The Union-Management Framework 14 . C H A P T E R F O U R T E E N The Union-Management Framework

Union Defined A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement.

Collective Agreement A contract negotiated between union and employer,outlining terms and conditions of employment.

Why do Employees Join Unions? Reasons for Not Joining Belief that union membership may harm chances for promotion Extra costs for union dues or strikes Negative opinions toward unions Fair supervisory treatment/policies Reasons for Joining Job dissatisfaction Individual attitudes toward unions Perceived union instrumentality

Attitudes Toward Unions

Union Goals and Philosophy Business Unionism Social (Reform) Unionism Practice of unions seeking to improve the wages, hours, and working conditions in a businesslike manner A characteristic of unions seeking to further members’ interests by influencing the social, economic, and legal policies of governments

Union Structure and Function Local Unions Basic unit of union organization formed in a particular plant or locality Craft Unions • Composed of workers who possess the same skills or trade Industrial Unions • Includes the unskilled and semiskilled workers at a particular location National/International Unions Many local unions are part of a larger national or international union

Trends in Union Membership Union Growth and Decline The number of women members has been increasing rapidly Unions are organizing service employers Part-time employees less likely to be unionized Larger workplaces are more likely to be unionized International Trends A number of countries have experienced a decline in union density

Impact of Union Representation Strikes • Most collective agreements are settled without a strike Wages & benefits • Higher wages, particularly for part-time employees • More comprehensive benefits Productivity • Relationship between unionization and productivity is subject to debate

Canadian Labour Legislation Right to join a union Common Core of Labour Legislation Conciliation Good faith bargaining Prohibition of unfair labour practices No strikes or lockouts during agreement

Labour Relations Boards Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation

Influences on Unionization External Factors Increase in unionization activity Major increase in the workforce is planned Internal Factors Turnover and absenteeism rates are high Employees are dissatisfied Pay and benefits are below average Complaint procedures are ineffective

Unfair Labour Practices Management Unions Interfering in the formation of a union or contributing financially Discriminating based on union membership or because employee exercises rights Intimidating or coercing an employee to join/not join Trying to bargain when the union is not the certified agent Persuading employees during working hours, or at the workplace Illegal strikes Failing to represent employees fairly

3 Phases of Collective Bargaining Preparation for negotiations Phase 2 Face-to-face negotiations Phase 3 Approving the proposed agreement

Mutual Gains Bargaining Moves away from traditional adversarial approach Win-win approach Usually preceded by conflict resolution training Requires both labour and management to have commitment, trust, respect and a long-term focus

Conciliation & Mediation A government-appointed third party attempts to bring together the parties to reach agreement In most provinces, a strike is not permitted before conciliation efforts Mediation Disputing parties voluntarily choose to reconcile their differences through a third party

Administering the Agreement Grievance Complaint that some aspect of a collective agreement has been violated Grievance procedures Most collective agreements include formal multi-step procedures to resolve grievances Arbitration Used to resolve a grievance when an acceptable solution cannot be reached

Contract Provisions Union shop Dues check-off Seniority Discipline Employers may hire anyone they want, but all workers must join the union within a specified period Dues check-off Employer required to deduct union dues Seniority Length of the worker’s employment Discipline “Just cause” is required to discipline or discharge

HRM & Bargaining Unit Employees More than 90% have a pension plan 79% have an orientation program 82% have an EAP 54% have formal performance appraisal Unions have generally avoided contingency compensation plans e.g. employee stock ownership plans

Implications of Union Avoidance Union Suppression Fighting union representation Example: Employer intimidates workers, threatens to close operation Union Substitution Examines what unions bring to the employment relationship and tries to introduce these features

Features of Union Substitution Design satisfying jobs Pay/benefits are parallel Maximize opportunities Union Substitution Employees have “voice” Select qualified workers Establish fair standards Evaluate based on performance Train workers & managers

Managing in a Union Environment Unions impact the HRM function: HR department may expand to add labour relations specialists Greater centralization of employee record-keeping and discipline to ensure uniformity Management has less freedom to make unilateral changes

Labour-Management Cooperation Organizational performance is enhanced when labour and management cooperate Cooperative methods include: Prior consultation Sincere concern Training programs Joint study committees Third parties

The Union-Management Framework 14 . C H A P T E R F O U R T E E N The Union-Management Framework