Bob Jones has taken over the management of a large retail store from his father. His father had owned and managed the store for 30 years, where it employed 48 workers and invested capital at a rate of 1.5 million. The employees are represented by the retail store union, and bargaining is conducted through an employee association. The present contract will be in effect for 3 years.
When Bob Jones took over the store, he found that although the contract specified 40 hours a week, employees in his store had been working 35 hours a week for several weeks. He also discovered that although the contract stipulated a minimum rate of commissions, one very large store organization had been permitted to pay half a percent lower than the minimum rate. Bob Jones protested this action to the secretary of the employers' association but was told that nothing could be done about it. He also asked the employees of his store to work for 40 hours a week instead of 35.
The union representative called on him and informed him that unless they returned to 35 hours a week, the employees would file a grievance demanding overtime pay for the extra 5 hours. The business agent noted that there was no proposal to change hours in the most recent bargaining session. The secretary of the employers' association stated that the problem was an individual store issue and the association could not take responsibility for setting the difference.
Questions to be Solved in This Case Study Are Given Below:
1. What would be your advice to Bob Jones on the problem of weekly hours?
2. Comment on the opinion expressed by the secretary of the employers' union?
When Bob Jones took over the store, he found that although the contract specified 40 hours a week, employees in his store had been working 35 hours a week for several weeks. He also discovered that although the contract stipulated a minimum rate of commissions, one very large store organization had been permitted to pay half a percent lower than the minimum rate. Bob Jones protested this action to the secretary of the employers' association but was told that nothing could be done about it. He also asked the employees of his store to work for 40 hours a week instead of 35.
The union representative called on him and informed him that unless they returned to 35 hours a week, the employees would file a grievance demanding overtime pay for the extra 5 hours. The business agent noted that there was no proposal to change hours in the most recent bargaining session. The secretary of the employers' association stated that the problem was an individual store issue and the association could not take responsibility for setting the difference.
Questions to be Solved in This Case Study Are Given Below:
1. What would be your advice to Bob Jones on the problem of weekly hours?
2. Comment on the opinion expressed by the secretary of the employers' union?