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Part B: Interpretation and Data Collected

Executive Summary:
Currently under Employment Standards Act, employees are required to work maximum of 8 hours in a day, unless mentioned
in the contract. According to Employment Standards Act, maximum numbers of hours employees required to work, are not allowed to
exceed 48 hours in a week without the permission from the Director of Employees Standards. Consolidated Electric is in compliance
Part B: Interpretation and Data Collection
with the legislation, it has 40 hours in week from Monday to Friday with 8 hours shift per day. Consolidated Electric is paying overtime
rate of time and half and two time which is more than what is mentioned in the legislation. Consolidated Electric has not referenced of
any sort of breaks and lunch in its collective agreement, while according to Employment Standard Act “An employee must not work
for more than five hours in a row without getting a 30-minute eating period (meal break) free from work”.
In Competitive Analysis, the companies that are closely related to Consolidate Electric are National Rubbers Technologies
Inc., Atlantic Packaging Product Ltd and Sanofi Pasteur Limited, are researched. They are compared in three categories: Hours of
works in a day, Break and Overtime rate. During the research it was discovered that Consolidated Electric has no provision of breaks
and meals in its collective agreement. Due to lack of clear information on collective agreement and some of the missing information
there are numerous grievances which can be avoid with the proper provision of hours of work, breaks and overtime rate in the
collective agreement.

Interpretation of Article:

Questions composed by: Neha Jain


Question: Answer:

Updated: January 2017 2


Part B: Interpretation and Data Collection
I worked my regular 8 hours shifts from Employees are entitled to a premium rate of 1.5 times of regular wage for the overtime hours
Monday to Friday, then my manager asked me worked, according to Article 6.03(b) of collective agreement, except in the case of Sunday,
to work overtime on the weekend. So, I worked being the second day of working overtime hours then the rate is 2 times of employee’s
8 hours shifts on Saturday and Sunday as well. regular wage.
What will be my overtime rate and how is it For example, John regular wage is $15.00 per hour, his overtime rate will be $15.00*1.5=
calculated? $22.50. If he works his regular weekly shift and overtime on Saturday and Sunday, John is
entitled to the premium rate of $22.50 on Saturday and for Sunday his rate will be
$15.00*2= $30.00.
I have some family obligations on Wednesdays, If an employee works more than 8 hours per day, the excess hours worked from Monday to
I requested my manager to give me two shifts on Friday, including Saturday and Sunday is entitled to overtime rate according to the Article
Tuesday instead of Wednesday shift. Will I be 6.03(b). However, if the change in shifts are requested by employee himself, then the hours
entitled to overtime rate for the extra shift I worked in excess to 8 hours per day are not entitled to overtime rate.
worked on Tuesday?

Is it mandatory for me to do overtime work, if Employee has the right to deny for overtime work if there are other volunteers available to
asked by my supervisor? do the work. If there are not enough volunteers, one with the least seniority will be assigned
overtime work, as explained in the Article 6.04.

Questions composed by: Mishal

Question: Answer:

If my manager told me to work overtime, and in my section As stated in the Article 6.04, due to least seniority and no other volunteers in
there's only two employees that are capable to perform the your department, you wouldn’t be able to refuse overtime and would have to go
job, and my co-worker has worked for the company for 5

Updated: January 2017 3


Part B: Interpretation and Data Collection
years, whereas I worked for the company for 2 years, am I to work as your manager asked you to do.
allowed to refuse overtime?

I started my shift at 8:30 pm on a Monday night, would that As stated in the Article 6.05, the shift started before 10 pm is considered the
be consider the following day of hours worked? shift of same calendar day. The shift started after 10 pm is considered as shift of
next day. For example, if you started your shift on Monday at 8:30 pm your shift
is treated as shift of Monday, but if your shift starts at 10:30 pm on Monday then
it will consider as shift of Tuesday.

Am I only supposed to be working, Monday to Friday shifts? The normal hours of work shall be consisting of five “eight-hour shifts, Monday
to Friday. This is not to be read and interpreted as a guarantee to provide work
for any period whatsoever. Since, the clause does not specify that work will be
provided to fulfill those 8 hours because as it states that there not guaranteed for
the work in the given period.

Analysis of Legislation:

Section completed by: Neha

Legislation referred to and URL Data Collected How does Consolidated Potential Impact on
Electric compare to the negotiation of your article
legislation?

https://www.ontario.ca/document/your-  Employee is required to  Consolidated As mentioned, Consolidated


guide-employment-standards-act-0/hours- work maximum of 8 Electric has 8 hours Electric’s working hour is well
work hours in a day, unless of daily shift. under (40 hr) the standards of

Updated: January 2017 4


Part B: Interpretation and Data Collection
Section completed by: Neha
Legislation referred to and URL Data Collected How does Consolidated Potential Impact on
Electric compare to the negotiation of your article
legislation?

mentioned in the  Work week at ESA. Management can use this as


contract. Consolidated a positional bargaining strategy
 Maximum number of Electric consists of during the negotiations.
hours employee required 40 hours from Management can ask to increase
to work in a week Monday to Friday. the number of hours worked in a
cannot exceed 48 hours  There is no mention week. Also, there is no language
without the permission of breaks and rest about the breaks, rest periods in
from the Director of period in collective the collective agreement, bringing
Employment Standards. agreement. this to the table can prove
 An employee must  Collective agreement beneficial for the management.
receive 11 consecutive has no information Company has to follow the terms
hours off work each day. about the time off mentioned in the ESA, by
from work between bringing this it will show union
 Employees must receive shifts. and its members that management
at least eight hours off is concerned about its employees.
work between shifts.
 24 consecutive hours off
work in a week must be
provided to an
employee.
 48 consecutive hours off
work in a period of two
week must be provided
to an employee.
 30- minute meal break
must be provided to an
employee after every 5
hours of work. This
break is unpaid unless
mentioned in the
contract.

Updated: January 2017 5


Part B: Interpretation and Data Collection
Section completed by: Neha
Legislation referred to and URL Data Collected How does Consolidated Potential Impact on
Electric compare to the negotiation of your article
legislation?

https://www.ontario.ca/document/your-  Overtime pay is 1½  Consolidated As Consolidated Electric is


guide-employment-standards-act- times the employee's Electric is paying paying overtime rate of 1.5 times
0/overtime-pay regular rate of pay. two overtime rates to and 2 times of regular wage to its
 Overtime is paid on its employees that is employees which is above and
weekly basis or for 1.5-times on the first beyond the standards of ESA, this
longer period of time, day and 2 times on is another strong point for
unless mentioned in the second day of management to use at bargaining
contract. overtime work. table.
 Managers and  Collective agreement
supervisors do not explains that
qualify for overtime pay. overtime can be paid
on daily basis as
well.

Updated: January 2017 6


Part B: Interpretation and Data Collection
Economic Indicators:

Section completed by: Mishal

Observations from Part A Key considerations that will impact the negotiation
Overall impression of the economy Economic Indicators- Canada’s economy is growing at 3% which is good sign. With the growing
and its potential impact on the economy rate of interest is also increasing, currently at 1.25%. This mean the slowdown in the home
negotiation of your article: construction, which in turn result in the less sales for Consolidated Electric. With decreased sales
Consolidate Electric might have trouble giving its employees 8-hours shift.
Demand of labour- With the increase in the minimum wage since January 2018, the supply of labour has
increased, while the demand is decreasing as most companies are trying automate. Consolidated Electric
can have more labour and won’t be needing employee for Overtime.
Manufacturing Industry- Manufacturing industry is showing little to no growth in previous years,
which can pose a threat of job security and the employee of Consolidated Electric.
With the economic factors playing its part, Union can be worried that with the decline in sale and surplus
supply of labour in the market, employees might not be able to get even 40 hours in a week. Company
will hire more part time workers instead of full time staff.

CE’s financial performance and its Company’s overall finances appears to be at a good level, due to minor drop of 2.5% in sales one year
potential impact on the negotiation which resulted in decrease in net profit by $1,796002. Since Consolidated Electric sales are in an
of your article: increasing phase, they will have increased expenses of premium overtime rates. As shown in Appendix
A, company’s Earning per share is in a phase of recovering from the drop one year ago, since earning per
share is an indication company’s profitability, for Consolidate Electric it does represent that they have
struggled in the past. To gain higher profitability, the company has to increase the amount of labour in
store.

References: Part A/ Excel file

Competitive Analysis

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Part B: Interpretation and Data Collection
(a)Data Collected:

Section completed by: Neha Jain

Agreement Consolidated National Rubbers Atlantic Packaging Products Ltd Sanofi Pasteur Limited
Electric Technologies Inc.
Location GTA GTA GTA GTA
Expiry April 2015 June 2018 November 2020 September 2019
Date of
Agreement
URL NA http://negotech.labour.gc.ca/eng/ http://negotech.labour.gc.ca/eng/agre http://negotech.labour.gc.ca/en
agreements/14/1499701a.pdf ements/11/1113005a.pdf g/agreements/02/0237413a.pdf

Hours of 8 hours per day Number of hours worked cannot There are 8 hours and 12 hours shifts Workday consist of 7.5 hours in
work in a be less than 8 hours or more in a day. a day.
day than 12 hours in a day.
Breaks N/A  30 min of paid lunch in 10 min relief period is given to non- 10 min of break is given at the
each shift. continuous worker at the end of 3 end of shift to change back in
 Two 10 min of paid hours or more of overtime shift. their own clothes.
break in addition to
lunch for employees
who work 8 hours in a
day.
 Three 10 min paid
breaks in addition to
lunch for employees
working over 10 hours
in a day.
 Four 10 min breaks in
addition to lunch for
employees working
more than 11.5 hours in
a day.
Overtime  1.5 times of  Premium rate of 1.5 Premium rate of 1.5 times of regular  Premium rate of 1.5
rate employee’s times is given after 40 wages is given for excess hours times of regular hourly

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Part B: Interpretation and Data Collection
regular wage hours in a week to worked after the assigned shift and rate is provided to the
is given on the employees working 8 on days off. employees working
first day of hours shift. more than 7.5 hours in
overtime.  Premium rate of 1.5 a day.
 On second times is given after 80  Premium rate of 1.5
day of hours in two weeks to times the regular wage
overtime the employees working 12 is given for the
premium rate hours shift overtime hours worked
of 2 times of on the first day of rest.
employee’s  Premium rate of 2
regular wage times the regular wage
is given is given for the
overtime hours worked
on the second day of
rest.

Updated: January 2017 9


Part B: Interpretation and Data Collection
(b)Interpretation of Data Collected:
In the competitive analysis we looked at the three-different manufacturing companies, all of them are located in the GTA. We compared these
companies with Consolidated Electric on the basis of three points, hours worked in a day, breaks and overtime rate. In terms of hours worked in a
day Consolidated Electric has one 8-hours shift in a day while National Rubbers Technologies Inc. and Atlantic Packaging Products Ltd both have
two shifts in a day one shift is of 8-hours and another is of 12-hours. On the other hand, Sanofi Pasteur Limited has one shift of 7.5 hours in a day.
Consolidated Electric lack in the breaks from its competitors. There is no mention of breaks in Consolidated Electric’s collective agreement, while
National Rubbers Technologies Inc. went above and beyond in providing breaks to its employees. They have 30 min lunch and two 10 min breaks
for its employee in 8-hours shift. Their collective agreement has outlined the break periods in detail. Atlantic Packaging Products and Sanofi
Pasteur Limited don’t have that extensive information about breaks in their collective agreement, but there is section that talks little bit about
break. Consolidated Electric and Sanofi Pasture limited are both paying two premium rates to its employees, 1.5 and 2 times the regular wage of
employee. While National Rubber Technologies Inc. and Atlantic Packaging Products Ltd. Both have single premium rate of 1.5 times.
Consolidate Electric is in comparison with its competitors, company is doing good in terms of working hours and overtime pay. Although, it lacks
in terms of the breaks provided to its employees. Consolidated Electric has to follow ESA standards, so according to ESA employee should not
work for more than 5 hours without getting a 30 min of break. It would be a good idea to instill this in the collective agreement.

Updated: January 2017 10


Part B: Interpretation and Data Collection
Grievance/Arbitration Analysis

Section completed by: Neha and Mishal

Article Key considerations in the grievance Possible changes to the Collective Agreement as a
Grieved result of the grievance

6.01 Grievance was made by employees in the shipping/ receiving Consolidated Electric has no language about lunch time and
department. It was made due to the reason that another department break during the shift. Adding a clause in the collective
have “custom “of two 15-minute break in a shift, which their agreement about the length of break and whether its paid or
department is not getting. unpaid will help employees understand in a better way that
what types of breaks they are entitled to. Also, it will be
equal among all the departments.

6.04 Grievance was submitted by employees in shipping/receiving Putting in a clause in the collective agreement like National
department. It was alleged that not all employees are getting Rubber Technologies Inc. did in theirs, about giving equal
overtime opportunity. Once any employee turns down the opportunities of overtime to all employees.
overtime work hours they are considered to be not interested
in the overtime in future as well. They were never asked to do
overtime.
6.02 An employee is asking for overtime pay rate as he switched his It is mentioned in the collective agreement that overtime pay
shifts with another employee because of a doctor’s appointment. will not be given if employees end up working more than 8
Due to change in the shift employee end up working 12 hours in a hours in a day due to the changes they requested in the
day, while collective agreement says that any work done in excess shifts. Using a clear and concise language in the collective
of 8 hours per day is entitled to overtime pay. agreement and explaining the situation with the example
will make it clear for the employees.

Updated: January 2017 11

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