1 Employee and Labour Relations at Winkeys Jalene Goodwin 816019543 Sadé Vilain 808015408 Introduction pg. 1 Winkeys, a baked goods and confectionery company dismissed three employees inclusive of a long-term employee, Tommy Ali without due process. Winkeys did not follow a Fair Disciplinary Process, as a result, they incurred three years of litigation fees, expenses from rehiring Tommy Ali, as well as from another tenured employee, Umesh Khan’s early retirement. They also lost three members of a workshop team that had to be replaced and therefore incurred recruitment as well as training fees. Without the use of Collective Bargaining, educated managers on Industrial Relation Processes, and a visible and active HR in preventative measures, Winkeys has demonstrated a lack of commitment to its employees and a disregard of the principles of Natural Justice. Case Background Winkeys consists of a workforce comprised of 400 employees, 300 production workers and 100 administrative employees, the breakdown between unionized and non-unionized employees is a 60:40 ratio with the ratio of unionized employees mostly encompassing the production staff. Currently they are undergoing a massive upgrade to their worksite. Maintenance Supervisor Tommy Ali, an employee with tenure of 23years was given the task to spearhead a project to clear an area to allow building works to be completed. The area, an old workshop in which the Maintenance team worked and had already been marked for destruction for a new upgraded Workshop to be erected was filled with de-commissioned pipes, wires, light fixtures, Air condition units and parts etc. Tommy was told by his Operations manager, Frank Baksh, that the disposals were prolonging the contractors from completing their job and therefore was increasing costs by the day. He was informed that all the items had already been written off the books and it was his primary task to discard/dispose of everything any which way he chose. Tommy immediately started his task to dispose of the objects disseminating them to co-ops warehouse, other warehouses of the same business (onsite and off) and some items he gave to workers to take offsite via a gate pass. One item, an old blower from inside one of the A/C units, Tommy wanted for his personal use. His pg. 2 nephew was close by and he arranged with him to pick up when the first working shift closed off at 2PM. Tommy enlisted the help of one his technicians Jason Lewis to take it with him out the gate and hand it to his nephew as his shift was over. Tommy provided Jason with a gate pass signed by Tommy and took the blower out the compound and to the nephew as requested. Eight months later the construction jobs were completed at the factory. It was brought to the attention of Frank, the Operations Manager by an anonymous source that 4 relatively new light fixtures went missing from the workshop during a night shift. Tommy being the team’s supervisor was asked to conduct the investigations to determine exactly if the items were misplaced or stolen. After interviews and checks from surveillance cameras Tommy deduced that one of his technicians, Kevin Joseph, had removed the lights from the compound unauthorized as indicated by the surveillance tapes. Tommy reported his findings to Frank who informed him he would take over the investigations. Frank asked the three technicians enlisted to Tommy’s team, Kevin Joseph, Jason Garica and Umesh Khan, to provide statements indicating their knowledge, or lack thereof of the missing items. Umesh provided a whistleblower statement informing Frank that he witnessed Kevin’s actions. As a result, Kevin, along with their Supervisor Tommy were suspended with pay for 3 weeks while further investigations were conducted. Interviews were then conducted with the remaining members of the team by the Operations Manager. During the interviews, Umesh, who was also a tenured employee, brought up that he was aware of an incident, 8months ago in which Jason assisted Tommy to remove an A/C blower from the premises for Tommy’s personal use. This new information implicated Tommy as a new complaint was brought to light changing his time away from work to one of removal from the initial investigation to suspicion of an unlawful act himself. The investigation lasted for three weeks. After which the three men (Umesh, Jason and Tommy) were called in and interviewed by an auditor and the Operations Manager. Post their meeting, Frank met with each employee after to provide sentencing for their indiscretions. Technicians Kevin and Umesh were terminated on the spot. Umesh though, received his full benefits as a long-term employee approaching retirement. Tommy was given an ultimatum to resign. He inquired, “So what about my pension, why am I being asked to resign?” The response provided by Frank was “The Company has lost confidence in your ability to lead and in your pg. 3 trustworthiness, you have no choice to reign. Here is your paper to fill out your resignation now.” Tommy a non-union member recently relieved of his position decides to join the Amalgamated Workers Union in order to have representation on his behalf in order to seek recourse. As a “non-worker, a supervisor” he was not previously covered by union labour laws, but as per Trinidad and Tobago Union Laws he joined and paid fees for 6 months straight and was now considered a part of the union. Therefore, he could be fully represented by the union with Industrial Relations issue of termination without due process. The Union on Tommy’s behalf filed the case as a Grievance which Winkeys response was that there was no issue as they acted within their rights as Employers. The Union then filled a Conciliation with the Ministry of Labour. A Conciliation is defined as a preventative measure during which a mediator is provided to mediate an issue so that it does not go before the Industrial Courts. Winkeys was asked to settle this matter, but they responded the same, indicating there was no need. The Union escalated this matter taking Tommy’s case to Industrial Court which scheduled the court date for one year later after many exercises during which statements were given and documents went back and forth between the Union and Winkeys. The results of the hearing filed in favour of Tommy as Frank, the Operations Manager was caught failing to follow the proper process and doing due diligence to ensure that Tommy, the employee’s rights of a Fair Disciplinary Process was followed. Winkeys was mandated to reinstate Tommy to his previous position, pay back pay and reinstate all benefits owed to him as well as make an additional payment for damages owed for the duress of the incident. Analysis Issues brought forth by the case The lure of a Union for an employee is one of perceived benefits. To a non-unionized employee, a Union can provide opportunities for better wages, benefits, job security and most importantly a collective voice that can speak on their behalf with issues that affect their Natural Rights. The Principles of Natural Justice are defined as the right to be heard, the right of a fair trial and the right to face one’s accusers. Tommy, in this instance, was unaware, or unable to exercise these pg. 4 Rights during the moments described in the case. With the backing of the Union he was able to tackle the issues of not being heard as he was fired without a chance to provide a rebuttal to the charges. A Union is meant to negotiate terms and conditions of employment, including compensation, harassment, and discrimination. They allow workers to speak with a unified voice leveraging their power against management while attempting to equalize the balance of power within the organization. The challenges this poses to HR though, presents in the power struggles between unionized employees and the company as well as the miscommunication that can occur between said parties. The HR representative must balance between securing the rights of the employees and those of the organization which can be a difficult feat. Without this attempt to be an impartial representative, HR can aid in the increase of fees to a company, loss of reputation with customers from bad press and demotivation from employees who feel as though they have been violated by the company. The lack of a fair disciplinary process negatively impacted the company negatively with loss of staff as well as monetary losses. Training the Operations Manager, Frank, could have prevented this occurrence as he did not follow procedure, as well, an HR presence from the beginning of the process could have benefited Winkeys in this instance as due diligence would have been observed to ensure that each team member would have received a fair and just trial. Miscommunication between management and workers presents an opportunity for how the Union and HR could be used as a bridge to communicate effectively for more win-win situations. As well this partnership could alter the default company strategy so that Winkeys would no longer have to playing defensively and incite unwarranted charges such as incompliance as a reason for termination. The standards set by the ILO are an internationally recognized framework which guides Industrial Relations proceedings aimed at maintaining fair, decent and productive working conditions, opportunities and benefits for all persons. The Trinidad and Tobago Industrial Relations Act (1972) indicates that the tool, Collective Bargaining between Employer and Employee through their respective organizations could be an effective, efficient and peaceful way to settle grievances. Collective Bargaining is defined a pg. 5 group process of negotiating work-related issues to come to an amicable agreement. Using this tool during the initial stages of the complaints against the aforementioned Winkeys employees could have prevented further duress to both the company and employees as a civil solution could have been actualized. The main question brought forth by this case is, what role doe the Human Resource Department play in protecting both the organization and the employees from costs and disruption of work caused by misguided actions of a management team? The HR Role in Industrial Relations to provide information to employees and managers on Employment Laws, Contract Issues and Rules as well as Union Options. The HR Department works as a liaison between the Employer and the Employees discovering ways to decrease the gaps between them working as well as a mediator contributing towards Collective Bargaining. With an increased presence by HR Winkeys could have prevented a lot of the issues faced within this case. Themes The main themes identified were: Lack of Effective Communication and Ignorance to Labour Laws and Employee Rights. The problems of the case outlined can be referenced to the ILO Standards Employment Security; Termination of Employment Convention, 1982 (No. 158) - [ratifications] which states that “If an individual worker is dismissed, he or she shall have the right to defend him or herself against any allegations.” According to these standards for termination outlined by the ILO, it supports the workers right to be dismissed once the principles of natural justice have occurred. The dismissal must have been for valid reasons; it must have been fair; it must have been the last resort (and proven so); it must not have an unbalanced negative affect on the worker with respect to their lifestyle and being able to provide for themselves and their families. pg. 6 Possible Alternatives for the case The HR department could possibly continue to let each manager determine the faith of their employees, but they would need to educate the manager on Union norms so that they must engage the union first before any final decision is made. A less risky solution would be to present more visible signage showing employees their employment rights. This could also aid in educating managers about the rights of their subordinates when making disciplinary decisions. An even more involved HR department could facilitate online platforms for both management and employees to communicate about any grievances or concerns and therefore be involved in any work-related matter from the inception. HR could further set up a safe space outside of Winkeys compound to mediate these grievances to allow both employees and managers to feel as though they had a safe and neutral space to come to an amicable agreement. Based on the incidents in the case it seems as though a training focusing on Emotional Intelligence, Industrial Relation Laws and Practices as well as Union Practices need to occur for anyone in a management position. With the nature of Winkeys business and its mix of union to non-union workers this training may prove to be cost saving as well as beneficial for the interactions between employees and management. Another solution to prevent an incident like this from happening would be to implement and Train all staff on an Employment Practices Compliance System and update or create the relevant policies and procedures. This would allow a predetermined process to exist amongst the company providing a step by step guideline on the appropriate way to handle grievances and accusations against employees. Why alternatives were rejected Constraints/reasons HR Policies exist but are not implemented. This would require an organizational change. The right type and model will have to be selected and implemented along with experienced change management agents and a robust plan which if done incorrectly can disrupt the organization's operations. pg. 7 HR may not be able to action all items due to their heavy workload and if not executed properly there can be more harm than good. This would require on-boarding of extra staff in the department which will incur unjustifiable costs. The established Culture of bypassing HR and addressing management directly is dominant at Winkeys. This would call for a cultural change which is also a long-term solution long-term plan and changes needed to be effective more short-term Employees lack trust in HR. HR professionals at Winkeys are seen as part of management, the enemy, (us versus them complex). Proposed Solution The proposed solution is to make HR more accessible, visible and involved with Industrial Relation issues that may arise at Winkeys. Using an Employment Practices Compliance System to enforce a policy in which HR would be at the forefront off all employee claims, as well as provide training to managers and employees on the step by step procedures. An Employment Practices Compliances System allows for effective risk management, it is not costly to implement and would bring HR into employee complaints from the beginning of the occurrence to help mitigate any elevation to Industrial Court. The Employment Practices Compliance System consists of: Inputting Compliance Policies – which adhere to all relevant Industrial Acts and practices. This information will be distributed to all employees, usually in the form of an HR Manual and shared with new employees during orientation sessions. Training Sessions will be held with both employees and managers to be educated on the requirements and rights of employees. Investigating any employee claims promptly to show reliability and the commitment of HR. Ensuring that results of the findings of claims are enforced consistently and without bias. Continuous evaluation, coaching and providing of feedback to employees including managers. pg. 8 A system like this would allow for HR to function in tandem with the company’s strategic policies as well as protect employees by adhering to the principles of Natural Justice. While controlling risks and expenses to the company. Another integral and more detailed part of the implementation will be to make HR more visible and accessible by implementing a Progressive Discipline / Dispute inhouse facility in accordance with local Union Labour Laws to be managed by HR with the involvement from the established Union within the organization. A step by step framework would be implemented as outlined below: 1. 2. 3. 4. 5. 6. 7. Policy and Procedures awareness Verbal Conversation Documented Conversation and note to file Documented Conversation and Letter of Advice Documented Conversation and Written Warning Written request for statement of position and invitation to Disciplinary Hearing Disciplinary Hearing with the defendant, their chosen representative (advised to be a union representative), a Panel that consists of a; Prosecutor; Investigator; HR coordinator; HR minute taker; Neutral party 8. Decision made: Another warning, suspension / termination Using this framework would provide Winkeys with a step by step Fair Disciplinary Process allowing all company members to know employee rights and ensure that they are not violated in terms of applying disciplinary actions. This framework allows for managers and employees to understand a difficult to interpret Good Practice; acting with just cause, using consistent procedures, and following the principles of Natural Justice (Knight, Ukpere: 2014) Lastly to complete the HR initiative to increase visibility and accessibility signage showcasing employee rights would be placed around the workplace, to educate employees as well as manager on current labour laws, as well as increase the regularity of the knowledge of these laws. Signage would include the Maternity Protection Act, the Minimum Wage Act, Workman’s Compensation Act, OSH Act as well as the Industrial Relations Act and placed in areas where employees, and managers have the most traffic. The goal would be to improve awareness and bring about communication of these rights to both employees and managers. As well, it would create a transparency within the company and promote one in which employees' rights are acknowledged. pg. 9 Citations: Human Resources Governance and Compliance. Borrgraffe, Julia. 2015 Mediterranean Journal of Natural Sciences: The Effectiveness and Consistency of Disciplinary Actions and Procedures within a South African Organization: Knight,,Ukpere: 2014. https://www.managementstudyguide.com/labor-management-relations.htm https://www.mbaskool.com/business-concepts/human-resources-hr-terms/7137-collectivebargaining.html http://www.workersunion.org.tt/workers-rights/employment-law https://www.allbusiness.com/developing-an-effective-hr-compliance-program-979-1.html https://www.ilo.org/ifpdial/information-resources/national-labour-lawprofiles/WCMS_158855/lang--en/index.htm https://industrialcourt.org.tt/ Case Amalgamated Worker's Union – Party No.1 vs Party No. 2 (March 01st 2018) https://www.ilo.org/global/standards/introduction-to-international-labour-standards/lang-en/index.htm pg. 10 pg. 11