Industrial Relations Flashcards
Strike
An action by workers in which they cease to perform work duties and do not report to work
Precarious Employment
Employment with limited security, lower wages, and less protection
HRM
The study of the employment relationship between employers and individual employees
Employee relations
The study of the employment relationship between employers and individual employees usually in non-union settings
Industrial Relations
The study of employment relationships and issues, often in unionized workplaces
Labour relations
The study of employment relationships and issues between groups of employees (usually in unions) and management, known as union-management relations
Union
A group of workers recognized by law who collectively bargain terms and conditions of employment with their employer
Collective Agreement
A written document outlining the terms and conditions of employment in a unionized workplace
Collective Bargaining
The process by which management and labour negotiate the terms and conditions of employment in a unionized workplace
Gig Economy
over 20% of Canadians are precariously employed, about 60% being women. Less skilled occupations. Caused by low demand for labour and high unemployment
Dunlop’s Industrial Relations System Model
Includes four key features: actors, shared ideology, contexts, and web of rules
Actors
Specialized government agencies, hierarchy of managers and their reps, hierarchy of workers and their reps.
Shared Ideology
Set of ideas and beliefs held by the actors. Helps to bind or integrate the system
Contexts
Environmental factors that influence actors including market/budget constraints, workplace and work community constraints, distribution of power in the larger society
Web of rules
Outlines the rights and responsibilities of the actors (procedural, substantive, distributive)
Criticisms of the Dunlop model
-Descriptive
-lacks ability to predict outcomes/relationships
-underestimates importance of power and conflict in employment relationship
-is static
-cannot explain rapid decrease in unionization, especially in U.S.
Craig’s Industrial Relations System Model
Developed to explain the Canadian context for industrial relations (inputs–> processes –> outputs = feedback loop)
External inputs in Craig’s model
legal (common law, statutory law, collective bargaining law), economic (product/service market, labour market, money market, tech), ecological (climate, natural resources, physical environment), political (legislative action, executive action), Sociocultural (values)
Actors in Craig’s model
labour, employers & associations, government & associated agencies, end users
Internal inputs in Craig’s model
Values, goals, strategies, power
Conversion Mechanisms in Craig’s model
Processes actors use to convert internal and external inputs into outputs. Collective bargaining grievances, day-to-day relations, third-party dispute resolution interventions (mediation, arbitration, conciliation etc.), joint committees, strikes/lockouts
Outputs in Craig’s model
employer outcomes, labour outcomes, worker perceptions, conflict & conflict resolution
Interdisciplinary field view of industrial relations
Economics, law, history, sociology, psychology, political science. Results in different views of IR
Neoclassical view of IR
grounded in economics, sees unions as an artificial barrier to the free market
Pluralist and institutional view
View of IR stressing the importance of institutions and multiple actors in the employment relationship. Sees labour unions as a countervailing force that attempts to balance the interests of employers and employees (predominant view in Canada).
Human resources/strategic choice view of IR
Movement away from unionization. Link human resources strategies and practices to the firm’s business strategy
Political economy view of IR
Based in the fields of sociology and political science. Stresses inherent conflict between labour and management.
Business unionism
Focuses on improving wages and working conditions of its members
Workplace rights
Refuse unsafe work, overtime, minimum wage, freedom from discrimination
Nine-hour movement
Canada’s first mass-worker movement in 1872. Mass meetings were held in many cities including Hamilton, Toronto, Montreal, involving workers across many crafts & industries. Laid the foundation for many elements in labour standards today.
New model unionism
Trade or craft-based union; all members performed the same specialty. Gave the union control over the supply of labour. Negotiated solutions rather than taking strike action.
Trade union act (1872) and amendments to criminal law amendment act (1872)
changes brought by government of John A. Macdonald, no longer conspiracy or a crime to join a union, penalities for striking, foundation for the birth of a formalized Canadian labour movement.
AFL (U.S.)
-formed in 1886
-skilled workers
-three core values: exclusive jurisdiction (unions should represent only one craft), business unionism, political nonpartisanship (should not be aligned with one political party)
Knights of labour
-formed in 1969
-skilled + unskilled workers
-more radical in nature, sought one big union, believed in cooperatives, owned by union members, opposed strikes
-existed for short period of time
CLU (Canada)
Open jurisdiction (unions for skilled and unskilled workers), social unionism (priorities beyond economic welfare and promoted social change ex. end child labour), agitated for legislative change
Industrial disputes investigation act (IDIA) 1907
Cornerstone of Canadian labour law, required the use of third-party intervention prior to a strike
Wagner act (1935)
aka national labour relations act, independent agency to enforce rights of employees to bargain collectively rather than to mediate disputes
Committee of industrial organization (1935)
CIO splits from AFL on craft/industrial
P.C. 1003 (1944)
patterned on Wagner act, mechanism for workplace disputes during life of collective agreement, conciliation procedures prior to a strike
Rand Formula
everyone in workplace has to pay union dues even if not using union
Three trends in the future of unionization
movement toward larger unions, social unionism, global labour movement
Macroeconomic policy
A policy that applies to economy-wide goals such as inflation, unemployment, and growth (most important influence on IR)
Deregulation
A policy designed to create more competition by allowing prices to be determined by market forces
Free trade agreements
Promote free trade of goods and services between countries or economic blocs
Privatization
Transfer or contracting-out of services to the private sector
The labour market
non-economic sources of power, supply and demand framework, elasticity of supply and demand, labour power
Supply and demand framework
Labour market forces determine employee compensation and conditions
Shape of the demand curve
Influences union’s ability to raise wages without significantly affecting employment levels
Four conditions that impact wage elasticity
Product market, substitution effect, labour intensity, market for substitutes
Labour power and Marshall’s conditions: Product market
Unions will have more power when there is less competition in the firm’s product market
Labour power and Marshall’s conditions: substitution effect
the easier it is to substitute capital for labour, the less power labour will have to raise wages
Labour power and Marshall’s conditions: labour intensity
degree to which labour costs account for production costs
Labour power and Marshall’s conditions: market for substitutes
the more competitive the market for substitute factors of production, the greater the bargaining power of management
Labour power and Marshall’s conditions: demand is more elastic when
product markets are less competitive, it is harder to substitute labour for capital, labour costs are a small proportion of total costs, the market for subs is less competitive
Noneconomic sources of union power
unions have successfully forged alliances with community groups to assist in organizing new members, strengthen positions in bargaining, support political lobbying campaigns, oppose plant closures, support strikes
Supply of labour
population growth + immigration
Monopsony
Happens when a firm is dominant in the labour market such that it has some control over the wages offered
Institutional barriers to supply
Lack of government resources resulting in a lack of supply of graduates in a certain profession
Unions and labour supply
institutional factor that has an impact on the supply of labour
Factors that may have contributed to the decline of unions
globalization and pressures to be competitive, more individual protection under employment laws, changes in the nature of work, improved HR practices
Labour and employment relations challenges
demographic, economic, social, work-life balance
Work-life conflict
economic factors (service economy, deregulation, labour shortages, contingent workers, outsourcing), Social (daycare needs, increased workloads, job insecurity, flexibility, absenteeism, benefit costs, multitasking), demographic (dual-earner & single parent families, aging workforce)
Certification
Recognition of a union to be the legal bargaining agent of a group of employees by the labour board
Two key elements of the certification process
definition of the bargaining unit, unfair labour practices