CHAPTER 9: UNDERSTANDING LABOUR-MANAGEMENT RELATIONS

WHY DO WORKERS UNIONIZE? Labour Union: a group of individuals working together to achieve shared job-related goals; such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions Labour Relations: the overall process of dealing with employees who are represented by a union Collective Bargaining: the process by which union leaders and managers negotiate specific terms and conditions of employment for workers who are represented by unions Labour movement was born with the Industrial Revolution Workers were treated horribly before: long hours, no job security, low pay, no safety standards, etc Unions developed because they forced management to listen to the complaints of all their workers Power of union comes from collective action

THE DEVELOPMENT OF CANADIAN LABOUR UNIONS Earliest evidence of labour unions in Canada comes from the Maritime provinces early in the 19 Century First Canadian national labour organization was formed in 1873, the Canadian Labour Union st The growth of labour unions began early in the 21 Century as the concept of organized labour gradually came to be accepted
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UNIONISM TODAY Unions in Canada today face both opportunities and potentially serious threats This is evident when we look at trends in union membership, trends in union-management relations, trends in bargaining perspectives, and the future of unions

Trends in Union Membership: During the last 40 years, unions facing difficulties attracting new members Less than one-third of Canadian workers belong to unions Women are now an important part of the union movement represent about half of all union workers Highest rates of unionization are in Newfoundland (37.7%) and Quebec (37.5%) Lowest in Alberta (23.0%) and New Brunswick (26.4%) Public sector is more heavily unionized than private sector (72.7% to 18.1%) Two factors help explain the difficulties that unions have faced in recent years

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Composition of the Workforce Traditionally dominated by blue-collared white males; now it is increasingly composed of women and ethnic minorities Because these groups have much weaker traditions of union affiliation, their members are less likely to join unions when they enter the workforce In recent years, the workforce is increasingly employed in the service sector, which is traditionally been less heavily unionized Anti-Unionization Activities Employers becoming more aggressive in pursuing anti-unionization

Trends in Union-Management Relations: In some sectors, unions are now taking a much more conciliatory stance in their relations with management Increasingly, unions recognize that they dont have as much power as they once did so its better to work than go against management

Trends in Bargaining Perspectives: In the past, unions focused on increasing wages and benefits of workers they represented

Now they focus on job security since so many companies are outsourcing some of their production to foreign countries, cutting back jobs Unions have had limited success in achieving job security for their members Bargaining perspectives have also been influenced by organizational downsizing, low inflation, and the recession that began in 2008 These factors have made it difficult for unions to bargain for big wage increases for their members Most unions adopted the strategy of preserving what they had in the past Also focusing more on pension

The Future of Unions: Despite stagnant membership and loss of power, labour unions remain a significant factor in Canadian business Large independent unions can disrupt the Canadian economy by refusing to work The votes of large independent union members are still sought by politicians at all levels

The challenges facing unions are many: The continuing decline of the so-called smokestack industries (i.e. automobile manufacturing), where union power has traditionally been very strong Employment growth in service industries where union power has traditionally been weak Deregulation, which has led to many mergers and layoffs and to the emergence of new, non-unionized companies Free trade and the globalization of business, which has resulted in many jobs being moved to areas of the world with lower labour costs Technological change, which increase the difficulty of organizing workers and threatens existing unionized jobs The goal of unions is to create effective partnerships in which managers and workers share the same goals: profitability, growth, and effectiveness, with equitable rewards for everyone

THE LEGAL ENVIRONMENT FOR UNIONS IN CANADA In 1900, government passed the Conciliation Act, which was designed to help settle labour disputes through voluntary conciliation and was a first step in creating an environment more favourable to labour Industrial Disputes Investigation Act (1907): provided for compulsory investigation of labour disputes by a government-appointed board before a strike was allowed this act was later found to violate a fundamental provision of the British North America Act (BNA Act) Privy Council Order 1003 (1943): recognized the right of employees to bargain collectively, prohibited unfair labour practices on the part of management, established a labour board to certify bargaining authority, and prohibited strikes and lockouts except in the course of negotiating collective agreements Constitution Act (BNA Act 1867): divided authority over labour regulations between federal and provincial governments

Federal Legislation: The Canada Labour Code 1. 2. Canada Labour Code: legislation that applies to the labour practices of operating under the legislative authority of parliament The code is composed of three main sections Industrial Relations Deals with all matters related to collective bargaining Is subdivided into seven divisions Division I gives employees the right to join a trade union and gives employers the right to join an employers association Division II establishes the Canada Labour Relations Board, whose role is to make decisions on a number of important issues (e.g. certification of trade unions) Division III stipulated the procedures required to acquire or terminate bargaining rights Division IV establishes the rules and regulations that must be adhered to during bargaining; also presents guidelines for the content and interpretation of collective agreements Division V states the requirement that the Minister of Labour must appoint a conciliation officer of parties if the dispute cannot reach a collective agreement Division VI stipulated the conditions under which strikes and lockouts are permitted Division VII is a general conclusion that states methods that might be used to promote an industrial peace Occupational Health and Safety

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This section of the code describes the responsibilities of both employers and employees in maintaining a safe workplace Every person running a federal work project must do so in a way that will not endanger the health or safety of any employee Appropriate safety procedures and techniques must be implemented to reduce the risk of employment injury Compensation must be paid to employee even if he/she didnt exercise proper care This section also makes provisions for a safety officer duty is to ensure that the code is being honoured Standard Hours, Wages, Vacations, and Holidays This section contains 16 major divisions Covers non-managerial workers and deals with issues such as standard hours of work (8 per day, 40 per week), maximum hours of work per week (48), overtime pay (1.5 X regular pay), minimum wages, equal wages for men and women doing the same jobs, vacations, general holidays, sick leave, and maternity leave

Provincial Labour Legislation: 1. Each province has enacted legislation to deal with the personnel practices covered in the Canada Labour Code, which vary across provinces Each province also has a labour relations act The Ontario Labour Relations Act A trade union may apply at any time to the Ontario Labour Relations Board (OLRB) for certification as the sole bargaining agent for employees in a company The OLRB has the right to call for a more certification vote, with majority winning Following certification, union gives the employer written notification of its desire to bargain On request by either party, the minister of labour appoints a conciliation officer to confer with the parties and to help achieve a collective agreement Parties may jointly agree or submit unresolved differences to a voluntary binding arbitration; decision of arbitrator is final Employers are required to deduct union dues from the union members and remit these duties directly to the union Every agreement must include a mechanism for settling differences between the parties If a person objects to belonging to a labour union because of religious beliefs, he or she is allowed to make a contribution equal to the amount of the union dues to a charitable organization If trade union is unable to negotiate a collective agreement with management within one year of being certified, any of the employees in the union can apply to the OLRB for decertification of the union No employer can interfere with the formation of a union, but can express an opinion about it No employer shall refuse to employ an individual because he or she is a member of a trade union

UNION ORGANIZING STRATEGY Unions might try to organize workers when a firm is trying to move into a new geographical area, or when some workers in a firm are members and the union wants to represent other workers, or when it is attempting to outdo a rival union

Certifying a Union: An Example Bargaining Unit: individuals grouped together for the purpose of collective bargaining Professional and non-professional workers are generally not included in the same bargaining unit unless a majority of the professional employees wish to be included Certification Vote: a vote supervised by a government representative to determine whether a union will be certified as the sole bargaining agent for the unit Decertification: the process by which employees legally terminate their unions right to represent them

Types of Unions: Two basic types of unions are craft and industrial unions Craft Unions: unions organized by trades (plumbers, barbers); usually composed of skilled workers Restrict membership to workers with specific skills Members of craft unions can work for several different employers during the course of a year Have a lot of power over the supply of skilled workers because they have apprentice programs

Industrial Unions: unions organized by industry (steel, clothing, auto); usually composed of semi-skilled and unskilled workers Members typically work for a particular employer for much longer period of time than do craft union members An industrial union has a lot of say regarding pay and human resource practices in unionized firms Local Union (or local): the basic unit of a union organization Local of craft union is made up of artisans in the same craft in a relatively small geographical area Local of industrial union is made up of workers in a given industry or plant in a relatively small geographical area Functions of locals wary depending on governance arrangements and bargaining patterns in particular industries National Union: a union with members across Canada Independent Local Union: one not formally affiliated with any labour organization Conducts negotiations with management at a local level, and the collective agreement is binding at that location only

Union Security: Union Security: the means of ensuring the union`s continued existence and the maintenance of it membership so that it can continue to meet the criteria for certification Closed Shop: an employer can hire only union members greatest union security Union Shop: an employer can hire non-unionized workers, but they must join the union within a certain period Agency Shop: all employees for whom the union bargains must pay dues, but they are not required to join the union Open Shop: an employer may hire union or non-unionized workers

COLLECTIVE BARGAINING Is an ongoing process and includes all of the time spent on drafting the agreement before it is signed as well as all the time required to administer the contract after it has been signed

Reaching Agreement on the Contracts Terms: Collective bargaining process begins with the recognition of the union as the sole bargaining agent for its members Bargaining cycle begins when union leaders meet with management representatives to agree on a new contract

Contract Issues: 1. 2. Labour contract can address an array of different issues Mandatory items are matters over which both parties must negotiate if either wants to; includes wages, working hours, and benefits Permissive items may be negotiated if both parties agree Typical main issues during labour-management negotiations are compensations, benefits, and job security Compensation One aspect of compensation is current wages One common tool for securing wage increase is a cost-of-living adjustment (COLA) a contract clause specifying that wages will increase automatically with the rate of inflation Are now not as common as they used to be Wage Reopener Clauses: a contract clause that allows wage rates to be renegotiated at present times during the life of the contract Benefits Unions typically want employers to pay all or most of the costs of various kinds of insurance Other benefits commonly addressed during negotiations include retirement benefits, working conditions, and the cost of supplementary health care (prescription drugs, eye care, dental care, etc) Job security in some cases, demands for job security resulted in a promise by the company that it will not move to another location in others, a contract may dictate that if the workforce is reduced, seniority will be used to determine which employees keep their jobs due to recession, unions more focused on job security than raising wages unions are also concerned about preserving jobs since so many firms are outsourcing other Issues

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might include things like working hours, overtime policies, rest period arrangements, differential pay plans for shift employees, the use of temporary workers, grievance procedures, and allowable union activities (dues collection, union bulletin boards, and so on) management wants as much control as possible over hiring policies, work assignments, and so forth but unions often try to limit management rights by specifying hiring, assignment, and other policies

When Bargaining Fails: 1. a. impasse: occurs when, after a series of bargaining sessions, management and labour are unable to agree on a first-time contract or a contract to replace an agreement that is about to expire each side can employ several tactics to support its cause until the impasse is resolved Union Tactics Unions can take a variety of actions when their demands are not met Chief among these are strikes, picketing, boycotts, and slowdowns Strikes When employees temporarily walk off the job and refuse to work Strikes triggered by impasses over mandatory bargaining items are called economic strikes even if they occur over non-economic issues such as working hours Most strikes in Canada are economic strikes Workers are not paid during strike and business is usually unable to produce its normal range of products and services After a strike is over, employees may exhibit low morale, anger, increased absenteeism, and decreased productivity Not all strikes are legal if strikers dont go through the necessary steps prior to striking Sympathy Strikes (Secondary Strikes): when one union strikes in sympathy with strikes imitated by another labour organization Wildcat Strikes: strikes that are not authorized by the union and that occur during the life of a contract Unions dont use strikes that much anymore because most workers are in profit-sharing plans, so they lose money if they go on strike Also because unions dont have as much power as they used to, the bad publicity generated by strikes, and because of technology and globalization, companies can easily displace highly paid but low-skilled workers Picketing Involves having workers march at the entrance to the company with signs explaining their reasons for striking Boycotts Occurs when union members agree not to buy the product of the firm that employs them Workers may also urge other consumers to shun their firm`s products Work Slowdowns Workers perform their jobs at a much slower rate than normal Management Tactics Management can respond to an impasse using a variety of tactics, including lockouts, strike-breakers, plant closures, contracting out, and forming employers associations Lockouts Occur when employers physically deny employees access to the workplace Lockouts are illegal if they are used as an offensive weapon to give the firm an economic advantage in the bargaining process Strike-breakers Are temporary or permanent replacements of workers that are on strike Plant Closures Management may close down a plant if they cannot reach an agreement with the union Contracting Out Some firms contract out as a way to blunt the effect of the union

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Instead of doing all the assembly work they used to do themselves, many firms now contract out work to non-unionized contractors This lessens the impact the unions can have because it results in fewer union workers Employers Associations Are groups of companies that get together to plan strategies and exchange information about how to manage their relations with unions Especially important in industries that have many small firms and one large union that represents all workers Member firms sometimes contribute to a strike insurance fund to help members whose workers have struck out

Mediation and Arbitration: Labour and management can agree to call in a third party to help resolve dispute Mediation: a method of settling a contract dispute in which a neutral third party is asked to hear arguments from both the union and management and offer a suggested solution Voluntary Arbitration: a method of settling a contract dispute in which the union and management ask a neutral third party to hear their arguments and issue a binding resolution In some cases, arbitration is legally required to settle bargaining disputes Compulsory Arbitration: a method of settling a contract dispute in which the union and management are forced to explain their positions to a neutral third party who issues a binding resolution

Administering a Labour Agreement: Once labour agreement has been reached, its details are written down in the form of a contract that is legally enforceable in the courts Contracts always have precise wordings as to how the agreement will be enforced Some provisions are fairly simple but some are prone to misinterpretation and conflicting perceptions When differences of opinions rise over misinterpretation, union members take the complaint to the shop steward a regular employee who acts as a liaison between union members and supervisors Grievance: a complaint by a worker that a manager is violating the terms of the collective agreement Union generally promises not to strike over disputes about contract interpretation