Chapter 9: Collective Bargaining and Labour Relations

Role of Unions and Labour Relations

Unions: Organizations that represent employees’ interests and negotiate with employers.

Labour relations: The process of managing the relationship between employers and unions to reduce conflict and reach win-win agreements.

Who some of Canad'’s largest unions

Public Sector: CUPE & PSAC

Private sector: Unifor & UFCW

Canadian Labour Congress (CLC): presenting 3 million+ workers. It supports unions through research and expertise on issues like pay and benefits, retirement security, health and safety, and equality

Union Density 2000 – 2024

Union density in Canada is high and stable in the public sector, much lower and declining in the private sector, resulting in a gradual overall decline.

Types of Unions & affiliations

Craft unions: Represent workers with the same skill or trade (e.g., electricians).

Industrial unions: Represent workers in the same industry, even if they have different jobs.

Canadian Labour Congress (CLC): presenting 3 million+ workers. It supports unions through research and expertise on issues like pay and benefits, retirement security, health and safety, and equality

Union locals are the basic unit of a union that represent workers at a specific workplace or location. They negotiate and administer collective agreements, and most day-to-day interaction between labour and management occurs at the local level.

Why are people steering away from joining unions

Unionization has declined due to changes in the economy, especially growth in non-union service jobs. Employers also try to control costs due to global competition, reducing reliance on higher-paid union workers. Improved HR practices and government regulations now provide some protections unions once fought for.

Labour Relations Decisions: 3 Levels

Labour relations strategy: Management—how to work with unions or develop (or maintain) non-union operations

Negotiating collective agreements: Decisions about pay structure, job security, work rules, workplace safety, and other issues

Administering collective agreements: Day-to-day activities which may involve handling disagreements

What are the additional Union Goals & Provisions

Seniority-Based Decisions

Decisions about promotions, layoffs, or recalls based on length of service, viewed as objective and fair.

---

Social Unionism

Union activity aimed at influencing government social and economic policies, not just workplace issues (e.g., universal drug coverage).

---

Union Security

Rules that ensure employees who benefit from union representation contribute to the union, to prevent “free riders.”

• Rand Formula: Employees do not have to join the union but must pay union dues.

• Checkoff Provision: Union dues are automatically deducted from employees’ pay.

• Closed / Union Shop: Employees must join the union (or agree to join) to be hired or remain employed.

Impact of Unions on Company Performance

Decrease productivity:
Unions may reduce productivity due to strict work rules, workload limits, and production lost during strikes or work stoppages.

Increase productivity:
Unions can increase productivity by reducing turnover, encouraging cooperation through seniority-based pay, and pushing employers to improve management practices.

UFCW and Uber

In 2022, UFCW and Uber Canada reached a representation agreement covering about 100,000 Uber workers. This is not unionization, but provides advocacy and representation, such as help with account disputes or de-activation.

This advocacy has helped drive provincial reforms for app-based workers, including minimum pay standards, notice before removal, benefits, and workers’ compensation coverage.

Features of Labour Legislation

Labour laws explain how unions are certified and require employers to recognize and bargain with them fairly. These laws also control dues, strikes, and unfair practices.

What is Collective Bargaining

the negotiation between union representatives and management to arrive at an agreement defining conditions of employment

Typical Collective Agreement Provisions

Collective agreements cover five main areas:

• the rights of unions and management

• how work is organized

• how labour relations issues are handled

• training and education

• employees’ working conditions.

What happens if bargaining brakes down

Strike: Collective decision by union members not to work or to slow down until demands or conditions are met

Lockout: Closure of a place of employment or refusal of the employer to provide work to compel employees to agree to demands or conditions

Unionization at Starbucks Canada

Starbucks workers in Canada began unionizing to seek better job security, scheduling stability, wages, and health and safety, with the first store unionized in Victoria in 2020. As union drives spread across several provinces, Starbucks emphasized its positive workplace culture and benefits, but labour boards found the company engaged in anti-union conduct, including intimidation and store closures, highlighting tension between employee organizing rights and employer resistance.

Union Certification at Amazon Canada (Quebec)

Workers at Amazon’s Laval (DXT-4) warehouse successfully unionized after a long campaign, despite allegations of employer interference, and the union was certified by Quebec’s Labour Tribunal in 2024. Shortly after bargaining began, Amazon announced the closure of all Quebec warehouses, raising concerns about union resistance versus cost-cutting justifications.

Alternatives to Strikes & Lockouts

Mediation: Mediation is the least formal option, where a neutral third party helps both sides communicate and negotiate.

Conciliation: Conciliation is more formal as the conciliator may issue a public report or recommendation, which can pressure both sides to settle, but it is not binding.

Arbitration: Arbitration is the most formal option, where a neutral arbitrator makes a binding decision that both sides must accept.

Canada Post Layoff Blunder

During a national strike in Nov 2024, Canada Post issued temporary layoff notices to workers, which the union said was illegal and intimidation. The Labour Board quickly mediated a settlement, reversed the layoffs, and confirmed Canada Post should not issue layoff notices during a strike.

Explain Collective Agreement Administration

• Collective agreement administration is the day-to-day process of applying the contract and handling any disputes.

• Disputes are handled through a grievance procedure, which may end in arbitration if not resolved.

Labour–management cooperation

• Focuses on collaboration instead of conflict because it leads to better outcomes for both sides.

• It often includes employee involvement in decisions, joint committees, broader job roles, and sharing business information.

Talking/Sharing Circles

• Talking/Sharing Circles are an Indigenous practice where people sit in a circle and take turns speaking respectfully so everyone is heard.

• They are used to build trust, understanding, and cooperation, often guided by teachings like the Seven Grandfather Teachings and practices such as smudging to set a respectful tone.

even Grandfather Teachings

The Seven Grandfather Teachings are core Indigenous values that guide how people should live and treat others.

1. Wisdom – Use knowledge wisely

2. Love – Care for others unconditionally

3. Respect – Honour all people and life

4. Bravery (Courage) – Do what is right, even when it’s hard

5. Honesty – Be truthful in your words and actions

6. Humility – Know you are not above others

7. Truth – Live all teachings together