Reference no: EM133180137

Early in the spring of 2020, the Technology Workers Union (TWU) was contacted by 10 employees of Runnr Inc., a technology company based in Waterloo, Ontario. Runnr specializes in development of mobile and enterprise level computer applications for the physical fitness industry. It employs 120 coders, designers, and office staff. The 10 employees told the TWU that they and almost all of their fellow employees were very concerned about matters such as low pay, shift scheduling, and work safety issues related to ergonomic design.

Employees commenced an organizing campaign with the TWU. The campaign quickly gained the support of employees, 83 of whom signed TWU membership cards. The union filed its application for certification and the Ontario Labour relations Board (OLRB) held a representation vote on June 1, 2020.

There was agreement between the employer and the union that the appropriate bargaining unit included the 102 employees in total, with the remaining 18 agreed to be outside the appropriate bargaining unit for various reasons. Ninety-five of those 102 employees took part in the June 1 vote and the ballots were tallied by the OLRB: 63 "Yes" votes in favour of representation by the TWU and 39 "No" votes in opposition to representation by the TWU.

In early September, Runnr and the TWU began negotiations for a first collective agreement. Among the TWU's proposals was a demand that Runnr would provide both a pay increase of 4.5% annually over a two-year period as well as an annual bonus based on sales volumes (the union estimated that such an annual bonus would provide approximately $800 per year to members of the bargaining unit).

During the first and second days of collective bargaining, the union and the company discussed all of the opening/initial collective bargaining proposals from both the TWU and Runnr. They arrived at agreement on collective agreement language relating to a range of issues including management rights, seniority, and health and safety. But many issues, including wages, remained unresolved.

During the third collective bargaining meeting between the union and the company, Runnr informed the TWU that it opposed the union's proposals in respect of both wages and the annual bonus. During all subsequent negotiation meetings, Runnr maintained this position but did not make a counter-offer on either wages or the bonus issue.

At the start of the eighth day of bargaining, which was held on September 18, Runnr's chief spokesperson made the following statement to the TWU bargaining committee: "The company has previously stated its opposition to the union's wage and bonus proposals. Today I am informing the union that Runnr Inc. will not agree to any wage increase greater than 1.75% annually over a two-year period. In addition, Runnr will not agree to provide a bonus based on sales volumes, but instead will agree to a one-time $150 bonus to be paid to all members of the bargaining unit upon ratification of a new collective agreement. Runnr considers discussions on these two items to be at an end - we will discuss them no further. Runnr is ready to continue bargaining on all other issues, but the wage increase proposed by the union and the bonus as proposed by the union would threaten both the company's profitability targets and its plans to invest those profits into new ventures and lines of business."

On October 25th, 2020, the TWU held a meeting via Zoom with the bargaining unit members to provide an update about collective bargaining.  Upon hearing about Runnr 's position on both pay increases and the annual bonus, many members became very angered.  One of the bargaining unit members made the following motion and called for a membership vote on it:

"We, the members of TWU Local 1234, request that the TWU file a bad-faith bargaining complaint against Runnr at the Ontario Labour Relations Board (OLRB) regarding its position on wage increases and bonuses. This complaint should seek as a remedy the requirement that Runnr be directed to continue bargaining over both the wage and bonus issues."

An overwhelming majority of bargaining unit members taking part in the meeting then voted in favour of this motion. The TWU then proceeded to file with the Ontario Labour Relations Board (OLRB) a complaint of bargaining in bad faith against Runnr that was based on the facts as outlined above.

Questions:

a) Explain the "duty to bargain in good faith"

b) Explain whether such a complaint filed at the OLRB by the TWU against Runnr would or would not be successful. Refer to the relevant facts in this case and apply clear reasoning in support of your position.