Case Study

Morhead Biscuit Company is internationally renowned for its success in recruiting the best Customer Service Agents, administrative and managerial staff in the industry due to its sound Industrial Relations Programmes that caters to the needs of the employees. As a unionized, employer of choice, the staff were able to benefit from various IER programmes and benefits. On June 29, 2020, 80 staff members in Jamaica, when leaving work, were issued with letters by their Supervisors that the company was experiencing financial constraints and their positions were no longer needed and their posts would be made redundant. Twenty persons who were on Vacation leave and Maternity leave were sent emails informing them of their positions being made redundant. The staff members were also informed to returned the following date to meet with Mr. Shane Daly, Head of Human Resource the following day as he was in a meeting with the Board of Directors discussing their redundancy. Staff members grew angry and notified their Trade Union. The union reported the matter to the government ministry and their staff had launched an investigation into the matter and requested that the Managing Director of Morhead Biscuit Company provided a report on the matter within 24 hours. The union also wrote to the Managing Director of Morhead Bisuit Company, Mr. Merrick Lloud, complaining about the matter and they could not ensure normalcy within the work place. The anger grew even further and the following day, staff members at the Kingston location protested outside the gates of the company. Staff and union representative bore placards that called for the boycotting of Morheads Biscuit products. The government officials ordered the company to withdraw the redundant exercise. Employees of Morhead Biscuit Company were experiencing a high increase in exposure to persons who were tested positive and were sent home on Leave of Absence. The unavailability of staff was further compounded by the staff members using their Sick leave due to their scare of being exposed to the virus. A committee was organized, involving the staff members, to develop the strategies and decide on the best options with managements approval. The committee was tasked with the matter of recommending which position could be changed from contract of service to contract for service and vice versa. For Morhead Biscuit Company and its employees, the situation has become a matter of economic survival for however long the COVID-19 pandemic will last. Written by Eric Morrison, UCC Adjunct Faculty, September 2020 4.

(1)The union has indicated to the management of Morhead Biscuit Company that the company had breached the collective agreement. As an expert in Industrial Relations recommend to the management team at least five (5) strategies that they could implement to ensure compliance with the collective agreement to maintain a sound industrial relations working environment?

(2)With the management team recognizing the problems they created, they established a Committee as part of the Industrial Democracy programme. Discuss five (5) benefits that the company could gain from implementing Industrial Democracy. (CLO 5) (5 marks)

(3)During the COVID-19 pandemic, the rights of employees could be impacted by the terms and conditions in their contract for service or contract of service. Determine the difference between contract of employment and contract for employment and justify five (5) benefits each that can be gained from using either contract