Strikes & Dispute Resolution Chapter 9 © 2012 Nelson Education Ltd.

Copyright © 2012 Nelson Education Ltd. Learning Objectives  At the end of this chapter, you will be able to discuss:  the different types of industrial disputes  the various statistics used to measure strikes  the theories, causes and impacts of strikes  typical grievances and arbitration procedures  other common conversion and alternative dispute resolution procedures and  why nonunion employers also use grievance and alternative dispute resolution mechanisms 9-2

Copyright © 2012 Nelson Education Ltd. Defining Industrial Disputes  Industrial Dispute  disagreement arising in connection with a collective agreement  entering, renewing, or revising  Strike  work stoppage invoked by a union 9-3

Copyright © 2012 Nelson Education Ltd. Defining Industrial Disputes  Work to Rule  employees perform only to minimum standard required  Wildcat Strikes  illegal strike during the term of the collective agreement 9-4

Copyright © 2012 Nelson Education Ltd. Defining Industrial Disputes  Lockout  a work stoppage invoked by management 9-5

Strike Statistics  Total number, frequency  Number of workers involved  Person-days not worked  Percentage of working time lost 9-6 Copyright © 2012 Nelson Education Ltd.

Strike Statistics 9-7 Copyright © 2012 Nelson Education Ltd.

Strike Statistics 9-8 Copyright © 2012 Nelson Education Ltd.

Strike Trends  By region  PEI, Territories vs Ontario, BC  By industry  tourism vs manufacturing  Internationally  standards for reporting vary  comparisons difficult 9-9 Copyright © 2012 Nelson Education Ltd.

9-10 Theories, Causes, & Impacts of Strikes Kramer and Hyclak:  three common theories of strikes  Accident theory  Total joint costs  Asymmetric information Copyright © 2012 Nelson Education Ltd.

9-11  Strikes represent accidents  Rational negotiators avoid high costs of work stoppage  Strikes should be unexpected  errors at the bargaining table  misunderstandings of goals  mismatched expectations Accident (or Hicks) Theory Copyright © 2012 Nelson Education Ltd.

9-12  Strikes more likely when  cost of strike is relatively low for both parties  cost of settling is high compared to cost of striking  Difference in cost of strike to one party relative to the other shifts bargaining power Copyright © 2012 Nelson Education Ltd. Total Joint Costs Theory

9-13 Asymmetric Information Theory  Strike or lock to call the other side’s bluff  Strike to gather more information about other party’s claims  information not easily accessible in other ways Copyright © 2012 Nelson Education Ltd.

9-14  Catalysts  single event  Insolated and Homogeneous Groups  unpleasant work  strong bonds Copyright © 2012 Nelson Education Ltd. Strike Causes

9-15  Management Indifference or Unresolved Grievances  Frustration-Aggression  Economic Factors  Intra-Organizational Factors Copyright © 2012 Nelson Education Ltd. Strike Causes

9-16  Economic  Value of firm  Employee finances  Worker Well-Being  Relationships, rapport  Commitment Copyright © 2012 Nelson Education Ltd. Strike Impacts

9-17 Grievances  Grievance A formal complaint that a specific clause in the collective agreement has been violated  Types of grievances  Individual  Group  Union or Policy initiated by union leadership Copyright © 2012 Nelson Education Ltd.

9-18 Grievance Procedure Parties  employee often the initiator of the grievance  union usually first represented by shop steward  management usually first represented by immediate supervisor  third parties mediators, arbitrators Copyright © 2012 Nelson Education Ltd.

9-19 Process  Informal stage not required, often not in collective agreement  Formal Step 1 employee, supervisor, written Continued… Grievance Procedure Copyright © 2012 Nelson Education Ltd.

9-20  Formal Step 2 next level of management/union reviews  Formal Step 3 executive level review, several members present  Formal Step 4 third party intervention Grievance Procedure Copyright © 2012 Nelson Education Ltd.

9-21  Grievor Characteristics  minor role  Management Characteristics  stricter discipline  consideration  Union Characteristics  informal resolution, training Grievance Initiation Copyright © 2012 Nelson Education Ltd.

9-22  Rights (or Grievance) Arbitration concerning alleged violations of the collective agreement  Interest Arbitration determines terms and conditions of collective agreement while its being negotiated Arbitration Copyright © 2012 Nelson Education Ltd.

9-23  Similar to legal proceedings  prima facie case  evidence  culpable  Key differences  may follow Jurisprudence but not required  probable cause  final and binding The Process Copyright © 2012 Nelson Education Ltd.

 Mitigation Factors  argued by the union to reduce a sanction work record length of service isolated event inconsistent application of rules 9-24 The Process Copyright © 2012 Nelson Education Ltd.

 Written decision  grievance denied  grievance upheld  grievance partially upheld 9-25 The Process Copyright © 2012 Nelson Education Ltd.

9-26 Key Arbitration Issues Copyright © 2012 Nelson Education Ltd.

9-27 The Forms of Arbitration  Conventional Tripartite Arbitration  most common  three member board  neutral chairperson  Sole Arbitration  neutral chair only  Expedited Arbitration  short time frame, no choice Copyright © 2012 Nelson Education Ltd.

Problems with Grievance Arbitration  Long delay  Costly  “Outsider” factor  Increasingly legalistic 9-28 Copyright © 2012 Nelson Education Ltd.

9-29 Interest Arbitration  Resolves disagreement during bargaining  Alternative to prohibited strike  Conventional Interest Arbitration  arbitrator can choose among the proposals or fashion another Copyright © 2012 Nelson Education Ltd.

9-30 Interest Arbitration Copyright © 2012 Nelson Education Ltd.  Final Offer Arbitration  arbitrator must choose one of the parties’ proposals  First Agreement (First Contract) Arbitration  arbitration that determines the first collective agreement

9-31 Alternative Dispute Resolution  ADR  resolving disputes without going to court  Grievance Mediation  voluntary non-bidding process  neutral third party examines the grievance Copyright © 2012 Nelson Education Ltd.

Alternative Dispute Resolution  Adopted in non union firms  high performance work system  alternative to litigation  union substitution 9-32 Copyright © 2012 Nelson Education Ltd.

Summary A variety of conversion mechanisms  Strikes  theories and impacts  Grievances  Arbitration  rights, interest  Alternative dispute mechanisms  mediation and conciliation Copyright © 2012 Nelson Education Ltd. 9-33