© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-1 Chapter Fourteen Unions Growth and Incidence Created by: Erica Morrill, M.Ed Fanshawe College

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-2 Chapter Focus Union membership Evolution of unions Workers covered by unions Level of unionization Unions in Canada and U.S.

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-3 Unions Collective organizations Objective to improve the well-being of members Play a role in social and political affairs

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-4 Types of Unions Craft unions workers in a particular trade or occupation Industrial unions represent workers in an entire industry

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-5 Unions and Collective Bargaining in Canada Significant fraction of labour force Upward trend Higher among nonoffice than office employees Can influence wages and conditions of unorganized workers in the same industry

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-6 The Legal Framework Reflects the changing social attitudes toward unions Played a role in the increase in unions Three phases Prior to Confederation the law discouraged unionization 1870s the law was neutral Post WWII legislation encourages unionization

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-7 Canadian Labour Relations Policy Established the right form unions Collective bargaining protected Bargaining units and representation established Certified unions became exclusive bargaining representative Bargain in good faith Enforced

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-8 Factors Influencing Union Growth and Incidence Substantial but erratic growth Union density higher than U.S., France, Japan lower than Scandinavian countries declined from Collective Agreement Coverage lower than the OECD countries exceeds Japan,New Zealand,U.S.

© 2002 McGraw-Hill Ryerson Ltd.Chapter 14-9 Benefits of Union Representation Demand side higher wages/nonwage benefits greater employment security protection from arbitrary treatment Costs dues, time, potential loss of income

© 2002 McGraw-Hill Ryerson Ltd.Chapter Benefits of Union Representation Supply side administering contracts are costly unions will allocate resources to yield the greatest return success in organizing depends on a variety of factors

© 2002 McGraw-Hill Ryerson Ltd.Chapter Dimensions that Determine Union Status Workers become represented by certified union Union is the exclusive bargaining unit Influenced by workers decisions to become union or nonunion Influenced by the hiring decisions of employers Growth and decline over time

© 2002 McGraw-Hill Ryerson Ltd.Chapter Supply and Demand Framework Level of unionization does not correspond to actual supply and demand government regulation imperfect competition Questioning individuals desire to be unionized provides an estimate of demand

© 2002 McGraw-Hill Ryerson Ltd.Chapter Social Attitudes Toward Unions and Collective Bargaining Affect the receptiveness of employees and resistance of employers Difficult to measure Attitudes becoming less favourable

© 2002 McGraw-Hill Ryerson Ltd.Chapter The Legislative Framework Governing Unionization and Collective Bargaining Legislation influences supply and demand Reflects societys attitudes Difficult to determine the independent impact In Canada lowered cost of unionization restricted employers from discouraging unionization

© 2002 McGraw-Hill Ryerson Ltd.Chapter Other Economic and Social Legislation Direction of effect difficult to determine Raising of employment standards minimum wage, overtime premiums statutory holidays health and safety notice of layoff, severance pay Social Programs

© 2002 McGraw-Hill Ryerson Ltd.Chapter Aggregate Economic Conditions Union growth varies directly with growth of employment eligible for unionization Resistance low when demand for product is high and labour market is tight Unions able to secure wage and benefits when excess of labour demand

© 2002 McGraw-Hill Ryerson Ltd.Chapter Industry and Enterprise Characteristics Unionization higher in larger firms concentrated industries capital-intensive production processes hazardous jobs

© 2002 McGraw-Hill Ryerson Ltd.Chapter Personal Characteristics Part-time workers and intermittent labour net benefits lower costs of higher Women Blue-collar industries Age and experience

© 2002 McGraw-Hill Ryerson Ltd.Chapter End of Chapter Fourteen