Industrial Relations-Lecture 2

The Legal Environment

Legislation
1872-Trade union act
Provided first legal recognition for unions
Employers did not welcome the notion and were still hostile
1907-Industrial Disputes Investigations Act (IDIA)
The beginning of advent of industrial unionism- all workers in 1
industry are organized
1935-The Wagner Act
Created in the US to protect the right of US workers
Dealt with the conflict between unions as workers could belong
to more than 1 union
Protected under federal law-the right to organize unions for the
purpose of collective bargaining and the right to strike
1944-The Constitution Act (Canadas version of the Wagner Act)
Features include:
o Labour boards was established to support certification of
unions
o Unions that were granted recognition by the labour board
could represent all employees in a bargaining unit
[EXCLUSIVITY PRINCIPLE]
Labour Board
Certification/de-certification
Deal with unfair labour practices
Have the power to grant a union weather its wanted to not
Illegal strikes and lockouts
Constitution Act (Wartime Labour Relations Regulations) 1944
Introduced by the Prime Minister William Lyon Mackenzie King
Pros
o Unions had guaranteed financial support
o Rand formula- means that workers are required to pay a
union dues in exchange for the privilege of collective
bargaining
o Unions were now legally recognized by federal law as a
legal entity for negotiating work terms
o Workers won the right to share in the gains in productivity
and wages (15% wage premium, makes more money then
the average employee)

Cons
1. Grievance procedures shifted power away from
unions/workers to lawyers/ arbitrators.
2. Unions became more bureaucratic and less radical
More social reform
Dealing with bread and butter issues
3. Employees had to agree to Taylor working conditions and
had to participate in achieving higher productivity in
exchange for a higher wage
4. Union employees also became separated from union reps

Certification
Process of gaining recognition under the appropriate labour act
Recognition of a union in a work place by the provincial labour
board after application is made
Different from the US Wagner Act, there is a possibility of
automatic certification
Employees will vote for representation
o In Ontario in the private sector, they have a 40%
representation vote
Bargaining Unit
The group of employees in a organization to be represented by a
union
40% of the bargaining unit would be required, meaning that they
would have to agree/their vote is required to be unionized (nonunion environment)
Management employees are not allowed to be in a union for a couple
of reasons:
It would be unfair because management has access to
confidential information such as wages and salaries
It would be a conflict of interest, if one employee (who is
management) disciplines another employee (who is not
management)
Collective Bargaining Concepts:
1. Good Faith Bargaining
o An obligation on union and management to make a serious
attempt to reach a settlement
o Generally settles 75%-90% of all disputes

2. Voluntarism
o The notion that collective bargaining is a private matter
between the employer and the union
o Means that government intervention (by the labour board)
should be kept to a minimum
3. Mediation
o A dispute resolution process in which a neutral third party
acts as a facilitator. (Used to settle)
o Before a strike happens
o Only if requested by both parties
Canadas labour laws
o Bans strikes during the period of the collective agreement
o In some provinces they must have mediation before the strike
can occur
o In some provinces there must be a cooling off period, before they
can go on strike (includes Ontario)
Replacement Worker Law
o The use of replacement workers during a strike varies (some
provinces allow some companies to bring in replacement
workers)
o Example in Ontario you can bring in replacement workers where
as in Quebec you cant
o Depends on the job (air traffic controller)
Effect of the Charter of Rights and Freedoms on Labour Laws
.

The right to strike

o The freedom of peaceful assembly and association
2. Union Dues
o Strike pay/funds
o The funds may vary, employees may base their decision on
this
o To help unions participate in broader social goals such as
democracy in the work place
3. Picketing
o The freedom of expression, unions may picket as long as its
peaceful
4. Union recognition
o All workers have the right to join the organization of their
choice (excluding police and armed forces)
Employment Law:
Employment Standards Act
o Working conditions

o Varies by province
o Covers hours of work, over time, minimum wage, breaks etc.
o Unionized employees may get over the minimum/standards
Collective Agreement
o Generally offers more than the established legal minimums
Employee Rights
o Human rights legislation, health and safety, pensions
o Pay equity- equal pay for work of equal value
John Stossel-Unions: The Costs & Benefits
o Pros
o Get paid more then average, better wages & benefits
o Provides a voice
o Job security
o Improves working conditions for both union & non-union
o Pay equity (seniority)
o Cons
o Unions create mediocrity, slackers get paid the same wage
o Dont want to be held accountable, avoiding measurement
& accountability
o Union ceiling, everyone is equal
o Individuals cant think/negotiate for themselves, think/go
with the group. Individual power is lost
o Monopoly provider of services
o Holds businesses hostage (doing through strikes), true in
monopoly type businesses
o Debt for government-citizens
o Lack of incentives (pay, to work harder)
Right to Work-allows employees to opt out of a union (dont have to
pay dues but still get the benefits)
Who benefits? Employer or Employee
o Employer
o Dissolves the power of the union
o Expect higher productivity from non-union workers
o Employee
o Continued pay in a strike
o Individual employee can negotiate their deal
o Divisive workplace
o Motivated employees can progress