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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
True/False Questions
1) Every worker in Canada has the right to join a union.
a. True
b. False
2) Some employee organizations are not entitled to take part in the collective bargaining
process.
a. True
b. False
3) One less common method of acquiring bargaining rights is through voluntary
recognition by the employer.
a. True
b. False
4) The employees of Lou’s Construction have asked Lou to recognize their trade union as
the bargaining agent for his employees. If Lou provides voluntary recognition, his decision
cannot be challenged.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
5) Local 66 have recently been certified to represent the employees of a large
manufacturing company. An employee, Shep, expresses his dissatisfaction with the union.
Unfortunately for Shep, he will not be able to bargain on his own behalf with his employer.
a. True
b. False
6) Until a contract is secured, any union is free to attempt to negotiate a desirable collective
agreement on behalf of the bargaining unit.
a. True
b. False
7) Collective agreements are best thought of as contracts between multiple parties.
a. True
b. False
8) Management and unions have some say as to the procedure for dealing with grievances
so long as they stipulate the procedure in their collective agreement.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
9) Superset Inc is a union shop organized labour employer. Hannah is not a member of the
union. Hannah can still work for Superset so long as she is willing to become a union
member before or shortly after she starts work.
a. True
b. False
10) Only a panel of three labour arbitrators can hear disputes about violations of the
governing labour relations statute.
a. True
b. False
11) Madeleine is a labour arbitrator hearing a dispute. During its submissions, one of the
parties provides Madeleine with a case that is virtually identical to the facts in dispute.
Even if the case has not been overruled and there are no other cases that go in the opposite
direction, Madeleine is free to disregard the case if she thinks it is wrongly decided.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
12) Hans, a union member, was demoted due to incompetence in the workplace. The
collective agreement contained a “just cause” provision. The employer’s decision is,
therefore, not subject to review by an arbitrator.
a. True
b. False
13) Arbitrators can issue awards, but they do not have the power to enforce them.
a. True
b. False
14) There is no right to strike expressly stated in either the Charter of Rights and Freedoms
or by common law.
a. True
b. False
15) After a strike, workers have a guaranteed right to be reinstated to their previous
positions.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
Multiple Choice Questions
1) Which of the following best distinguishes labour law from employment law?
a. Employment law is governed by common law, whereas labour law is governed
exclusively by statute.
b. Labour law is governed by common law, whereas employment law is governed
exclusively by statute.
c. Employment law involves trade unions, whereas labour law does not.
d. Employment law governs collective relations amongst management, trade unions, their
members, and the institutions involved in such relations.
e. “Labour law” refers to collective bargaining with unions.
2) A document containing the terms of employment and the rights and duties of the
employer, the trade union, and the employees is known as
a. a contract of employment.
b. a collective agreement.
c. the Labour Relations Act.
d. the Employment Standards Act.
e. a release.
3) The right of a union in a federally regulated industry to bargain collectively on behalf of
employees is derived from the
a. common law.
b. existing collective agreement.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
c. Canada Labour Code.
d. Labour Relations Act.
e. Charter of Rights.
4) Simone and a group of her colleagues have decided that they wish to bargain collectively
with their employer. In order to do so, they will need to
a. form an appropriate bargaining unit.
b. form a labour relations board.
c. become a certified bargaining agent.
d. become incorporated.
e. go on strike.
5) Which of the following groups are eligible to bargain collectively in all jurisdictions?
a. lawyers
b. managers
c. doctors
d. nurses
e. the RCMP
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
6) After a union membership drive, if more than a majority of employees in an appropriate
bargaining unit become members, the unit is automatically certified in
a. all jurisdictions.
b. no jurisdictions.
c. Alberta and Nova Scotia.
d. all jurisdictions except Alberta and Nova Scotia.
e. all jurisdictions except British Columbia and New Brunswick.
7) Which of the following industries is most likely to select its bargaining agent through a
system of voluntary recognition?
a. auto industry
b. steel plant
c. homebuilders
d. universities
e. hospitals
8) During the process of negotiating a collective agreement, Local 969 and the employer
come to an impasse. The problem lies in the fact that the employer simply refuses to meet
and discuss the issues. In this situation,
a. the union will not be able to achieve its goal of signing a collective agreement.
b. the employer has committed a criminal act.
c. it will be necessary to hold another membership drive.
d. there has been a breach of the duty of good faith.
e. the employer is completely within its rights to refuse to negotiate at all.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
9) Which of the following would be required by the duty to bargain in good faith?
a. the duty to supply information about the number of union members
b. the duty to present a proposal that is to the mutual benefit of both parties
c. the duty to protect confidentiality
d. the duty to respect the fiduciary nature of the relationship
e. the duty to reveal the financial statements of the employer
10) The Umbrella Workers Local 18 and Parapluie Co had come to a tentative agreement
on major issues and the union members voted in favour of it. But nothing was committed to
paper yet. Thinking that there were some important outstanding issues that needed to be
resolved, the umbrella workers continued to strike. Parapluie Co accused the union of
striking unlawfully, since an agreement was in place. May the union continue to strike?
a. Yes. There has not been a “meeting of the minds,” so full consent has not been given to
the agreement; therefore, it has not been executed and the union is still entitled to strike.
b. No. Once an agreement has been reached between the parties, they are no longer entitled
to strike according to labour legislation in most jurisdictions.
c. Yes. An agreement must be signed in order for it to be executed, therefore the union is
still entitled to strike.
d. No. Once the membership has voted in favour of an agreement, the union is bound by the
agreement and they are no longer entitled to continue negotiating according to labour
legislation in most jurisdictions.
e. No. A collective agreement can be made orally.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
11) Gus and Marty are members of the Ironworkers Union. They are skilled to work on the
construction of bridges and multi-storey buildings. Each year, they pay a membership fee to
the Ironworkers Union and dues are deducted from their pay cheques. In between jobs, they
show up at the Ironworkers Hall to receive work assignments. The employer calls the union
hall when it needs workers, requesting a certain number of workers with certain skills. The
employer will only take union members. This structure is an example of
a. a closed shop.
b. a union shop.
c. a dues shop.
d. an open shop.
e. a right to work shop.
12) A dues shop
a. is one that is based solely on seniority … you must pay your dues before you get the good
work.
b. requires a person to become a card-carrying union member prior to employment.
c. is the same as a closed shop.
d. is a made-up term created solely for the purposes of fooling you on this question.
e. requires a hired worker to pay union dues but not necessarily join the union.
13) Although Dieter is employed in a “union shop” workplace, he disagrees with the
concept of unions in general, and he does not like his own union leaders in particular. He
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
feels that it is contrary to his personal freedom that he must remain a member of the union.
What are Dieter’s options?
a. no choice but to remain in the union
b. pay his union dues to a charity instead
c. find another job at a non-unionized workplace
d. continue to pay union dues but cease to be a union “member”
e. complain to the court about the union
14) An arbitration board or sole arbitrator usually hears disputes concerning
a. the collective agreement.
b. the violation of the governing labour relations statute.
c. the violation of the governing employment standards statute.
d. complaints by the union but not by management.
e. whether a union should be certified as a bargaining agent
15) In which of the following is an arbitrator (or arbitration panel) similar to a judge?
a. Both are bound by previous jurisprudence.
b. Both are jointly appointed by the parties.
c. Both strictly apply the rules of evidence.
d. Both may apply the principles of equity.
e. Both have inherent jurisdiction.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
16) Gerhart is representing a large corporation that is trying to put a stop to a grievance by
Samson resulting from a disciplinary sanction against him for incompetence. Gerhart hopes
to make his argument before the arbitration actually commences and end the matter for all
times. Which of the following arguments will most likely achieve this end?
a. Samson is not, in fact, covered under the collective agreement.
b. The issue raised falls within of the scope of the collective agreement.
c. Samson was an incompetent worker.
d. It has recently come to light that Samson stole from the company.
e. Samson was not really demoted.
17) Chara was hired for a position that required her to quickly assemble parts on an
assembly line. Unfortunately, Chara has consistently had problems keeping up with the
pace of the other workers, and the line often gets backed up at her station. The employer
decided to demote Chara to a cleaning position where she will earn a lower wage. The
union grieved the demotion, claiming that management did not show just cause, nor did
they warn Chara that continued slowness would result in a demotion. What is the likely
outcome of the grievance?
a. The employer will lose because it should have shown just cause.
b. The employer will win because a demotion related to competence is non-disciplinary and
not subject to review by an arbitrator.
c. The employer will lose because whether a demotion or discharge is disciplinary or non-
disciplinary, the employee deserves to be given a warning.
d. The employer will win because the employer has the right to make final decisions about
hiring, firing, promotion, and demotion.
e. The employer will lose because Chara was not incompetent.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
18) An employer has made a financial decision to lay- ff workers. Shane has decided to
invoke her bumping rights. The collective agreement specifically prohibits bumping up.
Which of the following is true?
a. Shane can temporarily move into a more junior position for which she is qualified or
competent.
b. Shane can temporarily move into a more senior position for which she is qualified.
c. Shane can permanently move into a more junior position for which she is qualified or
competent.
d. Shane can permanently move into a more senior position for which she is qualified.
e. Shane can choose to move into any other position in the organization that is not subject
to layoff.
19) Local 121 and Highflyers Inc management are working on a collective agreement.
Local 121 is seeking to include a provision that allows bumping up. Highflyers
management feels strongly that such provision should not be included because it wants to
be able to
a. reward long-time employees.
b. prevent the domino effect that occurs in bumping.
c. make demotions based on incompetence.
d. make appointments and promotions based on merit.
e. make appointments based on which employee is likely to vote to decertify the union.
20) Local 304 and Kar Manufacturing Inc have just implemented a new collective
agreement, but there is already trouble. Local 304 allowed a specific provision addressing
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
retroactivity of wage increases to be dropped because there were other more pressing issues
to discuss. The agreement is silent on retroactivity and now Kar management does not
intend to institute the agreed upon wage increase retroactively. Which of the following is
the correct principle to be used by the arbitrator in resolving the union’s grievance?
a. Retroactivity is one of the matters that must be addressed specifically in collective
agreements in order to be applied.
b. There is a general presumption of retroactivity regarding wage increases in collective
agreements.
c. Only those terms that are addressed explicitly in collective agreements will be applied.
d. Some terms may be implied in collective agreements but retroactivity of wages is not one
of them.
e. The law presumes that wage increases are never retroactive.
21) Maria is a nurse at a hospital where a new three-year agreement was negotiated July 1,
2012. The new agreement is deemed to take effect as of January 1, 2013. It includes a
provision that a 4 percent wage increase will be paid retroactively to the date the agreement
was negotiated. Maria is also looking forward to 1.5 days of paid vacation leave for every
month worked instead of the one day of vacation leave per month worked she received
under the old collective agreement. In 2013 she hopes to take her family to a cottage for
three and a half weeks. She is shocked when she tries to book her vacation and she is told
that she is not entitled to take so much time. Certain that management has made a mistake,
she comes to you for advice. How many days of vacation is Maria entitled to during the
year 2013?
a. 18
b. 15
c. 12
d. 10.5
e. 11
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
22) Peter was fired after his manager caught him breaking a workplace rule. Peter filed a
grievance and the arbitrator found that while he had contravened an important rule, the
collective agreement required more than a single transgression to show just cause for
dismissal. Which of the following awards is the arbitrator permitted to craft in her decision?
a. Rewrite the provision in the collective agreement to allow dismissal if employees break
the particular rule in question.
b. Award damages to Peter in the form of the appropriate notice of dismissal since it is not
possible for an arbitrator to reinstate an employee who has been dismissed.
c. Substitute a warning or suspension and reinstate Peter’s job.
d. Rewrite the provision in the collective agreement to prevent the employer from enforcing
the particular rule.
e. Rewrite the collective agreement to delete entirely the “more than a single transgression”
clause.
23) An arbitrator ordered Local 234 to cease its illegal walkout from Ardvark Inc. Local
234 decided to continue its action anyway, in order to send a strong message to the
employer. How can Ardvark Inc enforce the order against the union?
a. Call the police to charge the picketers with breaking the arbitrator’s order.
b. Arbitrators’ orders are unenforceable.
c. Sue the union local in a civil action.
d. Bring the arbitrator to the scene to sort out the dispute.
e. File the arbitrator’s order with the court and enforce it as with any judicial order.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 27: Organized Labour
24) What is the most usual means of resolving a dispute that arises under an existing
collective agreement?
a. litigation
b. mediation
c. negotiation and conciliation
d. strike or lockout
e. grievance arbitration
25) A strike is unlawful in Canada whenever it
a. occurs while a collective agreement is in force.
b. involves picketing.
c. results in a lockout.
d. results in a boycott.
e. will cause problems for other businesses.
26) After a heated argument between picketers and managers crossing the line, five workers
set fire to three company cars and ruined other company property. Can management
express its displeasure by firing the employees?
a. No. Under statute, employees cannot be fired while on strike.
b. No. Under statute, employees have the right to be reinstated in their previous positions.
c. Yes. The employer will have grounds to discharge employees so long as it can be proved
that they have engaged in serious misconduct while on strike.
d. No. Temporary flare-ups of violence on picket lines do not constitute just cause for
dismissal.
