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Dessler, Cole, Goodman and Sutherland Fundamentals of Human Resources Management in Canada Chapter Twelve Labour Relations, Collective Bargaining, and.

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Presentation on theme: "Dessler, Cole, Goodman and Sutherland Fundamentals of Human Resources Management in Canada Chapter Twelve Labour Relations, Collective Bargaining, and."— Presentation transcript:

1 Dessler, Cole, Goodman and Sutherland Fundamentals of Human Resources Management in Canada Chapter Twelve Labour Relations, Collective Bargaining, and Contract Administration © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-1

2 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-2 Overview of Labour-Management Relations Labour-Management Relations –ongoing economic and social interaction between labour unions management Labour-Management Relations –ongoing economic and social interaction between labour unions management

3 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-3 Overview of Labour-Management Relations Labour Union (Union) –officially recognized association of employees: in similar trade employed in same company/industry –collective voice in dealings with management Labour Union (Union) –officially recognized association of employees: in similar trade employed in same company/industry –collective voice in dealings with management

4 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-4 Overview of Labour-Management Relations Union Acceptance Strategy –a labour relations strategy based on management’s view that the union is the legitimate representative of the firm’s employees Union Acceptance Strategy –a labour relations strategy based on management’s view that the union is the legitimate representative of the firm’s employees

5 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-5 Overview of Labour-Management Relations Union Avoidance Strategy –a labour relations strategy based on management’s preference to operate in a non-union environment Union Avoidance Strategy –a labour relations strategy based on management’s preference to operate in a non-union environment

6 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-6 Canada’s Labour Laws Provincial/Territorial Legislation— Commonalities (1 of 2) –certification procedures –minimum one year collective agreements –procedures preceding legal strike/lockout –no strikes/lockouts during life of contract –certification procedures –minimum one year collective agreements –procedures preceding legal strike/lockout –no strikes/lockouts during life of contract

7 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-7 Canada’s Labour Laws Provincial/Territorial Legislation— Commonalities (2 of 2) –interpretation disputes settle by binding arbitration –prohibition of unfair labour practices –labour relations boards to enforce legislation –interpretation disputes settle by binding arbitration –prohibition of unfair labour practices –labour relations boards to enforce legislation

8 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-8 Canada’s Labour Laws Unfair Labour Practices—Management (1 of 2) –interference with union activity by employees –participating in union activity –changing/threatening to change working conditions during: certification collective bargaining life of agreement –interference with union activity by employees –participating in union activity –changing/threatening to change working conditions during: certification collective bargaining life of agreement

9 © 2004 Pearson Education Canada Inc., Toronto, Ontario 12-9 Canada’s Labour Laws Unfair Labour Practices—Management (2 of 2) –refusing to bargain in good faith –penalizing employees for refusing to act as replacement workers –intimidating employees re union membership –refusing to bargain in good faith –penalizing employees for refusing to act as replacement workers –intimidating employees re union membership

10 © 2004 Pearson Education Canada Inc., Toronto, Ontario Canada’s Labour Laws Unfair Labour Practices –conducting union business on company time/ premises without employer consent –refusing to bargain in good faith -discrimination against union members on prohibited grounds -intimidating employees re union membership -failing to fairly represent all union members -threatening/authorizing unlawful strike –conducting union business on company time/ premises without employer consent –refusing to bargain in good faith -discrimination against union members on prohibited grounds -intimidating employees re union membership -failing to fairly represent all union members -threatening/authorizing unlawful strike

11 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Labour Movement in Canada Today Types of Unions Type of Worker Eligible for Membership –craft –industrial Type of Worker Eligible for Membership –craft –industrial Geographic Scope –international –national –local Geographic Scope –international –national –local Labour Congress Affiliation –CLC –CSN –AFL-CIO Labour Congress Affiliation –CLC –CSN –AFL-CIO

12 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Labour Movement in Canada Today Current Challenges 1. Global competition and technological change 2.Unionization of white-collar employees 3. Innovative workplace practices 1. Global competition and technological change 2.Unionization of white-collar employees 3. Innovative workplace practices

13 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step One—Employee’s Desire to Unionize Reasons for Desire to Unionize –job dissatisfaction –lack of job security –perceived inequities in pay –unfair administration of policies –lack of opportunity for advancement –lack of influence on work-related decisions –belief that unions can improve working conditions –job dissatisfaction –lack of job security –perceived inequities in pay –unfair administration of policies –lack of opportunity for advancement –lack of influence on work-related decisions –belief that unions can improve working conditions

14 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step Two—Union Organizing Campaign Step 5. Outcome Step 4. Organizing campaign The Union Organizing Process Step 3. Formation of in-house committee Step 2. Initial organization meeting Step 1. Employee-union contact

15 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step Two—Union Organizing Campaign Signs of Organizing Activity (1 of 2) –disappearance of employee lists/directories –increased inquiries about benefits, wages, etc. –questions on management’s opinion of unions –increase in number/nature of grievances –change in composition/size of informal employee groups –disappearance of employee lists/directories –increased inquiries about benefits, wages, etc. –questions on management’s opinion of unions –increase in number/nature of grievances –change in composition/size of informal employee groups

16 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step Two—Union Organizing Campaign Signs of Organizing Activity (2 of 2) –employee discussion of group meetings –sudden cessation of conversation when manager approaches –appearance of strangers in parking lot –sudden popularity of certain employees –distribution of cards or flyers –employee discussion of group meetings –sudden cessation of conversation when manager approaches –appearance of strangers in parking lot –sudden popularity of certain employees –distribution of cards or flyers

17 © 2004 Pearson Education Canada Inc., Toronto, Ontario Union Organizing and Recognition Employer Rights –express views on unions –state position on remaining non-union –prohibit union activity on company property/time –increase wages in normal course of business –gather employees to state company’s position if: purpose stated in advance attendance optional no threats/promises –express views on unions –state position on remaining non-union –prohibit union activity on company property/time –increase wages in normal course of business –gather employees to state company’s position if: purpose stated in advance attendance optional no threats/promises

18 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step Three—Union Recognition Process Union Recognition Voluntary Recognition –doesn’t require involvement of a 3 rd party Voluntary Recognition –doesn’t require involvement of a 3 rd party Regular Certification –automatic certification –representative vote Regular Certification –automatic certification –representative vote Prehearing Vote –in event of irregularities –intent: to engage support Prehearing Vote –in event of irregularities –intent: to engage support

19 © 2004 Pearson Education Canada Inc., Toronto, Ontario Termination of Bargaining Rights –termination of a voluntarily-recognized union –employee request for decertification –decertification due to fraud –union request for decertification –termination of a voluntarily-recognized union –employee request for decertification –decertification due to fraud –union request for decertification

20 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –surface bargaining –failing to make concessions/withdrawing previously granted concessions –failing to make reasonable proposals –imposing unreasonable conditions –surface bargaining –failing to make concessions/withdrawing previously granted concessions –failing to make reasonable proposals –imposing unreasonable conditions Violations of Good Faith Bargaining (1 of 2)

21 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –making unilateral changes in conditions –bypassing formal representatives –committing unfair labour practices during negotiations –failing to provide information –making unilateral changes in conditions –bypassing formal representatives –committing unfair labour practices during negotiations –failing to provide information Violations of Good Faith Bargaining (2 of 2)

22 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –review strategic plan –gather economic data –conduct wage/benefit surveys –analyze ability to pay –analyze other collective agreements –review strategic plan –gather economic data –conduct wage/benefit surveys –analyze ability to pay –analyze other collective agreements Preparation for Negotiations— Management (1 of 3)

23 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –obtain multi-employer coordination if required –obtain supervisory input –review existing contract/union promises –audit/analysis of grievances –canvass relevant arbitration award/LRB rulings –obtain multi-employer coordination if required –obtain supervisory input –review existing contract/union promises –audit/analysis of grievances –canvass relevant arbitration award/LRB rulings Preparation for Negotiations— Management (2 of 3)

24 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –costing –prepare bargaining plan/strategy/guidelines –establish bargaining team –contingency planning –establish communication strategy with senior management –costing –prepare bargaining plan/strategy/guidelines –establish bargaining team –contingency planning –establish communication strategy with senior management Preparation for Negotiations— Management (3 of 3)

25 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –review union policy objectives –gather economic data –gather data on bargaining trends/settlements –analyze employer’s finances –analyze other collective agreements –review union policy objectives –gather economic data –gather data on bargaining trends/settlements –analyze employer’s finances –analyze other collective agreements Preparation for Negotiations— Union (1 of 3)

26 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –obtain input from stewards and others –obtain input from membership –review existing contract/organizing promises –audit/analysis of grievances –gather data on bargaining unit members –obtain input from stewards and others –obtain input from membership –review existing contract/organizing promises –audit/analysis of grievances –gather data on bargaining unit members Preparation for Negotiations— Union (2 of 3)

27 © 2004 Pearson Education Canada Inc., Toronto, Ontario Collective Bargaining –costing –prepare bargaining plan/strategy –establish bargaining team –contingency planning –costing –prepare bargaining plan/strategy –establish bargaining team –contingency planning Preparation for Negotiations— Union (3 of 3)

28 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Collective Bargaining Process Distributive Bargaining Bargaining Zone Settlement Range UnionManagement Resistance Point Target Point Initial Point

29 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Collective Bargaining Process 1.Distributive bargaining 2.Integrative bargaining 3.Intra-organizational bargaining 1.Distributive bargaining 2.Integrative bargaining 3.Intra-organizational bargaining Negotiating

30 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Collective Bargaining Process Ratification –formal approval of agreement by union members –secret ballot Ratification –formal approval of agreement by union members –secret ballot

31 © 2004 Pearson Education Canada Inc., Toronto, Ontario Third Party Assistance and Bargaining Impasses Conciliation –assistance of neutral outside third party –required prior to strike/lockout Conciliation –assistance of neutral outside third party –required prior to strike/lockout Mediation –assistance of neutral outside third party –usually voluntary Mediation –assistance of neutral outside third party –usually voluntary

32 © 2004 Pearson Education Canada Inc., Toronto, Ontario Third Party Assistance and Bargaining Impasses Bargaining Impasses –strikes strike vote replacement workers boycott –lockout –interest arbitration Bargaining Impasses –strikes strike vote replacement workers boycott –lockout –interest arbitration

33 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Collective Agreement: Typical Provisions –union recognition –management rights –union security/check-off –no strikes or lockout –grievance procedures –arbitration –union recognition –management rights –union security/check-off –no strikes or lockout –grievance procedures –arbitration Clauses (1 of 2)

34 © 2004 Pearson Education Canada Inc., Toronto, Ontario The Collective Agreement: Typical Provisions –disciplinary procedures –compensation rates and benefits –hours of work and overtime pay –employee security/seniority –health and safety –contract expiration date –disciplinary procedures –compensation rates and benefits –hours of work and overtime pay –employee security/seniority –health and safety –contract expiration date Clauses (2 of 2)

35 © 2004 Pearson Education Canada Inc., Toronto, Ontario Step Five—Contract Administration –union and management must abide by contract –most labour-management relations in day-to-day contract administration –most provisions limit managerial actions –numerous grievances on seniority and discipline provisions –union and management must abide by contract –most labour-management relations in day-to-day contract administration –most provisions limit managerial actions –numerous grievances on seniority and discipline provisions

36 © 2004 Pearson Education Canada Inc., Toronto, Ontario Contract Administration –seniority refers to length of service in the bargaining unit –basis for transfer, layoff, promotion decisions when two candidates have relatively equal skill/ability –seniority refers to length of service in the bargaining unit –basis for transfer, layoff, promotion decisions when two candidates have relatively equal skill/ability Seniority

37 © 2004 Pearson Education Canada Inc., Toronto, Ontario Contract Administration –employee has right to grieve disciplinary action considered: too harsh without just cause –burden of proof on employer –precedents may be set when considering extenuating circumstances –employee has right to grieve disciplinary action considered: too harsh without just cause –burden of proof on employer –precedents may be set when considering extenuating circumstances Discipline

38 © 2004 Pearson Education Canada Inc., Toronto, Ontario Grievance Resolution and Rights Arbitration Grievance –written allegation of contract violation filed by: individual union members union management Grievance –written allegation of contract violation filed by: individual union members union management

39 © 2004 Pearson Education Canada Inc., Toronto, Ontario Grievance Resolution and Rights Arbitration –resolve issues unanticipated when bargaining –interpret contract language –provide communication device –satisfy political needs for union –bring attention to contract areas requiring clarification/modification –resolve issues unanticipated when bargaining –interpret contract language –provide communication device –satisfy political needs for union –bring attention to contract areas requiring clarification/modification Purpose of the Grievance Procedure

40 © 2004 Pearson Education Canada Inc., Toronto, Ontario Grievance Resolution and Rights Arbitration Stage 1. Employee gives written grievance to supervisor Stage 1. Employee gives written grievance to supervisor Typical Grievance Procedure Stage 2. Discussion by griever, HR, union steward Stage 3. Discussion by senior management and top union officials Stage 3. Discussion by senior management and top union officials Stage 4. Arbitration

41 © 2004 Pearson Education Canada Inc., Toronto, Ontario Grievance Resolution and Rights Arbitration –may stem from perceived injustice/hurt feelings rather than actual contract violations –can become vehicle for parties to test relative strength –political pressures may interfere –may stem from perceived injustice/hurt feelings rather than actual contract violations –can become vehicle for parties to test relative strength –political pressures may interfere Problems With Grievance Procedure

42 © 2004 Pearson Education Canada Inc., Toronto, Ontario Grievance Resolution and Rights Arbitration Rights Dispute –regards interpretation/application of collective agreement Rights Arbitration –arbitration of a rights dispute Rights Dispute –regards interpretation/application of collective agreement Rights Arbitration –arbitration of a rights dispute

43 © 2004 Pearson Education Canada Inc., Toronto, Ontario Impact of Unionization on HRM –organizational structure changes –management decision making changes –changes in formulation of policies/procedures –centralization of record keeping and standardization of decision making –changes in supervisory authority/responsibility –organizational structure changes –management decision making changes –changes in formulation of policies/procedures –centralization of record keeping and standardization of decision making –changes in supervisory authority/responsibility

44 © 2004 Pearson Education Canada Inc., Toronto, Ontario Building Effective Labour- Management Relations –institute open-door policy –extend courtesy of prior consultation –demonstrate genuine concern for employee well-being –form joint study committees –hold joint training programs –meet regularly –use third-party assistance –institute open-door policy –extend courtesy of prior consultation –demonstrate genuine concern for employee well-being –form joint study committees –hold joint training programs –meet regularly –use third-party assistance


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