Labour UnionsLabour Unions

What is it?What is it?

An organization of workers that An organization of workers that collectively promotes the interest of collectively promotes the interest of its member and negotiates with its member and negotiates with employers.employers.

Does much more than affect wage ratesDoes much more than affect wage rates Have been shaping labour relations, Have been shaping labour relations,

laws, and working conditions in Canada laws, and working conditions in Canada for over 150 yearsfor over 150 years

Three Common TypesThree Common Types

Trade Unions (Craft Unions)Trade Unions (Craft Unions) Industrial UnionsIndustrial Unions Public Sector UnionsPublic Sector Unions

Trade UnionsTrade Unions

Represent workers in a single Represent workers in a single occupation regardless of where they occupation regardless of where they work.work.

Ex. International Brotherhood of Ex. International Brotherhood of Electrical Workers.Electrical Workers.

Very common in construction industry.Very common in construction industry.

Industrial UnionsIndustrial Unions

Represent all workers in a given Represent all workers in a given industry regardless of the job that industry regardless of the job that they performthey perform

Ex. Canadian Auto Workers union (CAW)Ex. Canadian Auto Workers union (CAW) Represent workers in the automobile Represent workers in the automobile

industry whether they are on the industry whether they are on the assembly line or maintenance workers.assembly line or maintenance workers.

Public Sector UnionsPublic Sector Unions

Represent workers who are Represent workers who are employed by any of the levels of employed by any of the levels of government in Canada.government in Canada.

Ex. Public Service Alliance of Canada Ex. Public Service Alliance of Canada (PSAC)(PSAC)

Canadian Union of Public Employees Canadian Union of Public Employees (CUPE)(CUPE)

Union MembershipUnion Membership

The “Local” – the local branch of the The “Local” – the local branch of the union.union. Join the union through the localJoin the union through the local Pay union dues to the local (local keeps Pay union dues to the local (local keeps

small portion)small portion) Members vote for officers of the localMembers vote for officers of the local Local officers conduct negotiations Local officers conduct negotiations

between workers and employersbetween workers and employers SMALL PART OF THE UNION BUT SMALL PART OF THE UNION BUT

IMPORTANT!IMPORTANT!

Collective BargainingCollective Bargaining

The negotiation between representatives The negotiation between representatives of workers and employers with the of workers and employers with the purpose of establishing terms and purpose of establishing terms and conditions of employment that are conditions of employment that are acceptable to both sides. acceptable to both sides.

Collective Agreement = the contractCollective Agreement = the contract What if an agreement cannot be What if an agreement cannot be

reached?reached?

ArbitrationArbitration

An arrangement in a dispute in which An arrangement in a dispute in which both labour and management agree both labour and management agree to accept the decision of a third party to accept the decision of a third party (arbitrator) (arbitrator)

Conciliation/MediationConciliation/Mediation

A situation in a dispute in which both A situation in a dispute in which both labour and management agree to labour and management agree to submit their proposals to a third submit their proposals to a third party. Unlike an arbitrator, a party. Unlike an arbitrator, a conciliator cannot bind the two conciliator cannot bind the two parties.parties.

StrikeStrike

A strike a temporary work stoppage A strike a temporary work stoppage by employeesby employees Designed to force an employer to meet Designed to force an employer to meet

the union’s contractual demandsthe union’s contractual demands Majority of workers have to agree to Majority of workers have to agree to

take this actiontake this action Certain conditions must be met (expiry Certain conditions must be met (expiry

of old collective agreement, use of of old collective agreement, use of conciliation or mediation)conciliation or mediation)

LockoutLockout

A lockout occurs when an employer A lockout occurs when an employer shuts down the place of employment shuts down the place of employment in order to force workers to accept its in order to force workers to accept its contract offercontract offer Equivalent to a strike but from the Equivalent to a strike but from the

employers perspectiveemployers perspective

Strike/LockoutStrike/Lockout

Costs of both are high (wages and Costs of both are high (wages and output)output)

Related industries can be affectedRelated industries can be affected Consumers may not be able to obtain Consumers may not be able to obtain

goods or services (bus strike)goods or services (bus strike) Can interfere with pension amountCan interfere with pension amount Other strategies can be usedOther strategies can be used

Rotating strikeRotating strike Work-to-ruleWork-to-rule BoycottBoycott

Rotating StrikeRotating Strike

Union organizes the withdraw of Union organizes the withdraw of services at individual work sites on a services at individual work sites on a rotating basis (for usually a day or rotating basis (for usually a day or two)two) Less disruptionLess disruption Less output and wages lostLess output and wages lost

Work-to-RuleWork-to-Rule

When employees perform only the When employees perform only the duties specifically stated in their duties specifically stated in their contractscontracts Effective when employees find that they Effective when employees find that they

are performing a lot of work after hoursare performing a lot of work after hours

BoycottBoycott

In a boycott, people are asked not to In a boycott, people are asked not to purchase the product produced by purchase the product produced by the employerthe employer Lower sales to the point where the Lower sales to the point where the

employer might reconsider its positionemployer might reconsider its position

Open Shop/Closed ShopOpen Shop/Closed Shop

Open Shop Union – membership is Open Shop Union – membership is voluntary.voluntary.

Closed Shop Union – the employer Closed Shop Union – the employer may only hire workers who are may only hire workers who are already members of the unionalready members of the union

Union Shop – hire whoever, but they Union Shop – hire whoever, but they must eventually join the unionmust eventually join the union

Fringe BenefitsFringe Benefits

Payments and services other than Payments and services other than wages that are provided by the wages that are provided by the employeremployer Medical/DentalMedical/Dental PensionPension Life insuranceLife insurance Paid vacationPaid vacation Cost-of-living Allowances – keep wages Cost-of-living Allowances – keep wages

increasing on par with general price increasing on par with general price increasesincreases

Unions and WagesUnions and Wages

Unions can use their power to gain Unions can use their power to gain wage increases through:wage increases through: Restricting the supply of labourRestricting the supply of labour Increasing the demand for labourIncreasing the demand for labour Balancing the power of monopolies and Balancing the power of monopolies and

oligopoliesoligopolies

Restricting the supply of labourRestricting the supply of labour

Long apprenticeshipsLong apprenticeships High union initiation feesHigh union initiation fees Refuse new membersRefuse new members Refuse to let non-union members do Refuse to let non-union members do

the jobthe job

Increase the demand for labourIncrease the demand for labour

Help employers modernize plants Help employers modernize plants and improve worker productivityand improve worker productivity

Encourage the purchase of union-Encourage the purchase of union-made productsmade products

Reduce amount of non-union made Reduce amount of non-union made productsproducts

Balance of Power of Monopolies Balance of Power of Monopolies and Oligopoliesand Oligopolies

Organize workers to give them more Organize workers to give them more power and employer lesspower and employer less

Word PowerWord Power

What do you think the following terms What do you think the following terms mean?mean? Sweated labourSweated labour Wildcat StrikeWildcat Strike BlacklistBlacklist ScabScab Yellow-dog contractYellow-dog contract Feather-beddingFeather-bedding Sweetheart agreement or contractSweetheart agreement or contract StoolieStoolie

QuestionsQuestions

1.1. Explain the difference between a trade Explain the difference between a trade union and an industrial unionunion and an industrial union

2.2. List the terms that are negotiated List the terms that are negotiated through collective bargainingthrough collective bargaining

3.3. What kind of help is available to unions What kind of help is available to unions and employers if they cannot reach a and employers if they cannot reach a collective agreement on their own?collective agreement on their own?

4.4. Besides a strike, what other tools can a Besides a strike, what other tools can a union use to apply pressure?union use to apply pressure?

5.5. How do unions attempt to raise wages of How do unions attempt to raise wages of their members besides through collective their members besides through collective bargains?bargains?