Discussion Assignment 2 (5%) - Contents of a Collective Agreement (Week 5)

Are Management Rights Clauses required in a Collective Agreement? Explain. (2 Marks)

Although the Management Rights clauses are not legislatively required in a Collective Agreement (CA)
but they are mostly negotiated between the parties and are added to the Collective agreement to
provide clarification and establish the parameters of the authority of the management in the workplace.
This clause stipulates the management's authority over organizational matters, unless specified
otherwise in the collective bargaining agreement. While not mandatory, management rights clauses are
negotiated between the employer and the union as part of the collective bargaining agreement to
outline the scope of authority and decision-making power of the employer such as hiring, firing,
promotions, demotions, introducing new polices, processes etc. With the presence of this clause in the
CA, many conflicts can be prevented between the union and the employer as both parties have clear
understanding on the limitations of management over workplace issues. The language of the clause
plays a crucial role and may result in working in favor of or against the employer. In conclusion,
Management Rights clauses set a foundation of the collective agreement of the rights of the parties
maintaining a mutual understanding, promoting efficient operations of the workplace and a balanced
approach to the administration of the Collective Agreement.

Do you recommend that Wilson Brothers include Management Rights Clauses in their agreements?
Explain why or why not. (1 Mark)

I would highly recommend Wilson Brothers to include a Management Rights clause in the Collective
Agreement and introduce some language around the challenges they have faced in their unionized
plants. Most of the operations of the Wilson Brothers are non-unionized, however, the locations where
they have Labour agreements challenges have risen around the flexibility of decision making regarding
development of new product ideas and launch of new products. The time-consuming protocols have
created a less flexible operational decision making for Wilson Brother. With the introduction of some
language around the development or launching new products and outlining in the clause that “the
management retains the right to exercise discretion and make decisions regarding the development and
launch of new products” can work in the favor of Wilson Brothers. Once both parties agree, this will set
clear parameters of authority for both the parties. This will benefit Wilson Brothers in having operational
flexibility.

Provide constructive feedback to at least two other students' postings. (2 Marks)

Gabriella Michieli CF

Discussion 2

1. Management rights clauses, though not mandatory in collective agreements, are voluntary provisions
agreed upon by both union and management teams. Arbitrators typically follow the reserved rights
theory, affirming that the employer retains all management rights except those explicitly limited by the
agreement. While collective agreements often restrict management rights, it's essential to include these
clauses. Firstly, collective agreements often prioritize employee benefits and union empowerment,
posing risks to effective business management. Secondly, safeguarding management rights benefits
employees by fostering successful business management, potentially creating more job opportunities
and overtime.

2. In considering whether Wilson Brothers should include Management Rights Clauses in their
agreements, the top three factors to prioritize are operational flexibility, labor relations, and risk
mitigation. Wilson Brothers has a history of quick pace operations which has enabled them to adapt to
market shifts. Including Management Rights Clauses would help them keep this flexibility by confirming
the company's control over important decisions. Also, as the company might face unions, especially in
places like Vancouver where hiring is tough, having clear rules about management rights would be
helpful during negotiations. And with challenges like tough competition and economic ups and downs,
having these clauses would help them deal with risks better. By thinking about these three things, Wilson
Brothers can keep their flexibility, manage relations with workers well, and lower their risks, which would
help them succeed in the long run.

Hi Gabrielle,

I concur with your views. With the terms covered in the Collective Agreement, Management has limited
decision making in the certain circumstances. However, with the Management Rights clause in the
collective agreement, some of the management’s rights around building better operational environment
for the employer and employees can tremendously benefit the employer.

I agree with your recommendation to Wilson Brothers to have management rights clause in the
collective bargaining agreement. Given the history of the company and Wilson Brothers as prime
decision makers, collective Agreement will restrict their flexibility. Your reasoning supporting your
outlook has convinced me that Wilson Should have Management Rights Clause with language in
Collective Agreement around decisions making, recruitment challenges as well and the Managements
right to exercise in such circumstances. This will set clear limits on each party’s authority.
Danielle Dafoe SF

Discussion #2

Management Rights Clauses are voluntary and are not required by legislation but they are typically still
an important part of a Collective Agreement. Management Rights is an article within the Collective
Agreement that generally states that “management retains the authority to manage the organization,
except as otherwise provided in the collective agreement.” (Suffield & Gannon, 2020, p. 141). It is
important that Management has this clause in the collective agreement because without it, they may
not be able to introduce new policies that are not already specified in the collective agreement. It also
allows for the understanding between the Union and Management, that Management still has the right
to run their business as they see fit and can make changes to production, security, location, etc. that are
not already outlined. It is also important that both Management and the Union agree on the depth of
the wording of this clause. If there is a disagreement and it does go to arbitration, the wording would be
the determining factor and whether Management did act reasonably or as per the exact statement in
the clause.

I do believe that Wilson Brothers should have a Management Rights Clause in their Collective
Agreement. Part of what made Wilson Brothers so successful was their ability to make quick decisions.
If Wilson Brothers is restricted with what they are and not able to do with their production and business
growth, it may be detrimental to the company as a whole. Adding new technologies may be seen to
management as their right, but the union would also have to right (if there is a clause in their collective
agreement) that would ensure employees are not laid off due to new technology or outsourcing to other
companies.

Hi Danielle,

Thank you for sharing your viewpoint. You have provided clear understanding on the significance of
having a management rights clause in the collective agreement. By giving the example of how they can
use the language in the clause to introduce policies for instance gives an example of the utilization of the
language in the favor of employee. I cannot agree more with your statement how the wording of the
clause can be used in the favor or against the management.

Wilson Brothers have always operated as the brothers are the prime power in the company with all their
decision making whether its launch of new products or salary placements or succession planning. I agree
how the union may have their concerns with the introduction of new technology and they may grieve it.