1. INDUSTRIAL RELATIONS IN CANADA Third Edition Fiona A. E. McQuarrie Prepared by Kenda Murphy, Saint Mary’s University Kenda Murphy, Saint Mary’s University

2. Chapter 9 Strikes and Lockouts

3. At the end of this chapter you should be able to:At the end of this chapter you should be able to:  Define a strike and a lockout  Explain why a strike or lockout would be used as a bargaining tactic  Outline the legislative guidelines for the use of a strike or a lockout in bargaining  Describe an essential service  Outline legislative guidelines on picketing  Explain what replacement workers are and when and how they might be used in strikes  Assess the impact of strikes in Canada Chapter 9 Objectives

4. Strikes and Lockouts Defining Strikes and LockoutsDefining Strikes and Lockouts  A strike occurs when union members in a bargaining unit withdraw their labour  A lockout occurs when the employer closes all or part of the workplace so that workers cannot enter the premises to perform their jobs Industrial action and industrial conflict also describe both strikes and lockoutsIndustrial action and industrial conflict also describe both strikes and lockouts

5. Strikes and Lockouts A legal strike or lockout can take place only while collective bargaining is in progress but actually occurs because negotiations have broken downA legal strike or lockout can take place only while collective bargaining is in progress but actually occurs because negotiations have broken down In most Canadian jurisdictions, the employer is prohibited from dismissing striking employees during a strikeIn most Canadian jurisdictions, the employer is prohibited from dismissing striking employees during a strike Work does not have to stop completely for a legal strike to occur but can take the form of a work ‘slowdown’Work does not have to stop completely for a legal strike to occur but can take the form of a work ‘slowdown’

6. Strikes and Lockouts Strikes can take the form of rotating strikes and work-to-rule campaigns that occur when workers apply the most narrow interpretation of the terms of their collective agreement in order to slow productionStrikes can take the form of rotating strikes and work-to-rule campaigns that occur when workers apply the most narrow interpretation of the terms of their collective agreement in order to slow production Strikes happen with the purpose of inflicting “economic pain” on the other side to force acceptance of bargaining demandsStrikes happen with the purpose of inflicting “economic pain” on the other side to force acceptance of bargaining demands The party that ‘wins’ is usually the one that is better able to withstand the economic painThe party that ‘wins’ is usually the one that is better able to withstand the economic pain

7. Motivations for Striking or Locking Out Complex motivations for strikes and lockouts:Complex motivations for strikes and lockouts:  “Strikes as mistakes”: strikes or lockouts occur as a result of mistaken perceptions developed during bargaining; some reasons for inaccurate perceptions: Lack of bargaining experienceLack of bargaining experience Limited disclosures of informationLimited disclosures of information Complexity of issuesComplexity of issues Miscalculations of the other side’s positionMiscalculations of the other side’s position Changes in the parties’ expectations during bargainingChanges in the parties’ expectations during bargaining  “Strikes as collective voice”: strikes and lockouts are likely to occur due to mistrust in the union-management relationship

8. Factors in the Decision to Strike Business Structure: size of the bargaining unitBusiness Structure: size of the bargaining unit  Larger units are more likely to strike than smaller units in part because more workers are involved in a larger bargaining unit and more labour is withdrawn with greater impact  However, strikes involving smaller bargaining units tend to be on strike longer than those involving larger bargaining units

9. Factors in the Decision to Strike Individual FactorsIndividual Factors  It is the union membership that gives the mandate to strike so it makes sense that loyal union members will be more likely to support a strike  Another assessment which also plays a role is the nature and quality of the relationship between the parties and whether strikes have been resorted to in past negotiations

10. Factors in the Decision to Strike Economic Conditions: factors such as the unemployment rate, financial position of the company, general profit position in the industry, and stage in the employer’s business cycleEconomic Conditions: factors such as the unemployment rate, financial position of the company, general profit position in the industry, and stage in the employer’s business cycle Legislative Restrictions: despite the fact that most strikes are banned during the life of the agreement Canada has a long history of such strike actions occurring during the term of the collective agreementLegislative Restrictions: despite the fact that most strikes are banned during the life of the agreement Canada has a long history of such strike actions occurring during the term of the collective agreement Bargaining Process Factors: difficult negotiations or critical bargaining issues may be resolved through strike or the threat of strikeBargaining Process Factors: difficult negotiations or critical bargaining issues may be resolved through strike or the threat of strike

11. How Does a Strike or Lockout Begin? There are several general pre-conditions to a strike or lockoutThere are several general pre-conditions to a strike or lockout  A legal strike or lockout can occur only during collective bargaining and when an existing collective agreement has expired; a strike that takes place during the term of a collective agreement is known as a wildcat strike  A legal strike must be authorized by a secret ballot strike vote and in most provinces, a majority vote (usually 50% + 1) is required for a strike mandate  Most jurisdictions require third party intervention before a strike/ lockout can take place

12. How Does a Strike or Lockout Begin? A vote in favour of a strike does not guarantee that a strike will occur but if a union is going to strike, it must give notice to the other party of when it will beginA vote in favour of a strike does not guarantee that a strike will occur but if a union is going to strike, it must give notice to the other party of when it will begin Most jurisdictions have legislation that restricts or forbids workers in essential services from strikingMost jurisdictions have legislation that restricts or forbids workers in essential services from striking An essential service is being performed when its withdrawal would cause a threat to public safety or health e.g. police officersAn essential service is being performed when its withdrawal would cause a threat to public safety or health e.g. police officers Governments can use ‘back to work legislation’ or access the courts to end disputes but those actions can often cause long term difficulty in the relationshipGovernments can use ‘back to work legislation’ or access the courts to end disputes but those actions can often cause long term difficulty in the relationship

13. What Happens When a Strike or Lockout Takes Place Striking workers may seek other employment in order to supplement their strike payStriking workers may seek other employment in order to supplement their strike pay Collective bargaining may resume during a strike or lockoutCollective bargaining may resume during a strike or lockout One party may refuse to return to the bargaining table due to pressure of a strike or lockoutOne party may refuse to return to the bargaining table due to pressure of a strike or lockout Two major factors affect how a strike or lockout proceeds once it begins:Two major factors affect how a strike or lockout proceeds once it begins:  Picketing  The use of replacement workers

14. Picketing Picketing serves two main functions:Picketing serves two main functions:  It attempts to help strikers gain public support  It discourages individuals from entering the premises Attempting to regulate picketing can be complex but the following offers some general guidelines:Attempting to regulate picketing can be complex but the following offers some general guidelines:  Shared premises: if the employer shares premises with businesses not involved with the action, the picketers must not interfere with the enterprise of those other businesses  Secondary picketing: picketers go to suppliers of the business or locations that are not taking action

15. Picketing Purpose of secondary picketing is to restrict the employer from using a secondary location to carry out work that would usually be done at the location of the strike or lockoutPurpose of secondary picketing is to restrict the employer from using a secondary location to carry out work that would usually be done at the location of the strike or lockout Secondary picketing is also intended to hamper the employer’s ability to generate revenueSecondary picketing is also intended to hamper the employer’s ability to generate revenue For secondary picketing of the employer’s suppliers or other business associates to be considered legal, the union must prove that the supplier or associate does business only or primarily with the employer who is the object of the strikeFor secondary picketing of the employer’s suppliers or other business associates to be considered legal, the union must prove that the supplier or associate does business only or primarily with the employer who is the object of the strike

16. Picketing Compliance with the LawCompliance with the Law  Everyone involved in the strike or lockout must act according to the law  Destruction of property, physical violence, or intimidation of individuals entering or leaving the employer’s premises is not legal Adherence to the FactsAdherence to the Facts  Picket signs and information leaflets distributed by picketers must contain factual statements and must not be libelous

17. Picketing Union members may choose to cross their own picket line or the picket line of another striking union usually because they do not agree with the strikeUnion members may choose to cross their own picket line or the picket line of another striking union usually because they do not agree with the strike The slang term for a person who crosses a picket line or is a replacement worker is a scabThe slang term for a person who crosses a picket line or is a replacement worker is a scab Pressure may be brought to bear through the union requesting a boycott declaration or a hot declaration which would see other union members having the right to not handle the goods of the struck companyPressure may be brought to bear through the union requesting a boycott declaration or a hot declaration which would see other union members having the right to not handle the goods of the struck company

18. Replacement Workers Theoretical arguments in favour of permitting replacement workers:Theoretical arguments in favour of permitting replacement workers:  The employer’s business should not be affected by the decision of the workers to withdraw their labour  A prolonged shutdown or reduction in production could cause the business lasting harm  If striking workers are not banned from earning money from other sources of employment, it is unfair to ban the employer from earning money from its business operations during a strike

19. Replacement Workers Theoretical arguments against permitting replacement workers:Theoretical arguments against permitting replacement workers:  Giving the employer the ability to use replacement workers unduly favours of the employer  The ability to replace striking workers removes any economic incentive the employer might have had to concede to the union’s demands  The use of replacement workers creates a great potential for picket line violence

20. Replacement Workers B.C. and Ontario forbid the use of professional strike breakers—individuals whose sole source of employment is replacing striking workersB.C. and Ontario forbid the use of professional strike breakers—individuals whose sole source of employment is replacing striking workers Managers may do the work of union members at a struck location but only if they were managers at that location before the action beganManagers may do the work of union members at a struck location but only if they were managers at that location before the action began In some jurisdictions there will be provision for replacement workers in essential servicesIn some jurisdictions there will be provision for replacement workers in essential services Most jurisdictions provide that the worker on strike must be given priority over a replacement worker when the dispute endsMost jurisdictions provide that the worker on strike must be given priority over a replacement worker when the dispute ends

21. Ending a Strike or Lockout A strike or lockout ends when:A strike or lockout ends when:  The parties at the bargaining table reach a collective agreement, or  One party chooses to cease its actions and, usually, returns to bargaining The length of time it takes to reach either of these points depends on several factors, the most important being the parties’ ability to endure the economic impact of a strike or lockoutThe length of time it takes to reach either of these points depends on several factors, the most important being the parties’ ability to endure the economic impact of a strike or lockout

22. Ending a Strike or Lockout Withstanding economic pain is different for each party:Withstanding economic pain is different for each party:  The Union: may have banked resources to maintain strike pay over a long period and employees may be able to secure other work  The Employer: like the union may have resources set aside to offset the impact of a shutdown May also have sufficient inventory on hand, or enough alternative sources of income, to allow it to continue production or operationsMay also have sufficient inventory on hand, or enough alternative sources of income, to allow it to continue production or operations

23. Ending a Strike or Lockout Studies suggest that an employer who is allowed to use replacement workers is more likely to compel the union into settling a collective agreement quicklyStudies suggest that an employer who is allowed to use replacement workers is more likely to compel the union into settling a collective agreement quickly If the majority of a bargaining unit accepts a proposed collective agreement in a ratification vote, and a new collective agreement is signed, the strike formally endsIf the majority of a bargaining unit accepts a proposed collective agreement in a ratification vote, and a new collective agreement is signed, the strike formally ends The union and employer will usually agree on the return to work conditions, including the return to work deadlineThe union and employer will usually agree on the return to work conditions, including the return to work deadline

24. Putting Canada’s Strike Record in Context The measure of strike and lockout activity most often used in Canadian strike records is lost person-days—the number of days of labour lost in a year because of industrial disputesThe measure of strike and lockout activity most often used in Canadian strike records is lost person-days—the number of days of labour lost in a year because of industrial disputes Canada is held to be more strike-prone than other industrialized nations, however, Canada has not experienced a significant loss of work time in recent periods-never more than 6/10 th of 1%Canada is held to be more strike-prone than other industrialized nations, however, Canada has not experienced a significant loss of work time in recent periods-never more than 6/10 th of 1%

25. Putting Canada’s Strike Record in Context Comparing data on work stoppages in different countries is difficult because of varying legislation, definitions, and data collection methodsComparing data on work stoppages in different countries is difficult because of varying legislation, definitions, and data collection methods While Canada has fewer strikes than other industrialized nations, Canadian strikes tend to be longer than strikes in other countries, which accounts for a relatively high number of lost workdaysWhile Canada has fewer strikes than other industrialized nations, Canadian strikes tend to be longer than strikes in other countries, which accounts for a relatively high number of lost workdays

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