Case Incident
Unfriendly Negotiations at Friendly Tires
The United Steelworkers of America (Canada) was certified in 2013as the bargaining
agent for service and clerical employees of Friendly Tire Stores attwo Hamilton, Ontario
locations. Since that time, the union and the employer were able tonegotiate two
collective agreements (an agreement covering November 2013–December2014 and
the current four-year contract, which expires on December 31,2018). In late 2018, USW
Local 2419 served notice to bargain with the management of FriendlyTires. Business at
the two tire outlets had been good, but management was worriedabout planned
commercial developments that would introduce one Canadian Tireoutlet and a new
Wal-Mart full-service retail store near its outlets over the nexttwo years.
Two initial meetings were held between union and managementrepresentatives in late
November and early December. While progress was made on severalmatters including
vacation scheduling, health and safety inspections, and enhanceddental plan coverage,
the parties were deadlocked on hourly pay rates, COLA adjustments,and uniform
allowances.
At the December 10 bargaining session Omar Said, human resourcesmanager at
Friendly Tires management, advised the union that the company wasnot able to make
any further concessions and any agreement had to be based upon theemployer’s most
recent proposals on the outstanding issues including hourly payrates, COLA, and
uniform allowance. The union indicated that it was not willing toagree to the employer’s
terms and doubted if there was any point to further talks. Theunion also stated that in
view of the employer’s position it would be conducting a strikevote. The employer sent
a letter to the union executive setting out the terms of its finalproposals as outlined in
the December 10 meeting. In that correspondence, Mr. Said offeredto meet with the
union to conduct further talks on the unresolved matters. The unionheld a meeting with
its members from both stores on December 18to update them onnegotiations. The
union advised employees that talks had broken off following lastweek’s meeting and
provided them with a summary of the union and employer positions onunresolved
issues. The union indicated that the employer’s final offerincluded removal of the $20
per month uniform allowance to all garage/service jobclassifications. USW Local 2419
president Marion Stackhouse also noted the employer cost of theliving proposal of 2.0
percent over the life of the next agreement was unacceptable. Shewent on to say that
any pay rate increases, according to the employer, would only beconsidered in the
second and subsequent years of a renewed agreement; and wouldlikely not exceed
more than $1 per hour in any of the 12 job classifications in thebargaining unit. The
letter concluded by telling the members that the union executivewould be seeking a

strike vote and approval from the regional business agent for apossible strike against
the company.
On December 21, the employer-provided all Friendly Tire employees amemo that set
out the employer’s current position in contract negotiations. Thememo included the
following statement:

“We want all of our staff to know what the employer has proposedto your union on the remaining
bargaining issues. This is a summary of our offer to settle thecontract, which was discussed with the
union on December 10 th . You can also obtain additionalinformation about this offer from the union.
Management is asking for deletion of the current uniform allowance,a realistic cost of living
adjustment given recent COLA trends for municipalities in this areaand limited pay classification
raises that would be “back-loaded” in the term of the newcollective agreement. Friendly Tires is
facing increased market competition from recognized competitors inthe next few years. We do value
your contributions and efforts of our customers. Friendly Tiresdoes wish to reward your efforts and
reflects this in some improvements in the proposed collectiveagreement. However, management is
being prudent in its financial forecasts to avoid any futurenegative consequences.”
The letter closed by telling employees that company managementremained willing to
re-start talks with the Local 2149 negotiating team at anytime.
After the memo was issued, Ms. Stackhouse and members of the localexecutive
committee received a steady series of questions from their members.Employees asked
why the memo had come from the employer when the union had notprovided a written
follow-up on the December 18 special union meeting. There were alsoquestions about
the wage increase and uniform policy. On December 27, the unionsent a letter to the
employer noting the following:

“ . . . . and in the opinion of the union executive the December21st memo to our members is seen
as an attempt to directly negotiate terms and conditions of workwith Friendly Tire employees and
not with the USW Local 2149 bargaining team. Based on feedbackreceived by the union local
executive from our members since receipt of Mr. Said’s memo it isour sincere belief that the
Friendly Tire’s management has engaged in an unfair labour practicethat has caused Local 2149

members to feel intimidated and threatened. We are inconsultation with our business agent and
union legal counsel concerning filing a complaint with the LabourRelations Board. . . . ..”
Upon receiving an e-mail with this attached letter from Ms.Stackhouse, Mr. Said
contacted members of the company’s management group to gather at ahastily called
meeting for the next morning to discuss this matter.
Questions
1. In your opinion, is the management team for Friendly Tires onlyengaged in
“hardball tactics” as discussed in this chapter? Use an example tosupport your
viewpoint.
2. In reviewing the excerpt from the December21 management memo tounion
members, do you interpret the content of the correspondence aslikely to
cause employees to feel intimidated or threatened? Explain why orwhy not.
Do you believe an unfair labour practice complaint by the unionwould be
upheld before the Labour Relations Board? Share your views withother
members in the class.