CHAPTER 14: THE UNION MANAGEMENT FRAMEWORK

union = an org w/ the legal authority to represetn workers, negotiate the terms and conditions of
employment w/ the employer, and administer the collective agreement

Why Employees Seek Union Representation

- unions frequently caused by some mgmt action/inaction that workers perceive as unfair
- collective agreement = a contract negotiated btw union and employer, outlining terms &
conditions of employment
o aka the rule book
o usually negotiated btw the local unions bargaining committee and the HR or industrial
relations department
- when new collective agreement reached need to train supervisors/managers so they
understand it
Causes of Unions
- union push explanation = asserts that some employees are pushed or forced into joining a union
b/c of employer treatment of the workforce, peer pressure by co-workers, or collective
agreement provisions requiring an employee to join if he/she wants job in question
o pulled into union b/c of the benefits of union representation
- three factors appear to be most important in decision of an individual to join a union:
o job dissatisfaction
o individual attitudes towards unions in general
o perceived union instrumentality
- workers do NOT join b/c:
o may believe union membership damages chances for promotion
o view unions as just another boss extra costs (dues), lost wages (strike)
o past experiences
Canadians View toward Unions
- about 2/3 of workers approve of unions
- but only 1/3 of nonunion employees would vote for union representation if an election held
tomorrow
Labour Unions: Goals and Structure
Union Goals and Philosophy
- business unionism = the practice of unions seeking to improve the wages, hours, and working
conditions in a businesslike manner
o recognizes that a union can survive only if it delivers a needed service to its members in
a businesslike manner
- social (or reform) unionism = a characteristic of unions seeking to further members interests
by influencing the social, economic, and legal policies of govts at all levels (municipal,
provincial, federal)
Union Structure and Functions
- local unions
o the basic unit of union organizations, formed in a particular plant or locality
o most important part of the union structure
o two major types of local unions: craft and industrial unions
craft unions = composed of workers who possess the same skills or trades
industrial unions = include the unskilled and semiskilled workers at a particular
location. Representing primarily production, maintenance, and related workers
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see figure 14-2 page 592 for structure of a typical local union
union steward usually elected by workers and helps them present problem to mgmt
if steward of an industrial or mixed local cannot help employee, problem given to grievance
committee who takes the issue to higher levels of mgmt or to HR dept
in craft unions, steward, (aka representative), usually takes the issue directly to the business
agent who is often a full-time employee of union
national & international unions
o many local unions are part of a larger union may be a national unions or an
international union
o national units based in Canada
o international usually in US
o national and international unions exist to organize and help local unions
pursue social objectives of interests to their members and frequently maintain a
staff that assists the local unions w/ negotiations, grievance handling, and expert
advice
Canadian labour congress (CLC)
o Central labour congress formed in 1956 by the merger of the Trades and Labour
Congress of Canada and the Canadian Congress of Labour
o Membership of > 2.5 million
o Five main functions
Representing Canada at the International Labour Organization
Influencing public policy at the federal level
Enforcing the code of ethics set out in its constitution
Providing services for its member unions (ex: research, education)
Resolving jurisdictional disputes among its member unions
Succession only 28% of union members belong to international unions (compared to 67% in
1960)
o Trend referred to as succession
o Has been motivated by a desire for more autonomy on the part of Canadian local sand
the devt of policies aimed at specifically addressing the needs of Cdn. workers

Trends in Union Membership

- union growth and decline
o education most highly unionized followed by utilities and public administration
o agriculture, finance, trade sectors lowest rate of unionization
o number of women members in Cdn. unions has increased from 20% (1967) to 50%
(2002)
o unions placing greater emphasis on organizing service employers
o Newfoundland highest rate for Cdn. province, followed by Quebec
o Lowest = Alberta
o Larger workplaces are more likely to be unionized
o Globally many countries have experienced a decline in union density
Ie: union members as a % of the paid non-agricultural workforce.
Why?
Decline in manufacturing sector

CHAPTER 14: THE UNION MANAGEMENT FRAMEWORK

Constraints that globalization of financial markets have put on

macroeconomic policies
Competition from developing countries w/ low labour costs, resulting in
the loss of low-skilled labour-intensive jobs in high-wage countries

The Impact of Unions Representation

- Strikes
o Most collective agreements are settled w/out the union resorting to strike action or
employer locking out the workers
o 2 categories of strikes
strikes as mistakes/misjudgment: some strikes occur b/c the parties have
uncertain and imperfect info when trying to negotiate an agreement or b/c one or
both negotiation teams are inexperienced negotiators
strikes as collective voice: perception on the part of workers that they are not
being treated fairly
o strikes less common in smaller firms and in orgs where:
workers had more autonomy
employer introduced progressive HR mgmt practices
union was in a strategically weak position
employers had a large share of the mkt
- wages and benefits
o unionized employees tend to have more comprehensive benefit plan coverage
o FT unionized = $20.29/hr (compared to $17.22 for non-unionized)
o PT unionized = $17.31/hr (compared to $10.60 for non-unionized)
- unions and productivity
o studies have shown that unions:
reduce employee turnover
increase tenure w/ firm
raise productivity or output per worker
The Legal Environment
- each province and federal jurisdiction all have their own labour relation statues
- makes dealing w/ unions difficult
- key aspects of Cdn. labour law:
o right to join a union
o good faith bargaining: both mgmt and labour have duty to bargain in good faith
o no strikes or lockouts during life of collective agreement
o prohibition of unfair labour practices: all jurisdictions have legislation prohibiting unfair
labour practices by employers and unions
o conciliation: right of a union to strike or an employer to lock out employees is delayed
until conciliation process has been exhausted
- labour relations boards (LRB)
o boards set up in the federal and provincial jurisdictions to administer labour relations
legislation
o agencies investigate violations of the law and have power to determine:
whether a person is an employee for the purposes of the law
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whether an employee is a member of a trade union
whether an organization is an appropriate bargaining agent for bargaining
purposes
whether a collective agent is in force
whether any given party is bound by it
more flexible in procedures for dealing w/ conflict compared to traditional courts of law
may rely on expert evidence instead of adhering to precedents, suggest a compromise,
even impose a solution under the parties
boards decisions cannot be appealed (except on procedural matters)
but: boards may revise, rescind, or override any of their decisions

o
o
o
o

The Collective Bargaining Process

- union organizing
o employees are not allowed to discuss unionization w/ co-workers
o authorization cards = cards that prospective union members sign to show support for
union
o union certified either on basis of card signatures or as a result of an election
- signs of organizing activity
o work envt (see figure 14-8 on page 601)
o changes in employee behaviour (see figure 14-9 on page 602)
- unfair labour practices
o = those employer or union practices that are classed as unfair by labour relations acts
o includes:
inferring in the formation of a union or contributing to it financially
discriminating against an employee b/c individual is/is not member
discriminating against employee b/c individual chooses to exercise rights
granted by labour relations statutes
intimidating or coercing an employee to become or not become a member of a
union
- obtaining bargaining rights
o may be obtained in 3 ways
voluntary recognition
unions organizes a majority of employees and employer is satisfied that
the union did not apply undue pressure in the process
through certification by a labour relations board
may take diff. forms (depending on the jurisdiction)
o in some provinces, if a substantial # of employees (btw 50-60%)
sign union cards, labour relations board may certify unit w/out
election
o if only get 30-45% to sign, election is mandatory. Secret ballot is
taken under the supervision of the labour relations board at the
employers place of business. If the union loses, another election
among the same employees cannot be held for one year. If union
wins, then employer must prepare to negotiate w/ union and
attempt to reach a collective agreement

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o in 5 provinces (Alb, BC, Newf., NovaSc, Ont) do not

automatically certify unions based on card signatures. An
election is held if there is sufficient support for the union in the
form of signed cards.
a prehearing vote
taken in cases where there are significant indications that an employer
has committed unfair labour practices to prevent unionization
union can ask an LRB to conduct a prehearing vote

Negotiating a Collective Agreement

- failure to bargain in good faith by either side can lead to unfair labour practice charges
- three overlapping phases
o preparation
o face-to-face negotiations
o follow-up activities of contract administration
- preparing for negotiations
o mgmt rights = rights reserved for mgmt that are w/in the collective agreement
often include the right to reassign employees to diff jobs, to make hiring
decisions, to decide other matters important to mgmt
o residual rights theory of mgmt = employers argue that they have the authority over all
issues not contained in the collective agreement
o most collective agreements have a mgmt right clause
o mgmt should include contract language that increases their flexibility at the workplace
ex: and other duties assigned by mgmt
- negotiating w/ the union
o discussions often start 60-90 days before the end of the present contract
o if negotiations are for a first contract begin after union is recognized by employer or
wins a certification election
o use give and take
o can have recesses
o experienced bargainers realize that the other side must achieve some of its objectives
- mutual gains bargaining
o win-win approach
o both parties work together to solve common problems
o both parties sit down at the bargaining table as equals
o engage in joint problem-solving activities
o process is usually preceded by training in conflict resolution for both employer and
union representatives
o to be successful, mutual gains enterprise needs:
high standards of employee selection
broad design of tasks and a focus on teamwork
employee involvement in problem solving
cooperation, trust
commitment to employee stabilization
investment in training & devt

CHAPTER 14: THE UNION MANAGEMENT FRAMEWORK

contingent compensation strategy that emphasizes participation, cooperation,
contribution
strong commitment from top mgmt to mutual gains concept
business strategies that support and are aligned w/ mutual gains model
approving the proposed agreement
o often final approval w/ the employer but bargaining team may have authority
o union bargaining team usually submits proposal to membership fro ratification
o if majority of members vote for the proposal it replaces the previous collective
agreem.
o If members reject it, union and mgmt bargainers reopen negotiations and seek a new
compromise
conciliation and mediation
o conciliation = a govt-appointed 3rd party attempts to bring together the parties to
reconcile their differences
in most provinces, no strike action permitted before a conciliation effort has
been made and failed
conciliators are appointed by federal or prov minister of labour
o mediation = process whereby disputing parties choose voluntarily to reconcile their
differences thru a third party

Administering the Collective Agreement

- grievance = complaint by an employee or employer that alleges that some aspect of a collective
agreement has been violated
- grievance procedures
o formal procedure outlined in the collective agreement to resolve grievances
o purpose of multi-step grievance procedure is to allow higher-level mgrs and union
representatives to look at the issue from diff perspectives and to assess the
consequences of pursuing the manner further
o typical steps in procedure: (can resolve at any time if union drops grievance or mgmt
resolves it)
preliminary discussion: aggrieved employee discusses the complaint w/
immediate supervisor w/ or w/out union representative
step 1: complaint put in writing, formally presented by the shop steward to firstlevel supervisor
step 2: chief steward takes complaint to dept superintendent
step 3: complaint submitted to plant mgr/chief administrative officer by union
plant or grievance committee
step 4: arrangements made for an arbitrator
- arbitration
o the resolution of a dispute relating to the interpretation of a clause in the collective
agreement
o arbitrators decision is final and cannot be changes or revised
o process slow, costly, legalistic
o two potential problems for labour relations practitioners: costs and unacceptable
solutions
o mgmts perspective: potential problem occurs when an arbitrator renders a decision that
is against mgmts best interest
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union security
o highest form = closed shop requires an employee to be a union member prior to
obtaining employment
o union shop = union security provision in which employers may hire anyone they want
but all workers must join the union w/in a specified period
but: employee not reqd to join union
o dues check-off requires an employer to deduct union dues at source from the wages of
an employee and remit the funds to the union
dues vary usually about 1% of earnings
o open shop = individual does not have to join the union and is not reqd to pay dues
past practice
o precedent = a new standard that arises from the past practices of either party

Public Sector Bargaining

- Public Service Staff Relations Act (PSSRA) = provides federal public servants w/ the choice to
either opt for compulsory arbitration or the right to strike
o Right to bargain for wages, hours, certain working conditions
o Most importantly: gave employees right to strike
o Allows the employer to designate certain employees as performing essential services
eliminating them the right to strike
Implications of Union Avoidance Approaches
- employers who want to remain nonunion frequently adopt either a union suppression or union
substitution approach
- union suppression - involves fighting union representation. May try to intimidate workers,
threaten closing or moving the plant/facility, or discriminate against union supporters
- union substitution approach examines what unions bring to the employment relationship and
tries to introduce some features into the nonunion workplace
o need to:
design jobs that are personally satisfying to workers
develop plans that maximize individual opportunities while minimizing the
possibility of layoffs
select workers who are well-qualified
establish fair, meaningful, and objective standards of individual performance
train workers and mgrs to enable them to achieve expected levels of
performance
evaluate and reward behaviour on the basis of actual performance
provide employees w/ a voice in the workplace
implement compensation plan where wages/salary and benefits parallel those
avail in union sector
Managing in a Union Envt
- greater centralization of employee record keeping and discipline to ensure uniformity
- line mgrs may lose some of their authority to the HR dept but responsibilities may increase
- mgmt has less freedom to make unilateral changes
- evident that organizational performance is enhanced when labour and mgmt cooperate

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relationship restructuring programs are being used b/c the traditional approach to managing
workplace conflict is too time-consuming and costly
o 3 components:
relationship audit: involves collecting info about the org, union, employees
identification of problems
development of a plan: need to get buy-in from both labour and mgmt to be
successful. Need to consider resource issues, sharing of info, developing
priorities, schedule for implementation, on-going monitoring of the success of
the plan
cooperative methods
o techniques used to improve relations btw the employer and the union and to facilitate
cooperation
o prior consultation w/ the union to defuse problems before they become formal
grievances
o sincere concern for employee problems and welfare even when mgmt is not obliged to
do so by the collective agreement
o training programs that objectively communicate the intent of union and mgmt
bargainers and reduce biases and misunderstandings
o joint study committees that allow mgmt and unions officials to find solutions to
common problems
o third parties provide guidance and programs that bring union leaders and mgrs closer
together to pursue common objectives