Chapter 3 Flashcards
Macroeconomic Policy
This is the single most influential aspect of industrial relations. Policies that apply to the broader economy such as inflation, unemployment and growth
Deregulation
a policy to create increased competition where policies are created by the market
Free Trade Agreement (NAFTA)
Promote free trade of goods and services between countries and economic blocks
Privatization
transfer of contracting out of service to the private sector
Supply-demand framework
Labour market forces determine the supply side and compensation and conditions. The supply of labour in Canada does not meet the demand
Elasticity of Labour
influences union’s ability to raise wages without significantly affecting employment levels - wage employment tradeoff
four conditions impact wage elasticity
a) product market
b) substitution effect
c) labour intensity
4) market for substitutes
Product market
unions have more power when there is less competition in the firm’s product market
substitution effect
the easier it is to substitute, the less power labour has to raise wages
Marshal’s condition labour intensity
Labour intensity: the degree to which labour costs account for production costs
Marshal’s condition market for substitutes
the more competitive the market for substitute factors of production, the greater power management has in bargaining
Marshalls condition demand is more elastic and unions will have more power when
product market is less compeitive
it is harder to find substitutes
labour costs are a small portion of total cost
the market of substitutes is less competitive
Non-economic power
unions’ alliance with community groups
a) assist in organizing new members
b) strengthen positions in bargaining
c) support political lobbying campaigns
d) oppose plant closures
e) support strikes and other industrial actions
Supply of labour
population growth + immigration = supply of labour
non-competitive factors that have an impact on the supply of labour
Monopsony: happens when a firm is dominant in the labour market and has some control over the wages it offers
Institutional barriers to supply
lack of goverment resources and lack of supply of graduates in certain profession
unions and labour supply: apprentice programs and hiring halls
Demographic factors
postwar baby boom –> increased supply of labour and variety of challenges for organizations
Social Conditions to decline of unions
globalization
individual protection through legislation
changes in nature of work
improved HR practices
Income poverty distribution
unions usually represent the middle class
child poverty in Canada has increased in Canada
A changing workforce: more women, and more immigration
ESDC reco for an aging workforce
elimination of ace discrmination
safer workplace and healthier environment
flexible work arrangements
appropriate training opportunities
flexible retirement options
Problem with aging population
increase in poverty above the age of 55
Impact of compositional changes in union
more women
occupational shifts: unions in public admin, childcare, and home support
unions have lost members in manufacturing and technical health fields
contingent workers: part-time, temporary, flextime, compressed work week, teleworking. Unions have had less success organizing contingent workers
Work-Life Balance
desire for both employers and employees to achieve a balance between workplace obligations and personal responsibilities
Economic work-life balance
service economy
deregulation
labour shortages
contingent workers
outsourcing
Social
daycare needs
increased workloads
flexibility
absenteeism benefit costs and multitasking
Demographic
dual-earner vs single parent, aging work force
Political environment
compared to the US Canadian labour movement has maintained union density
- more labour-friendly laws
- parliamentary system of government
- political support for labour from political parties
three important social and historical differences between US and Canada
- Canadian charter rights that facilitated collective bargaining
- American firms in Canada more restricted in anti-union activities
- Canada rejected us right to work approach
