notes

# Collective Bargaining and Labour Relations

# Motivations

Employess would join unions for several reasons:

  • Economic gains
  • Job security
  • Fairness/equity
  • Complaint/grievance procedure
  • Voice and participation

# Role of Unions and Labour Relations

Labour unions represent workers' interests and participates in bargaining processes with employers.

Labour relations refers to a set of skills managers and union leaders can use to minimize cost of conflict and seek win-win solutions in disagreements.

Labour relations involve three levels of decisions:

  • Labour relations strategy
    • For management, this decision involves how the organization will work with unions or develop nonunion operations.
    • For unions, this decision involves whether to resist management changes or accept new kinds of labour-management relationships.
    • This decision is influenced by outside factors such as public opinion and competition.
  • Negotiating contracts
    • Contract negotiations involve decisions on pay structure, job security, work rules, workplace safety, etc.
  • Administering collective agreements
    • These decisions involve day-to-day activities in which union members and the organization may have disagreements.
    • e.g. work rules being violated or workers being treated unfairly.
    • A formal grievance procedure is usually used to resolve these issues.

# Types of Unions

  • Union members generally belong to either national or international unions.
  • Unions are traditionally characterized as either craft or industrial unions.
  • Unions affiliate with labour congresses for assistance at the national or international level. The Canadian Labour Congress has the most affiliation coverage compared to other labour congresses in Canada.

# Local Unions

Most national unions consist of several local units. Negotiation often occurs at the local level for things such as work rules and other issues that are locally determined.

In Canada there is a decline in union membership. There are several factors that seem to contribute to this:

  • Change in economic structure
    • Job growth among women and youth in service sector
    • Most union members are urban blue-collar middle-aged workers
  • Management efforts against unionization
    • Almost half of large employers said their most important labour goal is to be union free

# Impact of Unions on Company Performance

With regards to productivity:

  • Unions may decrease productivity if:
    • Limits are set on workloads
    • Production lost to union action e.g. strikes/work slowdowns
  • Unions may increase productivity if:
    • Reduce turnover by giving employees a way to solve problems
    • Emphasize pay systems based on seniority which removes incentives to compete vs to cooperate

Unions have other effects on company performance as well:

  • Management may be forced to pay greater than attention to employee needs and improve management practices
  • Unions generally have a negative effect on profits
    • Union members are paid higher than nonunion members
    • Higher union productivity does not counteract pay increases

# Goals of Unions and Management

# Management

# Primary goals

  • Increase organization profits and/or increase productivity
  • Prefer options that lower cost and raise output

# Concerns

  • Unions incur higher wages and benefits
  • Raise risk of work stoppages
  • Make managers and workers into opponents
  • Limit management power over making business decisions

# In labour relations

  • Limit increases in wages and benefits
  • Retain control over work rules and schedules

# Unions

# Primary goals

  • Obtain pay, job security, and working conditions that satisfy their members
  • Provide members with a voice in decisions that affects them

# Methods

  • Unions gather their strength through numbers. More union members means more power to the union.
  • Large unions also have the financial means to hold longer strikes.
  • Unions want to influence the way pay and promotions are determined.
    • Have pay be determined on seniority alone
      • The assumption is this pay is more objective than performance evaluations
    • Unionized workers under a particular job classification are generally paid the same rate

# Rand Formula

To survive, unions must ensure a regular flow of new members and member dues. The Rand Formula is a union security measure that enforces payment of labour union dues even if the worker is not part of the union.

  • The rationale is that all employees benefit from unionization.

The Rand formula is implemented in several ways:

  1. Checkoff provision: Employees automatically deduct union dues from employee paycheques.
  2. Closed shop: A new employee must be a union member prior to being hired.
  3. Union shop: Employees must join the union within a certain period of time after beginning employment.

# Laws and Regulations Affecting Labour Relations

The Labour Relations Code (LRC) is a set of laws that regulates the union's size and bargaining power.

Differs by province, but in BC its primary goals are:

  • Protect rights of employees to union representation
  • Guards against "unfair labour practices" e.g. retaliation, discipline, threats against employees
  • Sets rules for collective bargaining, strikes, and resolution of disputes (grievances)

The labour relations legislation has several overriding principles:

  • Maintenance of harmonious labour relations and industrial peace
    • Key rule is no strikes can occur during term of collective agreement
  • Protect employee freedom of choice
  • Maintain employer right to run business as long as no interference with above

# Union Organizing Process

  1. Membership application
    • Union representatives contact employees and invite them to sign an application for membership
    • By signing the application, the employee indicates they want the union to represent them
  2. Certification
    • When the union collects enough members, the union will apply to the appropriate LRB for certification.
    • In BC, 45% of employees in Bargaining Unit must be members.
    • "Representation Vote" is held; in BC, 55% of employees must show support for union.

# Bargaining Unit

Refers to the group of individuals that is represented by a union in collective bargaining.

  • The LRB has the exclusive jurisdiction to determine appropriate bargaining unit.
  • Requires balance to maintain bargaining rights of employees and managers.

Selection Process

  1. Industrial stability: No frequent changes in membership, prefer 1 large unit
  2. No fragmentation of work groups
  3. Community of interest
    1. Similarity in skills, duties and working conditions
    2. Similar employer structure
    3. Integration of employees involved
    4. Closeness and proximity of employees

Exclusions from Bargaining Unit

Some positions are excluded from the bargaining unit and as such will not be covered by the collective agreement:

  • Independent contractors
  • Positions exercising managerial capacity
    • Specifically those positions with power over employment (hiring, firing, wages, etc.)
  • Positions acting in confidential capacity over labour relations

Permissable Employer Actions

  • Refuse entry for non-employees
  • Refuse entry after-hours
  • Prevent union solicitation during work hours
  • Communicate about unionization & employer practices
    • Cannot threaten, intimidate or coerce employees
    • Cannot make promises based on union defeat

Limits of Union Activity

  • No right of access to employer property
  • Can apply for access if reside on employer property
  • Can make promises to employees

# Management Strategies

Employers may retaliate when they learn that a large majority of employees have signed membership applications.

Supervisors have the most direct impact on whether unionizations will go through because they have the most direct contact with employees.

What to do

  • Report any direct or indirect signs of union activity to core management
  • State company response to employees (should be coordinated with rest of company)
  • Follow effective management practices to avoid union issues altogether:
    • Deliver recognition and appreciation
    • Solve employee problems
    • Protect employees from harassment or humiliation
    • Provide business-related information
    • Be consistent when treating employees
    • Accommodate special circumstances when appropriate
    • Ensure due process in performance management
    • Treat all employees with dignity and respect

What to avoid

  • Threat employees with harsher terms
  • Interrogate employees about pro-union or anti-union sentiments
  • Promising employees with favourable terms if they forego union activity

Generally, management have four options:

  1. Union Acceptance
    • Accept inevitability of union involvement
    • Objective: negotiate best possible collective agreement
  2. Union Resistance
    • Create opposition in organizing drives of sectors of company without union operations
  3. Union Removal
    • Remove union that is already in place
    • Drag out bargaining while simultaneously increase wages and benefits for non-union workers
    • Brings high risk of strike activity
  4. Union Avoidance/Substitution
    • Mimic union benefits
    • Provide greater participation in management through joint employee-management councils
    • Alternatively match wages with unionized employees in same industry

# Collective Bargaining

Determination of terms and conditions of employment through negotiations which results in a Collective Agreement.

# Collective Agreement

  • Terms and conditions of employment that applies equally to all employees
  • Regulate aspects of day-to-day relationships between workers, unions, and employers

# What is management looking for?

  • Leave as many management rights as possible
  • Factors affecting their decision:
    • Prior experience with collective agreements
    • Grievances and arbitration decisions
    • Feedback from managers
    • Business plans
    • Economic forecasts
    • Contract settlements

# What are unions looking for?

  • Objectify and define terms of all management decisions
  • Predictability, security, and best possible terms for workers
  • Factors affecting their decision:
    • Prior experience with collective agreements
    • Grievances and arbitration decisions
    • Input from bargaining unit members
    • Economic forecast

# Terms

  • Mandatory terms
    • Minimum of one year term
    • Prohibition of strikes and lockouts
    • Provision for the arbitration of disputes
  • Voluntary terms
    • Terms not required by legislation
    • Usually things like wages, benefits, vacations, work hours and scheduling, contracting out, etc.

# Approaches to Bargaining

  • Distributive bargaining
    • Divides an "economic pie" between the members
    • Providing higher wages means employees get a larger "share of the pie" while employees get a smaller share
  • Integrative (mutual-gains) bargaining
    • Looks for win-win solutions
    • e.g. if labour costs is detrimental to an organization's performance, integrative bargaining will look to avoid layoffs in favor of work rules that improve productivity
  • Attitudinal structuring
    • Focuses on establishing trust between parties
    • Parties are mainly concerned with ensuring the other party will keep their side of the bargain
  • Intraorganizational bargaining
    • Address conflicts within union or management groups

# When Bargaining Breaks Down

# Strikes

A collective decision by union members not to work or slow down work until certain demands or conditions are met.

Strikes in BC must comply to the BC LRC:

  • At least 72 hours notice to management and LRB
  • Management not allowed to hire individuals to perform work of striking individuals

# Lockout

A decision by the employer to close a place of employment or refuse to provide work as a way to compel employees to agree to certain demands or conditions.

# Alternatives

  • Mediation
    • A third party or mediator hears the views of both sides and regulates the negotiation process
    • Has no formal authority to impose a solution
  • Conciliation
    • A third party reports the reasons for dispute, the views and arguments of both sides, and sometimes a recommended settlement
    • The parties may decline the recommended settlement
    • Usually used in disputes with government bodies
  • Arbitration
    • An arbitrator or arbitration board determines a settlement that is binding, i.e. both parties must accept the settlement

# Seniority vs. Ability

Unions aim to compensate employees based on seniority whereas management seeks to compensate based on performance.

  • Straight seniority
    • Applied to benefits (i.e. vacation days, sick leave)
    • More senior person -> more benefits
    • Sometimes applied to layoffs
      • e.g. employer must lay off in reverse order of seniority
  • Sufficient ability
    • Promotion provides emphasis on seniority then ability
    • A senior person with minimum qualifications gets the promotion
  • Relative ability
    • Person with best skill and abilities win promotion/job
    • Seniority is used in the event of ties only

# Administration of the Collective Agreement

Administration refers to carrying out the terms of the agreement and resolving any disputes over the interpretation or violation of these terms.

Grievance procedure refers to the process for resolving these conflicts. These procedures typically follow a 4-step process:

  1. Employee and union steward discusses problem with supervisor
    • In the discussion, employee and union steward decides if the problem is solved and/or whether any terms of the contract is violated
  2. Written grievance is submitted to manager or labour relations representative
    • Steward and manager discusses grievance
    • Managements sends a response in writing
  3. Union appeals grievance to top management or senior labour relations staff
    • Additional union officers may be involved
    • Decision on appeal is put into writing
  4. Union decides whether to refer unresolved grievance to arbitration

Most grievances are resolved in the early steps of the process.

# Fairness and Discipline

# Fairness

Injustice/unfairness in the workplace will lead to negative employee behaviours.

  • Three dimensions of fairness/justice
    • Distributive justice: Was the outcome appropriate and justified?
    • Procedural justice: Were procedures used to make the decision appropriate and unbiased?
    • Interpersonal justice: Were individuals treated with respect and dignity?
      • Was sufficient information provided about decisions and how it was made?

# What Behaviours Require Discipline?

Employer has the authority to discipline and discharge employees given just cause.

  • But if disciplinary procedures laid out in CA is not followed, the discipline/discharge can be reversed

# Culpable behaviour

Culpable behaviour refers to all conduct that are either blameworthy or have occurred through intentional actions.

Disciplinary action on culpable behaviour is reviewed against three questions:

  1. Is there just and reasonable cause for some form of discipline?
  2. Was decision an excessive response?
  3. If so, what lesser penalty can be substituted?

# Non-culpable behaviour

Non-culpable behaviour refers to unacceptable conduct that cannot be attributed to the fault of the employee.

  • e.g. absenteeism due to illness or incompetence

Proper discussion must be done with the employee prior to dismissal.

  • Managers must be diligent in communications with employee
  • Employer has a right to discuss the problem with the employee after an attempt to correct it has been made
  • Only if either fails then is dismissal an appropriate option

Employers must meet the following five criteria in order to dismiss an employee for non-culpable inability to do the job:

  1. Provide a definition for an objective standard of the job
  2. Clear communication of that standard to employee
  3. Supervisory discretion provided to assist employee to reach that standard
  4. Warning that continued failure to meet standard will result in dismissal
  5. Proof that employee performance was below standard

Insubordination refers to a refusal by an employee to follow a work-related order given by a person of authority.

  • Exceptions include:
    • Threat to employee safety
    • Compliance results in an illegal act

# Issues Considered When Disciplining

  • Previous record of grievor
  • Length of service of grievor
  • Was the incident an isolated event?
  • Potential provocation
  • Premeditated or spontaneous emotional event
  • Will penalty imposed cause economic hardship?
  • Were the rules of the company uniformly enforced?
  • Seriousness of event

# Forms of Discipline

Discipline refers to a procedure that corrects or punishes an employee when a rule of procedure has been violated.

A fair disciplinary process follows three rules:

  1. A clear set of rules and regulations
  2. System of progressive penalties
    • Repeated offences carry progressively harsher penalties
    • e.g. oral warning → written warning → short suspension → long suspension → termination
  3. An appropriate appeal process
Union Non-Union
Must have grievance and arbitration process Cannot suspend unless employee contract provides for it
Can suspend employees who are guilty of a misconduct (subject to it being reduced or rescinded by an arbitrator) May dismiss without notice if employee is guilty of serious misconduct (but employee can sue for wrongful dismissal)
When a union employee is dismissed they can file a grievance May dismiss an employee given reasonable notice and severance pay

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