3. If you had been advising JTI on the safety bonus issue, would you have recommended the...
Question:
3. If you had been advising JTI on the safety bonus issue, would you have recommended the company retain half the bonus money for the purposes described by the company (i.e., buy safety equipment and pay for the annual Christmas party)? Why or why not? Bob Dale and Sam Brady were employed as truck drivers by Jackson Transportation Inc. (JTI) a nonunion firm engaged in interstate commerce. JTI provided transportation services for nonunion Acme Steel Corporation (ASC) hauling steel coils between ASC’s various plants and directly to various ASC customers. Dale and Brady performed all of their work assignments, transporting steel coils on ASC property.
To encourage safe trucking operations, ASC implemented a safety bonus program that paid trucking firms employed by ASC an amount equal to one dollar for each safe hour of work performed by each firm’s employees. ASC strongly encouraged the transportation firms with whom it contracted for services to pass the $1 per safe hour of operation bonus on to their employees.
JTI decided to pass one half of the safety bonus payment (50 cents) on to its truck drivers and keep the remaining 50 cents to fund certain safety equipment purchases and the company’s annual Christmas party. Bob Dale learned from talking to drivers at other firms employed by ASC that they were receiving the full $1 bonus from their employers. This upset Dale who thought his employer (JTI) should also be giving drivers the full $1 per hour bonus payment. Dale discussed his complaint with several other employees, including Sam Brady.
Step by Step Answer:
The Labor Relations Process
ISBN: 9780324421446
9th Edition
Authors: William H Holley, Kenneth M Jennings, Roger S Wolters