Case: Wage and Stonewall Industries Limited

1670 Words Aug 24th, 2013 7 Pages
HRM822
Strategic Human Resources Planning

Case Study( This case is fictional.
© 2009 Seneca College)
Stonewall Industries Limited by Charles Purchase

Read the following case study carefully.
· The case study will form the basis of three individual assignments that are to be completed at various points in the course.
· For all responses to each assignment, provide the rationale for your answers and any assumptions that you are making.
· Before you begin, ensure that you have followed the General Instructions for Assignments, and reviewed the Criteria for Written Assignments.
· Consult the Timeline for the due date for each assignment.

Stonewall Industries Limited is a construction materials company with its Canadian head office located
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Except for one major work stoppage in 1980, there has been relative labour peace in most Stonewall plants throughout their history. The company tends to pay the highest rates in the industry and Judy Byer is an extremely effective labour relations executive. Wage rates tend to increase about 2 to 3 percent per year.

In 1982, Stonewall employed 135 executives, management and staff at Corporate Office in Mississauga, 20 managers and 200 unionized employees at the Mississauga gypsum plant; 15 managers and 150 employees at the Plastics Division; 10 managers of 100 employees in Montreal; 10 managers and 110 employees in Winnipeg; 25 managers and 275 employees in Calgary; and 8 managers and 83 employees in Vancouver. 50 employees worked in the mines. The total workforce was 1191. The workforce remained stable from the early years of the company’s operations until 1981.

The situation in 1981

In 1981, labour costs in the plants, which made up approximately 25% of total cost of production in each plant, with the exception of Vancouver, were as follows:

AWHR: Average Hourly Wage Rate
TBR Total Benefit Rate (Includes Benefit Costs, Vacation and Stat Holiday Pay)
TCR: Total Compensation Rate

|Mississauga|Montreal|Winnipeg|Calgary|Vancouver|
AHWR|10.80|9.18|9.18|9.72|12.96|
TBR |2.70|2.29|2.29|2.43|3.24|
TCR|13.50|11.47|11.47|12.15|16.20|

Plastics
AHWR|11.88|
TBR|2.97|
TCR|14.85|

While the labour relations climate within the plants could be described