HR Week 11

Labour union (or union)

officially and legally recognized association of jobs practising a similar trade or employed in the same company or industry who have joined together to present a united front and collective voice in dealing with management

Labour–management relations

the ongoing interactions between labour unions and management in organizations.

Collective bargaining agreement (union contract)

is a formal agreement between an employer and the union representing a group of employees regarding terms and conditions of employment.

Collective bargaining

is negotiations between a union and an employer to arrive at a mutually acceptable collective agreement.

Bargaining unit

is the group of employees in a firm, a plant, or an industry that has been recognized by an employer or certified by a labour relations board (L R B) as appropriate for collective bargaining purposes.

Business unionism

are the activities of labour unions focusing on economic and welfare issues, including pay and benefits, job security, and working conditions

Social (reform) unionism

are the activities of unions directed at furthering the interests of their members by influencing the social and economic policies of governments at all levels, such as speaking out on proposed legislative reforms.

Union acceptance strategy

views unions as legitimate representatives of employees

Union avoidance strategy

believes it is preferable to operate a nonunionized environment.

Union substitution approach

treats employees so they have no incentive to unionize

Union suppression approach

avoids unions at all costs.

Why Do Workers Organize?

Better pay, working conditions, more holidays, sick and unpaid leave, insurance, disability and other benefits.

• Belief that only a union can get them their fair share.

• Protection from arbitrary whims of management.

• Low morale and fear of job loss

Poor communication and employee relations.

• Union agreements are legally binding.

• Belief in the power imbalance between management and employees and the in the power of numbers.

• Poor employee engagement.

Rand formula

when all members of the bargaining unit pay union dues, but employees have the choice to join the union or not

Closed shop

when only union members in good standing may be hired by the employer to perform bargaining unit work

Open shop

when union membership is voluntary, and non-members are not required to pay dues

union shop

where membership and dues payment are mandatory conditions of employment

Modified union shop

a situation where bargaining unit members at the time of certification or when the collective agreement was signed are not obliged to join the union, although they must pay dues, but all subsequently hired employees must do both.

Maintenance-of-membership

individuals voluntarily joining the union must remain members during the term of the contract.

Impact of Unionization on H R M

Collective agreements result in changes in H R M.

Responsibilities may be divided into industrial relations

or employee relations.

• Management has less freedom to make unilateral

decisions.

– Required to produce written records or documentation.

• Increased responsibilities for H R.

– Ensure H R policies are consistent with the terms of

the collective agreement.

– Greater centralization of records

Craft union

traditionally, a labour organization representing workers practising the same craft or trade, such as carpentry or plumbing

Industrial union

a labour organization representing all workers eligible for union membership in a particular company or industry, including skilled trades people

Labour Union Classifications in Canada

1. Type of worker eligible

2. Geographical scope

3. labour congress affiliations with central labour organziation (canadian labour congress)

Local

a group of unionized employees in a particular location

The union steward

a union member elected by workers in a particular department or area of a firm to act as their union representative.

Causes of decline

• Decrease of employment in highly unionized industries.

• More effective H R practices in nonunionized firms.

Causes of upward trend:

Global competition.

– Demographics – labour shortages.

– Unionization of white-collar employees

Canada’s Labour Laws

Purposes:

– Provide common set of rules for fair negotiations.

– Protect public interest by preventing impact of labour

disputes from inconveniencing the public

Labour relations legislation

Sets union certification, strike and lockout procedures.

– Set minimums for collective agreements.

– Set requirements for binding arbitration in disputes.

– Prohibit unfair practices by labour and management.

– Requires establishment of labour relations boards

Labour relations process

1. Desire for collective representation

2. Union Organizing Campaign

3. Union Recognition

4. Collective Bargaining

5. Contract Administration

Dissonance-based reasons for collective representation

The desire to join a union due to a conflict between expectations of work and work experiences

Utility-based reasons

for collective representation – A

decision to join a union based on a rational calculation of

the costs and benefits of joining a union

Political and ideological reasons

An individual’s beliefs

may influence their understanding of and desire for

collective vs. individual negotiation of employment terms

Union Organizing Campaign

1. Employee/union contact.

• A formal organizing campaign may be initiated by a union organizer or by employees.

2. Initial organizational meeting.

3. Formation of an in-house organizing committee.

4. The organizing campaign.

• An authorization card is a card signed by an employee that indicates the person’s willingness to have the union act as their representative for purposes of collective bargaining.

5. The outcome.

Employer Response to Organizing Campaign

Campaign to counteract union drive.

– Inform supervisors what they can and cannot say.

– Obtain background information about union.

– Communication strategies to remind employees about

company’s good points

Employers have the right to:

Express their views on unions; prohibit distribution

of union literature on company property.

▪ Increase wages, make promotions, or other H R actions

Signs of Organizing Activity

Low employee morale

• Increased complaints

• Increased questions about policies, wages, and benefits

• Employees huddle frequently, but become silent around supervisors

• Heated discussions and the development of new relationships

• Sudden shifts in specific employees’ popularity

• New vocabulary emerges

• Prolonged meal and rest breaks

• Increased employee congregation after hours

• Increased exchange of paperwork among employees

Voluntary recognition

employer voluntarily recognizes union; fairly rare

Regular certification

union demonstrates high level of support; L R B grants certification

Union certification

the procedure whereby a labour union obtains a certificate from the relevant L R B declaring that the union is the exclusive bargaining agent for a defined group of employees in a bargaining unit that the L R B considers appropriate for collective bargaining purposes.

Prehearing votes

an alternative mechanism for certification used in situations in which there is evidence of violations of fair labour practices early in the organizing campaign.

Decertification

the process whereby a union is

legally deprived of its official recognition as the

exclusive bargaining agent for a group of employees

Collective Bargaining

Stage 1: Preparation for Negotiations

Stage 2: Face-to-Face Negotiations

Stage 3: Obtaining Approval for the Proposed Contract

bargaining zone

the area defined by the

bargaining limits (resistance points) of each side in

which compromise is possible, as is the attainment

of a settlement satisfactory to both parties

Distributive bargaining

a win–lose negotiating strategy in which one party gains at the expense of the other

Integrative bargaining

negotiating strategy in

which the possibility of win–win, lose–win, win–lose,

and lose–lose outcomes is recognized, and there is an

acknowledgement that achieving a win–win outcome

will depend on mutual trust and problem solving

Ratification

the formal approval by secret-ballot vote of the bargaining unit members of the agreement negotiated between union and management

Mutual gains (interest-based) bargaining

a win–win negotiating approach based on training in the fundamentals of effective problem solving and conflict resolution, in which the interests of all stakeholders are taken into account.

Memorandum of settlement

is a summary of the

terms and conditions agreed to by the parties that is

submitted to the constituent groups for final approval

Conciliation

the often mandatory use of a neutral third party who has no direct input on the negotiation process to help an organization and the union representing a group of its employees communicate more effectively, with the aim of coming to a mutually satisfactory collective agreement

Mediation

the often voluntary use of a neutral third party who has direct input on the negotiation process to help an organization and the union representing its employees reach a mutually satisfactory collective agreement.

Arbitration

the use of an outside third party to investigate a dispute between an employer and union and impose a settlement.

Interest arbitration

the imposition of the final terms

of a collective bargaining agreement

Interest dispute

dispute between an organization

and the union representing its employees over the

terms of a collective agreement

strike

is the temporary refusal by bargaining unit members to continue working for the employer

strike vote

legally required in some jurisdictions, is

a vote seeking authorization from bargaining unit

members to strike if necessary. A favourable vote does

not mean that a strike is inevitable

picket

the stationing groups of striking

employees, usually carrying signs, at the entrances

and exits of the struck operation to publicize the issues

in dispute and discourage people from entering or

leaving the premises

boycott

an organized refusal of bargaining unit

members and supporters to buy the products or use

the services of the organization whose employees are

on strike in an effort to exert economic pressure on the

employer

lockout

temporary refusal of a company to

continue providing work for bargaining unit employees

involved in a labour dispute, which may result in

closure of the establishment for a time

wildcat strike

spontaneous walkout, not

officially sanctioned by the union leadership, which

may be legal or illegal, depending on its timing

union recognition clause

clarifies the scope of

the bargaining unit by specifying the employee

classifications.

▪ Included and excluded

union security clause

is the contract provisions

protecting the interests of the labour union, dealing

with the issue of membership requirements and often

the payment of union dues.

Copyright

Seniority

the length of service or employment of the

individual employee with a specific employer

Discipline

collective agreements restrict an

employer’s right to discipline employees by requiring proof

of just cause for the disciplinary action imposed. Since just

cause is open to different interpretations, disciplinary

action is a major source of grievances

grievance

written allegation of a contract

violation filed by an individual bargaining unit member,

the union, or management

Rights dispute

disagreement between an

organization and the union representing its employees

regarding the interpretation or application of one or

more clauses in the current collective agreement

Rights arbitration

the process involved in the

settlement of a rights dispute.

– A written arbitration award is issued after most rights

arbitration cases, indicating that the grievance has

been upheld or overturned. It is also possible for an

arbitration award to substitute a penalty that is more or

less severe than the one proposed by union or

management.