Collective Bargaining Canada Case Study 2022

Running Head: MANAGEMENT 0
CASE STUDY ON COLLECTIVE BARGAINING
CANADA
[DATE]
[Company name]
[Company address]

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QUESTION 1
In Canadian society the most important part of the institution covers the vast range of
activities, organizations and processes and that is what which is known as collective bargaining.
Dynamic bargaining in its simplest form can be explained as forming contracts. The basic
motives of any person to get into this type of contract is to get those deals which can serve their
interest in the best possible way. Bargaining is very essential for the worker to reach its goal and
for the employer it is an implication with their economic ability for setting freely the conditions
of working in accordance with the needs of the market. Thus it can be seen that the thing which
provides motivation for getting engaged into dynamic bargaining is very much unbalanced from
the very beginning. One attains a glimpse of information regarding the emotions and thoughts of
the negotiators as they passes through the stages of bargaining. There are many people who says
that bargaining is the most effective strategy as compared to that of any other but Carrell and
Heavrin very smartly neglected this fact (Allen, Chapman, Echenique, & Shum, 2016).
The five approaches to dynamic bargaining involves avoiding, accommodating,
collaborating, competing and compromising. Their efficiency basically depends upon
determining the circumstance through which a party tries to reach its goal. Carrell and Heavrin
emphasised more upon the effectiveness of negotiation as compared to that of bargaining. They
proved that engaging in the method of negotiation a party will be taken more seriously, there can
be clear and accurate communication between both the parties etc. The above answer very
clearly shows the importance of dynamic bargaining which slowly and gradually got shifted
towards negotiating (Rose, 2016).

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In the given case study also the US branch of the German automobile company was
facing a lot of problems, the workers job were getting disappeared, wages were getting deducted
and were not paying off though the local government tried hard but were unable to meet up with
the needs of the workers.
QUESTION 2
A leading bargaining report on CAW the Canada general Motors determined the different
strategies which could be implemented by the government so to provide the union workers to
have better healthcare facilities i.e. drug plan, semi private hospitals, other modification for
earning benefits, time and period of the job, security of income etc. Bankruptcy was faced by the
German branch of this American automobile manufacturing company which took a step of
deducting and not paying the workers their deserved salaries. In lieu of this the workers strongly
opposed the concept of deducting the justified wages. As a consequence of bankruptcy the
company was compelled to manage the capital assets by making reductions.
For achieving a settlement between the workers and the employers the union employ for
underwent the following strategies:
First one is to create a process which can take up negotiating power from the hands of the
worker in the workplace and they are also made to follow all those provisions which are
mentioned in their agreements. In this way the employers are sequestered from the direct
penalties of the decisions taken marginally.
Second one focuses on the delaying the resolution of concerns by enhancing the use of
grievance procedure which can take around a month time to reach up to a decision. All the issues

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related to dynamic bargaining agreements must be fixed and keep in waiting till the next session
of negotiation is been declared (Craypo & Nissen, 2019).
Third one states that negotiation is considered as the ultimate process of making
compromises. This is the main reason for which many workers will not even like to go for the
option of collective bargaining. The bargaining regime basically suits the issues related to the
money i.e. wages, benefits and core conditioned working.
These strategies are been chosen because the already existing bargaining regime has a
very poor track record at resolving those issues which are related to the control of the employer
over the workplaces and process of work. Through this process of bargaining it is only the
employers who get benefitted. Thus to avoid the imbalances between the union and the employer
the above mentioned strategies are been implemented (Hardy, 2017).
The union was eagerly wanting for the strategies of Edscha to be implemented for them
by the government whose basic duty was to implement such steps which can be helpful to protect
their rights and production as whole but still there are some areas who are not able to implement
it properly. The factors of this strategy which is basically required by the workers are that the
workers are not required to have a degree or any other type of experience for starting up with the
new works, age limit of the worker is not a big issue to work, salary of the workers must be
extending after every short period of time. Equal opportunity must be given to the women also as
compared to men, workers are to be paid at the correct time and with proper incentives
(Remscheid, Edscha again certified as Top Automotive Employer, 2015).
In the following case study also the government used all the flexible tools and equipment
for addressing the challenges, policies were implemented by the government in enhancing the

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Labour, markets etc. Through the Edscha theory the workers became aware and understood the
importance of technological advancement required. This is because they demanded for the
technological advancements which will safeguard their lives and also time. Hence there was a
huge distinction between the things expected and the reality. Equipment such as diesel
generators, nuclear powers, energy storage machinery were used to ensure the peace between the
union and the workers.
QUESTION 3
The strategies for avoiding contractual obligation by the employers are as follows:
He i.e. the employer would always try to take those steps which can maximize the
productive outcomes of a worker and minimize their wages. This will hence create a gap
between value and cost of production.
Employer needs to find out those ways in which they can translate the production
potential into the actual production which can help in necessitating the daily negotiations.
Capitalism offers greater power to the employers as compared to that of the workers,
through this they can compel the worker to act in their desired manner and meet up with their
interest (canadaone, 2010).
They need to convince the society that they are the indispensable part of their community
and has high demand and more of conciliatory as compared to that of the unions.
The process of negotiation helps to put the union on the position of junior while
bargaining and gave up an important position to the employers.

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Workers are to undergo an agreement or the process of grievance which can protect the
employer from meeting the direct consequences of managerial decisions. These techniques
helped to maintain the peace between the union and the employer and also protects the employer
at the time of emergence of the risky situations created by the working unions (Stam, 2019).
Due to all the problems and the challenges faced by the company the workers without
giving any notices disappeared in the given case study. It was very clear that they were not happy
with the unjust appending around them in the company. Pay was critical or the company refused
to pay the wages to the employees etc. were the basic challenges faced by the workers.
QUESTION 4
The importance of clarity in language used while forming an agreement cannot be
extravagant. Even a single word which is not clear or is found ambiguous could lead to
argumentative litigations. So it is advised to all the business organizations that while negotiating
or forming agreements the representatives are required to take extra special care to avoid the
unclarified in the language so used (Gadiraju, Yang, & Bozzon, 2017).
Clarity reflects clarity of thoughts. So the things must be in very simple language which
can be understood even by a common person it must be framed in such a way that the reader
feels that all hos needs are being fulfilled. It must be kept as short and precise as possible. For
this it requires proper planning regarding the overall purpose for forming or entering into the
agreement, must have clear idea about the needs and desires of the reader. Convincing words
must be used i.e. the words which can very clearly reflect the intention of the maker. Very
ordinary sense of the English words must be used so that the common people having basic
knowledge can also understand it. Negative structures must be avoided at large. Sentences used

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while framing these agreements must be as short and meaningful as possible, proper pronouns
must be used wherever needed or possible. Paragraphs must also be not much lengthy, they must
always start up with the main ideas and then continue with the subordinate matters. Clarity in
language is the most important instance used while making agreements without which clear
intention of the maker cannot be conveyed to the reader (Gonsalves-Sabola, 2018).
Edscha which is considered as the strategic partner for developing the automobile
industry internationally and tries brings all the suppliers under the same umbrella (Remscheid,
Edscha again recognized as “Top Employer”, 2018). This is such a policy which is required by
mostly all the unions in short it is the desire of the union so that they may have earn an enormous
amount of benefit and their rights and production may be protected from being exploited.
QUESTION 5
As per the video of interview which was aired on National Public Radio in United States
of America in year 1998. The interview was regarding the lengthy strike of the autoworkers. In
the video, two experienced negotiators- Gerald Meyers and Douglas Fraser were interviewed
who explained the complexities of bargaining and ways to find solution to these problems.
Herein, it is observed that the union will plays a crucial role in influencing the decisions.
Edscha Strategy is wanted by the union worker at large but they are not getting it
properly as per the requirements. This theory provides enormous rights to the workers and also
safeguards their productions.
Unions are organizations, which are democratic in nature and works as per the overall
viewpoint of the union members. The union gives voice to the words of union members. The
ideas of union and the employers are profoundly different which makes the situation more

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difficult to be handled. It is said that that the employers and union can never shake hands on an
opinion. The union keeps the ideas and demands of the employees before the employers. If union
were involved in such an issue, which took place in 1998, the union would have stood in favor of
the workers and should have suggested measures to the employers of dealing with the issues
faced by the workers. The must have raised voice for ensuring good mental and physical health
of the workers. Along with this the unions’ focuses on reducing the discrimination within the
organization and the employers must also ensure workplace safety of the workers. The unions
focus on providing the employees minimum measures of their requirements. The union wanted
to provide the basic amenities related to the health and safety to the workers in order to ensure
that the lives of the workers are protected but the increasing and unacceptable demands and
conditions of the workers decorated the conditions. Which prevented the employers to fulfil their
desired cumulative needs.
QUESTION 6
The case study highlights the relationship between union staff members and the people
who are suffering with problems. According to the case study, the relations are conflicting and
contrasting in between both the groups. As the union staff negotiators represents the employers it
is obvious that the will be stick to ideas, policies, concepts and demands of the employers or the
firm for which the employees are working. The contradictory opinions in between the union staff
negotiators and the affected workers always create a tension (Rahim, 2017).
These tensions are in relation to the uncommon viewpoints like wages, working hours
and the conditions provided at workplace. The union staff negotiators will always focus on

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gearing the employees to excel the production without critically thinking of the needs and
demands of the employees (Bratton & Gold, 2017).
Similarly in the case study also there was signs of tensions between the union and the
workers. The conditions were becoming outrageous which also compelled the government to get
involved into the situation. The growing speed of workers leaving the company was leading a
more difficult phase for the company. The company due to its situation was unable to pay off the
wages or help the workers in fulfilling their demands. All the above situations were creating
huge tensions between the union and workers.
QUESTION 7
Role played by government in the process and outcomes of an strike can be that the
government ensures that after making negotiations with the workers, the decision made should
be biased i.e. it should not be only reflecting the interests of neither the workers nor the
employers. The union and the employers should equally follow labor laws and other work ethics
related to the specific department. The government ensures that all the negotiations will take
place with peace and generosity. The clashes should not take the turn into major violence and
fights. Therefore, the government influences both the process of decision making and the
outcomes generated after decisions.
The government has authority to take strict actions if the employers or the employees do
not behave well. The policy and actions of the Government can be influenced by the social,
political and the economic environment, while framing the legal institutions and frameworks for
bargaining. The state can also help in initiating a compromise union and the employers by

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acknowledging the rights of workers to join the union and bargain collectively and by holding up
the employers for bargaining.
Proper and adequate income and wages, income securities, healthcare benefits, proper
bargaining facilities must be provided to the unions at large by the government. So as per the
following case study it had become very clear that the government was trying to influence the
decisions of both the workers and employers. They made efforts to keep the situation under
control and peaceful but due to rising tensions were not able to attain it.
QUESTION 8
The economic environment tend to set up a limit for the employees within which they can
get a return for the economic improvements and its compensation and benefits and further it also
determines the time when employers can attain those terms which allows them to reduce the cost
of labor and increase the profits. In collective bargaining the economic constraints are observed
very frequently where both the parties are brings forward these issues very explicitly. For
example supporting the needs of the larger wages for maintaining up with the increased cost of
living.
Environmental issues are very less obvious in this case. But for attaining the success on
the table of bargaining the social environment, attitudes towards the society, beliefs and values of
both the employees and employers interacting in the marketplace and dealing with its customers
and clients are its basic goals. Fairness values a lot in the society and the best example of this
situation is that the people will get or show the signs of non-sympathy towards those employers
whose main concern appears to achieve efficiencies even by displaying unethical or difficult
stances on the table of bargaining.

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The political environment is made up of those regulatory frameworks, laws and policies
of the government which throws impact on the working parties. Success at the bargaining table
can be affected by the prevailing political ideologies and their own generated policies. For
example the amount to which the workers can demand the participating right in making up of a
decision at a workplace has got a big hand in the reflecting the democratic condition in their
community or the nation. Thus it can be said that in maintaining the relationships with the
labours the social, political and economic decisions made in the occupational areas by the parties
at the table of bargaining can attain either success or failure.
QUESTION 9
Union has taken a lots of steps for the benefit of the workers like
1 the organizing committee are built for them where all the diversities relating to
departmental, shifting and bargaining matters etc. can be established. Where the workers can be
acknowledged about their rights and obligations.
2 Signing up of the majority on the union card which provides a chance to the workers to
stand in the elections and fight for their own rights. It gives a platform to the workers where they
can raise their voices against the wrong done to them.
3 Negotiating of contracts or agreement which contains all the basic requirement of the
workers starting from their wages up to the ways in which the disputes held between the worker
and employer can be negotiated will be properly made for supporting the rights of the workers
and creates pressure on the employers to fulfil them or else held them up for giving
compensations.

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Well these provisions are more than enough to protect any worker from being exploited
by the employer. Every single day the union is coming up with new ideas for implementing and
enhancing the circumstances of the worker and making it better every day.
In the given case study two sides of getting involved in the deals are reflected. Where
Fraser says that all parties must be satisfied for having got a deal, whereas Meyers emphasize
upon unhappiness for giving so much for getting a deal. Both of them reflects or agrees on a fact
that resolution cannot be found that easily or simply as it involves the pain of both give and take
into it. The workers must prior to accept the deal must understand all its consequences and then
upon being satisfied must have taken up with it.

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References
Allen, J., Chapman, J., Echenique, F., & Shum, M. (2016). Efficiency and bargaining power in the
interbank loan market. International Economic Review, 57(2), 691-716.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
canadaone. (2010, 05 31). Business Contracts 101: What Canadian Businesses Need to Know. Retrieved
from Drafting a business contract can seem like a daunting task. At best, contracts are time-
consuming and at worst, they're packed with tedious legalese.:
https://www.canadaone.com/ezine/june2010/business_contracts.html
Craypo, C., & Nissen, B. (2019). Grand designs: The impact of corporate strategies on workers, unions,
and communities. Cornell University Press.
Gadiraju, U., Yang, J., & Bozzon, A. (2017). Clarity is a worthwhile quality: On the role of task clarity in
microtask crowdsourcing. In Proceedings of the 28th ACM Conference on Hypertext and Social
Media, 5-14.
Gonsalves-Sabola, M. M. (2018, 09 1). THE IMPORTANCE OF CLARITY IN LANGUAGE FOR COMMERCIAL
CONTRACTS. Retrieved from Blog Post: https://www.gschambers.com/clarity-language-
commercial-contracts
Hardy, C. (2017). Strategies for retrenchment and turnaround: The politics of survival (Vol. 18). Walter de
Gruyter GmbH & Co KG.
Rahim, M. A. (2017). Managing conflict in organizations. London: Routledge.
Remscheid. (2015, 02 10). Edscha again certified as Top Automotive Employer. Retrieved from Award for
company culture: https://edscha.com/en/news-press/current-topics/edscha-again-certified-as-
top-automotive-employer/
Remscheid. (2018, 02 1). Edscha again recognized as “Top Employer”. Retrieved from Award for human
resources management and strategy:
https://edscha.com/en/news-press/current-topics/edscha-again-recognized-as-top-employer/
Rose, J. B. (2016). Constraints on public sector bargaining in Canada. Journal of Industrial Relations,
58(1), 93-110.
Stam, L. (2019, August 21). Standard versus Snowflake Workplace Legal Issues. Retrieved from
Employment & Human Right Law in Canada:
https://www.canadaemploymenthumanrightslaw.com/

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