Ch. 9: Labour UnionsGr. 11 EconomicsM. Nicholson

Labour Unions In Canada

•Labour unions are certified organizations of workers that negotiate matters with employers such as:

•wages •working conditions • job security and other benefits •37% of non-agricultural labour force in

Canada is unionized (16% USA, 90% Sweden)

Craft & Industrial Unions

•craft unions first to form in Canada in the 1820s made up of a specific trade or skilled workers (e.g. printers, shoemakers, masons, bakers and tailors)

• industrial unions workers in a particular company or industry not based on specific trade / skill (e.g. Canadian Auto Workers i.e. CAW)

Union Membership

•19th C. only 166,000 union members with little growth

•WW 1 (1914-18) and rapid industrialization led to big growth

•failure and violence of Winnipeg General Strike (1919) combined with the Depression of the 1930s hurt unionization until WW 2 (1939-45)

Union Membership

•1945 to 1990s saw union membership soar to 4 million

•unionization of government employees grew rapidly from 1965 to the present

Union Structure

• local represents workers in their own workplace or town

•parent union decides on union policy for all locals across the province, country or world

•national unions represent union members across the country (e.g. Canadian Union of Public Employees i.e. CUPE)

Union Structure

•international unions represent union members in more than one country (e.g. United Steelworkers)

•central labour organizations do not negotiate union contracts lobby government to pass laws favourable to unions (e.g. Canadian Labour Congress i.e. CLC)

Collective Bargaining

•the negotiation between representatives of workers and employer(s) establish terms & conditions of employment that are acceptable to both sides

•power in numbers is the philosophy behind unions and collective bargaining

•single unskilled or semiskilled workers are easily fired and replaced

Collective Bargaining

•union and management try to reach an agreement on such issues as pay, pensions, workload and holidays

•once an agreement is reached a contract called a collective agreement is signed by both sides that state the terms of the agreement and how long it is in effect

Collective Bargaining

•if a dispute arises during the term of the collective agreement than an arbitrator (outside person) settles the dispute

Conciliation / Mediation

•after a contract expires and the two sides cannot come to an agreement on a new contract

•both union and management may agree to allow a conciliator (outside person) hear both sides and try to bring them to an agreement

Strike / Lockout

•Occurs if labour and management cannot come to an agreement and create a collective bargaining agreement (CBA)

•labour may strike (withhold labour services) or management may lockout the workers

Strike / Lockout

•both sides use this tactic as a last resort as it hurts everyone involved including the economy as a whole (e.g. NHL lockout) Players vs OwnersSummary Article What’s fair?

•both sides feel a strike or lockout will force the other side to give in to their contract demands

The Contract

•union security closed shop – membership mandatory OR open shop – membership not mandatory

•wages and benefits cost of living allowances (COLAs) allow wages to keep up with inflation and benefits such as medical, dental, pension and life insurance

The Contract

•seniority laid off based on “last in first out” principle

•grievance procedures procedure to settle disputes between workers and management

Unions & Wages

•restricting supply of labour causes wages to increase

•increasing the demand for labour causes wages to increase

•balances the power of monopolies and oligopolies

Future of Unions

•new technology & globalization have put a strain on unions machines increasingly replace low skill jobs in Canada

•semi-skilled jobs in manufacturing are done in low wage countries like China

Future of Unions

•unions will have to adapt to survive •key train their members to have higher

skills•(complement) the new technology and not

be replaced (substitute) by the new technology