Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition THE UNION-MANAGEMENT RELATIONSHIP Week 5 _________________________ Dr. Teal McAteer-Early

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition An Integrated Model of the Industrial/Labour Relations System Inputs The Actors Conversion Processes Outputs

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Six Perspectives on the Study of Industrial/Labour Relations Classical Institutional Neoclassical Human Resource Management Strategic Choice Political Economy

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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.

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Collective Agreement A contract negotiated between union and employer,outlining terms and conditions of employment.

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Why do Employees Join Unions? Reasons for Joining Job dissatisfactionJob dissatisfaction Individual attitudes toward unionsIndividual attitudes toward unions Perceived union instrumentalityPerceived union instrumentality Reasons for Not Joining Belief that union membership may harm chances for promotionBelief that union membership may harm chances for promotion Extra costs for union dues or strikesExtra costs for union dues or strikes Negative opinions toward unionsNegative opinions toward unions Fair supervisory treatment/policiesFair supervisory treatment/policies

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Attitudes Toward Unions

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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 unions seeking to further members’ interests by influencing the social, economic, and legal policies of governments governments

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Union Structure and Function National/International Unions Many local unions are part of a larger national or international union 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Impact of Union Representation Productivity Wages & benefits Strikes Most collective agreements are settled without a strike Higher wages, particularly for part- time employees More comprehensive benefits Relationship between unionization and productivity is subject to debate

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Canadian Labour Legislation Common Core of LabourLegislation Right to join a union Good faith bargaining No strikes or lockouts during agreement Conciliation Prohibition of unfair labour practices

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Labour Relations Boards Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Unfair Labour Practices ManagementUnions 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 3 Phases of Collective Bargaining Phase 1 Preparationfornegotiations Phase 2 Face-to- face negotiations Phase 3 Approving the proposed agreement

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Conciliation & Mediation Conciliation –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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Contract Provisions Union shop –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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition Features of Union Substitution Union Substitution Employees have “voice” Pay/benefits are parallel Evaluate based on performance Maximizeopportunities Design satisfying jobs Select qualified workers Train workers & managers Establish fair standards

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.Schwind 7th Canadian Edition 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