1. Understanding Labour-Management Relations
CHAPTER 9
Understanding Labour-Management Relations

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
These learning objectives are based upon those at the beginning of the chapter. For a review of learning objectives, see the summary at the end of the chapter, as well as the list of key terms.
Learning Objectives: p. 272
Summary: pp
Key Terms: p. 294
Study Questions & Exercises: p. 294
Building Your Business Skills: p. 295 2 2

3. Labour Unions
Groups of individuals working together to achieve job-related goals
higher pay
reasonable work hours
better working conditions
better job security
benefits
Learning Objective: 1
Page 274 3 3

4. 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
Learning Objective: 1
Page 274 4 4

5. The Development of Canadian Labour Unions
: 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)
Learning Objective: 2
Page 275 5 5

6. 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
Learning Objective: 2
Pages

7. 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
Learning Objective: 2
Page 279

8. 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
Learning Objective: 3
Page 280 12 12

9. 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
Learning Objective: 3
Pages 15 15

10. Canada Industrial Relations Regulations
Right to join a trade union
Canada Labour Relations Board (certification procedures)
Acquisition or termination of bargaining rights
Bargaining and Agreement rules
Conciliation officer appointment
Conditions for legal strike or lockout
Methods to promote peace
Learning Objective: 3
Pages 281 17 17

11. 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
Learning Objective: 3
Pages 16 16

12. 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
Learning Objective: 4
Page 284 18 18

13. 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
Learning Objective: 4
Page 19 19

14. 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
Learning Objective: 4
Page 285 20 20

15. 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
Learning Objective: 4
Page 285 21 21

16. 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)
Learning Objective: 4
Page 285 22 22

17. 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
Learning Objective: 4
Page 285 23 23

18. 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
Learning Objective: 4
Pages 28 28

19. 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
Learning Objective: 4
Page 286 29 29

20. Union Shop Employer may hire unionized or non-unionized employees
New workers must join the union within a specified period of time
Time period is usually 30 days
Learning Objective: 4
Page 286 30 30

21. 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
Learning Objective: 4
Page 286 32 32

22. 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
Learning Objective: 4
Page 286 31 31

23. 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
If rejected,
management and union resort to different tactics to influence the process
Learning Objective: 5
Pages 33 33

24. The Bargaining Zone Bargaining Zone Union’s demands Employer’s
maximum limit
Bargaining
Zone
Union’s
expectations
Employer’s
expectations
Learning Objective: 5
Page 287 (This reflects the diagram in Figure 9.2 on page 287.)
Union’s
minimum limit
Employer’s
desired result

25. Contract Issues Mandatory items Permissive items Compensation
cost-of-living adjustment (COLA)
wage reopener clause
Benefits
Working hours
Permissive items
Job security
Learning Objective: 5
Pages

26. 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
Learning Objective: 5
Pages 34 34

27. 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
Learning Objective: 5
Pages

28. Management Tactics Lockout Hire strike-breakers Plant Closures
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
Learning Objective: 5
Pages 291 35 35

29. 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
Learning Objective: 5
Pages 292 36 36

30. 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
Learning Objective: 5
Pages 37 37