1. (a) Some important external factors that affected the PSAC Strike are:
Legal Subsystem:
The legal subsystem includes the expiration of the previous collective agreement in 2021, the
Public Service Labour Relations Act, and the Public Interest Commission's recommendations, all
of which concern the laws and regulations that govern the employment relationship and the
collective bargaining process. The workers and the employer were required to create a new
contract that would cover the terms and circumstances of employment for the following three
years. The negotiation procedure began in 2021, but no agreement was achieved before the
deadline of April 18, 2023. This subsystem also includes remote work policies and the development
of work amenities, which entail the use of tools and methods to execute work tasks and increase
work efficiency and quality. This increased workers' burden and stress as they dealt with the
problems of remote work, health and safety issues, and public expectations. Workers requested
greater flexibility and assistance from their company to adapt with the changing work
environment and offer quality services to Canadians. Some of the workers' proposals were
rejected by the business, including the opportunity to work from home, improved work facilities,
and seniority protection during layoffs.
Economic subsystem: The economic subsystem includes record-high inflation and soaring
corporate profits in 2023, pandemic-related backlogs and service disruptions in the federal public
sector, and product/service and labour market conditions, all of which affect the supply and
demand for labour and products, as well as the revenues and costs of workers and employers. This
resulted in a disparity between workers' purchasing power and the cost of living, as well as
between workers' pay and employers' income. Workers wanted a 15% salary raise over three years
to compensate for the loss of real income and to represent their contribution to the economy. The
business proposed a 9% salary rise over three years, which the employees rejected as insufficient
and discriminatory.
Political subsystem: The Government of Canada, represented by the Treasury Department of
Canada Secretariat, is a political subsystem because it employs federal civil servants and
determines public sector policy.
Social Subsystem: Customers and the general public who depend on the services of federal civil
servants and who have an interest or opinion on strikes are part of the social subsystem because
they reflect society's values, norms, and expectations.
(b) The four actors in the PSAC Strike are:
1
2
3
4
The government bodies are members of Canada's largest public service union, the Public
Service Alliance of Canada (PSAC). They represent about 155,000 federal public
employees from various departments and agencies.
The employer, the Government of Canada, is represented in negotiations by the Treasury
Board of Canada Secretariat. They oversee establishing the terms and conditions of
employment for federal public workers.
The clients are Canadians who rely on the services supplied by federal public employees,
such as passport processing, tax return processing, immigration problems, etc. They are
affected by the strike action because it slows or disrupts the supply of these services.
The public consists of other Canadians who are not directly participating in the strike but
may have an interest or opinion on the problems and consequences. They may also be
indirectly harmed by the strike, such as by its influence on the economy, the
environment, or the country's social structure.
(c) Some conversion mechanisms that are presented in the PSAC Strike are:
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The collective bargaining process is a formal discussion between employees and
employers to negotiate a new collective agreement that addresses pay, benefits, working
conditions, and other concerns. This procedure has multiple steps, including negotiating
proposals, conciliation, mediation, and arbitration.
Strike action, which is the withdrawal of labour by employees to put pressure on the
employer to accept their demands. This activity consists of picketing, rallies,
demonstrations, and other types of protest.
The tentative agreement is the result of the collective bargaining process, in which the
workers and the employer reach an agreement on the remaining concerns. This agreement
must be ratified by both the workers and the employer before it becomes legally
enforceable.
2. According to the Labour Program of Canada, the five largest unions in Canada:
A. Canadian Union of Public Employees (CUPE): This union was formed in 1963 by the merger
of two public sector unions. It represents over 639,000 workers in various sectors, such as
health care, education, municipalities, social services, and transportation. Some of its
important actions include:
 Its 1976 strike by the Ontario hospital workers for pay equity and better working
conditions.
 Its 1981 strike by the Quebec public sector workers for wage parity and collective
bargaining rights.
 Its 1997 strike by the British Columbia teachers for class size and composition limits and
learning resources.
 Its 2022 strike by the Ontario education workers for job security and funding for public
education.
B. National Union of Public and General Employees (NUPGE): This union was formed in 1976
by the affiliation of several provincial public sector unions. It represents 360,000 workers in
various sectors, such as health care, social services, education, and natural resources. Some of
its important actions include:
 Its 1981 strike by the Saskatchewan government employees for wage increases and job
protection.
 Its 1999 strike by the Nova Scotia health care workers for pay equity and workload
reduction.
 Its 2004 strike by the Newfoundland and Labrador public sector workers for pension
improvements and wage parity.
 Its 2019 strike by the Alberta health care workers for fair wages and safe staffing levels.
C. United Food and Commercial Workers (UFCW): This union was formed in 1979 by the
merger of two retail and food workers unions. It represents 250,000 workers in various sectors,
such as retail, food processing, agriculture, and hospitality. Some of its important actions
include:
 Its 1985 strike by the Hormel meatpackers in Minnesota for wage and benefit protection.
 Its 1997 strike by the California grocery workers for health care and pension benefits.
 Its 2008 strike by the Maple Leaf Foods workers in Manitoba for health and safety
standards and compensation for victims of the listeria outbreak.
 Its 2021 strike by the Amazon workers in Alberta for union recognition and better working
conditions.
D. Unifor: This union was formed in 2013 by the merger of two private sector unions, the
Canadian Auto Workers and the Communications, Energy and Paperworkers. It represents
300,000 workers in various sectors, such as manufacturing, media, transportation, and
telecommunications. Some of its important actions include:
 Its 2016 strike by the General Motors workers in Ontario for investment and job security.
 Its 2017 strike by the Chronicle Herald workers in Nova Scotia for fair wages and editorial
independence.
 Its 2019 strike by the Co-op Refinery workers in Saskatchewan for pension protection and
workplace safety.
 Its 2020 strike by the Dominion grocery workers in Newfoundland and Labrador for fulltime jobs and wage increases.
E. United Steelworkers (USW): It is a general trade union with members across North America,
working in various sectors such as steel, paper, forestry, rubber, manufacturing, energy, and
service. The USW is the largest private-sector union in North America, with more than
225,000 members in Canada. The USW is committed to advancing workers’ rights and wellbeing at the bargaining table, on the job and in the legislative arena. Some of its important
actions include:
 Its 1981 Falconbridge strike, which was a bitter and violent dispute between the USW and
the nickel mining company Falconbridge in Sudbury, Ontario.
 Its 1995-1998 Stelco strike, leading to the preservation of the union’s pension plan,
seniority rights, and collective bargaining power against the company’s attempts to
impose concessions and restructuring.
 2005 Telus strike, which was a major labour dispute between the USW and the
telecommunications company Telus in British Columbia and Alberta.
 2012 Quebec student strike, which was a massive social movement against the provincial
government’s plan to raise tuition fees for post-secondary education.
3. The four management strategies used by employers to deal with unions are:

Acceptance involves recognizing the union as a legitimate representative of the workforce
and actively collaborating with it to achieve mutual benefits. This technique fosters a
positive union-management relationship by promoting open communication, cooperation,
and problem-solving between the two parties. It may involve bargaining collectively,
engaging in joint decision-making processes, and implementing policies that address the
concerns and needs of both the organization and the union. The Government of Canada,
as the employer of the federal public workers, has adopted the acceptance strategy by
recognizing the Public Service Alliance of Canada (PSAC) as a legitimate partner and
cooperating with it to achieve mutual gains. The government and the PSAC have recently
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reached a tentative agreement that covers wages, benefits, and working conditions for
more than 155,000 workers.
Resistance, on the other hand, is a technique where the organization takes a
confrontational stance towards the union. It challenges the union's authority and
questions its credibility. This approach often includes engaging in tough negotiations,
resorting to legal action, or implementing aggressive tactics like lockouts or union
avoidance strategies. The goal is to discourage unionization or limit the union's power and
influence within the organization. However, this technique can lead to strained
relationships, increased conflict, and potentially negative consequences for both sides. The
Ontario government, under the leadership of Premier Doug Ford, has adopted the
resistance strategy by opposing the demands and challenging the power of the Ontario
Secondary School Teachers’ Federation (OSSTF). The government and the OSSTF have
been locked in a bitter dispute over issues such as class sizes, e-learning, and
compensation. The OSSTF has staged several strikes and walkouts to protest the
government’s policies.
Removal is a technique focused on eliminating the presence of the union altogether. It can
be done through decertification, which involves a formal process to revoke the union's
legal recognition, or by relocating operations to a non-unionized location. The
organization may actively encourage employees to vote against the union through antiunion campaigns or even resort to more extreme measures like threatening to shut down
the entire company. This technique is considered risky and costly as it often involves legal
battles, potential damage to the organization's reputation, and disruption to operations.
The U.S. company Boeing has adopted the removal strategy by eliminating the union
from its workplace in South Carolina. The company has relocated its production of the
787 Dreamliner jet from Washington, where the workers are unionized, to South
Carolina, where the workers are not. The company has also persuaded the workers in
South Carolina to vote against the union in a decertification election.
Substitution aims to reduce the perceived need for unionization by addressing employees'
concerns and improving the working conditions in the organization. It involves offering
competitive pay, attractive benefits, and creating a positive work environment that
promotes employee satisfaction and engagement. Additionally, building a favourable
corporate culture that values employee voice, participation, and involvement in decisionmaking processes can help weaken the appeal and support for unions among employees.
The ultimate goal is to make unionization less necessary by satisfying employees' needs
and building a strong relationship between management and the workforce. For instance,
The U.S. company Costco has adopted the substitution strategy by reducing the need for
unionization by providing competitive wages, benefits, and working conditions, as well as
fostering a positive organizational culture and employee engagement. The company has a
low unionization rate of about 10%, compared to its rival Walmart, which has a
unionization rate of about 50%. The company has also maintained a high customer
satisfaction and loyalty rating.
4. Unions may have a substantial influence on many Human Resource Management (HRM)
practises in businesses. Unions' effect on these activities varies depending on the sector, labour
composition, and particular provisions achieved in collective bargaining agreements.
The following is an outline of how unions may affect critical human resource management
practises:
Recruitment & Selection: Unions can influence the recruiting and selection process by negotiating
hiring criteria, seniority-based preferences, and other factors that affect how employees are picked
for positions. Collective bargaining agreements may require that internal applicants with
seniority be given precedence for job postings.
Deselection (Termination and Layoffs): Unions have a say in setting the circumstances under
which employees might be fired or laid off. Seniority-based layoff rules and grievance procedures
are often discussed. Layoffs may be handled based on seniority, and unions may have input into
the process for selecting employees to be laid off.
Staffing and Job Design Flexibility: Unions might negotiate constraints or flexibility in work
design. Union agreements may include job categories, work hours, and work arrangements.
Work-hour flexibility or job rotation may be limited or enhanced dependent on unionmanagement discussions.
Training and Development: Unions may negotiate measures for staff training and development.
They may advocate for initiatives that improve skills and facilitate job advancement. A union
may negotiate training programmes to boost workforce skills, so promoting career growth and job
security.
Performance Evaluation: Unions may provide input into performance review systems to promote
fairness and impartiality. They may discuss the criteria and methods for performance evaluations.
Performance evaluation criteria, including as productivity indicators, may be negotiated with
input from the union.
Base Pay: Unions frequently play an important role in negotiating basic pay rates for employees.
Collective bargaining can help set wage scales, compensation systems, and cost-of-living
adjustments. The union and management can negotiate yearly salary increases or modifications
based on inflation.
Performance Pay: Unions can affect the design and implementation of performance-based pay
schemes. They may be able to negotiate the parameters of awarding performance bonuses or
incentives. The union and management may agree on criteria for performance incentives and
distribution methods, such as a percentage of earnings.
Performance Appraisal: Unions may push for transparent and equitable performance assessment
systems. Grievance processes for performance reviews may be discussed. If an employee disagrees
with a performance review, the union may negotiate an appeals procedure.
Indirect Pay (Benefits): Unions frequently negotiate employee perks like as health insurance,
retirement programmes, and other indirect remuneration. Collective bargaining governs the scope
and degree of benefits. The union and management may agree on contribution rates and coverage
of health insurance plans or retirement benefits.
In conclusion, unions play an important role in defining HRM practises through collective
bargaining. The agreed conditions have an impact on recruiting, selection, deselection, job design,
training, performance management, remuneration, and benefits. The influence can result in a
balance between employees' interests and the organization's strategic aims, ensuring employment
policies are stable and fair.
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