the union-management relationship week 5 _________________________

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Schwind 7th Canadian Edition

THE UNION-MANAGEMENT RELATIONSHIP

Week 5_________________________

Dr. Teal McAteer-Early


An Integrated Model of the Industrial/Labour Relations System• Inputs

• The Actors

• Conversion Processes

• Outputs


Six Perspectives on the Study of Industrial/Labour Relations

• Classical• Institutional• Neoclassical• Human Resource Management• Strategic Choice• Political Economy


Union Defined

A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement.


Collective Agreement

A contract negotiated between union and employer,outlining terms and conditions of

employment.


Why do Employees Join Unions?

Reasons for Reasons for JoiningJoining

• Job dissatisfactionJob dissatisfaction• Individual attitudes Individual attitudes

toward unionstoward unions• Perceived union Perceived union

instrumentalityinstrumentality

Reasons for Not Reasons for Not JoiningJoining

• Belief that union Belief that union membership may harm membership may harm chances for promotionchances for promotion

• Extra costs for union Extra costs for union dues or strikesdues or strikes

• Negative opinions Negative opinions toward unionstoward unions

• Fair supervisory Fair supervisory treatment/policiestreatment/policies


Attitudes Toward UnionsStatement Canada U.S. Workers who approve of unions 67% 70% Workers who believe that, as a 52% 57% whole, unions are good Nonunion employees who, if an 33% 47% election were held tomorrow, would vote for unionization Nonunion employees who feel 42% 37% that unions are not needed since workers get fair treatment now Figure 14-1


Union Goals and Philosophy

Business UnionismBusiness Unionism Social (Reform) UnionismSocial (Reform) Unionism

Practice of unionsPractice of unionsseeking to improveseeking to improvethe wages, hours,the wages, hours,and workingand workingconditionsconditionsin a businesslike in a businesslike mannermanner

A characteristic ofA characteristic of unions seeking to furtherunions seeking to further

members’ interests bymembers’ interests byinfluencing the social,influencing the social,

economic, and legaleconomic, and legalpolicies ofpolicies of

governmentsgovernments


Union Structure and Function

National/International UnionsNational/International Unions

• Many local unions are part of a larger national or international union

Local UnionsLocal Unions

• Basic unit of union organization formed in a particular plant or locality

Craft UnionsCraft Unions

• Composed of workers who possess the same skills or trade

Industrial UnionsIndustrial Unions

• Includes the unskilled and semiskilled workers at a particular location


Trends in Union Membership

• Union Growth and Decline– The number of women members has been

increasing rapidly– Unions are organizing service employers– Part-time employees less likely to be unionized– Larger workplaces are more likely to be unionized

• International Trends– A number of countries have experienced a decline

in union density


Impact of Union Representation

ProductivityProductivity

Wages & Wages & benefitsbenefits

StrikesStrikes • Most collective agreements are settled without a strike

• Higher wages, particularly for part-time employees

• More comprehensive benefits

• Relationship between unionization and productivity is subject to debate


Canadian Labour Legislation

Common Core ofCommon Core ofLabourLabour

LegislationLegislation

Right to joinRight to joina uniona union

Good faithGood faithbargainingbargaining

No strikes orNo strikes orlockouts duringlockouts during

agreementagreement

ConciliationConciliation

Prohibition ofProhibition ofunfair labour unfair labour

practicespractices


Labour Relations Boards

Boards set up in the federal and all provincial jurisdictions to administer labour relations legislation


Influences on Unionization

• External Factors– Increase in unionization activity– Major increase in the workforce is planned

• Internal Factors– Turnover and absenteeism rates are high– Employees are dissatisfied– Pay and benefits are below average– Complaint procedures are ineffective


Unfair Labour Practices

ManagementManagement UnionsUnions

• Interfering in the formation of a union or contributing financially

• Discriminating based on union membership or because employee exercises rights

• Intimidating or coercing an employee to join/not join

• Trying to bargain when the union is not the certified agent

• Persuading employees during working hours, or at the workplace

• Illegal strikes• Failing to represent

employees fairly


3 Phases of Collective Bargaining

Phase 1Phase 1

PreparationPreparationforfor

negotiationsnegotiations

Phase 2Phase 2

Face-to-face Face-to-face negotiationsnegotiations

Phase 3Phase 3

Approving Approving the the

proposed proposed agreementagreement


Mutual Gains Bargaining

• Moves away from traditional adversarial approach

• Win-win approach• Usually preceded by conflict resolution

training• Requires both labour and management to

have commitment, trust, respect and a long-term focus


Conciliation & Mediation

• Conciliation– A government-appointed third party attempts

to bring together the parties to reach agreement

– In most provinces, a strike is not permitted before conciliation efforts

• Mediation– Disputing parties voluntarily choose to

reconcile their differences through a third party


Administering the Agreement

• Grievance– Complaint that some aspect of a collective

agreement has been violated• Grievance procedures

– Most collective agreements include formal multi-step procedures to resolve grievances

• Arbitration– Used to resolve a grievance when an

acceptable solution cannot be reached


Contract Provisions• Union shop

– Employers may hire anyone they want, but all workers must join the union within a specified period

• Dues check-off– Employer required to deduct union dues

• Seniority– Length of the worker’s employment

• Discipline– “Just cause” is required to discipline or

discharge


HRM & Bargaining Unit Employees

• More than 90% have a pension plan• 79% have an orientation program• 82% have an EAP• 54% have formal performance appraisal• Unions have generally avoided

contingency compensation plans e.g. employee stock ownership plans


Implications of Union Avoidance

• Union Suppression– Fighting union representation– Example: Employer intimidates workers,

threatens to close operation• Union Substitution

– Examines what unions bring to the employment relationship and tries to introduce these features


Features of Union Substitution

UnionSubstitution

EmployeesEmployeeshave “voice”have “voice”

Pay/benefitsPay/benefitsare parallelare parallel

Evaluate basedEvaluate basedon performanceon performance

MaximizeMaximizeopportunitiesopportunities

DesignDesignsatisfying jobssatisfying jobs

SelectSelectqualified workersqualified workers

Train workersTrain workers& managers& managers

Establish fairEstablish fairstandardsstandards


Managing in a Union Environment

Unions impact the HRM function:• HR department may expand to add

labour relations specialists• Greater centralization of employee

record-keeping and discipline to ensure uniformity

• Management has less freedom to make unilateral changes


Labour-Management Cooperation

• Organizational performance is enhanced when labour and management cooperate

• Cooperative methods include: – Prior consultation– Sincere concern– Training programs– Joint study committees– Third parties

the union-management relationship week 5 _________________________

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