Timons Fisheries in South Harbour, Maine, has been the leading distributor of fish products in the Mid-Atlantic States for the past quarter of a century. Timmons is known for its fresh fish, its frozen fish products and its distribution of exotic fish. Until five years ago, Timmons had experienced continual growth. Although its packaging and distribution workers were unionized, Timmons had been more than willing to pass on to the workers part of the profit made. However, profits have not been very good lately. Consumer demand for Timmons’ breaded fish products have severely declined as the consumer has become more weight conscious. Losing its share of that market segment has meant a financial burden. To help alleviate the burden, Timmons management has turned to the union representatives, its workers, and has asked for givebacks in wages and benefits amounting to $2.50 per hour.
The union feels that the request is unreasonable and that the rank and file will strike if the issue is pressed. Timmons response is that if the cuts are not made-savings that would allow for retooling the production process to regain its market segment- the company will face bankruptcy. As one Timmons vice-president stated, "Two and half bucks less an hour is better than no pay at all. But those union folks cannot understand that".
Seemingly unable to compromise, the union members went on strike. After three months of striking, Timmons began to search for a new location and a new owner for the company. To avoid the impending doom, the rank and file voted for a new wage package that amounted to a $2.10 per-hour-cut. On Friday, the package was ratified, and the workers returned to work.
The following Monday, the newspaper headlines read: “Union Accepts Wage Cuts, Management Gives Itself a Raise.” In the evening newsstory, the president of Timmons explained that for five years while experiencing problems, no manager had been given a raise. To keep the managers from resigning, there were given an across-the-board raise. It had been planned before the strike, and “it’s just too bad that it coincided with the union’s wage cut.”
Questions
1. Do you believe the raise given to management was an unfair labor practice? An attempt to bust the union? Discuss.
2. What attempt do you believe this management action will have for the workers returning to work after a three-month strike? For the next negotiations?
3. Are the activities undertaken by management concerning management under the union’s scrutiny? Discuss.
4. If you were the president of Timmons, what would you have done? Discuss.