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 ratesHave 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 UnionsRepresent workers in a single occupation regardless of where they work.Ex. International Brotherhood of Electrical Workers.Very common in construction industry.
5 Industrial UnionsRepresent all workers in a given industry regardless of the job that they performEx. Canadian Auto Workers union (CAW)Represent workers in the automobile industry whether they are on the assembly line or maintenance workers.
6 Public Sector UnionsRepresent 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 localPay union dues to the local (local keeps small portion)Members vote for officers of the localLocal officers conduct negotiations between workers and employersSMALL 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 contractWhat if an agreement cannot be reached?
9 ArbitrationAn 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 demandsMajority of workers have to agree to take this actionCertain conditions must be met (expiry of old collective agreement, use of conciliation or mediation)
12 LockoutA lockout occurs when an employer shuts down the place of employment in order to force workers to accept its contract offerEquivalent to a strike but from the employers perspective
13 Strike/Lockout Costs of both are high (wages and output) Related industries can be affectedConsumers may not be able to obtain goods or services (bus strike)Can interfere with pension amountOther strategies can be usedRotating strikeWork-to-ruleBoycott
14 Rotating StrikeUnion organizes the withdraw of services at individual work sites on a rotating basis (for usually a day or two)Less disruptionLess output and wages lost
15 Work-to-RuleWhen employees perform only the duties specifically stated in their contractsEffective when employees find that they are performing a lot of work after hours
16 BoycottIn a boycott, people are asked not to purchase the product produced by the employerLower 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 unionUnion Shop – hire whoever, but they must eventually join the union
18 Fringe BenefitsPayments and services other than wages that are provided by the employerMedical/DentalPensionLife insurancePaid vacationCost-of-living Allowances – keep wages increasing on par with general price increases
19 Unions and WagesUnions can use their power to gain wage increases through:Restricting the supply of labourIncreasing the demand for labourBalancing the power of monopolies and oligopolies
20 Restricting the supply of labour Long apprenticeshipsHigh union initiation feesRefuse new membersRefuse to let non-union members do the job
21 Increase the demand for labour Help employers modernize plants and improve worker productivityEncourage the purchase of union-made productsReduce 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 StrikeBlacklistScabYellow-dog contractFeather-beddingSweetheart agreement or contractStoolie
24 QuestionsExplain the difference between a trade union and an industrial unionList the terms that are negotiated through collective bargainingWhat 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?