Understanding Labour-Management Relations CHAPTER 9 Understanding Labour-Management Relations

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. 293-294 Key Terms: p. 294 Study Questions & Exercises: p. 294 Building Your Business Skills: p. 295 2 2

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

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

The Development of Canadian Labour Unions 1827-1870: 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

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 277-278

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

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

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 280-281 15 15

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

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 281-282 16 16

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

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 284-285 19 19

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

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

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

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

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 285-286 28 28

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

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

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

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

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 286-287 33 33

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

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 287-289

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 289-291 34 34

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 289-290

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

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

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 292-293 37 37