Air Canada union angry at arbitrator’s decision

Posted by & filed under Chapter 1 - Introduction, Chapter 10 - Third-Party Intervention, Chapter 13 - Future Issues, Chapter 8 - The Collective Bargaining Process, Chapter 9 - Strikes and Lockouts.

Description: Air Canada flight attendants are unhappy after an arbitrator imposed a contract they had previously rejected.

Source: The Toronto Star

Date: 11/07/2011

Link: http://www.thestar.com/business/article/1082475–arbitrator-imposes-deal-that-air-canada-s-flight-attendants-rejected?bn=1

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Questions for discussion:

  • Summarize the steps that took place after the flight attendants rejected the most recent tentative agreement.
  • Why did the arbitrator impose the terms of the second contract on the parties?
  • What did the two sides ask for during the arbitration?
  • The arbitrator found that government intervention did not harm the union. Do you agree?
  • The arbitrator also found that the imposed settlement is similar to what would have been decided if the collective bargaining process had been allowed to run its course. What do you think?

N.S. opposition says first contract arbitration unfair

Posted by & filed under Chapter 1 - Introduction, Chapter 10 - Third-Party Intervention, Chapter 13 - Future Issues, Chapter 8 - The Collective Bargaining Process.

Description: A proposal to use arbitration in first contract negotiations has the Nova Scotia opposition warning of job losses.

Source: Canadian Business

Date: 11/02/2011

Link: http://www.canadianbusiness.com/article/55287–nova-scotia-premier-plays-down-labour-law-threat-to-jobs-and-investment

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Questions for discussion:

  • What is first contract arbitration?
  • Why do unions seem to favour it?
  • Why do employers seem to oppose it?
  • Which arguments do you find most persuasive?
  • How does this compare to the arbitrations ordered by the federal government recently?

Best Country to do Business—Canada

Posted by & filed under Entrepreneurship, Environment, Global Management.

While U.S. was hit by a recession and Europe was under severe debt, Canada’s economy grew by 3.1% last year, 9th largest in the world. The ranking was based on 11 factors such as property rights, innovation, technology, corruption and so on. It compared 134 countries. Canada is among the top 5 in investor protection and lack of red tape which shows that it’s easy to start a business in Canada and it has also improved in its tax standing from last year. While U.S. is ranked 6th in terms of innovation and patents/ capita, Japan has the highest corporate tax rate.

Questions:

  1. What factors would you consider are mostly responsible for Canada’s growing economy?
  2. How has introduction of HST in Ontario and BC affected Canada’s tax standing?
  3. Do you think corruption is one of the causes for some countries to suffer despite high GDP?

Source: Associated Press, “Canada ranked best company for business” Financial Post  (Retrievable online at  http://business.financialpost.com/2011/10/04/canada-ranked-best-country-for-business/)

From India with Money

Posted by & filed under Change, Communication, Entrepreneurship, Global Management, Individual Behavior, Management, Strategy.

Average household income of Canadian immigrants from India is $95,000 which is 14% more than average income of Canadians. The expenditure for Indians who have immigrated to Canada since 2006 have increased by 46%, compared to an average of 19% increase in the expenditure of Canadians. An average of 56% immigrants from India own new homes built since 2001 compared to an average of 16% for Canadians. Despite a little struggle in their initial years, they do well in the long run because most have higher education. The average expenditure of an average Indian immigrant on travel is 85% more than the average expenditure in this category by a Canadian. Understanding the spending pattern of Indian immigrants will help companies better market their products.

Questions:

  1. Why do you think India immigrants have a higher household income on average?
  2. Which cultural aspects do you feel are crucial to market products to Indian immigrants?

 

SOURCE: Associated press: PROFIT staff, “From India with money” Canadian Business Network (Retrievable online at http://www.profitguide.com/article/50099–from-india-with-money)

Canadian Business owners put their companies at risk by ignoring need for succession plan

Posted by & filed under Entrepreneurship, Planning.

As mentioned by the head of Business Transition Planning of CIBC, Sean Foran, small and medium businesses contributes $600 billion to Canadian GDP. With an average age of 60 years for Canadian small and medium business owners, and with almost two third Canadians employed by these owners, it is important for business owners to have a succession plan. While it is an emotional decision, Mr Foran provides us with some aspects to be considered by business owners. Aspects like selection of a successor for one’s business, to focus on successor’s training, and to focus on a regular competitive analysis of one’s business and a focus on a tier-two management.

Questions:

  1. Generally, who would the business owners consider as possible successors?
  2. What are the other issues that affect the small and medium businesses in Canada?
  3. As a business owner would you consider leaving your business when you are on the top of your career or wait till you need help?
  4. Would you consider a tier-two management system if you were an owner of a small or medium business?

Source: Associated Press,“Canadian Business owners put their companies at risk by ignoring need for succession plan” Canada Newswire (Retrievable online at http://www.newswire.ca/en/story/861411/canadian-business-owners-put-their-companies-at-risk-by-ignoring-need-for-succession-plan)

As economy worsens, unions come under attack

Posted by & filed under Chapter 1 - Introduction, Chapter 13 - Future Issues, Chapter 2 - Theories of Industrial Relations, Chapter 3 - HIstory of the Canadian Union Movement.

Description: As unemployment rises and the economy stalls, the union movement is under attack from governments, businesses and even workers.

Source: The Montreal Gazette

Date: 10/20/2011

Link: http://www.montrealgazette.com/business/Unions+easy+target+weak+economy/5575308/story.html

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Questions for discussion:

  • This article says: “… if the government prevents unions from walking out to protest members’ wages, the entire economy suffers. The butcher and the baker and the automaker all shed customers as workers’ wages decline.” Do you agree?
  • Why or why not?
  • How has the union movement fared in past times of economic difficulty?
  • What is different today?
  • This article asks: “…if the jobs created don’t pay very well and the only institution we have to fight for living wages is handcuffed, then where does that leave us as a society struggling to recover from a recession and massive wage inequities?” What do you think?

How to build a cross-Canada sales force

Posted by & filed under Entrepreneurship, Management, Planning.

Enjo Canada Cleaning Inc. is a Toronto based firm that offers chemical free cleaning products and sells its products through home parties like Tupperware and Mar Kay Inc. Its present sales force of 350 consultants are targeting to a sale of $4 million this year with 85% of its sales concentrated in Ontario. In its desire to expand, Ms. Ronan, the cofounder and CEO, is looking out for some expert advice on various ideas she could use to expand her business in Canada. Based on the advice from various business experts, the Enjo Canada needs to take three main steps: its needs to hire regional managers, to look into franchise options and to target its customers.

Questions:

  1. What would be your suggestion to Enjo Canada’s expansion plan?
  2. Out of the three options, which one should Ms Ronan follow in accordance with the budget allocated?
  3. Do you think the budget allocated is sufficient for the cause?
  4. Suggest some low cost ways to increase sales force for small and medium business firms.

SOURCE: Bryan Borzykowski, “How to build a cross-Canada sales force” The Globe and Mail (Retrievable online at  http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/sales/how-to-build-a-cross-canada-sales-force/article2173071/)

Court finds B.C. ‘gag law’ unconstitutional

Posted by & filed under Chapter 1 - Introduction, Chapter 13 - Future Issues, Chapter 3 - HIstory of the Canadian Union Movement.

Description: The B.C. Appeal Court has agreed with a number of unions that a B.C. government attempt to restrict third-party election advertising is unconstitutional.

Source: The Vancouver Sun

Date: 10/20/2011

Link: http://www.vancouversun.com/business/Union+hails+ruling/5578606/story.html

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Questions for discussion:

  • What did this law seek to do?
  • Why did the unions seek to overturn it?
  • What does the Charter of Rights and Freedoms say about limits on free speech?
  • Do you agree with the court’s decision?
  • What do you think will be the effects of this decision if it stands?

Air Canada claims bad faith bargaining

Posted by & filed under Chapter 1 - Introduction, Chapter 10 - Third-Party Intervention, Chapter 13 - Future Issues, Chapter 8 - The Collective Bargaining Process, Chapter 9 - Strikes and Lockouts.

Description: Air Canada has complained to the Canadian Industrial Relations Board that the Canadian Union of Public Employees bargained in bad faith.

Source: The Globe and Mail

Date: 10/14/2011

Link: http://www.theglobeandmail.com/globe-investor/air-canada-bypasses-contract-talks-launches-seat-sale/article2201969/

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Questions for discussion:

  • What did the government do to block a strike by Air Canada flight attendants?
  • What does your textbook say about bargaining in bad faith?
  • What arguments do you think the company would make to support a claim of bargaining in bad faith?
  • What arguments would the union make against such a claim by the company?
  • Given what you know about this dispute, do the union’s actions amount to bargaining in bad faith?
  • What is the role of the Canadian Industrial Relations Board?

Steelworkers, U.S. Steel settle in Hamilton

Posted by & filed under Chapter 13 - Future Issues, Chapter 8 - The Collective Bargaining Process, Chapter 9 - Strikes and Lockouts.

Description: Workers at the U.S. Steel plant in Hamilton have ratified a tentative agreement after an 11-month lockout.

Source: The Hamilton Spectator

Date: 10/16/2011

Link: http://www.thespec.com/news/business/article/610128–hamilton-s-1005-votes-yes-but-nobody-liked-it

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Questions for discussion:

  • Summarize the issues in this dispute.
  • How does this contract compare to earlier company offers?
  • Why do you think the union decided to accept the contract now?
  • What effect do you think an 11-month lockout would have on the company?
  • On union members?