Chapter 13 - understanding employee-management issues and relations

Chapter 13 understanding employee-management issues and relations © 2013 McGraw-Hill Ryerson Limited 1 Employee-management issues The relationship between management and employees has never been very smooth. Management has the responsibility of producing a profit, Labour is interested in human dignity, decent working conditions, a share in the wealth that its work generates, and assurance that the conditions of the contract and labour laws will not be ignored. Unions try to negotiate the relationship between the worker and the employer © 2013 McGraw-Hill Ryerson Limited 2 3 Labour Unions Groups of individuals working together to achieve job-related goals Higher Pay Reasonable Work Hours Better Working Conditions Better Job Security Benefits unions Workers originally formed unions to protect themselves from intolerable work conditions and unfair treatment. Many issues that were formerly fought for by unions are now part of the employment standards law in Canada. Workers compensation, Minimum wages, Vacations & holidays, Pension plans, Unemployment insurance © 2013 McGraw-Hill Ryerson Limited 4 unions in canada Unions illegal until 1872 Strike leaders were beaten, jailed, or shot In 2011, unions represent almost 30 percent (approximately 4.3 million) of all workers . When unions were most powerful, in 1984, they represented almost 42 percent of workers. © 2013 McGraw-Hill Ryerson Limited 5 Trade unions in canada © 2013 McGraw-Hill Ryerson Limited 6 Types of unions A craft union is an organization of skilled specialists in a particular craft or trade. An industrial union is one that consists of unskilled and semi-skilled workers in mass-production industries such as automobile manufacturing and mining. © 2013 McGraw-Hill Ryerson Limited 7 Advantages and disadvantages of joining a union Advantages Members are generally better protected when disputes arise Can often receive higher wages and better benefit coverage (e.g., pension plan, supplemental health care, and dental plan) Better negotiating power as a group rather than as an individual © 2013 McGraw-Hill Ryerson Limited 8 Advantages and disadvantages of joining a union Disadvantages Promotion and pay may be determined by seniority; older employees get more pay sometimes regardless of skill Negotiated compensation usually leads to higher production costs. You may not be agree with all of the union’s decisions © 2013 McGraw-Hill Ryerson Limited 9 Labour relations board A labour relations board (LRB) is a quasi-judicial body consisting of representatives from government, labour, and business. It functions more informally than a court but it has the full authority of the law. 10 Forming a union Certification Formal process whereby a union is recognized by the Labour Relations Board (LRB) as the bargaining agent for a group of employees. Decertification Process by which workers can take away a union’s right to represent them. 11 Hiring conditions Once a union is certified to represent workers, certain hiring conditions are also negotiated. 1. Closed Shop All new hires must be union members. In effect, hiring is done through the union. 2. Union Shop The employer is free to hire anybody But the recruit must then join the union within a short period, perhaps a month. © 2013 McGraw-Hill Ryerson Limited 12 Hiring conditions 3. Agency Shop The new employee is not required to join the union but must pay union dues 4. Open Shop The hiring condition least popular with unions and the one favoured by employers. Where employees are free to join or not join the union and to pay or not pay union dues. © 2013 McGraw-Hill Ryerson Limited 13 The collective bargaining process Collective Bargaining The process whereby union and management representatives negotiate a contract for workers. The negotiated labour–management agreement, More informally referred to as the labour contract, clarifies the terms and conditions and sets the tone under which management and organized labour will function over a specific period. 14 The collective bargaining process © 2013 McGraw-Hill Ryerson Limited 15 Bargaining process Negotiation process Mediation is the use of a third party, called a mediator, who encourages both sides in a dispute to consider negotiating and often makes suggestions for resolving the dispute. However, it’s important to remember that mediators evaluate facts in the dispute and then make suggestions, not decisions. Conciliation is a process by which a trade union or an employer must use the government’s services (via the Ministry of Labour) for help in resolving their differences so that they can reach a collective agreement. 16 Negotiation process A more extreme approach used to resolve conflict is arbitration. Arbitration is an agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labour dispute. 17 Work stoppages: Strikes Strikes - Occur when workers collectively refuse to go to work. Strikes can attract public attention to a labour dispute and at times cause operations in a company to slow down or totally cease. Strikebreakers: scabs or replacement workers Restrictions: some are not allowed to strike Lockouts – when the employer refuses to have employees work. Back To Work Legislation - To Serve The Public Good 18 Work stoppages: Strikes Picketing Strikers may also picket the company, Which means that they walk around the outside of the company carrying signs and talking with the public and the media about their issues. Sabotage Sometimes workers may do things such as damage machinery or make public statements, that negatively affect the ability of the company to make money 19 Work stoppages: Strikes Rotating strikes—on and off or alternating among different plants or cities—rather than a full-fledged strike in which all employees are off the job for the duration. With rotating strikes, employees still get some pay, which is not the case in an all-out strike. A wildcat strike is an unauthorized (by the union) work stoppage while a labour contract is still in effect. Now illegal A boycott occurs when organized labour encourages both its members and the general public not to buy the products or services of a firm involved in a labour dispute. 20 Disputes after the agreement After a contract is negotiated, voted on and in place, both sides will often have disagreements as to how the contract is being interpreted and applied? Grievance: a procedure laid down in the contract for resolving differences of Interpretation. Unresolved grievances can go to: Arbitration: independent, outside party to rule on grievances Mediation: the same as arbitration, but the mediator has no power to impose a ruling upon the parties 21