Labour Relations Notes PDF

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CHAPTER 1 INTRODUCTION Human Resources Management: the study of the employment relationship between employers and individual employees Employee Relations: the study of the employment relationship between employers and individual employees, usually in non-union settings Industrial Relations: the study of employment relationships and issues, often in unionized workplaces Labour Relations: the study of employment relationships and issues between groups of employees (usually in unions) and management; also known as union-management relations Union: a group of workers recognized by law who collectively bargain terms and conditions of employment with their employer Collective Agreement: a written document outlining the terms and conditions of employment in a unionized workplace Collective Bargaining: the process by which management and labour negotiate the terms and conditions of employment in a unionized workplace Strike: An action by workers in which they cease to perform work duties and do not report to work. DUNLOPS MODEL 1. Actors: • Specialized government agencies • Hierarchy of managers and their representatives • Hierarchy of workers and their representatives 2. Shared Ideology: • Set of ideas and beliefs held by the actors • Helps to bind or integrate the system together 3. Contexts: • Environmental factors that influence actors, including: • Market/budgetary constraints • Technical characteristics of workplace and work community constraints • Distribution of power in the larger society 4. Web of Rules: • Outlines the rights and responsibilities of the actors • Procedural • Substantive • Distributive

Criticisms OF DUNLOPS MODEL: • Descriptive • Lacks ability to predict outcomes/relationships • Underestimates importance of power and conflict in employment relationship • Static in nature in that it doesn’t examine how events from one relationship impact other employment relationships • Cannot explain rapid decrease in unionization especially in the U.S. CRAIGS Industrial Relations Systems Model • Developed to explain the Canadian context for Industrial Relations • A type of systems model • Feedback Loop

Views of Industrial Relations: • An interdisciplinary field: • Economics – Supply and Demand • Law – Legal Aspect • History – History of Labour • Sociology of Work – Working Group, Social Justice • Political – Roles of Unions • Psychology – Employee Satisfaction and Motivation • Results in different views of IR 1. Neoclassical Economics View • Grounded in economics • Sees unions as an artificial barrier to the free market • Emphasis on factors that influence the supply and demand of labour, or workers. 2. Pluralist and Institutional View • Sees labour unions as a force that attempts to balance the interests of employers and employees • Traditionally has been the predominant view of industrial relations in Canada • Emphasizes importance of institutions 3. Human Resources/Strategic Choice • Movement away from unionization toward nonunionized employment relationships • Link human resources strategies and practices to the firm’s overall business strategy • These strategies often are designed to foster cooperation between employees and employers • Minimizes the need for unionization and the role for collective bargaining 4. Political Economy • Based in the fields of sociology and political science • Stresses inherent conflict between labour and management

CHAPTER 2 LABOUR HISTORY You: - refuse unsafe work - overtime

- minimum wage - freedom from discrimination

Your grandparents? Master-Servant Relationship: • The employer made the rules that employees were required to follow • Employees had few rights • Unions, collective bargaining illegal • Little court protection • Power imbalance Employees: illegal to… • form a union • quit the job Employers: rights to… • punish employees if they left before work was completed • charge employees if they refuse to follow lawful orders • have workers charged if they didn’t report to work THE MOVEMENT TO UNIONIZATION Knights of Labour: Formed in 1869 believed: • In the creation of a single large union for skilled and unskilled workers • Was opposed to strikes because it felt that strikes led to hardship for workers • Sought to establish cooperative businesses • Knights of Labour grew from 10,000 workers (women) in 1869 to more than a million by 1881. Nine-Hour Movement and Trade Union Act of 1872: - 1500 Hamilton workers, Toronto printers’ strike - First unified protest movement - They sought reduction in the length of the workday - MacDonald declared himself the “working man’s friend” and had his government introduce legislation that permitted employees to join unions - Amendment to the Criminal Law Amendment Act (1872) stated it was also no longer a conspiracy or a crime for a person to join a union - There were penalties though for striking - The passage of these two pieces of legislation provided the foundation for the birth of a formalized Canadian labour movement.

New Model Unionism • Trade or craft-based union; all members performed the same trade or specialty • A cooper was a trade that the individual was skilled in making wooden barrels. • Could restrict access to the trade through apprenticeship - a process where trainees learn a trade under the supervision of a senior tradesperson • Gave the union control over the supply of labour • Negotiated solutions rather than take strike action New Model Unionism: the movement to trade or craft unions Apprenticeship: a process where trainees learn a trade under the supervision of a senior tradesperson Trade Union: unions that organized all workers of a trade regardless of their industry or workplace American Federation of Labour (AFL)and the Trades & Labour Congress of Canada: - Cigar maker Samuel Gompers founded the AFL in 1886 to unite and divide the labour movement of Canada and the U.S. based on the principles of: Exclusive jurisdiction: Gompers felt that unions should be craft (trade)-based only and represent only one craft United States AFL Exclusive Jurisdiction: • Unions should be craft (trade)-based only and represent only one craft Business Unionism: • Focuses on improving wages and working conditions of its members Political Nonpartisanship: • The union should not be aligned with one political party Canada CLU Open Jurisdiction: • Unions for skilled and unskilled labourers Social Unionism: • Priorities went beyond economic welfare and promoted social change (e.g., end of child labour) seeks equity for union/nonunion members • Focused legislative changes 1900-1914 • One of the most accelerated phases of economic development in Canadian history • 14 large, violent strikes; military called in for 11 1902 – The Berlin (now Kitchener) Convention • Consistent with AFL • Split in labour movement World War I: 1914-1918

1900-1920 Industrial Disputes Investigation Act (IDIA), 1907: • ICDIA became a cornerstone of Canadian law and marked the trend of third-party intervention prior to a strike. It also laid the foundation for the system that exists in Canada • Required the use of third-party intervention prior to a strike Winnipeg General Strike, 1919 - the strike did result in a number of positive changes in relation to one actor of the IR system: the government. One Big Union and other socialist movements: • Labour activists go on to win elected office • In the 1920 Manitoba election, labour candidates won eleven seats four of which were won be strike leaders. 1930s and 1940s Great Depression: • Significant economic downturn resulting from 1929 stock market crash • 1933: 32% of workers were unemployed • 20% of Canadians receiving social assistance Wagner Act (1935); also known as National Labor Relations Act (NLRA) • Independent agency (NLRA) to enforce the rights of employees to bargain collectively rather than to mediate disputes • Employers required to bargain collectively with certified unions • Defined unfair labour standards and NLRB given ability to order remedies for employer violations of the NLRA • Encouraged collective bargaining The 1930s and 1940s: Saw a rapid increase in industry such as factory based workplaces and industrial unions. - The P.C. 1003 (1944) set forth several elements: ◦ Mechanisms to handle workplace disputes during the term of a collective agreement ◦ Conciliation procedures prior to a strike The Rand Formula (1945) came from the decision to settle a Ford strike in Windsor when Justice Ivan Rand decided that all union dues would be paid directly to the union (dues check-of) regardless of whether they were a union member. - Workers would not be required to join a union but would have to pay union dues (Rand Formula)

The 1950s and 1960s: Skilled and Unskilled Workers Reunite: • American Labour Federation & Committee of Industry Organization Merger in 1955 Canadian Labour Congress formed 1956 - Following the lead of the United States Canadian labour groups also reunited. The industrial based Canadian Congress of Labour (CCL) and trade based Trade and Labour Congress (TLC) formed the Canadian Labour Congress (CLC) at a convention held in Toronto in 1956. Some 60 years later it remains one of the largest federation of Canadian labour. Public Services Staf Relations Act 1967: resulted in the public sector representing a large percentage of the unionized workforce in Canada and marked a departure from the U.S. where collective bargaining is prohibited. • Contrary to United States, law enabled federal government employees to bargain collectively • Similar laws were passed in provincial jurisdictions (ex. Labour Standards Act) 1970s and 1980s Wage and price controls and legislation (Anti-Inflation Board, 6&5 program): • Restricted labor’s ability to seek wage increases Free trade agreements: • North American Free Trade Agreement (NAFTA) Canadian Auto Workers (CAW): • Split from U.S. union Early 1980s: • Spike in inflation rate (12%) 1990s and Beyond Economic restructuring and global markets: • Sectors of the economy that were traditionally union strongholds faced severe job losses • Manufacturing sector hardest hit Government restructuring: • Privatization • Crown corporations • Layoffs Back-to-work legislation: • Strike action ceases • Employees return to work • Terms and conditions of new collective agreement set by a third party

CHAPTER 3 ECONOMIC, SOCIAL AND POLITICAL ENVIRONMENTS

Macroeconomic Policy: A policy that applies to economy-wide goals such as inflation, unemployment, and growth • Arguably the most important single influence on industrial relations has been the federal government’s macroeconomic policy. • Almost all industries have been affected by deregulation or privatization and indirectly through the North American Free Trade Agreement. Deregulation: Create more competition by allowing prices to be determined by market forces Free Trade Agreements (e.g., NAFTA): Promote free trade of goods and service between countries Privatization: The transfer or contracting out of services to the private sector. Examples such as trucking, airlines, catering service. The Supply and Demand Framework: • Labour market forces determine employee compensation and conditions • The supply of labour may not meet the demand in the future as retirements increase, population growth decreases, and immigration fails to bridge the gap

Elasticity of Supply (demand) - labour responsiveness of supply (demand) caused by a change in the wage rate. Supply curve is elastic - a small increase in wages causes a large increase in supply of labour Shape of the demand curve is important: • Influences union’s ability to raise wages without significantly affecting employment levels • Wage-employment tradeoff

Four conditions impact wage elasticity:

1. Product Market: • Unions will have more power when there is less competition in the firm’s product market • The greater the employment impact of a wage increase 2. Substitution Efect: • The easier it is to substitute capital (technology) for labour, the less power labour will have to raise wages 3. Labour Intensity: • Degree to which labour costs account for production costs 4. Market for Substitute Factors The more competitive the market for substitute factors of production (labour) • greater bargaining power of firms- they can replace workers easily • IR Today 3.1 outlines how Sears Canada had reduced their costs and reduced jobs through the outsourcing of labour Demand is more elastic and unions will have more power when: • product markets are less competitive • it is harder to substitute labour for capital • labour costs are a small proportion of total costs • the market for substitutes is less competitive Unions also derive power from sources other than labour markets - Unions have successfully alliance with community groups to: • Assist in organizing new members • Strengthen positions in bargaining • Support political lobbying campaigns • Oppose plant closures • Support strikes and other industrial actions What factors in society determine labour supply? • The number of workers is a function of such elements as: • Population and immigration • Work-leisure decisions Population Growth

Supply of Labour Immigration

Substitute leisure for work as more goods and services per hour of work can be purchased

As income increases, work may be more attractive because of the higher rate of pay

In c o m e In c r e a s e s , L e is u r e D e c r

In c o me In c r e a s e s , L e

Work-Leisure Decisions:

Supply of Labour: 1. Non-competitive Factors: - Monopsony: Happens when a firm is dominant in the labour market such that it has some control over the wages offered. Exists when a firm is not a wage taker, but a wage setter. 2. Institutional Barriers to Supply: - Lack of government resources to training or higher education resulting in a lack of supply of graduates in a certain profession 3. Unions and Labour Supply: - Hiring Hall: a union-run center that refers union labour to job sites as requested by firms SOCIAL CONDITONS: Public attitudes: Have unions outlived their usefulness? • Factors that may have contributed to the decline of unions include: • Globalization and pressures to be competitive • More individual protection under employment laws • Changes in the nature of work • Improved HR practices Supply of Labour: Demographic factors are important to labour force patterns • The postwar baby boom (1947-66) resulted in an increase in the supply of labour that created a variety of challenges for organizations • Social Conditions (public attitudes to unions) • Work Attitudes – how satisfied with job • Trends in Income Distribution and Poverty – Lack necessary skills and training in the economy Income Distribution and Poverty: • Widening of the income gap between the rich and the poor • Unions as the protector of the middle class • Child poverty in Canada (2013) • Canada scored a “C” grade and ranked 15th out of 17 peer countries Workforce Changes:

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Changing workforce composition • 1965: 70% of workforce was male • 2005: 46% of workforce was female • Immigration: main source of population growth since 1993 • 1984: 10% of population was 65+ • 2014: 15.7% of population was 65+

Aging Population: • A consequence of the aging population is an increase in poverty for persons above age 55 Employer Challenges to workforce aging: • HRSDC (2005) recommendations for employers given the aging of the general workforce: • Elimination of age discrimination; adoption of proactive measures • Safer workplaces, healthier environments, holistic approach to wellness • Flexible work arrangements, job redesign • Appropriate training opportunities • Flexible retirement options Impact of compositional changes on unions:

More Women

Substantial increase in the number of women in unions 32.8% female, 30.3% men - 2012

Occupational Shifts

Unions have grown in public administration, childcare, and home-support sectors Unions have lost members in manufacturing and technical health fields

Contingent Workers

5 categories of contingent workers - types of work arrangements, part-time work, temporary, flextime, compressed workweek, teleworking from home either full or part time. Over last 20 years contingent workers have grown from 4% to 30% of the workforce Unions have had less success organizing contingent workers

Labour and Employment Relations Challenges: • Collective bargaining was designed for workers in a stable, year-round employment relationship • New work forms have created a significant change in the balance of power between labour and management, in favour of management

Work-life Balance:

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Economic and social changes have put significant pressure on individuals in the workplace Work-life balance (WLB): the desire on the part of both employees and employers to achieve a balance between workplace obligations and personal responsibilities. This may be working part time temporary, on call etc. Reasons could be child care, elder care.

The Political Environment: • In contrast to the United States, the Canadian labour movement has managed to organize new members and avoid the steep decline in union density found in the U.S. • One of the reasons for this is the more labour-friendly laws in Canada. • A major factor is the development of Canadian law has been the political support that labour has received from political parties. (NDP) Some important social and historical experiences for Canada-U.S. difference: • 1982 Canadian Charter protected individual rights, but facilitated collective bargaining. • The ability to produce legislative change is lacking in the American system as there is only one labour law for the entire sector. • Canada rejected the U.S. right-to-work approach • In Canada the Canadian Constitution, is a provincial matter, we have eleven labour laws including that of federal jurisdiction. This fact increases the probability of legislative changes.

CHAPTER 4 THE LEGAL ENVIRONMENT

The Regulatory Framework: • Trade Union Act, 1872 - Unions had legal recognition, however, they encountered hostile employers when they attempted to organize workers • Industrial Dispute Investigations Act (IDIA), 1907 - An attempt to provide an orderly mechanism for union recognition • Snider Case 1925 – landmark case that determined that labour matters fell under the purview of the provinces. This argument derived from the British North America Act (BNA). • Wagner Act: 1935 - formally known as the National Labour Relations Act. This Act protected the unions right to organize and strike. Scientific Management: (Frederick Taylor) • Engineering principles which define specific tasks in the production process • Removed the autonomy of skilled workers. • Known as industrial engineering and was established the organization of work in Ford's assembly line in the 1920’s. • Based upon movement management theory from early time-and-motion studies to the latest total quality control ideas. P.C. 1003 Legislation in (1944) • The Canadian government version of the Wagner Act model; under the War Measures Act. • Introduced by the Privy Council as P.C.1003. • It gave unions the right to organize for the purpose of collective bargaining and the right to strike. Union Recognition: Labour Relations Board - Neutral party that provides an alternative to the courts - Cheaper, faster and has greater expertise. - Structure is tripartite – three stakeholders: management, labour & government Functions - Enforce the Labour Relations Act Cases that the Board hears include: • Certification and decertification • Unfair labour practices • Declarations of illegal strikes or lockouts

Certification

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Recognition of a union by the Labour Board • In Canada automatic certification obtained through signed cards • # of card various by province • No vote of members required Gives unions exclusive/sole rights to represent all employees within a bargaining unit

Definition of the Bargaining Unit: • Group of empl...