1. Chapter 9 Labour Unions Economics 11 May 2013

2. A labour union is a recognized (certified) organization of workers that negotiates with employers matters of wages, working conditions, and other benefits

3. The first labour unions to develop in Canada were unions of workers in a particular skills or craft  like shoemakers, bakers and tailors, these unions are called craft unions  craft unions began in the 1820s

4. Industrial unions represent workers in a particular firm or industry, for example CAW (Canadian Auto Workers) represents all kinds of workers, from floor sweepers to highly skilled machinists

5. Union Structure : The Local A person joins the union through the local in his or her town union dues are paid to the local the union member can vote for the offices of the local (including the president, vice-president, treasurer and secretary) local officers are usually workers like the union member the local officers conduct negotiations between workers and employers the local union is a small part of the larger union, usually a provincial or national organization called the parent union a portion of the union dues paid are retained by the local, the remainder goes to the parent union when an organization representing a substantial part of the labour force speaks, governments are likely to listen

6. Collective Bargaining collective bargaining is the negotiation between representatives of workers and employer with the purpose of establishing terms and conditions of employment that are acceptable to both sides

7. Arbitration if there are disputes about interpretation or allegations of a violation of the contract, then the contract must be submitted to arbitration ARBITRATION is an arrangement or dispute in which both labour and management agree to accept the decision of a third party, the arbitrator the arbitrators decision is final and binding on both parties

8. Conciliation/Mediation when a contract expires, and the two sides are unable to agree on a new contract, they go to a mediation or conciliation conciliation is a situation in a dispute in which both labour and management agree to submit their proposals to a third party, a mediator -the conciliator attempts to bring the two sides to an agreement -unlike arbitrators, conciliators do not have the power to bind the two parties

9. Strike a strike is the withholding of labour services by a labour union this tactic is only used rarely and as a last resort the right to strike is very important from the union’s point of view; withdrawal of labour services is the workers’ ultimate weapon in over 95% of the contract negotiations, workers and management are able to resolve their differences without resorting to strikes or lockouts

10. Lockout a lockout is when management may lock out its workers to prevent them from working this tactic is only used rarely and as a last resort in over 95% of the contract negotiations, workers and management are able to resolve their differences without resorting to strikes or lockouts

11. The Contract the contract covers four major areas: union security, wages and benefits, seniority, and grievance procedures

12. The Contract – union security In the early years unions were trying to get management to recognize them. A CLOSED SHOP type of employment means that workers must become members of the union within a specified period of time An OPEN SHOP type of employment means that management can hire workers that are not part of the union and are not required to become union members A CLOSED SHOP situation puts the union in a much stronger position once a union has been recognized, all employees must pay dues, although they do not have to become union members.

13. The Contract – wages and benefits wages and benefits – fringe benefits are payments/services provided by an employer that are in addition to wages/salary (medical, dental, life insurance, etc.) Contracts often include cost of living allowances that keep wages increasing on par with general price increases

14. The Contract - seniority seniority- when a job is posted (offered) the person with the highest seniority will be given preference if times are tough and layoffs are necessary, the person with the least seniority will be laid off first

15. The Contract - Grievance grievance – a procedure established for settling any disputes that may arise

16. Unions and Wages Unions act in the market with the aim of improving the conditions of the workers

17. Unions and Wages Ways that unions use their power to gain wage increases: 1. Restrict the supply of labour –a union can require long apprenticeships or high union initiation fees; –refuse to admit new members or allow non- union members to do the job

18. Unions and Wages Ways that unions use their power to gain wage increases: 2. Increase the demand for labour – union can help employees modernize plants and improve worker productivity – can encourage the public to buy union-made products –Can pressure the federal government to restrict competitive products coming in to Canada

19. Unions and Wages Ways that unions use their power to gain wage increases: 3. Balance of Power of Oligopolies or Monopolies –the union may be able to balance out the power that a large company has in a small town

20. sweated labour – labour employed for long hours at low wages and often under unsafe or unsanitary conditions. –The places in which this occurs are called sweat- shops.

21. Wildcat strike – a spontaneous strike action that is not authorized by the union and that violates the collective agreement. –A wildcat strike may be called if workers feel that the employers are trying to violate a previously-concluded agreement. The 2006 Toronto Transit Commission wildcat strike was an illegal strike in Toronto, Ontario, Canada, on May 29, 2006. It was initiated by 800 Toronto Transit Commission mechanical and janitorial workers who were protesting proposed changes in work schedules, including permanent re-assignment of 100 workers to night shifts. The strike began between 4 a.m. and 5 a.m. EDT, and quickly resulted in a large scale disruption of service when transit drivers honoured the picket line, effectively shutting down the Toronto transit system. The shutdown left over a million commuters searching for alternative means of transport.strike TorontoOntarioCanadaToronto Transit CommissionEDT

22. Blacklist – a list of “undesirable” workers drawn up by some employers and circulated among them. –One reason for workers being labelled “undesirable” may be that they were members of, or wished to organize, a union.

23. Scab – someone who continues to work when other employees are on strike or who takes a job with an employer whose workers are on strike. A strikebreaker.

24. Yellow-dog contract – in the past some employers required new workers to sign a document by which they agreed never to join a union. –Workers agreeing to this kind of contract were called yellow dogs.

25. Feather-bedding – labour unions can sometimes convince employers to agree not to lay off workers, even though their jobs may no longer need to be performed. –In this case, the worker may just as well take along a feather bed and take a snooze at work. There is nothing for the worker to do anyway.

26. sweetheart agreement/contract – an agreement or contract made through the collusion of dishonest management and union officials on terms favourable to the employer. –Such an agreement would be reached without the workers’ approval

27. stoolie – a person employed to act as an informer on union members and on union activities.

28. Today’s assignment: –Write one sentence for each new term from today. The sentence needs to exhibit your understanding of the term. Use other economics vocabulary when possible. –So in total you will have 8 wonderfully constructed meaningful sentences which you will pass it in to me.

29. Chapter 9 TEST on ___________________ Labour union Collective bargaining Arbitration Strike/lockout Closed shop and open shop The four parts of a contract (union security, wages and benefits, seniority, and grievance procedures) The three ways that unions use their power to gain wage increases sweated labour Wildcat strike Blacklist Scab Yellow-dog contract Feather-bedding sweetheart agreement/contract Stoolie