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Dessler, Cole, Goodman and SutherlandFundamentals of Human Resources Management
in Canada
Chapter Twelve
Labour Relations, Collective Bargaining, and Contract Administration
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-1
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-2
Overview of Labour-Management Relations
Labour-Management Relations
–ongoing economic and social interaction between
• labour unions
• management
Labour-Management Relations
–ongoing economic and social interaction between
• labour unions
• management
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-3
Overview of Labour-Management Relations
Labour Union (Union)
–officially recognized association of employees:
• in similar trade
• employed in same company/industry
–collective voice in dealings with management
Labour Union (Union)
–officially recognized association of employees:
• in similar trade
• employed in same company/industry
–collective voice in dealings with management
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-4
Overview of Labour-Management Relations
Union Acceptance Strategy
–a labour relations strategy based on
management’s view that the union is the
legitimate representative of the firm’s employees
Union Acceptance Strategy
–a labour relations strategy based on
management’s view that the union is the
legitimate representative of the firm’s employees
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-5
Overview of Labour-Management Relations
Union Avoidance Strategy
–a labour relations strategy based on
management’s preference to operate in a
non-union environment
Union Avoidance Strategy
–a labour relations strategy based on
management’s preference to operate in a
non-union environment
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-6
Canada’s Labour Laws
Provincial/Territorial Legislation— Commonalities (1 of 2)
–certification procedures
–minimum one year collective agreements
–procedures preceding legal strike/lockout
–no strikes/lockouts during life of contract
–certification procedures
–minimum one year collective agreements
–procedures preceding legal strike/lockout
–no strikes/lockouts during life of contract
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-7
Canada’s Labour Laws
Provincial/Territorial Legislation— Commonalities (2 of 2)
–interpretation disputes settle by binding
arbitration
–prohibition of unfair labour practices
–labour relations boards to enforce legislation
–interpretation disputes settle by binding
arbitration
–prohibition of unfair labour practices
–labour relations boards to enforce legislation
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-8
Canada’s Labour Laws
Unfair Labour Practices—Management (1 of 2)
–interference with union activity by employees–participating in union activity–changing/threatening to change working
conditions during:• certification• collective bargaining• life of agreement
–interference with union activity by employees–participating in union activity–changing/threatening to change working
conditions during:• certification• collective bargaining• life of agreement
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-9
Canada’s Labour Laws
Unfair Labour Practices—Management (2 of 2)
–refusing to bargain in good faith
–penalizing employees for refusing to act as
replacement workers
–intimidating employees re union membership
–refusing to bargain in good faith
–penalizing employees for refusing to act as
replacement workers
–intimidating employees re union membership
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-10
Canada’s Labour Laws
Unfair Labour Practices
–conducting union business on company time/
premises without employer consent
–refusing to bargain in good faith-discrimination against union members on prohibited grounds-intimidating employees re union membership-failing to fairly represent all union members-threatening/authorizing unlawful strike
–conducting union business on company time/
premises without employer consent
–refusing to bargain in good faith-discrimination against union members on prohibited grounds-intimidating employees re union membership-failing to fairly represent all union members-threatening/authorizing unlawful strike
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-11
The Labour Movement in Canada Today
Types of Unions
Type of Worker
Eligible for
Membership
–craft
–industrial
Type of Worker
Eligible for
Membership
–craft
–industrial
Geographic
Scope
–international
–national
–local
Geographic
Scope
–international
–national
–local
Labour
Congress
Affiliation
–CLC
–CSN
–AFL-CIO
Labour
Congress
Affiliation
–CLC
–CSN
–AFL-CIO
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-12
The Labour Movement in Canada Today
Current Challenges
1. Global competition and technological change
2. Unionization of white-collar employees
3. Innovative workplace practices
1. Global competition and technological change
2. Unionization of white-collar employees
3. Innovative workplace practices
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-13
Step One—Employee’s Desire to Unionize
Reasons for Desire to Unionize
–job dissatisfaction–lack of job security–perceived inequities in pay–unfair administration of policies–lack of opportunity for advancement–lack of influence on work-related decisions–belief that unions can improve working conditions
–job dissatisfaction–lack of job security–perceived inequities in pay–unfair administration of policies–lack of opportunity for advancement–lack of influence on work-related decisions–belief that unions can improve working conditions
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-14
Step Two—Union Organizing Campaign
Step 5. OutcomeStep 5. Outcome
Step 4. Organizing campaign Step 4. Organizing campaign
The Union Organizing Process
Step 3. Formation of in-house committeeStep 3. Formation of in-house committee
Step 2. Initial organization meetingStep 2. Initial organization meeting
Step 1. Employee-union contactStep 1. Employee-union contact
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-15
Step Two—Union Organizing Campaign
Signs of Organizing Activity (1 of 2)
–disappearance of employee lists/directories–increased inquiries about benefits, wages, etc.–questions on management’s opinion of unions–increase in number/nature of grievances–change in composition/size of informal employee
groups
–disappearance of employee lists/directories–increased inquiries about benefits, wages, etc.–questions on management’s opinion of unions–increase in number/nature of grievances–change in composition/size of informal employee
groups
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-16
Step Two—Union Organizing Campaign
Signs of Organizing Activity (2 of 2)
–employee discussion of group meetings–sudden cessation of conversation when manager
approaches–appearance of strangers in parking lot–sudden popularity of certain employees–distribution of cards or flyers
–employee discussion of group meetings–sudden cessation of conversation when manager
approaches–appearance of strangers in parking lot–sudden popularity of certain employees–distribution of cards or flyers
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-17
Union Organizing and Recognition
Employer Rights
–express views on unions–state position on remaining non-union–prohibit union activity on company property/time–increase wages in normal course of business–gather employees to state company’s position if:
• purpose stated in advance• attendance optional• no threats/promises
–express views on unions–state position on remaining non-union–prohibit union activity on company property/time–increase wages in normal course of business–gather employees to state company’s position if:
• purpose stated in advance• attendance optional• no threats/promises
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-18
Step Three—Union Recognition Process
Union Recognition
VoluntaryRecognition
–doesn’t require involvement of a 3rd party
VoluntaryRecognition
–doesn’t require involvement of a 3rd party
Regular Certification
–automaticcertification
–representative vote
Regular Certification
–automaticcertification
–representative vote
PrehearingVote–in event of
irregularities–intent: to
engagesupport
PrehearingVote–in event of
irregularities–intent: to
engagesupport
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-19
Termination of Bargaining Rights
–termination of a voluntarily-recognized union
–employee request for decertification
–decertification due to fraud
–union request for decertification
–termination of a voluntarily-recognized union
–employee request for decertification
–decertification due to fraud
–union request for decertification
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-20
Collective Bargaining
–surface bargaining
–failing to make concessions/withdrawing
previously granted concessions
–failing to make reasonable proposals
–imposing unreasonable conditions
–surface bargaining
–failing to make concessions/withdrawing
previously granted concessions
–failing to make reasonable proposals
–imposing unreasonable conditions
Violations of Good Faith Bargaining (1 of 2)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-21
Collective Bargaining
–making unilateral changes in conditions
–bypassing formal representatives
–committing unfair labour practices during
negotiations
–failing to provide information
–making unilateral changes in conditions
–bypassing formal representatives
–committing unfair labour practices during
negotiations
–failing to provide information
Violations of Good Faith Bargaining (2 of 2)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-22
Collective Bargaining
–review strategic plan
–gather economic data
–conduct wage/benefit surveys
–analyze ability to pay
–analyze other collective agreements
–review strategic plan
–gather economic data
–conduct wage/benefit surveys
–analyze ability to pay
–analyze other collective agreements
Preparation for Negotiations— Management (1 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-23
Collective Bargaining
–obtain multi-employer coordination if required
–obtain supervisory input
–review existing contract/union promises
–audit/analysis of grievances
–canvass relevant arbitration award/LRB rulings
–obtain multi-employer coordination if required
–obtain supervisory input
–review existing contract/union promises
–audit/analysis of grievances
–canvass relevant arbitration award/LRB rulings
Preparation for Negotiations— Management (2 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-24
Collective Bargaining
–costing
–prepare bargaining plan/strategy/guidelines
–establish bargaining team
–contingency planning
–establish communication strategy with senior
management
–costing
–prepare bargaining plan/strategy/guidelines
–establish bargaining team
–contingency planning
–establish communication strategy with senior
management
Preparation for Negotiations— Management (3 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-25
Collective Bargaining
–review union policy objectives
–gather economic data
–gather data on bargaining trends/settlements
–analyze employer’s finances
–analyze other collective agreements
–review union policy objectives
–gather economic data
–gather data on bargaining trends/settlements
–analyze employer’s finances
–analyze other collective agreements
Preparation for Negotiations— Union (1 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-26
Collective Bargaining
–obtain input from stewards and others
–obtain input from membership
–review existing contract/organizing promises
–audit/analysis of grievances
–gather data on bargaining unit members
–obtain input from stewards and others
–obtain input from membership
–review existing contract/organizing promises
–audit/analysis of grievances
–gather data on bargaining unit members
Preparation for Negotiations— Union (2 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-27
Collective Bargaining
–costing
–prepare bargaining plan/strategy
–establish bargaining team
–contingency planning
–costing
–prepare bargaining plan/strategy
–establish bargaining team
–contingency planning
Preparation for Negotiations— Union (3 of 3)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-28
The Collective Bargaining Process
Distributive Bargaining
Bargaining Zone
Settlement Range
Union Management
Resistance Point
Resistance PointTarget Point
Target Point
Initial Point
Initial Point
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-29
The Collective Bargaining Process
1. Distributive bargaining
2. Integrative bargaining
3. Intra-organizational bargaining
1. Distributive bargaining
2. Integrative bargaining
3. Intra-organizational bargaining
Negotiating
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-30
The Collective Bargaining Process
Ratification
–formal approval of agreement by union members–secret ballot
Ratification
–formal approval of agreement by union members–secret ballot
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-31
Third Party Assistance and Bargaining Impasses
Conciliation
–assistance of neutral outside third party–required prior to strike/lockout
Conciliation
–assistance of neutral outside third party–required prior to strike/lockout
Mediation
–assistance of neutral outside third party–usually voluntary
Mediation
–assistance of neutral outside third party–usually voluntary
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-32
Third Party Assistance and Bargaining Impasses
Bargaining Impasses
–strikes• strike vote• replacement workers• boycott
–lockout–interest arbitration
Bargaining Impasses
–strikes• strike vote• replacement workers• boycott
–lockout–interest arbitration
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-33
The Collective Agreement:Typical Provisions
–union recognition–management rights–union security/check-off–no strikes or lockout–grievance procedures–arbitration
–union recognition–management rights–union security/check-off–no strikes or lockout–grievance procedures–arbitration
Clauses (1 of 2)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-34
The Collective Agreement:Typical Provisions
–disciplinary procedures–compensation rates and benefits–hours of work and overtime pay–employee security/seniority–health and safety–contract expiration date
–disciplinary procedures–compensation rates and benefits–hours of work and overtime pay–employee security/seniority–health and safety–contract expiration date
Clauses (2 of 2)
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-35
Step Five—Contract Administration
–union and management must abide by contract–most labour-management relations in day-to-day
contract administration–most provisions limit managerial actions–numerous grievances on seniority and
discipline provisions
–union and management must abide by contract–most labour-management relations in day-to-day
contract administration–most provisions limit managerial actions–numerous grievances on seniority and
discipline provisions
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-36
Contract Administration
–seniority refers to length of service in the
bargaining unit–basis for transfer, layoff, promotion decisions
when two candidates have relatively equal
skill/ability
–seniority refers to length of service in the
bargaining unit–basis for transfer, layoff, promotion decisions
when two candidates have relatively equal
skill/ability
Seniority
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-37
Contract Administration
–employee has right to grieve disciplinary
action considered:• too harsh • without just cause
–burden of proof on employer–precedents may be set when considering
extenuating circumstances
–employee has right to grieve disciplinary
action considered:• too harsh • without just cause
–burden of proof on employer–precedents may be set when considering
extenuating circumstances
Discipline
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-38
Grievance Resolution and Rights Arbitration
Grievance
–written allegation of contract violation filed by:• individual union members• union• management
Grievance
–written allegation of contract violation filed by:• individual union members• union• management
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-39
Grievance Resolution and Rights Arbitration
–resolve issues unanticipated when bargaining–interpret contract language–provide communication device–satisfy political needs for union–bring attention to contract areas requiring
clarification/modification
–resolve issues unanticipated when bargaining–interpret contract language–provide communication device–satisfy political needs for union–bring attention to contract areas requiring
clarification/modification
Purpose of the Grievance Procedure
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-40
Grievance Resolution and Rights Arbitration
Stage 1. Employee gives written grievance to
supervisor
Stage 1. Employee gives written grievance to
supervisor
Typical Grievance Procedure
Stage 2. Discussion by griever, HR, union stewardStage 2. Discussion by griever, HR, union steward
Stage 3. Discussion by senior management and
top union officials
Stage 3. Discussion by senior management and
top union officials
Stage 4. ArbitrationStage 4. Arbitration
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-41
Grievance Resolution and Rights Arbitration
–may stem from perceived injustice/hurt
feelings rather than actual contract violations–can become vehicle for parties to test relative
strength–political pressures may interfere
–may stem from perceived injustice/hurt
feelings rather than actual contract violations–can become vehicle for parties to test relative
strength–political pressures may interfere
Problems With Grievance Procedure
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-42
Grievance Resolution and Rights Arbitration
Rights Dispute
–regards interpretation/application of collective
agreement
Rights Arbitration
–arbitration of a rights dispute
Rights Dispute
–regards interpretation/application of collective
agreement
Rights Arbitration
–arbitration of a rights dispute
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-43
Impact of Unionization on HRM
–organizational structure changes
–management decision making changes
–changes in formulation of policies/procedures
–centralization of record keeping and
standardization of decision making
–changes in supervisory authority/responsibility
–organizational structure changes
–management decision making changes
–changes in formulation of policies/procedures
–centralization of record keeping and
standardization of decision making
–changes in supervisory authority/responsibility
© 2004 Pearson Education Canada Inc., Toronto, Ontario 12-44
Building Effective Labour-Management Relations
–institute open-door policy–extend courtesy of prior consultation–demonstrate genuine concern for employee
well-being–form joint study committees–hold joint training programs–meet regularly–use third-party assistance
–institute open-door policy–extend courtesy of prior consultation–demonstrate genuine concern for employee
well-being–form joint study committees–hold joint training programs–meet regularly–use third-party assistance
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