International Labor Organization
• Declaration on Fundamental Principles and
Rights at Work
– Freedom of association and the effective
recognition of the right to collective bargaining
– Elimination of all forms of forced or compulsory
labor
– Effective abolition of child labour
– Elimination of discrimination in respect of
employment and occupation
Country Examples
Canada
• Basic legal structures modeled on U.S. labor law
–
–
–
–
–
Exclusive representation
Majority rule
Administrative agency
Written, fixed term contracts
Grievance and arbitration procedures
• Most provinces require grievance arbitration
• Levels of government
– Provinces regulate collective bargaining at facilities within
the provinces except interprovincial industries
– Federal jurisdiction regulates such industries as airlines,
telecommunications, railroads, etc.
Canada (cont.)
• Differences
– Determination of Majority status – only five provinces
require a vote (Alb., BC, NS., Ont., Sask.) , rest use other
evidence (cards, dues, etc.)
– Minimal judicial review in Canada
– No mandatory-permissive distinction
– Third party involvement in dispute resolution
• Mandatory mediation or conciliation in all jurisdictions
• First contract arbitration (8 jurisdictions)
– Striker replacement restrictions
• Four jurisdictions, including the three largest provinces (British
Columbia, Ontario, Quebec)
France
• Freedom of Association guaranteed in constitution,
including rights to create and join unions
• Recognition in France highly centralized
– Called “representativeness”
• Determined by history or union, independence from employers
• Representation rights legally granted to five union confederations
and affiliates if they represent one employee
• Principle of extension means CB coverage high, even
when union membership low
– Representative union has right to request contract
extension to sector
• Greater value placed on union countervailing power
than on employee choice
United Kingdom
• Through mid-2000, purely voluntary recognition
• Since mid-2000, a statutory recognition procedure through
Employment Relations Act (ERA) of 1999
– union may refer disputed recognition matter to a tripartite Central
Arbitration Committee (CAC)
• Unit
• Recognition or ballot
– CAC has adopted a specified bargaining method to be used if parties
unable to agree on one
• Joint Negotiating Body consisting of equal no. of union and er reps
• Negotiations shall address pay ,hours, and holidays
• A detailed multi-step procedure with time limits for proposals and
responses
• Question as to whether the ERA will survive a conservative
government
Germany
• Peak labor organization, DGB, brings order to union
recognition
– DGB assigns specific unions to specific industries
• Union represents workers if only one worker a union member
– Union negotiates TCE with employer or industry/regional employers’
association
– Characteristics of unions
•
•
•
•
Democratic
Voluntary assoc. of ees
Adequate financial resources
Must be able to pursue industrial action
• Collective Bargaining between industry unions and employers’ association
– Types of agreements
• Wages
• Framework – everything but wages
– May by law be extended to other employers in industry or region
Spain
• Right to freedom of association and join a union in
constitution
– Right to manage of lower status than employee freedom
of association
– Consistent with international treaties, including ILO
conventions
• Supported by Organic Law of Trade Union Freedom
(OLTUF)
• Recognition
– Union receives privileges at 15% members
– Unions represent workers at workplace and in works
councils
Ireland
• Recognition
– company would not be obliged formally to recognise the
union(s) concerned
– Ers compelled to
• accept the right of unionised employees to be represented on
issues relating to pay and terms and conditions of employment
• accept binding Labour Court recommendations in respect of these
issues. In effect, it is something of an "arms' length" solution that
would appear to be acceptable to both sides
• Negotiations/Bargaining
– Social partners develop national pay agreements
• Extended to union sector only
Collective Bargaining and EU
• No EU-Level collective bargaining legislation
– EU Charter requires members to protect
freedom of association and collective
bargaining
10
Social Partners – Treaty of
Amsterdam (1997)
–
–
–
–
• Article 137
A Member State may entrust management and labour, at their
joint request, with the implementation of (social policy) directives
adopted pursuant to paragraphs 2 and 3.
• Article 138
1. The Commission shall have the task of promoting the
consultation of management and labour at Community level and
shall take any relevant measure to facilitate their dialogue by
ensuring balanced support for the parties.
2. To this end, before submitting proposals in the social policy
field, the Commission shall consult management and labour on
the possible direction of Community action.
3. If, after such consultation, the Commission considers
Community action advisable, it shall consult management and
labour on the content of the envisaged proposal. Management
and labour shall forward to the Commission an opinion or, where
appropriate, a recommendation.
11
European Union
• Corporatist/Social Partnership Model
12
Models of Collective Bargaining in
Labor Law
Assumptions of
noncompetitive markets and
importance of collective
power
• Centralized Union
Recognition
– Germany, France, Spain
• Encourages unionization and
collective bargaining
• Indifferent to Employee
Choice
Assumptions of Competitive
markets and importance of
individual choice
• Decentralized Union
Recognition
– United States, Canada, United
Kingdom, Japan
• Encourages employee choice
• Indifferent to collective
bargaining
Australia
• For most of 20th century, had developed an extensive
system of (interest/contract) arbitration to determine
terms and conditions of employment
– State and federal (50-50)
– Often used pre-determined guidelines
– Roughly 80% of workforce covered by tribunal arbitration
awards
• Actors
– Australian Council of Trade Unions became a lobbying
entity in the tribunal system
– Employer Associations: Australian Industry Group, ACCI,
BCA
Australia (cont.)
• Since 1996, a shift away from centralized industry/sectoral arbitration
awards to enterprise-level bargaining
• Workplace Relations Act of 1996 (conservative govt.)
– Moved to a system by which enterprise agreements could exist with awards
– Parties could opt to remain in award system or move to enterprise agreement
– Individual agreements could override collective agreement
• Fair Work Act of 2009 (Labour Govt.)
– Reinstated er obligation to negotiate in good faith with unions and primacy of
collective agreements over individual agreements
– Shift back toward industry awards
– If 20 employees or more select a registered (with govt.) union, those
employees become party to a sectoral award
– http://www.fairwork.gov.au/Pay-leave-andconditions/Awards/Pages/Modern-awards.aspx?role=employees
Australia (cont.)
• Workplace Relations Act Amendment of 2006 (Work
Choices)
– A reduction in the number of "allowable matters", which
could be covered by awards Creation of five minimum
workplace conditions;
– Exemption of companies with fewer than 101 employees
from unfair dismissal laws
– Exemption of all companies from unfair dismissal laws
where a dismissal is for a bona fide operational reason
– Increased restrictions on allowable industrial action;
– Mandating secret ballots for industrial action;
– Outlawing pattern bargaining and industry-wide industrial
action.
Australia (cont.)
• Fair Work Act of 2009 (Labour govt.)
– Creates a system to resolve questions over representation
– Reinstated good faith bargaining at the enterprise level
• Enforcement by determination if a “serious breach declaration”
– Will integrate awards into new system
– Reinstated primacy of collective agreements over individual agreements
– Shift back toward industry awards
– If 20 employees or more select a registered (with govt.) union, those
employees become party to a sectoral award
– http://www.fairwork.gov.au/Pay-leave-andconditions/Awards/Pages/Modern-awards.aspx?role=employees
Australia (cont.)
• State Level (25% of full-time employees)
– Need not follow federal level
• Victoria (2nd largest, 25% of ees)
– abolished mandatory arbitration in 1993
– Ceded IR authority to federal government in 1996
– New South Wales (largest, 33% of ees),
Queensland, Western Australia, Tasmania basically
retained old arbitration system
Latin American Systems
• History of state- or party-linked unions
• Unions historically were political actors rather than
economic actors
• Developing countries and legacy of import
substitution policy
• Created “corporatist” structures
– “corporatism” a system in which one entity is given the
legal franchise to “represent” a legally defined
constituency at the national/political level
• National peak labor organization (like AFL-CIO/Change to Win) –
represent all workers
• Employer Organization – represents all employers
Latin American Examples
• Mexico
– Peak organizations linked to PRI
• Venezuela
– Peak organizations linked to both political parties
• Negotiate with government on labor laws on
governmental intervention in labor disputes,
strikes, etc.
• Social/political actor role continues to be
important
India
• Highly regulated due to British colonial influence
– Minimize industrial disputes
– Ensure wartime production
• Recogntion
– Union registration required
– Er recognition not required
• Economic power at the enterprise level
• Industrial Disputes
– Government may intervene
• Conciliation
• Adjudication
Summary
• Countries that are developing or that have
developed since WWII generally have high
levels of state intervention
– Union involvement in political system
• Government role in economic development