Intro to Labour Relations.nov 19 2010 (1)

8/3/2019 Intro to Labour Relations.nov 19 2010 (1)

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Introduction to Unions and

Labour Relations

Friday, November 19, 2010


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Outline of presentation

1. Introduction

2. Historical snapshot

3. Union s

tructu

re:lo

ca

l, na

tiona

l

4. Union actions:a) Union organizing

b) Collective bargaining

c) Education and political action

5. Union impacts

6. Trends in union membership and density

7. The f uture


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What does labour want?

We want more schoolhouses and lessjails; more books and less arsenals; morelearning and less vice; more leisure and

less greed; more justice and less revenge;in fact, more ofthe opportunities tocultivate our better natures.

Samuel Gompers (1850-1924)

First President ofthe AmericanFederation of Labor


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20th Century union growth at a

glance

Historically, unionization in Canada has occurred in waves:

Industrialunions, 1930s 1950s

Public sectorunions, 1960s 1970s

Willthere be another wave?

%

1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

0

5

10

15

20

25

30

35

40

Union density in Canada since 1920

Source: Government of Canada, Labour Policy and Workplace Information; Arrowsmith (1990).


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Historical evolution ofthe law on

union recognition1. Repression Combination Acts

Law used as toolto limit workers rights to unionize: combinations ofworkers illegal

2. Toleration

Trade Unions Act(1872) Workers could no longer be criminally prosecuted merely for attempting to

unionize, but nothing in law required employers to recognize unions;employers could still fire or refuse to hire union members

3. Recognition The Industrial Disputes Investigation Act(1907)

The Wagner Actin the United States (1935)

P.C. 100 3 in Canada (1944) Rand form ula (1945)

Post-war provinciallabourlegislation

Public sectorlegislation e.g., FederalPublic Service Staff Relations Act(1967)


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Impact ofthe

Charter of Rights and Freedoms On June 8, 2007 the Supreme Court of Canada released its

decision in Health Services and SupportFacilities Subsector

Bargaining Assn v. British Columbia

Held that freedom of association guaranteed by section 2(d) ofthe

Charterincludes a procedural rightto collective bargaining

Ear lier decisions that had held thatcollective bargaining was not

protected by the Charterwere overturned

The right defined by the court does not guarantee a particular

model ofcollective bargaining, or a certain outcome from that

process B.C. legislation voiding public sectorcollective agreement

provisions was found to violate the Charter

A seismic decision! But full implications remain to be seen


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Canadian union structure

Compared to other jurisdictions, unionstructure in Canada is highly fragmentedand decentralized.

Over 500 labour organizations acrossCanada, including national and internationalunions and independentlocalunions.

Most key functions (i.e., meetings,

bargaining, dealing with grievances) takeplace atthe locallevel.

Over 15,000 union locals in Canada.


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The union local

May include workers at a particular site or within acertain geographical area, and may be restricted to acertain occupation.

Leadership elected by members.

May employ a staff representative or business agent

to act as chief negotiation spokesperson, deal withmembers problems, and liaise with otherunions.

Shop stewards are local officers whose majorresponsibilities include:

Investigating grievances

Representing members at grievance hearings

May recruit new members or encourage participation inunion meetings

A huge amount of union work [in some cases the vast

majority] is performed by activists, volunteers, elected

stewards and local leaders rather than full-time union staff.


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Parentunions

Most Canadian union locals are affiliated with parent

unions that: Coordinate bargaining activities

Provide assistance for bargaining and grievance handling

Provide support during strikes/lockouts (central strike fund) Offertraining and education programs

Engage in research (e.g., industry trends, work organization)

Provide specialized advice and support on issues such ashealth & safety

Representthe union in political action

Conduct organizing activities to recruit new members

Nationalunion leaders typically elected by delegatesatconvention.


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Example: One Canadian unions

national office departmentsCommunications Education Economic,

Social &

Sectoral Policy

Health, Safety &

Environment

Human Rights International &Social Justice

Fund

Legal Mobilizing,Campaigns and

Government

Relations

Organizing Recreation Skilled Trades Strike Insurance

Pension &

Benefits

Retired Workers Womens Work

Organization &

Training


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Labour federations

Unions are typically (but not always) affiliated with centrallabour organizations atthe national, provincial, andmunicipallevels: Canadian LabourCongress

Represents 3 million union members.

Brings together Canadas national and internationalunions, provincialand territorial federations, and 136 districtlabourcouncils.

Ontario Federation of Labour

Represents 700,000 Ontario workers in more than 1,500 affiliatedlocalunions.

Gained new members in recent years from affiliation ofteachers and

nurses unions, but does not include the CAW. District LabourCouncils

Vary considerably in size and structure.

The Toronto and York Region Labour Council is the largest inOntario, representing 195,000 members belonging to affiliated localunions.


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Union actions union power

Triangulation of three factors

OrganizingAbility to attractnew members

Collective

BargainingAbility to win gains

for members

Political

ActionAbility to have an

Impact on larger society


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Union actions: Organizing

Unions mustconstantly organize [recruit] newmembers

The certification process in Ontario:

Begins with an app

lica

tion from a

union

to

the

On

tarioLabour Relations Board [OLRB]to representthe

workers in a proposed bargaining unit

The union must demonstrate a threshold level ofsupport (40%) to trigger a vote

Votes must be held generally within five businessdays

To be certified the union requires a majority ofballotscast


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Protecting the rightto organize

The Ontario Labour Relations Act[LRA] bars employersfrom

Interfering with trade unions

Discriminating againstunion members

Using threats, intimidation, coercion, promises, orundueinfluence to prevent workers from joining unions

Unilaterally changing working conditions during statutory

freeze period

The OLRB has recognized thatcertain employer actions

(e.g., dismissal ofunion supporters) are likely to have a

chilling impact on the union campaign

Union unfairlabour practices are also prohibited (e.g.,

using coercion to recruit members) butthis has been

rarely found by OLRB


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Union Organizing: Employer Rights

Express views on unions

State position on remaining non-union

Prohibitunion activity on company property/time

Increase wages in normalcourse of business

Gather employees to state companys position if:

purpose stated in advance

attendance optional no threats/promises


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Employertactics found to chill

organizing campaigns* Firing union supporters Captive audience meetings, letters, and other

directcommunication

Hiring consultants to run anti-union campaigns Threatening to close the plant or spreading

rumours thatthis will happen

Promising increased pay or benefits ifthe union

is defeated Filing repeated objections or requesting

postponements to delay the certification process

* Although not necessarily illegal.


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Organizing across Canada

Workers Covered by New

Certifications and Organizing Rate

0

20000

40000

60000

80000

100000

120000

1981

1986

1991

1996

2001

Year

WorkersCove

re

byNew

Certifications

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

OrganizingRate

Workers Oranized Organizing Rate

Note: Organizing Rate is the the number of workers covered by new certifications as a proportion

of non-union workforceSource: Kumar, 2008


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Union actions: Collective bargaining

Collective bargaining is the negotiation process throughwhich the terms and conditions of employment forunionized staff are determined

Conducted within a well-defined legal framework

Rightto collectively bargain terms and conditions ofemployment represents one ofthe fundamentaldifferences between unionized and non-unionizedworkplaces

Without common interests there is nothing to

negotiate for; without conflict there is nothing to

negotiate about.

Peach and Kuechle (1975)


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Distinctive features ofthe collective

bargaining process

1. Complex: involve a broad range of issues

concerned with regulating human behaviour

2. Par ties conduct is more strictly regulatedlegally during bargaining

3. Conducted by representatives ofthe parties

who have final approval; i.e., agreements must

be ratified by union members / shareholders /city councillors

4. Union-management relationships are long

term


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Collective bargaining process

at a glance

Collective Bargaining

(Initiated by Notice to Bargain)

No Agreement Reached

Mediation

Conciliation

Voluntary/LegislatedArbitration

Agreement Reached

Strike/Lockout

Agreement Imposed

Ratification

Implementation


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Other relevantlegislative

frameworks In addition to the LRA, specialized legislation exists

governing labour relations forcertain occupations in thepublic sector:

Firefighters

Police

Hospitals

Crown employeesAmbulance services

Teachers

College faculty and staff

}No right to strike.

Bargaining disputes must

be resolved through

arbitration.

}Right to strike, but

workers mustcontinueto provide essential

services.

}Right to strike.


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Bargaining strategies

Distributive Competitive

Focuses on ones own substantive outcomes

Used when resources are (believed to be) fixed and

the parties interests are in conflict e.g., wages versus profit margins Goal in process is to find the other sides resistance

point

Integrative

Collaborative Focuses on joint outcomes when the parties basic

interests are not fundamentally opposed

Goal in process is joint problem-solving


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Preparation for bargaining

Notice to bargain

Must notify the other party of intention to bargain

[LRA, ss. 16, 59]

Notice may be given by either party in the period 90days before the expiry ofthe contract

Generally union notifies

Required to commence bargaining in good faith within

15 days after receipt of notice [LRA, s. 17] but nomandatory timeframe forcompletion of negotiations


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Finding the agreement zone

To reach agreement resistance points mustoverlap to some degree

Zone of potential agreement area of overlap

A non-quantifiable principle may prevent apositive settlement zone Issues of fundamental principle (e.g., the unions right

to exist) which are of an either/or nature, aregenerally not amendable to the sort oftrade-offinherent in the very notion of a settlement zone

A good reason for some issues (e.g., human rights,health & safety) to be established by legislation ratherthan leftto bargaining


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Potential Zone of Agreement

Unacceptable to

the union

Potential Zone of

Agreement

Unacceptable to

Management

Maximum

management

will offer

Managements Preferred Outcome

Minimum

Union

will accept

Unions Preferred Outcome

Min

Value

Max

Value


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Top 10 Current Negotiation Issues

Management Issues

Wages

Productivity

FlexibleWork Practices

Health, Pensions, Benefits

Organizational Change

Business Competitiveness

Training & Skills Development

Outsourcing/Contracting Out

Employment Security

Employment/Pay Equity

Technological Change

Variable Pay

Note: Respondents [n=199] were provided with a list of 12 possible choices (plus other) and asked to indicate the top three

negotiation issues.

Source: Industrial Relations Outlook 2010, Conference Board of Canada

Union Issues

Wages

Employment Security

Health, Pensions, Benefits

Employment/Pay Equity

Outsourcing/Contracting Out

Organizational Change

FlexibleWork Practices

Training & Skills Development

Business Competitiveness

Variable Pay

Technological Change

Productivity


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Strikes & Lockouts, 1982 2008

Source: Industrial Relations Outlook 2010, Conference Board

of Canada


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The labour movement engages in a broad

range of education activities

Core issues; i.e., organizing, collective bargaining

Leadership development; i.e., public speaking Technicaltopics; i.e., health & safety

Human rights

Representing a major investment ofunion

resources and a significant source ofhiddenknowledge in the workplace

Union actions: Education


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Union education (cont.)

UFCW Locals 175 & 633

Training and Education

Centre (supplemented by

Mobile Computer Training

Labs)

http://www.ufcw175.com/Educati

on/index.shtml

LIUNA Local 183 Life

Long Learning Centre

http://www.183training.com/

CAW Family EducationCentre,

Port Elgin, ON

http://www.caw.ca/en/about-the-caw-caw-family-education-

centre.htm


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Theres a direct relationship between the bread boxand the ballot box, and whatthe union fights for andwins atthe bargaining table can be taken away in thelegislative halls. Walter Reuther, UAW President

(1946-1970) Most Canadian unions engage in some form of

political action Through publicity / lobbying campaigns

Through alliance with NDP

Through community coalitions Through protests and demonstrations

International development work through Humanity / SocialJustice Funds

Union actions: Political action


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Union impacts

Unions have an impact on:

Members wages and working conditions

Productivity and performance of firms

Canadian economy

Canadian society as a whole


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Wage impacts

Direct wage impact Unionized workers in all industries, occupations, and

regions tend to earn more than their non-unioncounterparts.

Varies considerably by industry and occupation.

Overall, the union wage premium has declined sincethe 1980s, possibly due to:

Decreased bargaining power forunions;

Strategic reorientation ofunions to objectives otherthanwages (i.e., job security).

In 1999 the average union/non-union gap was 7.7%(Fang & Verma, 2002).


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Fringe benefits Unionized employers tend to pay greater portion

oftotalcompensation in fringe benefits Unionized workers have greaterconfidence in the

receipt of benefits.

Gap in fringe benefits is greaterthan wage gap,and it is not decreasing.

Benefits Coverage: Union vs. Non-union (%)

MedicalPlan

DentalPlan

Life/DisabilityInsurance

PensionPlan

All Employees 57.4 53.1 52.5 43.3

Unionized 83.7 76.3 78.2 79.9

Non-Unionized 45.4 42.6 40.8 26.6

Source: Akyeampong (2002)

Wage impacts (cont.)


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Wage dispersion Widespread collective bargaining tends to raise

the wage floor for relatively unskilled and low-wage workers.

There is less of a gap between the highest wageand lowest wage among unionized workers than isthe case for non-union workers.

Unionization increases the earnings, on average,of female workers more than that of maleworkers, which tends to narrow male-femaleearnings differences.

Overall, unions tend to reduce wage dispersionthroughout economy as well as withinorganizations.

Wage impacts (cont.)


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Productivity impacts

Considerable disagreement Neoclassical economists argue thatunions

reduce productivity Non-competitive wages

Strikes

Restrictive work rules HR specialists also note negative effects For ce managementto keep workers who should be

let go

Stand in the way of incentive programs

IR perspective argues thatunions have

positive effects Improve morale, reduce turnover

Spur bettertraining, policies, production methods

Worker-managementcommunication / cooperation

Monopoly

Collective

Voice

Labourmanagement relationship may be most

important factor


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Impacts on management of

organization

Impacts are substantial Collective agreements regulate many aspects of

behaviour.

Significantlimitation on managements freedom.

Biggest impactthrough grievance processes, workrules, and joint participation on committees.

May be positive (by providing certainty, predictabilityto management processes) ornegative (by

emphasizing legalistic observance ofcontract, stiflingcreativity and innovation).

Again, overall impactlikely depends on the labourmanagement relationship in each case.


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Impacts on society as a whole

Economic impacts: Neoclassical economists link unionization unambiguously

to higherunemployment

Empirical evidence is not as clear

Social and political impacts: Publicly-funded medicalcare

Unemployment insurance

Public pensions

Raised profile of safety issues

Trendsetter on human rights

Foster human capital (e.g., training) and socialcapital (i.e., interconnectedness)


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Trends: Falling union density

Trends in Union Membership and Density

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1981 1984 1986 1989 1993 1997 2003 2007

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Membership

OverallUnion

DensityPrivate Sector

Union Density

Source: Kumar, 2008


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Declining union strength is an

international phenomenon

0 20 40 60 80 100

France

United States

Netherlands

Japan

Germany

CANADA

Italy

United Kingdom

Australia

New Zealand

Ireland

Belgium

Norway

Sweden

%

2003 1990

Union density in selected countries, 1990 and

2003

Source: Visser, Jelle (2006), Union membership statistics in 24 countries, MonthlyLabor Review (January): 38-49.


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Factors contributing to union

decline worldwideUP

Globalization

Deregulation,privatization

Nonstandard employment

White collar technicalprofessional and servicesector jobs

Employer opposition Sophisticated HRM

strategies

Tech change

Diversity

DOWN

Stable, full-timeemployment

Blue collar industrialjobs

Union organizing success

Union bargaining power

Supportive labour

legislation (e.g., cardcertification)

Relatively homogeneousworkforce


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Summary oftrends in organizing

and union density All ofthe environmental factors facing unions

have tended to undermine density. E.g., employment has shifted to sectors and types of

work where unions are weak, and union density has

also fallen within key industries such as manufacturing. Union organizing efforts are rowing againstthe

tide.

A turnaround in the downward trajectory of

private sectorunion density is unlikely without: A majorchange in the public policy environment, or Changes in union strategies that dramatically

increasing theirlevel of organizing success.


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The Future: Union renewal?

Union renewal is

Organizational change in response to fundamentally

different external and internal environment.

Ref le

cted in one or more meas

ures of effe

ctivenessincluding,

Membership density

Bargaining power

Politica

lpower

Union innovation

Openness to change


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Organizational and politicalchange

Union renewal focuses on those changes overwhich the unions has some direct control andtherefore ability to change and act in new ways.

Expand union capacity to response to organizingchallenges

Bargain to meetunfilled needs of diverse workforce

Devise new ways to shape public policy

Initiate structuralchange to encourage participation in

decision making Build a work-centered view

Strengthen community links/networks


44/45

Changing composition of CAW

membership1987

143,000members

Manufacturing,

89%

Primary

industries, 9%

Other, 2%

2008

255,000members

Health & Soc.

Services, 9%

Other services,22%

Manufacturing,47%

Primary

industries, 3%

Transportation,

19%

Source: CAW convention reports


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The future forunions:Downhill all the way?

Trade unionism is slowly being limited in influence by changes which

destroy the basis on which it is erected. I see no reason to believe

that American trade unionism will so revolutionize itself within a short

period oftime as to become in the next decade a more potent social

influence. We may take it as probable thattrade unionism is likelyto be a declining influence in determining conditions oflabor.

George Barnett

American Economic Association

Presidential Address

December 29, 1932 w ithin six months, a wave ofunion

organizing and labourunrest began to sweep the U.S. (and

Canada), climaxing a few years later with the birth of a new labour

federation [CIO], the unionization of much ofthe industrial sector,

and a three-fold jump in union density. See: Kaufman 2004

Documents

Intro to Labour Relations.nov 19 2010 (1)