing

© 2005 by Nelson, a division of Thomson Canada Limited. 15

Consequences of Whistle-
Blowing
• More stringent criticism of work
• Less desirable work assignments
• Pressure to drop charges against company
• Heavier workloads
• Loss perquisites
• Exclusion from meetings previously attended

© 2005 by Nelson, a division of Thomson Canada Limited. 16

Whistle-Blowing
Seven Stages of Life as a Whistle-Blower
• Discovery of the organizational abuse
• Reflection on what action to take
• Confrontation with superiors
• Probable Retaliation
• Long haul of legal action
• Termination of the case
• Going on to a new life

© 2005 by Nelson, a division of Thomson Canada Limited. 17

Whistle-Blowing
Examples of Government Protection
• Environmental Protection Act
• Labour Code
• Competition Law
• Human Rights Code

© 2005 by Nelson, a division of Thomson Canada Limited. 18

Management’s Preemptive
Responses to Whistle-Blowing
• Employees should believe that firms will not
interfere with their basic political freedoms.
• Grievance procedures should exist so
employees have a procedure for complaints
and not “blow the whistle.”
• Review the organization’s concept of social
responsibility so that it is not simply, giving to
charity.

© 2005 by Nelson, a division of Thomson Canada Limited. 19

Management’s Preemptive
Responses to Whistle-Blowing
• Recognize formally, respect for the
conscience of employees
• Realize that dealing harshly with whistle
blowing can result in adverse public reaction

© 2005 by Nelson, a division of Thomson Canada Limited. 20

Selected Key Terms
• Alternative dispute • Implied contracts
resolution • Ombudsperson
• Contractual rights • Open-door policy
• Due process • Peer review panel
• Employee
• Private property
constitutionalism
• Social contract
• Employee rights
• Hearing procedure
• Statutory rights
• Whistle-blower
© 2005 by Nelson, a division of Thomson Canada Limited. 21