Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 15–1 Part 5: Employee Relations...

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 15–1

Part 5: Employee RelationsPart 5: Employee RelationsPart 5: Employee RelationsPart 5: Employee Relations

Chapter 15: Union/Management Chapter 15: Union/Management RelationsRelations

Prepared by Linda Eligh, University of Western Ontario


Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

After you have read this chapter, you should be able to:

1. Describe what a union is and explain why employees join unions.

2. Discuss decline in union membership in Canada.

3. Explain the roles of the federal and provincial governments in labour relations.

4. Discuss the stages of the unionization process.

5. Describe the issues involved in preparing for contract negotiation.

6. Describe the typical collective bargaining process.

7. Explain the grievance procedure and why it is important for employers.


Nature of UnionsNature of UnionsNature of UnionsNature of Unions

• UnionA formal association of workers that promotes the

interests of its members through collective action.

• Why Employees UnionizeThey are dissatisfied with how they are treated by

their employers.They believe that unions can improve their work

situations.


Factors Leading to Employee Unionization Factors Leading to Employee Unionization Fig. 15-1Fig. 15-1Factors Leading to Employee Unionization Factors Leading to Employee Unionization Fig. 15-1Fig. 15-1


Typical Division of HR Responsibilities: Labour Typical Division of HR Responsibilities: Labour Relations Relations Fig. 15-2Fig. 15-2

Typical Division of HR Responsibilities: Labour Typical Division of HR Responsibilities: Labour Relations Relations Fig. 15-2Fig. 15-2


Global Labour Union IssuesGlobal Labour Union IssuesGlobal Labour Union IssuesGlobal Labour Union Issues

• Union membership is falling in advanced countries.

• High unemployment is creating pressure for change.

• Child labour is an issue in some countries, outsourcing is in others.

• Co-determinationA practice whereby union or worker representatives

are given positions on a company’s board of directors.


Union Membership as a Percentage of the Workforce for Union Membership as a Percentage of the Workforce for Selected Countries Selected Countries Fig. 15-3Fig. 15-3

Union Membership as a Percentage of the Workforce for Union Membership as a Percentage of the Workforce for Selected Countries Selected Countries Fig. 15-3Fig. 15-3


Unions in CanadaUnions in CanadaUnions in CanadaUnions in Canada

• Union Movement Emphases:Focused on “bread-and-butter” economic issues—

wages, benefits, job security, and working conditions.

Organized by kind of job and employer.

Seek multi-year collective agreements on economic issues as “contracts.”

Maintain competitive relations with management.


Union StructureUnion StructureUnion StructureUnion Structure

• Craft Union A union whose members do one type of work, often using

specialized skills and training.

• Industrial Union A union that includes many persons working in the same industry

or company regardless of jobs held.

• Federation A group of autonomous national and international unions.

• Union Mergers Trend since the 1990s - unions also find strength in size. Reflects

the mergers of Canadian corporations and demands by members for more efficient bargaining and administrative services.


Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)

• National and International UnionsUnions that determine broad union policy and offer

services to local union units. May also keep financial records and provide a base from which an organizing drive can take place.

• Local UnionA union centered around either a particular employer

or a particular geographic location. Business Agent - a full-time union official who operates the union

office and assists union members. Union Steward - an employee elected to serve as the first-line

representative of unionized employees.


Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)

• Alternative Employee Representation ModelAlternative ways in which workers can achieve non-

union representation without having to go through the formal unionization process.

Arrangements that cannot acquire formal labour relations rights, but can develop group employment contracts similar to union agreements.

Substitutes to unionsProfessional organizationsNon-union staff associations


Union Membership in CanadaUnion Membership in CanadaUnion Membership in CanadaUnion Membership in Canada

• Union DensityThe proportion of paid workers who are union

members and who have signed union membership cards.

A commonly used indicator of the strength and potential influence of the labour movement in a country.

Peaked at 39% in Canada in mid-1980s.Though unionization in Canada is much higher

than in the U.S., decline of unionization is a mounting concern among Canadian union organizers.


Rate of Union Coverage Canada Rate of Union Coverage Canada and Provinces 1999-2003 and Provinces 1999-2003 Fig. 15-4Fig. 15-4

Rate of Union Coverage Canada Rate of Union Coverage Canada and Provinces 1999-2003 and Provinces 1999-2003 Fig. 15-4Fig. 15-4



Reasons for Union Membership Decline Deregulation, foreign competition, more people looking for jobs Firms believe unions increase business costs compared with non-

union alternatives Management has taken a more activist stance against unions

than in previous years of union growth


Reasons for Union Membership DeclineReasons for Union Membership DeclineReasons for Union Membership DeclineReasons for Union Membership Decline

Industrial ChangesIndustrial Changes Industrial ChangesIndustrial Changes

Geographic ChangesGeographic ChangesGeographic ChangesGeographic Changes Workforce ChangesWorkforce ChangesWorkforce ChangesWorkforce Changes

Declining Declining Union Union

MembershipMembership

Declining Declining Union Union

MembershipMembership


Union Membership by Industry Union Membership by Industry Fig. 15-5Fig. 15-5Union Membership by Industry Union Membership by Industry Fig. 15-5Fig. 15-5


Union Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership Growth

ProfessionalProfessionalWorkersWorkers

ProfessionalProfessionalWorkersWorkers

Contingent andContingent andPart-Time WorkersPart-Time Workers

Contingent andContingent andPart-Time WorkersPart-Time Workers

Low-SkillLow-SkillWorkersWorkers

Low-SkillLow-SkillWorkersWorkers

Union Union OrganizingOrganizing

Union Union OrganizingOrganizing


Changes in Union CoverageChanges in Union Coverage between 1997 and 2002 between 1997 and 2002 Fig. 15-6Fig. 15-6

Changes in Union CoverageChanges in Union Coverage between 1997 and 2002 between 1997 and 2002 Fig. 15-6Fig. 15-6



• Public Sector UnionismMost highly unionized segment of Canadian workforceThree largest unions represent all public sector workers

Public Service Alliance of Canada PSCA (Federal employees) National Union of Provincial Government Employees (NUPGE) Canadian Union of Public Employees (CUPE)

Teachers, nurses, social workers, professors and others in government-related jobs are also increasingly unionized


Public Sector UnionsPublic Sector UnionsPublic Sector UnionsPublic Sector Unions

Alternative Ways to resolve

Impassesfor Public Sector

Employees

No-Strike, Interest Arbitration Model

Designated or Controlled Strike Model

Back to Work LegislationUnrestricted

Right-to- Strike Model


Industrial Relations in CanadaIndustrial Relations in CanadaIndustrial Relations in CanadaIndustrial Relations in Canada

• Fight for unions in Canada fraught with adversity going back to the 18th centuryEmployers strongly opposed to unionsQuestionable anti-union tactics used to suppress

union advancement Yellow Dog Contracts Banning public union meetings Hiring strikebreakers and goons Blacklisting Firing employees Putting union activists in jail.

NO UNIO

NS!


Typical Unionization Process Typical Unionization Process Fig. 15-7Fig. 15-7Typical Unionization Process Typical Unionization Process Fig. 15-7Fig. 15-7


Unionization ProcessUnionization ProcessUnionization ProcessUnionization Process

• Determining an Appropriate Bargaining Unit “Community of Interest”

Wages, hours, and working conditions Traditional industry groupings for bargaining purposes Physical location and amount of interaction and working

relationships among employee groups Supervision by similar levels of management

• Supervisors and Bargaining UnitsSupervisors are excluded from bargaining units

Defined as any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees


Legal Do’s and Don’ts for Managers During UnionizationLegal Do’s and Don’ts for Managers During Unionization

Employer Do’s• Discharge, suspend, transfer,

layoff or otherwise discipline an employee for proper cause

• Make a change in the operation that is reasonably necessary for the proper conduct of business

• Express management views on any matter providing it does not use intimidation or coercion

Employer Don’ts • Engage in threats, coercion or

intimidation• Interrogate employee about

their voting intentions• Hire spies or infiltrators to

acquire information or influence union activities

• Promise or alter the terms of employment in response to a union drive

• Shut down any establishment to avoid or eliminate a union

• And many other activities…


Unfair Labour Practices: UnionUnfair Labour Practices: UnionUnfair Labour Practices: UnionUnfair Labour Practices: Union

• Bargaining collectively or signing a collective agreement

where another union is known to be the bargaining agent.

• Interfering with or participating in the formation of an

employers’ organization.

• Attempting to organize on the employer’s premises during

working hours without the consent of the employer.

• Using coercion, intimidation, threats, promises, or undue

influence to encourage trade union membership.


Unionization: Key TermsUnionization: Key TermsUnionization: Key TermsUnionization: Key Terms

• Salting The practice in which

unions hire and pay people to apply for jobs at certain companies.

• Union Authorization Card A card signed by an

employee to designate a union as his or her collective bargaining agent.

• Bargaining Unit Employees eligible to

select a single union to represent and bargain collectively for them.

• Union Certification Occurs when a union

becomes the legal representatives for designated employees as granted by the labour relations board.

• Decertification The process whereby a union

is removed as the representative of a group of employees.

• First Contract Arbitration Once a newly formed union

has been certified, the employer and the union must negotiate a first contract within a specified period of time.


Continuum of CollectiveContinuum of Collective Bargaining Relations Bargaining Relations Fig. 15-9Fig. 15-9

Continuum of CollectiveContinuum of Collective Bargaining Relations Bargaining Relations Fig. 15-9Fig. 15-9


Collective BargainingCollective BargainingCollective BargainingCollective Bargaining

• Collective BargainingThe process whereby representatives of management

and workers negotiate a labour agreement covering wages, hours, and other terms and conditions of employment.

How union and management chose to deal with each other will set the tone for the collective bargaining process.

Distributive BargainingIntegrative Bargaining (interest based)Attitudinal StructuringIntraorganizational Bargaining


Bargaining StructureBargaining StructureBargaining StructureBargaining Structure

• Centralized vs. Decentralized Bargaining Canada operates under a decentralized bargaining system, meaning

most certified units are confined to the provincial level. Unions may strike at one location but may not be able to shut down

operations entirely since employers can easily transfer production to another unit.

• Pattern Bargaining Comes closest to decentralized concept. Occurs when negotiations in

one industry or local serve as the basis for negotiations in other industries or localities.

• Concession Bargaining Occurs when employers ask unions to concede to reductions in wages

and other benefits in order to ensure longevity of the organization.


Collective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining Issues

• Mandatory TermsAlso known as articles or clauses which must be

included in a contract agreement in order to comply with labour relations legislation.

• Voluntary TermsThe unique issues that come from the employer and

the union.


Collective Agreement Terms Collective Agreement Terms Fig. 15-10Fig. 15-10Collective Agreement Terms Collective Agreement Terms Fig. 15-10Fig. 15-10


• Management RightsThose rights reserved to the employer to manage,

direct, and control the workplace.

• Union Security ProvisionsContract provisions that aid the union in obtaining and

retaining members.Dues Checkoff Provision

A contract provision for the automatic deduction of union dues from the paycheques of union members.




• Closed Shop A firm that requires individuals to join a union before they can be

hired.

• Open Shop Workers are not required to join or pay dues to a union.

• Union Shop Workers who must join the union after a specified period of time

and pay union dues at that time.

• Maintenance-of-membership Shop Workers remain members of the union for the period of the

labour contract.

• Agency Shop Employee does not have to join the union but must pay union

dues.


Collective Bargaining Process Collective Bargaining Process Figure 15-11Figure 15-11Collective Bargaining Process Collective Bargaining Process Figure 15-11Figure 15-11

Preparation and Initial Preparation and Initial DemandsDemands

Preparation and Initial Preparation and Initial DemandsDemands

Negotiations Negotiations Negotiations Negotiations

Strikes or LockoutsStrikes or LockoutsStrikes or LockoutsStrikes or Lockouts

Settlement or ImpasseSettlement or ImpasseSettlement or ImpasseSettlement or Impasse


The Bargaining Zone The Bargaining Zone Fig. 15-12Fig. 15-12The Bargaining Zone The Bargaining Zone Fig. 15-12Fig. 15-12


Bargaining ImpasseBargaining ImpasseBargaining ImpasseBargaining Impasse

• Conciliation A process by which a third party attempts to keep union and

management negotiators talking so that they can reach a voluntary settlement.

• Mediation A process by which a third party helps the negotiators reach a

settlement.

• Fact-Finding A process found in some public sector labour relations statues

whereby an individual helps clarify the issues of disagreement as an intermediate step between mediation an arbitration.

• Arbitration A process that uses a neutral third party to hear evidence form

both parties and who makes a final and binding decision.


Bargaining PowerBargaining Power

• Union Bargaining PowerStrike Vote

Used as leverage to gain position at negotiations.Strike

A work stoppage in which union members refuse to work in order to put pressure on an employer.

• Management Bargaining PowerLockout

Shutdown of company operations undertaken by management to prevent union members from working.

Replacement of workers on Strike Use of “striker replacements” can put a union at a complete

disadvantage and increase the potential for violence.


Types of StrikesTypes of StrikesTypes of StrikesTypes of Strikes

• Economic Strikes Strikes over economic issues (e.g., wages)

• Unfair labour practice strikes Strikes over illegal employer actions (e.g., refusal to bargain)

• Wildcat strikes Strikes not approved by the union

• Jurisdictional strikes Strikes in dispute over the ownership of work

• Sympathy strikes Expressions of support for other unions


Union/Management CooperationUnion/Management CooperationUnion/Management CooperationUnion/Management Cooperation

Cooperation andCooperation andJoint EffortsJoint Efforts

Cooperation andCooperation andJoint EffortsJoint Efforts Employee OwnershipEmployee OwnershipEmployee OwnershipEmployee Ownership

Union/Union/Management Management CooperationCooperation

Union/Union/Management Management CooperationCooperation


Grievance ManagementGrievance ManagementGrievance ManagementGrievance Management

• Complaint Indication of employee dissatisfaction

• GrievanceA complaint formally stated in writing

• Grievance ProceduresFormal channels used to resolve grievances

• Grievance ArbitrationMeans by which a third party settles disputes arising

from different interpretations of a labour contract


Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance Management Grievance Management Fig. 15-14Fig. 15-14

Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance Management Grievance Management Fig. 15-14Fig. 15-14


Steps in a Typical Grievance Procedure Steps in a Typical Grievance Procedure Fig. 15-15Fig. 15-15Steps in a Typical Grievance Procedure Steps in a Typical Grievance Procedure Fig. 15-15Fig. 15-15

Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 15–1 Part 5: Employee Relations...

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Transcript of Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 15–1 Part 5: Employee Relations...