Transcript Ch 9 - Labour Relations

CHAPTER 9
Understanding LabourManagement Relations
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
9-2
Learning Objectives
Explain why workers unionize into labour unions
Trace the evolution of unions and
discuss trends in unionism in Canada
Describe the major laws governing
labour-management relations in Canada
Describe the union certification and
decertification processes
Identify the steps in the collective bargaining process
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Labour Unions
Groups of individuals working together to
achieve job-related goals
higher pay
reasonable work hours
better working conditions
better job security
benefits
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Collective Bargaining
A process through which union leaders and
management personnel negotiate common terms
and conditions of employment
Union power is achieved through group action
enabled by the collective bargaining process
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Copyright © 2008 Pearson Education Canada
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The Development of
Canadian Labour Unions
1827-1870: small unions of crafts people emerged
1873: national labour organization formed - “Canadian
Labour Union”
1886: Canadian Trades and Labour Congress (TLC)
1908: Canadian Federation of Labour (CFL)
1940: Canadian Congress of Labour (CCL)
1956: Canadian Labour Congress (CLC)
 80% of all unionized workers (merger of CCL & TLC)
1985: United Auto Workers of Canada (UAWC)
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Trends in Union Membership
Unions are experiencing difficulties in attracting new
members
Union membership as a percentage of the total workforce is
declining (less than one-third)
Diversity in the workforce consists of
non-traditional members of a union
 women, ethnic minorities
Employers are engaging in more anti-union activities,
including more employee-friendly workplaces
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Unionism Today
Unions today emphasize
 job security
 gaining or maintaining benefits
Unions must co-operate with employers to
ensure survival of unions and companies
Perhaps unionism will increase to help young
people avoid being stuck in low-wage jobs
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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The Legal Environment for
Unions in Canada
1900: Conciliation Act
1907: Industrial Disputes Investigation Act
1943: Privy Council Order 1003
1867: Constitution Act
The Canada Labour Code
Canada Industrial Relations Regulations of the
Canada Labour Code
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Canadian Labour Code
Labour legislation for firms operating under
parliamentary authority
(federal jurisdiction according to the Constitution Act)
 fair employment practices
 wages and work hours
 vacations and holidays
 maternity benefits and sick leave
 employee safety
 job and income security
 industrial relations regulations
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Canada Industrial Relations Regulations
1. Right to join a trade union
2. Canada Labour Relations Board (certification
procedures)
3. Acquisition or termination of bargaining rights
4. Bargaining and Agreement rules
5. Conciliation officer appointment
6. Conditions for legal strike or lockout
7. Methods to promote peace
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Provincial Labour Legislation
Labour legislation for firms operating under
provincial authority
 Similar to Canada Labour Code
 Laws vary across provinces
 Laws are frequently revised
Administering labour relations is
complex and time-consuming
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Certifying a Union
Determine and seek government approval
The nature of the bargaining unit employees
Certification vote
 supervised by a
government representative
to determine whether
the union can be certified,
and therefore, legitimately exist
Decertification
 The process by which employees
terminate their union’s right to represent them
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Craft Unions
Craft: organized by trades (skilled workers)
 Plumbers, electricians, carpenters, pilots, etc.
Organized by skill, not by industry
Members may work for many employers on a
contractual basis throughout one year
Usually require an apprenticeship (training)
program of all new members
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Industrial Union
Organized by industry, not skill
steel, auto, truck drivers, etc.
May include workers with different skills
and skill levels
Often work for a single employer
for a long period of time
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Copyright © 2008 Pearson Education Canada
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Local Union
Basic union organization
Focused on a small geographic area
All are members of the same craft or industrial union
May make up the union in a single organization
Powers of locals vary and may include
 collective bargaining on behalf of members
 disciplining members who violate contract standards
 handling employee grievances with management
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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National and International Unions
National unions have members across
Canada
Canadian Union of Public Employees (CUPE)
National Railway Union (NRU)
Canadian Airline Pilots Union (CAPU)
International unions have members in
more than one country
 United Steelworkers of America (USWA)
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Copyright © 2008 Pearson Education Canada
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Independent Local Union
Not formally affiliated with any labour
organization
Conducts negotiations with management
at a local level
Collective Agreement is binding only at
the local level
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Union Security
The maintenance of a union’s membership so
that it continues to meet the criteria for
certification
An absolute majority of workers in the workplace
is required for certification
If membership falls below a majority, the union
can be decertified
 loss of legal right to represent employees
More difficult during tough economic times
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Closed Shop
Employer can hire only unionized workers
All workers are members of the union and
therefore pay union dues
Common in craft trades, such as
building/electrical contractors
Provides the most security for
union membership
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Union Shop
Employer may hire unionized or nonunionized employees
New workers must join the union within a
specified period of time
Time period is usually 30 days
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Agency Shop
An employee need not join the union
Rand Formula
All employees who benefit from union
negotiations are required to pay dues to the
union whether or not they are a member
Applies to all unions certified
under the Quebec Labour Code
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Open Shop
An employer may hire union or non-union
employees
Employees not required to join the union
Employees not required to pay union dues
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Copyright © 2008 Pearson Education Canada
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Collective Bargaining
The bargaining cycle begins when representatives from the
union and management get together to negotiate a contract
A “bargaining zone” is reached, which is a reasonable range
of options acceptable to the parties
a ratification vote
is taken to accept or reject
a tentative agreement
If accepted,
the contract is signed
and becomes the
Collective Agreement
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
If rejected,
management and union
resort to different
tactics to influence
the process
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The Bargaining Zone
Union’s demands
Employer’s
maximum limit
Union’s
expectations
Bargaining
Zone
Union’s
minimum limit
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Employer’s
expectations
Employer’s
desired result
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Contract Issues
Mandatory items
Compensation
cost-of-living adjustment (COLA)
wage reopener clause
Benefits
Working hours
Permissive items
Job security
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Union Tactics
Strike
withdraw labour services
Picket
members may picket the company and have
large signs at the company entrance
Boycott
members refuse to buy products produced by
their firm, and may lobby others to do the
same
Slowdown
workers perform their jobs at a slower pace,
limiting production
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Strikes
Economic strike occurs when there is an
impasse over mandatory bargaining items
worker’s not paid
try to convince public company unfair
Some strikes are illegal
 sympathy strikes
 one union strikes in sympathy with another union
 wildcat strike
 unauthorized by union, contract still in place
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Management Tactics
Lockout
employees are not permitted
on the premises to do their jobs
Hire strike-breakers
employees that cross picket lines to work for
management (often called “scabs”)
Plant Closures
Contracting Out
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Conflict Resolution Methods
Mediation
 appoint a neutral third-party to hear and advise
 has no legal authority to enforce the recommendation
Arbitration
 appoint a third-party to devise and impose a solution
 has legal authority to do so
 may be voluntary or compulsory
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada
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Contract Administration
Both parties must adhere to the specifications of
the Collective Agreement
Differences of opinion taken to a shop steward
 liaison between union members and supervisors
If an employee feels that his/her rights have been
violated, the employee may file a grievance
Grievance
 a complaint on the part of the union
that management is
violating the Collective Agreement
Business, Sixth Canadian Edition, by Griffin, Ebert, and Starke
Copyright © 2008 Pearson Education Canada