Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 15–1 Part 5: Employee Relations Chapter 15: Union/Management Relations Prepared by Linda Eligh, University of Western Ontario

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–2 Learning Objectives After you have read this chapter, you should be able to: 1.Describe what a union is and explain why employees join unions. 2.Discuss decline in union membership in Canada. 3.Explain the roles of the federal and provincial governments in labour relations. 4.Discuss the stages of the unionization process. 5.Describe the issues involved in preparing for contract negotiation. 6.Describe the typical collective bargaining process. 7.Explain the grievance procedure and why it is important for employers.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–3 Nature of Unions Union  A formal association of workers that promotes the interests of its members through collective action. Why Employees Unionize  They are dissatisfied with how they are treated by their employers.  They believe that unions can improve their work situations.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–4 Factors Leading to Employee Unionization Fig. 15-1

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–5 Typical Division of HR Responsibilities: Labour Relations Fig. 15-2

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–6 Global Labour Union Issues Union membership is falling in advanced countries. High unemployment is creating pressure for change. Child labour is an issue in some countries, outsourcing is in others. Co-determination  A practice whereby union or worker representatives are given positions on a company’s board of directors.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–7 Union Membership as a Percentage of the Workforce for Selected Countries Fig. 15-3

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–8 Unions in Canada Union Movement Emphases:  Focused on “bread-and-butter” economic issues— wages, benefits, job security, and working conditions.  Organized by kind of job and employer.  Seek multi-year collective agreements on economic issues as “contracts.”  Maintain competitive relations with management.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–9 Union Structure Craft Union  A union whose members do one type of work, often using specialized skills and training. Industrial Union  A union that includes many persons working in the same industry or company regardless of jobs held. Federation  A group of autonomous national and international unions. Union Mergers  Trend since the 1990s - unions also find strength in size. Reflects the mergers of Canadian corporations and demands by members for more efficient bargaining and administrative services.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–10 Union Structure (cont’d) National and International Unions  Unions that determine broad union policy and offer services to local union units. May also keep financial records and provide a base from which an organizing drive can take place. Local Union  A union centered around either a particular employer or a particular geographic location.  Business Agent - a full-time union official who operates the union office and assists union members.  Union Steward - an employee elected to serve as the first-line representative of unionized employees.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–11 Union Structure (cont’d) Alternative Employee Representation Model  Alternative ways in which workers can achieve non- union representation without having to go through the formal unionization process.  Arrangements that cannot acquire formal labour relations rights, but can develop group employment contracts similar to union agreements.  Substitutes to unions  Professional organizations  Non-union staff associations

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–12 Union Membership in Canada Union Density  The proportion of paid workers who are union members and who have signed union membership cards.  A commonly used indicator of the strength and potential influence of the labour movement in a country.  Peaked at 39% in Canada in mid-1980s.  Though unionization in Canada is much higher than in the U.S., decline of unionization is a mounting concern among Canadian union organizers.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–13 Rate of Union Coverage Canada and Provinces Fig. 15-4

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–14 Union Membership in Canada Reasons for Union Membership Decline  Deregulation, foreign competition, more people looking for jobs  Firms believe unions increase business costs compared with non- union alternatives  Management has taken a more activist stance against unions than in previous years of union growth

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–15 Reasons for Union Membership Decline Industrial Changes Industrial Changes Geographic Changes Workforce Changes Declining Union Membership

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–16 Union Membership by Industry Fig. 15-5

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–17 Union Targets for Membership Growth Professional Workers Contingent and Part-Time Workers Low-Skill Workers Union Organizing

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–18 Changes in Union Coverage between 1997 and 2002 Fig. 15-6

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–19 Union Membership in Canada Public Sector Unionism  Most highly unionized segment of Canadian workforce  Three largest unions represent all public sector workers  Public Service Alliance of Canada PSCA (Federal employees)  National Union of Provincial Government Employees (NUPGE)  Canadian Union of Public Employees (CUPE)  Teachers, nurses, social workers, professors and others in government-related jobs are also increasingly unionized

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–20 Public Sector Unions Alternative Ways to resolve Impasses for Public Sector Employees No-Strike, Interest Arbitration Model Designated or Controlled Strike Model Back to Work Legislation Unrestricted Right-to- Strike Model

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–21 Industrial Relations in Canada Fight for unions in Canada fraught with adversity going back to the 18 th century  Employers strongly opposed to unions  Questionable anti-union tactics used to suppress union advancement  Yellow Dog Contracts  Banning public union meetings  Hiring strikebreakers and goons  Blacklisting  Firing employees  Putting union activists in jail. NO UNIONS!

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–22 Typical Unionization Process Fig. 15-7

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–23 Unionization Process Determining an Appropriate Bargaining Unit  “Community of Interest”  Wages, hours, and working conditions  Traditional industry groupings for bargaining purposes  Physical location and amount of interaction and working relationships among employee groups  Supervision by similar levels of management Supervisors and Bargaining Units  Supervisors are excluded from bargaining units  Defined as any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–24 Legal Do’s and Don’ts for Managers During Unionization Employer Do’s Discharge, suspend, transfer, layoff or otherwise discipline an employee for proper cause Make a change in the operation that is reasonably necessary for the proper conduct of business Express management views on any matter providing it does not use intimidation or coercion Employer Don’ts Engage in threats, coercion or intimidation Interrogate employee about their voting intentions Hire spies or infiltrators to acquire information or influence union activities Promise or alter the terms of employment in response to a union drive Shut down any establishment to avoid or eliminate a union And many other activities…

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–25 Unfair Labour Practices: Union Bargaining collectively or signing a collective agreement where another union is known to be the bargaining agent. Interfering with or participating in the formation of an employers’ organization. Attempting to organize on the employer’s premises during working hours without the consent of the employer. Using coercion, intimidation, threats, promises, or undue influence to encourage trade union membership.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–26 Unionization: Key Terms Salting  The practice in which unions hire and pay people to apply for jobs at certain companies. Union Authorization Card  A card signed by an employee to designate a union as his or her collective bargaining agent. Bargaining Unit  Employees eligible to select a single union to represent and bargain collectively for them. Union Certification  Occurs when a union becomes the legal representatives for designated employees as granted by the labour relations board. Decertification  The process whereby a union is removed as the representative of a group of employees. First Contract Arbitration  Once a newly formed union has been certified, the employer and the union must negotiate a first contract within a specified period of time.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–27 Continuum of Collective Bargaining Relations Fig. 15-9

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–28 Collective Bargaining  The process whereby representatives of management and workers negotiate a labour agreement covering wages, hours, and other terms and conditions of employment.  How union and management chose to deal with each other will set the tone for the collective bargaining process.  Distributive Bargaining  Integrative Bargaining (interest based)  Attitudinal Structuring  Intraorganizational Bargaining

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–29 Bargaining Structure Centralized vs. Decentralized Bargaining  Canada operates under a decentralized bargaining system, meaning most certified units are confined to the provincial level.  Unions may strike at one location but may not be able to shut down operations entirely since employers can easily transfer production to another unit. Pattern Bargaining  Comes closest to decentralized concept. Occurs when negotiations in one industry or local serve as the basis for negotiations in other industries or localities. Concession Bargaining  Occurs when employers ask unions to concede to reductions in wages and other benefits in order to ensure longevity of the organization.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–30 Collective Bargaining Issues Mandatory Terms  Also known as articles or clauses which must be included in a contract agreement in order to comply with labour relations legislation. Voluntary Terms  The unique issues that come from the employer and the union.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–31 Collective Agreement Terms Fig

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–32 Management Rights  Those rights reserved to the employer to manage, direct, and control the workplace. Union Security Provisions  Contract provisions that aid the union in obtaining and retaining members.  Dues Checkoff Provision  A contract provision for the automatic deduction of union dues from the paycheques of union members. Collective Bargaining Issues

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–33 Collective Bargaining Issues Closed Shop  A firm that requires individuals to join a union before they can be hired. Open Shop  Workers are not required to join or pay dues to a union. Union Shop  Workers who must join the union after a specified period of time and pay union dues at that time. Maintenance-of-membership Shop  Workers remain members of the union for the period of the labour contract. Agency Shop  Employee does not have to join the union but must pay union dues.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–34 Collective Bargaining Process Figure Preparation and Initial Demands NegotiationsNegotiations Strikes or Lockouts Settlement or Impasse

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–35 The Bargaining Zone Fig

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–36 Bargaining Impasse Conciliation  A process by which a third party attempts to keep union and management negotiators talking so that they can reach a voluntary settlement. Mediation  A process by which a third party helps the negotiators reach a settlement. Fact-Finding  A process found in some public sector labour relations statues whereby an individual helps clarify the issues of disagreement as an intermediate step between mediation an arbitration. Arbitration  A process that uses a neutral third party to hear evidence form both parties and who makes a final and binding decision.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–37 Bargaining Power Union Bargaining Power  Strike Vote  Used as leverage to gain position at negotiations.  Strike  A work stoppage in which union members refuse to work in order to put pressure on an employer. Management Bargaining Power  Lockout  Shutdown of company operations undertaken by management to prevent union members from working.  Replacement of workers on Strike  Use of “striker replacements” can put a union at a complete disadvantage and increase the potential for violence.

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–38 Types of Strikes Economic Strikes  Strikes over economic issues (e.g., wages) Unfair labour practice strikes  Strikes over illegal employer actions (e.g., refusal to bargain) Wildcat strikes  Strikes not approved by the union Jurisdictional strikes  Strikes in dispute over the ownership of work Sympathy strikes  Expressions of support for other unions

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–39 Union/Management Cooperation Cooperation and Joint Efforts Cooperation and Joint Efforts Employee Ownership Union/ Management Cooperation Union/

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–40 Grievance Management Complaint  Indication of employee dissatisfaction Grievance  A complaint formally stated in writing Grievance Procedures  Formal channels used to resolve grievances Grievance Arbitration  Means by which a third party settles disputes arising from different interpretations of a labour contract

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–41 Typical Division of HR Responsibilities: Grievance Management Fig

Copyright © 2008 by Nelson, a division of Thomson Canada Limited.15–42 Steps in a Typical Grievance Procedure Fig