Chapter 3

Question 1

Macroeconomic Policy

Answer 1

This is the single most influential aspect of industrial relations. Policies that apply to the broader economy such as inflation, unemployment and growth

Question 2

Deregulation

Answer 2

a policy to create increased competition where policies are created by the market

Question 3

Free Trade Agreement (NAFTA)

Answer 3

Promote free trade of goods and services between countries and economic blocks

Question 4

Privatization

Answer 4

transfer of contracting out of service to the private sector

Question 5

Supply-demand framework

Answer 5

Labour market forces determine the supply side and compensation and conditions. The supply of labour in Canada does not meet the demand

Question 6

Elasticity of Labour

Answer 6

influences union’s ability to raise wages without significantly affecting employment levels - wage employment tradeoff

Question 7

four conditions impact wage elasticity

Answer 7

a) product market
b) substitution effect
c) labour intensity
4) market for substitutes

Question 8

Product market

Answer 8

unions have more power when there is less competition in the firm’s product market

Question 9

substitution effect

Answer 9

the easier it is to substitute, the less power labour has to raise wages

Question 10

Marshal’s condition labour intensity

Answer 10

Labour intensity: the degree to which labour costs account for production costs

Question 11

Marshal’s condition market for substitutes

Answer 11

the more competitive the market for substitute factors of production, the greater power management has in bargaining

Question 12

Marshalls condition demand is more elastic and unions will have more power when

Answer 12

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

Question 13

Non-economic power

Answer 13

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

Question 14

Supply of labour

Answer 14

population growth + immigration = supply of labour

Question 15

non-competitive factors that have an impact on the supply of labour

Answer 15

Monopsony: happens when a firm is dominant in the labour market and has some control over the wages it offers

Question 16

Institutional barriers to supply

Answer 16

lack of goverment resources and lack of supply of graduates in certain profession

unions and labour supply: apprentice programs and hiring halls

Question 17

Demographic factors

Answer 17

postwar baby boom –> increased supply of labour and variety of challenges for organizations

Question 18

Social Conditions to decline of unions

Answer 18

globalization
individual protection through legislation
changes in nature of work
improved HR practices

Question 19

Income poverty distribution

Answer 19

unions usually represent the middle class

child poverty in Canada has increased in Canada

A changing workforce: more women, and more immigration

Question 20

ESDC reco for an aging workforce

Answer 20

elimination of ace discrmination
safer workplace and healthier environment
flexible work arrangements
appropriate training opportunities
flexible retirement options

Question 21

Problem with aging population

Answer 21

increase in poverty above the age of 55

Question 22

Impact of compositional changes in union

Answer 22

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

Question 23

Work-Life Balance

Answer 23

desire for both employers and employees to achieve a balance between workplace obligations and personal responsibilities

Question 24

Economic work-life balance

Answer 24

service economy
deregulation
labour shortages
contingent workers
outsourcing

Question 25

Social

Answer 25

daycare needs
increased workloads
flexibility
absenteeism benefit costs and multitasking

Question 26

Demographic

Answer 26

dual-earner vs single parent, aging work force

Question 27

Political environment

Answer 27

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

Question 28

three important social and historical differences between US and Canada

Answer 28

• Canadian charter rights that facilitated collective bargaining
• American firms in Canada more restricted in anti-union activities
• Canada rejected us right to work approach