The Labour Relations Process

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The Labour Relations Process

• MGT 460

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OVERVIEW

• This lecture will cover
• Factors leading to unionization
• The Unionization Process
• Consequences of Unionization
• Challenges to Labour Collective Bargaining

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Unionization Rate

• Canada 29 of non-agricultural workforce
• U.S. 13
• Sweden 80
• France 10
• Germany 33
• Japan 30
• India 7

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Employer-Employee Relations

• Individual Contracts - written or implicit
• direct representation
• Collective Voice
• Indirect representation

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The Labour Relations Paradigm

• Accept the legitimacy of employee needs
• Recognize their right to bargain
• Negotiate contracts to achieve labour peace
• Develop a relationship based on mutual respect,
  trust and accommodation
• Unions, as specialists in employee interests, can
  help managers manage better

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The Wagner Act Model

• Right to unionize
• Right to bargain / Both parties obliged to
  bargain in good faith
• Exclusive bargaining agent
• Right to strike
• Labour Relations Boards to administer the law -
  quasi government agency

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1.The Unionization Process

• TWO MAJOR QUESTIONS IN THE UNIONIZATION PROCESS
• A. Why Do Employees Unionize?
• B. How Do Employees Become Unionized?

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Desire for Unionization

• Why workers join unions?
• To get more
• To protect against arbitrary treatment by
  managers
• To gain identity
• To reform society

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(1.A) Why Employees Unionize

• Practical Considerations
• -Bad management
• -Freedom from arbitrary treatment.
• -Job security

• Instrumental/Pecuniary Considerations
• -Higher Wages,
• -Better Benefits,
• -More Paid Vacation,
• -Better Overtime Provisions etc.,
• Voice Considerations
• -Collective Voice
• -Working Conditions
• -Enshrining High Wages/Good Working
  Considerations

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(1b).How Workers Become Unionized

• Federal Legislation
• Some industries are federally regulated
  (transportation, communication, banks). But most
  workers fall under provincial legislation.
• Provincial Legislation
• Every province in Canada has its own labour
  legislation governing collective bargaining and
  organizing.
• Ontario Bill 7 vs. Bill 40.

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(1b) contd

• Organizing Steps
• Step 1 Employees at an organization and a union
  make contact and set up an organizational
  meeting.
• Step 2 Formation of in-house org. committee and
  the signing of Authorization Cards.
• Step 3 Application is made to the labour board.
• Step 4 Some jurisdictions (Ontario) require a
  vote.
• Step 5 Issuance of certificate by labour
  relations board.
• Step 6 Election of Bargaining Committee and
  Contract Negotiations.

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Brief History of Unionization

• Early unions called guilds date back to
  biblical times
• Craft unions in the middle ages
• AFL (US) and TLC (Canada) craft unions in early
  20th cent.
• Industrial unions grow in the 1920s CIO (US) and
  CCL(Canada)
• Mergers in 1956 AFL-CIO (US)
• TLCCCL CLC (Canada)

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Two paradigms for unionsBusiness Unionism

• Focus on gains in wages and working conditions
  for members
• More successful at certain times during history
• easier to sustain in the North American context
• Exemplars AFL TLC construction unions

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Two paradigms for unionsReform Unionism

• Focus on community gains not just gains for
  members
• Appeal is emotional rather than pragmatic
• Spurts of growth followed by decline harder to
  sustain in North America
• Exemplars IWW One Big Union
• Knights of Labour

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2.Labour Unions

• Structure
• Labour Federations - CLC (Canadian Labour
  Congress), OFL (Ontario Labour Federation)
• National/International Unions - CAW (Canadian
  Auto Workers) or Teamsters.
• Locals - Each national has a local. A local is
  located at the level of the bargaining unit.
  Which is usually the plant or organization where
  workers were organized.

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2. Labour Unions (contd)

• Overview Canadian Labour Congress
• Represents 2.4 million employees or 60 of all
  unionized employees. But is weak compared to
  union federations in Europe. Why?
• The CLC attempts to influence public policy
  decisions and lobbies on behalf of workers (both
  unionized and non unionized)
• They also mount information campaigns to oppose
  legislation (I.e NAFTA). Why?
• They also settle disputes among competing unions.

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2.Labour Unions (contd)

• OVERVIEW National/International Unions
• International unions tend to be affiliates of
  American Unions.
• Both national and international unions are made
  up of local unions.
• Primary objective of the national unions, is to
  help organize, provide strike support, and assist
  negotiations for the local affiliates.
• Most decision making authority is vested at the
  local level (bottom-up unionism).

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2.Labour Unions (contd)

• Overview Local Unions
• Employees can always form their own union with no
  affiliation to a national, in which case the
  local is the union.
• Most locals are members of national/international
  unions.
• Despite On the Waterfront Stereotypes unions
  are democratic organizations. Any member can
  participate and vote in elections.
• The role of the union steward. Protects workers
  at the shop floor.

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3. Challenges to Unions

• Globalization
• Technology
• Industrial Shift
• Capital Mobility
• Employer Resistance
• Carrots (HRM)
• Sticks (Threats)

• Hostile Legislation
• Bill 7 vs. Bill 40
• Worker Attitudes
• Growth of Non-Standard Work
• Part-time work
• Contingent workers

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The Old Labour Relations

• Arms-length
• Annual Improvement in Wages
• Detailed work rules
• Position bargaining work stoppages
• Arbitrations

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Employer Responses in Collective Bargaining

• Traditional
• Arms-length
• Adversarial
• Concessions
• Give backs
• One-time solution
• Reinforces traditional attitudes

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Employer Responses in Collective Bargaining

• Strategic Bargaining
• quid pro quo
• wage vs. employment tradeoffs
• new investment vs. work rule changes
• Strategic Alliances
• Joint Committees
• Joint Governance

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The New Labour Relations

• Interest-based bargaining
• Wage gains through productivity gains
• Bilateral grievance process
• Flexible work rules
• Joint Committees

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The Pyramid of Constructive Dialogue in Labour
Relations