Chapter 14: The Dynamics of Labour Relations
Chapter 14: The Dynamics of Labour Relations Process of collective bargaining negotiations union local will normally meet with its membership and decide on demands for changes to the collective agreement management will review the demands and try to reconcile them with the financial situation of the organization; will then come up with its own demands and counteroffers two sides will meet, perhaps over a few weeks or months, and conduct tough bargaining, usually in good faith and respectfully both sides will most likely make concessions on their original positions and sign a collective bargaining agreement to cover the workplace, usually over the next 2 to 4 years Unions - workers’ associations formed to enhance their power in dealing with employers and improve their pay and working conditions - have been an important force shaping organizational practices, legislation, and political thought in Canada - remain of interest because of their influence on organizational productivity and HR policies and practices - about 30 percent of all employees in Canada are unionized, with rates higher in the public sector (71 percent) than in the private sector (16 percent - can affect significantly the ability of managers to direct and control the various functions of HRM - essential that managers in both the union and the nonunion environment understand how unions operate and be thoroughly familiar with the important body of law governing labour relations
Government Regulation of Labour Relations Labour relations in Canada - regulated by a multiplicity of federal and provincial laws - specific laws, or acts, for different sectors, industries, and workers - system is highly decentralized - 90 percent of workers are governed by provincial legislation
The Industrial Relations Disputes and Investigation Act (1948) -
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specified the right of workers to join unions, allowed unions to be certified as bargaining agents by a labour relations board, required management to recognize a certified union as the exclusive bargaining agent for a group of employees, required both unions and management to negotiate in good faith, outlined unfair labour practices by both unions and management, and created a two-stage compulsory conciliation process that was mandatory before strikes or lockouts became legal became Canada Labour Code
Canada Industrial Relations Board (CIRB) - established to administer and enforce the Canada Labour Code labour relations board - each province - administers labour law and provincial labour law statutes, such as the Ontario Labour Relations Act (The exception is Quebec, which has a labour court and commissioners.) - members are generally government appointees - generally autonomous from the federal government and have representatives from both labour and management The duties of the labour relations board include: Administering the statutory procedures for the acquisition, transfer, and termination of bargaining rights Hearing complaints related to unfair labour practices Supervising strikes and lockout votes Determining whether bargaining was done in good faith Remedying violations of labour legislation
Test Your Labour Relations Know-How 1. During a labour organizing drive, supervisors questioned individual employees about their union beliefs. Was this questioning permissible? o no. Individual questioning of employees about their union membership or activities is unlawful. 2. While an organizing drive was underway, an employer agreed—as a social gesture—to furnish refreshments at a holiday party. Was the employer acting within the law? o yes. However, this must be part of normal conduct and cannot be interpreted as a gesture to buy votes. 3. A company distributed to other anti-union employers in the area a list of job applicants known to be union supporters. Was the distribution unlawful? o yes. Blacklisting of job applications or employees is against labour law. 4. During a union organizing drive, the owner of Servo Pipe promised her employees a wage increase if they would vote against the union. Can the owner legally make this promise to her employees? o no. During an organizing drive, an employer cannot promise improvements in wages or benefits as a means of defeating the union. 5. John Green, a maintenance engineer, has a poor work record. Management wishes to terminate his employment; however, Green is a union steward and is highly critical of the company. Can management legally discharge this employee? o yes. Employees can be disciplined or discharged for work-related misconduct but not solely because of their union affiliations or union sentiments.
The Labour Relations Process 1. 2. 3. 4.
workers desire collective representation the union begins its organizing campaign and, if successful, is certified and recognized collective negotiations lead to a contract the contract is administered
Laws and administrative rulings influence each event by granting special privileges to, or imposing defined constraints on, workers, managers, and union officials.
Why Employees Unionize
economic needs general dissatisfaction with managerial practices social and leadership concerns union-shop provisions o requires employees to join as a condition of employment
Economic Needs - dissatisfaction with wages, benefits, and working conditions appear to provide the strongest reason to join a union - unions are built on traditional issues of wages, benefits, and working conditions
Dissatisfaction with Management - employees may seek unionization when they perceive that managerial practices regarding promotion, transfer, shift assignment, or other job-related policies are administered in an unfair or biased manner - favouritism shown by managers a major reason for joining unions o particularly true when the favouritism concerns the HR areas of discipline, promotion, job assignments, and training opportunities - failure of employers to give employees an opportunity to participate in decisions affecting their welfare may encourage union membership o one reason managers begin employee involvement programs and seek to empower their employees is to avoid collective action by employees Social and Leadership Concerns - employees may join unions as a means of satisfying needs for recognition and social affiliation - they have an opportunity to fraternize with other employees who have similar desires, interests, problems, and gripes through their union - to enjoy the companionship of others and to benefit in the prestige and value that organization may provide - union also enables them to put leadership talents to use as officers of the union and representatives of fellow employees - employees became union stewards so that they could be seen as ―a fellow your buddies look to‖ and as a person who ―stands up to the boss‖
Organizing Campaigns -
once employees desire to unionize, a formal organizing campaign may be started either by a union organizer or by employees acting on their own behalf most organizing campaigns are initiated by employees rather than by union organizers large national unions have formal organizing departments whose purpose is to identify organizing opportunities and launch organizing campaigns
Organizing Steps 1. Employee/union contact 2. Initial organizational meeting 3. Formation of an in-house organizing committee 4. Application to a labour relations board 5. Issuance of a certificate by a labour relations board 6. Election of a bargaining committee and contract negotiations Step 1: Employee/union contact - explore the possibility of unionization - employees investigate the advantages of representation, and union officials begin to gather information on employee needs, problems, and grievances - union organizers also seek specific information about the employer's financial health, supervisory styles, and organizational policies and practices - to win employee support, labour organizers must build a case against the employer and for the union - most organizing drives take place inside the company Step 2: Initial organizational meeting - attract more supporters - organizer uses the information gathered in Step 1 to address employee needs and explain how the union can secure these goals - two additional purposes of organizational meetings are o to identify employees who can help the organizer direct the campaign o to establish communication chains that reach all employees Step 3: Formation of an in-house organizing committee - composed of employees willing to provide leadership to the campaign - committee's role is to interest other employees in joining the union and in supporting its campaign - an important task of the committee is to have employees sign an authorization card indicating their willingness to be represented by a union in collective bargaining with their employer o union membership cards are confidential once signed, & only labour relations board has access to them o number of signed authorization cards demonstrates the potential strength of the labour union o legislation across Canada requires a union to collect authorization cards as a first step in union certification process
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two different processes for union certification used in Canada card-check a union is certified to represent the workers if the union submits to the labour board authorization cards on behalf of a majority of workers (such as 55 percent) in an appropriate bargaining unit mandatory ballot union must obtain authorization cards on behalf of a certain number of workers (in Ontario, it is 40 percent or more) to obtain a vote labour board orders a vote of employees in the bargaining unit, which the union must win (those who do not vote are not assumed to be voting against certification of the union)
Step 4: Application to a labour relations board - submits to the labour board its authorization cards, but the employer does not get to see them - labour board then applies the model, either certifying the union on the basis of a card-check, ordering a vote in provinces that use a mandatory ballot model, or dismissing the application if the union does not submit the required number of authorization cards Step 5: Issuance of a certificate by a labour relations board - if the union is successful, the board will ―certify‖ the union - if the union fails to meet the required test, the board will dismiss the application Step 6: Election of a bargaining committee and contract negotiations - bargaining committee is put in place to start negotiating a collective agreement - if the union is a national union, usually a national representative works with the bargaining committee to negotiate a collective agreement with the company - labour relations legislation imposes a duty on employers and unions to bargain in good faith and make reasonable efforts to complete a collective agreement Employer Tactics - employers must not interfere with the labour relations process of certification - prohibited by law from dismissing, disciplining, or threatening employees for exercising their right to form a union - cannot promise better conditions, such as increased vacation days, if the employees vote for no union or choose one union over another - cannot threaten to close the business - cannot unilaterally change wages and working conditions during certification proceedings or during collective bargaining - must bargain in good faith, meaning that they must demonstrate a commitment to bargain seriously and fairly - cannot participate in the formation, selection, or support of unions representing employees - can make the case that the employees have the right not to join a union and that they can deal directly with the employer on any issue - employer resistance to unionization is the norm in Canada, and opposition has been found to decrease the probability of successfully organizing - employers’ attempts to influence employees are scrutinized closely by officials of the organizing union and by the labour relations board Employer ―Don'ts‖ During Union Organizing Campaigns Attending union meetings, spying on employee–union gatherings, and questioning employees about the content of union meetings Questioning current employees about their union sentiments—especially about how they might vote in a union election Threatening or terminating employees for their union support or beliefs Changing the working conditions of employees because they actively work for the union or simply support its ideals Supplying the names, addresses, and phone numbers of employees to union representatives or other employees sympathetic to or opposed to the union Promising employees improvements in working conditions if they vote against the union Accepting or reviewing union authorization cards or pro-union petitions because employees’ names are listed on these documents Providing financial or any other support to employees opposed to unionization
Union Tactics - prohibited from interfering with the formation of an employer's organization - cannot intimidate or coerce employees to become or remain members of a union - cannot force employers to dismiss, discipline, or discriminate against nonunion employees - must provide fair representation for all employees in the bargaining unit , whether in collective bargaining or in grievance procedure cases - cannot engage in activities such as strikes before the expiration of the union contract. unfair labour practices (ULPs) - any of the prohibited activities noted above for both employers and unions - charges of ULPs are filed with the labour relations board, whose duty it is to enforce labour relations legislation Unfair Labour Practices Unfair labour practices by employers include Helping to establish or administer a union Altering the working conditions of the employees while a union is applying for certification without the union's consent Using intimidation, coercion, threats, promises, or exercising undue influence while a union is being organized Failing to recognize or bargain with the certified union Hiring professional strike breakers Unfair labour practices by unions include Contributing financial or other support to an employer's organization Not representing fairly the employees in the bargaining unit Bargaining or negotiating a collective agreement with an employer while another union represents the employees in the bargaining unit Calling or authorizing an unlawful strike or threatening to do so Threatening or intimidating workers to influence their support for the union
How Employees Become Unionized -
labour relations board must certify a union before it can act as a bargaining unit for a group of employees to acquire certification: o union must demonstrate that it has obtained the minimum level of membership support required by the labour relations board o obtain the right to represent workers through voluntary recognition, a process in which the employer simply agrees to recognize the union as the representative of the employees
Voluntary Recognition - all employers, except those in Quebec, may voluntarily recognize and accept a union - rarely happens, except in the construction industry, where there is a great reliance on union hiring halls
Contract Negotiation -
once a bargaining unit has been certified by the labour relations board, the employer and the union are legally obligated to bargain in good faith over the terms and conditions of a collective agreement terms of a collective agreement apply for a minimum of one year and a maximum of three years, although there is no legally mandated maximum as the contract expiry date approaches, either party must notify the other of its intention to bargain for a renewal collective agreement or contract negotiation
Decertification -
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application for decertification can be made to the labour relations board if o majority of employees indicate that they do not want to be represented by the union o majority of employees want to be represented by another union o union has failed to bargain if a collective agreement has been reached with the employer, this application can be made only at specified times, such as a few months before the agreement expires employees can initiate an application for decertification if the union fails to bargain
Impact of Unionization on Managers
Why would employers oppose the unionization of their employees? 1. wages and benefits are higher in union organizations compared to similar nonunion organizations 2. unions can have a significant effect on the rights exercised by management in making decisions about employees 3. unionization restricts the freedom of management to formulate HR policy unilaterally and can challenge the authority of supervisors Challenges to Management Decisions - unions typically attempt to achieve greater participation in management decisions that affect their members - decisions may involve such issues as the subcontracting of work, productivity standards, and job content - employers quite naturally seek to claim many of these decisions as their exclusive management rights - union may challenge and erode these prerogatives at the bargaining table, through the grievance procedure, and through strikes Loss of Supervisory Authority - for managers and supervisors, the focal point of the union's impact is at the operating level (the shop floor or office facility), where the terms of the collective agreement are implemented on a daily basis o e.g. terms can determine what corrective action is to be taken in directing and in disciplining employees o 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 a defendant during a grievance hearing - if the challenge is upheld, the supervisor's effectiveness in coping with subsequent disciplinary problems may be impaired - specific contract language can also reduce the supervisor's ability to manage in areas such as scheduling, training, transfers, performance evaluation, and promotions - under provisions of the collective agreement, supervisors may have to promote employees by seniority rather than by individual merit
Structures, Functions, and Leadership of Labour Unions Craft unions - represent skilled craft workers, such as carpenters or masons - International Association of Iron Workers, the United Brotherhood of Carpenters, and the United Association of Plumbers and Pipefitters industrial unions - represent unskilled and semiskilled workers employed along industry lines - Canadian Union of Postal Workers, United Auto Workers, United Steelworkers, and the Office and Professional Employees International Union - technological changes, union mergers, and competition among unions for members have helped reduce it - today, skilled and unskilled workers, white-collar and blue-collar workers, and professional groups are being represented by both types of unions (craft and industrial) employee associations - represent various groups of professional and white-collar employees - Federation of Quebec Nurses, Alberta Teachers Association - may function as unions and become just as aggressive as unions in representing members Three levels of labour organizations 1. central labour congresses 2. international and national unions 3. local unions belonging to a parent national or international union
The Canadian Labour Congress -
central federation of unions in 2011, the total membership of the CLC was over 3.2 million Canadians and represented the majority of all unions in Canada considered the most influential labour federation in Canada mainly a service organization representing over 90 international and national unions that finance the CLC through dues based on membership size attempts to influence legislation and promote programs that are of interest to labour by lobbying, resolving jurisdictional disputes, maintaining ethical standards, providing education and training to its members, conducting research, and representing Canadian interests in the international labour movement
International and National Unions -
international unions tend to be affiliates of American unions, with headquarters in the United States in Canada, there are 39 international unions (with a membership of 1.2 million workers) and 184 national unions (with a membership of 3.1 million) objectives of these ―umbrella‖ unions are to help organize local unions, to provide strike support, and to assist local unions with, among other things, negotiations and grievance procedures represent their members’ interests with internal and external constituents by ensuring that all employers pay similar wages to their unionized workers, they also remove higher wages as a competitive disadvantage in Canada, most of the decision-making authority in national unions is vested in the local unions or at the bargaining-unit level – bottom-up unionism many international unions, especially 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 organization can form their own union, with no affiliation to a national or international union more than 600 independent local unions in Canada most local unions are members of national or international unions or the CLC, which makes financial resources and advice available to them unionized employees pay union dues that finance the operation of the local union tend to make their own decisions but turn to the national union for collective bargaining help, research, and assistance when handling certain types of grievances officers of a local union are usually responsible for negotiating the local collective agreement, ensuring that the agreement is adhered to, and investigating and processing member grievances help prevent their members from being treated by their employers in ways that run counter to managementestablished HR policies keep members informed through meetings and newsletters
Role of the Union (Shop) Steward Union (shop) steward - represents the interests of union members in their relations with immediate supervisors and other members of management - usually elected by the union members in their own department and serve without union pay - often spends considerable time after working hours investigating and handling members’ problems - when representing members during grievance meetings on organizational time, lost earnings are often paid by the local union - can be viewed as a ―person in the middle,‖ caught between conflicting interests and groups - relationship between a manager/supervisor and the union steward can have a major bearing on union– management cooperation and on the efficiency and morale of the workforce Role of the Business Agent - major responsibilities are negotiating and administering the collective agreement and working to resolve problems arising in connection with it - must be all things to all people in their unions - often required to assume the role of counselor in helping union members with both personal and job-related problems - expected to satisfactorily resolve grievances that cannot be settled by union stewards - also administers the daily affairs of the local union
Labour Relations in the Public Sector Collective bargaining among federal, provincial, and municipal government employees and among employees in parapublic agencies (private agencies or branches of government acting as extensions of government programs) has been an area of important activity for the union movement. More than 70 percent of public employees are now unionized. The three largest unions in Canada represent public-sector employees. The Canadian Union of Public Employees (CUPE) is the largest union in Canada, with 548,000 members. The second-largest union, with 340,000 members, is the National Union of Public and General Employees (NUPGE). The largest union representing employees at the federal level is the Public Service Alliance of Canada (PSAC), with 166,000 members. PSAC comprises 17 different unions representing various groups, such as the Professional Institute of the Public Service of Canada (PIPS), the Social Science Employees
Association (SSEA), and air traffic controllers. Growth in these unions is threatened by increased cost-cutting efforts of governments at all levels, resulting in employee reductions. Although public-sector collective bargaining is quite similar to bargaining in the private sector, a number of differences are worth noting. We explore these differences in two contexts: (1) the political nature of the labour–management relationship and (2) public-sector strikes. Political Nature of the Labour-Management Relationship Government employees are not able to negotiate with their employers on the same basis as their counterparts in private organizations. It is doubtful that they will ever be able to do so because of inherent differences between the public and private sectors. One of the significant differences is that labour relations in the private sector have an economic foundation, whereas in government, the foundation tends to be political. Since private employers must stay in business to sell their goods or services, their employees are not likely to make demands that could bankrupt them. A strike in the private sector is a test of the employer's economic staying power, and, usually, the employer's customers have alternative sources of supply. Governments, on the other hand, must stay in business because alternative services are usually not available. Another difference between the public and private sectors relates to the source of management authority. In a private organization, authority flows downward from the board of directors and, ultimately, from the shareholders. In contrast, authority in the public sector flows upward from the public at large to their elected representatives and to the appointed or elected managers. It follows that public employees can exert influence not only as union members but also as pressure groups and voting citizens. Strikes in the Public Sector Strikes by government employees create a problem for lawmakers and for the general public. Because many of the services that government employees provide, such as policing and firefighting, are considered essential to the well-being of the public, public policy is opposed to strikes by these people. However, various provincial legislatures have granted public employees the right to strike. Where striking is permitted, the right is limited to specific groups of employees—those performing nonessential services—and the strike cannot endanger the public's health, safety, or welfare. Public-sector unions contend, however, that denying them the same right to strike as employees in the private sector greatly reduces their power during collective bargaining. Public employees who perform essential services do, in fact, strike. Teachers, sanitation employees, police, transit employees, firefighters, and postal employees have all engaged in strike action. To avoid potentially critical situations, various arbitration methods are used for resolving collective bargaining deadlocks in the public sector. One is compulsory binding arbitration for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated; in this case, a neutral third party is appointed to resolve the deadlock. Another method is final offer arbitration , under which the arbitrator must select one or the other of the final offers submitted by the disputing parties. With this method, the arbitrator's award is more likely to go to the party whose final bargaining offer has moved the closest to a reasonable settlement. The government can also enact back-to-work legislation, an option being used with increasing frequency.
The Bargaining Process -
entails long hours of extensive preparation combined with diplomatic manoeuvring and the development of bargaining strategies may include the use of economic pressures in the form of strikes and boycotts by a union lockouts, plant closures, and the replacement of strikers are similar pressures used by an employer either or both parties may seek support from the general public or from the courts as a means of pressuring the opposing side
Preparing for Negotiations -
assembling data to support bargaining proposals and forming the bargaining team permits collective bargaining to be conducted on an orderly, factual, and positive basis with a greater likelihood of achieving desired goals negotiators often develop a bargaining book that serves as a cross-reference file to determine which contract clauses would be affected by a demand bargaining book also contains a general history of contract terms and their relative importance to management ideally starts soon after the current agreement has been signed o allows negotiators to review and diagnose weaknesses and mistakes made during the previous negotiations while the experience is still current in their minds
Gathering Bargaining Data - employers gather economic data primarily in the areas of wages and benefits - internal data relating to grievances, disciplinary actions, transfers, promotions, overtime, and former arbitration awards are useful in formulating and supporting the employer's bargaining position - supervisors and managers who must live with and administer the collective agreement can be very important sources of ideas and suggestions concerning changes that are needed in the next agreement - contact with union members and representatives provides them with firsthand knowledge of the changes that union negotiators are likely to propose - union bargainers talk about ―taking wages out of competition‖ o refers to having similar contract provisions—particularly concerning wages and benefits—between different companies to prevent one employer from having a favourable labour cost advantage o allows unions to show their members that they are receiving wages and benefits comparable to those of other employees doing similar work - other negotiated collective agreements, particularly at the local and regional levels, play a significant part in settling the terms of the collective agreement. Bargaining Teams - normally, each side has four to six representatives at the negotiating table - initial meeting of the bargaining teams is a particularly important one because it establishes the climate that will prevail during the negotiations that follow - conduct of negotiations largely depends on the relationship and attitude of negotiators toward one another - attitudinal structuring is done to change the attitudes of the parties toward each other, often with the objective of persuading one side to accept the other side's demands
Chief negotiator
Team
Management VP or manager for labour relations hired labour lawyer (most often) representatives from accounting or finance, operations, HR, legal, or training
Union local union president national union representative business agent chief steward, various local union VPs, and a representative from the national union
Developing Bargaining Strategies and Tactics -
in tough economic periods, the employer's strategy might be cost containment or specific reductions in wages or benefits in times of economic growth—when a union strike would harm sales—the employer will be more willing to meet union demands employer's strategy should also consider proposals the union is likely to submit, goals the union is striving to achieve, and the extent to which it may be willing to make concessions or to resort to strike action to achieve these goals
At a minimum, the employer's bargaining strategy must address these points: Likely union proposals and management responses to them A listing of management demands, limits of concessions, and anticipated union responses Development of a database to support management bargaining proposals and to counteract union demands A contingency operating plan should employees strike Certain elements of strategy are common to both the employer and the union initial demands presented by each side are greater than those it may hope to achieve to provide room for concessions
each party usually avoids giving up the maximum it is capable of conceding to allow for further concessions that may be needed to break a bargaining deadlock each party normally tries to avoid disclosing the relative importance that it attaches to a proposal so that it will not be forced to pay a higher price than is necessary to have the proposal accepted
Negotiating the Collective Agreement - each side focuses on one issue or several related issues until agreement is reached - for each bargaining issue to be resolved satisfactorily, the point at which agreement is reached must be within limits that the union and the employer are willing to accept o area within these two limits is the bargaining zone o in some bargaining situations, solution desired by one party may exceed the limits of the other party solution is outside the bargaining zone o if that party refuses to modify its demands sufficiently 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 e.g. when bargaining a wage increase for employees, if the union's lowest limit is a 4 percent increase and management's top limit is 6 percent, an acceptable range—the bargaining zone—is available to both parties. If management's top limit is only 3 percent, however, a bargaining zone is not available to either side, and a deadlock is likely to occur - employer is obligated to negotiate in good faith with the union's representatives over conditions of employment (the same obligation applies to the union representatives) o good faith requires meetings to be held at reasonable times and places to discuss employment conditions o requires that the proposals submitted by each party be realistic - each side could offer reasonable counterproposals for those it is unwilling to accept o counterproposal can be ―no change‖ or ―we don't agree to that‖—there is no requirement to agree to all or part of the other side's proposals - both parties must sign the written document containing the agreement reached through negotiations The Bargaining Zone and Negotiation Influences
Interest-Based Bargaining adversarial bargaining - negotiators start with defined positions and, through deferral, persuasion, trade, or power, the parties work toward the resolution of individual bargaining demands - give-and-take philosophy—the results may or may not be to the complete satisfaction of one or both parties o when one side feels it received ―the short end of the stick,‖ bitter feelings may persist throughout the life of the agreement - does little to establish a long-term positive relationship based on open communications and trust
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by its nature, it leads to suspicion and compromise to overcome negative feelings, labour and management practitioners may use a nonadversarial approach to negotiating uses proposals and counterproposals as a means of reaching agreement
Interest-based bargaining (IBB) - based on the identification and resolution of mutual interests rather than the resolve of specific bargaining demands - ―a problem-solving process conducted in a principled way that creates effective solutions while improving the bargaining relationship‖ - focus is to discover mutual bargaining interests with the intent of formulating options and solutions for mutual gain - novel in both its philosophy and its bargaining process - distinct are the bargaining tools used to expedite a successful nonadversarial negotiating experience - participants use brain-storming, consensus decision making, active listening, process checking, and matrix building to facilitate the settlement of issues - underlying goal is to create a relationship for the future based on trust, understanding, and mutual respect Some Benefits of IBB
Settlement reached Objective of both parties met Grievances—these cost money Employee outcomes—affect long-term success of the organizations
Traditional Approach 125 days over several years No Arbitration Backlog of 3,411 Decreased employee morale, increased absenteeism, grievances, lack of credibility in leadership
Interest-Based Bargaining 25 days over 4 months Yes Mediation before to avoid arbitration to avoid fees Backlog reduced Improved morale, increased credibility of leadership, both management and the association, and a significant reduction in grievances and improvement in attendance
Management and Union Power in Collective Bargaining bargaining power - consists of its economic, political, and social influence to achieve its demands at the expense of the other side Union Bargaining Power - bargaining power of the union may be exercised by striking, picketing, or boycotting the employer's products or services strike -
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refusal of a group of employees to perform their jobs Canada has the second highest rates of days lost to strikes in the world legal requirement that unions hold and win a strike vote as a condition of striking lawfully a strike vote by the members does not mean they actually want or expect to go out on strike o intended as a vote of confidence to strengthen the position of their leaders at the bargaining table of critical importance to the union is the extent, if any, to which the employer will be able to continue operating through the use of supervisory and nonstriking personnel and employees hired to replace the strikers o in some jurisdictions, employers face restrictions to their right to hire replacement workers o violence and strife associated with the use of replacement workers has caused Quebec and British Columbia to forbid their use in organizations with high levels of technology and automation, and consequently fewer employees, continuing service with supervisors and managers is more likely o because of technological change, striking in many industries no longer has the effect of curtailing the employer's operations significantly the greater the ability of the employer to continue operating, the less the union's chances of gaining its demands through a strike when a union goes on strike, it often pickets the employer by placing people at business entrances to advertise the dispute and to discourage others from entering the premises o unions often refuse to cross another union's picket line, the pickets may serve to prevent the delivery and pickup of goods or performance of other services once a strike has been settled, the workers are entitled to return to their jobs, although not necessarily their previous positions right to return to work is often an issue to be negotiated
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employees are often required to submit in writing their intention to return to their jobs once a strike is finalized
boycott - refusal to patronize the employer - e.g. production employees on strike against a hand tool manufacturer might picket a retail store that sells the tools made by the struck employer - unions will also use handbills, radio announcements, email campaigns, and newspaper ads to discourage the purchase of the employer's product or service Management Bargaining Power - when negotiations become deadlocked, the employer's bargaining power largely rests on being able to continue operations in the face of a strike or to shut down operations entirely - another prevalent bargaining strategy is for the employer to continue operations by using managers and supervisors to staff employee jobs - employer may elect to lock out its employees o lockout is a bargaining strategy by which the employer denies employees the opportunity to work by closing its operations o lockouts may be used by employers to combat union slowdowns, damage to their property, or violence within the organization that may occur in connection with a labour dispute - employers may still be reluctant to resort to a lockout, however, because of their concern that denying work to regular employees (employees who are not members of the union who may be locked out; they may or may not be members of another union) might hurt the organization's image
Resolving Bargaining Deadlocks mediation - voluntary process that relies on the communication and persuasive skills of a mediator to help the parties resolve their differences - often used to settle private-sector bargaining disputes - mediator is typically used to break a deadlock and assist the parties in reaching an agreement conciliation - compulsory in all Canadian jurisdictions before a legal strike or lockout - conciliator, appointed by the provincial or federal ministry of labour, attempts to reach a workable agreement interest arbitrator - assumes the role of a decision maker and determines what the settlement between the two parties should be - writes a final contract that the parties must accept interest arbitration - common method to resolve bargaining deadlocks in the public sector, where strikes are often prohibited - arbitrator is generally called on to resolve disputes arising in connection with administration of the agreement, called rights arbitration or grievance arbitration
The Collective Agreement -
becomes a formal binding document listing the terms, conditions, and rules under which employees and managers agree to operate once negotiations are concluded two important items pertain to the issue of management rights and the forms of security afforded the union Items in a Collective Agreement
Typical Clauses Will Cover Wages Management rights Grievance procedures Severance pay Vacations Union security No strike/no lockout clause Seniority Holidays Transfers Overtime Pensions and benefits Work schedules Discipline Safety procedures Outsourcing
Other Clauses Will Cover Employee access to records Limitations on use of performance evaluation Eldercare leave, childcare, work-family balance provisions Flexible medical spending accounts Protection against hazards of technology equipment Limitations against electronic monitoring Bilingual stipends Domestic partnership benefits
The Issue of Management Rights -
management rights have to do with the conditions of employment over which management is able to exercise exclusive control almost without exception, the collective agreement contains a management rights clause states that ―management's authority is supreme in all matters except those it has expressly conceded in the collective agreement, or in those areas where its authority is restricted by law‖ management rights might include the right of management to determine the products to produce, to determine the location of production or service facilities, or to select production equipment and procedures
Union Security Agreements -
union officials will seek to negotiate some form of compulsory membership as a condition of employment union officials argue that compulsory membership precludes the possibility that some employees will receive the benefits of unionization without paying their fair share of the costs a standard union security provision is dues checkoff, which gives the employer the responsibility of withholding union dues from the paycheques of union members who agree to such a deduction other common forms of union security are different types of ―shop‖ agreements o union shop - any employee who is not a union member on employment must join the union within 30 days or be terminated o agency shop - voluntary membership
Administration of the Collective Agreement -
usually the most publicized and critical aspect of labour relations - strike deadlines, press conferences, and employee picketing bulk of labour relations activity comes from the day-today administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage o differences are traditionally resolved through the grievance procedure
Negotiated Grievance Procedures grievance procedure - provides for the union to represent the interests of its members (and nonmembers) in processing a grievance - considered by some authorities to be the heart of the bargaining agreement or the safety valve that gives flexibility to the whole system of collective bargaining - grievance process is normally initiated by the union—or an individual employee—when it feels management has violated some article of the collective agreement o bypass grievance - grievance filed when an employee was promoted out of seniority order - significant benefit is that it provides a formal and orderly procedure for the union to challenge the actions of management without resorting to strikes - fosters cooperation, not conflict, between the employer and the union - operation of a grievance procedure is unique to each collective bargaining relationship, but the procedure is usually required under Canadian labour relations statutes o grievance procedures normally specify how the grievance is to be initiated number and timing of steps that are to compose the procedure identity of representatives from each side who are to be involved in the hearings at each step - when a grievance cannot be resolved at one of the specified steps, most agreements provide for the grievance to be submitted to a third party—usually an arbitrator—whose decision is final - some collective agreements provide for mediation as a way to resolve employee grievances o grievance mediation will be listed as a formal step in the grievance procedure preceding arbitration
Rights Arbitration -
function is to provide the solution to a grievance that a union and an employer have been unable to resolve by themselves arbitration is performed by a neutral third party (an arbitrator or impartial umpire, whose 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 – weak cases do not usually go to arbitration
Reasons for taking a weak case to arbitration
Union Management to demonstrate to its members that the union is willing to demonstrate to union officers that management to exhaust every remedy in looking out for their ―cannot be pushed around‖ interests managers at lower levels may be reluctant to risk the members who filed for grievance are popular or displeasure of top management by stating that a certain politically powerful in the union HR policy is unworkable or unsound members can bring suit against their unions for failing to process their grievances adequately Stubbornness and mutual antagonism - neither party is willing to make concessions to reach an agreement, even when it may recognize that it is in the wrong
The Arbitration Process 1. swearing-in of witnesses 2. parties make opening statements 3. presentation of facts and evidence and the oral presentation of witnesses 4. concludes with each side making summary statements that are arguments in support of its position arbitration hearing - responsibility of the arbitrator to ensure that each side receives a fair hearing during which it may present all of the facts it considers pertinent to the case - primary purpose of the hearing is to assist the arbitrator in obtaining the facts necessary to resolve a human relations problem rather than a legal one - arbitrator has a right to question witnesses or to request additional facts from either party - after conducting the hearing and receiving post-hearing briefs (should the parties choose to submit them), the arbitrator considers the evidence and renders an award - costs of arbitration are usually shared equally by the parties The Arbitration Award - formal written document given to both sides - no specific format as in grievance procedures Typically, the award contains five parts: 1. submission to arbitrate 2. facts of the case 3. positions of the parties 4. opinion of the arbitrator o can provide guidance concerning the interpretation of the collective agreement and the resolution of future disputes arising from its administration 5. decision rendered o major importance to the parties
Small Business Application -
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labour relations boards have the power to certify unions without a membership vote if the labour relations board has concerns that the employees’ right to union representation has somehow been impeded provide employees with competitive wages and treat employees fairly and with respect, to have little or no risk of becoming unionized probability of a union forming is small since the cost to the union to certify, bargain, and represent workers would likely be greater than the collected union dues from a small membership employers should take action to understand and address any discontent in the workplace if employer hears of unionization attempts, he or she would be well advised to consult with an HR or labour relations consultant, or labour relations lawyer, to get assistance in establishing an appropriate course of action, as well as review the sections on unfair labour practices if unionized, follow same process as large companies o bargain with the union and negotiate a collective agreement that outlines the employment terms and conditions for a period of time o collect and submit union dues to the union representing employees o follow the legislative requirements set for represented employees, including grievance management and arbitration
Government Regulation of Labour Relations Labour relations in Canada - regulated by a multiplicity of federal and provincial laws - specific laws, or acts, for different sectors, industries, and workers - system is highly decentralized - 90 percent of workers are governed by provincial legislation
The Industrial Relations Disputes and Investigation Act (1948) -
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specified the right of workers to join unions, allowed unions to be certified as bargaining agents by a labour relations board, required management to recognize a certified union as the exclusive bargaining agent for a group of employees, required both unions and management to negotiate in good faith, outlined unfair labour practices by both unions and management, and created a two-stage compulsory conciliation process that was mandatory before strikes or lockouts became legal became Canada Labour Code
Canada Industrial Relations Board (CIRB) - established to administer and enforce the Canada Labour Code labour relations board - each province - administers labour law and provincial labour law statutes, such as the Ontario Labour Relations Act (The exception is Quebec, which has a labour court and commissioners.) - members are generally government appointees - generally autonomous from the federal government and have representatives from both labour and management The duties of the labour relations board include: Administering the statutory procedures for the acquisition, transfer, and termination of bargaining rights Hearing complaints related to unfair labour practices Supervising strikes and lockout votes Determining whether bargaining was done in good faith Remedying violations of labour legislation
Test Your Labour Relations Know-How 1. During a labour organizing drive, supervisors questioned individual employees about their union beliefs. Was this questioning permissible? o no. Individual questioning of employees about their union membership or activities is unlawful. 2. While an organizing drive was underway, an employer agreed—as a social gesture—to furnish refreshments at a holiday party. Was the employer acting within the law? o yes. However, this must be part of normal conduct and cannot be interpreted as a gesture to buy votes. 3. A company distributed to other anti-union employers in the area a list of job applicants known to be union supporters. Was the distribution unlawful? o yes. Blacklisting of job applications or employees is against labour law. 4. During a union organizing drive, the owner of Servo Pipe promised her employees a wage increase if they would vote against the union. Can the owner legally make this promise to her employees? o no. During an organizing drive, an employer cannot promise improvements in wages or benefits as a means of defeating the union. 5. John Green, a maintenance engineer, has a poor work record. Management wishes to terminate his employment; however, Green is a union steward and is highly critical of the company. Can management legally discharge this employee? o yes. Employees can be disciplined or discharged for work-related misconduct but not solely because of their union affiliations or union sentiments.
The Labour Relations Process 1. 2. 3. 4.
workers desire collective representation the union begins its organizing campaign and, if successful, is certified and recognized collective negotiations lead to a contract the contract is administered
Laws and administrative rulings influence each event by granting special privileges to, or imposing defined constraints on, workers, managers, and union officials.
Why Employees Unionize
economic needs general dissatisfaction with managerial practices social and leadership concerns union-shop provisions o requires employees to join as a condition of employment
Economic Needs - dissatisfaction with wages, benefits, and working conditions appear to provide the strongest reason to join a union - unions are built on traditional issues of wages, benefits, and working conditions
Dissatisfaction with Management - employees may seek unionization when they perceive that managerial practices regarding promotion, transfer, shift assignment, or other job-related policies are administered in an unfair or biased manner - favouritism shown by managers a major reason for joining unions o particularly true when the favouritism concerns the HR areas of discipline, promotion, job assignments, and training opportunities - failure of employers to give employees an opportunity to participate in decisions affecting their welfare may encourage union membership o one reason managers begin employee involvement programs and seek to empower their employees is to avoid collective action by employees Social and Leadership Concerns - employees may join unions as a means of satisfying needs for recognition and social affiliation - they have an opportunity to fraternize with other employees who have similar desires, interests, problems, and gripes through their union - to enjoy the companionship of others and to benefit in the prestige and value that organization may provide - union also enables them to put leadership talents to use as officers of the union and representatives of fellow employees - employees became union stewards so that they could be seen as ―a fellow your buddies look to‖ and as a person who ―stands up to the boss‖
Organizing Campaigns -
once employees desire to unionize, a formal organizing campaign may be started either by a union organizer or by employees acting on their own behalf most organizing campaigns are initiated by employees rather than by union organizers large national unions have formal organizing departments whose purpose is to identify organizing opportunities and launch organizing campaigns
Organizing Steps 1. Employee/union contact 2. Initial organizational meeting 3. Formation of an in-house organizing committee 4. Application to a labour relations board 5. Issuance of a certificate by a labour relations board 6. Election of a bargaining committee and contract negotiations Step 1: Employee/union contact - explore the possibility of unionization - employees investigate the advantages of representation, and union officials begin to gather information on employee needs, problems, and grievances - union organizers also seek specific information about the employer's financial health, supervisory styles, and organizational policies and practices - to win employee support, labour organizers must build a case against the employer and for the union - most organizing drives take place inside the company Step 2: Initial organizational meeting - attract more supporters - organizer uses the information gathered in Step 1 to address employee needs and explain how the union can secure these goals - two additional purposes of organizational meetings are o to identify employees who can help the organizer direct the campaign o to establish communication chains that reach all employees Step 3: Formation of an in-house organizing committee - composed of employees willing to provide leadership to the campaign - committee's role is to interest other employees in joining the union and in supporting its campaign - an important task of the committee is to have employees sign an authorization card indicating their willingness to be represented by a union in collective bargaining with their employer o union membership cards are confidential once signed, & only labour relations board has access to them o number of signed authorization cards demonstrates the potential strength of the labour union o legislation across Canada requires a union to collect authorization cards as a first step in union certification process
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two different processes for union certification used in Canada card-check a union is certified to represent the workers if the union submits to the labour board authorization cards on behalf of a majority of workers (such as 55 percent) in an appropriate bargaining unit mandatory ballot union must obtain authorization cards on behalf of a certain number of workers (in Ontario, it is 40 percent or more) to obtain a vote labour board orders a vote of employees in the bargaining unit, which the union must win (those who do not vote are not assumed to be voting against certification of the union)
Step 4: Application to a labour relations board - submits to the labour board its authorization cards, but the employer does not get to see them - labour board then applies the model, either certifying the union on the basis of a card-check, ordering a vote in provinces that use a mandatory ballot model, or dismissing the application if the union does not submit the required number of authorization cards Step 5: Issuance of a certificate by a labour relations board - if the union is successful, the board will ―certify‖ the union - if the union fails to meet the required test, the board will dismiss the application Step 6: Election of a bargaining committee and contract negotiations - bargaining committee is put in place to start negotiating a collective agreement - if the union is a national union, usually a national representative works with the bargaining committee to negotiate a collective agreement with the company - labour relations legislation imposes a duty on employers and unions to bargain in good faith and make reasonable efforts to complete a collective agreement Employer Tactics - employers must not interfere with the labour relations process of certification - prohibited by law from dismissing, disciplining, or threatening employees for exercising their right to form a union - cannot promise better conditions, such as increased vacation days, if the employees vote for no union or choose one union over another - cannot threaten to close the business - cannot unilaterally change wages and working conditions during certification proceedings or during collective bargaining - must bargain in good faith, meaning that they must demonstrate a commitment to bargain seriously and fairly - cannot participate in the formation, selection, or support of unions representing employees - can make the case that the employees have the right not to join a union and that they can deal directly with the employer on any issue - employer resistance to unionization is the norm in Canada, and opposition has been found to decrease the probability of successfully organizing - employers’ attempts to influence employees are scrutinized closely by officials of the organizing union and by the labour relations board Employer ―Don'ts‖ During Union Organizing Campaigns Attending union meetings, spying on employee–union gatherings, and questioning employees about the content of union meetings Questioning current employees about their union sentiments—especially about how they might vote in a union election Threatening or terminating employees for their union support or beliefs Changing the working conditions of employees because they actively work for the union or simply support its ideals Supplying the names, addresses, and phone numbers of employees to union representatives or other employees sympathetic to or opposed to the union Promising employees improvements in working conditions if they vote against the union Accepting or reviewing union authorization cards or pro-union petitions because employees’ names are listed on these documents Providing financial or any other support to employees opposed to unionization
Union Tactics - prohibited from interfering with the formation of an employer's organization - cannot intimidate or coerce employees to become or remain members of a union - cannot force employers to dismiss, discipline, or discriminate against nonunion employees - must provide fair representation for all employees in the bargaining unit , whether in collective bargaining or in grievance procedure cases - cannot engage in activities such as strikes before the expiration of the union contract. unfair labour practices (ULPs) - any of the prohibited activities noted above for both employers and unions - charges of ULPs are filed with the labour relations board, whose duty it is to enforce labour relations legislation Unfair Labour Practices Unfair labour practices by employers include Helping to establish or administer a union Altering the working conditions of the employees while a union is applying for certification without the union's consent Using intimidation, coercion, threats, promises, or exercising undue influence while a union is being organized Failing to recognize or bargain with the certified union Hiring professional strike breakers Unfair labour practices by unions include Contributing financial or other support to an employer's organization Not representing fairly the employees in the bargaining unit Bargaining or negotiating a collective agreement with an employer while another union represents the employees in the bargaining unit Calling or authorizing an unlawful strike or threatening to do so Threatening or intimidating workers to influence their support for the union
How Employees Become Unionized -
labour relations board must certify a union before it can act as a bargaining unit for a group of employees to acquire certification: o union must demonstrate that it has obtained the minimum level of membership support required by the labour relations board o obtain the right to represent workers through voluntary recognition, a process in which the employer simply agrees to recognize the union as the representative of the employees
Voluntary Recognition - all employers, except those in Quebec, may voluntarily recognize and accept a union - rarely happens, except in the construction industry, where there is a great reliance on union hiring halls
Contract Negotiation -
once a bargaining unit has been certified by the labour relations board, the employer and the union are legally obligated to bargain in good faith over the terms and conditions of a collective agreement terms of a collective agreement apply for a minimum of one year and a maximum of three years, although there is no legally mandated maximum as the contract expiry date approaches, either party must notify the other of its intention to bargain for a renewal collective agreement or contract negotiation
Decertification -
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application for decertification can be made to the labour relations board if o majority of employees indicate that they do not want to be represented by the union o majority of employees want to be represented by another union o union has failed to bargain if a collective agreement has been reached with the employer, this application can be made only at specified times, such as a few months before the agreement expires employees can initiate an application for decertification if the union fails to bargain
Impact of Unionization on Managers
Why would employers oppose the unionization of their employees? 1. wages and benefits are higher in union organizations compared to similar nonunion organizations 2. unions can have a significant effect on the rights exercised by management in making decisions about employees 3. unionization restricts the freedom of management to formulate HR policy unilaterally and can challenge the authority of supervisors Challenges to Management Decisions - unions typically attempt to achieve greater participation in management decisions that affect their members - decisions may involve such issues as the subcontracting of work, productivity standards, and job content - employers quite naturally seek to claim many of these decisions as their exclusive management rights - union may challenge and erode these prerogatives at the bargaining table, through the grievance procedure, and through strikes Loss of Supervisory Authority - for managers and supervisors, the focal point of the union's impact is at the operating level (the shop floor or office facility), where the terms of the collective agreement are implemented on a daily basis o e.g. terms can determine what corrective action is to be taken in directing and in disciplining employees o 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 a defendant during a grievance hearing - if the challenge is upheld, the supervisor's effectiveness in coping with subsequent disciplinary problems may be impaired - specific contract language can also reduce the supervisor's ability to manage in areas such as scheduling, training, transfers, performance evaluation, and promotions - under provisions of the collective agreement, supervisors may have to promote employees by seniority rather than by individual merit
Structures, Functions, and Leadership of Labour Unions Craft unions - represent skilled craft workers, such as carpenters or masons - International Association of Iron Workers, the United Brotherhood of Carpenters, and the United Association of Plumbers and Pipefitters industrial unions - represent unskilled and semiskilled workers employed along industry lines - Canadian Union of Postal Workers, United Auto Workers, United Steelworkers, and the Office and Professional Employees International Union - technological changes, union mergers, and competition among unions for members have helped reduce it - today, skilled and unskilled workers, white-collar and blue-collar workers, and professional groups are being represented by both types of unions (craft and industrial) employee associations - represent various groups of professional and white-collar employees - Federation of Quebec Nurses, Alberta Teachers Association - may function as unions and become just as aggressive as unions in representing members Three levels of labour organizations 1. central labour congresses 2. international and national unions 3. local unions belonging to a parent national or international union
The Canadian Labour Congress -
central federation of unions in 2011, the total membership of the CLC was over 3.2 million Canadians and represented the majority of all unions in Canada considered the most influential labour federation in Canada mainly a service organization representing over 90 international and national unions that finance the CLC through dues based on membership size attempts to influence legislation and promote programs that are of interest to labour by lobbying, resolving jurisdictional disputes, maintaining ethical standards, providing education and training to its members, conducting research, and representing Canadian interests in the international labour movement
International and National Unions -
international unions tend to be affiliates of American unions, with headquarters in the United States in Canada, there are 39 international unions (with a membership of 1.2 million workers) and 184 national unions (with a membership of 3.1 million) objectives of these ―umbrella‖ unions are to help organize local unions, to provide strike support, and to assist local unions with, among other things, negotiations and grievance procedures represent their members’ interests with internal and external constituents by ensuring that all employers pay similar wages to their unionized workers, they also remove higher wages as a competitive disadvantage in Canada, most of the decision-making authority in national unions is vested in the local unions or at the bargaining-unit level – bottom-up unionism many international unions, especially 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 organization can form their own union, with no affiliation to a national or international union more than 600 independent local unions in Canada most local unions are members of national or international unions or the CLC, which makes financial resources and advice available to them unionized employees pay union dues that finance the operation of the local union tend to make their own decisions but turn to the national union for collective bargaining help, research, and assistance when handling certain types of grievances officers of a local union are usually responsible for negotiating the local collective agreement, ensuring that the agreement is adhered to, and investigating and processing member grievances help prevent their members from being treated by their employers in ways that run counter to managementestablished HR policies keep members informed through meetings and newsletters
Role of the Union (Shop) Steward Union (shop) steward - represents the interests of union members in their relations with immediate supervisors and other members of management - usually elected by the union members in their own department and serve without union pay - often spends considerable time after working hours investigating and handling members’ problems - when representing members during grievance meetings on organizational time, lost earnings are often paid by the local union - can be viewed as a ―person in the middle,‖ caught between conflicting interests and groups - relationship between a manager/supervisor and the union steward can have a major bearing on union– management cooperation and on the efficiency and morale of the workforce Role of the Business Agent - major responsibilities are negotiating and administering the collective agreement and working to resolve problems arising in connection with it - must be all things to all people in their unions - often required to assume the role of counselor in helping union members with both personal and job-related problems - expected to satisfactorily resolve grievances that cannot be settled by union stewards - also administers the daily affairs of the local union
Labour Relations in the Public Sector Collective bargaining among federal, provincial, and municipal government employees and among employees in parapublic agencies (private agencies or branches of government acting as extensions of government programs) has been an area of important activity for the union movement. More than 70 percent of public employees are now unionized. The three largest unions in Canada represent public-sector employees. The Canadian Union of Public Employees (CUPE) is the largest union in Canada, with 548,000 members. The second-largest union, with 340,000 members, is the National Union of Public and General Employees (NUPGE). The largest union representing employees at the federal level is the Public Service Alliance of Canada (PSAC), with 166,000 members. PSAC comprises 17 different unions representing various groups, such as the Professional Institute of the Public Service of Canada (PIPS), the Social Science Employees
Association (SSEA), and air traffic controllers. Growth in these unions is threatened by increased cost-cutting efforts of governments at all levels, resulting in employee reductions. Although public-sector collective bargaining is quite similar to bargaining in the private sector, a number of differences are worth noting. We explore these differences in two contexts: (1) the political nature of the labour–management relationship and (2) public-sector strikes. Political Nature of the Labour-Management Relationship Government employees are not able to negotiate with their employers on the same basis as their counterparts in private organizations. It is doubtful that they will ever be able to do so because of inherent differences between the public and private sectors. One of the significant differences is that labour relations in the private sector have an economic foundation, whereas in government, the foundation tends to be political. Since private employers must stay in business to sell their goods or services, their employees are not likely to make demands that could bankrupt them. A strike in the private sector is a test of the employer's economic staying power, and, usually, the employer's customers have alternative sources of supply. Governments, on the other hand, must stay in business because alternative services are usually not available. Another difference between the public and private sectors relates to the source of management authority. In a private organization, authority flows downward from the board of directors and, ultimately, from the shareholders. In contrast, authority in the public sector flows upward from the public at large to their elected representatives and to the appointed or elected managers. It follows that public employees can exert influence not only as union members but also as pressure groups and voting citizens. Strikes in the Public Sector Strikes by government employees create a problem for lawmakers and for the general public. Because many of the services that government employees provide, such as policing and firefighting, are considered essential to the well-being of the public, public policy is opposed to strikes by these people. However, various provincial legislatures have granted public employees the right to strike. Where striking is permitted, the right is limited to specific groups of employees—those performing nonessential services—and the strike cannot endanger the public's health, safety, or welfare. Public-sector unions contend, however, that denying them the same right to strike as employees in the private sector greatly reduces their power during collective bargaining. Public employees who perform essential services do, in fact, strike. Teachers, sanitation employees, police, transit employees, firefighters, and postal employees have all engaged in strike action. To avoid potentially critical situations, various arbitration methods are used for resolving collective bargaining deadlocks in the public sector. One is compulsory binding arbitration for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated; in this case, a neutral third party is appointed to resolve the deadlock. Another method is final offer arbitration , under which the arbitrator must select one or the other of the final offers submitted by the disputing parties. With this method, the arbitrator's award is more likely to go to the party whose final bargaining offer has moved the closest to a reasonable settlement. The government can also enact back-to-work legislation, an option being used with increasing frequency.
The Bargaining Process -
entails long hours of extensive preparation combined with diplomatic manoeuvring and the development of bargaining strategies may include the use of economic pressures in the form of strikes and boycotts by a union lockouts, plant closures, and the replacement of strikers are similar pressures used by an employer either or both parties may seek support from the general public or from the courts as a means of pressuring the opposing side
Preparing for Negotiations -
assembling data to support bargaining proposals and forming the bargaining team permits collective bargaining to be conducted on an orderly, factual, and positive basis with a greater likelihood of achieving desired goals negotiators often develop a bargaining book that serves as a cross-reference file to determine which contract clauses would be affected by a demand bargaining book also contains a general history of contract terms and their relative importance to management ideally starts soon after the current agreement has been signed o allows negotiators to review and diagnose weaknesses and mistakes made during the previous negotiations while the experience is still current in their minds
Gathering Bargaining Data - employers gather economic data primarily in the areas of wages and benefits - internal data relating to grievances, disciplinary actions, transfers, promotions, overtime, and former arbitration awards are useful in formulating and supporting the employer's bargaining position - supervisors and managers who must live with and administer the collective agreement can be very important sources of ideas and suggestions concerning changes that are needed in the next agreement - contact with union members and representatives provides them with firsthand knowledge of the changes that union negotiators are likely to propose - union bargainers talk about ―taking wages out of competition‖ o refers to having similar contract provisions—particularly concerning wages and benefits—between different companies to prevent one employer from having a favourable labour cost advantage o allows unions to show their members that they are receiving wages and benefits comparable to those of other employees doing similar work - other negotiated collective agreements, particularly at the local and regional levels, play a significant part in settling the terms of the collective agreement. Bargaining Teams - normally, each side has four to six representatives at the negotiating table - initial meeting of the bargaining teams is a particularly important one because it establishes the climate that will prevail during the negotiations that follow - conduct of negotiations largely depends on the relationship and attitude of negotiators toward one another - attitudinal structuring is done to change the attitudes of the parties toward each other, often with the objective of persuading one side to accept the other side's demands
Chief negotiator
Team
Management VP or manager for labour relations hired labour lawyer (most often) representatives from accounting or finance, operations, HR, legal, or training
Union local union president national union representative business agent chief steward, various local union VPs, and a representative from the national union
Developing Bargaining Strategies and Tactics -
in tough economic periods, the employer's strategy might be cost containment or specific reductions in wages or benefits in times of economic growth—when a union strike would harm sales—the employer will be more willing to meet union demands employer's strategy should also consider proposals the union is likely to submit, goals the union is striving to achieve, and the extent to which it may be willing to make concessions or to resort to strike action to achieve these goals
At a minimum, the employer's bargaining strategy must address these points: Likely union proposals and management responses to them A listing of management demands, limits of concessions, and anticipated union responses Development of a database to support management bargaining proposals and to counteract union demands A contingency operating plan should employees strike Certain elements of strategy are common to both the employer and the union initial demands presented by each side are greater than those it may hope to achieve to provide room for concessions
each party usually avoids giving up the maximum it is capable of conceding to allow for further concessions that may be needed to break a bargaining deadlock each party normally tries to avoid disclosing the relative importance that it attaches to a proposal so that it will not be forced to pay a higher price than is necessary to have the proposal accepted
Negotiating the Collective Agreement - each side focuses on one issue or several related issues until agreement is reached - for each bargaining issue to be resolved satisfactorily, the point at which agreement is reached must be within limits that the union and the employer are willing to accept o area within these two limits is the bargaining zone o in some bargaining situations, solution desired by one party may exceed the limits of the other party solution is outside the bargaining zone o if that party refuses to modify its demands sufficiently 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 e.g. when bargaining a wage increase for employees, if the union's lowest limit is a 4 percent increase and management's top limit is 6 percent, an acceptable range—the bargaining zone—is available to both parties. If management's top limit is only 3 percent, however, a bargaining zone is not available to either side, and a deadlock is likely to occur - employer is obligated to negotiate in good faith with the union's representatives over conditions of employment (the same obligation applies to the union representatives) o good faith requires meetings to be held at reasonable times and places to discuss employment conditions o requires that the proposals submitted by each party be realistic - each side could offer reasonable counterproposals for those it is unwilling to accept o counterproposal can be ―no change‖ or ―we don't agree to that‖—there is no requirement to agree to all or part of the other side's proposals - both parties must sign the written document containing the agreement reached through negotiations The Bargaining Zone and Negotiation Influences
Interest-Based Bargaining adversarial bargaining - negotiators start with defined positions and, through deferral, persuasion, trade, or power, the parties work toward the resolution of individual bargaining demands - give-and-take philosophy—the results may or may not be to the complete satisfaction of one or both parties o when one side feels it received ―the short end of the stick,‖ bitter feelings may persist throughout the life of the agreement - does little to establish a long-term positive relationship based on open communications and trust
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by its nature, it leads to suspicion and compromise to overcome negative feelings, labour and management practitioners may use a nonadversarial approach to negotiating uses proposals and counterproposals as a means of reaching agreement
Interest-based bargaining (IBB) - based on the identification and resolution of mutual interests rather than the resolve of specific bargaining demands - ―a problem-solving process conducted in a principled way that creates effective solutions while improving the bargaining relationship‖ - focus is to discover mutual bargaining interests with the intent of formulating options and solutions for mutual gain - novel in both its philosophy and its bargaining process - distinct are the bargaining tools used to expedite a successful nonadversarial negotiating experience - participants use brain-storming, consensus decision making, active listening, process checking, and matrix building to facilitate the settlement of issues - underlying goal is to create a relationship for the future based on trust, understanding, and mutual respect Some Benefits of IBB
Settlement reached Objective of both parties met Grievances—these cost money Employee outcomes—affect long-term success of the organizations
Traditional Approach 125 days over several years No Arbitration Backlog of 3,411 Decreased employee morale, increased absenteeism, grievances, lack of credibility in leadership
Interest-Based Bargaining 25 days over 4 months Yes Mediation before to avoid arbitration to avoid fees Backlog reduced Improved morale, increased credibility of leadership, both management and the association, and a significant reduction in grievances and improvement in attendance
Management and Union Power in Collective Bargaining bargaining power - consists of its economic, political, and social influence to achieve its demands at the expense of the other side Union Bargaining Power - bargaining power of the union may be exercised by striking, picketing, or boycotting the employer's products or services strike -
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refusal of a group of employees to perform their jobs Canada has the second highest rates of days lost to strikes in the world legal requirement that unions hold and win a strike vote as a condition of striking lawfully a strike vote by the members does not mean they actually want or expect to go out on strike o intended as a vote of confidence to strengthen the position of their leaders at the bargaining table of critical importance to the union is the extent, if any, to which the employer will be able to continue operating through the use of supervisory and nonstriking personnel and employees hired to replace the strikers o in some jurisdictions, employers face restrictions to their right to hire replacement workers o violence and strife associated with the use of replacement workers has caused Quebec and British Columbia to forbid their use in organizations with high levels of technology and automation, and consequently fewer employees, continuing service with supervisors and managers is more likely o because of technological change, striking in many industries no longer has the effect of curtailing the employer's operations significantly the greater the ability of the employer to continue operating, the less the union's chances of gaining its demands through a strike when a union goes on strike, it often pickets the employer by placing people at business entrances to advertise the dispute and to discourage others from entering the premises o unions often refuse to cross another union's picket line, the pickets may serve to prevent the delivery and pickup of goods or performance of other services once a strike has been settled, the workers are entitled to return to their jobs, although not necessarily their previous positions right to return to work is often an issue to be negotiated
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employees are often required to submit in writing their intention to return to their jobs once a strike is finalized
boycott - refusal to patronize the employer - e.g. production employees on strike against a hand tool manufacturer might picket a retail store that sells the tools made by the struck employer - unions will also use handbills, radio announcements, email campaigns, and newspaper ads to discourage the purchase of the employer's product or service Management Bargaining Power - when negotiations become deadlocked, the employer's bargaining power largely rests on being able to continue operations in the face of a strike or to shut down operations entirely - another prevalent bargaining strategy is for the employer to continue operations by using managers and supervisors to staff employee jobs - employer may elect to lock out its employees o lockout is a bargaining strategy by which the employer denies employees the opportunity to work by closing its operations o lockouts may be used by employers to combat union slowdowns, damage to their property, or violence within the organization that may occur in connection with a labour dispute - employers may still be reluctant to resort to a lockout, however, because of their concern that denying work to regular employees (employees who are not members of the union who may be locked out; they may or may not be members of another union) might hurt the organization's image
Resolving Bargaining Deadlocks mediation - voluntary process that relies on the communication and persuasive skills of a mediator to help the parties resolve their differences - often used to settle private-sector bargaining disputes - mediator is typically used to break a deadlock and assist the parties in reaching an agreement conciliation - compulsory in all Canadian jurisdictions before a legal strike or lockout - conciliator, appointed by the provincial or federal ministry of labour, attempts to reach a workable agreement interest arbitrator - assumes the role of a decision maker and determines what the settlement between the two parties should be - writes a final contract that the parties must accept interest arbitration - common method to resolve bargaining deadlocks in the public sector, where strikes are often prohibited - arbitrator is generally called on to resolve disputes arising in connection with administration of the agreement, called rights arbitration or grievance arbitration
The Collective Agreement -
becomes a formal binding document listing the terms, conditions, and rules under which employees and managers agree to operate once negotiations are concluded two important items pertain to the issue of management rights and the forms of security afforded the union Items in a Collective Agreement
Typical Clauses Will Cover Wages Management rights Grievance procedures Severance pay Vacations Union security No strike/no lockout clause Seniority Holidays Transfers Overtime Pensions and benefits Work schedules Discipline Safety procedures Outsourcing
Other Clauses Will Cover Employee access to records Limitations on use of performance evaluation Eldercare leave, childcare, work-family balance provisions Flexible medical spending accounts Protection against hazards of technology equipment Limitations against electronic monitoring Bilingual stipends Domestic partnership benefits
The Issue of Management Rights -
management rights have to do with the conditions of employment over which management is able to exercise exclusive control almost without exception, the collective agreement contains a management rights clause states that ―management's authority is supreme in all matters except those it has expressly conceded in the collective agreement, or in those areas where its authority is restricted by law‖ management rights might include the right of management to determine the products to produce, to determine the location of production or service facilities, or to select production equipment and procedures
Union Security Agreements -
union officials will seek to negotiate some form of compulsory membership as a condition of employment union officials argue that compulsory membership precludes the possibility that some employees will receive the benefits of unionization without paying their fair share of the costs a standard union security provision is dues checkoff, which gives the employer the responsibility of withholding union dues from the paycheques of union members who agree to such a deduction other common forms of union security are different types of ―shop‖ agreements o union shop - any employee who is not a union member on employment must join the union within 30 days or be terminated o agency shop - voluntary membership
Administration of the Collective Agreement -
usually the most publicized and critical aspect of labour relations - strike deadlines, press conferences, and employee picketing bulk of labour relations activity comes from the day-today administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage o differences are traditionally resolved through the grievance procedure
Negotiated Grievance Procedures grievance procedure - provides for the union to represent the interests of its members (and nonmembers) in processing a grievance - considered by some authorities to be the heart of the bargaining agreement or the safety valve that gives flexibility to the whole system of collective bargaining - grievance process is normally initiated by the union—or an individual employee—when it feels management has violated some article of the collective agreement o bypass grievance - grievance filed when an employee was promoted out of seniority order - significant benefit is that it provides a formal and orderly procedure for the union to challenge the actions of management without resorting to strikes - fosters cooperation, not conflict, between the employer and the union - operation of a grievance procedure is unique to each collective bargaining relationship, but the procedure is usually required under Canadian labour relations statutes o grievance procedures normally specify how the grievance is to be initiated number and timing of steps that are to compose the procedure identity of representatives from each side who are to be involved in the hearings at each step - when a grievance cannot be resolved at one of the specified steps, most agreements provide for the grievance to be submitted to a third party—usually an arbitrator—whose decision is final - some collective agreements provide for mediation as a way to resolve employee grievances o grievance mediation will be listed as a formal step in the grievance procedure preceding arbitration
Rights Arbitration -
function is to provide the solution to a grievance that a union and an employer have been unable to resolve by themselves arbitration is performed by a neutral third party (an arbitrator or impartial umpire, whose 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 – weak cases do not usually go to arbitration
Reasons for taking a weak case to arbitration
Union Management to demonstrate to its members that the union is willing to demonstrate to union officers that management to exhaust every remedy in looking out for their ―cannot be pushed around‖ interests managers at lower levels may be reluctant to risk the members who filed for grievance are popular or displeasure of top management by stating that a certain politically powerful in the union HR policy is unworkable or unsound members can bring suit against their unions for failing to process their grievances adequately Stubbornness and mutual antagonism - neither party is willing to make concessions to reach an agreement, even when it may recognize that it is in the wrong
The Arbitration Process 1. swearing-in of witnesses 2. parties make opening statements 3. presentation of facts and evidence and the oral presentation of witnesses 4. concludes with each side making summary statements that are arguments in support of its position arbitration hearing - responsibility of the arbitrator to ensure that each side receives a fair hearing during which it may present all of the facts it considers pertinent to the case - primary purpose of the hearing is to assist the arbitrator in obtaining the facts necessary to resolve a human relations problem rather than a legal one - arbitrator has a right to question witnesses or to request additional facts from either party - after conducting the hearing and receiving post-hearing briefs (should the parties choose to submit them), the arbitrator considers the evidence and renders an award - costs of arbitration are usually shared equally by the parties The Arbitration Award - formal written document given to both sides - no specific format as in grievance procedures Typically, the award contains five parts: 1. submission to arbitrate 2. facts of the case 3. positions of the parties 4. opinion of the arbitrator o can provide guidance concerning the interpretation of the collective agreement and the resolution of future disputes arising from its administration 5. decision rendered o major importance to the parties
Small Business Application -
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labour relations boards have the power to certify unions without a membership vote if the labour relations board has concerns that the employees’ right to union representation has somehow been impeded provide employees with competitive wages and treat employees fairly and with respect, to have little or no risk of becoming unionized probability of a union forming is small since the cost to the union to certify, bargain, and represent workers would likely be greater than the collected union dues from a small membership employers should take action to understand and address any discontent in the workplace if employer hears of unionization attempts, he or she would be well advised to consult with an HR or labour relations consultant, or labour relations lawyer, to get assistance in establishing an appropriate course of action, as well as review the sections on unfair labour practices if unionized, follow same process as large companies o bargain with the union and negotiate a collective agreement that outlines the employment terms and conditions for a period of time o collect and submit union dues to the union representing employees o follow the legislative requirements set for represented employees, including grievance management and arbitration
