Weekend Reads Patrons boycott Tim's over employee treatment

04:31  10 january  2018
04:31  10 january  2018 Source:   MSN

Tims customers fight cutbacks at rallies

  Tims customers fight cutbacks at rallies TORONTO - Protesters who rallied outside Tim Hortons locations across Ontario on Wednesday roasted some franchisees for slashing workers' benefits and breaks in an effort to compensate for the province's minimum wage hike, but many said their gripes would not derail their daily coffee runs. Those who gathered said they were worried staff would be negatively impacted if they boycotted to spite the small handful of franchisees — not necessarily the 16 locations that were targeted — who demanded workers cover a larger share of their dental and health-care benefits and take unpaid breaks to offset the 20 per cent raise to $14 an hour.

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a sign on the side of a building: <span style=The protest comes after some Ontario Tim Hortons franchisees eliminated paid breaks, fully-covered health and dental plans, and/or other perks for their workers." src="/upload/images/real/2018/01/10/a-sign-on-the-side-of-a-building-span-style-font-size-13px-the-protest-comes-after-some-ontario-tim-_902506_.jpg" />© Provided by thecanadianpress.comThe protest comes after some Ontario Tim Hortons franchisees eliminated paid breaks, fully-covered health and dental plans, and/or other perks for their workers.

VANCOUVER - Niki Lundquist loves the Earl Grey tea at Tim Hortons so much it's become a running joke in her Toronto office.

"No one has ever seen me without a Tim Hortons cup in my hand," said the in-house trade union counsel.

But now she's one of many people denouncing the coffee-and-doughnut chain and participating in a boycott until some Ontario franchisees and their corporate parent, Restaurant Brands International, come up with a different solution to offset the province's minimum wage hike than clawing back employee benefits.

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A social media movement is encouraging people to join "No Timmies Tuesday" on Jan. 9 and instead visit independent coffee shops.

The protest comes after some Ontario Tim Hortons franchisees eliminated paid breaks, fully-covered health and dental plans, and/or other perks for their workers to help their businesses absorb the 20 per cent jump from an $11.60 hourly minimum wage to $14 at the start of the month. Those changes came to light after a letter from the owners of two Cobourg, Ont., franchisees — the married children of the chain's co-founders — circulated on social media.

Since then, concerned consumers are taking to social media and encourage others to #BoycottTimHortons to put pressure on the chain to reverse the changes. However, the company and its franchisees are blaming each other for the decision, a blowout that could turn a local story with a small protest into a national tale and public relations disaster.

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After seeing the letter, Lundquist went into her usual Tim Hortons in Whitby, Ont., to ask whether they made similar cutbacks. She said she decided to stop frequenting it after an employee reluctantly told her they were no longer paid for breaks. Employees at the other three Tim Hortons on her commute into work told her they were instructed not to speak about it, she said, so she inferred similar changes were afoot and gave up her Tim Hortons teas.

Alan Harris decided to stop his near daily pre-work Tim Hortons stop for an extra-large coffee and old-fashioned plain doughnut in Windsor, Ont. in a gesture of solidarity.

Harris works in retail and saw his pay increase to the new minimum wage this year.

"I can deeply understand what it means to live paycheque to paycheque," he said. Harris wants the boycott to put pressure on the corporation and franchisees to reintroduce the scaled-back benefits.

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But who should take responsibility for that is at the heart of the latest round of finger-pointing in an ongoing blame game between some franchisees and their corporate parent. They have publicly sparred over alleged mismanagement and filed several lawsuits against each other in recent months.

Tim Hortons says individual franchisees are responsible for setting employee wages and benefits, while complying with applicable laws. But some franchisees argue the corporation — which controls prices — should help owners grappling with the mandated wage hike.

The Great White North Franchisee Association, which represents half of Canadian Tim Hortons franchisees, has said it hoped RBI would lower supply costs, reduce couponing or raise prices. When it did not, the association said, many franchisees were "left no alternative but to implement cost saving measures in order to survive."

Tim Hortons fired back, saying such cuts "do not reflect the values of our brand, the views of our company, or the views of the overwhelming majority" of restaurant owners. The chain called the cuts reckless and completely unacceptable, adding staff "should never be used to further an agenda or be treated as just an 'expense.'"

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Tim Hortons and the association have declined interview requests, and did not immediately respond to questions about the boycott.

It's unlikely the boycott will gain much traction beyond small communities where the local Tim Hortons employees are affected, and have much impact on the chain, said David Soberman, a marketing professor at the University of Toronto's Rotman School of Management.

But he wonders whether it's a good idea for the corporation and some franchisees to be airing their dirty laundry so publicly.

"Where do you go from here?" he asked, acknowledging that such disputes are usually better resolved in private negotiations and these strong public stances could change consumers' perception of Tim Hortons as a positive brand in Canada.

It doesn't matter to Harris and Lundquist which party makes a change, so long as it happens — even if that results in a price increase for their future orders.

"I'm far better positioned to absorb an increased cost than the workers are to lose that kind of benefit," Lundquist said.

Follow @AleksSagan on Twitter.

By the numbers: How much will the minimum wage hike cost Tim Hortons? .
The Great White North Franchisee Association says the minimum wage increase will cost the average Tim Hortons franchise $243,889.10 a year Here’s a closer look at the numbers provided by the association, which says on its website it represents 50 per cent of the Tim Hortons chain in Canada. The figure is based on a minimum wage increase of $2.40 an hour The calculation assumes the $2.40 increase will be applied to every worker’s salary. Only employees who were making the previous minimum wage, $11.60 an hour, are legally entitled to the new rate, $14. Some businesses have said the higher rate will inflate their entire payroll because they want to maintain pay differentials between newer hires and more senior staff. The $2.40 rate is bumped up to $3.35 an hour when other costs are factored in. GWNFA says this figure includes Canadian Pension Plan, Employment Insurance, Employee Health tax, workers’ compensation premiums, training costs, sick leave, and increased vacation pay. Increased vacation pay introduced by Bill 148 will only impact workers who have been with a company for five years or more. They will now be entitled to three weeks leave. Average number of employees at a Tim Hortons store: 35 Average increased cost for one full-time employee: $6,968.26 Divided by the hourly cost increase (of $3.35) per employee and a 52-week year, this figure suggests Tim Hortons employees work a 40-hour week.

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