Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition Chapter Twelve Labour Relations, Collective Bargaining, and Contract Administration © 2007 Pearson Education Canada 12-1

© 2007 Pearson Education Canada 12-2 Overview of Labour-Management Relations Labour-Management Relations –ongoing economic and social interaction between labour unions management Labour-Management Relations –ongoing economic and social interaction between labour unions management

© 2007 Pearson Education Canada 12-3 Overview of Labour-Management Relations Labour Union (Union) –officially recognized association of employees: in similar trade employed in same company/industry –collective voice in dealings with management Labour Union (Union) –officially recognized association of employees: in similar trade employed in same company/industry –collective voice in dealings with management

© 2007 Pearson Education Canada 12-4 Overview of Labour-Management Relations Union Acceptance Strategy –a labour relations strategy based on management’s view that the union is the legitimate representative of the firm’s employees Union Acceptance Strategy –a labour relations strategy based on management’s view that the union is the legitimate representative of the firm’s employees

© 2007 Pearson Education Canada 12-5 Overview of Labour-Management Relations Union Avoidance Strategy –a labour relations strategy based on management’s preference to operate in a non-union environment Union Avoidance Strategy –a labour relations strategy based on management’s preference to operate in a non-union environment

© 2007 Pearson Education Canada 12-6 Overview of Labour-Management Relations Union Substitution Approach – involves removing the incentives for unionization by ensuring the needs of employees are met Union Substitution Approach – involves removing the incentives for unionization by ensuring the needs of employees are met

© 2007 Pearson Education Canada 12-7 Overview of Labour-Management Relations Union Suppression Approach – involves the use of hard tactics, which may or may not be legal to prevent a union from organising the employees or to get rid of an existing union Union Suppression Approach – involves the use of hard tactics, which may or may not be legal to prevent a union from organising the employees or to get rid of an existing union

© 2007 Pearson Education Canada 12-8 Canada’s Labour Laws Provincial/Territorial Legislation— Commonalities (1 of 2) –certification procedures –minimum one year collective agreements –no strikes/lockouts during life of contract –procedures preceding legal strike/lockout –certification procedures –minimum one year collective agreements –no strikes/lockouts during life of contract –procedures preceding legal strike/lockout

© 2007 Pearson Education Canada 12-9 Canada’s Labour Laws Provincial/Territorial Legislation— Commonalities (2 of 2) –interpretation disputes settle by binding arbitration –prohibition of unfair labour practices –labour relations boards to enforce legislation –interpretation disputes settle by binding arbitration –prohibition of unfair labour practices –labour relations boards to enforce legislation

© 2007 Pearson Education Canada Canada’s Labour Laws Unfair Labour Practices—Management (1 of 2) –interference with union activity by employees –participating in union activity –changing/threatening to change working conditions during: certification collective bargaining –interference with union activity by employees –participating in union activity –changing/threatening to change working conditions during: certification collective bargaining

© 2007 Pearson Education Canada Canada’s Labour Laws Unfair Labour Practices—Management (2 of 2) –refusing to bargain in good faith –penalizing employees for refusing to act as replacement workers –intimidating employees re union membership –refusing to bargain in good faith –penalizing employees for refusing to act as replacement workers –intimidating employees re union membership

© 2007 Pearson Education Canada Canada’s Labour Laws Unfair Labour Practices - Union –conducting union business on company time/ premises without employer consent –refusing to bargain in good faith -discrimination against union members on prohibited grounds -intimidating employees re union membership -failing to fairly represent all union members -threatening/authorizing unlawful strike –conducting union business on company time/ premises without employer consent –refusing to bargain in good faith -discrimination against union members on prohibited grounds -intimidating employees re union membership -failing to fairly represent all union members -threatening/authorizing unlawful strike

© 2007 Pearson Education Canada The Labour Movement in Canada Today Types of Unions Type of Worker Eligible for Membership –craft –industrial Type of Worker Eligible for Membership –craft –industrial Geographic Scope –international –national –local Geographic Scope –international –national –local Labour Congress Affiliation –CLC –CSN –AFL-CIO Labour Congress Affiliation –CLC –CSN –AFL-CIO

© 2007 Pearson Education Canada The Labour Movement in Canada Today Current Challenges 1. Global competition and technological change 2.Unionization of white-collar employees 3. Innovative workplace practices 1. Global competition and technological change 2.Unionization of white-collar employees 3. Innovative workplace practices

© 2007 Pearson Education Canada The Labour Relations Process Step 3. Union Recognition Process Step 2. Union Organizing Campaign Step 1. Desire to Unionize Step 4. Collective Bargaining Process Step 5. Contract Administration

© 2007 Pearson Education Canada Step 1—Employee’s Desire to Unionize Reasons for Desire to Unionize –job dissatisfaction –lack of job security –unfair administration of policies –perceived inequities in pay –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 –unfair administration of policies –perceived inequities in pay –lack of opportunity for advancement –lack of influence on work-related decisions –belief that unions can improve working conditions

© 2007 Pearson Education Canada Step 2—Union Organizing Campaign Step 5. Outcome Step 4. Organizing campaign The Union Organizing Process Step 3. Formation of in-house committee Step 2. Initial organization meeting Step 1. Employee-union contact

© 2007 Pearson Education Canada Step 2—Union Organizing Campaign Signs of Organizing Activity (1 of 2) –disappearance of employee lists/directories –increased inquiries about benefits, wages, etc. –questions on management’s opinion of unions –increase in number/nature of grievances –change in composition/size of informal employee groups –disappearance of employee lists/directories –increased inquiries about benefits, wages, etc. –questions on management’s opinion of unions –increase in number/nature of grievances –change in composition/size of informal employee groups

© 2007 Pearson Education Canada Step 2—Union Organizing Campaign Signs of Organizing Activity (2 of 2) –employee discussion of group meetings –sudden popularity of certain employees –sudden cessation of conversation when manager approaches –appearance of strangers in parking lot –distribution of cards or flyers –employee discussion of group meetings –sudden popularity of certain employees –sudden cessation of conversation when manager approaches –appearance of strangers in parking lot –distribution of cards or flyers

© 2007 Pearson Education Canada Union Organizing and Recognition 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

© 2007 Pearson Education Canada Step 3—Union Recognition Process Union Recognition Voluntary Recognition –doesn’t require involvement of a 3 rd party Voluntary Recognition –doesn’t require involvement of a 3 rd party Regular Certification –automatic certification –representative vote Regular Certification –automatic certification –representative vote Prehearing Vote –in event of irregularities –intent: to engage support Prehearing Vote –in event of irregularities –intent: to engage support

© 2007 Pearson Education Canada Termination of Bargaining Rights –termination of a voluntarily-recognized union –employee request for decertification –decertification due to fraud –union request for decertification –termination of a voluntarily-recognized union –employee request for decertification –decertification due to fraud –union request for decertification

© 2007 Pearson Education Canada Step 4—Collective Bargaining –surface bargaining –failing to make concessions/withdrawing previously granted concessions –failing to make reasonable proposals –delaying tactics –imposing unreasonable conditions –surface bargaining –failing to make concessions/withdrawing previously granted concessions –failing to make reasonable proposals –delaying tactics –imposing unreasonable conditions Violations of Good Faith Bargaining (1 of 2)

© 2007 Pearson Education Canada Collective Bargaining –making unilateral changes in conditions –bypassing formal representatives –committing unfair labour practices during negotiations –failing to provide information –making unilateral changes in conditions –bypassing formal representatives –committing unfair labour practices during negotiations –failing to provide information Violations of Good Faith Bargaining (2 of 2)

© 2007 Pearson Education Canada Collective Bargaining Process Step 1. Prepare for Negotiations Step 1. Approval of Contract Step 1. Face-to-face Negotiations

© 2007 Pearson Education Canada Collective Bargaining –review strategic plan –gather economic data –conduct wage/benefit surveys –review existing contract and analyze other collective agreements –obtain supervisory input –review strategic plan –gather economic data –conduct wage/benefit surveys –review existing contract and analyze other collective agreements –obtain supervisory input Preparation for Negotiations— Management (1 of 2)

© 2007 Pearson Education Canada Collective Bargaining –audit/analysis of grievances –review relevant arbitration award/LRB rulings –prepare bargaining plan/strategy/guidelines –establish bargaining team –establish communication strategy with senior management –audit/analysis of grievances –review relevant arbitration award/LRB rulings –prepare bargaining plan/strategy/guidelines –establish bargaining team –establish communication strategy with senior management Preparation for Negotiations— Management (2 of 2)

© 2007 Pearson Education Canada Collective Bargaining –review union policy objectives –gather economic data –gather data on bargaining trends/settlements –analyze employer’s finances –analyze other collective agreements –obtain input from stewards and membership –review union policy objectives –gather economic data –gather data on bargaining trends/settlements –analyze employer’s finances –analyze other collective agreements –obtain input from stewards and membership Preparation for Negotiations— Union (1 of 2)

© 2007 Pearson Education Canada Collective Bargaining –review existing contract –audit/analysis of grievances –gather data on bargaining unit members –costing –establish bargaining team –contingency planning for strike/lockout –review existing contract –audit/analysis of grievances –gather data on bargaining unit members –costing –establish bargaining team –contingency planning for strike/lockout Preparation for Negotiations— Union (2 of 2)

© 2007 Pearson Education Canada The Collective Bargaining Process Distributive Bargaining Party A’s aspiration range Party B’s aspiration range Settlement range Party A’s target point Party B’s resistance point Party A’s resistance point Party B’s target point

© 2007 Pearson Education Canada The Collective Bargaining Process 1.Distributive bargaining 2.Integrative bargaining 3.Intra-organizational bargaining 1.Distributive bargaining 2.Integrative bargaining 3.Intra-organizational bargaining Negotiating

© 2007 Pearson Education Canada Third-Party Assistance and Bargaining Impasses Conciliation –assistance of neutral outside third party –required prior to strike/lockout Conciliation –assistance of neutral outside third party –required prior to strike/lockout Mediation –assistance of neutral outside third party –usually voluntary Mediation –assistance of neutral outside third party –usually voluntary

© 2007 Pearson Education Canada Third-Party Assistance and Bargaining Impasses Bargaining Impasses –strikes strike vote replacement workers boycott –lockout –interest arbitration Bargaining Impasses –strikes strike vote replacement workers boycott –lockout –interest arbitration

© 2007 Pearson Education Canada The Collective Agreement: Typical Provisions –union recognition –union security/check-off –no strikes or lockout –management rights –grievance procedures –arbitration –union recognition –union security/check-off –no strikes or lockout –management rights –grievance procedures –arbitration Clauses (1 of 2)

© 2007 Pearson Education Canada The Collective Agreement: Typical Provisions –disciplinary procedures –compensation rates and benefits –hours of work and overtime pay –health and safety –employee security/seniority –contract expiration date –disciplinary procedures –compensation rates and benefits –hours of work and overtime pay –health and safety –employee security/seniority –contract expiration date Clauses (2 of 2)

© 2007 Pearson Education Canada Step 5—Contract Administration –union and management must abide by contract –most labour-management relations in day-to-day contract administration –numerous disagreements on seniority and discipline and grievance provisions –union and management must abide by contract –most labour-management relations in day-to-day contract administration –numerous disagreements on seniority and discipline and grievance provisions

© 2007 Pearson Education Canada Contract Administration –seniority refers to length of service in the bargaining unit –basis for transfer, layoff, promotion decisions –seniority refers to length of service in the bargaining unit –basis for transfer, layoff, promotion decisions Seniority

© 2007 Pearson Education Canada Contract Administration –employee has right to grieve disciplinary action considered: too harsh without just cause –employee has right to grieve disciplinary action considered: too harsh without just cause Discipline

© 2007 Pearson Education Canada Grievance Resolution and Rights Arbitration Grievance –written allegation of contract violation filed by: individual union members union management Grievance –written allegation of contract violation filed by: individual union members union management

© 2007 Pearson Education Canada Grievance Resolution and Rights Arbitration –fair application of the contract –resolve issues unanticipated when bargaining –interpret contract language –provide communication device –satisfy political needs for union –bring attention to contract areas requiring clarification/modification –fair application of the contract –resolve issues unanticipated when bargaining –interpret contract language –provide communication device –satisfy political needs for union –bring attention to contract areas requiring clarification/modification Purpose of the Grievance Procedure

© 2007 Pearson Education Canada Grievance Resolution and Rights Arbitration Stage 1. Employee gives written grievance to supervisor Stage 1. Employee gives written grievance to supervisor Typical Grievance Procedure Stage 2. Discussion by grievor, 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. Arbitration

© 2007 Pearson Education Canada Grievance Resolution and Rights Arbitration Rights Dispute –regards interpretation/application of collective agreement Rights Arbitration –arbitration of a rights dispute Rights Dispute –regards interpretation/application of collective agreement Rights Arbitration –arbitration of a rights dispute

© 2007 Pearson Education Canada Impact of Unionization on HRM –organizational structure changes –management decision making changes –changes in formulation of policies/procedures –centralization of record keeping and standardization of decision making –organizational structure changes –management decision making changes –changes in formulation of policies/procedures –centralization of record keeping and standardization of decision making

© 2007 Pearson Education Canada Building Effective Labour- Management Relations –institute open-door policy –regular meetings and joint study committees –demonstrate genuine concern for employee well-being –hold joint training programs –use third-party assistance –institute open-door policy –regular meetings and joint study committees –demonstrate genuine concern for employee well-being –hold joint training programs –use third-party assistance