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THE UNION-MANAGEMENT RELATIONSHIP Week 5 _________________________. Dr. Teal McAteer-Early. An Integrated Model of the Industrial/Labour Relations System. Inputs The Actors Conversion Processes Outputs. Six Perspectives on the Study of Industrial/Labour Relations. Classical Institutional - PowerPoint PPT Presentation
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Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
THE UNION-MANAGEMENT RELATIONSHIP
Week 5_________________________
Dr. Teal McAteer-Early
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
An Integrated Model of the Industrial/Labour Relations System• Inputs
• The Actors
• Conversion Processes
• Outputs
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Six Perspectives on the Study of Industrial/Labour Relations
• Classical• Institutional• Neoclassical• Human Resource Management• Strategic Choice• Political Economy
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Union Defined
A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement.
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Collective Agreement
A contract negotiated between union and employer,outlining terms and conditions of
employment.
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Why do Employees Join Unions?
Reasons for Reasons for JoiningJoining
• Job dissatisfactionJob dissatisfaction• Individual attitudes Individual attitudes
toward unionstoward unions• Perceived union Perceived union
instrumentalityinstrumentality
Reasons for Not Reasons for Not JoiningJoining
• Belief that union Belief that union membership may harm membership may harm chances for promotionchances for promotion
• Extra costs for union Extra costs for union dues or strikesdues or strikes
• Negative opinions Negative opinions toward unionstoward unions
• Fair supervisory Fair supervisory treatment/policiestreatment/policies
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Attitudes Toward UnionsStatement Canada U.S. Workers who approve of unions 67% 70% Workers who believe that, as a 52% 57% whole, unions are good Nonunion employees who, if an 33% 47% election were held tomorrow, would vote for unionization Nonunion employees who feel 42% 37% that unions are not needed since workers get fair treatment now Figure 14-1
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Union Goals and Philosophy
Business UnionismBusiness Unionism Social (Reform) UnionismSocial (Reform) Unionism
Practice of unionsPractice of unionsseeking to improveseeking to improvethe wages, hours,the wages, hours,and workingand workingconditionsconditionsin a businesslike in a businesslike mannermanner
A characteristic ofA characteristic of unions seeking to furtherunions seeking to further
members’ interests bymembers’ interests byinfluencing the social,influencing the social,
economic, and legaleconomic, and legalpolicies ofpolicies of
governmentsgovernments
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Union Structure and Function
National/International UnionsNational/International Unions
• Many local unions are part of a larger national or international union
Local UnionsLocal Unions
• Basic unit of union organization formed in a particular plant or locality
Craft UnionsCraft Unions
• Composed of workers who possess the same skills or trade
Industrial UnionsIndustrial Unions
• Includes the unskilled and semiskilled workers at a particular location
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Trends in Union Membership
• Union Growth and Decline– The number of women members has been
increasing rapidly– Unions are organizing service employers– Part-time employees less likely to be unionized– Larger workplaces are more likely to be unionized
• International Trends– A number of countries have experienced a decline
in union density
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Impact of Union Representation
ProductivityProductivity
Wages & Wages & benefitsbenefits
StrikesStrikes • Most collective agreements are settled without a strike
• Higher wages, particularly for part-time employees
• More comprehensive benefits
• Relationship between unionization and productivity is subject to debate
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Canadian Labour Legislation
Common Core ofCommon Core ofLabourLabour
LegislationLegislation
Right to joinRight to joina uniona union
Good faithGood faithbargainingbargaining
No strikes orNo strikes orlockouts duringlockouts during
agreementagreement
ConciliationConciliation
Prohibition ofProhibition ofunfair labour unfair labour
practicespractices
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Labour Relations Boards
Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Influences on Unionization
• External Factors– Increase in unionization activity– Major increase in the workforce is planned
• Internal Factors– Turnover and absenteeism rates are high– Employees are dissatisfied– Pay and benefits are below average– Complaint procedures are ineffective
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Unfair Labour Practices
ManagementManagement UnionsUnions
• Interfering in the formation of a union or contributing financially
• Discriminating based on union membership or because employee exercises rights
• Intimidating or coercing an employee to join/not join
• Trying to bargain when the union is not the certified agent
• Persuading employees during working hours, or at the workplace
• Illegal strikes• Failing to represent
employees fairly
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
3 Phases of Collective Bargaining
Phase 1Phase 1
PreparationPreparationforfor
negotiationsnegotiations
Phase 2Phase 2
Face-to-face Face-to-face negotiationsnegotiations
Phase 3Phase 3
Approving Approving the the
proposed proposed agreementagreement
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Mutual Gains Bargaining
• Moves away from traditional adversarial approach
• Win-win approach• Usually preceded by conflict resolution
training• Requires both labour and management to
have commitment, trust, respect and a long-term focus
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Conciliation & Mediation
• Conciliation– A government-appointed third party attempts
to bring together the parties to reach agreement
– In most provinces, a strike is not permitted before conciliation efforts
• Mediation– Disputing parties voluntarily choose to
reconcile their differences through a third party
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Administering the Agreement
• Grievance– Complaint that some aspect of a collective
agreement has been violated• Grievance procedures
– Most collective agreements include formal multi-step procedures to resolve grievances
• Arbitration– Used to resolve a grievance when an
acceptable solution cannot be reached
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Contract Provisions• Union shop
– Employers may hire anyone they want, but all workers must join the union within a specified period
• Dues check-off– Employer required to deduct union dues
• Seniority– Length of the worker’s employment
• Discipline– “Just cause” is required to discipline or
discharge
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
HRM & Bargaining Unit Employees
• More than 90% have a pension plan• 79% have an orientation program• 82% have an EAP• 54% have formal performance appraisal• Unions have generally avoided
contingency compensation plans e.g. employee stock ownership plans
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Implications of Union Avoidance
• Union Suppression– Fighting union representation– Example: Employer intimidates workers,
threatens to close operation• Union Substitution
– Examines what unions bring to the employment relationship and tries to introduce these features
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Features of Union Substitution
UnionSubstitution
EmployeesEmployeeshave “voice”have “voice”
Pay/benefitsPay/benefitsare parallelare parallel
Evaluate basedEvaluate basedon performanceon performance
MaximizeMaximizeopportunitiesopportunities
DesignDesignsatisfying jobssatisfying jobs
SelectSelectqualified workersqualified workers
Train workersTrain workers& managers& managers
Establish fairEstablish fairstandardsstandards
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Managing in a Union Environment
Unions impact the HRM function:• HR department may expand to add
labour relations specialists• Greater centralization of employee
record-keeping and discipline to ensure uniformity
• Management has less freedom to make unilateral changes
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition
Labour-Management Cooperation
• Organizational performance is enhanced when labour and management cooperate
• Cooperative methods include: – Prior consultation– Sincere concern– Training programs– Joint study committees– Third parties