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FAST FOOD: Franchise workers prove slow to join unions
Financial Times, August 13

McDonald's thwarts an attempt by employees to organise - but only by
treating them better, reports Edward Alden

Tessa Lowinger, 17, says she and her co-workers organised the first union
to win certification at a McDonald's restaurant in North America for a
simple reason: they were tired of getting yelled at by their managers.

One year later, they aren't getting yelled at any more. But they don't
have a union either.

By a vote of 45 to 26, employees at the McDonald's franchise in Squamish,
a bustling fast food stop on the road between Vancouver and the
internationally famous Whistler ski resort, decided last month to leave
the Canadian Auto Workers' union.

The vote, taken before a first contract could be negotiated, ended the
most ambitious effort yet by a union in North America to gain a toehold
at one of the world's largest employers.

The failure says a lot about the immense difficulty the labour movement
faces in organising the growing number of service sector workers, and
about the increasingly sophisticated tactics companies are using to keep
the unions out.

If McDonald's is to succumb to organised labour anywhere on the
continent, it would most likely be in British Columbia, which has a
social democratic government and laws that are friendly to union
organising. The Canadian Auto Workers, Canada's largest private-sector
union, has ambitiously targeted low-paid service workers and scored some
significant successes, including several outlets of Starbucks, the coffee
chain, and Kentucky Fried Chicken, the fast-food empire.

But the union admits that McDonald's was a more ambitious target. "This
was not about the CAW setting out to organise McDonald's," says Denise
Kellahan, president of the union local. "We were responding to a call for
help from the employees. We told them it was going to be tough."

>From the day the union was certified last August, the clock started
ticking. Under the labour laws, the union has a 10-month grace period
after the initial certification. After that, employees who are not happy
with the union can request a decertification vote.

Ms Kellahan claims: "From day one McDonald's used every legal manoeuvre
they could think of to stall negotiations." The franchise went before the
Labour Relations Board, the quasi-governmental body that adjudicates
union disputes, with a variety of challenges to the certification.

The company argued that, because many of the workers were under the legal
voting age of 18, they needed parental consent to join the union. That
was rejected. After a strike vote last December, McDonald's went to the
board charging that the employees had been misled by the union during the
vote. When that was turned down, the decision was appealed against.

Despite the delays, a board-appointed mediator recommended a settlement
providing for a modest 10 to 15 cent an hour raise on wages that are at
or near the provincial minimum of C$7.15 (US$4.76), as well as basic
seniority rights and grievance procedures. McDonald's rejected the
contract, saying it would be too costly. Before an arbitrator could rule,
however, the 10-month period expired.

The legal costs of the protracted defence have not been disclosed, but it
was "well into six figures", said one board insider.

The owner of the McDonald's franchise, Paul Savage, did not return calls,
and his lawyer refused to comment.

It is clear, however, that the union had tenuous support to begin with.
Many workers felt that in exchange for a small raise, they were going to
be saddled with seniority rules that would hurt younger part-time workers
and they would have to pay union dues from their salaries.

Also complicating the union's cause was the extraordinarily high turnover
at the franchise, typical of many fast-food outlets that rely mostly on
high-school or college students.

McDonald's approach, however, appears to have been direct: the franchise
simply started treating its employees better.

Ms Lowinger, one of the original organisers, says the workplace has
become entirely different since the union drive. Several new managers
were hired, nobody is yelled at any more and various safety concerns have
been resolved.

McDonald's is certainly not the first employer to sweeten confrontation
with co-optation. After a dozen Starbucks outlets were organised in
British Columbia and a first contract negotiated, the Seattle-based
company promptly gave the same wage increases and benefits to all its
employees in the province. None has since opted for the union.

But Ms Lowinger, who is leaving McDonald's to go to college, wonders how
long the new spirit will last.

"The new employees see what it is now, what the union has made it, which
is a good workplace," she says. "All we can do is hope it stays that
way."
end

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