1. 1 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition. 14 F O U R T E E N The Union-Management Framework C H A P T E R

2. 2 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition

3. 3 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition What is Union?????????? A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement

4. 4 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition What is Collective Agreement?? A contract negotiated between union and employer, outlining terms and conditions of employment, issues such as *Wages and benefits *Hours of work *Working conditions *Grievance procedure *Safety standards *Probationary periods Work assignments

5. 5 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition UnionUnion Unions do not just happen. They are frequently caused by management action or inaction that workers perceive as unfair

6. 6 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Causes of Unions Why do Employees Join Unions? Reasons for Joining Job dissatisfactionJob dissatisfaction Individual attitudes toward unionsIndividual attitudes toward unions Perceived union instrumentality (beliefs about what unions can do for an employee)Perceived union instrumentality (beliefs about what unions can do for an employee) Reasons for Not Joining Belief that union membership may harm chances for promotionBelief that union membership may harm chances for promotion Extra costs for union dues or strikesExtra costs for union dues or strikes Negative opinions toward unionsNegative opinions toward unions Fair supervisory treatment/policiesFair supervisory treatment/policies

7. 7 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition CANADIANS’ VIEWS TOWARD UNIONS

8. 8 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Union Goals and Philosophy Business Unionism Social (Reform) Unionism Mission to protect workers, increase their pay, improve their working conditions, and help workers in general Tries to influence the economic and social policies of government by speaking out for or against government programs

9. 9 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Union Structure and Function National/International Unions Many local unions are part of a larger national or international union Canadian Auto workers International brotherhood of teamsters Local Unions Provides the members, the revenue, and the power of the union movement Craft Unions Type of local union Composed of workers who possess the same skills or trade The carpenters work in the same area Industrial Unions Type of local union Includes the unskilled and semiskilled workers at a particular location

10. 10 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Union Structure and Function Canadian Labour Congress: CLC Largest labour federation with a total membership of more than 2.5 million employees Functions: *Representing Canada at the international labour organization *Influencing public policy at the federal level *Providing services for its members Unions instruct members on workplace benefits, rights, rules and procedures, while protecting them from unjust firings and layoffs.

11. 11 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Trends in Union Membership Union Growth and Decline –The number of women members in Canadian unions has been increasingly rapidly (almost 50% of union members are female) –Unions are placing greater emphasis on organizing service employees, e.g., Tim Hortons in Ontario, some Starbucks in BC –Quebec has the highest rate (36.9%) of unionization; Alberta (21.8%) has the lowest union density

12. 12 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Trends in Union Membership –Part-time workers are less likely to be unionized (23.3%) than full-time workers (31.5%) –Larger workplaces are more likely to be unionized Global Trends –A number of countries have experienced a decline in union density

13. 13 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Impact of Union Representation Productivity Wages & benefits Strikes Most collective agreements are settled without a strike or lockout Higher wages, particularly for part- time employees More comprehensive benefits Relationship between unionization and productivity is subject to debate *Reduce employee turnover *Raise productivity or output per worker

14. 14 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition THE LEGAL ENVIRONMENT Federal jurisdiction over labour relations is limited to organizations involved in interprovincial trade and commerce (e.g., banks, airlines, railways, federal government agencies).

15. 15 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition THE LEGAL ENVIRONMENT Canadian Labour Legislation Common Core of LabourLegislation Right to join a union Good-faithbargaining No strikes or lockouts during agreement Conciliation Before strike or lockout Prohibition of unfair labour practices

16. 16 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Labour Relations Boards Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation Investigate violation of the law and have the power to investigate and make decisions, e.g., enforce unfair labour practice allegations

17. 17 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition ENVIRONMENTAL FACTORS THAT MAY LEAD TO UNIONIZATION External Factors –Recent changes in labour laws –Increase in unionization activity –Major increase in the workforce is planned Internal Factors –High turnover and absenteeism rates –Employees are dissatisfied –Pay and benefits are below average –Complaint procedures are ineffective

18. 18 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Unfair Labour Practices by…… ManagementUnions Interfering in the formation of a union or contributing financially Discriminating based on union membership or because employee exercises rights Intimidating an employee to join/not join Trying to bargain when the union is not the certified agent Persuading employees during working hours, or at the workplace to join/not join Engaging in, encouraging Illegal strikes Failing to represent employees fairly

19. 19 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Obtaining Bargaining Rights Legal recognition may be obtained in 3 ways: Voluntary recognition: If a union organised a majority of employees and the employer is satisfied that union did not apply undue pressure in the organisation process. The employer then accepts the union as the legal rights to bargaining agent without any third party involvement Certification by a labour relation Board Alberta, British Colombia, Newfoundland, Nova Scotia and Ontario do not automatically certify unions rather go for election whether union has got sufficient support

20. 20 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Obtaining Bargaining Rights Prehearing votes: When there are significant indications that an employer has committed unfair labour practices to prevent unionization. In such case a union can ask an LRB to conduct a prehearing vote.

21. 21 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition NEGOTIATING A COLLECTIVE AGREEMENT Once a union is certified, the union and management are required to bargain in good faith to negotiate a collective agreement. The collective bargaining process has three overlapping phases:  Phase 1—Preparation for Negotiations Often the most critical stage,Detailed preparations are required to achieve objectives  Phase 2—Negotiating with the Union Face-to-face bargaining  Phase 3—Approving the Proposed Agreement  Bargaining stage of negotiations is completed when the agreement has been approved

22. 22 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition 3 Phases of Collective Bargaining Phase 1 Preparingfornegotiations Phase 2 Negotiating with the union Phase 3 Approving the proposed agreement

23. 23 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Mutual Gains Bargaining Moves away from traditional adversarial approach Win-win approach Joint problem-solving activities Usually preceded by conflict resolution training Requires both parties to have commitment, trust, respect & a long-term focus

24. 24 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition ConciliationConciliation All jurisdictions provide for conciliation and mediation services when labour and management negotiations break down Conciliation –A government-appointed third party attempts to bring together the parties to reconcile their differences – Appointed at the request of either one or both parties or at the discretion of the minister of labour (federal or provincial) –In most provinces, no strike action is permitted before a conciliation effort has been made

25. 25 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition MediationMediation Process whereby disputing parties choose voluntarily to reconcile their differences through a third party

26. 26 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Administering the Collective Agreement Grievance –is a complaint by an employee or employer that alleges that some aspect of a collective agreement has been violated Grievance procedures –Most collective agreements include formal multi-step procedures to resolve grievances

27. 27 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Administering the Collective Agreement Arbitration –is used to resolve a grievance when an acceptable solution cannot be reached. Process may be costly, highly legalistic and is final i.e. usually cannot be changed or revised

28. 28 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Contract Provisions Union Shop: a union security provision in which employers may hire anyone they want, but all workers must join the union within a specified period Dues check-off is a common provision in collective agreements and requires an employer to deduct union dues at source from the wages of an employee and remit the funds to the union

29. 29 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Contract Provisions Seniority—length of the worker’s employment, which may be used for determining order of promotion, layoffs, vacation, etc. Discipline—employer must have “just cause” to discipline or discharge an employee is a feature of many collective agreements

30. 30 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Implications (proposition) of Union Avoidance In non-union facilities, an implicit objective of many employers is to remain non-union Union Suppression –Involves fighting union representation –An employer may try to intimidate workers, threaten closing or moving the plant or facility, or discriminate against union supporters Union Substitution

31. 31 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Implications of Union Avoidance Union Substitution Examines what unions bring to the employment relationship and tries to introduce these features into the non-union workplace Advocated by many HR practitioners, consultants, and labour lawyers

32. 32 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Implications of Union Avoidance Features of Union Substitution Design satisfying jobs i.e. personally satisfying to employees Maximize opportunities—develop plans that maximize individual opportunities while minimizing possibility of layoffs Select qualified workers Establish fair standards of individual performance Train workers and managers to enable them to achieve expected levels of performance Evaluate based on performance Employee “voice” i.e. provide employees with a “voice” in the workplace Pay and benefits are parallel to those available in the union sector

33. 33 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Features of Union Substitution Union Substitution Employees have “voice” Pay/benefits are parallel Evaluate based on performance Maximizeopportunities Design satisfying jobs Select qualified workers Train workers & managers Establish fair standards

34. 34 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Managing in a Union Environment There is increasing acceptance that labour and management must cooperate and work together in order to survive and prosper in the highly competitive global economy  There is growing evidence that organizational performance is enhanced when labour and management cooperate

35. 35 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Managing in a Union Environment Unions impact the HRM function: HR department may expand to add labour relations specialists Greater centralization of employee record- keeping and discipline to ensure uniformity Line managers lose some authority to HR Management has less freedom

36. 36 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition Labour-Management Cooperation Organizational performance is enhanced when labour and management cooperate Cooperative methods include: –Prior consultation –Sincere concern –Training programs –Joint study committees –Third parties

37. 37 Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved.Schwind 8th Canadian Edition. 14 F O U R T E E N The Union-Management Framework C H A P T E R