Business 4330 - Metrobus Strike Case

Metrobus Strike Case

Business 4330

Individual Assignment #!

Presented to Dr. L. M. Sulsky

Memorial University OF Newfoundland

Presented by

Heather Careen

Student #  201231388

January 18, 2015

Questions:

#1.  Using the industrial relations model presented in this chapter (Figure 1.1) a). Identify and name the actors in the case:

• Amalgamated Transit Union which represents Labour Employees and Associations (that include 100 workers including drivers, mechanics and administrative staff.)
• Employer/Management (St.John’s Transportation Commission)- Employers Association.    
• Government Appointed Mediator- Specialized Governmental Agencies
• Students/Seniors/Low Income Earners- End users

b) Discuss what external inputs you feel are most relevant in this case:     There are several external inputs that I feel are relevant to this case.  One relevant external input is the legal subsystem.  Collective Bargaining is used in this case between the union and management when trying to negotiate the contract.  Also included in the legal subsystem is the fact that Canada has a decentralized legal framework where the provincial government has legislation over transportation which means it can step in and legislate the workers back to work if the strike lasts too long.   Another relevant external input is the economic subsystem including the product/service market and the labour market. The St. John’s Transportation Commission provides a service to the people of the city.  The union/employees are part of a labour market that supplies the skill for that workplace.  The ecological subsystem is another external input relevant in this case.  The strike is taking place in the winter and it is difficult for those who rely on the metrobus for transportation to get rides to work/school.  People are left with few transportation options especially when it is happening during the winter.  A final external output is the sociocultural subsystem.  The employees/union believes what they are looking for and fighting for is fair and acceptable.  They believe that paying 50% for benefits is unfair to them.  There are also protests and petitions from those that need the bus service asking government to legislate an end to the strike.

c). Name and identify the conversion mechanisms and outputs presented in the case.

     The conversion mechanisms presented in this case include:

• Collective Bargaining- Between union and management
• Mediation- there is a government appointed mediator assigned to the case.
• Strike- by the union and workers to bring closure to negotiations and try to get the contract that the employees want.

The Outputs presented in this case include:

• Employer Outcomes- St. John’s Transportation Commission feels that employees paying 50% for their benefits is fair and reasonable and is consistent with other public sector employees.

• Labour Outcomes-   Wages are increased for workers by 15.5% however Union and workers feel that employees paying 50% for their benefits are unfair and unreasonable requests.  
• Worker’s Perceptions- Workers seem to be committed to their union and their union seems to be supporting the rights and opinions of the workers.
• Conflict- As a result of the vote to reject the contract offer, the union went on strike to try and get the employers to change their benefit sharing terms.

  #2.  . To what extent are Barbash’s concepts of equity and efficiency echoed in the arguments of labour and management in this case?

According to Barbash, conflict such as labor problems that arise from employment exchange relationships is natural and inherent between labour and management in society.  Barbash’s concepts of equity and efficiency are strongly echoed in the arguments of labor and management in the Metrobus Strike Case.   Barbash notes that efficiency provides a focus for economics.  The driver for efficiency is that employers seek to maximize profits and a necessary part of maximizing profits is to minimize costs for each given unit of output.  As in the case of the Metrobus Strike the employers, the St. John’s Transportation Commission, want to decrease costs by having employees pay 50% of their benefit plan.  In respect to equity Barbash notes that equity is a set of fair employment standards covering both material outcomes and personal treatment that respect human dignity and liberty meaning fair treatment of human beings in the workplace.  In this case, The Amalgamated Transit Union representing the transit workers are advocating against the workers having to pay 50% of their benefit plan.  They feel this is an unfair and unreasonable practice for the workers.  Barbash believes that the disagreements between parties end in conflict contributing to tensions and an inability to balance the situation or come to an agreement.  Barbash fees this type of situation has the potential to become dysfunctional and destructive of the parties rights, the public’s interest, and basic human rights of individuals involved.  This view is strongly echoed in this case as the conflict cannot be resolved amicably between both parties, there is no balance between equity and efficiency, as a result the workers vote to strike.   This is a no win situation for all involved as management has to answer to the public for the services they promised as it is not being provided, workers are out of work losing money and seniors and students have no form of transportation in the depth of winter.  In addition,  there is a likely chance of government legislating the workers back to work if the strike goes on too long which would undoubtedly cause further conflict between management and workers.