Work Stoppages in Social Economy Organizations: Dimension, Causes and Beyond

Kunle AkingbolaOISE, University of Toronto

Introduction

The study examines the scale, duration and dimension of work stoppages in SEOs in Ontario.

Explains the contextual dimension by examining the causes and implications of work stoppages for clients, employees, and community.

Introduction

Examines whether explanation of work stoppages in SEOs is consistent with the collective voice analysis of strikes and whether these labour disputes are indication of social movement unionism.

Provides an insight on the state of labour relations and, to some extent, HRM in SEOs

(Quarter, 2006)

Defining Social Economy Organizations

The term social economy was originally coined in France and was widely used in francophone areas such as Belgium and Quebec.

Social economy is a bridging concept

(Quarter, 2006)

Defining Social Economy Organizations

Organizations in the social economy have social objectives central to their mission and their practice.

These organizations also have, either explicit economic objectives or generate some economic value through the services they provide and purchases that they undertake.

(Quarter, 2006)

Defining Social Economy Organizations

Social economy organizations include nonprofits and cooperatives.

In addition to sharing similar characteristics as outlined above, their economic impact, especially for nonprofits is often not recognized.

Economic and Social Contributions

Social economy organizations are an important element in the foundation of many countries.

People rely on these organizations for: economic development employment, social justice advocacy, and mutual support.

Economic and Social Contributions

The 9,000+ cooperatives in Canada employ over 160,000 people

Non-financial cooperatives generated $26.2 billion in revenue in 2003

Economic and Social Contributions

Some of the insurance cooperatives are among the largest employer in their business (Co-operative Secretariat. 2006)

Similarly, the 161,000 nonprofit and voluntary organizations operating in Canada generated $112 billion in revenue in 2003 (Imagine Canada, (2004).

Theoretical Framework

Structural and institutional perspective posits that some industries and occupations are more prone to strike due to inherent social characteristics of the work that enables collective consciousness and community integration (Kerr and Siegel, 1954).

Neoclassical economic explanation Agitator theory

Theoretical Framework

Two theoretical explanation of labour disputes from the structural and institutional perspective are relevant to the context of SEOs

1. Collective voice approach2. Social movement unionism

(Akingbola, 2004; Godard, 1992; Hyman, 1989)

Theoretical Framework

Collective voice approach Expression of discontent Inherent labour-capital conflicts Asymmetrical employment relation Changes in nonprofits mean managers have

become agents of government or other funders

(Mathers et al., 2004)

Theoretical Framework

Social movement unionism occurs when unions move away from business unionism (wages and conditions of employment)

Partnership with civil society Role in raising consciousness about social

justice, social values and community issues

(Mathers et al., 2004)

Theoretical Framework

Is increased unionization in nonprofits an opportunity to spread social movement unionism from within the civil society?

Research Questions

What is the pattern of work stoppages in SEOs Are work stoppages in SEOs associated with

size (number of employees)? Are SEOs that depend on government (those

that provide public services) more prone to work stoppages than others?

Research Questions

Is wages and condition of service the major cause of work stoppages in SEOs?

Is service quality and advocacy issues rationale for work stoppages in SEOs?

What are the impacts of work stoppages in SEOs on clients and the community?

The Study

Quantitative data Data on work stoppages between 1994 and

2005 from the Ontario Ministry of Labour 1777 work stoppages in Ontario, 196 (11.03%)

SEOs

The Study

Types: i) nonprofits and cooperatives; ii) private, municipal, provincial, federal and various; iii) Association Canada categories:

Simple descriptive statistics and regression analysis for research questions 1 to 3

The Study

Qualitative data Media archives from 1994 to 2005 Total of 71 media reports on labour disputes Twenty-five (35%) were identified as SEOs To examine research questions 4 to 6

Findings and Discussion

Stoppages by Year

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

YEAR

0

10

20

30

Cou

nt

Type of Work StoppagesILS

Quantitative ResultsPerson days lost 1994 to 2005

Bars show Sums

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

YEAR

0.00

25000.00

50000.00

75000.00

Stoppages by Sector

Type of Organization: Associations Canada Category

0

20

40

60

80

100

Cou

nt

Type of Work StoppagesILS

Stoppages by Union

ALLIE

D H

EA

LTH P

RO

FES

SIO

NA

LSB

RE

WE

RY

& P

RO

FES

SIO

NA

L WO

RK

ER

SB

RIC

KLA

YE

RS

INTL

CD

N A

UTO

WO

RK

ER

SC

DN

PU

BLIC

EM

PLS

(CU

PE

)C

OM

MU

NIC

ATIO

NS

EN

ER

GY

PA

PE

RW

KR

ELE

CTR

ICA

L WO

RK

ER

S (IB

EW

)FO

OD

& C

OM

ME

RC

IAL W

OR

KE

RS

HO

TEL E

MP

LOY

EE

SIN

DE

PE

ND

EN

T LOC

AL U

NIO

NIN

TL OP

ER

ATIN

G E

NG

INE

ER

SM

US

ICIA

NS

OFFIC

E &

PR

OFE

SS

ION

AL E

MP

LSO

NT N

UR

SE

S A

SS

NO

NT P

RA

CTIC

AL N

UR

SE

SO

NT P

UB

LIC S

ER

VIC

E E

MP

LSP

AIN

TER

SP

UB

LIC S

ER

VIC

E A

LLIAN

CE

SE

RV

ICE

EM

PLO

YE

ES

INTL

STR

UC

TUR

AL IR

ON

WO

RK

ER

STE

AM

STE

RS

UN

ITED

STE

ELW

OR

KE

RS

UNION NAME Codes

0

10

20

30

40

50

Cou

nt

Type of Work StoppagesILS

* number excludes work stoppages involving more than one organization.

Findings and Discussion

SEOs lost 490,190 persons days to 196 work stoppages resulting from labour disputes. .

Size related to work stoppages R² = .07. adjusted R² = .07. p <.01.

* number excludes work stoppages involving more than one organization.

Findings and Discussion

Small organizations more prone to labour disputes.

Highest person days lost in 1996, 1998 and 2000

Coincided with downsizing in public sector, downloading to nonprofits and new funding regime

* number excludes work stoppages involving more than one organization.

Findings and Discussion

More work stoppages in health care organizations than in other areas of the social economy.

Small community health care organizations compared to large hospitals.

Relationship between SEOs classified as provincial by the MOL and work stoppages R² = .03. adjusted R² = .02. p <.05.

* number excludes work stoppages involving more than one organization.

Findings and Discussion

Healthcare and MOL classification findings suggest that:

Organizations that provide public services are more prone to work stoppages than others.

Blurring of the boundaries between nonprofits and the public sector

Absence of binding arbitration as in HLDAA

Findings and Discussion

Wages and conditions of service appears to be the leading cause of work stoppages

However, these are in addition to social objectives such as advocacy, quality of care, and safety of clients in many disputes

Root cause of many of the work stoppages was funding

`We've asked to meet with Janet Ecker, but she says this is strictly a labor dispute. But it's more than that. This situation is due to the minister's cutbacks'' This agency's budget was cut by $1.8 million and management is taking it out on the working conditions and benefits of these low-paid people Management will not talk even though we have proposed ways to save money. And now we hear they plan to use replacement workers (CUPE President Judy Darcy).

Findings and Discussion

Work stoppages affect clients either directly or indirectly

Clients were left with reduced or no services Either due to the small size, limited resources

or the specialized nature of the services, the SEOs could not possibly mitigate the impact of the labour disputes.

Findings and Discussion

Work stoppages affect the primary stakeholders—the organization, clients, employees and the community in the short term.

However, the outcome of many of the labour disputes suggest that we could argue that they are as short term pain for long term gain.

Findings and Discussion

Collective bargaining gain on quality of care, workload and safety is beneficial to clients, employees, the organization and the community.

Findings and Discussion

Example: strike by employees of Good Shepherd Centres in Hamilton

Multidimensional benefits of collective bargaining in SEOs.

Security concerns affect clients, employees, the effectiveness and bottom line of the organization.

Findings and Discussion

Findings provide evidence of collective voice Employees embracing collective voice option

through work stoppages Increased unionization creates potential for

social movement unionism Neo classical economics explanation

Conclusions

Funding Managers as agents of funders Erosion of values

QUESTIONS

THANK YOU