Industrial Relations in Canada

Prepared by

Kenda Murphy, LL.B KMurphy Consulting and

Mercedes Watson, B.F.A., M.A., C.Med Thought Department Inc.

Chapter

3

History of the

Canadian Union Movement

Chapter 3 Objectives

3

At the end of this chapter, you should be able to:

 Describe the geographic, cultural, economic, and political factors that are relevant to Canada

Identify the major events in Canadian labour history

Understand the role of craft and industrial unionism in shaping Canadian union structure

 Discuss how American unions have influenced

Canadian unions

 Identify some of the regional differences in

Canadian labour history

History of the Canadian Labour Movement

Characteristics that have shaped Canada’s labour history:

Physical geography

Cultural mix

Economic system

─ Primary industries (forestry, fishing, mining)

─ Secondary industries (construction and steel)

─ Tertiary industries (service industries)

 Political structure

3

Early Canadian Unionism: the 1800s

3

Informal workers’ groups formed as early as 1827

The period of local unionism

 Earliest attempts to organize followed the model which was localized and involved small groups of workers craft union

 These unions sought to protect wages for skilled workers and thus to control labour markets

 Canada's export activity increased the demand for quality tradespeople’s work

 Did not encourage non-skilled workers or non-trade occupations

Early Canadian Unionism: the 1800s

3

An alternative organizing model emerged — industrial unionism

Focused on “strength in numbers”

Maximized power by recruiting as many members as possible, regardless of occupation

 The expansion of the Canadian labour movement came through affiliations with international unions

(mainly US-based)

 In the mid to late 1800s came the continental movement of American-based international unions entering central Canada

Early Canadian Unionism: the 1800s

3

Unions began to work on common goals —

Nine-Hour Movement (1872)

There was virtually no law in Canada governing industrial relations issues; British government used monopoly law to try to curtail union growth

In 1871, Britain passed the Trades Union Act ; a Canadian version was later passed

Nine-Hour Movement created inter-union networks inspired by the first federations of trade unions

Early Canadian Unionism: the 1800s

3

Knights of Labor entered Canada in 1881 —first international industrial union to do so

Trades and Labour Congress (TLC) was formed in 1883; it effectively lobbied for legislative reform for all workers

Papal letter was issued in Quebec denouncing

Knights of Labor

Catholic Church in Quebec was accused of interfering with union organizing and membership until bishops intervened

The Industrial Age: the Early 1900s

3

Work evolved from rural-based to urban, centralized factory-based

U.S. ownership of industries increased the distance between the employer and the Canadian worker

Federal Conciliation Act (1900) conferred the power to appoint third-party intervenors or commissions of inquiry to help resolve labour disputes

The railways saw union expansion which brought an increase in strikes

As a result of increased railway strikes the

Industrial Disputes Investigation Act passed in 1907

The Industrial Age: the Early 1900s

Significant strike activity in Atlantic Canada with

411 strikes recorded between 1901 and 1914

By 1914 American-based unions accounted for about

80% of Canadian union membership

Extensive organizing by Industrial Workers of the World (IWW)

3

The World War Era

3

The industrial activity related to the war made unionization more attractive to Canadian workers

While unionism was gaining favour, workers felt that their concerns were not being adequately addressed

Their ability to strike was limited by expanded powers of the Industrial Disputes Investigation Act

Controversy over conscription (forced enrolment in the military)

Death of Albert “Ginger” Goodwin labour organizer in B.C.

The World War Era

• The Winnipeg General Strike (May 15,1919)

Was the first extended, large-scale general strike involving workers from many different occupations and unions

30,000

–35,000 unionized and non-unionized workers walked off their jobs

 A committee representing employers and all three levels of government attempted to force strikers back to work

3

The World War Era

3

The Winnipeg General Strike (1919) (cont’d)

 Parliament passed emergency amendment to the Immigration Act allowing for

─ immediate deportation of immigrants;

─ police to arrest on basis of suspicion (and not evidence);

─ the burden of proof of innocence to be placed on the accused rather than the state

 Strike ended June 25 with an agreement but it did not end well for unions

The World War Era

3

In Quebec, at the end of the decade, unions gained strength because of the influence of the Catholic Church

In 1921, so-called Catholic unions formed the

Confédération des travailleurs catholiques du Canada (CTCC)

The CTCC was involved in several high profile strikes, at least one of which (1949) ended well for mineworkers

In 1961, it became the Confédération des syndicats nationaux (CSN)/Confederation of National Trade

Unions (CNTU) , which still exists today

After the First World War

3

Canadian unions faced many difficulties after the First

World War, including:

 Widespread unemployment and wage cuts

Disunity within the union movement

A poor agricultural market, the U.S. stock market crash

(1929), and the subsequent Great Depression

Also experienced some positive developments:

Skilled workers were still needed and were able to maintain unionization as craftspeople

“Industrial councils” were formed which included less-skilled workers

 Communities of ethnic immigrants within occupations created networks for support and information

After the First World War

3

Unemployed workers formed associations to lobby for better support and to end governmentrun “relief camps”

“On to Ottawa” trek demonstrated resistance to “relief camps”

“Bloody Sunday” riot in Vancouver

Communist Party and radical politics influenced

Canadian unions

After the First World War

3

Snider vs. Toronto Electrical Commission

This 1925 ruling by the British Privy Council settled the question of federal and provincial jurisdiction over labour relations

Federal government’s jurisdiction over labour relations extended only to federally regulated industries

 Ruling hampered development of Canadian unions

 Established separate provincial and federal jurisdictions for labour law

After the First World War

3

• The Wagner Act (1935)

 U.S. laws introduced by President Franklin Roosevelt guaranteed 3 basic rights to U.S. union members

1.

2.

3.

The right to organize

The right to collective bargaining

The right to strike without employer harassment

Employers were forced to recognize a union that had the support of the majority of workers

Became the model on which many Canadian labour codes are based

After the First World War

3

Congress of Industrial Organizations (CIO) formed in US in 1935

Caused dissent among Canadian unions when

Trades and Labour Congress was forced to expel

CIO-affiliated unions

CIO opened Canadian office and organized many industries in Canada

Co-operative Commonwealth Federation (predecessor to New Democratic Party) elected first members to

Parliament in 1935

The Second World War

3

WW II saw employment increasing along with increased production

The jurisdiction of the Industrial Disputes Investigation Act was expanded in 1939 to allow the government increased control over industrial relations

A strike vote was required to make any strike legal but in return the government introduced wage and price controls

Unionization rates increased significantly during the war as did strike activity

The Second World War

3

Canadian Congress of Labour (CCL) formed in 1940 and gave Canada two national labour federations: CCL; and Trades and Labour Congress (TLC)

One of every three union members on strike by 1943

High level of strike activity led to demands for improved labour legislation

The Second World War

3

• In 1944, the federal government passed P.C. 1003

It was modelled on the Wagner Act

The significant features of P.C. 1003 were compulsory bargaining and the right of employee representatives to be recognized as certified agents

Similar acts were passed by Quebec and B.C.

After the Second World War

3

• After the war there were fears of an economic collapse

But there were more government safeguards than after WW I

The Rand Formula was developed in 1945

 Union dues would be automatically deducted from every worker’s pay cheque, but individuals would be allowed to opt out of union membership

 The Rand Formula was being used by 90 percent of Canadian unions by 1950

By 1950, nearly every province had a labour code

After the Second World War

3

The Asbestos Strike (1949)

 An illegal strike, supported by Catholic churches and the Archbishop of Montreal

 Quebec Premier Duplessis sent armed police to community of Asbestos; strikers responded by beating company officials and dynamiting company property

 After company hired replacement workers, strikers attacked the mines and the police; over 200 were arrested

After the Second World War

3

The Asbestos Strike (cont’d)

 A settlement was negotiated

 Served notice to the world that the Catholic unions were no less militant than their secular counterparts

 Marked the end of the formal relationship between the Catholic Church and the Quebec union movement

The 1950s and 1960s

3

Period of growth and development for unions, remarkably free from labour conflict

The TLC and CCL merged in 1956 to create the Canadian

Labour Congress (CLC)

The predominantly international unions became increasingly bureaucratized and centralized

Some high-profile and bitter strikes

Early 1960s saw extensive public sector union organizing

Federal government passed the Public Service Staff

Relations Act in 1965

The 1950s and 1960s

3

During the same period, para-public sector workers also organized on a large scale

Some joined existing public-sector unions, but others joined the Canadian Union of Public Employees (CUPE)

Also during this period, changing technology affected workplaces and reduced or eliminated occupations

The 1970s and 1980s

3

In the early 1970s unemployment and inflation rose, and markets outside North America became more important

Unions were blamed for inflation and lower productivity

1975 saw wage and price controls imposed for 3 years, which resulted in increased strike activity

In 1982, the federal government suspended public servants’ bargaining rights for 2 years

The 1970s and 1980s

Early 1980s saw:

Increased interest rates to fight inflation

High unemployment

Restricted social programs

Cutbacks in powers of public sector unions

Charter of Rights and Freedoms passed in 1982

Conservative federal government in 1984 created a hostile atmosphere for unions

Several high-profile private sector strikes

3

The 1970s and 1980s

3

Labour movement also saw internal dissent:

 The Confederation of Canadian Unions (CCU) formed as alternative to the CLC

 Other unions formed the Canadian Federation of

Labour (CFL) (1982 –1997)

 In 1985 Canadian locals of the United Auto Workers split from U.S. parent union to form the Canadian

Auto Workers

 Trend toward Canadian control of Canadian unions

Into the 21st Century

3

Liberalized international trade was the major event of the 1990s

 North American Free Trade Agreement

(NAFTA) (1992)

 General Agreement on Trade and Tariffs

(GATT) (1994)

Some employers have used NAFTA to move to regions with lower labour costs and non-unionized workers

Politically, the NDP has had limited clout to advocate for labour issues across Canada

Into the 21st Century

3

Several large-scale labour disputes in last few years

 NHL lockout in 2004 –2005 and 2012-2013

Several strikes at post-secondary institutions

Several civic workers’ strikes

Several public sector workers’ strikes

 Several strikes at large private sector employers

Into the 21st Century

Other major structural shifts in Canadian industrial relations

 2004, two of Canada’s largest unions United

Steelworkers of America and the International

Wood and Allied Workers of America merged

(Unites Steel, Paper and Forestry, Rubber,

Manufacturing, Energy, Allied Industrial and

Service Workers International Union)

 2013, the National Automobile, Aerospace,

Transportation and General Workers Union of

Canada (Canadian Auto Workers Union) and

Communications, Energy and Paperworkers

Union merged to create Unifor

3

Into the 21st Century

3

• Changes to labour’s relationship with government

Federal and provincial governments more willing to use back-to-work legislation

Alberta Federation of Labour was one of the most active participants in 2014 campaign to change federal

Temporary Worker Program.

Summary

3

• The future can be viewed negatively or positively for unions

 Negative perspective: Internationalization, the slow decline in unionization rates, and the weakening of unions’ political influence could further erode unions’ power

 Positive Perspective: The relative strength of Canadian unions (compared to the U.S.) and the history of adaptability suggest that Canadian unions could continue to thrive

Copyright

3

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