Lecture 9: Labour Relations & HUMAN RESOURCES MANAGEMENT

Unions DR. BAHAREH ASSADI

The Labour Movement

 The American labour movement has been

characterized as being in a state of crisis and
as experiencing a membership decline so
severe and continuous that its ability to serve
as an economic and political voice for
workers is seriously threatened.

 In contrast, the Canadian labour movement

has been described as strong, dynamic,
vibrant, and capable of adapting to a
threatening environment with great flexibility
and pragmatism.
Unionization Decision

 If the union addresses issues of greater interest to employees, and is able

to address employee concerns about unionization, it is more likely to be
successful in organizing a campaign.

Workplace Factors Affecting Unionization:

a) Compensation
b) Fairness, Equity
c) Job Security
d) Working Conditions
e) Workload
f) Voice in Policymaking
g) Inadequate Managers
h) Complaint Mechanism
i) Employer Policies
 Debate Over Unions

 Unionization can significantly affect wages, working conditions and job

security of employees.

 Countries with higher rates of unionization tend to have lower economic

inequality.

 However, some studies indicate that unionized employees have lower job
satisfaction than non-union employees.

 Some argue that reduced job satisfaction are the result of unions stirring up
discontent among employees, while others argue, that unions provide a
collective voice to express concerns that otherwise remain suppressed.

 Where do stand on this issue?

 Unions

 The basic terms of any employment relationship are that workers agree to work under the
direction of an employer (with respect to place of work, hours of work, methods of work, etc.)
in return for a wage.

 If it were not for unions, workers would have to negotiate the terms and conditions of their
employment (wages, benefits, hours of work, work schedules, conditions of work etc.) as
individuals, protected only by minimum legal standards.

 If it were not for unions, individual workers would be on their own when it comes to dealing
with arbitrary and unfair treatment by employers, such as dismissal without just cause,
harassment, discrimination in hiring, promotion and layoffs, favouritism by employers and
managers in setting, assigning jobs etc.
Generational Difference

 Baby boomers, many of whom are now retiring from the workforce, can
more easily relate to the success of labour unions in achieving important
gains around equal pay for women, combating racial discrimination and
improving working conditions.

 In contrast, many members of the millennial generation hold negative

views about the relevance of unions.

 They have grown up in a society in which many of these battles have

already been won and do not see the benefit of joining a union.

 In fact, seniority rules, created from bargaining agreements that enable

access to coveted shifts and vacation time, tend to benefit older
workers more than younger members of the workforce.
 Labour Relations

 It should be noted that collective bargaining and unions do not have the same strength or
importance across Canada.

Provinces with strong union Provinces lacking union strength:

support:  Alberta
 BC  Newfoundland
 Manitoba  Labrador
 Ontario  Nova Scotia
 Quebec  Saskatchewan
 Labour Relations

 Industrial Relations:
 Study of employment in union and non-union organizations.

 Labour Relations:
 The study of all aspects of the union-management relationship including the establishment
of union bargaining rights, the negotiation process, and the administration of a collective
agreement.

 Over the past 30 years the percentage of employees who are represented by unions has
dramatically declined in both Canada and the United States.

 Approximately 30% of the Canadian workforce are union members.

Important Terms

 Collective Bargaining: Entire relationship between a union

and the employer, including the administration of a
collective agreement.

 Employee Relations: Encompasses activities and processes

aimed at maintaining a productive workplace while
meeting the needs of employees.

 Human Resources Management: A set of interrelated

activities that plans human resources needs and attracts,
selects, and maintains an organization’s employees.
 Framework for Labour Relations

 Core elements of labour relations:

Organization of employees by
unions
Negotiation of the collective
agreement
Administration of the contract
Framework for Labour Relations

1. Actors or Parties
 The three main actors in the system are unions, employers, and government. These three actors have
objectives, power and values which affect the processes they engage in and the methods they use.

2. Processes and Activities of the Parties

 The three main actors in the system engage in processes and activities such as union organizing, contract
negotiation, and enacting legislation.

3. The Environment
 The environment of labour relations is broken down into five areas. Each environment affects the other.
For example, changes in technology, which allow employers to track more information and monitor
employees, can lead to changes in the legal environment such as privacy legislation to protect
employees.
Actors

Employers

Unions

Actors Governments

Labour Relations Boards

Arbitrators
Processes & Activities

Union Organizing

Processes
Contract Negotiation

Interest Arbitration

and Conciliation and Mediation

Activities
Strikes and Lockouts

Grievance Process

Rights Arbitration

Unilateral Action by Management or Unions

Legislation and Political Activity

Outputs or Results

Collective agreement terms governing

wages, benefits, job security, union security,

Outputs management rights and other terms of

employment

or Rights arbitration decisions applying and

enforcing the collective agreement

Results Strikes and Lockouts

Legislation

Other results including impact on productivity,

job satisfaction, turnover
Terms

 Strike – The temporary refusal by bargaining unit members to continue working for the employer.

 Lockout – The temporary refusal of a company to continue providing work for bargaining unit
employees involved in a labour dispute, which may result in closure of the establishment for a
time.

 Picket – Stationing groups of striking employees, usually carrying signs, at the entrance and the
exists of the struck operation to publicize the issue in dispute and discourage people from
entering or leaving the premises.

 Boycott- An organized refusal of bargaining unit members and supporters to buy the products or
use the services of the organization whose employees are on strike in an effort to exert economic
pressure on the employer.
 Terms

 Wildcat Strike – A spontaneous walkout, not officially sanctioned by the union leadership, which may be
legal or illegal depending on its timing.

 Arbitration – The use of an outside third party to investigate a dispute between an employer and union
and impose a settlement.

 Mediation – The often voluntary use of a neutral third party who has direct input on the negotiation
process to help an organization and the union representing its employees to reach a mutually satisfactory
collective agreement.

 Conciliation – The often mandatory use of a neutral third party who has no direct input on the negotiation
process to help an organization and the union representing a group of its employees communicate more
effectively with the aim of coming to a mutually satisfactory collective agreement.
 Terms

 Distributive Bargaining – A win lose negotiation strategy where one party gains at the expense
of the other.

 Integrative Bargaining – A negotiation strategy in which the possibility of win-win, lose-win, win-
lose, and lose-lose outcomes is recognized and there is acknowledgment that achieving a
win-win outcome will depend on the mutual trust and problem solving.

 Mutual Gains (interest-based) – A win-win negotiating approach based on training in the

fundamentals of effective problem solving and conflict resolution, in which the interest of all
stakeholders are taken into account.
The Case of Bell Canada

 Bell Canada – Canada’s largest communication company.

 Provides consumers, businesses and organizations of all sizes

with solutions to all their communication needs.

 In 2001, Bell Canada determined it had as surplus of

technicians.

 The technicians were covered by a collective agreement

with the Communication, Energy and Paper Workers Union of
Canada.
The Case of Bell Canada

 Bell representatives meet with the Union and advise that employees would receive a voluntary
severance package, but have a short time to consider the option.

 Prior to presenting the severance package to the unions, Bell did not engage in union discussions
regarding the terms of the package wit Union representatives.

 Consequently, the union filed an unfair labour practice complaint with the Canada Industrial
Relations Board.

 The union was alleging that the employer had violated the Canada Labour Code by bargaining
terms and conditions of work with individual employees.
The Case of Bell Canada

The union argued The employer

that the terms argued that the
and conditions of severance
any severance packages were
package had to outside of the
be bargained collective
with the union. agreement.
Union Employer
The Decision

 The Board found that the employer had violated the code,
and that it had the obligation to negotiate the severance
package with the union.

 When employees are replaced by the collective

agreement, and the terms of employment must be
negotiated with the union.

 The golden rule to remember is  There are no individual

contracts of employment in unionized workplaces.
Additionally terms and conditions of employment must be
negotiated with the union.
 Union vs Non-Union

 In a Unionized environment, the employer must standardize the work

terms of employment for all employees belonging to a union.

 In a Non-Unionized environment, employers can alter and tailor the

employment terms and contract to be different for each employee.

 For example, although a company has the general policy for two weeks
vacation, the employer can agree to provide an employee with additional
vacation time.

 Although a company may not have a policy of working from home, the
employer can make an exception for an employee with a disability.
Answer: False Answer: True Answer: False
A non- union employee Some employers attempt to Government might pass
who has been wrongfully avoid unionization by special back-to-work
dismissed will be reinstated legislation ordering an end
paying non-union to a strike in the public
(placed back into their employees wages that are sector; however, strikes in
previous position) by the the private sector cannot
court. equivalent to the wages
paid to unionized be ended by such
legislation.
employees.
 The possibility of
reinstatement for a  Although it is
unionized employee is  The reason is that unions exceptional, a few strikes
one of the key features in the private sector have
reduce productivity and been ended by back-to-
of labour relations. profit. work legislation.
Non-Union vs. Unionized Workplaces
 Confrontation or Collaboration

 Labour relations in Canada have traditionally been adversarial in

nature.

 Distrust and confrontation mark the union-management

relationship.

 Some observers have called for a more co-operative system.

 We now have an information-based economy, which requires all

employees to become involved instead of waiting for instructions
from management.

 Canada has one of the highest strike records compared to that of

other countries.
 Magna International

The company has a business Charter of

Magna International is an auto Rights that predetermines the annual
manufacturer employing over 168,000 percentage of profits shared between
people in 45 Canadian plants (global employees, management, investors and
company 96 product development, society making every employee a share
engineering and sales centers. holder at Magna.

Frank Stronach is the founder and The charter also provides an employee
chairman of the board at Magna. hot line that allows employees with
complaints to pursue issues anonymously.

Mr. Stronach introduces his The company has monthly meetings with
management philosophy, Fair employees and shares industry information
Enterprise. and what is happening in the
organization.
 Magna International

The Canadian Auto Workers union has FFA establishes a new labour relations model that will
260,000 members in Canada now facilitate Magna employees being represented by the
UNIFOR. CAW/Unifor.

Prior to 2007, the union had attempted

In October 2007, Magna and the CAW announced that
to organize Magna employees;
they had signed a framework of Fairness Agreement
however, those efforts had not been
(FFA).
successful—only three Magna plants
had been organize.
Click here to see the terms set out by both parties:
In October 2007, Magna and the CAW http://www.magna.com/investors/press-releases-
announced that they had signed a news/news-page/2007/10/15/press-release---magna-
Framework of Fairness Agreement announces-signing-of-framework-of-fairness-
(FFA). agreement-with-canadian-auto-workers
 Magna International

The FFA provides that Magna will take steps to facilitate the Union Employer
union obtaining the support of employees.

The company agrees it will provide the union with a list of

employees, provide union representatives access to
employees during non working hours, and allow the union
to meet with employees prior to the vote on working time.

Although the agreement provides that the parties will

respect the rights of employees to choose whether to be
represented by the union, it requires Magna to encourage
employees to vote in favour of the agreement and union
representation.
Magna

 Workers at only three production plants in Canada have accepted

contracts and both sides won’t confirm whether any other operations
are close to joining the union.

 “We’re still working on it but we’re not making much progress,” CAW
national president Ken Lewenza said.

 Union insiders familiar with the talks say attention to the initiative has
waned in the last two years since the company and workers are
focusing on recovering from the deep recession and protecting their
jobs.
Employer Objectives & Processes

Objectives Processes or Methods

1. Efficiency or Productivity 1. Union avoidance and opposition
2. Control measures
2. Contract negotiation
3. Lockouts
4. Grievances and arbitration
5. Court (legal) action
6. Political activity
7. Public relations
8. Collaboration with union
9. Unilateral action
Employer Objectives & Processes

 In pursuit of efficiency employers in all sectors will pursue measures such as

outsourcing, making use of temporary workers, and adopting changes in
technology.

 When employers suffer financial hardship, they make a demand for unions to
agree to demands for reductions in wages and benefits  Concession
Bargaining .

 The employers demands may include:

o Wage cuts or freezes
o Lump-sum payments instead of wage increases
o Loss of holidays
o Suspension of cost-of-living wage increases
o New hires receive lower compensation than current workers
Employer Objectives & Processes

 Concession bargaining may take place under the threat of business closure.

 The employers know it is difficult to gain flexibility as well as placing more on other qualities than
seniority when filling job vacancies.

 For example, negotiation aimed at minimizing a wage increase would lead to conflict, while
working together with the union to reduce accidents would be collaborative.

 Employers who once favoured unions, now are considering their position based on the
competitive nature of business and globalization.
Control

 If unionization takes place, the employers best

bet is to use the collective agreement to protect
its interests such as avoiding restrictions on
outsourcing and technical changes.

 If the employer doesn’t get the terms it wants, it

may be able to lock out employees to force the
union to change its position.
NHL Lockout

 A good illustration of a lockout is the 2004-2005 lockout in the NHL.

 It was the first time a major professional sports league in North

America canceled a complete season because of a labor dispute.

 When players refused to agree to a salary cap, the league imposed

a lockout, and eventually the union backed down and greed to
salary cap and salary rollbacks.

 The employer can use the grievance and arbitration process, to

achieve its objectives.
NHL Lockout

 The lockout of the 2004–2005 season resulted in

1,230 unplayed games. The negotiating teams http://www.youtube.co
m/watch?v=RCW0VsfR9
reached an agreement on July 13, 2005, and the FM
lockout officially ended 9 days later on July 22, after
http://www.youtube.co
both the NHL owners and players ratified the m/watch?v=fBWWi19Ok
collective bargaining agreement. M4

 A Canadian public opinion poll conducted by Ipsos-

Reid near the start of the lockout found that 52
percent of those polled blamed NHL players for the
lockout, whereas 21 percent blamed the owners of
NHL teams.
2004 Incident Saskatchewan

 An incident in 2004 in Saskatchewan illustrates how employers can

use political an and public relations activity to achieve their
objectives.

 The Saskatchewan government announced it was going to amend

the province’s employment standards legislation to require
employers with more than 50 workers to allocate additional hours to
part-time employees on the basis of their length of service.

 Employers strongly opposed the legislation, and they organized a

campaign to oppose it.
2004 Incident Saskatchewan

 Employers formed an association, the Saskatchewan Business Council, which campaigned

against the proposal.

 The council organized a rally, provided a message that employers could transmit to employees,
and provided a draft letter opposing the legislation that could be sent to member of the
provincial legislature.

 The message to employees indicated that the legislation would lead to job losses.

 Letters to newspapers denounces the legislation, calling it a “job killer.”

Employer Labour Relations Strategy

 An organizations labour relations strategy refers to how the

employer chooses to deal with unionization of its employees.

 Employers can adopt a strategy ranging from acceptance to

extreme opposition.

 Wal-Mart is known as an employer that vigorously opposes unions

and has used various methods to prevent its employees from
unionizing.

 The six Waltons on Forbes' list of wealthiest Americans have a net

worth of $144.7 billion.
Wal-Mart

 2004 in Saskatchewan, a union filed an application to

represent Wal-Mart employees at the store in Weyburn.

 Wal-Mart launched a legal challenge that continued

on until 2009 when a court overturned a Labour
Relations Board decision to grant the union bargaining
rights.

 The union appealed this decision, and the legal battle

still continues.
Wal-Mart

 In 2013, Workers at Canada's only unionized Wal-Mart, in Weyburn Saskatchewan have

voted 51-5 to decertify their union.

 Although the United Food and Commercial Workers was certified as a bargaining agent
in 2008, the two parties have never reached a collective bargaining agreement.

 Last December, the Saskatchewan Court of Appeal issued a new ruling that sided with
Wal-Mart, allowing decertification votes to be counted.

 The union sought to take that decision to the Supreme Court, but its application to
appeal was dismissed.
 Wal-Mart

 http://www.youtube.com/watch?v=i0_3ZsrC6pQ

 For over a decade, Walmart workers have tried to improve their lives through collective bargaining in
Canada and the U.S.

 The unions face tremendous challenges in trying to exercise their rights, but with the assistance of United
Food and Commercial Workers Canada (UFCW) – and its 250,000-plus members – Walmart Canada
workers are making progress.

 Since 2002, over 20 different groups of Walmart workers, in several different provinces, have applied to
become UFCW Canada members, despite Walmart’s corporate and legal tactics.

 If you are a Canadian “associate” who wants to join the growing movement for change at Walmart, visit
http://www.walmartworkerscanada.ca.
Canada

Canada 1993/94:
Workers in an Ontario store joined a union, but the company managed to avoid recognition by
ensuring victory in Labour Board sponsored elections.

Pro-union workers testified that:

 Managers organised a bizarre and nationally controversial anti-union campaign, which included
creating a climate of fear against pro-union staff, getting some of the workers in that store to lie
outside in the snow forming the word 'NO' (to unions).
 Put on special anti-union video and slide shows
"things have returned to the slave-like working conditions that crew must endure every single shift that
they work”
Canada Vs. USA

 The law regulating employers and unions will be a factor affecting an employer's strategy.

 The Canadian legal environment makes it more difficult for employers to oppose unions than is
the case in the U.S.

 The following features of the Canadian legal environment make union opposition or removal
more difficult:
o certification without a representation vote in some jurisdictions
o short time periods between the certification application and a representation vote
o first contract arbitration in most jurisdictions
o mandatory union dues deduction in most jurisdictions
o protection for the jobs of strikers in most jurisdictions
Possible Employer Strategies

1. Union Opposition
This strategy involves attempting to maintain a union-free status and may include
tactics that are illegal such as dismissing union supporters.

2. Union Avoidance or Substitution

This strategy involves attempting to remain union-free by convincing employees that
they do not need a union by using tactics such as providing higher compensation.

3. Union Acceptance
This strategy involves trying to live with any union that obtains bargaining rights and
negotiating the best deal possible.
 Possible Employer Strategies

4. Union Resistance
This strategy involves a partially unionized employer attempting to limit the
spread of unions in the organization. This might involve tactics such as
extending wage increases achieved by the union to non-union employees.

5. Union Removal
This strategy involves an employer attempting to rid itself of a union. The
tactics may include illegal activity such as refusing to bargain in good faith.
 Employer Unfair Labour Practices

1. Participate or interfere with the 4. Threaten, intimidate, or coerce an employee

information, selecting or administration to compel him or her to become or refrain
of a trade union or contribute financial from becoming a member or officer or a
or other support to a union. union.

2. Refuse to employ or discriminate 5. Change the terms and conditions of

regarding the terms of employment employment during the certification process.
because of union membership.
6. Take any action against an employee
3. Impose a condition in a contract of because the employee has exercised their
employment that restrains an employee right under labour relations legislation.
form becoming a member of a union.
 Why Employees Do Not Join a Union?

Union Dues Some employees may object to joining a union because they do not want to
pay union dues. The service the union offers is not worth the fees.
Political & Social Unions have supported political parties and social causes that some employees
Activities of Unions do not agree with. Some people do not want to be associated with these
political and social movements.
Strikes Some employees may associate unions with strikes. Although a strike is actually
an exceptional event because most collective agreements are negotiated
without a strike, employees may fear the economic hardship that strikes pose.

Loyalty to Employer Some employees may feel an obligation to the employer and view joining a
union as being disloyal. Similarly, some employees who want to move into
management positions don’t want to harm their chances.
Conflict Many employees prefer to work in a cooperative setting. They feel unions create
an adversarial environment and culture.
 Why Employees Do Not Join a Union?

Merit Some employees perceive that if compensation and promotion decisions

are made on the basis of merit, they will succeed.
Protection of Lazy & Some employees feel unions protect and harbour lazy and incompetent
Incompetent Employees employees.
Flexibility Some people want to make individualized arrangement for their work and
do not want to be part of a collective agreement.
Employer Retaliation Some employees may wish to pursue unionization, but they fear that their
employer may retaliate (McDonalds and Walmart).
Job Loss Company may not meet collective agreement requirements, close shop
and outsource business elsewhere.
Lack of Opportunity to Some employees do not have an opportunity to pursue unionization even
Unionize though they would like to (younger generations, temporary workers).
How Bargaining Rights are Obtained

 A union can obtain bargaining rights in two ways:

1. By being voluntarily recognized by the employer
2. Applying to the Labour Relations Board and obtaining a certificate

Voluntary Recognition Agreement – agreement between employer and union providing that the
employer recognized the union as the bargaining agent for a group of employees. Can’t force
the employer to do this.

Certification Process – a union may obtain the right to represent a group of employees by
applying to the LRB. Once a union has been certified, it has the right to represent employees
until the Board terminates that right.

Employer must bargain in “good faith”

 Certification Process

Union conducts organizing campaign

Union Organizer
Union staff directing
organizing campaign
Union files application for certification with labour relations board

Organizing Committee Board determines:

Group of employees 1. Union status
who work on campaign 2. If application timely
to sign up union 3. Appropriate bargaining unit
members 4. If union has support required

http://www.cirb-
ccri.gc.ca/eic/site/047.nsf/eng/h_000 Board rejects application Board certifies union
92.html
Who Can Apply for Certification:
Trade Union Status

 Labour relations legislation provides that to apply for certification, an organization must be a
trade union– is an organization of workers who have come together to achieve common
goals such as protecting the integrity of its trade.

 Who can a union represent:

a) Employee Status
b) Dependent Contractors
c) Managerial Exclusion
d) Occupational Exclusions
Employee Status

 Under employee status, to be eligible for unionization, a person must be an employee, not an
independent contractor (someone engaged in his or her own business.

 The courts have developed tests to determine if an individual is an employee or an

independent contractor or not.
 Fourfold test – involves consideration of:1) degree of control over the worker
2) the ownership of the tools and equipment used to
complete the work
3) whether the worker has a chance to make a profit
4) Whether the worker may suffer a loss
http://www.mccarthy.ca/pubs/Contrac
tororEmployee.pdf
Employee Status

Labour Relations Board applies the following factors:

 If the worker can use other individuals or substitutes to complete the work, it is more likely
he or she is an independent contractor.
 If the work arrangement is structured so that the individual must personally complete the
work, it is more likely he or she is an employee.
 If the person works for several persons or firms, the provision of services to the market is an
indicator that that he or she is an independent contractor and not an employee.
 If the worker has the freedom to reject work opportunities and may complete the work
when he or she wishes, it is more likely the worker is an independent contractor.
 If the worker has duties that are the same as other person doing work who are employees,
it is more likely that he or she is an employee.
 The Employer

Factors determining the identity of the employer:

1. The party exercising direction and control over the employees performing
2. The party bearing the burden of remuneration
3. The party imposing any discipline
4. The party hiring the employees
5. The party with the authority to dismiss the employees
6. The party perceived to be the employer by the employee
7. The existence of an intention to create the relationship of employer and employee
Decertification Process

 Decertification allows employees to rid themselves of an effective union or change unions.

 The possibility of decertification helps ensure union democracy and fair representation.

 A union’s bargaining rights can be terminated on different grounds, depending upon the
jurisdiction.
 Decertification Process

 Just as employees can choose to be represented by a union, they can also choose to have their
union's representation rights cancelled.

 If the Board receives an application to cancel the certification of a union and the application is
signed by at least 45 percent of the employees in the bargaining unit, it will conduct a representation
vote within 10 days of the application.

 The Board may allow a longer period if the vote is conducted by mail. These votes are normally
conducted according to the same set of rules that apply to votes on applications for certification.

 An application for decertification cannot be made within 10 months of the date of certification of the
union (This is done in order to give the new union a fair opportunity to show it can represent the
bargaining unit).
Additional Grounds for Decertification

1. Failure to Give Notice to Bargain, or to Bargain

In some jurisdictions legislation provides that an application to decertify can be made when the
union fails to give notice to bargain or bargain (renew collective agreement).

2. Termination Where Certificate Obtained by Fraud

Legislation in some jurisdictions provides that the union may be decertified when the
certification was obtained by fraud (forging signatures of on union membership cards/any false
information recorded or reported).

3. Failure to reach agreement

With the exception of Alberta (3 years no agreement, union is decertified), the failure to reach
an agreement does not mean that the union’s bargaining rights can be terminated.