MGT3390 Canadian Trade Unions Putting Theory into Practice 1. A new theory/story A key element of power is “ideas”. Frequently, ideas are couched in metaphors. Ideas can influence people’s perceptions of themselves, the society they live in, the world and the universe. Ideological conflict can lead to war and strife but can also lead to evolution of ideas. Illustrations of the power of ideas abound throughout history. The teachings of Jesus Christ and the disciples brought forth a new idea of God, quite different from that of the Jewish God of the Old Testament of the Bible. Medieval society in Europe was built on the idea of a hierarchy created by God. An individual’s place in society whether high or low was determined by God and not subject to change by mere individuals. The Divine Right of Kings was replaced by new ideas such as Rousseau’s “Man is born free and is everywhere in chains”. This triggered the Enlightenment and the rise of democratic ideas. David Korten argues in “The Post-Corporate World” that a new theory or story of life must be identified and used in our human institutions as a basis for action. The suggested theory/story rejects the mechanical, “deaduniverse” approach ushered in by the classical economic approach of the Enlightenment. While Korten notes the positive impact of the Enlightenment, he rejects what he refers to as “the deadly tale inspired by the precepts of Newtonian physics”. Korten sees the need for an ideological paradigm shift. That tale (theory) sees the universe including human life as a giant clockwork set in motion by a creator left to run down over time. Matter is the only reality with the whole being no more or less than the sum of its parts. Through science, human beings seek to better understand the parts and, thereby gain dominion over the whole by bending nature to human ends. Consciousness is seen as an illusion, and life the chance outcome of material complexity. Life has no purpose or meaning beyond the survival of the fittest. This generates competition among species and within humanity for territory and survival. 1 In this story, humanity is driven by the basic instincts of survival, reproduction, and distraction from existential loneliness through the pursuit of material gratification. The institutions of society created by humans are control structures of hierarchy and markets designed to promote the material wealth of those at the apex of the structures. While Korten recognizes the reality of the foregoing theory/story, he denies both its inevitability and its wisdom. Instead, he presents a theory of life and human purpose as part of the creative process of the developing universe. For Korten both living cells and inert matter have a form of self-knowledge that allow them to maintain their integrity even amidst apparent chaos or disorder. Korten suggests that human beings have barely begun to imagine, much less experience, our capacity for intelligent, self-aware living. The author notes that we have scarcely tested our potential for self-directed cooperation as a foundation for modern social organization. While noting that evolution involves competition, violence, and death, he observes that it also involves love, nurturing, rebirth, and regeneration, and is a fundamentally cooperative and intelligent exercise. For Korten, the nurturing of the creative development of human capacities should be the primary function of human beings, operating co-operatively through our social institutions and society. The author urges us to reshape our social institutions to this end. There is ample evidence of the human capacity for cooperation. At the global level countless individuals and organizations, including trade unions, cooperated to save lives and rebuild the communities of the victims of the tsunamis in South Asia. Closer to home, the members of Faculty of Management collaborated last year to assist the recovery of a colleague and his family from an unexpected illness. Such cooperation not only brings benefits to the participants but may avoid the mistakes that have led to the collapse of countless societies and civilizations throughout history. See for example Collapse: How Societies Choose to Fail or Succeed (Viking Adult, 2004) by Jared Diamond, where the author discusses both mistakes made by society leading to their collapse and positive action that allowed them to flourish. 2 Canadian author Ronald Wright, presenter of the Massey Lecture “A Short History of Progress”, notes that a common factor in the collapse of many past societies, such as the Mayan, Sumerian, and Roman Empire was the eventual concentration of power and wealth in the hands of a few. This usually included the privatization of land and the creation of a “warrior class” (armies, police etc.) to protect the wealth and power of the elite. The result has been excessive pressure on the eco-system beyond sustainable life and the collapse of the societies and empires. Our capitalist system, while theoretically capable of equitable distribution of income and power, has not done so. The average CEO annual income in USA was $1.306 million in 1980 while the average income for a nonsupervisory production worker was $28,950. In 2000, the CEO income was $13.1 million and the workers’ $28,579 (in 2000 dollars). The ratio of CEO/worker income rose from 45:1 to 458:1. Such writers suggest the need for a paradigm shift from the fixed hierarchical universe to an evolutionary theory based on cooperation and leadership from below rather than from above. See the concept of “emergence theory”. 2. The contribution of unions to cooperation in Canadian workplace and society. (a) Emergence of unions During the coercive drive and the development of Scientific Management of the Industrial Revolutions in Canada, the power of most Canadian workers diminished. Individual workers lacked the power to effectively oppose employers when market conditions or technological change caused employers to reduce wages, lay-off workers, intensify the pace of production, increase the length of the work week, pay little heed to worker safety, and de-skill the work. The first Industrial Revolution in Canada began soon after 1850. In reaction to harsher workplace conditions, employers’ attempts to deskill jobs and cut wages, workers in Canada began frequently to form craft unions, often affiliated with “international unions” based in the USA. The latter were concerned that lower wages, deskilled crafts and harsher working conditions in Canada would exert downward pressure on wages for US craft workers, 3 and expedite the harsher work conditions and deskilled work in the US. Cigar makers, coopers, molders, machinists, iron-puddlers and locomotive engineers were among workers who began to form craft unions after 1850. By 1870, coal miners in Canada were beginning to organize (see the story of the United Mineworkers of America in “The Noble Cause”, Bruce Ramsay 1990, District 18, UMWA). Inspired by Britain’s “New Model” unionism, the new Canadian craft unions sought to formalize relations with their employers. To put themselves on a secure footing, they charged high dues, and had a strong central leadership capable of assisting workers in disputes with employers across Canada. “Bargaining” usually took the form of the union posting their wage and other demands on factory or shop doors. If there was a labour shortage employers might agree with the demands. Typically throughout the 19 th Century workers could succeed in having their demands met only if there were prolonged labour shortages. This was rare yet strikes increased as industrialization progressed. Workers risked firing, beatings, criminal conspiracy charges, black listing and so on for merely joining a union. Events in 19th Century Canada may seem familiar to those who attended the talk by Derek Baxter of the International Labour Rights Fund (ILRF) regarding reprisals against workers seeking to unionize in Colombia. The dignity of labour became a common cause of many unions and workers in the first industrial revolution in Canada. Shorter working hours and healthier safer workplaces became a common cause and Nine-hour Leagues sprang up in Hamilton and Montreal. Politicians began to take notice and peaceful picketing was removed from the law of criminal conspiracy. Employers could still take civil action against unions but unions began to gain some measure of political legitimacy. The Knights of Labor emerged for a brief spell as effective proponents of the dignity of labour. Yet the downturn in the Canadian economy in the late 1880s had the inevitable dampening effect on the power of labour. (b) The second Industrial Revolution After 1890 the second Industrial Revolution occurred in Canada with larger factories and workplaces and intensification of work to attract and reward investment. The American Federation of Labor established scores of local unions in Canada. These were inspired by Samuel Gompers of the AFL and 4 were in large measure to protect US craft workers against cheap labour in Canada. At the Berlin Convention, the Trades and Labour Council established the policy that no national union would be recognized if an international union already existed. However, radical national unions still emerged in Canada in the second Industrial Revolution. Workers in mines, logging camps and railway gangs were usually immigrants and gravitated to radical unions that had little faith in collective bargaining or political lobbying. The Industrial Workers of the World (IWW) or the Wobblies believed in the direct action of strikes, and the general strike as a method for ending capitalism. Their union halls served as mail drops, dormitories, hiring halls, hospitals, classrooms. (see Ross McCormack “The Industrial Workers of the World in Western Canada 1905-1914”). The Winnipeg General Strike 1919 and others across Canada did not create the syndicalist worker control of the means of production but galvanized resistance by all levels of government and the large employers. Union organization was difficult in the inter-war years especially in the 1930s depression when one in four Canadian workers was unemployed. However the Communist Workers’ Unity League (WUL) grew in Western Canada and Ontario. See the on to Ottawa trek stopped in Regina when confronted by the RCMP. Workers in Relief Camps were badly treated with no rights protecting their working conditions. There was also significant repression against “communists and social democrats”. A key demand of workers was that employers recognize the legitimacy of their union and negotiate terms and conditions of employment. The move toward such recognition was instigated by the National Labor Relations Act (Wagner Act) in 1935. This allowed US private sector workers to organize and strike without employer intimidation, harassment, or reprisal. This led to rapid organization of workers in the US in the years following the legislation. By 1950 the Federal jurisdiction in Canada and each province had labour legislation modeled on the Wagner Act. Unions were recognized if a majority of workers in a bargaining unit supported certification. Strikes and lockouts were permitted if negotiation of a contract and conciliation failed. Workers and unions could bring grievances to binding arbitration if employers broke collective agreements. The price paid for this is that workers had no lawful right to strike through the duration of the collective agreement. 5 This is the case for private sector workers. Public Sector workers did not obtain the right to unionize until the 1960s in Ontario, Quebec and the Federal jurisdiction, and as late as 1977 in Alberta. These workers (except in Saskatchewan) have either no right to strike or an abbreviated right and compulsory arbitration to resolve disputes. There are also limits on what matters can be negotiated or arbitrated. (c) Impact of unions on management of organizations Collective agreements in Canada and the USA tend to be much more detailed than in Europe and therefore have more impact on the day-to-day management of organizations. This may explain in part the generally greater opposition to unions by managers in North America. Collective agreements in all Canadian jurisdictions contain specific workplace rules agreed to by the union and management. See the CUPE Local 997 and Trillium School District collective agreement on part-time and temporary/casual employees. Without a collective agreement provision, employers would have the right and the discretion to make and apply the rules for the hiring of such employees. However, in the CUPE/Trillium collective agreement the employer is constrained by the rules agreed. If a dispute arises over the interpretation or application of rules laid down in the collective agreement, it must be resolved by the grievance procedure laid down in the collective agreement. See Article 9 of the CUPE/Trillium collective agreement. Most collective agreements have a clause that permits the employer’s dismissal of an employee only for just cause. Employers must prove just cause and undertake the dismissal in a procedurally fair manner. If the dismissal is substantively or procedurally unfair, the decision to dismiss may be overturned by an arbitrator or arbitration board. Non-unionized employees will not normally have the right to reinstatement to their jobs even if they are wrongfully dismissed (some jurisdictions have legislation protecting non-union employees against unfair dismissal). This is likely to deter managers from arbitrary dismissals but it may also discourage timid managers from dismissing those who may deserve that fate. Arguably, arbitrary dismissal is more harmful to intelligent cooperation in the workplace than timid management unwilling to exercise their inherent power to discipline or dismiss for just cause. Indeed, collective agreement 6 progressive discipline rules and procedures have significant impact in nonunion settings as an exemplar of fair and intelligent discipline and dismissal of employees. Accordingly, the fair rules and procedures preventing arbitrary dismissal of employees can be viewed as an important contribution of unions to the mitigation of destructive conflict in workplaces. The collective agreement (CA) operates alongside company rules and policies and tends to formalize the relationship. While the collective agreement may limit arbitrary unequal employer action it may also stifle creativity if the parties are unduly legalistic. A CA is not a panacea and works only if there is good faith and cooperation. Work rules contained in a CA are varied. Seniority can be a factor limiting who will be laid off or promoted (it is unusual that seniority is the only factor determining promotion). Sometimes collective agreements specify the number of people required to work, for example, number of police officers or firefighters on duty, number of longshoremen in a gang, number of nurses on duty. Such matters affect not only workload but the health and safety of workers. More recently, school teachers’ collective agreements specify maximum class size, university professors have provisions limiting the number of classes taught by a professor. Professional standards are typically relevant to professional unions. Academic freedom is a key issue in universities – see for example the Dr. Nancy Olivieri and the David Healy cases. See later. Unions also have a role in joint management of health and safety standards in the workplace whether through the collective agreements or participation in joint employer-union committees. This is also true of pay equity in some jurisdictions where unions participate with management in the development of policies, rules and standards that comply with the law. Collective agreements embody not only the explicit rules and standards agreed by the parties but the implied rules and standards. Provincial and Federal human rights legislation impose legal duties on employers (and unions) not to discriminate against employees (or applicants for jobs) on grounds that include race, colour, ethnic origin, sex, sexual orientation, age, marital status, religion, and physical or mental disability. While breach of a 7 human rights statute can be remedied through a complaint to the relevant human rights commission, an individual or group may find it more convenient to seek a remedy through a grievance for breach of the collective agreement. It is established that human rights legislation is “read into” collective agreements, even where there is no specific reference in the agreement to the discrimination or human rights legislation. If a collective agreement is inconsistent with human rights legislation, the latter prevails. Accordingly, if a negotiated pension plan or insurance coverage in a collective agreement provides rights or benefits for a spouse, but not a same-sex spouse, the employee affected or the union could bring a grievance against the employer. In the absence of a negotiated settlement consistent with human rights legislation, an arbitrator would provide a remedy for the grievor or union. If the union was complicit with the employer in the discrimination, the employee could bring a human rights action against the union. Grievances can also be brought for breach of other employment legislation such as occupational health and safety. (d) Unions and social legislation Mainly through its federations and national unions, labour has lobbied for changes in employment and social laws and policies to increase the power of workers and their share of the wealth they create. At present, the Canadian Labour Congress is participating in a federal initiative to review and improve workplace employment standards (chaired by Harry Arthurs, exPresident of York University and renowned labour lawyer, academic, and arbitrator (see http://www.fls-ntf.gc.ca/en/consrpt-doccons.asp). Historically unions have played a significant role in the creation of such legislation as workers compensation, occupational health and safety, labour relations, employment standards, human rights, Canada Pensions, unemployment insurance. Unions have also championed the public healthcare system in Canada. Unions have also resisted trade treaties that threaten to undermine domestic wages and encourage sweatshops abroad. These initiatives can be viewed in alternative ways. The evidence of a widening of the gap between rich and poor in Canada (see above) may suggest that unions have failed in their objective of more equitable 8 distribution of social wealth and power. On the other hand, the absence of serious social unrest in Canada may be interpreted as evidence that the social policies advocated and in part administered by unions are working to the extent that things are not as bad in Canada as they are in many parts of the world. 3. A contemporary issue addressed by unions: the role of universities There are signs of growing commercialization of universities and colleges across North America. This is a threat to the role of universities in democratic society. The university’s mission is the unqualified pursuit and public dissemination of knowledge and truth. The university serves the broad public interest by valuing informed analysis and uncompromising standards of intellectual integrity. Faculty and students seek to go beyond the conventional wisdom of “what everybody knows” (See James L. Turk, Introduction – What Commercialization Means for Education in “The Corporate Campus, 2000, Lorimer, CAUT). Throughout history, the Church, the State and the Corporate Sector have sought to harness universities to their wagon so that the university serves and enhances the power of the status quo, rather than challenge and threaten it. Politicians, government bureaucrats and politicians want universities to provide the knowledge to allow Canada to “win in a world economy”. In short, universities are seen as essential for the pursuit of corporate goals of growth, profit and beating the competition. The “commercialization” of universities takes various forms. (i) Marketing sites. Corporate logos and banners abound as the shortage of public money encourages universities to . Classrooms are named after corporate sponsors and exclusive marketing deals abound. Most universities have secret deals with Coke (but see the rejection of such a deal by McGill University in the late 1990s). (ii) Selling to universities. Much of the non-academic activity of universities has been privatized (contracted out), such as food services and, cleaning and 9 maintenance, always with loss of income by workers. Perhaps the biggest incursion by the private sector is that of computer technology and selling the idea that technologically mediated instruction, on line learning and virtual education have a vital place in the university. Vast sums are spent on such technology, with little evidence of its value to the university’s traditional mission. (iii) Becoming private in practice Corporate language is used. Students are customers or clients. Faculty are service providers. Evaluation becomes “quality control. The process becomes “production”. Yet, the purpose of university of education is not customer satisfaction but intellectual growth (of students and faculty). Students should be challenged to be uneasy about their traditional ideas. The faculty/student relationship should be one of partnership not of service provider and client. Move to user pay. The students are seen as private beneficiaries. The idea of education as a public good dwindles. Control of the labour process. Attempts have been made to apply to universities the theories of the fathers of managerialism – Charles Babbage and Frederick Taylor. This involves subdividing the job. To some extent this has been done by the separation of teaching and research, the creation of lesson plans for adoption by faculty and so on. So far such encroachment on the profession of faculty has been relatively small but tightening budgets virtually guarantee further encroachment. Use of private labour. Low paid contract teachers are replacing permanent full-time faculty to reduce the salary bill. (iv) Serving private interests As public money becomes more scarce for universities, the need for private funding increases. See the University of Toronto’s 10 secret deals with various corporations to fund programs. There is evidence of corporate influence in steering the direction of academic research. Government funding depends greatly on matching corporate funding. Nobel Laureate John Polanyi says of the Canadian Government’s “commercialization” of science, saying that it is ruining Canada’s universities and driving the best young scientists out of the countries. Polanyi says “At a certain point….we don’t have universities any more, but outlying branches of industry. Then all the things industry turns to universities for – breadth of knowledge, far time horizons, and independent voice – are lost” (see Kathryn May, “Misguided Policies Driving out Scientists,” The Ottawa Citizen, 21 November 1999, A1). A problem is illustrated by Henry Thomas Stelfox and colleagues who reviewed research on the safety of calcium-channel antagonists as a treatment for cardio-vascular disorders. Of those that found the medication safe, 96% had financial relationships with manufacturers of the products. Of those who found the results neutral on safety, only 60% had financial relations with manufacturers. Of those critical of the safety of the medication, 37% had relations with manufacturers. A huge challenge for academic unions and their federations is how to defend universities as public institutions, as free as possible from control of private interests. An article in the Globe & Mail (Saturday April 9, 2005) highlighted the current alleged attack on “science” by US Federal funders of research. Such projects as investigating links between truck drivers and the spread of HIV/AIDS has been threatened by political intervention, influenced by religious lobbyists who view such science as unnecessary and even harmful. To the extent that universities promote research according to rigorous scientific standards, the American Association of University Professors views political lobbying on behalf of faculty researchers and society at large as an essential part of its mandate. 11