intro

D-J Composite Inc. is an aerospace manufacturing plant in Ganders,

Newfoundland, based from D-J Engineering, Inc. headquartered in Augusta, Kansas
State with 34 unionized employees. The original contract between unions and
employers expired in March 31, 2015, so negotiation happened. In December 2016,
negotiation have not reached an agreement then employees voted to strike followed by
a lockout by the company which froze relations for 2 years. During these 2 years
tension, we will review the story and analyze the situations with relating business
concepts.

The business concepts in this conflict includes, collective bargaining, .,.,.,,l,l.

description

The bargaining cycle begins with employee union group representing DJ Composite
called Unifor Local 597 and hired consultant went on the tables as a bargaining unit to
negotiate with the managements, which has been negotiated for 21 months. Both
parties have to negotiate in good faith, meaning both sides have to present their
demands, sessions reaching the bargaining zone. DJ Composite has to recognize the
right for the employees to freely negotiate and be heard. The company proposed a new
offer to replace the expiring one that gradually increase wages over time, average
$16.2/hr to $16.74, on the other hand, the bargaining unit wants more, trying to improve
workers with lower wages who has been working for over 10 years, high seniority.
Compensation tactics that employees have used is the Cost of Living Adjustment, to get
raises to be on par with cost of living in Newfoundland. We analyzed the year 2016
Consumer Price Index(CPI) that the cost of living went up by 2.7% in NewfoundLand
and Labrador, as a result, employees of Newfoundland is going up. Attempts of
collective bargaining to negotiate and agree on wage contract were rejected
unanimously by the workers in 2016. Bargaining has failed, therefore, company and it’s
employees used tactics in December of 2016. Employees unanimous voted to strike,
unions allow employees to walk off their work as a way to gather public sympathy. D-J
Composite used the tactic of lockout on their 34 union employees so they cannot work.
“The costs to the employer are lost production and profits; the costs to the workers are
lost wages. The side that imposes a greater cost of disagreement on the other, while
withstanding the costs they incur themselves, is likely to prevail. Employer is hoping the
union and its employees will surrender which might work in Kansas, but it won't happen
as easily here”. As a result of the strike, pickets were set outside the plant, with Unifor
flags, fences, and union officers and workers protesting outside. Later on, DJ
Composite partially continued their operations by hiring strikebreakers, known as scabs,
which are temporary replacement workers. Unions have been striking without pay, only
getting union pay and employment insurance.
FAMILY++

By the end of 2018, the Newfoundland government stepped in to the conflict putting
them into a binding arbitration. There is a neutral third party expert that will handle both
side’s disputes which will be settled. In arbitration, the third party will have to make a
decision after hearing from both sides. The settlement went in favour of the employer,
losing one third of the workforce in order to sustain the business but eliminated merit
based pay by performance into seniority favored by unions. Violations on collective
bargaining has been seen, during 2017, DJ Composite being found guilty of bad faith
bargaining where “no intention of fulfilling its obligations to these workers under the
province's employment laws”, low balling their settlements to not meet the bargaining
zone, as well as, unjustified delays.

Annual step increase+

COMPANY VIEW++ (regarding pay increase and industry)

Arbitrator’s view++ (involving me bad idea now non-biased no win win situation unhappy for
everyone)
Employees view+++ arbitrator took companys side

Analyze

Chapter 1.

Richard Alexander, executive director of the N.L. Employers Council. says "This issue is very
concerning to every employer in this province, particularly unionized employers," since if the
member of the union can get raise and win the negotiation, other employees may all go on strike.
So we see how this incident can serve as a threat to other businesses as an external environment
and endanger other businesses that have unionized employers. This is an example of
Government As Regulator as the government intervened in the middle and latter part of the
story to mediate and support the negotiation. They later on admitted that they regretted their
actions of intervention as it gathered unwanted attention of other companies wanting the similar
treatment.

Chapter 3. Behaviour Towards Employees (ETHICS)

Business Ethics – Ethical or unethical behaviours by a manger or employees of an organization

Employees were unethical on their own part, Union went on a strike but tried to stop, intimidate
strikebreakers, known as scabs, who were doing their job. However, the business broke the
“Business Ethics” side, by bad faith bargaining where “no intention of fulfilling its obligations
to these workers under the province's employment laws”, low balling their settlements to not
meet the bargaining zone, as well as, unjustified delays.
Conflict of Interest – Occurs when an activity benefits the employee at the expense of the
employer.
Employees were harassing and making violent death threats to the temporary workers (Scabs)
to inhibit all operation of the company.

Chapter 8. Union

--Collective Bargaining - The process through which union leaders and management personnel
negotiate common terms and conditions of employment for those workers represented by the
union.

Providing Compensation to employees of the company is an important role of a

company. While employees are often rightfully compensated for their labour in other firms, the
employees at DJ-Composites were not properly receiving enough compensation for their work.
They were severely under-compensated down to the most basic aspect, Wages, which is the
dollars paid based on the number of hours worked, nor the Salary which is the dollars paid at
regular intervals in return for doing a job regardless of the amount of time or output involved.
Seniority pay based on how long they worked and cost of living is rising, 2.7% increase
in the cost of living in the year 2016 for Newfoundland and Labrador, are the main reasons
employees wanted higher wage and salary which was the starting point of the strike, for
instance, Mike Stockley, who has worked with the company for 12 years, said his wage of just
over $13.50 per hour does not cover his cost of living, he didn’t get any raise in those 12 years,
'That's all we ask for is a fair raise, to make a living to feed our families and that's it.' Mike
Stockley said. In the end of the story, the company accepted the unions demand for annual step
increase for wages but got rid of the merit based pay based on performance and took on pay
based on seniority.  Moreover they were not receiving any benefits of non financial rewards
which contains the protection plans, Canada pension plan or the EI.  As it shown In the
aftermath of the strike, former employees were left stranded as they could not claim any
Protection Plans (EI). However, the Court deemed this case as special and allowed the
employees to claim EI whereas normally employees on strike cannot claim it. Several attempts
of collective bargaining to negotiate and agree on wages, job security, and etc, were failed.
Lana Payne claimed that some employees were “red circled”, which means they would
get no raise for three years. Comparable Worth - A legal concept that aims to pay equal wages
for work of equal value, whereas the  DJ Composite were paying less to their employees
compared to the market wage of other similar employees in the field which is $35/hr in other
places as compared to only $13.5 in that firm, the pay for performance or pay for knowledge was
totally neglected.
Labour Union - A group of individuals who work together to achieve shared job-related goals.
Labour Relations - The overall process of dealing with employees who are represented by a
union.
Collective Bargaining - The process through which union leaders and management personnel
negotiate common terms and conditions of employment for those workers represented by the
union.
 In collective bargaining, employers have to respect the labour legislation which protects
employees rights. Privy council order 1003 protects employees right to bargain
collectively, unfair treatment by managements, have labour boards with authority to
bargain for them, and prohibition of strikes and lockout unless failed bargain.  
 D-J Composite disrespected the right for employees to bargain collectively, order 1003,
twice with bad faith bargaining.
 Unifor is a union organization that represents the employees to bargain for them
 Due to failed bargaining in December 2016, the last rule of order 1003, allows employees
to vote for a strike and employers to apply lockout
DJ-Composite is classified as “an independent local union”, meaning they are not affiliated
with any labour organizations and they conduct negotiations with the management only.
Strike - A tactic of labour unions in which members temporarily walk off the job and refuse to
work, in order to win concessions from management
Lockout - A tactic of management in which the firm physically denies employees access to the
workplace to pressure worker to agree on the company’s latest contract offer
Arbitration - A method of setting a contract dispute in which a neutral third party imposes a
binding settlement on the disputing parties.
Mediation failed. Arbitration was successful as the Arbitrator helped both side agree on a 3
year contract ending the long dispute.

Chapter 9 Employee Satisfaction

After all these negotiations and arguments, it is expected that based on the Hawthorne
Effect, the employees would not be that motivated to perform as good as they can since they feel
not respected and under appreciated by the company. That is why we see that at the end Oram,
plant chair of Unifor 597, insists on leaving the past behind them. “If we want a future there for
everybody, you gotta pick up and move on." states Oram. Also, it is possible that the managers
of the company would adapt a Theory X management style since the managers might develop
the mindset that the employees do not feel responsible enough towards the company.

Attitude at Work

In order to function as an effective organization, employees returning to work after the strike
needs to have a positive attitude and move pass the whole situation.
Psychological Contract

The set of expectations held by an employee concerning what he or she will contribute to an
organization and what the organization will provide the employee in return.

Employees were putting in effort expected by them at the workplace, however the inducements
from the organization were not satisfying them. Job security, pay, benefits, and etc.

Maslow’s Hierarchy of needs

The employees were not meeting even the most basic aspect of the pyramid, which is the
Physiological needs which includes salary and security needs of benefits.

Equity Theory

Theory that people compare what they contribute to their job with what they get in return and
their input and output ratio with that of other employees = seniority problem

Conclusion

Transparent about company’s financial situation to the employees

Employees feel included and can see that the company care
If company can give them a raise they would lie or not
Company have to have the right to lay off employees if they are not making enough money
providing enough evidence.
Better HR social