Ontario coffee drinkers are rightfully dismayed that the owners of some Tim Hortons franchises have chosen to cut back on their workers’ benefits, paid breaks and even tips in response to the minimum wage increase to $14 an hour.
Ontario workers are right to be concerned that there is nothing illegal about the behaviour of Tim Hortons franchisees in reducing benefits and paid breaks. That’s because Tim Hortons employees do not have the benefit of an enforceable collective agreement — they largely work at the mercy of their employer.
If Tim’s workers did have a union, these cutbacks would, of course, be in violation of their union contract and the union would ensure Tim’s was prevented from making such miserly and unilateral cuts.
The reason Tim’s employees and so many other workers don’t have the benefit of a union contract is that Ontario’s labour laws make it virtually impossible for workers in franchise operations to join unions.
The recent package of labour law changes passed by the Wynne Liberals did some good things for Ontario workers — most notably it included a long overdue increase to the minimum wage. But it is unfortunate that the government did virtually nothing to provide service sector workers, like the thousands of Tim’s employees, with real access to unionization and collective bargaining.
Our current system of labour relations was designed in the 1930s and ’40s when workplaces were very different — and it is profoundly ill-suited to accommodate collective bargaining at thousands of retail franchises across the province. It is very difficult to generate any real bargaining power by trying to unionize one Tim’s store at a time — let alone trying to negotiate at one, or even five, Tim’s stores among the hundreds spread across Ontario.
As a result, the overwhelming majority of retail franchise workers in Ontario are not unionized. And it is not for a lack of trying, both by unions and workers. Many unions have organized Tim Hortons, McDonald’s and Starbucks franchises, for example. But those efforts have ultimately failed to create any real union density in the sector because labour laws remain stacked against Ontario’s most vulnerable workers.
The Ontario government promised its labour law reforms would address the challenges created by growing precarious employment in small workplaces. In reality, it has left vulnerable workers exposed to precisely the unfair treatment we are seeing today.
The government took no action even though its own task force — the Changing Workplaces Review — received numerous submissions from unions and other organizations calling for legislation to allow broader sectoral bargaining in Ontario, similar to laws found in some sectors in Quebec and across much of Europe.
The government’s own task force also concluded that the current system of bargaining with a single franchisee is “unlikely to be viable.” The task force recommended a small change that would have allowed bargaining with multiple franchisees of the same franchisor. Sadly, the government rejected even this modest proposal.
Finally, the Wynne government also rejected a proposal from the entire labour movement that workers in all sectors should have the opportunity to join a union without employer interference, by simply signing a union membership card. The government’s rejection of this proposal virtually assures Tim’s workers who want to join a union that they can expect to be subjected to a legal campaign of anti-union coercion and harassment by their employer.
Premier Wynne claims to have modernized labour laws to protect Ontario workers and grow the middle class. But simply increasing the minimum wage will not stem growing inequality.
History demonstrates that unionization and collective bargaining are the most important factors in reducing inequality and growing the middle class. On that score, the Ontario government has given retail workers less than half a cup of coffee.
Marty Warren is the Ontario Director of the United Steelworkers