Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. CHAPTER 9 Understanding Labour- Management Relations

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-2 Learning Objectives Explain why workers unionize Trace the evolution 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-3 Labour Unions Groups of individuals working together to achieve job-related goals higher pay reasonable work hours better working conditions better job security benefits

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-4 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-5 The History of Unions in Canada : early unions of crafts people emerged in the Maritimes 1873: national labour organization formed - “Canadian Labour Union” 1883: the Canadian Labour Congress (CLC) - until : the Canadian Trades and Labour Congress (TLC) formed 1908: membership in American unions resulted in development of the Canadian Federation of Labour (CFL) 1927: All-Canadian Congress of Labour (ACCL) formed

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-6 Unionism Today Unions are experiencing difficulties in attracting new members Union membership as a percentage of the total workforce is declining Diversity in the workforce consists of people who are not traditionally members of a union women, ethnic minorities Employers are engaging in more anti-union activities, including more employee-friendly workplaces

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-7 The Legal Environment for Unions in Canada 1900: Conciliation Act 1907: Industrial Disputes Investigation Act 1943: Privy Council Order : Constitution Act The Canada Labour Code Canada Industrial Relations Regulations of the Canadian Labour Code

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-8 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc. 9-9 Canada Industrial Relations Regulations Right to join a trade union Certification procedures for trade unions Acquisition or termination of bargaining rights Requirements for conciliation officer appointment as required Conditions required for legal strike or lockout

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Provincial Labour Relations Legislation Labour legislation for firms operating under provincial authority fair employment practices wages and work hours vacations and holidays maternity benefits and sick leave employee safety job and income security industrial relations regulations

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Organizing 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 manufacturing plant Powers of locals vary and may include collective bargaining on behalf of members disciplining members who violate contract standards handling employee grievances with management

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Union Officers and Functions Shop steward liaison between union members and supervisors Business agent/representative the same role as a shop steward, but in a very large union

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Typical Union Organization

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Union Shop Employer may hire unionized or non- unionized employees Once hired, all employees who are not unionized are required to join the union within a specified period of time Time period is usually 30 days

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 in Quebec certified under the Quebec Labour Code

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Open Shop An employer may hire union or non-union employees Employees are not required to join the union after hire, nor are they required to pay union dues

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc 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 Union members vote to accept or reject a tentative agreement through a ratification vote If accepted, the contract is signed and becomes the Collective Agreement If rejected, management and union can resort to different tactics to influence the process

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc The Bargaining Zone Union’s demands Union’s expectations Union’s minimum limit Bargaining Zone Employer’s maximum limit Employer’s expectations Employer’s desired result

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Union Tactics Strike withdraw labour services Boycott members refuse to buy products produced by their firm, and may lobby others to do the same Picket members may picket the company and have large signs at the company entrance Slowdown workers perform their jobs at a slower pace, limiting production

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Management Tactics Lockout 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

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Decertification The process by which employees terminate their union’s right to represent them The union organizes membership meetings, house-to-house visits, and other tactics Employers may use meetings, letters, improved working conditions A vote is held to decide whether or not to decertify the union

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Conflict Resolution Methods Mediation appoint a third-party conciliator to recommend a solution 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 arbitration may be voluntary or compulsory essential services like fire and police protection

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Voluntary Arbitration & Compulsory Arbitration Voluntary arbitration Settles a contract dispute by having a third party hear union and management arguments and issue a binding resolution (voluntary cooperation) Compulsory arbitration Settles a contract dispute by having management and union forced to let a neutral third party issue a binding resolution (non-voluntary cooperation)

Business Fifth Canadian edition, Griffin, Ebert & Starke © 2005 Pearson Education Canada Inc Contract Administration Both parties must adhere to the specifications of the Collective Agreement 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