Employer said cards were expression of thanks but they were accompanied by letter criticizing union negotiating tactics
A British Columbia grocery store conducted an unfair labour practice and inducement of unionized workers when it sent letters to striking employees with a gift card enclosed, the B.C. Labour Relations Board has ruled.
Extra Foods, a supermarket in Maple Ridge, B.C., was negotiating with its union in 2007. There was controversy when the union believed it accepted an offer from Extra Foods subject to ratification by union members. An arbitrator determined an agreement had been reached but it was never ratified. They continued to negotiate until late 2008, when the sides came to an impasse and the workers went on strike on Dec. 15. Other store workers who were members of a separate union refused to cross the picket line and the store was forced to close.
Striking employees received letters and gift cards
On Dec. 23, 2008, the owner of Extra Foods couriered a letter to each of the employees on strike. The letter described how disappointed the owner was that the union chose not to take either of the store’s two offers to its membership for a vote. It went on to say the owner hoped the union would conduct a vote so the store could reopen.
Each letter included an expression of thanks to the employee and a gift card good for use at any affiliated store. Full-time employees received a gift card worth $250 and part-timers $100. Letters and gift cards were also sent to employees who weren’t on strike but weren’t crossing the picket line, without the reference to a ratification vote.
Union cried foul
The union filed a complaint to the board that Extra Foods was improperly inducing its members during a labour dispute by offering them monetary rewards and breach its duty to bargain in good faith, both breaches of the B.C. Labour Relations Code. It said the letter tied the gift to the store’s complaints about the union and its bargaining and delivered it directly to employees rather than going through the union.
To compensate for the breach, the union demanded the store pay an equivalent amount of money to the union for it to distribute to its members as well as monthly payments of an equal amount for the length of the labour dispute. This, the union argued, would give a “beautiful symmetry” and allow the other side of the dispute to give its members an equal gift.
Extra Foods defended the gift cards, saying it had a right to provide a bonus to employees without union permission. It argued all employees received it, whether on strike or not, and it didn’t change any terms and conditions of employment nor did it ask for anything in return. Separately, giving a gift and describing its position were allowed under the code, the store said, so they shouldn’t be a problem when combined.
Gifts accompanying letters were inducement
The board found the letter on its own was not inappropriate, but combining it with the gift cards was a different story. Though Extra Foods denied it was a bribe, the board pointed out the definition of a bribe was a gift meant to influence the conduct of the receiver. It also found the $250 and $100 value of the gift cards was a significant value that could reasonably be seen to influence the employees’ conduct regarding the union’s bargaining strategies.
The board also found the store had never before given any gifts or bonuses to its employees, which supported the inference this gift was at least partly motivated by the bargaining situation. Even though this was a case of just one gift to each employee, it was of significant enough value to have an effect on striking workers.
“Coupling the gift cards with the negative comments about the union’s choices in bargaining, in particular, its decision not to vote on the employer’s offers, changes the nature of the gift from gratuitous bonus to improper inducement,” the board said.
The board found Extra Foods tried to circumvent the union by improperly influencing its members to push for a ratification vote on the offers it made during bargaining. This was a breach of the code.
However, the board said the union’s request for a financial payment equalling its gifts to employees wasn’t necessary. The store’s breach of the code didn’t cause the strike and didn’t change anything for the collective bargaining or the length of the strike, it found. The union also didn’t change any of its conduct after employees received the letter and gift.
