Labour Relations

1. Dessler & Cole Human Resources Management in Canada Canadian Tenth Edition 16 Labour Relations

2. Introduction to Labour Relations Labour-Management Relations: ongoing interactions between: • labour unions • management Labour Union (Union): officially recognized association of employees: • in similar trade • employed in same company/industry • collective voice in dealings with management

3. Introduction to Labour Relations • Collective Agreement • Between employer and union • Terms & conditions of Employment • Collective Bargaining • Process of achieving an agreement • Bargaining Unit • Formally recognized employee bargaining group

4. Labour Relations Strategy Two Fundamental Approaches: • Union acceptance strategy • Views union as legitimate employee representative • Potentially innovative & win-win • Union avoidance strategy • Union substitution: responsive to employee needs • Union suppression: avoidance tactics

5. To provide a common set of rules for fair negotiations To ensure protection of the public interest Canada’s Labour Laws: Objectives

6. Provincial/Territorial (13 jurisdictions) 90% of labour-management relations Federal (1 jurisdiction) 10% of labour-management relations Canada’s Labour Laws: Jurisdiction

7. Labour Legislation – Commonalities • certification procedures • minimum one year collective agreements • procedures preceding legal strike/lockout • no strikes/lockouts during life of contract • contract interpretation disputes settled by binding arbitration • prohibition of unfair labour practices • labour relations boards to enforce legislation

8. Canada’s Labour Movement Today • Union Types • Business Unionism • Social unionism • Worker Eligibility • Craft and Industrial • Geographic Scope • International, National and Local • Labour Congress Affiliation • CLC, CSN, AFL-CIO

9. Labour Movement: Current Challenges • Global competition & employer militancy • Technological change • Unionization of white-collar employees • Decreased job security • Problems resolving “grievances” • Privatization of services • Innovative workplace practices

10. The Labour Relations Process • Employees seek collective representation • Union organizing campaign begins • Official recognition of union • Collective bargaining • Contract administration

11. Desire to Unionize Reasons • job dissatisfaction • lack of job security • perceived inequities in pay • unfair administration of policies • lack of opportunity for advancement • lack of influence on work-related decisions • belief that unions can improve working conditions

12. Union Organizing Process Step 5. Outcome Step 4. Organizing campaign Step 3. Formation of in-house committee Step 2. Initial organization meeting Step 1. Employee-union contact

13. Union Organizing: Employer Rights • express views on unions • state position on remaining non-union • prohibit union activity on company property/time • increase wages in normal course of business • gather employees to state company’s position if: • purpose stated in advance • attendance optional • no threats/promises

14. Union Recognition Voluntary Recognition by employer • Regular • Certification • By LRB • Automatic certification • representative vote Pre-hearing Vote if evidence of irregularities Desertification: legal process of depriving union official bargaining agent

15. Collective Bargaining • Process of establishing a formal collective between labour and management • Both must bargain in good faith • Three steps: • preparation for bargaining • face-to-face negotiations • obtaining approval for proposed contract

16. Preparation for Negotiations • gather economic data • analyze other collective agreements • audit/analysis of grievances • review existing contract/union promises • conduct wage/benefit surveys; prepare costing • contingency planning • Management only: obtain input from supervisors • Union only: obtain company financial information, input from union stewards and members; gather demographic data on members

17. Bargaining vs. Negotiating Distributive Bargaining: Purpose: To Claim Value Motivated to “beat the competition” Claim the largest “piece-of-the-pie” Win-Lose (Zero-sum) strategies & tactics Only One (or no) winner Integrative Negotiations: Purpose: To Create Value Find solutions so both parties do well Seek to “expand-the-pie” Win-Win (Non-zero-sum) strategies & tactics Mutual gains outcome potential

18. Distributive Bargaining • Goals of one party are in fundamental,direct conflict to • another party • Seeking to maximize one’s own share of resources • Resources are fixed and limited • Information giving limited to strategic advantage • Relationships usually unimportant • Typically a single deal by item

19. Distributive Bargaining Concepts Prior to Negotiating set …. Target point: optimal goal (aspiration point) Resistance point: bottom-line or point at which you will walk away (reservation point) “Asking price”: seller’s first offer (Union) “Initial offer”: buyer’s first offer (Management) Concessions: change in position; restricts bargaining range Bargaining Range: spread between resistance points Also called Zone of Potential Agreement (ZOPA)

20. The Distributive Bargaining Situation Party A – Union (Seller) Anchor Resistance Point Target Point Asking Price Aspiration Bargaining Range Aspiration Settlement Range Initial Offer Target Point Resistance Point Anchor Party B – Management (Buyer)

21. Approving Proposed Contract • Memorandum of Agreement • summary of terms and conditions agreed to by negotiators that is submitted to management and union membership for approval • Ratification • formal approval of agreement by union members • secret ballot

22. Conciliation assistance of neutral outside third party no direct input ; persuasion only required prior to strike/lockout Mediation assistance of neutral outside third party active role; direct input; can’t impose usually voluntary Third Party Assistance in Negotiation

23. Bargaining Impasses in Negotiation • strikes • strike vote • picketing • boycott • wildcat strikes • lockout • interest arbitration (final agreement imposed)

24. Collective Agreement:Typical Clauses • union recognition • union security/check off • no strikes or lockout • management rights • arbitration

25. Union Security Clause • closed shop • union shop • modified union shop • maintenance-of-membership • Rand formula (dues/agency shop) • open shop

26. Contract Administration: Seniority • refers to length of service in the bargaining unit • basis for transfer, layoff, promotion decisions when two candidates have relatively equal skill/ability

27. Contract Administration: Discipline • employee has right to grieve disciplinary action considered: • too harsh • without just cause • burden of proof on employer • must strike a delicate balance between fairness and consistency

28. Contract Administration: Grievances Typical Grievance Procedure Stage 4. Rights arbitration Stage 3. Discussion by senior management and top union officials Stage 2. Discussion by griever, HR, union steward Stage 1. Employee gives written grievance to supervisor

29. Impact of Unionization on HRM • changes organizational structure and management decision making, policy and procedure formulation • centralization of record keeping • building effective labour-management relations • institute open-door policy • extend courtesy of prior consultation • demonstrate genuine concern for employee well-being • form joint committees