1. Public Sector Issues Chapter 11 © 2012 Nelson Education Ltd.

2. Copyright © 2012 Nelson Education Ltd. Learning Objectives  At the end of this chapter, you will be able to discuss:  why the public sector is a special industry  the factors accounting for public sector union growth  theoretical differences between private and public sectors  bargaining power  essential services and special dispute resolution procedures and  management issues such as restructuring, privatization and HR practice differences 11-2

3. Copyright © 2012 Nelson Education Ltd. Why Study Public Sector Labour- Relations Management  A significant industry  Highly unionized  Important part of the labour movement in Canada  Different legislative framework 11-3

4. Copyright © 2012 Nelson Education Ltd. Why Study Public Sector Labour- Relations Management  Collective bargaining coverage  Statistic representing all employees covered by collective agreement as a percentage of the labour force  union and nonunion employees 11-4

5. Collective Bargaining Coverage 11-5 Copyright © 2012 Nelson Education Ltd.

6. 11-6 Why Study Public Sector Labour- Relations Management  Dual role of government  umpire and employer  Imperfect labour market  monopoly/monopsony  public good consumption does not reduce amount available  Politics and public opinion Copyright © 2012 Nelson Education Ltd.

7. 11-7 History of Public Sector Bargaining  Union Growth Factors  social upheaval  the growth in public services  dissatisfaction with voice mechanisms continued… Copyright © 2012 Nelson Education Ltd.

8. 11-8  Union Growth Factors  union mergers  relative absence of employer opposition  removal of legal barriers History of Public Sector Bargaining Copyright © 2012 Nelson Education Ltd.

9. 11-9  Greater union power  service disruption presents a danger to public health and safety  demand is relatively inelastic  affected public can punish only one party An Economic Analysis of Union Power Copyright © 2012 Nelson Education Ltd.

10. 11-10  Mechanisms designed to avoid strikes  possible irreparable harm to the public  excessive wage gains in negotiations  Canadian patchwork of strike policies  conditional right to strike  interest arbitration  choice of mechanism Dispute Resolution in the Public Sector Copyright © 2012 Nelson Education Ltd.

11. 11-11 Recent Developments in Dispute Resolution  Unfettered-Strike Model  blue collar workers in local government  all provinces since WWII  most freely negotiated settlements  works best when the services are not essential Copyright © 2012 Nelson Education Ltd.

12. 11-12 Recent Developments in Dispute Resolution  Essential Services  significant bargaining power to unions  determine services in a strike or lockout Copyright © 2012 Nelson Education Ltd.

13. 11-13  Unfettered-Strike Model  works best when services are not essential  produces most freely negotiated settlements  Invites back to work legislation Recent Developments in Dispute Resolution Copyright © 2012 Nelson Education Ltd.

14. 11-14  Designation Model  parties negotiate to determine essential services before bargaining starts or at the point of impasse  neutral tribunals can adjudicate  most common for nurses Recent Developments in Dispute Resolution Copyright © 2012 Nelson Education Ltd.

15. 11-15  No Strike (Interest Arbitration) Model  right to strike is substituted with interest arbitration  declining in popularity in Canada Recent Developments in Dispute Resolution Copyright © 2012 Nelson Education Ltd.

16. 11-16 Recent Developments in Dispute Resolution  Chilling Effect  lack of bargaining flexibility caused by the parties’ fear a concession made in negotiations will reduce the arbitration outcome Copyright © 2012 Nelson Education Ltd.

17. 11-17 Recent Developments in Dispute Resolution  Narcotic or Dependency Effect  result of frequent use of arbitration  parties may lose ability to freely negotiate settlements without third party assistance  final offer arbitration designed to reduce these effects Copyright © 2012 Nelson Education Ltd.

18. 11-18  Impact on Wage Outcomes  higher under interest arbitration  Loss of Control  especially budgetary control  Innovations in Dispute Resolution  interest-based bargaining  mediation-arbitration Innovations in Dispute Resolution Copyright © 2012 Nelson Education Ltd.

19. 11-19 Management Issues  Restructuring  New Public Management (NPM)  decentralized, market driven, concerned with financial control  managers more empowered, performance oriented  Privatization  contacting out Copyright © 2012 Nelson Education Ltd.

20. 11-20  Government Policies  Management Employees downsized and downgraded  Unionized Employees concessions legislated wage cuts Implications of Restructuring Copyright © 2012 Nelson Education Ltd.

21. Management Issues  Innovation  Socio-technical systems design workers are complements to, not simply extensions of, technology participation, communication and collaboration are encouraged Copyright © 2012 Nelson Education Ltd. 11-21

22. Union Issues  Reaction to privatization  Acquiescence  Traditional Collective Bargaining  Creative/Proactive Copyright © 2012 Nelson Education Ltd. 11-22

23. Union Issues 11-23 Copyright © 2012 Nelson Education Ltd.

24. Summary  Public sector IR plays an important role in Canadian society  Government's dual role  Essential public services  Special dispute resolution procedures  New public management  Privatization Copyright © 2012 Nelson Education Ltd. 11-24