Labour Relations Dessler & Cole Human Resources Management in Canada Canadian Tenth Edition

16-2 Introduction to Labour Relations Labour-Management Relations: ongoing interactions between: labour unions management Labour Union (Union): officially recognized association of employees: in similar trade employed in same company/industry collective voice in dealings with management Labour-Management Relations: ongoing interactions between: labour unions management Labour Union (Union): officially recognized association of employees: in similar trade employed in same company/industry collective voice in dealings with management

Introduction to Labour Relations Collective Agreement  Between employer and union  Terms & conditions of Employment Collective Bargaining  Process of achieving an agreement Bargaining Unit  Formally recognized employee bargaining group Collective Agreement  Between employer and union  Terms & conditions of Employment Collective Bargaining  Process of achieving an agreement Bargaining Unit  Formally recognized employee bargaining group 16-3

16-4 Labour Relations Strategy Union acceptance strategy  Views union as legitimate employee representative  Potentially innovative & win-win Union avoidance strategy  Union substitution: responsive to employee needs  Union suppression: avoidance tactics Union acceptance strategy  Views union as legitimate employee representative  Potentially innovative & win-win Union avoidance strategy  Union substitution: responsive to employee needs  Union suppression: avoidance tactics Two Fundamental Approaches:

16-5 Canada’s Labour Laws: Objectives To provide a common set of rules for fair negotiations To provide a common set of rules for fair negotiations To ensure protection of the public interest

16-6 Canada’s Labour Laws: Jurisdiction Provincial/Territorial (13 jurisdictions) 90% of labour-management relations Provincial/Territorial (13 jurisdictions) 90% of labour-management relations Federal (1 jurisdiction) 10% of labour-management relations

16-7 Labour Legislation – Commonalities certification procedures minimum one year collective agreements procedures preceding legal strike/lockout no strikes/lockouts during life of contract contract interpretation disputes settled by binding arbitration prohibition of unfair labour practices labour relations boards to enforce legislation certification procedures minimum one year collective agreements procedures preceding legal strike/lockout no strikes/lockouts during life of contract contract interpretation disputes settled by binding arbitration prohibition of unfair labour practices labour relations boards to enforce legislation

Canada’s Labour Movement Today Union Types  Business Unionism  Social unionism Worker Eligibility  Craft and Industrial Geographic Scope  International, National and Local Labour Congress Affiliation  CLC, CSN, AFL-CIO Union Types  Business Unionism  Social unionism Worker Eligibility  Craft and Industrial Geographic Scope  International, National and Local Labour Congress Affiliation  CLC, CSN, AFL-CIO 16-8

16-9 Labour Movement: Current Challenges Global competition & employer militancy Technological change Unionization of white-collar employees  Decreased job security  Problems resolving “grievances”  Privatization of services Innovative workplace practices Global competition & employer militancy Technological change Unionization of white-collar employees  Decreased job security  Problems resolving “grievances”  Privatization of services Innovative workplace practices

16-10 The Labour Relations Process 1. Employees seek collective representation 2. Union organizing campaign begins 3. Official recognition of union 4. Collective bargaining 5. Contract administration 1. Employees seek collective representation 2. Union organizing campaign begins 3. Official recognition of union 4. Collective bargaining 5. Contract administration

16-11 Desire to Unionize Reasons job dissatisfaction lack of job security perceived inequities in pay unfair administration of policies lack of opportunity for advancement lack of influence on work-related decisions belief that unions can improve working conditions job dissatisfaction lack of job security perceived inequities in pay unfair administration of policies lack of opportunity for advancement lack of influence on work-related decisions belief that unions can improve working conditions

16-12 Union Organizing Process Step 5. Outcome Step 4. Organizing campaign Step 3. Formation of in-house committee Step 2. Initial organization meeting Step 1. Employee-union contact

16-13 Union Organizing: Employer Rights express views on unions state position on remaining non-union prohibit union activity on company property/time increase wages in normal course of business gather employees to state company’s position if:  purpose stated in advance  attendance optional  no threats/promises express views on unions state position on remaining non-union prohibit union activity on company property/time increase wages in normal course of business gather employees to state company’s position if:  purpose stated in advance  attendance optional  no threats/promises

16-14 Union Recognition Voluntary Recognition by employer Voluntary Recognition by employer Regular Certification By LRB Automatic certification representative vote Regular Certification By LRB Automatic certification representative vote Pre-hearing Vote if evidence of irregularities Pre-hearing Vote if evidence of irregularities Desertification: legal process of depriving union official bargaining agent

16-15 Collective Bargaining Process of establishing a formal collective between labour and management Both must bargain in good faith Three steps:  preparation for bargaining  face-to-face negotiations  obtaining approval for proposed contract Process of establishing a formal collective between labour and management Both must bargain in good faith Three steps:  preparation for bargaining  face-to-face negotiations  obtaining approval for proposed contract

16-16 Preparation for Negotiations gather economic data analyze other collective agreements audit/analysis of grievances review existing contract/union promises conduct wage/benefit surveys; prepare costing contingency planning Management only: obtain input from supervisors Union only: obtain company financial information, input from union stewards and members; gather demographic data on members gather economic data analyze other collective agreements audit/analysis of grievances review existing contract/union promises conduct wage/benefit surveys; prepare costing contingency planning Management only: obtain input from supervisors Union only: obtain company financial information, input from union stewards and members; gather demographic data on members

Bargaining vs. Negotiating Distributive Bargaining: Purpose:To Claim Value Motivated to “beat the competition” Claim the largest “piece-of-the-pie” Win-Lose (Zero-sum) strategies & tactics Only One (or no) winner Integrative Negotiations: Purpose:To Create Value Find solutions so both parties do well Seek to “expand-the-pie” Win-Win (Non-zero-sum) strategies & tactics Mutual gains outcome potential

Distributive Bargaining Goals of one party are in fundamental,direct conflict to another party Seeking to maximize one’s own share of resources Resources are fixed and limited Information giving limited to strategic advantage Relationships usually unimportant Typically a single deal by item

Distributive Bargaining Concepts Prior to Negotiating set …. Target point: optimal goal (aspiration point) Resistance point: bottom-line or point at which you will walk away (reservation point) “Asking price”: seller’s first offer (Union) “Initial offer”: buyer’s first offer (Management) Concessions: change in position; restricts bargaining range Bargaining Range: spread between resistance points Also called Zone of Potential Agreement (ZOPA)

The Distributive Bargaining Situation Party B – Management (Buyer) Party A – Union (Seller) Resistance Point Target Point Asking Price Initial Offer Target Point Resistance Point Bargaining Range Anchor Settlement Range Aspiration

16-21 Approving Proposed Contract Memorandum of Agreement  summary of terms and conditions agreed to by negotiators that is submitted to management and union membership for approval Ratification  formal approval of agreement by union members  secret ballot Memorandum of Agreement  summary of terms and conditions agreed to by negotiators that is submitted to management and union membership for approval Ratification  formal approval of agreement by union members  secret ballot

16-22 Third Party Assistance in Negotiation Conciliation assistance of neutral outside third party no direct input ; persuasion only required prior to strike/lockout Conciliation assistance of neutral outside third party no direct input ; persuasion only required prior to strike/lockout Mediation assistance of neutral outside third party active role; direct input; can’t impose usually voluntary

16-23 Bargaining Impasses in Negotiation strikes  strike vote  picketing  boycott  wildcat strikes lockout interest arbitration (final agreement imposed) strikes  strike vote  picketing  boycott  wildcat strikes lockout interest arbitration (final agreement imposed)

16-24 Collective Agreement:Typical Clauses union recognition union security/check off no strikes or lockout management rights arbitration union recognition union security/check off no strikes or lockout management rights arbitration

16-25 Union Security Clause closed shop union shop modified union shop maintenance-of-membership Rand formula (dues/agency shop) open shop closed shop union shop modified union shop maintenance-of-membership Rand formula (dues/agency shop) open shop

16-26 Contract Administration: Seniority refers to length of service in the bargaining unit basis for transfer, layoff, promotion decisions when two candidates have relatively equal skill/ability refers to length of service in the bargaining unit basis for transfer, layoff, promotion decisions when two candidates have relatively equal skill/ability

16-27 Contract Administration: Discipline employee has right to grieve disciplinary action considered:  too harsh  without just cause burden of proof on employer must strike a delicate balance between fairness and consistency employee has right to grieve disciplinary action considered:  too harsh  without just cause burden of proof on employer must strike a delicate balance between fairness and consistency

16-28 Contract Administration: Grievances Stage 1. Employee gives written grievance to supervisor Stage 1. Employee gives written grievance to supervisor Typical Grievance Procedure Stage 2. Discussion by griever, HR, union steward Stage 3. Discussion by senior management and top union officials Stage 3. Discussion by senior management and top union officials Stage 4. Rights arbitration

16-29 Impact of Unionization on HRM changes organizational structure and management decision making, policy and procedure formulation centralization of record keeping building effective labour-management relations  institute open-door policy  extend courtesy of prior consultation  demonstrate genuine concern for employee well- being  form joint committees changes organizational structure and management decision making, policy and procedure formulation centralization of record keeping building effective labour-management relations  institute open-door policy  extend courtesy of prior consultation  demonstrate genuine concern for employee well- being  form joint committees

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