Chapter
The Dynamics of
Labour Relations
Managing Human Resources
PowerPoint Presentation by Monica Belcourt, York University
and Charlie Cook, The University of West Alabama
Learning Outcomes
After studying this chapter, you should be able to:
1.
Identify and explain the federal and provincial legislation that
provide the framework for labour relations.
2.
Explain why employees join unions.
3.
Describe the process by which unions organize employees
and gain recognition as their bargaining agent.
4.
Discuss the bargaining process and the bargaining goals and
strategies of a union and an employer.
5.
Differentiate the forms of bargaining power that a union and
an employer may utilize to enforce their bargaining demands.
6.
Describe a typical union grievance procedure and explain the
basis for arbitration awards.
Copyright © 2011 by Nelson Education Ltd.
14–2
Government Regulation of Labour Relations
The Industrial Relations
Disputes and Investigation
Act
Canada Labour Code
Copyright © 2011 by Nelson Education Ltd.
14–3
Labour Relations Board
Administrating the statutory procedures for the
acquisition, transfer and termination of bargaining rights.
Hearing complaints related to unfair labour practices.
Supervising strikes and lock out votes.
Determining whether bargaining was done in good faith.
Remedying violations of collective bargaining legislation.
Copyright © 2011 by Nelson Education Ltd.
14–4
Labour Relations Process
Step 1
Step 2
Step 3
Step 4
• Workers desire collective representation
• Union begins its organizing campaign
• Collective negotiations lead to a contract
• The contract is administered
Copyright © 2011 by Nelson Education Ltd.
14–5
Why Employees Unionize
As a result of economic needs
(wages and benefits)
Dissatisfaction with managerial practices
To fulfill social and status needs
Unionism is viewed as a way to achieve results
they cannot achieve acting individually
Copyright © 2011 by Nelson Education Ltd.
14–6
Organizing Campaigns
Union/Employee Contact
Organizing Steps
Initial Organizational Meeting
Formation of In-House Committee
Application to Labour Relations Board
Issuance of Certificate by LRB
Election of Bargaining Committee and Contract
Negotiations
Copyright © 2011 by Nelson Education Ltd.
14–7
Employer Tactics Opposing Unionization
Include:
Copyright © 2011 by Nelson Education Ltd.
14–8
Figure 14.2
Employer “Don’ts” During Union Organizing Campaigns
• Attending union meetings, spying on employee-union gatherings, or
questioning employees about the content of union meetings
• Questioning present or current employees about their union sentiments,
particularly about how they might vote in a union election
• Threatening or terminating employees for their union support or beliefs
• Changing the working conditions of employees because they actively work
for the union or simply support its ideals
• Supplying the names, addresses, and phone numbers of employees to
union representatives or other employees sympathetic to the union
• Promising employees improvements in working conditions (wage increases,
benefit improvements, and so on) if they vote against the union
• Accepting or reviewing union authorization cards or pro-union petitions,
because employees’ names are listed on these documents
Copyright © 2011 by Nelson Education Ltd.
14–9
Unfair Labour Practices for Unions
Unions are prohibited from interfering with the formation
of an employer’s organization.
Unions cannot intimidate or coerce employees to
become or remain members of a union.
Unions cannot force employers to dismiss, discipline or
discriminate against non-union employees.
Unions must provide fair representation for all
employees in the bargaining unit.
Copyright © 2011 by Nelson Education Ltd.
14–10
How Employees Become Unionized
Voluntary recognition
Regular certification
Pre-hearing votes
Copyright © 2011 by Nelson Education Ltd.
14–11
Contract Negotiation
 Once the bargaining unit
has been certified by the
Labour Relations Board,
the employer and the union
must bargain in good faith
over the terms and
conditions of a collective
agreement.
Copyright © 2011 by Nelson Education Ltd.
14–12
Decertification
If the majority of employees indicate that they do not
want to be represented by the union or that
 They want to be represented by another union or
If the union failed to bargain
Copyright © 2011 by Nelson Education Ltd.
14–13
Impact of Unionization on Managers
Challenges to Management Prerogatives
Loss of Supervisory Authority
Copyright © 2011 by Nelson Education Ltd.
14–14
Structures, Functions, and Leadership of Labour
Unions
Craft unions
Industrial unions
Employee associations
Copyright © 2011 by Nelson Education Ltd.
14–15
The Canadian Labour
Congress
Types
of
Unions
International and National
Unions
Local Unions
Copyright © 2011 by Nelson Education Ltd.
14–16
Structure and Functions of Local Unions
Shop Steward
Business Agent
Copyright © 2011 by Nelson Education Ltd.
14–17
Labour Relations in the Public Sector
Legislation
Political nature of the labour management relationship
Copyright © 2011 by Nelson Education Ltd.
14–18
Types of Arbitration
Compulsory Binding Arbitration
Final-offer Arbitration
Copyright © 2011 by Nelson Education Ltd.
14–19
The Bargaining Process
Process of negotiating a collective agreement, including
the use of economic pressures by both parties.
 Typical provisions:
Copyright © 2011 by Nelson Education Ltd.
14–20
Preparing for Negotiation
Gathering bargaining data
Bargaining teams
Developing bargaining strategies
Negotiating the collective agreement
Copyright © 2011 by Nelson Education Ltd.
14–21
The Bargaining Process
Bargaining Zone
Interest-based Bargaining
Copyright © 2011 by Nelson Education Ltd.
14–22
Highlights in HRM 14.7
Items in a Collective Agreement
Typical clauses will
cover:
Progressive clauses will cover:
• Union security
• Wages
• Seniority
• Grievance
• Transfers
procedures
• Pensions and
• Vacations
benefits
• No strike/no lockout • Discipline
clause
• Outsourcing
• Holidays
• Overtime
• Work schedules
• Safety procedures
• Management rights
• Severance pay
• Employee access to records
• Limitations on use of
performance evaluation
• Elder care leave, child care, workfamily balance provisions
• Flexible medical spending
accounts
• Protection against hazards of
technology equipment
• Limitations against electronic
monitoring
• Bilingual stipends
• Domestic partnership benefits
Copyright © 2011 by Nelson Education Ltd.
14–23
Management and Union Power in Collective
Bargaining
Bargaining Power
Union Bargaining Power
Management Bargaining Power
Copyright © 2011 by Nelson Education Ltd.
14–24
Union Power in Collective Bargaining
Boycott
Our
Employer
This Union
On Strike
Striking
Copyright © 2011 by Nelson Education Ltd.
Boycotting
Picketing
14–25
Employer Power in Collective Bargaining
Management methods for applying
economic pressure during bargaining
Operating during the strike
Locking out workers
Hiring replacement workers, where
allowed
Stock piling goods
Copyright © 2011 by Nelson Education Ltd.
14–26
Resolving Bargaining Deadlocks
Mediators
Arbitrators
Copyright © 2011 by Nelson Education Ltd.
14–27
The Collective Agreement
Defined Rights
Copyright © 2011 by Nelson Education Ltd.
14–28
Union Security Agreements
Dues Checkoff
“Shop” Agreements
 Closed shop
 Union shop
 Agency shop
 Open shop
Copyright © 2011 by Nelson Education Ltd.
14–29
Administration of the Collective Agreement
Negotiated grievance
procedures
Copyright © 2011 by Nelson Education Ltd.
14–30
The Grievance Procedure in Action
Initiating the formal
grievance
Grievance resolution
Copyright © 2011 by Nelson Education Ltd.
14–31
Grievance Arbitration
Rights arbitration
The decision to arbitrate
The arbitration process
Copyright © 2011 by Nelson Education Ltd.
14–32
The Arbitration Hearing
The arbitrator declares the hearing open and obtains the
submission to arbitrate.
Parties present opening statements.
Each side presents its case using witnesses and
evidence; witnesses can be cross examined.
Parties make closing statements.
Arbitrator closes hearing and designates date and time
for rendering the award.
Copyright © 2011 by Nelson Education Ltd.
14–33
The Arbitration Award
Four factors arbitrators use to decide cases:
Copyright © 2011 by Nelson Education Ltd.
14–34
A
• Too long
• Cumbersome
and costly
B
Problems
with
Grievance
Arbitration
C
D
E
Copyright © 2011 by Nelson Education Ltd.
• Fear of
retaliation
• Unions own
the process
• Limited by collective
agreement
14–35