Industrial Relations in Canada
Presentation by
Ginette Brazeau, Director of Legislation, Research and Policy
Federal Mediation and Conciliation Service
Labour Program
Human Resources and Social Development Canada
Constitutional Jurisdiction
 Canada has
ten provinces and
three territories
 The Canadian
Constitution
assigns jurisdiction
for certain industries
exclusively to the
federal government
and others to
the provincial
governments.
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The Legal Framework
 The Canadian collective bargaining system is HIGHLY
DECENTRALIZED, but federal and provincial labour
relations legislation share common characteristics.
They all:
– Establish certification procedures for a union to obtain
recognition as the representative of employees in a
particular workplace
– Set the minimum duration for a collective agreement
– Establish procedures for legal strikes and lockouts
– Establish ways of resolving disputes during collective
bargaining (conciliation and mediation) and during the life of
a collective agreement (grievance and arbitration procedure)
– Define unfair labour practices
– Create a labour relations board, which has quasi-judicial
status, to interpret the law and prescribe remedies for
violations
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The Legal Framework (cont’d)
 In most Canadian jurisdictions, separate labour relations
acts govern public sector employees
 Some jurisdictions have separate acts for para-public or
quasi-public sector employees (employees who work for
government-funded organizations, but
don’t directly work for the government)
 Some jurisdictions have additional labour relations
legislation that applies to particular occupations or
industries (e.g. construction). This legislation usually
addresses specific conditions in occupations or industries
that would not be adequately covered under general
labour legislation
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The Federal Jurisdiction
 There are a number of federal labour relations statutes:
– The Canada Labour Code regulates the federal PRIVATE
sector (inter-provincial transport (ground, air, marine and rail), telecommunications,
broadcasting, banking, Federal crown corporations such as Canada Post, National
Museums, and Industries declared by Parliament to be for the general advantage of
Canada or two or more provinces (e.g. Nuclear, Grain);
– The Public Service Labour Relations Act regulates the
bargaining relationship between the federal government and
its own employees;
– The Parliamentary Employment and Staff Relations Act
apples to employees of Parliament; and
– The Status of the Artist Act gives collective bargaining rights
to self-employed entrepreneurs in the cultural sector.
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The Federal Jurisdiction (cont’d)
 About 1.3 million employees are subject to federal
jurisdiction legislation
 Approximately 40% of them are unionized
 Nearly 1,500 collective agreements are negotiated
under the Canada Labour Code - between 500 and
600 each year
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Principles of Canadian Labour Relations
Found in the Preamble Canada Labour Code, Part I:
 Canada is signatory to ILO convention No. 87 concerning Freedom of
Association and Protection of Right to Organize;
 promotes common well-being through the encouragement of free
collective bargaining and the constructive settlement of disputes;
 recognizes and supports freedom of association and free collective
bargaining as the bases for the determination of good working
conditions and sound labour-management relations;
 deems the development of good industrial relations to be in the best
interests of Canada in ensuring a just share of the fruits of progress
for all.
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The Canadian Model
 Main aspects:
– A certified bargaining unit is a group of workers,
generally in a single workplace, considered
appropriate for collective bargaining (community of
interest).
– The certified bargaining agent (union) has the
exclusive right to bargain on behalf of all of the
employees in the bargaining unit.
– The certified bargaining agent is entitled to collect
union dues through a “check-off” system (“Rand
Formula”)
– The certified bargaining agent is subject to a duty of
fair representation.
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The Canadian Model
(cont’d)
– Collective bargaining in Canada is generally
decentralized: in most cases, bargaining takes
place at the plant or enterprise level, between an
employer and a certified bargaining unit
– Collective agreements take the form of fixed term,
legally binding contracts prescribing wages, hours
of work and other working conditions, as well as
matters such as union recognition, job security and
work rules.
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The Canadian Model (cont’d)
– The parties have the duty to bargain in good
faith and make every reasonable effort to
reach a collective agreement
– Strikes and lockouts are illegal during the term
of the collective agreement
– Some jurisdictions, such as the federal
jurisdiction, provide for mandatory conciliation
before the parties acquire the right to strike or
lockout
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Union Recognition
 Employees in a workplace, by majority support, may choose to be
represented by a trade union.
 Certification of bargaining agent is a democratic process:
– requires 50% +1 majority
– evidence can be based on signed membership
cards
– secret ballot vote can be ordered by labour board
 Unions and bargaining units are independent and free from employer
interference.
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Union Recognition (cont’d)
If a majority of employees are dissatisfied with
their union representation, they may select
another union to act on their behalf or they may
apply to decertify their bargaining agent
Labour Board is empowered to hear and decide
applications for certification and decertification of
bargaining agents and complaints against the
bargaining agent made by employees.
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Bargaining Rights and Obligations
 Once a union has been certified, either party can give a “Notice to
Bargain” - both employer and union are required to bargain in good
faith and make every reasonable effort to negotiate a collective
agreement
 During bargaining, the employer cannot unilaterally change any of the
employees’ terms and conditions of employment
 Complaints of unfair labour practices (eg. failure to bargain) can be
made to the labour board, which has the power to order appropriate
remedies
 Neutral third party assistance (conciliation/mediation) is provided free
of charge by the government to assist the parties in their negotiations
(public interest in the peaceful resolution of collective bargaining
disputes).
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Strikes and Lockouts
 Strikes/lockouts are not permitted until certain requirements have been met:
 Mandatory conciliation process has been completed
 Union has obtained a positive strike vote from its members
 The party initiating the work stoppage has given the other party and the
Minister of Labour 72 hours notice
 If there are services affected that are essential to public health or safety, the
parties must have reached agreement as to how those services will be
provided during the work stoppage.
 Note legal obligation: during a strike or lockout, the union, the employer and
the employees must continue to supply services, operate facilities or produce
goods to the extent necessary to prevent an immediate and serious danger
to the safety or health of the public.
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The Collective Agreement
The goal of bargaining is to achieve a Collective Agreement:
 Legally-binding contract establishing
 terms and conditions of employment, including wages, premiums, benefits
and other monetary terms; and
 work rules, including hours of work, seniority, promotion etc.
 Minimum duration of 1 year (but longer collective agreements are more
typical)
 Strikes and lockouts are illegal during the term of the agreement
 Any disputes over the application or interpretation of the collective
agreement must be submitted to grievance arbitration
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IR Indicators Across Canada
 Canada’s unionization rate today is approximately 31.8%, more than
twice that of the United States (13.8%).
 Recent public opinion polls indicate that a majority of Canadian
workers believe unions are worthwhile (Vector Research 2003).
 Since 1975, there has been a significant drop in both the number of
work stoppages and the person-days not worked, indicating stability
in the labour-management relations climate.
 Since 1995, average duration of collective agreements has increased
from 24 to 38 months, reducing the number of bargaining sessions &
thus reducing the potential for work stoppages.
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Federal Mediation and Conciliation Service
 Our Mission:
The Federal Mediation and Conciliation Service
(FMCS) is responsible for providing dispute
resolution and dispute prevention assistance
to trade unions and employers under the
jurisdiction of the Canada Labour Code.
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Federal Mediation and Conciliation Service
 FMCS services:
 Conciliation and mediation assistance to parties engaged in collective
bargaining
 Preventive mediation and grievance mediation services aimed at
resolving differences and improving industrial relations during the closed
period of a collective agreement
 Appointment of grievance arbitrators
 The Labour-Management Partnerships Program, which provides seed
funding for innovative projects designed to improve labour-management
relationships
 Research to aid in the development and implementation
of industrial relations policy
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FMCS Conciliation Process
 Mandatory before parties can strike or lockout during a collective
bargaining dispute
 Government-appointed neutral assigned to meet with the
employer and union to help resolve their differences and achieve
a collective agreement
 Government conciliators and mediators have considerable skill
and expertise in resolving labour disputes – are located in
5 regional offices across Canada
 FMCS settles over 90% of collective bargaining disputes without a
work stoppage
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FMCS Preventive Mediation Program
Relationship-by-Objectives (RBO)
Committee Effectiveness (CET)
Negotiation Skills training
Collaborative Problem-Solving
Facilitation
Grievance Mediation
Designing Grievance Resolution Processes
Joint Planning for Organizational Change
Creating Respectful Workplaces
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Summary
 Canadian free market economy
 The Canadian IR system is a structured framework for interaction
between employers and unions that works
 The collective bargaining process has a negative economic impact if
bargaining fails, however these same economic pressures strongly
influence the parties to reach a settlement
 Positive labour-management relations and cooperative workplaces
contribute to higher productivity
 Government, through the FMCS, plays a key role in promoting
effective workplace relations
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