1. Labour Unions

2. What is it?
An organization of workers that collectively promotes the interest of its member and negotiates with employers.
Does much more than affect wage rates
Have been shaping labour relations, laws, and working conditions in Canada for over 150 years

3. Three Common Types Trade Unions (Craft Unions) Industrial Unions
Public Sector Unions

4. Trade Unions
Represent workers in a single occupation regardless of where they work.
Ex. International Brotherhood of Electrical Workers.
Very common in construction industry.

5. Industrial Unions
Represent all workers in a given industry regardless of the job that they perform
Ex. Canadian Auto Workers union (CAW)
Represent workers in the automobile industry whether they are on the assembly line or maintenance workers.

6. Public Sector Unions
Represent workers who are employed by any of the levels of government in Canada.
Ex. Public Service Alliance of Canada (PSAC)
Canadian Union of Public Employees (CUPE)

7. Union Membership The “Local” – the local branch of the union.
Join the union through the local
Pay union dues to the local (local keeps small portion)
Members vote for officers of the local
Local officers conduct negotiations between workers and employers
SMALL PART OF THE UNION BUT IMPORTANT!

8. Collective Bargaining
The negotiation between representatives of workers and employers with the purpose of establishing terms and conditions of employment that are acceptable to both sides.
Collective Agreement = the contract
What if an agreement cannot be reached?

9. Arbitration
An arrangement in a dispute in which both labour and management agree to accept the decision of a third party (arbitrator)

10. Conciliation/Mediation
A situation in a dispute in which both labour and management agree to submit their proposals to a third party. Unlike an arbitrator, a conciliator cannot bind the two parties.

11. Strike A strike a temporary work stoppage by employees
Designed to force an employer to meet the union’s contractual demands
Majority of workers have to agree to take this action
Certain conditions must be met (expiry of old collective agreement, use of conciliation or mediation)

12. Lockout
A lockout occurs when an employer shuts down the place of employment in order to force workers to accept its contract offer
Equivalent to a strike but from the employers perspective

13. Strike/Lockout Costs of both are high (wages and output)
Related industries can be affected
Consumers may not be able to obtain goods or services (bus strike)
Can interfere with pension amount
Other strategies can be used
Rotating strike
Work-to-rule
Boycott

14. Rotating Strike
Union organizes the withdraw of services at individual work sites on a rotating basis (for usually a day or two)
Less disruption
Less output and wages lost

15. Work-to-Rule
When employees perform only the duties specifically stated in their contracts
Effective when employees find that they are performing a lot of work after hours

16. Boycott
In a boycott, people are asked not to purchase the product produced by the employer
Lower sales to the point where the employer might reconsider its position

17. Open Shop/Closed Shop Open Shop Union – membership is voluntary.
Closed Shop Union – the employer may only hire workers who are already members of the union
Union Shop – hire whoever, but they must eventually join the union

18. Fringe Benefits
Payments and services other than wages that are provided by the employer
Medical/Dental
Pension
Life insurance
Paid vacation
Cost-of-living Allowances – keep wages increasing on par with general price increases

19. Unions and Wages
Unions can use their power to gain wage increases through:
Restricting the supply of labour
Increasing the demand for labour
Balancing the power of monopolies and oligopolies

20. Restricting the supply of labour
Long apprenticeships
High union initiation fees
Refuse new members
Refuse to let non-union members do the job

21. Increase the demand for labour
Help employers modernize plants and improve worker productivity
Encourage the purchase of union-made products
Reduce amount of non-union made products

22. Balance of Power of Monopolies and Oligopolies
Organize workers to give them more power and employer less

23. Word Power What do you think the following terms mean? Sweated labour
Wildcat Strike
Blacklist
Scab
Yellow-dog contract
Feather-bedding
Sweetheart agreement or contract
Stoolie

24. Questions
Explain the difference between a trade union and an industrial union
List the terms that are negotiated through collective bargaining
What kind of help is available to unions and employers if they cannot reach a collective agreement on their own?
Besides a strike, what other tools can a union use to apply pressure?
How do unions attempt to raise wages of their members besides through collective bargains?