HRMT 151 Labour Relations: Analyzing Employer-Union Bargaining Power

This assignment presents a case study analysis of bargaining power dynamics in labour relations, specifically focusing on three different companies: Grocery-Right, Power Co., and Chemical Corp. The analysis assesses which party (employer or union) possesses greater bargaining power in each scenario, using the concepts of external and internal inputs to shape the bargaining relationship. Grocery-Right faces a strong union in Alberta, requiring careful negotiation to enter the Edmonton market. Power Co. has significant bargaining power but needs to navigate British Columbia's labour laws. Chemical Corp. experiences wage parity issues and strikes, leading to a situation where both the company and the union hold considerable bargaining power. The study highlights the importance of legal compliance and mutually beneficial solutions for successful labour relations. Desklib offers more resources for students studying similar topics.

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Running head: EMPLOYEE AND LABOUR RELATION
Employee and Labor Relation
Authors Name
Institutional Affiliation
Instructor’s Name
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Author’s Note

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Employee and Labor Relation
Company A
Overview
The first case scenario is regarding a large grocery product providing company named
Grocery-Right situated in Alberta region. It was found that the company has a sound relation
with the employee union wherein the members have decided to fixed prices for each grocery
products within the market. In respect to the case, the union of Grocery-Right has decided
different prices for various regions. However, a slight increase in price can be
disadvantageous for the company because the consumers tend to discriminate the products
based on the price, brand and quality. Moreover, due to increase in wages and cost of the
product, the economy can initiate loss for the market as well as the companies dealing with
the grocery items. Thus, the union’s decision of price increments can introduce loss in sales
for the Grocery-Right. Furthermore, the company negotiated with the union before they
started business in Alberta region, wherein they faced financial destabilization. In this regard,
the company wants to conduct business in Edmonton region. Thus, keeping into account, the
old incident of the union, it needs to negotiate and bargain a reasonable price for their
products so that they can gain profitability within the Edmonton region.
Discussion
Deriving understanding from this case, it can be said that, the bargaining power of
union is higher than Grocery-Right. In order to expand the business, Grocery-Right has to
collaborate with the union because a non-collaborative approach can significantly harm their
existence in the Edmonton region. According to “The Ultimatest Grocery List!” (2013),
grocery market is one of the largest markets in the world. At the same time, demand of the
grocery products such as bread, vegetable oil, rice, milk products among others are

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significantly high in the market ( “The Ultimatest Grocery List!,” 2013). An individual or a
family cannot survive a day without the grocery products and hence, increment in their prices
can lead to consumer dissatisfaction and non-affordability. Moreover, in the Edmonton
region there are several competitors which have created immense competition for the
company thereby posing considerable risk in the market. Similarly, according to Palm (2017),
the bargaining power of the trade union was higher than that of the companies. Moreover, it
was seen that the companies were unable to conduct a business action without prior
permission of the union. Furthermore, it was found by Millward, Forth & Bryson (2001), that
the companies may face financial destabilization due to the fixed prices of the union. Hence,
even in the case of Grocery-Right, it needs to conduct a profitable negotiation process with
the union so that both the parties can receive benefits from the grocery sales within the
Edmonton region. In here, market competition and organizational product cost can be
considered as the external input. Simultaneously, financial instability can be measured as an
internal input of the company. These have to be shaped and examined rationally during the
period of negotiation so that both the parties can be benefitted.
Summary
Deriving an overall understanding from the case, it can be said that Grocery-Right
has less bargaining power in front of the employees’ union. At the same time, the company
must not pass over the union’s rules and regulations while operating their business in the
Edmonton region. Breaking rules of union can initiate a conflict between the company and
union. Similar opinion is provided by Shrestha (2012), that the chance of union’s winning is
high as compared to the organizations. At the same time, beneficial negation also helps the
company to avoid financial destabilization (Millward, Forth & Bryson, 2001). Hence, in the
given case, the negotiator of the company must introduce a reasonable and beneficial offer
for the members of the union so that it can sell its products in a profitable manner.

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Company B
Overview
The second case is regarding Power Co., which is a manufacturing company of
durable industrial products established in Canada. The company has operated twelve plants
all over the country. At the same time, each of the plants is reasonably unionized. It is found
that, the higher authorities of the company are not considering the market’s wage rate during
the negotiation for a plant. However, the company has enough power to compensate the
losses from the activities of the union. According to Shaw (2003), the union activities involve
‘jurisdictional strike’, ‘sympathy strike’ and ‘unfair labor practice strike’ among others.
Simultaneously, the company has enough financial power to recover a loss in a sufficient
way. Now, the company wants to establish two more plants in British Columbia and hence, it
is liable to negotiate with the union of that region so that it can operate their business
profitably. In this context “Unions and Collective Bargaining” (2016) stated that, different
market within a state or country has incorporated with dissimilar wage and product price rate.
Cost of marketing, transpiration and cost of specific product materials can be considered as
the main reason behind this price dissimilarity (“Unions and collective bargaining,” 2016).
Hence, it can be claimed that the price and wages of British Columbian market has to reflect
differently than that of Canada (Shaw, 2003). Hence, in the given case, a proper negotiation
process has to be conduct so that the company can operate their business properly in the
British Columbian market.
Discussion
According to the above discussion, Power Co. has sound proficiency to conduct a
negation in their favor. However, they are not having the intention and rights to break the
rules of union but they can conduct a negotiation process. At the same time, the company

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already conducted negotiations with twelve different unions in Canada. Based on this
information, the company has high bargaining power than the union of British Columbia.
However, as per (May, 2003), any kind of wrong decision regarding the negotiation process
can initiate conflict. Complying with this requirement, the company can be unable to expand
business in British Columbia. Hence, negotiation must be developed in a way that both
company and union can receive benefits from the market. Moreover, a legal negotiation
process can initiate an agreement between the company and the union, which will lead the
company towards the market success through their new plants in British Columbia. Based
upon the above understanding, organizational requirement regarding employees’ wages can
be considered as the internal input and legal negotiation process can be measured as external
input. Taking these inputs into high consideration will help both parties to mitigate the
constraints of labor wages within this region. Moreover, following this process of negotiation
proper decisions can be undertaken regarding wages, thus, benefiting both the parties.
Summary
Based on the above information it has been apparent that, Power Co. has high
bargaining power than the union in British Columbia. However, the company has good
record union relationship in respect to the competitors. Moreover, the union of British
Columbia has certain lawful policies of business within the market such as proper rights,
obligation, economically feasible business, collective bargaining, examining conditions and
others ( “Guide to the British Columbia labour relations code,” 2003). Hence the company
must follow up these legal policies or union code during the period of negotiation. By
following, these above mentioned rules and regulations, the union will be unable to conduct
any illegal activity at the time of negotiation. At the same time, company will stick on their
preferred wages for their workers.

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Company C
Overview
Based on the third case scenario, Chemical Corp is a large chemical product providing
company and it operates a large number of plants in Canadian market. However, the company
faces low competition within the market. In this regard, the company has competitive
advantage within the market. Moreover, the company was fully unionized before the World-
War II. In the recent era, only two-thirds percent has been unionized in the company. As a
result, the company has faced serious issues regarding the wages parity. It has led the
company to shift their plants into Mexico. As per the company profitability, they are able to
compensate loss upon the policies of union but constant strikes have initiated a – significant
issue for the company.
Discussion
Based on the issue, Chemical Corp is able to make a negotiation regarding the
incidents such as constant strikes. Fundamentally, strikes have affected organizational
productivity and profitability and it has led the companies towards market loss (Drahokoupil,
Myant & Domonkos, 2014). Hence, the company must explain their strike issues to the
members of the union and get into a solution. In this regard, the company has significant
bargaining power upon the union because if the strikes will close then only the company will
be able maintain the policies of the union. Therefore, the company has efficient power of
bargaining in respect of the union of Edmonton region. On the other hand, the union also has
power to increase wage parity towards the company, and it cannot refuse the offer because it
will initiate more strikes (Devereux, & Hart, 2008). Hence, it can be considered as a more
disadvantageous situation for the company in its operating Canadian market. For this kind of
situation it can be claimed that the bargaining power of both party is significant. According to

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the, Katz, Kochan, & Colvin, (2015), refusal of offer by any party can initiate loss, which will
affect both parties within the market). Hence, both parties must come into a beneficial
solution, which leads both parties towards the market success. On the basis of above
information, union policies and strikes as well as its effects on company is the external input
and the financial destabilization can be considered as the internal input, which has to be
included in negotiation process so that both the parties can be in a win-win situation.
Summary
In accordance with the case scenario it is evident that, both the company and union
have equal bargaining power upon the incident. In accordance with, Lehr, Akkerman, &
Torenvlied, (2018), any kind of wrong decisions regarding the case can lead both parties
towards the market loss). Hence, both parties must take legal help from the court of justice of
Canada, wherein each of the employee’s rights and obligations can examine properly. At the
same time, loss due to these types of strikes must be examined so that a reasonable and
beneficial solution can be incorporated in the business activities, so that both the workers and
the company can conduct the business efficiently and profitably.

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References
Bill Keaggy & Grocerylists.Org. (2013). The Ultimatest Grocery List!. Retrieved October 5,
2018, from
http://www.grocerylists.org/wp-content/uploads/2013/01/grocerylistsDOTorg_Deluxe
_v3_3.pdf
Devereux, P. J., & Hart, R. A., (2008). A good time to stay out? Strikes and the business
cycle. Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor, 1-39.
Drahokoupil, J., Myant, M., & Domonkos, S. (2014). The politics of flexibility: Employment
practices in automotive multinationals in central and Eastern Europe. European
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Employment New Zeeland. (2016). Unions and Collective Bargaining. Retrieved October 5,
2018, from https://www.employment.govt.nz/assets/Uploads/tools-and-resources/
publications/unions-and-collective-bargaining.pdf
Katz, H. C., Kochan, T. A., & Colvin, A. (2015). The role of the economic, technological,
and demographic environments. Cornell University, 79-101.
Lehr, A., Akkerman, A., & Torenvlied, R. (2018). Spillover and conflict in collective
bargaining: Evidence from a survey of Dutch union and firm negotiators. Work,
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May, S. (2003). The terms of union: An analysis of their current relevance. Royal
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Millward, N., Forth, J. & Bryson, A., (2001). Who calls the tune at work? The impact of trade
unions on jobs and pay. Joseph Rowntree Foundation, 1-41.

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Ministry of Labour and Citizen's Services. (2003). Guide to the British Columbia labour
relations code. National Library of Canada Cataloguing in Publication Data, 1-44.
Palm, J. (2017). There is power in a union Trade union organization, union membership and
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Shaw, J. (2003). Employment & labour law in British Columbia. SFU Engineering Science,
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Shrestha, B. R. (2012). The effect of trade unionism on workers a case study on pam.
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