Case Problem:
You are the manager of a large flower shop. Your employer, James, pays you a salary of $100,000 per year to manage the business, which includes some 15 employees, including 2 cleaners and 6 flower arrangers.
Two flower arrangers, Dan and Sam, have been pestering you for weeks about getting an increase in their hourly rate. You have repeatedly explained to Dan and Sam that you cannot agree to a pay rise without first speaking to James, and that as he is overseas, that will not happen until the end of the month. Dan and Sam are becoming increasingly frustrated with your refusal to consider their request. One Wednesday morning (the busiest day), Dan and Sam confront you and tell you that unless you agree to increase their hourly rate by $5 per hour, they are going to walk out with the 4 other flower arrangers, leaving you to fulfil the orders on your own. You have no choice but to agree to their request, as there are four wedding orders that must be done today. You promise to adjust their pay as requested. Once the day is finished, you sit down and consider the ramifications.
Question:
- Are you legally obliged to keep your promise? What are the legal remedies?
- If you did not agree to their terms, and they walked out, what would you have been able to do if the orders weren’t fulfilled and the business lost $10,000.00?