the union-management framework

1Copyright © 2007 by McGraw-Hill Ryerson. All rights reserved. Schwind 8th Canadian Edition

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The Union-Management The Union-Management FrameworkFrameworkThe Union-Management The Union-Management FrameworkFramework

C H A P T E R


What is Union??????????What is Union??????????What is Union??????????What is Union??????????

A union is an organization with

the legal authority to represent

workers, negotiate the terms and

conditions of employment with

the employer, and administer the

collective agreement


What is Collective Agreement??What is Collective Agreement??What is Collective Agreement??What is Collective Agreement??

A contract negotiated between union and employer, outlining

terms and conditions of employment, issues such as

*Wages and benefits

*Hours of work

*Working conditions

*Grievance procedure

*Safety standards

*Probationary periods

Work assignments


UnionUnionUnionUnion

• Unions do not just happen. They are frequently caused by management action or inaction that workers perceive as unfair


Causes of UnionsCauses of Unions Why do Employees Join Unions?Why do Employees Join Unions?

Causes of UnionsCauses of Unions Why do Employees Join Unions?Why do Employees Join Unions?

Reasons for JoiningReasons for Joining

• Job dissatisfactionJob dissatisfaction

• Individual attitudes Individual attitudes toward unionstoward unions

• Perceived union Perceived union instrumentality instrumentality (beliefs (beliefs about what unions can about what unions can do for an employee)do for an employee)

Reasons for Not JoiningReasons for Not Joining

• Belief that union Belief that union membership may harm membership may harm chances for promotionchances for promotion

• Extra costs for union Extra costs for union dues or strikesdues or strikes

• Negative opinions Negative opinions toward unionstoward unions

• Fair supervisory Fair supervisory treatment/policiestreatment/policies


CANADIANS’ VIEWS TOWARD UNIONSCANADIANS’ VIEWS TOWARD UNIONSCANADIANS’ VIEWS TOWARD UNIONSCANADIANS’ VIEWS TOWARD UNIONS

Statement Canada U.S. Workers who approve of unions 67% 70% Workers who believe that, as a 52% 57% whole, unions are good Nonunion employees who, if an 33% 47% election were held tomorrow, would vote for unionization Nonunion employees who feel 42% 37% that unions are not needed since workers get fair treatment now Figure 14-2


Union Goals and PhilosophyUnion Goals and PhilosophyUnion Goals and PhilosophyUnion Goals and Philosophy

Business UnionismBusiness Unionism Social (Reform) UnionismSocial (Reform) Unionism

Mission to protectMission to protectworkers, increaseworkers, increasetheir pay, improvetheir pay, improvetheir workingtheir workingconditions, and helpconditions, and helpworkers in generalworkers in general

Tries to influence theTries to influence theeconomic and socialeconomic and social

policies of governmentpolicies of governmentby speaking out for orby speaking out for or

against governmentagainst governmentprogramsprograms


Union Structure and FunctionUnion Structure and FunctionUnion Structure and FunctionUnion Structure and Function

National/International UnionsNational/International Unions

• Many local unions are part of a larger national or international union

• Canadian Auto workers• International brotherhood of

teamsters

Local UnionsLocal Unions

• Provides the members, the revenue, and the power of the union movement

Craft UnionsCraft Unions

• Type of local union• Composed of workers who

possess the same skills or trade

• The carpenters work in the same area

Industrial UnionsIndustrial Unions

• Type of local union • Includes the unskilled and

semiskilled workers at a particular location


Union Structure and FunctionUnion Structure and FunctionUnion Structure and FunctionUnion Structure and Function

• Canadian Labour Congress: CLC Largest labour federation with a total membership of more than 2.5 million

employees

• Functions:

*Representing Canada at the international labour organization

*Influencing public policy at the federal level

*Providing services for its members

Unions instruct members on workplace benefits, rights, rules and procedures, while protecting them from unjust firings and layoffs.


Trends in Union MembershipTrends in Union MembershipTrends in Union MembershipTrends in Union Membership

• Union Growth and Decline– The number of women members in Canadian

unions has been increasingly rapidly (almost 50% of union members are female)

– Unions are placing greater emphasis on organizing service employees, e.g., Tim Hortons in Ontario, some Starbucks in BC

– Quebec has the highest rate (36.9%) of unionization; Alberta (21.8%) has the lowest union density


Trends in Union MembershipTrends in Union MembershipTrends in Union MembershipTrends in Union Membership

– Part-time workers are less likely to be unionized (23.3%) than full-time workers (31.5%)

– Larger workplaces are more likely to be unionized

• Global Trends– A number of countries have experienced a

decline in union density


Impact of Union RepresentationImpact of Union RepresentationImpact of Union RepresentationImpact of Union Representation

ProductivityProductivity

Wages & Wages & benefitsbenefits

StrikesStrikes • Most collective agreements are settled without a strike or lockout

• Higher wages, particularly for part-time employees

• More comprehensive benefits

• Relationship between unionization and productivity is subject to debate

*Reduce employee turnover*Raise productivity or output per

worker


THE LEGAL ENVIRONMENTTHE LEGAL ENVIRONMENTTHE LEGAL ENVIRONMENTTHE LEGAL ENVIRONMENT

• Federal jurisdiction over labour relations is limited to organizations involved in interprovincial trade and commerce (e.g., banks,

• airlines,

• railways,

• federal government agencies).


THE LEGAL ENVIRONMENTTHE LEGAL ENVIRONMENT

Canadian Labour LegislationCanadian Labour LegislationTHE LEGAL ENVIRONMENTTHE LEGAL ENVIRONMENT

Canadian Labour LegislationCanadian Labour Legislation

Common Core ofCommon Core ofLabourLabour

LegislationLegislation

Right to joinRight to joina uniona union

Good-faithGood-faithbargainingbargaining

No strikes orNo strikes orlockouts duringlockouts during

agreementagreement

ConciliationConciliationBefore strike Before strike

or lockoutor lockout

Prohibition ofProhibition ofunfair labour unfair labour

practicespractices


Labour Relations BoardsLabour Relations BoardsLabour Relations BoardsLabour Relations Boards

Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation

Investigate violation of the law and have the power to investigate and make decisions, e.g., enforce unfair labour practice allegations


ENVIRONMENTAL FACTORS THAT MAY LEAD TO ENVIRONMENTAL FACTORS THAT MAY LEAD TO UNIONIZATIONUNIONIZATION

ENVIRONMENTAL FACTORS THAT MAY LEAD TO ENVIRONMENTAL FACTORS THAT MAY LEAD TO UNIONIZATIONUNIONIZATION

• External Factors– Recent changes in labour laws– Increase in unionization activity– Major increase in the workforce is planned

• Internal Factors– High turnover and absenteeism rates– Employees are dissatisfied– Pay and benefits are below average– Complaint procedures are ineffective


Unfair Labour Practices by……Unfair Labour Practices by……Unfair Labour Practices by……Unfair Labour Practices by……

ManagementManagement UnionsUnions

• Interfering in the formation of a union or contributing financially

• Discriminating based on union membership or because employee exercises rights

• Intimidating an employee to join/not join

• Trying to bargain when the union is not the certified agent

• Persuading employees during working hours, or at the workplace to join/not join

• Engaging in, encouraging Illegal strikes

• Failing to represent employees fairly


Obtaining Bargaining RightsObtaining Bargaining RightsObtaining Bargaining RightsObtaining Bargaining Rights

• Legal recognition may be obtained in 3 ways:

• Voluntary recognition: If a union organised a majority of employees and the employer is satisfied that union did not apply undue pressure in the organisation process. The employer then accepts the union as the legal rights to bargaining agent without any third party involvement

• Certification by a labour relation Board Alberta , British Colombia, Newfoundland, Nova Scotia and Ontario do not automatically certify unions rather go for election whether union has got sufficient support

•


Obtaining Bargaining RightsObtaining Bargaining RightsObtaining Bargaining RightsObtaining Bargaining Rights

• Prehearing votes:

When there are significant indications that an employer has committed unfair labour practices to prevent

unionization. In such case a union can ask an LRB to conduct a prehearing vote.


NEGOTIATING A COLLECTIVE AGREEMENTNEGOTIATING A COLLECTIVE AGREEMENTNEGOTIATING A COLLECTIVE AGREEMENTNEGOTIATING A COLLECTIVE AGREEMENT

• Once a union is certified, the union and management are required to bargain in good faith to negotiate a collective agreement. The collective bargaining process has three overlapping phases:

Phase 1—Preparation for Negotiations

Often the most critical stage,Detailed preparations are required to achieve objectives

Phase 2—Negotiating with the Union Face-to-face bargaining

Phase 3—Approving the Proposed Agreement

Bargaining stage of negotiations is completed when the agreement has been approved


3 Phases of Collective Bargaining3 Phases of Collective Bargaining3 Phases of Collective Bargaining3 Phases of Collective Bargaining

Phase 1Phase 1

PreparingPreparingforfor

negotiationsnegotiations

Phase 2Phase 2

Negotiating Negotiating with the with the unionunion

Phase 3Phase 3

Approving Approving the the

proposed proposed agreementagreement


Mutual Gains BargainingMutual Gains BargainingMutual Gains BargainingMutual Gains Bargaining

• Moves away from traditional adversarial approach

• Win-win approach

• Joint problem-solving activities

• Usually preceded by conflict resolution training

• Requires both parties to have commitment, trust, respect & a long-term focus


ConciliationConciliationConciliationConciliation

• All jurisdictions provide for conciliation and mediation services when labour and management negotiations break down

• Conciliation– A government-appointed third party attempts to bring

together the parties to reconcile their differences– Appointed at the request of either one or both parties or

at the discretion of the minister of labour (federal or provincial)

– In most provinces, no strike action is permitted before a conciliation effort has been made


MediationMediationMediationMediation

Process whereby disputing parties choose voluntarily to reconcile their differences

through a third party


Administering the Collective AgreementAdministering the Collective AgreementAdministering the Collective AgreementAdministering the Collective Agreement

• Grievance– is a complaint by an employee or employer

that alleges that some aspect of a collective agreement has been violated

• Grievance procedures– Most collective agreements include formal

multi-step procedures to resolve grievances


Administering the Collective AgreementAdministering the Collective AgreementAdministering the Collective AgreementAdministering the Collective Agreement

• Arbitration

– is used to resolve a grievance when an acceptable solution cannot be reached. Process may be costly, highly legalistic and is final i.e. usually cannot be changed or revised


Contract ProvisionsContract ProvisionsContract ProvisionsContract Provisions

Union Shop:a union security provision in which

employers may hire anyone they want, but all workers must join the union within a specified period

Dues check-off is a common provision in collective

agreements and requires an employer to deduct union dues at source from the wages of an employee and remit the funds to the union


Contract ProvisionsContract ProvisionsContract ProvisionsContract Provisions

• Seniority—length of the worker’s employment, which may be used for determining order of promotion, layoffs, vacation, etc.

• Discipline—employer must have “just cause” to discipline or discharge an employee is a feature of many collective agreements


Implications (proposition) of Union Implications (proposition) of Union AvoidanceAvoidanceImplications (proposition) of Union Implications (proposition) of Union AvoidanceAvoidance

• In non-union facilities, an implicit objective of many employers is to remain non-union

• Union Suppression– Involves fighting union representation– An employer may try to intimidate workers,

threaten closing or moving the plant or facility, or discriminate against union supporters Union Substitution


Implications of Union AvoidanceImplications of Union AvoidanceImplications of Union AvoidanceImplications of Union Avoidance

• Union Substitution

• Examines what unions bring to the employment relationship and tries to introduce these features into the non-union workplace

• Advocated by many HR practitioners, consultants, and labour lawyers


Implications of Union AvoidanceImplications of Union AvoidanceImplications of Union AvoidanceImplications of Union Avoidance• Features of Union Substitution

• Design satisfying jobs i.e. personally satisfying to employees

• Maximize opportunities—develop plans that maximize individual opportunities while minimizing possibility of layoffs

• Select qualified workers

• Establish fair standards of individual performance

• Train workers and managers to enable them to achieve expected levels of performance

• Evaluate based on performance

• Employee “voice” i.e. provide employees with a “voice” in the workplace

• Pay and benefits are parallel to those available in the union sector


Features of Union SubstitutionFeatures of Union SubstitutionFeatures of Union SubstitutionFeatures of Union Substitution

UnionSubstitution

EmployeesEmployeeshave “voice”have “voice”

Pay/benefitsPay/benefitsare parallelare parallel

Evaluate basedEvaluate basedon performanceon performance

MaximizeMaximizeopportunitiesopportunities

DesignDesignsatisfying jobssatisfying jobs

SelectSelectqualified workersqualified workers

Train workersTrain workers& managers& managers

Establish fairEstablish fairstandardsstandards


Managing in a Union EnvironmentManaging in a Union EnvironmentManaging in a Union EnvironmentManaging in a Union Environment

• There is increasing acceptance that labour and management must cooperate and work together in order to survive and prosper in the highly competitive global economy

There is growing evidence that organizational performance is enhanced when labour and management cooperate


Managing in a Union EnvironmentManaging in a Union EnvironmentManaging in a Union EnvironmentManaging in a Union Environment

Unions impact the HRM function:

• HR department may expand to add labour relations specialists

• Greater centralization of employee record-keeping and discipline to ensure uniformity

• Line managers lose some authority to HR

• Management has less freedom


Labour-Management CooperationLabour-Management CooperationLabour-Management CooperationLabour-Management Cooperation

• Organizational performance is enhanced when labour and management cooperate

• Cooperative methods include: – Prior consultation– Sincere concern– Training programs– Joint study committees– Third parties


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The Union-Management The Union-Management FrameworkFrameworkThe Union-Management The Union-Management FrameworkFramework

C H A P T E R

the union-management framework

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