Essay Sample on Canadian Retirees

Introduction

We must recognize that Canadian retirees are on average not equipped to endure the cost of unexpected illnesses. Especially if they were under the understanding that their benefits would remain covered for life. Leaving retirees in a financial burden and vulnerable state in their life where they require benefits the most (Immen,2018).

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Courts often find, "current retirees and older employees close to retirement to be vested in these benefits, making it difficult to take away retiree benefits after they have been offered" (Immen,2018) In O'Neill v. General Motors of Canada, 2013 ONSC 4654, with the class consisting of over 3,000 retirees. Retirees won Class Action Lawsuit Over Reduced Benefits as the organization's past practice promised benefits for life. (Spiro, 2013)

We must recognize that few class actions involving health benefits are filled in Canada. Courts are usually in favor of the retires, providing bulk installments. Employers find it more cost-effective to settle rather withstand trail. In a class action, a lawyer takes the case on a contingency fee basis for all the retirees who participate in the class action (Immen,2018).

Legalities of Changing a Past Practice in a Unionized Environment

The union can file an unfair labor practice charge with the Ontario labour board since the change constitutes a unilateral change of an issue. The union can advise they believe that management is bargaining in bad faith. Therefore, the union can file a grievance in regards to past practice. In the case of Levesque and Treasury Board (Fisheries and Oceans - Canadian Coast Guard) the employer was estopped from unilaterally changing the practice and grievance allowed (Canada,2016) Legal experts have found that employers ought to be alert when negotiating decreases in benefits because of class-actions (Bull,2015)

Estoppel is a legal term, which is one of the legal rules of evidence which prevents parties from making allegations or denying the matters previously stated and agreed upon and what the law has established to be true. Estoppel also supports damages claim on behalf of the aggrieved party due to misrepresentation by the other party. In this case, Estoppel applies because it protects the union from the management trying to change terms already previously agreed upon. The union also has a right to damages from the administration since they are trying to change practices that have been in place for years (Lieberman, 2000). For Estoppel to work for the Union, they have to provide proof that what the management is trying to change is established past practice. Past practice is any recurrent and long-lasting practice within an organization that is known and accepted by the union and the management. Good faith practices are taken to be part of the contract which allows or the filling of any grievances if the administration violates them. To prove that something is past practice the union only has to show instances where the management was aware of the practice and allowed it to continue (Federal, Labor Relations Authority, 2016).

Some consequences come with tabling estoppel and proving past practice. If the management still wants to change the past practice even after estoppel, it may lead to a union-sanctioned strike. Strikes in most cases is a way of unionized workers to express they distaste and protest against decisions made by management on their behalf. Tabling estoppel could also go either way with the management putting in pace a lockout. A lockout means that employees are excluded from their workplace by management to pressure them to agree to specific terms (Handley, 2016). Neither the strike nor the lockout are intended consequences of estoppel and proving past practice but are possibilities.

Repercussions

"Long before collective bargaining starts, management must proactively prepare bargaining objectives that are aligned with the organization's vision, mission and values" (Algonquin College, n.d) As a strategic HR leader I believe we should initiate an Integrative Bargaining process where benefits are for both parties. An integrative collective bargaining process considers a variety of solutions that permits everyone to holds a voice. (Algonquin College, n.d)

A strongly documented and communicated bargaining plan provides an employer with the proper tools to negotiate a contract that satisfies all stakeholders. Our organization needs to ensure it has created a strategic bargaining plan that's harmonized with business strategies and objectives. It provides an outline that identifies the strengths, weaknesses, opportunities, threats of current and/or proposed contract language.

The plan identifies the vital roles of the supervisors and stakeholders. Meanwhile, the contingency plan provides a comprehensive communication plan to strengthen relationships with union representatives. (Algonquin College, n.d)

Management must review preliminary negotiations, examining grievances external factors that can impact an organization. Financial information is a tool to understand management's desired position. The Government of Canada website, Employment and Social Development Canada, is a tool that tracks labour relations and collective bargaining in Canada. Reviewing this tool while planning for a bargaining aids management (Algonquin College, n.d)

Once our plan is concrete, we will speak to the union before enforcing contract language against them. Being honest and providing credible information on what we intend and explain why we want to apply this change. The union can contribute their ideas to attempt both our parties to agree upon before manners escalate or give an opportunity for management and union to discuss, listen, consider and move ahead with their plans (Twarog,2004).

To benefit all stakeholders, management needs to share reform and original solutions to present in the bargaining negotiations. Management needs to discuss alternative solutions that educate employees on their needs during retirement and abilities to access these resolutions. Considering what other organizations are doing regarding group benefit plans for retirees and find out what method would work best for the aging population in our organizations. To provide cost-effective means to transition employees into retirement while also decreasing the risks and obligations of rendering comprehensive healthcare coverage after retirement. (Bull,2015)

Our organization must share options to unions by discussing the following alternatives. Provide a voluntarily fully paid by retirees plan, eliminate or reduce retirement plan support and provide education. Provide Retiree-pay-all plans to extend an insurer's conversion product to retiring employees. Our organization needs to guarantee we are offering options to unions that limit the financial impact to stakeholders but at the same time not leaving current and future retirees in a vulnerable situation. (Bull,2015).

References

Algonquin College (n.d). Module 6: Strategies to prepare for collective bargaining RetrievedDecember 19, 2018, from www.brightspace.com

Bull, D. (2015, October 27). The end of retiree benefits? Retrieved December 19, 2018,fromhttps://www.benefitscanada.com/benefits/health-benefits/the-end-of-retireebenefits-72327

Canada, E. A. (2016, December 02). Collective bargaining information. Retrieved December19, 2018, from https://www.canada.ca/en/employment-socialdevelopment/services/collective-bargaining-data.html

Federal, Labor Relations Authority (2016). Decisions of the federal labor relations authority. Place of publication not identified: U S Govt. PRINTING Office.

Handley, K. R. (2016). Estoppel by conduct and election.Immen, W. (2018, April 21). Retirees' benefits under siege. Retrieved December 19, 2018, fromhttps://www.theglobeandmail.com/report-on-business/retirees-benefits-undersiege/article1137532/

Lieberman, M. (2000). Understanding the teacher union contract: A citizen's handbook. New Brunswick, N.J: Social Philosophy and Policy Foundation.

Spiro, P. (2013, July 18). Non-Union Retirees Win Class Action Lawsuit Over ReducedBenefits inO'Neill v. General Motors of Canada. Retrieved December 19, 2018, from http://www.thecourt.ca/automaker-found-to-be-in-breach-of-contract-for-reducingbenefits-to-its-non-union-retirees-in-oneill-v-general-motors-of-canada/

Twarog, J. (2004, December 15). Past practice: Can the employer change the rules in the middleof the game? Retrieved December 15, 2018, from https://www.massnurses.org/laboraction/labor-education-resources/grievances-101/p/openItem/1162