Gear Manufacturing Company carries on business in a part of a factory building in an industrial park

Gear Manufacturing Company carries on business in a part of a
factory building in an industrial park located at the outskirts of a large
municipality. The remainder of the building is leased by Gear Warehousing
Company, a wholly owned subsidiary of Gear Manufacturing Company. Gear
Warehousing Company is essentially the storage and marketing subsidiary of Gear
Manufacturing Company. It purchases and markets all standard types of gears
manufactured by the parent company, even though it is a separate entity. The
employees of Gear Manufacturing Company are represented by the Gear Makers’
Union.
»

Gear Manufacturing Company carries on business in a part of a
factory building in an industrial park located at the outskirts of a large
municipality. The remainder of the building is leased by Gear Warehousing
Company, a wholly owned subsidiary of Gear Manufacturing Company. Gear
Warehousing Company is essentially the storage and marketing subsidiary of Gear
Manufacturing Company. It purchases and markets all standard types of gears
manufactured by the parent company, even though it is a separate entity. The
employees of Gear Manufacturing Company are represented by the Gear Makers’
Union. In the previous year, the union negotiated a collective agreement that
expired some months ago. Collective bargaining took place before the expiry of
the old agreement, but Gear Manufacturing Company and the union could not agree
on the terms of a new collective agreement. They requested conciliation
services offered by the Ministry of Labour (which were required before a strike
or lockout could take place), but the services failed to produce an agreement.
Eventually, the employees went out on strike and set up picket lines at the
entrances of the plant of Gear Manufacturing Company. They also set up picket
lines at the entrance to Gear Warehousing Company to prevent the shipment of
goods from the warehouse. A few days later, the employees set up a picket line
at Transmission Manufacturing Company, an important customer of Gear
Warehousing Company, even though the company’s only connection with Gear
Manufacturing and Gear Warehousing was as a purchaser of Gear products. The
pickets prevented Transmission Manufacturing from shipping a large truckload of
transmissions to another manufacturer. As a result, the company suffered a loss
of $5,000 through its failure to make its delivery on time. Advise Gear
Warehousing Company and Transmission Manufacturing Company of their rights (if
any). Suggest a course of action that they might take.

»

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