Labour Standards – Unionized Workplaces – Key Vocabulary

Vocabulary flashcards cover key terms related to union certification, collective bargaining, payroll’s role, union deductions, and payroll metrics.

Union

A group of employees who collectively bargain with their employer about terms and conditions of work.

Union Certification

The legal process by which a union gains recognition as the bargaining agent for a group of employees.

Labour Relations Board (LRB)

A statutory agency in each Canadian jurisdiction that regulates employer–employee relations and decides union certification applications.

Application for Certification

The formal request employees submit to the Labour Relations Board, accompanied by signed membership cards, to obtain or change union certification.

Open Period

The final three months of a collective agreement—or of each year after the third year—when a new certification application may be filed.

Bargaining Unit

The group of employees represented by a union for collective bargaining purposes.

Collective Bargaining

The negotiation process between an employer and a union to create or renew a collective agreement.

Collective Agreement

A formal, legally binding contract that sets out the terms and conditions of employment for union-represented employees.

Union Recognition Clause

A clause in a collective agreement acknowledging the union as the sole bargaining agent for the covered employees.

Management Rights

Sections of a collective agreement that affirm the employer’s authority over certain business decisions unless restricted by the contract.

Housekeeping Issues

Minor or mutually agreed changes (e.g., typo corrections) proposed during collective bargaining.

Non-Monetary Issues

Collective bargaining proposals that do not directly affect pay (e.g., hours of work, shift sign-up rules).

Monetary Issues

Bargaining proposals that affect compensation or employer costs (e.g., wage increases, benefit enhancements).

Cost of Living Allowance (COLA)

An escalator clause tying periodic wage changes to movements in the Consumer Price Index.

Consumer Price Index (CPI)

Statistics Canada’s measure of price changes for a basket of goods and services, used to gauge inflation.

Bargaining in Bad Faith

Adding or changing proposals after agendas are exchanged or otherwise refusing to bargain sincerely, contrary to labour law.

Resource Committee

A support team that researches, costs, and drafts proposals for a negotiating team during collective bargaining.

Conciliation

An informal dispute-resolution process in which a government-appointed officer assists parties in resolving outstanding bargaining issues.

Mediation

A conflict-resolution process, often following failed conciliation, where a neutral mediator proposes compromises to settle bargaining disputes.

Memorandum of Agreement (MOA)

A document outlining the tentative terms reached in bargaining, subject to ratification by both parties.

Ratification

The formal approval of a tentative collective agreement by the employer’s board and a majority of the affected employees.

Payroll Manager

The payroll professional who advises on costing, system changes, and implementation of pay-related bargaining proposals.

Retroactive Pay

Wage adjustments paid for past periods when a new agreement is settled after the previous contract has expired.

Collective Agreement Administration

The day-to-day application of contract clauses—such as overtime, vacations, and leaves—often overseen by payroll.

Union Dues

Regular payments all bargaining-unit employees must make to support union operations, as specified in the collective agreement.

Check-off

The employer’s automatic deduction and remittance of union dues from employees’ pay.

Rand Formula

A Canadian rule requiring all employees in a bargaining unit to pay union dues, even if they choose not to join the union.

Union Security Clause

The collective agreement section detailing the employer’s obligations to deduct and remit union dues and fees.

Initiation Fee

A one-time payment new employees may owe upon joining a union.

Special Assessment

A temporary union levy (e.g., to build a union hall) deducted from members for a specified period.

Before-Tax Deduction (Union Dues)

CRA permits regular union dues to reduce taxable income unless they are initiation fees, strike funds, or benefit plan contributions.

Exemption from Union Dues

Labour Relations Board-approved relief allowing employees with religious or human-rights objections to direct dues to a charity instead.

Weighted Average Hourly Rate

A payroll metric that calculates an average wage by weighting different pay rates by the number of employees in each category.

Payroll Metrics

Quantitative measures—such as error rates or average pay processing time—used to track payroll performance and costs.