Chapter 16: Labour Relations Flashcards
NOTE TO KALE: You power read this chapter to understand the live lecture
You only took the highlighted definitions and not indepth notes. Review deeper than usual
A labour union (or union) BLUE
an officially recognized body representing a group of employees who have joined together to present a collective voice in dealing with management
Primary goal is to obtain economic benefits and improve treatment of members
labour–management relations BLUE
refers to the ongoing interactions between labour unions and management in organizations.
Collective bargaining agreement (union contract)
Aka CBA
A formal agreement between an employer and the union representing a group of employees regarding terms and conditions of employment
Collective Bargaining BLUE
The action of bargaining
Negotiations between a union and an employer to arrive at a mutually acceptable collective agreement
govern the selection of employees for transfers, promotions, and training programs and specify the order that employees can be laid off and recalled
Bargaining Unit BLUE
The group of employees in a firm, a plant, or an industry that has been recognized by an employer or certified by a labour relations board (LRB) as appropriate for collective bargaining purposes
The primary goal of labour unions active in Canada today is to
obtain economic benefits and improved treatment for their members.
Business unionism BLUE
The activities of labour unions focusing on economic and welfare issues, including pay and benefits, job security, and working conditions
social (reform) unionism BLUE
Activities of unions directed at furthering the interests of their members by influencing the social and economic policies of governments at all levels, such as speaking out on proposed legislative reforms
labour relations (LR) strategy BLUE
A component of an organization’s HR strategy that is specific to the overall plan for dealing with unions, which sets the tone for its union management relationship
Managers in firms choosing a __________ view the union as the legitimate representative of the firm’s employees
union acceptance strategy
Managers select a __________________ when they believe that it is preferable to operate in a nonunionized environment
union avoidance strategy
Like Walmart lol
To avoid unions, companies can either adopt a ________ approach, in which they become so responsive to employee needs that there is no incentive for them to unionize
union substitution
or adopt a ________ when there is a desire to avoid a union at all costs (e.g., Walmart challenged the constitutionality of Saskatchewan’s labour laws all the way to the Supreme Court of Canada, but lost)
union suppression approach
For example, on average, union members in Canada earn ______ more per hour than nonunion workers
$5.28
Union workers also generally receive more
holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and other benefits than nonunion workers
First and probably foremost, unions seek _____ for themselves.
security
Six types of union security arrangements are possible in Canada:
1) Rand Formula
2) Closed shop
3) Open shop
4) Union shop
5) Modified union shop
6) Maintenance-of-membership arrangement
1) Rand Formula
All members of the bargaining unit pay union dues, but employees have the choice to join the union or not
- This is the most popular union security arrangement
- Requires members of the bargaining unit pay union dues
2) Closed Shop
Only union members in good standing may be hired by the employer to perform bargaining unit work
- Most restrictive form of union security
- Common in the construction industry
3) Open Shop
Union membership is voluntary, and nonmembers are not required to pay dues
4) Union shop
Membership and dues payment are mandatory conditions of employment
-Do not need to be union members when hired, they are required to join the union once they commence work or complete probation
5) Modified Union Shop
A situation where bargaining unit members at the time of certification or when the collective agreement was signed are not obliged to join the union, although they must pay dues, but all subsequently hired employees must do both
6) Maintenance-of-membership arrangement
Individuals voluntarily joining the union must remain members during the term of the contract
-Dues payment is generally mandatory for all bargaining unit members
Once an organization is unionized, the HR department is typically expanded by the addition of an ______ or section
LR specialist
In a large firm with a number of bargaining units, human resources and labour relations may form two divisions within a broader department:
Often called industrial relations or employee relations.
The labour unions in Canada can be classified according to the following characteristics:
1) Type of worker eligible for membership
2) Geographical scope
3) Labour congress affiliation
1) Type of worker eligible for membership
-All the early trade unions in Canada were craft unions
Craft union
A labour organization representing workers practicing the same craft or trade, such as carpentry or plumbing
Industrial union
A labour organization representing all workers eligible for union membership in a particular company or industry, including skilled trades people
2) Geographical scope
Can be divided into:
- international unions
- National unions
- Local unions
International unions
Labour unions with head offices in other countries (most often the United States) that charter branches in both Canada and one or more countries
3) Labour congress affiliation
A third way of distinguishing among labour unions is according to affiliation with one or another central labour organization. These central organizations include the following:
- Canadian Labour Congress (CLC)
- Confédération des syndicats nationaux (CSN
- American Federation of Labor and Congress of Industrial Organizations (AFL–CIO).
Canadian Labour Congress (CLC)
The CLC is the major central labour organization in Canada, and has over 3.3 million affiliated union members. Most international and national unions belong to the CLC, as well as all directly chartered local unions, local or district labour councils, and provincial or territorial federations of labour.
Confédération des syndicats nationaux (CSN)
(in English, this is called the Confederation of National Trade Unions (CNTU)). This organization is the Quebec counterpart of the CLC and has more than 300 000 members.
American Federation of Labor and Congress of Industrial Organizations (AFL–CIO)
The American counterpart of the CLC is the AFL–CIO. The two organizations operate independently, but since most international unions in the CLC are also members of the AFL–CIO, a certain degree of common interest exists.
Local BLUE
Group of unionized employees in a particular location
For HR managers and front-line supervisors, the union ____ are generally the most important part of the union structure
locals
Union stewards
A union member elected by workers in a particular department or area of a firm to act as their union representative
As of 2015, ____ percent of Canadian employees were unionized
31.8%
This rate has remained constant as 1999 had 30%
As a result, the rate of decline in union membership is not nearly as significant in Canada as it is elsewhere (e.g., the United States). This can be attributed to three significant issues:
1) Global competition
2) Demographics
3) Unionization of white-collar workers in Canada
Global Competition
Globalization is transforming the dynamics of labour relations in Canada such that employers are being forced to become more militant and unions are struggling to maintain their influence at the bargaining table
Demographics
The focus of union collective bargaining efforts must align with the workplace demographics. The aging of the workforce and pending labour shortage affects unions as well as HR managers
Unionization of White-Collar Employees
Difficulties in attempting to resolve grievances and lack of job security have led to increased interest in unionization among white-collar worker
Service-sector workers
such as those in retail stores, fast-food chains, government agencies, managers, and professionals (including university and college faculty) have been targeted for organizing campaigns
Canadian labour laws have two general purposes:
1) To provide a common set of rules for fair negotiations
2) To protect the public interest by preventing the impact of labour disputes from inconveniencing the public
There are a number of common characteristics in the LR legislation across Canada, which can be summarized as follows:
1) Procedures for the certification of a union
2) The requirement that a collective agreement be in force for a minimum of one year
3) Procedures that must be followed by one or both parties before a strike or lockout is legal
4) The prohibition of strikes or lockouts during the life of a collective agreement
5) The requirement that disputes over matters arising from interpretation of the collective agreement be settled by final and binding arbitration
6) Prohibition of certain specified “unfair practices” on the part of labour and management
7) Establishment of a labour relations board or the equivalent; labour relations boards are tripartite—made up of representatives of union and management, as well as a neutral chair or a vice-chair, typically a government representative.
One restriction on unions is that they are prohibited from calling or authorizing an __________
unlawful strike.
The Labour Relations Process contains ___ steps
5
5 Steps to Labour Relations process
1) Step 1: Desire for Collective Representation
2) Step 2: Union Organizing Campaign
3) Step 3: Union Recognition
4) Step 4: Collective Bargaining
5) Step 5: Contract Administration
Step 1: Desire for Collective Representation Overview
Although an employee’s time off and insurance and retirement benefits account for the largest portion of an organization’s benefits costs, many employers also provide a range of services
These include: personal services (such as counselling), job-related services (such as childcare facilities), and executive perquisites (such as company cars and planes for executives).
When workers are dissatisfied and believe that, except through collective action, they are without the ability to change the factors causing dissatisfaction, they become interested in unionizing.
Step 2: Union Organizing Campaign Brief overview
Once interest in joining a union has been aroused, the union organizing process begins
Step 3: Union Recognition brief overview
A union can obtain recognition as a bargaining unit for a group of workers in three basic ways:
(1) voluntary recognition,
(2) the regular certification process, and
(3) a pre-hearing vote.
Bargaining rights can also be terminated in various ways.
Step 4: Collective Bargaining brief overview
Collective bargaining is the process by which a formal collective agreement is established between labour and management.
Step 5: Contract Administration brief overview
After a collective agreement has been negotiated and signed, the contract administration process begins.
Based on a review of 36 research studies internationally, _____ classifications were developed to explain why individuals join unions:
three
3
3 Reasons why people join unions
1) Dissonance-based reasons
2) Utility-based reasons
3) Political and ideological reasons
1) Dissonance-based reasons
When expectations of work (e.g., work should be enjoyable and rewarding) and the experience of work (the work environment is unpleasant and pay is low) are in conflict, the desire to join a union is triggered
If dissonance is the reason to join a union, then they will only do so if they feel joining the union will fix the discomfort or frustration with the work
2) Utility-based reasons
An individual’s decision to join a union can also be attributed to a rational calculation of the costs and benefits of unionization, where individuals compare the costs and benefits of remaining nonunionized versus becoming unionized. The selection of which decision to make is largely based on the calculation of the cost and benefit analysis
3) Political and ideological reasons
An individual’s political or ideological beliefs may influence their understanding of and desire for collective versus individual negotiation of employment terms
however, research studies have made it clear that _________ alone will not lead to unionization
dissatisfaction
People older than age ___ and _____ workers are consistently likely to have a desire to join a union
60
black
HR by the Numbers: Unionization Trends in Canada
Listed below are HR metrics associated with unionization trends in Canada.
75%
of public sector employees are unionized
17%
of private sector employees are unionized
60%
of employers in a unionized environment identify wages as a current negotiation issue (wages were the most commonly identified management issue)
45%
of employers in a unionized environment identify productivity as a current negotiation issue
84%
of union representatives identify wages as a current negotiation issue (wages were the most commonly identified union issue)
47%
of union representatives identify employment security as a current negotiation issue
Once interest in joining a union has been aroused, the union organizing process begins. There are five steps typically involved in this process:
1) Employee/union contact
2) Initial organizational meeting
3) Formation of an in-house organizing committee
4) The organizing campaign
5) The outcome
1) Employee/union contact
A formal organizing campaign may be initiated by a union organizer or by employees acting on their own behalf. Most organizing campaigns are begun by employees who get in touch with an existing union
2) Initial organizational meeting
The union organizer then schedules an initial meeting with the individuals who first expressed an interest in unionization and co-workers who subsequently express their support. The aim is to identify employees who would be willing to help the organizer direct the campaign.
3) Formation of an in-house organizing committee
This committee comprises a group of employees who are dedicated to the goal of unionization and who are willing to assist the union organizer.
4) The organizing campaign
Members of the in-house committee then contact employees, present the case for unionization, and encourage as many employees as possible to sign an authorization card indicating their willingness to be represented by the union in collective bargaining with the employer.
Authorization card
A card signed by an employee that indicates his willingness to have the union act as his representative for purposes of collective bargaining
5) The outcome
There are a number of possible outcomes to a unionization campaign, including rejection by the majority of eligible employees. For a union to become the bargaining unit for a group of employees, it must be certified by a labour relations board (LRB) or receive official recognition from the employer.
Signs of organizing activity
AKA signs that the people want a union
Disappearance of employee lists or directories
More inquiries than usual about benefits, wages, promotions, and other HR policies and procedures
Questions about management’s opinion of unions
An increase in the number or nature of employee complaints or grievances
A change in the number, composition, and size of informal groups at lunch and coffee breaks
The sudden popularity of certain employees (especially if they are the informal leaders)
The sudden cessation of employee conversation when a member of management approaches, or an obvious change in employees’ behaviour toward members of management, expressed either formally or informally
The appearance of strangers in the parking lot
The distribution of cards, flyers, or pro-union buttons
Under the law, employers are granted the right to do the following:
Express their views and opinions regarding unions
State their position regarding the desirability of remaining non-unionized
Prohibit distribution of union literature on company 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; in most jurisdictions, however, once an application for certification is received by the LRB, wages, benefits, and working conditions are frozen until the application is dealt with
Assemble employees during working hours to state the company’s position, as long as employees are advised of the purpose of the meeting in advance, attendance is optional, and threats and promises are avoided (employers have no obligation to give the union the same opportunity)
A union can obtain recognition as a bargaining unit for a group of workers in three basic ways:
(1) voluntary recognition,
(2) the regular certification process, and
(3) a prehearing vote. Bargaining rights can also be terminated in various ways
Voluntary Recognition
An employer in every Canadian jurisdiction except Quebec can voluntarily recognize a union as the bargaining agent for a group of its employees
Regular Certification
The normal union certification procedure is for the union to present evidence of at least a minimum level of membership support for a bargaining unit that they have defined, in the form of signed authorization cards, to the appropriate LRB, along with an application for certification
Certification
KNOW THIS FOR MIDTERM
Procedure whereby a labour union obtains a certificate from the relevant LRB declaring that the union is the exclusive bargaining agent for a defined group of employees in a bargaining unit that the LRB considers appropriate for collective bargaining purposes
What % of support does BC require for application of certification?
British Columbia require 45 percent of the proposed bargaining unit members
Representation Vote
A vote conducted by the LRB in which employees in the bargaining unit indicate by secret ballot whether or not they want to be represented, or continue to be represented, by a labour union
Prehearing Votes
Alternative mechanism for certificate used in situations in which there is evidence of violations of fair labour practices early in the organizing campaign
Termination of Bargaining Rights
All labour relations acts provide procedures for workers to apply for the decertification of their unions. Generally, members may apply for decertification if the union has failed to negotiate a collective agreement within one year of certification, or if they are dissatisfied with the performance of the union.
Decertification
KNOW THIS FOR MIDTERM
The process whereby a union is legally deprived of its official recognition as the exclusive bargaining agent for a group of employees
How to decertify a union
The LRB holds a secret-ballot vote, and if more than 50 percent of the ballots cast (or bargaining unit members, depending on jurisdiction) are in opposition to the union, the union will be decertified
Termination on abandonment
A labour union also has the right to notify the LRB that it no longer wants to continue to represent the employees in a particular bargaining unit
The ______ is the cornerstone of the Canadian LR system
collective agreement
Steps typically involved in the collective bargaining process include:
(1) preparation for bargaining,
(2) face-to-face negotiations, and
(3) obtaining approval for the proposed contract
There are two possible additional steps:
1) First, third-party assistance is required by law when talks break down
2) The second additional step is a strike or lockout—or interest arbitration if the parties arrive at a bargaining impasse.
Preparation for Negotiations
Preparation for negotiations involves planning the bargaining strategy and process, and assembling data to support bargaining proposals
Management versus Union Negotiation Issues, 2016 - Top negotiation issues
Wages (number 1 for both parties)
- 63% managaments
- 92% union agents
Productivity
Second on managements list
Employment Security: Second on union agents list
Organizational change: third on the list for management
Health Benefits: third on the list for union agents
Face-to-Face Negotiations
Under labour relations (LR) legislation, representatives of either union or management can give written notice to the other party of their desire to negotiate a first collective agreement or renew an existing one
Location, Frequency, and Duration of Meetings
- Negotiations are generally held at a neutral, offsite location, such as a hotel meeting room, so that there is no psychological advantage for either team and so that interruptions and work distractions can be kept to a minimum
- Generally, meetings are held as often as either or both parties consider desirable, and they last as long as progress is being made
Caucus Session
A session in which only the members of one’s own bargaining team are present
Example: Having a separate hotel room
Initial Bargaining Session
The initial meeting of the bargaining teams is extremely important in establishing the climate that will prevail during the negotiating sessions that follow. A cordial attitude can help to relax tension and ensure that negotiations proceed smoothly
Generally, the first meeting is devoted to an exchange of demands (if this has not taken place previously) and the establishment of rules and procedures that will be used during negotiations.
Bargaining zone BLUE
The area defined by the 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 BLUE
A win-lose negotiating strategy in which one party gains at the expense of the other
As indicated in Figure 16.3, distributive bargaining is characterized by three distinct components:
the initial point,
the target point,
and the resistance point
Integrative bargaining BLUE
an approach that assumes that a win–win solution can be found but also acknowledges that one or both sides can be losers if the bargaining is not handled effectively
Mutual gains (interest-based) bargaining BLUE
A win-win negotiating approach based on training in the fundamentals of effective problem solving and conflict resolution, in which the interests of all stakeholders are taken into account
As mentioned previously, collective agreements must be
written documents
Memorandum of settlement BLUE
A summary of the terms and conditions agreed to by the parties that is submitted to the constituent groups for final approval
Ratification
Formal approval by secret-ballot vote of the bargaining unit members of the agreement negotiated between union and management
Third-Party Assistance and Bargaining Impasses
Legislation in all Canadian jurisdictions provides for conciliation, mediation and arbitration (Table 16.3). Although the terms are often misused interchangeably, they have quite distinct meanings.
Conciliation
the intervention of a neutral third party whose primary purpose is to bring the parties together and keep them talking so they can reach a mutually satisfactory collective agreement. The only means available to a conciliator to bring the parties to agreement is persuasion—he or she is not permitted to have any direct input into the negotiation process or to impose a settlement.
Conciliation is typically requested after the parties have been negotiating for some time and are starting to reach a deadlock, or after talks have broken down.
The aim of conciliation is to try to help the parties avoid the hardship of a strike or lockout
In all jurisdictions except Saskatchewan, _______ and _______ are prohibited until third-party assistance has been undertaken
Strikes
lockouts
Mediation
the intervention of a neutral third party whose primary purpose is to help the parties fashion a mutually satisfactory agreement.
Mediation is usually a voluntary process, typically occurring during the countdown period prior to a strike or lockout or during the strike or lockout itself.
The mediator’s role is an active one
Arbitration
involves the use of an outside third party to investigate a dispute between an employer and union and impose a settlement.
A sole arbitrator or three-person arbitration board may be involved.
Arbitrators listen to evidence, weigh it impartially and objectively, and make a decision based on the law or the contract language
Interest arbitration
The imposition of the final terms of a collective agreement
Interest Dispute
A dispute between an organization and the union representing its employees over the terms of a collective agreement
Work Stoppages
During negotiations, if both sides cannot come to an agreement, a work stoppage may occur that can be triggered by the union, employees, or management. Legally, the work stoppage may bein the form a strike, boycott, or lockout, but at times there may be illegal strikes or lockouts.
Strike
Temporary refusal by bargaining unit members to continue working for the employer
Strike vote
Legally required in some jurisdictions, a vote seeking authorization from bargaining unit members to strike if necessary
Picket
People carrying signs at the entrance and exit to publicize the issue
Boycott
Organized refusal of bargaining unit members and supporters to buy the products or use the services of the organization whose employees are currently on strike to create economic pressure on the employer
Lockout
Temporary refusal of a company to continue providing work for bargaining unit employees involved in a labour dispute, which may result to the closure of an establishment for a time
Wildcat strike
Spontaneous walkout, not officially sanctioned by the union leadership, which may be legal or illegal
Union Recognition Clause
clarifies the scope of the bargaining unit by specifying the employee classifications included therein or listing those excluded.
Union Security Clause
AKA union checkoff clause
Contract provisions protecting he interests of the labour union, dealing with the issue of membership requirements and often payments of union dues
In 2015, the majority (86 percent) of collective agreements had a duration of more than ____years.
three 3
Management Rights Clause
Clarifies the areas in which management may exercise its exclusive rights without agreement from the union, and the issues that are not subject to collective bargaining
Senoirity
Length of service in the bargaining unit
the most senior employees are the last to be laid off and the first to be recalled
Grievance
written allegation of a contract violation relating to a disagreement about its application or interpretation
Found in all collective agreements
The primary purpose of the grievance procedure is to
ensure the application of the contract with a degree of justice for both parties.
Secondary purposes of the grievance procedure is to
include providing the opportunity for the interpretation of contract language, such as the meaning of “sufficient ability,” serving as a communications device through which managers can become aware of employee concerns and areas of dissatisfaction, and bringing to the attention of both union and management those areas of the contract requiring clarification or modification in subsequent negotiations.
Secondary purposes of the grievance procedure is to
include providing the opportunity for the interpretation of contract language, such as the meaning of “sufficient ability,” serving as a communications device through which managers can become aware of employee concerns and areas of dissatisfaction, and bringing to the attention of both union and management those areas of the contract requiring clarification or modification in subsequent negotiations.
The typical first step of the __________ is the filing of a written complaint with the employee’s immediate supervisor
grievance procedure
Grievances relating to the interpretation or administration of the collective agreement are known as _______
rights disputes
The process involved in resolving such issues is known as ________
rights arbitration.
According to the textbook’s definition of human resources management, this field involves
the management of people in organizations.
Why do workers organize (KNOW THIS FOR THE MIDTERM)
- Belief that only a union can get their fair share
- Poor employee engagement (key one)
- Belief in the power of numbers
- Low morale and fear of job loss
- Union agreement and legally binding
- Protection from arbitrary whims of management
- poor communication and employee relations
- Belief in the power imbalance between management and employees
What has been the trend of unionization rates in Canada over the last few decades?
QUIZ QUESTION
Steadily decreasing, then stabilized
Which of the following industries has the lowest unionization rate?
Healthcare and social assistance
Education
Utilities
Retail trade
QUIZ QUESTION
Retail Trade
Mike has joined a union that he believes is the Canadian Labour Congress (CLC). What is true of the CLC?
QUIZ QUESTION
The CLC is an association of labour unions, not a union itself.
What is the first step in the labour relations process?
QUIZ QUESTION
Determine the desire for collective representation.
When people join a union because of a mismatch between what their expectation of work was and what the work experience was, this is known as which of the following?
QUIZ QUESTION
Dissonance-based reasons
When there is evidence that there were unfair labour practices early in the organizing campaign, a labour relations board can order a vote before holding a hearing to determine the composition of the bargaining unit. What is this known as?
QUIZ QUESTION
Pre-hearing vote
If the range of acceptable wages to a union is $22 to $26 per hour and the range of acceptable wages to management is $18 to $24 per hour, then what is the zone of agreement?
QUIZ QUESTION
$22 to $24 per hour
A company thinks that during negotiation, there can only be one winner and one loser. What approach to bargaining is this?
QUIZ QUESTION
Distributive bargaining
