Week 1
The Environment
Environmental Factors
Affecting Labour Relations
Economy
 Technology
 Social
 Political
 Legal

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The Economy

Macroeconomic Environment: the state of the
economy as a whole (economic big picture),
including growth, unemployment rate, economic
downturns, inflation, trade and the Canadian
dollar.
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The Economy

Government Economic Policy:
Fiscal policy
Monetary policy
Inflation and Interest
Regional disparities
Debt (reduction)
Tax policy
Industry
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The Economy
Economic downturns cause unions to be
concerned about job security
 State of the economy might affect (political)
public support for the demands of one of the
parties
 Strikes would more likely be supported by the
general public in times of economic prosperity
than in a recession

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Real vs. Nominal Wages
Nominal wages are wages that have not been
adjusted for inflation
Real wages are wages that have been adjusted
for inflation
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Real vs. Nominal Wages

If inflation was 3% in a year in which employees
received a 2% wage increase, what has happened
to real wages?
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The Economy

Demand: industry and firm
 Sensitivity to demand differs
 Shrinking employment in manufacturing
 Countercyclical industries
 Price elasticity of demand
 Elastic demand vs inelastic demand
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Figure 2-1
Elasticity of Demand
Elastic Demand
Inelastic Demand
P
P
P2
P2
P1
P1
Q2
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Q1
Q
Q2 Q1
Q
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Economic Trends and Issues

Labour Market Changes:
Aging Workforce
Youth Employees
Female Participation
Diversity
Non-standard work
(continued)
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Economic Trends and Issues
(continued)
 Mergers: firms acquiring other firms
 Globalization: worldwide sourcing and
competition
 Trade Liberalization: reduced tariff barriers, e.g.
NAFTA
(continued)
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Economic Trends and Issues
Deindustrialization: shift to services
 Downsizing: job reduction
 Deregulation: market competition replacing
government regulation
 Legacy Costs: future expenses for retirees’
pensions and benefits


(continued)
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Technology:
• Leads to new products, services, and
changes in production methods
• Increased productivity = wage
increase
• Increased productivity = job losses
• Workplace changes
• Effects on collective agreements
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Technology: Possible Issues
Job Security
 Health and Safety
 Compensation
 Privacy
 Communication with employees
 Telework

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Social Environment
Demographics: population diverse- age, gender,
race educational level impacts union/management
relationships
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Social Environment
Values and beliefs regarding:
 Legitimacy of unions
 Public support for unionization
 The right to strike
 Right to Work legislation
 Support or opposition to a particular labour
dispute
 Public support vs power of union
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Political Environment
• Divided jurisdiction
-Federally regulated employees
-Provincially regulated employees
- Divided Jurisdiction
• CCF and NDP
• Anti-labour parties
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Divided Employment and
Labour Jurisdiction
Provincially
regulated employers
Federally regulated
employers
Include:
manufacturing, retail,
service, construction
Include:
interprovincial
transport, banking,
broadcasting
Refer to Jurisdiction of the Federal government and the
provinces at
http://www.hrsdc.gc.ca/eng/lp/spila/clli/irlc/jur-e.pdf
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Legal Environment
Employment Standards Legislation: minimum
terms of employment
 Human Rights Legislation: discrimination,
harassment, duty to accommodate
 Labour Relations Legislation: relationship
between unions and employers
 Charter of Rights and Freedoms

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Legal Environment
Health and Safety
 Employment Equity
 Pay Equity
 Workers Compensation
 Charter of Rights and Freedoms

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Human Rights Legislation
Note: variations between jurisdictions
Age
 Ancestry or Place of Origin
 Dependence on Alcohol or Drugs
 Family Status
 Gender Identity
 Language
 Marital Status
 National or Ethnic Origin
 Pardoned Conviction

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(continued)
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Human Rights Legislation
(continued)
 Physical/Mental Disability
 Political Belief
 Race or Colour
 Record of Criminal Conviction
 Religion
 Sex
 Sexual Orientation
 Social Condition/Origin
 Source of Income
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Forms of Discrimination

Direct: intentional

Indirect: neutral rule that causes an adverse
impact
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Duty to Accommodate

Obligation to ensure participation of individuals
protected by human rights legislation, by taking
measures short of undue hardship.
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Possible Measures To
Accommodate
1.
2.
3.
4.
5.
Allowing a period of absence from work
Changes in timekeeping or attendance
requirements
Changes in shifts or hours of work
Reduced hours
Modifications of job duties
(continued)
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Possible Measures To
Accommodate
(continued)
6.
Changes in the design of the workplace
7.
Training to facilitate a move to another job
8.
Training of other employees
9.
Transfer to an alternative job
10. Demotion to a lower job level
11. Transfer of employee out of the bargaining unit
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Factors Determining Undue
Hardship
1.
2.
3.
4.
5.
6.
Financial cost
Size of the employer's operations
Interchangeability of the workforce and facilities
Safety
Provisions of any collective agreement
The effect on employee morale
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Bona Fide Occupational
Qualification (Requirement)

A discriminatory job requirement that is
permitted if the employer establishes:
1. A purpose rationally connected to the job
2. Adoption in good faith
3. Reasonably necessary and individuals cannot
be accommodated
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Charter of Rights and
Freedoms
Section 2
 Fundamental freedoms: assembly, association,
expression.
 Section 15
 Equality under the law
 Prohibits discrimination
 Application of the Charter
 Limitations on Charter Rights.

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Implications of the Charter
Expansion of human rights protection
 Collective bargaining protected, Right to strike not
protected
 Union dues: mandatory deduction not a violation
 Right to organize: future expansion
 Leafleting and forms of expression.
 Freedom of expression

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