Chapter 16: Labour Relations *The Negotiator – Buzz Hargrove ...

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Chapter 16: Labour Relations *The Negotiator – Buzz Hargrove Introduction to Labour Relations • Labour union – official association of employees practicing a similar trade or working in the same company/industry, joined together to present a united front and collective voice in dealing with management o Purpose: influence HR policies/practices affecting members, such as pay and benefits; achieve greater control over jobs, job security, and working conditions; increase job satisfaction o Primary goal: obtain economic benefits and improved treatment for members o Reduces management’s flexibility and discretion in dealing with employees • Labour-management relations – ongoing interactions between unions and management • Collective agreement (union contract) – formal agreement between employer/union representation group of employees regarding terms/conditions of employment • Collective bargaining – negotiations between union/employer to arrive at mutually acceptable collective agreement • Bargaining unit – group of employees in a firm/plant/industry recognized by employer or certified by a Labour Relations Board (LRB) Canada’s Labour Laws • Two general purposes: 1) Provide common set of rules for fair negotiations (negotiate in good faith) 2) Protect public interest by preventing impact of labour disputes from inconveniencing the public (public welfare, safety and security) • There are employment legislation, 13 provincial/territorial jurisdictions, and federal labour relations legislation • Commonalities across jurisdictions: o Certification procedures o Min. 1 year for collective agreements o Procedures preceding legal strike/lockout o No strikes/lockouts during life of contract o Interpretation disputes settled by binding arbitration o Prohibition of unfair labour practices o Labour relations boards to enforce legislation The Labour Movement in Canada Today • Business unionism – activities of unions focusing on economic and welfare issues, such as pay/benefits, job security, and working conditions • Social (reform) unionism – activities directed at furthering the interests of their members by influencing the social/economic policies of government, such as speaking out on proposed legislative reforms Types of Unions 1) Type of worker eligible for membership



Craft unions – union representing workers practicing the same craft or trade, eg. carpentry or plumbing • Industrial union – union for members of a particular company or industry, regardless of work performed 2) Geographical scope • International, national, or local unions 3) Labour congress affiliation • Canadian Labour Congress (CLC) – primary • Confederation of National Trade Unions (CNTU) • American Federation of Labor - Congress of Industrial Organizations (AFLCIO) Membership Trends • 30% of Canadians are unionized • Percentage of labour force in unions has been slowly decreasing since the 1980s • Reasons: dramatic increase in service/white-collar jobs, decrease in employment in industries such as manufacturing, more effective HR practices in non-unionized firms Current Challenges to the Canadian Labour Movement • Global competition (eg. NAFTA) – unions must make concessions or see jobs to go lower-cost countries • Technological change (Greater automation, loss of manufacturing jobs) • Privatization and unionization of white-collar employees • Innovative workplace practices • High Performance Work Systems (HPWS) – training, development, appraisal, pay The Labour Relations Process Step 1: Desire for Collective Representation • Factors affecting desire to unionize: o Job dissatisfaction o Lack of job security o Unfair/biased administration of policies o Perceived inequity in pay o Lack of advancement opportunity o Lack of desired amount of influence in decisions o Belief that unions can be effective in improving pay and working conditions o Summary: only if workers are dissatisfied AND believe they are only able to change that as a collective group will they be interested in unionizing • On average, unionized employees in Canada earn 8% more Step 2: Union Organizing Campaign 1) Employee/union contact 2) Initial organizational meeting (with interested employees) 3) Formation of in-house organizing committee 4) Organizing campaign – contacting employees, presenting case for unionization, and encouraging employees to sign an authorization card



Authorization card – card signed by employee indicating willingness to have union act as representative for collective bargaining 5) Outcome: certification, recognition, or rejection • Employers may launch a counter-campaign by expressing their views/opinions/position on unions, prohibit distribution of literature on company property/time, etc. Step 3: Union Recognition • Three ways to recognize: 1) Voluntary recognition 2) Certification – union obtains certificate from relevant LRB declaring that union is the exclusive bargaining agent for bargaining unit that the LRB considers appropriate for collective bargaining  If level of support is extremely high, or employer has engaged in unfair practices, LRB can grant automatic certification (about 80% of cases)  Otherwise, representation vote – conducted by LRB, employees in bargaining unit indicate by secret ballot whether or not they want to be represented by a labour union (about 20% of cases) 3) Pre-hearing votes – alternative for certification where there is evidence of violations of fair labour practices early in the organizing campaign  LRB can order vote to determine the composition of the bargaining unit and the level of support, BFORE determining whether the bargaining unit is appropriate  If deemed appropriate, only then are the votes counted; if majority is in support, it is certified • Management’s strategy: o Union acceptance strategy – union as a partner, mutual gains o Union avoidance strategy  Union substitution – HR must be proactive, provide same things a union would  Union suppression – eg. Wal Mart • Termination of bargaining rights o Decertification – union is legally deprived of official recognition as the exclusive bargaining agent for a group of employees o Members can apply if they are dissatisfied with the union or cannot reach collective agreement o Also, union can notify LRB that it no longer wants to represent employees (known as ‘termination on abandonment’) Step 4: Collective Bargaining • Union and management must bargain in good faith and make every reasonable effort to arrive at agreement 1) Preparation for negotiations – plan strategy, assemble data, form negotiating team and create initial bargaining plan/strategy 2) Face-to-face negotiations  Usually off-site in a neutral location, and each side has another room for intra-team meetings known as caucus sessions  Initial session is extremely important for setting the climate. Generally involves exchange of demands and establishment of rules/procedures

Bargaining zone – area defined by bargaining limits (resistance points) of each side, in which compromise is possible, as is the attainment of a settlement satisfactory to both parties  Distributive bargaining – win-lose negotiating strategy, with one party gaining at the other’s expense; appropriate for distribution of a fixed amount  Integrative bargaining – acknowledgement that a win-win outcome will depend on mutual trust and problem solving; genuine interest in joint exploration of creative solutions • Eg. work rules, job descriptions, contract language  Mutual gains (interest-based) bargaining – also a win-win approach, based on training in the fundamentals of effective problem solving and conflict resolution, where interests of ALL stakeholders are taken into account 3) Contract approval process  Memorandum of settlement – summary of terms/conditions agreed to, submitted to constituent groups for final approval, which generally rests with senior management  Ratification – formal approval by secret-ballot vote of bargaining unit members If unable to come to agreement: o Conciliation – use of neutral 3rd party to help reach a mutually satisfactory collective agreement; only tool is persuasion, not direct input or authority to impose settlement o Mediation – use of neutral 3rd party to help reach a mutually satisfactory collective agreement; active role, including meeting with each side separately, and can have direct input in the negotiation process o If still unable to reach agreement after conciliation, union may strike or request arbitration, and employer may lock out bargaining unit o Strike – temporary refusal by bargaining unit to continue working  Strike vote – seeking authorization from bargaining unit to strike if necessary (favourable vote doesn’t mean strike is inevitable)  Members receive no wages and often have no benefits coverage  Picket – stationing groups of striking employees, usually carrying signs, at entrances/exists to publicize issues and discourage people from entering or leaving the premises  Boycott – organized refusal to buy products/services of organization  Illegal to strike during the term of a collective agreement, or if services are essential (nurses, police)  Wildcat strike – spontaneous walkout not officially sanctioned by union o Lockout – temporary refusal of company to continue providing work for bargaining unit, which may include closing the establishment o Interest arbitration  Arbitration – use of outside 3rd party to investigate dispute and impose settlement 





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• More informal than court and not bound by precedent  Interest dispute – dispute between organization and union over terms of collective agreement  Interest arbitration – imposition of final terms of collective agreement Typical Provisions of a Collective Agreement o Union recognition clause o Union security/checkoff clause – protecting interests of union, dealing w/ issues of membership requirements and payment of dues  Closed shop – most restrictive; only union members in good standing can be hired by employer  Union shop – employees must all be members of union  Modified union shop – existing employees can avoid joining union but must pay dues; all subsequently hired employees must do both  Maintenance-of-membership arrangement – members must remain members during term of contract  Rand formula – most popular; membership is not required, but all bargaining unit members must pay dues  Open shop – membership voluntary, nonmembers not required to pay dues o No-Strike-or-Lockout provision – must be forbidden during collective agreement term o Management rights clause – areas in which management may exercise rights without agreement from union, eg. operating organization o Arbitration clause 5: Contract Administration Sources of disagreement: o Seniority – unions prefer to use seniority to decide on layoffs/recalls/promotions, while management prefers weight on ability/merit o Discipline – agreements restrict employer’s right to discipline employees by requiring proof of just cause for disciplinary action Grievance resolution and rights arbitration o Grievance – written allegation of contract violation, filed by bargaining unit individual, union, or management  Most agreements detail a grievance procedure, with the purpose of ensuring application of contract with justice for both parties; most have arbitration as last step  Typical order: written grievance presented to immediate supervisor > HR/LR specialist > senior management > arbitrator o Rights dispute – disagreement regarding interpretation or application of clauses in current collective agreement o Rights arbitration – process to settle a rights dispute

The Impact of Unionization on HRM • Organizational Structure – HR department adds a LR specialist/section

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Management Decision Making – less freedom to make unilateral decisions, documentation is critical Formulation of Policies and Procedures – all HR policies must be consistent with terms of agreements Centralization of Record Keeping – helps ensure consistency/uniformity

Building Effective Labour-Management Relations • Institution an Open-Door Policy • Extending the Courtesy of Prior Consultation – allow management to hold informal discussions with union executive to bypass union approval • Demonstrating Genuine Concern for Employee Well-Being – going beyond the terms agreed to • Forming Joint Committees • Holding Joint Training Programs – reduce misunderstandings/disagreement • Meeting Regularly – more effective communication and resolution of problems • Using Third-Party Assistance – bring in consultant or gov’t agency rep Pre Test

1. Collective bargaining is a formal agreement between an employer and the union. Your Answer: False

2. Managers select a union avoidance strategy when they believe that it is preferable to operate in a non-unionized environment. Your Answer: True

3. In some jurisdictions, automatic certification may be granted if the employer has engaged in unfair practices. Your Answer: False Correct Answer: True

4. A pre-hearing vote follows the certification process. Your Answer: True Correct Answer: False

5. All LR acts provide procedures for workers to apply for the decertification of their unions. Your Answer: True

6. Fifty percent or more votes are required in order for a union to be decertified. Your Answer: True

7.

The initial meeting of the bargaining teams will establish the climate that will prevail during the negotiating sessions that follow. Your Answer: True

8. If the solution desired by one party exceeds the limits of the other party, then it is outside of the bargaining zone. Your Answer: True

9. In integrative bargaining, a win-win outcome will depend on mutual trust and problem solving. Your Answer: True

10. Mutual gains (interest-based) is another lose-win approach to labour relation issues. Your Answer: False

11. Memorandum of settlement is a formal approval by secret-ballot. Your Answer: False

12. Striking union members often have benefits coverage. Your Answer: False

13. A boycott is a refusal to patronize the employer. Your Answer: True

14. The duration and ultimate success of a strike depends on the relative strength of the parties. Your Answer: True

15. A union security clause deals with the issue of membership requirements and, often, the payment of union dues. Your Answer: True

16. An open shop is a type of security arrangement whereby union membership is mandatory. Your Answer: False

17. After a collective agreement has been negotiated and signed, the employees sign off on the contract. Your Answer: True Correct Answer: False

18.

The primary purpose of the grievance procedure is to ensure the application of the contract with a degree of justice for both parties. Your Answer: True

19. Union leaders should never be treated as partners. Your Answer: False

20. In a unionized setting, management has less freedom to make unilateral decisions. Your Answer: True Post Test

1. Primary jurisdiction for labour laws resides with: Your Answer: Provinces and territories Correct Answer: None of the above

2. Businesses engaged in transportation, banking, and communications are governed by ______ labour relations legislation. Your Answer: Federal

3. Common characteristics of labour relations legislation across Canada include: Your Answer: All of the above

4. Unions strive to ensure _____ security for their members and to attain improved economic conditions and better working conditions for their members. Your Answer: Job

5. A(n) ___________ union is a labour organization comprising all of the workers eligible for membership in a company or industry, including skilled tradespersons. Your Answer: Industrial

6. Labour unions that charter branches in both Canada and the United States are known as _______ unions. Your Answer: International

7. The __________ is the major central labour organization in Canada. Your Answer: CLC

8. The basic unit of the labour union movement in Canada is the _______, formed in a particular plant of locality. Your Answer: Local

9. This is a session in which only the members of one's own bargaining team are present. Your Answer: Caucus session

10. Distributive bargaining is an approach often typified as ______ bargaining. Your Answer: Win/lose

11. The primary purpose of conciliation is to: Your Answer: Bring the parties together

12. When talks break down third-party assistance is required by law in every jurisdiction except: Your Answer: Quebec Correct Answer: Saskatchewan

13. The primary purpose of mediation is: Your Answer: Fashion a mutually satisfactory agreement

14. A _______ strike is a spontaneous walkout not officially sanctioned by the union. Your Answer: Wildcard Correct Answer: Wildcat

15. A __________ clarifies the scope of the bargaining unit by specifying the employee classifications included therein or listing those excluded. Your Answer: Union recognition clause

16. The ______________ is the most popular union security arrangement. Your Answer: Rand formula

17. Seniority refers to the: Your Answer: Length of service with an employer Correct Answer: Length of service in the bargaining unit

18. A multi-step grievance procedure, the last step of which is final and binding arbitration, is found in virtually all_____________? Your Answer: Collective agreements

19. The typical first step of the grievance procedure is: Your Answer: The employee speaks to the supervisor Correct Answer: Employee prepares written grievance with aid of union steward

Short Answer

1. The Labour Relations Process List the five steps in the labour relations process. Your Answer: a Employees decide to seek collective representation. The union organizing campaign. Official recognition of the union. Negotiation of a collective agreement. Day-to-day contract administration.

2. Signs of Organizing Activity List five signs that a unionization attempt may be underway. Your Answer: a Disappearance of employee list or directories. More inquiries than usual about compensation, promotions, and other HR policies. Questions about their opinions of unions. An increase in the number or nature of employee complaints. A change in the number, composition, and size of informal groups at lunch and coffee breaks.

3. Employer Response to an Organizing Campaign List 5 rights of an employer during an organizing campaign. Your Answer: a Express their views and opinions regarding unions. State their position regarding the desirability of remaining non-union prohibit distribution of union literature on their own property on company time Increase wages, make promotions, and take other HR actions as long as they would do so in the normal course of business. Assemble employees during working hours to state the company's position.

4. Grievance Resolution and Rights Arbitration Describe and compare a rights dispute and rights arbitration. Your Answer: a Rights dispute: A disagreement between an organization and the union representing its employees regarding the interpretation or application of one or more clauses in the current collective agreement.

5. Building Effective Labour-Management Relations List 5 ways to promote cooperation between management and labour.

Your Answer: a Instituting an open-door policy Extending the courtesy of prior consultation Demonstrating Genuine Concern for Employee well-being Forming joint committees Holding joint training programs