Steen/Noe et al., © 2013 McGraw-Hill Ryerson Role of unions and labour relations Unions Organizations formed for the purpose of representing their members’ interests in dealing with employers Labour relations A field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Labour relations decisions Labour relations strategy Management: whether to work with unions or develop (or maintain) nonunion operations Unions: whether to resist or accept changes Negotiating contracts Decisions about pay structure, job security, etc. Administering collective agreements Day-to-day activities which may involve handling disagreements LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson History and trends in union membership Labour unions existed in Canada since 1812 Labour activities escalated during early 1900’s Workers demanded better wages, shorter workdays, and improved conditions Collective bargaining recognized in 1937 Membership peaked in 1994 (36.1%) Unionization much higher in public sector than private sector Women outnumber men LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Types of unions LO1 National/International Union Association that seeks to advance the shared interests of members e.g. union federation (CLC) Local Union Where most day-to-day interaction between labour and management occurs Union steward Craft Union Members all have a particular skill or occupation e.g. electricians (IBEW) Industrial Union Members are linked by their work in a particular industry e.g. public employees (CUPE)

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Unionization rates across job sectors. LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson Rates of union membership by province. LO1

Steen/Noe et al., © 2013 McGraw-Hill Ryerson What is the impact of unions on company performance? Decrease productivity? Due to work rules and limits on workloads set by union contracts Production lost to union actions e.g. strikes Increase productivity? Reduce turnover Seniority-based pay systems remove incentives for employees to compete rather than cooperate May force the employer to improve its management practices and listen to employee ideas LO1