Role of unions and labour relations l Unions

Role of unions and labour relations l Unions l l Organizations formed for the purpose of representing their members’ interests in dealing with employers Labour relations l A field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements LO 1 Steen/Noe et al. , © 2013 Mc. Graw-Hill Ryerson <1>

Labour relations decisions l Labour relations strategy l l l Negotiating contracts l l Management: whether to work with unions or develop (or maintain) nonunion operations Unions: whether to resist or accept changes Decisions about pay structure, job security, etc. Administering collective agreements l Day-to-day activities which may involve handling disagreements LO 1 Steen/Noe et al. , © 2013 Mc. Graw-Hill Ryerson <2>

History and trends in union membership l l Labour unions existed in Canada since 1812 Labour activities escalated during early 1900’s l l l Workers demanded better wages, shorter workdays, and improved conditions Collective bargaining recognized in 1937 Membership peaked in 1994 (36. 1%) Unionization much higher in public sector than private sector Women outnumber men LO 1 Steen/Noe et al. , © 2013 Mc. Graw-Hill Ryerson <3>

Types of unions Craft Union • Members all have a particular skill or occupation e. g. electricians (IBEW) Local Union • Where most day-to-day interaction between labour and management occurs • Union steward Industrial Union • Members are linked by their work in a particular industry e. g. public employees (CUPE) National/International Union • Association that seeks to advance the shared interests of members e. g. union federation (CLC) LO 1 Steen/Noe et al. , © 2013 Mc. Graw-Hill Ryerson <4>

Unionization rates across job sectors . LO 1 Steen/Noe et al. , © 2013

Rates of union membership by province . LO 1 Steen/Noe et al. , ©

What is the impact of unions on company performance? l Decrease productivity? l l l Due to work rules and limits on workloads set by union contracts Production lost to union actions e. g. strikes Increase productivity? l l l Reduce turnover Seniority-based pay systems remove incentives for employees to compete rather than cooperate May force the employer to improve its management practices and listen to employee ideas LO 1 Steen/Noe et al. , © 2013 Mc. Graw-Hill Ryerson <7>