Chapter 14 â The Dynamics of Labour Relations
Chapter 14 – The Dynamics of Labour Relations Government Regulation of Labour Relations • Highly decentralized system • Specific laws for different sectors/industries/workers The Industrial Relations Disputes and Investigation Act • Specifies the right of workers to join unions • Allows unions to be certified as bargaining agents by a labour relations board • Requires management to recognize a certified union as the bargaining agent for a group of employees • Canada Labour Relations Board (LRB) established to administer and enforce the Canada Labour Code • Duties of LRB: o Administer the statutory procedures for transfer, acquisition, and termination of bargaining rights o Hear complaints related to unfair labour practices o Supervise strikes/lock out votes o Determine whether bargaining was done in good faith o Remedy violations of collective bargaining legislation Labour Relations Process
•
Labour Relations Process – logical sequence of 4 events o workers desire collective representation o union begins organizing campaign o collective negotiations lead to a contract o the contract is administered
Why Employees Unionize
• • •
•
majority of research comes from the study of blue-collar employees in private sector these studies conclude that employees unionize as a result of economic need, general dissatisfaction w/ managerial practices and/or as a way to fulfill social and status needs employees see unionisms as a way to achieve results they cant achieve individually Union shop – condition of the collective agreement that requires employees to join the union as a condition of their employment
Economic Needs • Dissatisfaction with wages, benefits and working conditions appears to provide the strongest reason to join a union Dissatisfaction with Management • Employees may seek unionizations when they perceive that managerial practices regarding promotion, transfer, shift assignment, or other job-related policies are administered in an unfair manner
•
Failure of employers to give employees an opportunity to participate in decisions affecting their welfare may encourage union membership
Social and Leadership Concerns • Employees whose needs for recognition and social affiliation are being frustrated may join unions as a means of satisfying these needs • In an union, people can fraternize with other employees who have similar desires, interests, problems • Employees may join unions for the same reason one would join a club to enjoy the companionship of others Organizing Campaigns
•
Most organizing campaigns are begun by employees rather than union organizers
Organizing Steps 1. Employee/union contact • To win support, labour organizing must build a case against the employer and for the union 2. initial organizational meeting • attract more supporters • uses info in step 1 to address employee needs and explain how the union can secure these goals • organizational meetings identify employees who can help the organizer direct the campaign • organizational meetings establish communication chains that reach all employees 3. formation of in-house organizing committee • composed of employees willing to provide leadership to the campaign • Authorization card - a statement signed by an employee authorizing a union to act as their representative for the purposes of collective bargaining • Number of signed authorization cards demonstrates the strength of the union 4. application to labour relations board 5. issuance of certificate by labour relations board • LBR reviews application and informs employer and employees about it, giving them an opportunity to challenge 6. election of bargaining committee and contract negotiations • once LRB determines the union is certified the bargaining committee is put it place to start negotiating a collective agreement Employer Tactics • employers must not interfere with the labour relations process of certification • prohibited from dismissing, disciplining or threatening employees for exercising their right to form a union • must bargain in good faith and demonstrate a commitment to bargain fairly and seriously Union Tactics
• • •
•
Prohibited from interfering with the formation of an employers organization Bargaining unit – a group of two or more employees who share common employment interests and condition and may reasonably be grouped together for purposes of collective bargaining Cant engage in activities (i.e. strikes) before the expiration of the union contract Unfair labour practices – specific employer and union illegal practices that operate to deny employees their rights and benefits under deferral and provincial labour law
How Employees Become Unionized • Unions present documentation to the appropriate labour relations board for certification • LRB must certify a union before it can act as a bargaining unit for a group of employees
• •
To acquire certification the union must demonstrate that its obtained the minimum level of membership support required by the labour relations board Union submits evidence – authorization cards and proof that initiation dues have been paid
Voluntary Recognition • All employers may voluntarily recognize/accept a union rarely happens except in construction industry Regular Certification • Begins with union submitting the required evidence of minimum membership to the LRB Presharing Votes • If there’s evidence of irregularities (unfair labour practices) a prehearing vote may be taken • Purpose: establish the level of support among workers Contract Negotiation
•
Once a union has been certified by LRB, employer and union are legally obligated to bargain in good faith over teams and conditions of a collective agreement
Decertification • If majority of employees indicate they don’t want to be represented by the union anymore or they want to be represented by another or the union has failed to bargain, an application for decertification can be made to the LRB Impact of Unionized on Managers • Why would employers oppose the unionization of their employees? o Wages and benefits are higher in unions o Unions have a significant effect on the rights exercised by management in making decisions about employees o Unionization restricts the freedom of management to formulate Hr policy unilaterally and can challenge authority of supervisors
Challenges to Management Decisions • Management rights – decisions regarding organizational operations over which management claims exclusive rights Loss of Supervisory Authority • When disciplining employees, supervisors must be certain they can demonstrate just cause for their actions, because these actions can be challenged by the union and the supervisor called as defendant during a grievance hearing • If challenge is supported, supervisors effectiveness in coping with later disciplinary problems may be impaired • Specific contract language also reduces the supervisors ability to manage in areas such as scheduling, training, transfers, performance evaluation and promotion Structures, Functions, and Leadership of Labour Unions
• •
Craft unions – unions that represent skilled craft workers
•
Employee associations – labour organizations that represent various groups of professional and white-collar employees in labour-management relations Researchers describing labour organizations divide them into 3 levels o Central labour congresses o International and national unions o Local unions belonging to a parent national or international union
•
Industrial unions-
unions that represent all workers – skilled, semi-skilled, unskilled employed along industry lines
The Canadian Labour Congress • CLC • Federation of unions • Most influential labour federation in Canada • Attempts to influence legislation and promote programs that are of interest to labour • Does the above by lobbying, resolving jurisdictional disputes, maintaining ethical standards and providing education and training to its members International and National Unions • International unions tend to be affiliates of American unions • International and national unions are made up of local unions • Objective of these “umbrella” unions o Help organize local unions o Provide strike support o Assist local unions with negotiations o Grievance procedures
•
In Canada, most of the decision-making authority in national unions is vested in the local unions or at bargaining unit level bottom-up unionism
•
International unions (craft unions) are more likely to retain a greater degree of control over the affairs of local unions top-down unionism
Local Unions
• • •
Employees of any org can form their own union, with no affiliation to a national or international union In this situation, local is the union Unionized employees pay union dues that finance the operation of the local union
•
Local unions make their own decisions but turn to national union for collective bargaining help, research and assistance
•
Officers of a local union are responsible for negotiating the local collective agreement for ensuring the agreement is adhered to, and for investigating and processing member grievances
Role of the Union (Shop) Steward • Union steward – employee who as a nonpaid union official represents the interests of members in their relations with management • Stewards are elected by union members and serve without union pay – they are full time employees and spend lots of time after working hours investigating and handling members problems • Viewed as a person in the middle cause between conflicting interests and groups • Insight people working for the betterment of employees and the organization Role of the Business Agent • Business agent – normally a paid labour official responsible for negotiating and administering the collective agreement and working to resolve union members problems • Required to assume the role of counselor in helping union members with both personal and job-related problems • Expected to resolve grievances that cant be settled by the union stewards • Administer the daily affairs of the local union Union Leadership Commitment and Philosophies
•
Union members possess enthusiasm and a commitment to the ideals of unionism and employee welfare that’s difficult for managers to understand and accept
•
Union leader who ignores the demands of union members may risk being voted out of office To be effective leaders, union officials must pay constant attention to the philosophy and general goals of the labour movement Goals usually include increased pay and benefits, job security and improved working conditions
• •
Labour Relations in the Public Sector • The three largest unions in Canada represent public-sector employees • The Canadian Union of Public Employees (CUPE) is the largest union in Canada
• • •
The National Union of Public and General Employees (NUPGE) is the second largest Public Service Alliance of Canada (PSAC) is the largest union representing employees at the federal level Two differences between public-sector collective bargaining and private-sector bargaining o Political nature of the labour-management relationship o Public-sector strikes
Political Nature of the Labour-Management Relationship
• • •
•
Government employees aren't able to negotiate with their employers on the same basis as their counterparts in private organizations Labour relations in the private sector has an economic foundation whereas in government its foundation tends to be political A strike in the private sector is a test of the employers economic staying power and the employers customers have alternative sources of supply – while Governments must stay in business because alternative services are usually not available In a private organization, authority flows downward from the board of directors and from the shareholders – authority in the public sector flows upward from the public at large to their elected reps and to the appointed managers
Strikes in the Public Sector • Strikes by government employees create a problem for lawmakers and the general public
• • •
Various provincial legislatures have given public employees the right to strike Public-sector unions challenge that denying them the same right to strike as employees in the private sector greatly reduces their power during collective bargaining To avoid critical situations, various settlement methods are used for resolving collective bargaining deadlocks
•
Compulsory binding arbitration – binding method of resolving collective bargaining deadlocks by a neutral third party (police offers, firefighters and other jobs where strikes cannot be tolerated)
•
Final offer arbitration – method of resolving collective bargaining deadlocks whereby the arbitrator has no power to compromise but must select one or another of the final offers submitted to the two parties Government an also enact a back-to-work legislation
•
The Bargaining Process
• •
Collective bargaining process – process of negotiating a collective agreement, including the use of economic pressures by both parties Includes the use of economic pressures in the form of strikes and boycotts by a union
Preparing for Negotiations • Assembling data to support bargaining proposals and forming the bargaining team • Negotiators develop a bargaining book hat serves as a cross-reference file to determine which contract clauses would be affected by a demand • Preparation starts soon after the current agreement has been signed
Gathering Bargaining Data • Employers gather data in the areas of wage and benefits • “taking wages out of competition” – refers to having similar contract provisions, particularly concerning wages and benefits, between different companies in order to prevent one employer from having a favourable labour cost advantage over another • Allows unions to show their members they are receiving wages and benefits comparable to those of other employees doing like-work Bargaining Teams • Each side has about 4-6 reps at the table • Chief negotiator for management is the vice-pres or manager for labour relations • Chief negotiator for union is the local union pres or national union rep • Others that make up the team include reps from accounting./finance/operations/employment/legal/training • Initial meeting is important because it establishes the climate that will prevail during the negotiations that follow • Attitudinal structuring – done to change the attitudes of the parties toward each other Developing Bargaining Strategies and Tactics • Both parties approach bargaining with a defined strategy • Employers strategy might be cost containment or specific reductions in wages and benefits • Employers bargaining strategy must address these points: o Likely union proposals and management responses to them o A listing of management demands, limits of concessions and anticipated union responses o Development of a database to support management bargaining proposals and to counteract union demands o A contingency operating plan should employees strike
Negotiating the Collective Agreement • Bargaining zone – area within which the union and the employer are willing to concede when bargaining • Typically each side focuses on one issue or several related until agreement is reached • If the party refuses to modify its demands to bring them within the bargaining zone or if the opposing party refuses to extend its limit to accommodate the demands of the other party, a bargaining deadlock results • An employer is obligated to negotiate in good faith with the unions representatives over conditions of employment • Good faith requires meetings to be held at reasonable times and places to discuss employment conditions, proposals submitted by each party are realistic • Both parties must sign the written document containing the agreement reached through negotiations Interest-Based Bargaining
• • • •
Interest-based bargaining (IBB) – problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship Focus is to discover mutual bargaining interests with the intent of formulating options and solutions for mutual gain Participants use brainstorming, consensus, decision making, active listening, process checking and matrix building to facilitate the settlement of issues Underlying goal: create a relationship for the future based on trust, understanding and mutual respect
Management and Union Power in Collective Bargaining
•
Bargaining power – the power of labour and management to achieve their goals through economic, social or political influence
Union Bargaining Power • Exercised by striking, picketing or boycotting the employers products or services • Strike vote is a vote of confidence to strength the position of their leaders at the bargaining tables, it doesn’t mean they actually want or expect go on strike • Of critical importance to the union is the extent to which the employer will be able to continue operating through the use of supervisory and nonstriking personnel hired to replace the strikers Management Bargaining Power • When negotiations become deadlocked, the employers bargaining power rests largely on being able to continue operations in the face of a strike or to shut down operations entirely • A prevalent bargaining strategy is for the employer to continue operations by using managers and supervisors to staff employee jobs • Lockout – bargaining strategy by which the employer denies employees the opportunity to work by closing its operation o Happens in extreme situations, the employer ELECTS to lock outs it employees Resolving Bargaining Deadlocks • Unions and employers have used mediation and arbitration to help resolve their bargaining deadlocks • Unlike a mediatory, an arbitrator assumes the role of a decision maker and determines when the settlement between the two parties should be
• • • •
Arbitrator - third-party neutral who resolving labour dispute by issuing a final decision in the disagreement Write a final contract that the parties must accept Not often used to settle private-sector bargaining disputes In the public sector, where strikes are largely prohibited, the use of interest arbitration is a common method to resolve bargaining deadlocks
The Collective Agreement
•
When negotiations are concluded, the collective agreement becomes a formal binding document listing the terms, conditions, and rules under which employees and managers agree to operate
The Issue of Management Rights • The collective agreement contains a management rights clause – states that managements authority is supreme in all matters except those it has expressively conceded in the collective agreement, or in those areas where its authority is restricted by law Union Security Agreements • Union officials will seek to negotiate some form of compulsory membership as a condition of employment • Standard union security provision is dues check off, which gives the employer responsibility of withholding union dues from the paycheques of union members who agree to such a deduction • “shop” agreements – other forms of union security found in collective agreements o Attempt to require employees to join the union o Agency shop – provides for voluntary membership Administration of the Collective Agreement Negotiated Grievance Procedures
• • • •
Grievance procedure – formal procedure that provides for the union to represent members and nonmembers in processing a grievance Heart of the bargaining agreement/safety valve that gives flexibility to the whole system of bargaining Initiated by the union or an individual employee when it feels management has violated some article of the collective agreement Benefit: provides a formal and orderly procedure for the union to challenge the actions of management without resort to force
The Grievance Procedure in Action • In order for employees grievance to be formally considered, it must be expressed orally and/or in writing, ideally to the employees immediate supervisor • Whether its possible to resolve a grievance at the initial step will depend on the supervisors ability and willingness to discuss the problem with the employee and steward Rights Arbitration
• •
Rights arbitration – arbitration over interpretation of the meaning of contract terms or employee work grievances The third party’s decision dictates how the grievance is to be settled – both parties are obligated to comply with the decision
The Decision to Arbitrate
Each party must weigh the costs involved against the importance of the case and the prospects of gaining a favourable award • Union officers aren't likely to refuse to take arbitration the grievances of members who are popular of powerful in the union • Unions have a legal obligation to provide assistance to members who are pursuing grievances • Management may allow a weak case to go to arbitration to demonstrate to the union officers the management “cannot be pushed around” The Arbitration Process • Begins with swearing-in of witnesses and the introduction of a formal statement known as the submission to arbitrate •
• • • • • •
Submission to arbitrate – statement that describes the issues to be resolved through arbitration Parties make opening statements, followed by presentation of facts/evidence and the oral representation of witnesses Hearing concludes with each side making summary statements that are arguments in support of their positions It’s the responsibility of the arbitrator to ensure that each side receives a fair hearing during which it may present all their facts Primary purpose is to help the arbitrator in obtaining factors then they have a right to question witnesses or request additional facts from either party After the hearing and post-hearing briefs (if applicable), the arbitrator has 30 days to consider the evidence and render an award
The Arbitration Award • Arbitration award – final and binding award issued by an arbitrator in a labourmanagement dispute • Contains 5 parts o the submission to arbitrate o the facts of the case o the positions of the parties o the opinion of the arbitrator o the decision rendered • the reasoning behind decision is important because it provides guidance concerning the interpretation o f the collective agreement • the process by which arbitrators make decisions and the factors that influence those decisions are of continuing interest to managers • arbitrators use 4 factors when deciding cases: o wording of collective agreement o submission agreement as presented to the arbitrator o testimony and evidence offered during the hearing o arbitration criteria or standards against which cases are judged • arbitrators are essentially constrained to decide cases on the basis of the wording of the collective agreement
•
Labour Relations Process – logical sequence of 4 events o workers desire collective representation o union begins organizing campaign o collective negotiations lead to a contract o the contract is administered
Why Employees Unionize
• • •
•
majority of research comes from the study of blue-collar employees in private sector these studies conclude that employees unionize as a result of economic need, general dissatisfaction w/ managerial practices and/or as a way to fulfill social and status needs employees see unionisms as a way to achieve results they cant achieve individually Union shop – condition of the collective agreement that requires employees to join the union as a condition of their employment
Economic Needs • Dissatisfaction with wages, benefits and working conditions appears to provide the strongest reason to join a union Dissatisfaction with Management • Employees may seek unionizations when they perceive that managerial practices regarding promotion, transfer, shift assignment, or other job-related policies are administered in an unfair manner
•
Failure of employers to give employees an opportunity to participate in decisions affecting their welfare may encourage union membership
Social and Leadership Concerns • Employees whose needs for recognition and social affiliation are being frustrated may join unions as a means of satisfying these needs • In an union, people can fraternize with other employees who have similar desires, interests, problems • Employees may join unions for the same reason one would join a club to enjoy the companionship of others Organizing Campaigns
•
Most organizing campaigns are begun by employees rather than union organizers
Organizing Steps 1. Employee/union contact • To win support, labour organizing must build a case against the employer and for the union 2. initial organizational meeting • attract more supporters • uses info in step 1 to address employee needs and explain how the union can secure these goals • organizational meetings identify employees who can help the organizer direct the campaign • organizational meetings establish communication chains that reach all employees 3. formation of in-house organizing committee • composed of employees willing to provide leadership to the campaign • Authorization card - a statement signed by an employee authorizing a union to act as their representative for the purposes of collective bargaining • Number of signed authorization cards demonstrates the strength of the union 4. application to labour relations board 5. issuance of certificate by labour relations board • LBR reviews application and informs employer and employees about it, giving them an opportunity to challenge 6. election of bargaining committee and contract negotiations • once LRB determines the union is certified the bargaining committee is put it place to start negotiating a collective agreement Employer Tactics • employers must not interfere with the labour relations process of certification • prohibited from dismissing, disciplining or threatening employees for exercising their right to form a union • must bargain in good faith and demonstrate a commitment to bargain fairly and seriously Union Tactics
• • •
•
Prohibited from interfering with the formation of an employers organization Bargaining unit – a group of two or more employees who share common employment interests and condition and may reasonably be grouped together for purposes of collective bargaining Cant engage in activities (i.e. strikes) before the expiration of the union contract Unfair labour practices – specific employer and union illegal practices that operate to deny employees their rights and benefits under deferral and provincial labour law
How Employees Become Unionized • Unions present documentation to the appropriate labour relations board for certification • LRB must certify a union before it can act as a bargaining unit for a group of employees
• •
To acquire certification the union must demonstrate that its obtained the minimum level of membership support required by the labour relations board Union submits evidence – authorization cards and proof that initiation dues have been paid
Voluntary Recognition • All employers may voluntarily recognize/accept a union rarely happens except in construction industry Regular Certification • Begins with union submitting the required evidence of minimum membership to the LRB Presharing Votes • If there’s evidence of irregularities (unfair labour practices) a prehearing vote may be taken • Purpose: establish the level of support among workers Contract Negotiation
•
Once a union has been certified by LRB, employer and union are legally obligated to bargain in good faith over teams and conditions of a collective agreement
Decertification • If majority of employees indicate they don’t want to be represented by the union anymore or they want to be represented by another or the union has failed to bargain, an application for decertification can be made to the LRB Impact of Unionized on Managers • Why would employers oppose the unionization of their employees? o Wages and benefits are higher in unions o Unions have a significant effect on the rights exercised by management in making decisions about employees o Unionization restricts the freedom of management to formulate Hr policy unilaterally and can challenge authority of supervisors
Challenges to Management Decisions • Management rights – decisions regarding organizational operations over which management claims exclusive rights Loss of Supervisory Authority • When disciplining employees, supervisors must be certain they can demonstrate just cause for their actions, because these actions can be challenged by the union and the supervisor called as defendant during a grievance hearing • If challenge is supported, supervisors effectiveness in coping with later disciplinary problems may be impaired • Specific contract language also reduces the supervisors ability to manage in areas such as scheduling, training, transfers, performance evaluation and promotion Structures, Functions, and Leadership of Labour Unions
• •
Craft unions – unions that represent skilled craft workers
•
Employee associations – labour organizations that represent various groups of professional and white-collar employees in labour-management relations Researchers describing labour organizations divide them into 3 levels o Central labour congresses o International and national unions o Local unions belonging to a parent national or international union
•
Industrial unions-
unions that represent all workers – skilled, semi-skilled, unskilled employed along industry lines
The Canadian Labour Congress • CLC • Federation of unions • Most influential labour federation in Canada • Attempts to influence legislation and promote programs that are of interest to labour • Does the above by lobbying, resolving jurisdictional disputes, maintaining ethical standards and providing education and training to its members International and National Unions • International unions tend to be affiliates of American unions • International and national unions are made up of local unions • Objective of these “umbrella” unions o Help organize local unions o Provide strike support o Assist local unions with negotiations o Grievance procedures
•
In Canada, most of the decision-making authority in national unions is vested in the local unions or at bargaining unit level bottom-up unionism
•
International unions (craft unions) are more likely to retain a greater degree of control over the affairs of local unions top-down unionism
Local Unions
• • •
Employees of any org can form their own union, with no affiliation to a national or international union In this situation, local is the union Unionized employees pay union dues that finance the operation of the local union
•
Local unions make their own decisions but turn to national union for collective bargaining help, research and assistance
•
Officers of a local union are responsible for negotiating the local collective agreement for ensuring the agreement is adhered to, and for investigating and processing member grievances
Role of the Union (Shop) Steward • Union steward – employee who as a nonpaid union official represents the interests of members in their relations with management • Stewards are elected by union members and serve without union pay – they are full time employees and spend lots of time after working hours investigating and handling members problems • Viewed as a person in the middle cause between conflicting interests and groups • Insight people working for the betterment of employees and the organization Role of the Business Agent • Business agent – normally a paid labour official responsible for negotiating and administering the collective agreement and working to resolve union members problems • Required to assume the role of counselor in helping union members with both personal and job-related problems • Expected to resolve grievances that cant be settled by the union stewards • Administer the daily affairs of the local union Union Leadership Commitment and Philosophies
•
Union members possess enthusiasm and a commitment to the ideals of unionism and employee welfare that’s difficult for managers to understand and accept
•
Union leader who ignores the demands of union members may risk being voted out of office To be effective leaders, union officials must pay constant attention to the philosophy and general goals of the labour movement Goals usually include increased pay and benefits, job security and improved working conditions
• •
Labour Relations in the Public Sector • The three largest unions in Canada represent public-sector employees • The Canadian Union of Public Employees (CUPE) is the largest union in Canada
• • •
The National Union of Public and General Employees (NUPGE) is the second largest Public Service Alliance of Canada (PSAC) is the largest union representing employees at the federal level Two differences between public-sector collective bargaining and private-sector bargaining o Political nature of the labour-management relationship o Public-sector strikes
Political Nature of the Labour-Management Relationship
• • •
•
Government employees aren't able to negotiate with their employers on the same basis as their counterparts in private organizations Labour relations in the private sector has an economic foundation whereas in government its foundation tends to be political A strike in the private sector is a test of the employers economic staying power and the employers customers have alternative sources of supply – while Governments must stay in business because alternative services are usually not available In a private organization, authority flows downward from the board of directors and from the shareholders – authority in the public sector flows upward from the public at large to their elected reps and to the appointed managers
Strikes in the Public Sector • Strikes by government employees create a problem for lawmakers and the general public
• • •
Various provincial legislatures have given public employees the right to strike Public-sector unions challenge that denying them the same right to strike as employees in the private sector greatly reduces their power during collective bargaining To avoid critical situations, various settlement methods are used for resolving collective bargaining deadlocks
•
Compulsory binding arbitration – binding method of resolving collective bargaining deadlocks by a neutral third party (police offers, firefighters and other jobs where strikes cannot be tolerated)
•
Final offer arbitration – method of resolving collective bargaining deadlocks whereby the arbitrator has no power to compromise but must select one or another of the final offers submitted to the two parties Government an also enact a back-to-work legislation
•
The Bargaining Process
• •
Collective bargaining process – process of negotiating a collective agreement, including the use of economic pressures by both parties Includes the use of economic pressures in the form of strikes and boycotts by a union
Preparing for Negotiations • Assembling data to support bargaining proposals and forming the bargaining team • Negotiators develop a bargaining book hat serves as a cross-reference file to determine which contract clauses would be affected by a demand • Preparation starts soon after the current agreement has been signed
Gathering Bargaining Data • Employers gather data in the areas of wage and benefits • “taking wages out of competition” – refers to having similar contract provisions, particularly concerning wages and benefits, between different companies in order to prevent one employer from having a favourable labour cost advantage over another • Allows unions to show their members they are receiving wages and benefits comparable to those of other employees doing like-work Bargaining Teams • Each side has about 4-6 reps at the table • Chief negotiator for management is the vice-pres or manager for labour relations • Chief negotiator for union is the local union pres or national union rep • Others that make up the team include reps from accounting./finance/operations/employment/legal/training • Initial meeting is important because it establishes the climate that will prevail during the negotiations that follow • Attitudinal structuring – done to change the attitudes of the parties toward each other Developing Bargaining Strategies and Tactics • Both parties approach bargaining with a defined strategy • Employers strategy might be cost containment or specific reductions in wages and benefits • Employers bargaining strategy must address these points: o Likely union proposals and management responses to them o A listing of management demands, limits of concessions and anticipated union responses o Development of a database to support management bargaining proposals and to counteract union demands o A contingency operating plan should employees strike
Negotiating the Collective Agreement • Bargaining zone – area within which the union and the employer are willing to concede when bargaining • Typically each side focuses on one issue or several related until agreement is reached • If the party refuses to modify its demands to bring them within the bargaining zone or if the opposing party refuses to extend its limit to accommodate the demands of the other party, a bargaining deadlock results • An employer is obligated to negotiate in good faith with the unions representatives over conditions of employment • Good faith requires meetings to be held at reasonable times and places to discuss employment conditions, proposals submitted by each party are realistic • Both parties must sign the written document containing the agreement reached through negotiations Interest-Based Bargaining
• • • •
Interest-based bargaining (IBB) – problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship Focus is to discover mutual bargaining interests with the intent of formulating options and solutions for mutual gain Participants use brainstorming, consensus, decision making, active listening, process checking and matrix building to facilitate the settlement of issues Underlying goal: create a relationship for the future based on trust, understanding and mutual respect
Management and Union Power in Collective Bargaining
•
Bargaining power – the power of labour and management to achieve their goals through economic, social or political influence
Union Bargaining Power • Exercised by striking, picketing or boycotting the employers products or services • Strike vote is a vote of confidence to strength the position of their leaders at the bargaining tables, it doesn’t mean they actually want or expect go on strike • Of critical importance to the union is the extent to which the employer will be able to continue operating through the use of supervisory and nonstriking personnel hired to replace the strikers Management Bargaining Power • When negotiations become deadlocked, the employers bargaining power rests largely on being able to continue operations in the face of a strike or to shut down operations entirely • A prevalent bargaining strategy is for the employer to continue operations by using managers and supervisors to staff employee jobs • Lockout – bargaining strategy by which the employer denies employees the opportunity to work by closing its operation o Happens in extreme situations, the employer ELECTS to lock outs it employees Resolving Bargaining Deadlocks • Unions and employers have used mediation and arbitration to help resolve their bargaining deadlocks • Unlike a mediatory, an arbitrator assumes the role of a decision maker and determines when the settlement between the two parties should be
• • • •
Arbitrator - third-party neutral who resolving labour dispute by issuing a final decision in the disagreement Write a final contract that the parties must accept Not often used to settle private-sector bargaining disputes In the public sector, where strikes are largely prohibited, the use of interest arbitration is a common method to resolve bargaining deadlocks
The Collective Agreement
•
When negotiations are concluded, the collective agreement becomes a formal binding document listing the terms, conditions, and rules under which employees and managers agree to operate
The Issue of Management Rights • The collective agreement contains a management rights clause – states that managements authority is supreme in all matters except those it has expressively conceded in the collective agreement, or in those areas where its authority is restricted by law Union Security Agreements • Union officials will seek to negotiate some form of compulsory membership as a condition of employment • Standard union security provision is dues check off, which gives the employer responsibility of withholding union dues from the paycheques of union members who agree to such a deduction • “shop” agreements – other forms of union security found in collective agreements o Attempt to require employees to join the union o Agency shop – provides for voluntary membership Administration of the Collective Agreement Negotiated Grievance Procedures
• • • •
Grievance procedure – formal procedure that provides for the union to represent members and nonmembers in processing a grievance Heart of the bargaining agreement/safety valve that gives flexibility to the whole system of bargaining Initiated by the union or an individual employee when it feels management has violated some article of the collective agreement Benefit: provides a formal and orderly procedure for the union to challenge the actions of management without resort to force
The Grievance Procedure in Action • In order for employees grievance to be formally considered, it must be expressed orally and/or in writing, ideally to the employees immediate supervisor • Whether its possible to resolve a grievance at the initial step will depend on the supervisors ability and willingness to discuss the problem with the employee and steward Rights Arbitration
• •
Rights arbitration – arbitration over interpretation of the meaning of contract terms or employee work grievances The third party’s decision dictates how the grievance is to be settled – both parties are obligated to comply with the decision
The Decision to Arbitrate
Each party must weigh the costs involved against the importance of the case and the prospects of gaining a favourable award • Union officers aren't likely to refuse to take arbitration the grievances of members who are popular of powerful in the union • Unions have a legal obligation to provide assistance to members who are pursuing grievances • Management may allow a weak case to go to arbitration to demonstrate to the union officers the management “cannot be pushed around” The Arbitration Process • Begins with swearing-in of witnesses and the introduction of a formal statement known as the submission to arbitrate •
• • • • • •
Submission to arbitrate – statement that describes the issues to be resolved through arbitration Parties make opening statements, followed by presentation of facts/evidence and the oral representation of witnesses Hearing concludes with each side making summary statements that are arguments in support of their positions It’s the responsibility of the arbitrator to ensure that each side receives a fair hearing during which it may present all their facts Primary purpose is to help the arbitrator in obtaining factors then they have a right to question witnesses or request additional facts from either party After the hearing and post-hearing briefs (if applicable), the arbitrator has 30 days to consider the evidence and render an award
The Arbitration Award • Arbitration award – final and binding award issued by an arbitrator in a labourmanagement dispute • Contains 5 parts o the submission to arbitrate o the facts of the case o the positions of the parties o the opinion of the arbitrator o the decision rendered • the reasoning behind decision is important because it provides guidance concerning the interpretation o f the collective agreement • the process by which arbitrators make decisions and the factors that influence those decisions are of continuing interest to managers • arbitrators use 4 factors when deciding cases: o wording of collective agreement o submission agreement as presented to the arbitrator o testimony and evidence offered during the hearing o arbitration criteria or standards against which cases are judged • arbitrators are essentially constrained to decide cases on the basis of the wording of the collective agreement
