Thoughts from a Management Lawyer

CAW Members Ratify Chrysler Deal

CAW members have, by a vote of 87%, agreed to ratify a restructuring agreement with Chrysler that will see them, among other things, pay into their own pensions.  The United Auto Workers in the US reached a tentative deal with Chrysler on Sunday which is expected to be put to a vote on Wednesday.  These agreements are a first step in paving the way for government funding and an alliance with Fiat. 

April 28 is National Day of Mourning

In 1984 the Canadian Labour Congress established April 28 as the Day of Mourning for workers killed or injured on the job.  In 1990, Parliament passed the Workers Mourning Day Act to formally recognize April 28 as a "day of mourning" across Canada.  There is a brochure and list of community events.  The CBC also has a article called Dying for a Job.

Chrysler Reaches Deal With the CAW

Chrysler and the CAW have broken with pattern bargaining and have struck a  tentative deal "for deep worker concessions"  to help the auto maker.  The Globe reports (as do many others others) that:

The Canadian Auto Workers union has surrendered years of hard-won gains to keep the operations of Chrysler Canada Inc. from being liquidated in a likely bankruptcy protection filing by the troubled auto maker.

The groundbreaking concessions came after four days of tense, multiparty negotiations that involved the federal and Ontario governments and Italian auto maker Fiat SpA, would-be saviour of Chrysler LLC.

The CAW reports on the tentative deal on their website:

The agreement will result in over $240 million per year in annual cost savings for Chrysler's Canadian operations, as a result of a combination of benefit reductions, compensation changes, and increased productivity through operational improvements.  CAW members perform 12.5 million hours of work per year for Chrysler Canada.  The agreement therefore meets the benchmark for negotiations which was established by the federal and Ontario governments as a condition of their continuing support for the two companies.

The tentative agreement contains the GM concessions and, according to the CAW, the following:

• The elimination of semi-private hospital coverage.
• The elimination of a one-time $3,500 vacation buyout negotiated in 2008.
• The elimination of clawback reimbursement through the SUB program.
• The elimination of employee car purchase and tuition rebate programs.
• An increase in the waiting period for sickness & accident benefits.
• A reduction in the maximum dispensing fee for prescriptions.

These are extremely difficult times for everyone and, I'm certain, the CAW did not break easily from pattern bargaining.  Unfortunately, it remains to be seen whether this will be enough. 

Driving to Distraction? Not in Ontario

 On April 23 the Ontario legislature passed a bill (Bill 118) prohibiting anyone from "holding or using a hand-held wireless communication device or other prescribed device that is capable of receiving or transmitting telephone communications, electronic data, mail or text messages.

The new rules will not come into effect until at least the fall according to the Globe.  Bluetooth sales are expected to get a boost.

More on Governmental Pension Guarantees

A few days ago I posted about the CAW's concerns about the Ontario government's announcement that they would not allow the Pension Benefits Guarantee Fund to operate at a deficit. 

Fast forward, and now the Montreal Gazette has an article Are our pensions safe? Union asks Ottawa for guarantee not dealing with the auto industry, but with AbitibiBowater Inc. filing for bankruptcy protection on Friday.  This time the Union is turning to the federal government for assistance.  The union is also asking for  a bail-out package.  According to the article:

He [Renaud Gagné, CEP-Quebec vice-president] said it's now time for the Quebec government to step in with at least $100 million in guaranteed loans to keep AbitibiBowater afloat and save jobs.

CEP national secretary-treasurer Gaétan Ménard suggested the governments of Ontario and Nova Scotia also chip in since AbitibiBowater has operations there as well.

Work is not good for continuing education

A study to be released shortly by the Canadian Millennium Scholarship Foundation and discussed in Work increases risk of dropping out warns that:

..... balancing higher education and work is a tricky business, with every extra hour students spend on the job each week reducing the likelihood that they will finish their degree.

And further:

"The main message here is that working and going to school is not a good thing," said Anne Motte, one of the study's authors and a researcher with the Millennium Foundation. That finding, Ms. Motte said, is contrary to popular wisdom, which has generally been that working part time is good for students, as long as the hours aren't excessive.

With mounting student debt, the message from this study is troubling particularly given the number of college and university students that have no choice but to hold down a job while going to school. 

Are you going to the pink slip party?

What's a pink slip party you ask?  The Globe has an article and there will be some live blogging from the event and an online discussion on Wednesday.  Also, check out pinkslipparty.ca and pinkslipparty.com and find out more.  There's even video from the CBC.  It seems that:

More than 100 jobseekers have signed up for $20 tickets (proceeds go to Project Winter Survival charity), as have 20 recruiters and employment coaches, and a few dozen loyal friends going along as emotional support.

It's an interesting job search initiative mixing networking and fun in a time of great uncertainty.

Airport Employee Security Checks

Subject to human rights legislation and obtaining suitable consents, conducting pre-hire criminal background checks is common in Canada. 

However, according to a Globe and Mail article effective immediately, "baggage handlers, caterers and other airport workers will not merely undergo standard criminal background checks through CPIC, the Canadian Police Information Centre, they will face scrutiny under much more obscure databanks, with names like PROS, ACIIS, and SPROS."

The article goes on to note that:

The sweeping scope of the checks means that people who want to work inside secure areas at Canadian airports will be scrutinized for everything from past traffic accidents to links to criminal and terrorist groups. Police can run searches for any warrants outstanding in any of the 187 member countries that form Interpol.

The decision is, of course, fraught with employment and privacy questions.   

Don't Forget About the Timing of the Termination

My friend Michael Maslanka, a partner in the Dallas office of Ford Harrison LLP and  editor of The Texas Lawyer has a post reminding us about The right day and time to terminate an employee.  I couldn't agree more with Mike's comments. 

Back in 2004 I wrote Some Thoughts on the Timing of the Termination and in 2005 I wrote 12 Thoughts on Employee Terminations in which I echo Mike's views.  With respect to the Friday termination I'd also add that the employee will not be able to get legal advice over the weekend though they will get advice from well meaning people such as their family or friends who may not have any legal training whatsoever and might, unintentionally, aggravate the situation such that the employee, come Monday, is all fired up and looking for a fight. 

Check out Mike's post and excellent Work Matters blog.

Blawg Review #207 is Out

My friend Jordan Furlong has posted the most recent installment of Blawg Review on his excellent Law21 blog.  If your not familiar with Blawg Review, please check it out.  Jordan reminds us that Blawg Review made its debut some 4 years ago, which seems like an eternity ago.