Human Resources Management
MGMT 5605
Chapter 10
Shannon School of Business
Winter 2024
William Bowers
Chapter 10: Labor Relations
OBJECTIVES
1. Be able to discuss the history of labor unions.
2. Explain some of the reasons for a decline in union
membership over the past sixty years.
3. Be able to explain the process of unionization and
laws that relate to unionization.
Chapter 10: Labor Relations
The Nature of Unions
A labor union, or union, can be broadly defined as
workers banding together to meet common goals,
such as better pay, benefits, or promotion rules.
• Canada, unionization rate is approximately 32% v
United States (14%)
• Quebec’s unionization rate is the highest of any
province or state at 40.0 percent
Chapter 10: Labor Relations
The Nature of Unions
Why do employees join unions?
• Feel their economic needs are not being met with
their current wages and benefits (help them receive
better economic prospects)
• Ensure fairness in the workplace
Chapter 10: Labor Relations
The History of Unions
Trade unions were developed in Europe during the
Industrial Revolution (1760’s – 1840’s)
• Employees had little skill and thus the entirety of
power was shifted to the employer
• Many employees were treated unfairly and
underpaid
Chapter 10: Labor Relations
The History of Unions
In the US it coincided with the building of the railroad
system (1860’s)
• Low wages
• High threat of injury or death
• In manufacturing facilities - little or no safety laws
and regulations in place
• Brotherhood of Locomotive Engineers and several
other brotherhoods (focused on specific tasks only
– conductors, brakemen, etc.)
Chapter 10: Labor Relations
The History of Unions
Canada:
• Craft unions in the 1820s made up of a specific
trade or skilled workers (e.g. printers, shoemakers,
masons, bakers and tailors).
• WW1 rapid industrialization led to rapid increase in
unionization
• Post WW11 era saw union membership soar to 4
million members in the 1990’s largely due to
government employees since 1965.
Chapter 10: Labor Relations
Union Structure
• Unions have a pyramidal structure much like that of
large corporations.
• At the bottom are locals that serve workers in a
particular geographical area.
• Certain members are designated as stewards to
serve as go-betweens in disputes between workers
and supervisors.
Chapter 10: Labor Relations
Union Structure
• Local represents workers in their own workplace or
town (e.g., Quebec Crane Operator, Local 791G)
• Parent union decides on union policy for all locals
across the province, country or world (e.g., CSN,
FTQ)
• National unions represent union members across
the country (e.g. PSA, Unifor)
Chapter 10: Labor Relations
Union Structure
• International unions represent union members in
more than one country (e.g. UAW, Teamsters).
• Central labour organizations do not negotiate
union contracts but lobby government to pass laws
favourable to unions (e.g. Canadian Labour
Congress).
Chapter 10: Labor Relations
Unionization Process
Legislation and unionization
• Federal Public Service Labour Relations Act
(PSLRA) is the law that regulates the collective
bargaining and grievance adjudication systems in
the federal public service.
• Provincial legislation, such as the Labour Relations
Code Labour Act Labour Code, regulate various
aspects of labour relations for most workplace
Chapter 10: Labor Relations
Unionization Process
Forming a Union:
PROCESS
ACTION
Union & Employees make contact
As a result of employee dissatisfaction,
make contact and discuss possibility of
joining forces.
Initial Organization Meeting
Initial meeting with union is scheduled to
gather employee support.
Formation of organizing committee
Local union leadership is identified. Its
objectives is to organize a campaign to
obtain the signature of a majority of
workers willing to join the union.
Chapter 10: Labor Relations
Unionization Process
Forming a Union:
PROCESS
ACTION
Application to Labour Relations Board Majority of signatures gathered, the
workers can apply for official recognition
to the Labour Relation Board.
Certificate is issues by the Board
After checking the process and the
signatures, the Board certifies the union
Election of bargaining committee and
contract negotiation
After having been certified, the first step
for the newly formed union is to elect a
bargaining team that will be tasked with
negotiating a contract with the employer.
Chapter 10: Labor Relations
Unionization Process
Legal protection for employees considering unionization
• The case of Walmart (2004)
– After unionization, closed store claiming no longer profitable
– 190 Employees took Walmart to court (eventually Supreme
Court of Canada)
– Finding > Wal-Mart did not adequately prove the four-year-old
store was in financial difficulty > violated a provision of the
Quebec labour code by changing the workers’ conditions of
employment without consent while the terms of the collective
agreement were being negotiated
Chapter 10: Labor Relations
Collective Bargaining
Collective bargaining is the process of negotiations
between the company and representatives of the
union.
Purpose: Management and the union to reach a
contract agreement (collective agreement), which is
put into place for a specified period of time.
Chapter 10: Labor Relations
Collective Bargaining
The 5 step Process
Preparation:
Choosing
Negotiating
Team
Timelines for
Negotiation
– set ground
rules
Each Party
presents
Proposals
Proposals
discussed,
new
meetings
take place
Details of
Agreement
recorded
and voted on
my union
membership
Chapter 10: Labor Relations
Collective Bargaining
Bargaining impasse (unable to reach an agreement)
and pressure tactics
Union:
• Strike - workers walk away from their jobs and refuse to
return until the issue at hand has been resolved - no
work no pay principle applies
• Picketing – Workers parading with signs outside the
workplace > gain public support
• Boycotting - union workers refuse to buy a company’s
products and try to get other people to follow suit.
Chapter 10: Labor Relations
Collective Bargaining
Bargaining impasse (unable to reach an agreement)
and pressure tactics
Management:
• Lockout - closing the workplace to workers
• Replacement workers - non-union workers who are
willing to cross picket lines to replace strikers
– some jurisdictions (British Columbia, Quebec, Nova
Scotia, and Newfoundland) preclude the use of
temporary workers.
Chapter 10: Labor Relations
Collective Bargaining
Working With Unions
• Have a clear understanding of the Collective
Agreement
• Foster a positive relationship to not only assist the
day-to-day operations but also create an easier
bargaining process.
• Solicitation of input from the union before decisions
are made
• Transparent communication
Chapter 10: Labor Relations
Administering the Collective Bargaining Agreement
• A violation of the contract terms or perception of
violation normally results in a grievance
• Grievance is normally initiated by an employee and
then handled by union representatives
• Collective Agreements specify how the grievance is
to be initiated, the steps to complete the procedure,
and identification of representatives from both sides
who will hear the grievance
Chapter 10: Labor Relations
Administering the Collective Bargaining Agreement
There are four main types of grievances.
1. Individual grievance - filed when one member of the
union feels mistreated.
2. Group grievance - several members of the union feel
they have been mistreated and file a grievance as a
group.
3. Principle grievance - filed on behalf of the union and is
usually based on a larger issue, such as a policy or
contract issue.
4. Union or policy grievance - filed if the employee does
not wish to file the grievance individually.
Chapter 10: Labor Relations
Administering the Collective Bargaining Agreement
Basic Grievance Process
Chapter 10: Labor Relations
Administering the Collective Bargaining Agreement
No resolution >
Mediator
• Acts as an impartial third party and tries to resolve
the issue.
• Any recommendation made by the mediator is not
binding for either of the parties involved.
• Can work both on grievance processes and
collective bargaining issues
Chapter 10: Labor Relations
Administering the Collective Bargaining Agreement
Still no resolution >
Arbitrator
• is an impartial third party who is selected by both
parties
• Ultimately makes a binding decision in the situation.
• Arbitration is the final aspect of a grievance.
Chapter 10: Labor Relations
The Future of Unions
Decline in membership
• Decline is a result of North American workers
preferring individualism as opposed to collectivism
(Fischer, 2010).
• Globalization - many jobs that used to be unionized
in the manufacturing arena have now moved
overseas – free trade agreements
• Managements unwillingness to work with unions