walmart and the ufcw case study

Walmart Worker Protests Spread Globally

December 14, 2012 Updated: August 24, 2020

Workers in 10 Countries Call for an End to the Silencing of Workers at Walmart

OUR Walmart and Community Supporters Commit to Continued Protests in 2013 

Follow the conversation and see photos on Twitter: #WalmartStrikers and @ForRespect and @ChangeWalmart

At the protests across the globe, workers held a moment of silence to honor the victims of the factory fire in Bangladesh that tragically claimed the lives of 112 workers. Recent reports show that Walmart “played a leading role in blocking an effort” to improve electrical and fire safety systems in factories in the country.

“Walmart must stop its attempts to silence those who speak out.  We are standing up for what is right for our families and the global economy,” said Elaine Rozie, an OUR Walmart member from the Hialeah store in Miami Gardens, Fl.  Rozie is a seven-year associate who despite works full-time at Walmart still has to depend on public assistance to make ends meet. “As the largest retailer in the world, Walmart should be setting a standard for good, safe jobs. The benefits of having steady, well-trained workers in stores and along the supply chain will help Walmart improve customer service ratings and its reputation, which is good business.”

“We are inspired by OUR Walmart members who are standing up for a better future for all of our families,” said Louisa Plaatjies, a worker from South Africa. In October, workers from seven countries – where workers all have union representation – launched the UNI Walmart Global Union Alliance to fight for fairness, decent working conditions, and the fundamental human right of freedom of association.  “We are will continue to stand up with our brothers and sisters in the United States until Walmart starts listening to the workers that keep the store running.”

The global protests held today build on the ongoing calls for change at Walmart. In November, community members and Walmart workers held more than 1,000 demonstrations, including strikes in 100 cities, during the Black Friday shopping rush in protest of the company’s illegal attempts to silence workers for speaking out about the company’s manipulation of hours and benefits, efforts to try to keep people from working full-time and its discrimination against women and people of color.  The Black Friday strike wave came a little more than a month after OUR Walmart leaders held the first-ever strikes against the mega-retailer. In just one year, OUR Walmart has grown from a group of 100 Walmart workers to an army of thousands of Associates across 43 states.

“The Walmart workers may come from different cultures and continents but they are united in their opposition to Walmart’s cynical and systematic squeezing of its employees to maximize profit, be it the US dollar, the South African rand, the Indian rupee, the Argentine peso or any other currency,” said the International UNI Global Union General Secretary, Philip Jennings. “Walmart has gone too far. US Walmart workers have had enough and they are fighting back as we saw on Black Friday and every day since. The Alliance is standing with them not just in solidarity but in strength and in action.”

Workers like Jesus Vargas, who have been illegally fired, targeted by management or other retaliation for speaking out, are also raising their voices.  More than 30 federal charges against Walmart have already been filed, with another 60 allegations against Walmart’s illegal threats currently under investigation.

“Walmart, we will not be silenced,” Vargas said. Vargas, who was unjustly fired for speaking out at his store in California, has filed a federal charge against Walmart. “We are coming together to be heard and to create good jobs that workers in America and across the globe need.”

With so many Americans struggling to make ends meet and Walmart taking in $16 billion in profits and compensating its executives $10 million each, workers and community leaders have been calling on Walmart and Chairman Rob Walton to address the wage gap the company is creating.  At the same time frontline Walmart workers are facing financial hardships, the  Walton Family  – heirs to the Walmart fortune – are the richest family in the country with more wealth than the bottom 42% of American families combined.

Workers’ concerns about wages and staffing have been affirmed by newly  uncovered company pay-plans  exposed by the Huffington Post, recent poor sales reports and a new study on wage trends in the retail industry. Huffington Post uncovered what reporters call “a rigid pay structure for hourly employees that makes it difficult for most to rise much beyond poverty-level wages.”  Meanwhile, last week’s sales reports show that understaffing, which affects workers’ scheduling and take-home pay, is also having an impact on company sales. Last week’s sales report showed that Walmart’s comp store sales are about half what competitors like Target reported in the same quarter, continuing a pattern of underperformance by the world’s largest retailer.

As workers and community supporters call for changes at Walmart, a new report by the national public policy center Demos, shows that better jobs at Walmart and other large retailers would have an impact on our economy . A wage floor equivalent of $25,000 per year for a full-time, year-round employee for retailers with more than 1000 employees would lift 1.5 million retail workers and their families out of poverty or near poverty, add to economic growth, increase retail sales and create more than 100,000 new jobs. The findings in the study prove there is a flaw in the conventional thinking by companies like Walmart that profits, low prices, and decent wages cannot coexist.

Making Change at Walmart is a campaign challenging Walmart to help rebuild our economy and strengthen working families. Anchored by the United Food & Commercial Workers (UFCW), Making Change at Walmart is a coalition of Walmart associates, union members, small business owners, religious leaders, community organizations, women’s advocacy groups, multi-ethnic coalitions, elected officials and ordinary citizens who believe that changing Walmart is vital for the future of our country.

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“We Need People to Lean into the Future”

• Adi Ignatius

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

A conversation with Walmart CEO Doug McMillon

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

• Adi Ignatius is the editor in chief of Harvard Business Review.

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OUR Walmart Is the UFCW

The group that has led labor-related protests at Wal-Mart stores, Organization United for Respect at Walmart (OUR Walmart), is intimately tied to the United Food and Commercial Workers (UFCW), a labor union that has tried to organize workers at Wal-Mart to little success for years. OUR Walmart is simply the latest in a series of anti-Wal-Mart campaigns tied to UFCW that date back into the early 1990s if not before.

The first mention of OUR Walmart by the news media was a June 2011 article by New York Times labor correspondent Steven Greenhouse promoting the group’s debut. Probably not coincidentally, the last activity of the previous UFCW-backed protest front against Wal-Mart (Wake Up Walmart) was in late 2010.

OUR Walmart and the Department of Labor

According to the UFCW’s federal fiscal filings with the Department of Labor (Form LM-2) for 2011, OUR Walmart is a subsidiary of UFCW. The relevant disclosure reads:

The UFCW has a subsidiary organization maintained in Washington DC named the Organization United For Respect at Walmart whose purpose as stated in the by-laws will be the betterment of the conditions of the current and former associates at Wal-Mart Stores, Inc., within the meaning of Section 501(c)(5) of the Internal Revenue Code, and to make Wal-Mart a better corporate citizen. The financial transactions are included in the 12/31/11 filing of this LM2.

The same disclosure was made on the 2012 Form LM-2. According to Labor Department regulations, a “subsidiary organization” is:

Any separate organization of which the ownership is wholly vested in the reporting labor organization or its officers or its membership, which is governed or controlled by the officers, employees, or members of the reporting labor organization, and which is wholly financed by the reporting labor organization

Presuming OUR Walmart retains “subsidiary organization” status, the federal rules demonstrate that either all of OUR Walmart’s funding comes from the UFCW or that the initial financing came from UFCW. In either case, OUR Walmart is or was governed by the UFCW or its officials.

Additionally, OUR Walmart has partnered with a “separate” UFCW project, Making Change at Walmart (MCW). Many protest materials are co-branded with the OUR Walmart and MCW emblems, and OUR Walmart and MCW both engaged in protests at the 2013 Wal-Mart annual general meeting. In response to intimidatory picketing, Wal-Mart filed for restraining orders against the UFCW and OUR Walmart in Florida and Arkansas state courts. An order was granted by an Arkansas judge, and a case is pending before a Florida state court.

OUR Walmart has made efforts to obscure the links between itself and UFCW. In the run-up to the November 2012 demonstrations, The Wall Street Journal reported that “OUR Walmart […] said it is no longer a subsidiary of the UFCW.” A representative told the Journal : “OUR Walmart is an independent organization.” The UFCW’s LM-2, signed under penalty of perjury, indicates that is not the case under Department of Labor rules.

OUR Walmart and the National Labor Relations Board

OUR Walmart and the UFCW have run into issues with a National Labor Relations Act rule that limits “representational pickets” — picketing for the purposes of qualifying as a labor union — to thirty days unless a petition for representation is filed. When OUR Walmart threatened protests before Black Friday in 2012, Wal-Mart petitioned the National Labor Relations Board (which enforces the Act) to enjoin OUR Walmart and UFCW protests under this rule.

In response, the UFCW sent a letter to then-Acting General Counsel (essentially, chief prosecutor) of the NLRB Lafe Solomon disavowing the intent to organize Wal-Mart employees at this time. OUR Walmart and MCW websites and materials now convey the following disclaimer, pursuant to UFCW’s deal with Solomon:

Legal Disclaimer: UFCW and OUR Walmart have the purpose of helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards and their efforts to have Wal-Mart publically commit to adhering to labor rights and standards. UFCW and OUR Walmart have no intent to have Walmart recognize or bargain with UFCW or OUR Walmart as the representative of Walmart employees.

Prior to Wal-Mart’s complaint and UFCW’s settlement, the Making Change at Walmart website bore a “United Demands” statement that UFCW admitted endorsed a representational objective. UFCW removed the statement to avoid NLRB sanctions.

In large part because of this deal, the NLRB has not found OUR Walmart to qualify as a labor union and has not ruled the UFCW-led protests representational pickets. Curiously, legal filings by OUR Walmart and UFCW attorneys in state courts after the NLRB agreement was made refer to a potential representational objective remaining, likely to ensure OUR Walmart retains property access rights under federal labor laws exclusive to unions. In response to a civil trespassing charge in California, OUR Walmart’s and the UFCW’s attorneys admitted:

OUR Walmart is a labor organization but only insofar as it seeks to “deal with” Walmart within the meaning of the National Labor Relations Act and has received assistance from the UFCW.

It seems like OUR Walmart wants the privileges of a union without the rules and responsibilities. In that, it’s little different from its parent organization.

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Supreme Court of Canada

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The Ongoing Legal Battle Between Wal-Mart and the UFCW in Saskatchewan and Quebec

Background and start of the legal battle.

Wal-Mart and the UFCW case study only 4% final grade

in November 2003 Wal-Mart opened a new store in Weyburn,

Saskatchewan. Soon after the store opened employees contacted

the United Food and Commercial Workers Union (UFCW) seeking

union representation. In April of 2004 the union filed an application

with the Saskatchewan Labour Relations Board to represent the

store's employees. The union application to represent employees

is an application for certification and the details of this process are

referred to in Chapter 6. The application for certification was the

start of a legal battle that was ongoing in 2010.

The union sought an order from the Board to require Wal-Mart to

produce documents. It was alleged that Wal-Mart had provided

managers with materialsthat showed Wai-Mart was guilty of illegal

practices including "A Manager's Toolbox to Remain Union Free".

The Board ordered Wal- Mart to produce documentation and WalMart

appealed this decision. On the appeal a lower court judge

quashed the subpoena and in his decision appeared to suggest

that the Board was biased in favour of unions. Subsequently there

were numerous comments on the situation in the media some of

which were critical of the Labour Relations Board and the

provisions of the Trade Union Act that allowed a union to be

certified without an employee vote. There were calls for

amendments to the legislation and changes at the Board. Some

critics alleged that union contributions to the NDP party which was

in power at the time made change unlikely. The Court of Appeal

overturned the lower court decision and ordered Wai-Mart to

produce the documentation. The Court of Appeal also indicated

that the lower court's concerns regarding a possible bias in favour of unions by tl1e Labour Relations Board were unfounded. Wal

Mart attempted to appeal this decision to the Supreme Court of

Canada, and this further delayed the certification application. While

the Weyburn battle waged on, there w as a related development in

Quebec. In February 2005, Wal-Mart announced that it would

close a store in Jonquiere Quebec, which had been unionized for

four months. Labour activists claimed mat this closing was

intended to send a message to employees in Weyburn and

elsewhere in North America about the negative consequences of

seeking unionization. The president of the Saskatchewan

Federation of Labour referred to "economic terrorism" against

Canadian workers. In April 2005, one full year after the original

application for certification, the Supreme Court of Canada refused to grant Wal-Mart leave to appeal and tl1e certification process

Legal Challenges and Media Criticism

continued. Wal-Mart filed an application to block the Labour

Relations Board from hearing the application alleging the Board

was biased; however, a court decision rejected that application.

Through tilis process, a Wal-Mart website stated that the company

respects "the individual rights of our associates and encourage

them to express their ideas, comments and concerns. Because we

believe in maintaining an open environment of open

communications, we do not believe

mere is a need for third-party representation". Wal-Mart had some

supporters in the ongoing battle with the union. O ne newspaper

commentary provided as follows: "This province's unions are

aggressive by nature, helped along by labour laws that favour

unions far more than business, some- thing that has been used by

businesses as a clear illustration as to why companies avoid

coming to Saskatchewan ... Presumabl)' the union has jobs for the

approximately 3500 to 4000 employees who would be put out of

work if Wal-Mart ... walked. Wal-Mart is a huge player in

Saskatchewan. It provides hundreds of employees with jobs. It

pays taxes. It is possibly the most popular retail outfit in the

province. To lose something like that would be a major blow to the

province's economy and employment levels not to mention the

government's open for business slogan it shops around the

In a 2007 provincial election, the NDP government was defeated

by the Saskatchewan Party. In March of 2008 the new government ended the term of the chair of the Saskatchewan Labour Relations

Board who had been dealing with the UFCW certification

application. In May of 2008 amendments to the Trade Union A ct

that required a vote on certification applications came into effect.

The chair of the Board continued to deal with the Weyburn

application asserting that he had the authority to finish applications

started before his term was ended on tile basis of the law as it was

at the time of the application. In December of 2008 a certification

order was granted. In 2009 Wal-Mart challenged the certification in

court on the basis that the chair did not have jurisdiction and that

the amendments to the Trade Union Act required a vote. In June of

2009 a lower court overturned the certification. Subsequently the

union indicated that it would be appealing the decision. In July of

2009 Wai-Mart filed an application for a court injunction to restrict

the activity of a union website critical of the company. UFCW

Canada National President Wayne Hanley responded saying "

This injunction rec1uest is an over the top assault on effective freedom of speech . . . It's a kneejerk response by Walmart to the

idea of its employees trying to understand their options as workers,

and trying to share experiences with other 'associates'. Walmart's

response to the success of www.walmartworkerscanada.ca is

just another outrageous example of how tile largest retailer in the

history of the world will use its bottom less legal budget to

manipulate tile collective bargaining process and do just about

anything to discourage its 'associates' from joining the union."

1. Identify the employer's labour relations strategy, and explain

possible reasons for this strategy.

2. Outline the environmental factors referred to in Chapter 2

affecting this situation

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A Detailed Case Study on Largest Retail Giant Walmart

Avinash kumar mahato

Walmart is one of the largest retail companies in the world. It was founded in 1962 by Sam Walton. The headquarter of this company is situated in the United States. The main aim of the company is to provide consistent discounts, loyal customer service, and fast friendly service.

Walmart’s targets to expand its business in large cities as well as spread retail stores throughout the world. The retail stores of Walmart are divided into four divisions Walmart Supercenters , Discount Stores, Neighborhood Markets, and Sam’s Clubs warehouses. More than 100 million customers are visiting these Walmart Stores.

It is very uncomfortable for small merchants and communities in America. Walmart reaches their town and provides low-cost offers and the best customer service. It is a very bad condition for small merchants and businessmen in America. To downtown merchants, Walmart just comes and takes over all the small stores.

The purchasing power, aggressive marketing and provide low prices to the customer by Walmart, tend to pull out the business by the small merchants. Gradually the dream of Walmart company to become the largest retailer in the world is full filing day-by-day. But, they increase their business by the wrong actions and do not respect the culture or language of the communities.

Timeline Events Of Walmart company Business Model Of Walmart How Walmart Generates Revenue? Walmart’s Marketing Strategy Walmart’s - Flipkart Acquisition

Timeline Events Of Walmart company

The Timeline of events for Walmart company since its inception.

• 1960: Sam Walton opened his first discount store in Rogers, Arkansas.
• 1981: Walmart become the largest company in America .
• 1981: After becoming the largest company in America, they opened their stores in a small Louisiana town.
• 1983: Walmart opened its stores in Pawhuska and Oklahoma.
• 1986: Walmart claims that it can restore more than 4000 jobs to American Communities.
• 1989: They drive a campaign about Environmental awareness that Walmart is aware of land, water, and air.
• 1990: There are some activist groups against the expansion of Walmart’s store.
• 31st December 1990: Walmart’s closed its stores in  Louisiana.
• 5th November 1991: Walmart opened up its store in Lowa City.
• 6th October 1998: Walmart’s founder Sam Walton created a family charity named Walton Family Charitable Support Foundation.
• June 1999: Walmart takes over the ASDA Chain (a British supermarket chain), now they have stores and depots across the United States.
• 2001: Walmart becomes the world’s largest retailer, got huge sales of $191 billion.
• July 2003: Walmart opened its stores in Beijing and till now they have 22 stores in China and counting.
• 2006: Walmart closed its stores in Germany.
• July 2007: Walmart is operating more than 2500 retail units in Walmart International and more than 500,000 employers in some countries.
• 2007: By the ending of this year, they got a net $45 billion sales.
• 2008: Walmart’s opened its wholesale facility in India. This is the first step of Walmart's to sell products through its retail outlets in India.
• 2018: Walmart acquired Flipkart for $16 billion and owned 77% stake in India’s largest online retailer brand.

Business Model Of Walmart

There are different business models that are followed by successful companies which vary from time to time. The business model of Walmart is based to eliminate the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs. The main motive of Walmart's business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

The main marketing strategy of the company is based on leading on price, be competitive, and deliver a great experience by the motto of Everyday Lower price.

Walmart has three important segments.

Walmart U.S

Walmart U.S is operated in the U.S. They provide customers with products and services that are not present physically in stores. They provide their services via the website and mobile application . The website of Walmart company has a special feature that provides a third party to sell products. The company operates its business on various platforms like supermarkets, discount stores, neighborhood markets, and e-commerce websites .

Walmart International

Walmart International is also divided into three sections which are retailers, wholesalers, and other small projects. These sections are also divided into various sections such as supermarkets, warehouses, electronics, apparel stores , drug stores, digital retailers, and many more.

It is the online platform of Walmart’s company i.e., “ samsclub.com ”. This club is consists of memberships of the only warehouse retailer operations. This section includes warehouse clubs in the U.S, as well as samsclub.com.

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How Walmart Generates Revenue?

The Revenue Model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.

Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business. The two main sources of revenue are Product revenue and Service revenue .

Walmart's revenue in the fiscal year ending January, 2020 was $524 Billion.

Product Revenue

Walmart has a wide range of products in various categories:-

• In the grocery category, they have products like Daily needs products, dairy products, frozen foods, bakery, baby products, beauty aids, and many more.
• Health and wellness category have products like Pharmacy products and clinical services .
• The entertainment category has products like electronics products, toys, cameras, movies, music, videos, and books.
• Stationary, paints, and hardware, Automotive, sporting goods, crafts, and seasonal merchandise.
• Apparel categories include apparel for men, women, boys, girls, shoes, jewelry, and accessories.
• Home appliances include home furnishing services, home decor, livings, and horticulture.

Service Revenue

Walmart also provide services to generate revenue in various fields:-

• They provide financial services like prepaid cards , money orders, wire transfer, money transfers, bill payments, and so on.
• VUDU movie streaming services: This is a subscription-based OTT platform for buying and renting movies, watching TV shows on demand.
• Clinical Services include primary health care, Physical and Wellness checks, Clinical lab tests.
• Health Insurance services

Walmart’s Marketing Strategy

Walmart's Business Strategy Analysis is one of the most important parts of any business whether it is small or large. It is very important to make an effective marketing plan to survive in the market . Walmart uses the principle of business marketing penetration method which is used to capture the market by offering lower prices and competitive prices to the consumers.

The company follows cost leadership which makes a huge profit for the company. The company provide low prices to the consumer and treated all the customers as king of the market to maintain the relationship between Walmart and the customer.

According to Walmart, there are four factors that drive the customer’s choice of retailer:

• Assortment.

One more reason for the success of Walmart is purchasing products from local manufacturers in a bulk in one go and selling in small quantities. Buying from local manufacturers is the benefit for both. Buying more products from local manufacturers means they are creating more jobs and they reduce the unemployment rate. They should provide good quality products at a lower price to maintain a good relationship with customers and continue to get profits in business.

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Walmart’s - Flipkart Acquisition

Flipkart is one of the leading Indian e-commerce brands. In 2018, Walmart takes 77% stakes in India’s largest e-commerce company Flipkart and makes the world’s biggest purchase of an e-commerce company.

After this acquisition the future of eCommerce industry in India has become more competitive than ever.

The three main reasons for the acquisition of Flipkart are Flipkart’s leadership in some lucrative sections, its payment platform and the company’s talent pool.

Walmart’s world’s largest company is to continue to expand its business by improving its strategies day-by-day. The main reason for the success of Walmart is the EDLP system i.e., Everyday Low Price. They are working aggressively to maintain profits, market shares, and provide low prices to consumers. There are many business ideas to gain profit from a market. All depends on how you play the cards for a profitable business.

Walmart has made acquisitions of 28 organizations and has 16 sub-organization.

Feel free to reach us and share your understanding and views on the case study of Walmart. We would love to hear from you.

What is the business model of Walmart?

The business model of Walmart is based on eliminating the middleman from the distribution channels. The advantage of removing the middleman is to provide benefit to the consumer by providing products at lower costs.

What is the motive behind Walmart's Business Strategy?

The main motive of the Walmart business strategy company is to enter every segment of the market and dominate the market by providing products at a lower price.

What is Walmart's Market Strategy?

How does walmart generate revenue.

The earning model of Walmart deals with the principle of buying in bulk in one go. In this system, they got a huge discount from the manufacturers. Walmart’s generate its revenue by removing the middleman and selling their product directly to the customers and services to business.

What are the main sources of revenue for Walmart?

The two main sources of revenue are:

• Product revenue
• Service revenue

Is Walmart owned by China?

The Walmart branch in China is majority Chinese-owned. But predominantly it is owned by Sam Walton's many children.

Why is Walmart so cheap?

They sell in small quantities at low prices. By reducing the price they have high sales volume through which they have high earning.  Hence, by selling in high volume they can sell it at a cheap price and still gain profit.

What are the sub-organisations under Walmart?

There are 16 sub-organisations of Walmart. Some of them are:

• Walmart Labs
• Seiyu Group
• Walmart Canada

What are the top acquisitions of Walmart?

Walmart has acquired 28 companies. Some top acquisitions are:

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Wal-Mart and the UFCW case study

Wal-Mart and the UFCW case study only 4% final grade

in November 2003 Wal-Mart opened a new store in Weyburn,

Saskatchewan. Soon after the store opened employees contacted

the United Food and Commercial Workers Union (UFCW) seeking

union representation. In April of 2004 the union filed an application

with the Saskatchewan Labour Relations Board to represent the

store’s employees. The union application to represent employees

is an application for certification and the details of this process are

referred to in Chapter 6. The application for certification was the

start of a legal battle that was ongoing in 2010.

The union sought an order from the Board to require Wal-Mart to

produce documents. It was alleged that Wal-Mart had provided

managers with materialsthat showed Wai-Mart was guilty of illegal

practices including “A Manager’s Toolbox to Remain Union Free”.

The Board ordered Wal- Mart to produce documentation and WalMart

appealed this decision. On the appeal a lower court judge

quashed the subpoena and in his decision appeared to suggest

that the Board was biased in favour of unions. Subsequently there

were numerous comments on the situation in the media some of

which were critical of the Labour Relations Board and the

provisions of the Trade Union Act that allowed a union to be

certified without an employee vote. There were calls for

amendments to the legislation and changes at the Board. Some

critics alleged that union contributions to the NDP party which was

in power at the time made change unlikely. The Court of Appeal

overturned the lower court decision and ordered Wai-Mart to

produce the documentation. The Court of Appeal also indicated

that the lower court’s concerns regarding a possible bias in favour of unions by tl1e Labour Relations Board were unfounded. Wal

Mart attempted to appeal this decision to the Supreme Court of

Canada, and this further delayed the certification application. While

the Weyburn battle waged on, there w as a related development in

Quebec. In February 2005, Wal-Mart announced that it would

close a store in Jonquiere Quebec, which had been unionized for

four months. Labour activists claimed mat this closing was

intended to send a message to employees in Weyburn and

elsewhere in North America about the negative consequences of

seeking unionization. The president of the Saskatchewan

Federation of Labour referred to “economic terrorism” against

Canadian workers. In April 2005, one full year after the original

application for certification, the Supreme Court of Canada refused to grant Wal-Mart leave to appeal and tl1e certification process

continued. Wal-Mart filed an application to block the Labour

Relations Board from hearing the application alleging the Board

was biased; however, a court decision rejected that application.

Through tilis process, a Wal-Mart website stated that the company

respects “the individual rights of our associates and encourage

them to express their ideas, comments and concerns. Because we

believe in maintaining an open environment of open

communications, we do not believe

mere is a need for third-party representation”. Wal-Mart had some

supporters in the ongoing battle with the union. O ne newspaper

commentary provided as follows: “This province’s unions are

aggressive by nature, helped along by labour laws that favour

unions far more than business, some- thing that has been used by

businesses as a clear illustration as to why companies avoid

coming to Saskatchewan … Presumabl)’ the union has jobs for the

approximately 3500 to 4000 employees who would be put out of

work if Wal-Mart … walked. Wal-Mart is a huge player in

Saskatchewan. It provides hundreds of employees with jobs. It

pays taxes. It is possibly the most popular retail outfit in the

province. To lose something like that would be a major blow to the

province’s economy and employment levels not to mention the

government’s open for business slogan it shops around the

country.”

In a 2007 provincial election, the NDP government was defeated

by the Saskatchewan Party. In March of 2008 the new government ended the term of the chair of the Saskatchewan Labour Relations

Board who had been dealing with the UFCW certification

application. In May of 2008 amendments to the Trade Union A ct

that required a vote on certification applications came into effect.

The chair of the Board continued to deal with the Weyburn

application asserting that he had the authority to finish applications

started before his term was ended on tile basis of the law as it was

at the time of the application. In December of 2008 a certification

order was granted. In 2009 Wal-Mart challenged the certification in

court on the basis that the chair did not have jurisdiction and that

the amendments to the Trade Union Act required a vote. In June of

2009 a lower court overturned the certification. Subsequently the

union indicated that it would be appealing the decision. In July of

2009 Wai-Mart filed an application for a court injunction to restrict

the activity of a union website critical of the company. UFCW

Canada National President Wayne Hanley responded saying “

This injunction rec1uest is an over the top assault on effective freedom of speech . . . It’s a kneejerk response by Walmart to the

idea of its employees trying to understand their options as workers,

and trying to share experiences with other ‘associates’. Walmart’s

response to the success of www.walmartworkerscanada.ca is

just another outrageous example of how tile largest retailer in the

history of the world will use its bottom less legal budget to

manipulate tile collective bargaining process and do just about

anything to discourage its ‘associates’ from joining the union.”

• Identify the employer’s labour relations strategy, and explain

possible reasons for this strategy.

• Outline the environmental factors referred to in Chapter 2

affecting this situation