Contract and Negotiation in Hrm by ryt91970


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									           Instructors Notes
• Talk about final exam
• case study p. 657
Introduction to Human Resource
             Chapter 16
  The Union Management Framework
•   Structures of Canadian Unions
•   why worker join unions?
•   ID conditions where unions may occur
•   look at collective bargaining basics
•   key steps in contract negotiation
•   dispute resolutions
•   how unions affect HRM
 Union Management Framework
• Unions created
  because employees are
  unsatisfied with an
• can relate to $$,
  protection, job
  security complaint
  resolution etc.
Union Management Framework
             • Professionals do not
               have unions instead
               have professional
             • reasons: many tend to
               be self employed &
               often due to legislation
             Labor Unions
• Represent the collective employees
• management positions normally not part of
  the union but still responsible for employee
  performance, budgets & profits
• the goals & objectives of the union
  influenced by membership
• unions origin in protecting & improving
  working conditions also increasing pay
Labor Unions
      • Negotiations shape the
        rules for both
        employees and
      • also stipulate wages,
        holidays & benefits to
        be rec’d for services
                   Union Structure
• 4 layers possible
• local, national,
  international, multi union
• Local Unions - most
  important to HRM =
• Locals have:
   – president
   – stewards - treasurer,
     secretary, & reps
             Union Structure
• Craft Unions -           • National Assoc.. -
  organize according to      association of local
  skills/trades              unions assisted through
• Industrial Unions -        lobbing process
  organize all worker of   • CLC (Canadian Labor
  a plant                    Congress) = federation
• Local union operates       of national &
  the grievance process      international unions aids
                             in providing unified
                             voice to govmt
Union Structure
        • International Unions =
          similar to national
          ones except operates
          both in Canada & US
          normally HQ in US
        • example Teamsters,
          United Steel Worker
          of America
Impacts of Union Representation
• Strikes                       • Wages & Benefits
   – most agreements              – unionized workers tend
     settled without strikes        to get higher wages
   – reason for strikes:          – also greater benefits
      • negotiations of a new   • Unions & Productivity
      • inexperienced             – reduced employee
        negotiators                 turnover
      • perceived unfair          – increase productivity
        treatment                   per worker (related to
Legal Environment
         • Laws determine roles
           of labor &
         • normally controlled by
           province except if
           inter provincial or
           government involved
          Legal Environment
• Federal & provincial laws have similar
  – rights to join a union
  – bargaining in good faith
  – no strikes or lock outs during life of the
  – prohibit unfair labor practices
  – conciliation-right to strike or lock out delayed
    until conciliation process exhausted
Labor Relations Boards (LRB)
           • Created to enforce labor laws
           • powers include:
              – determine if a person =
                employee for legal purposes
              – determine if an employee is a
                union member
              – if an org. is the appropriate
                bargaining unit to deal with
              – if a collective agreement is in
                force and if a party is bound by
  Labor Relations Boards (LRB)
• LRB may suggest a
  compromise to a
  problem or impose
• their decision is final
  no appeal
• if charges are filed HR
  person assists Co
  lawyer in case prep
  Collective Bargaining Process
• Union organization -    • Signs of organization
  employees organize         – recent law changes
  themselves with or         – focused unionization of
  without help from            an industry or
  outside                      community
                             – poor benefits, pay,
• union certified based
                               treatment, lack of
  on card signatures or        upward
  election resutls             communications
                             – passing of cards
                               around for signature
Collective Bargaining Process
                  – Change in employee
                  – increased Q about Co
                    policies & benefits
               • should obtain legal
                 advice in wake of a
                 union set up
        Unfair Labor Practices
• Interfering with union    • Bargaining with an
  formation                   employer if not
• discrim employee who        certified to
  decides to exercise       • attempting form union
  rights                      or obtain members at
• intimidation tactics or     work during work hrs
  forcing an employee       • intimidation or
  to become or not            penalizing person who
  become a union              has filed complaint
  member                      against a union
Unfair Labor Practices
           • Engaging or
             encouraging illegal
           • failing to represent
             employees fairly
      Bargaining in Good Faith
• both sides must make     • Negotiations involve
  reasonable efforts to      dealing with wages,
  negotiate an               benefits, hours etc.
  agreement                • should make contract as
• both sides should meet     specific as possible and
  at reasonable times,       provide definitions
  and places to discuss    • once bargaining
  working conditions,        complete need approval
  wages, hours etc.          from union members
Negotiation Breakdown
           • Conciliation -
             government appoints a
             3rd party
           • Mediation - select
             volunteer to reconcile
             differences through a
             3rd party
   Collective Agreement Admin
• Need to ensure
  contract stipulations
• grievance process used
  to handle violations
• B4 grievance is filed
  normally discussion
  between supervisor &
Collective Agreement Admin
             • If not satisfied union rep
               talks with supervisor
             • next step to union
               grievance committee or
               union officials talk with
               higher ups
             • discuss until resolved
             • if cannot agree to
  Collective Agreement Admin
• Grievances s/b resolved quickly & fairly so
  future occurrences can be prevented
• collective agreement should contain
  provisions for settlement w/o work stoppage
• if case decided by arbitration, arbitrator
  selected from provincial listing
• arbitrator’s decision is final
Union Security
       • Closed shop - must be
         union member B4 can
         be employed
       • Union shop - can hire
         individuals but have to
         join union with a
         certain time
       • Open shop - do not
         have to join a union
      Preparation for Negations
• Review previous          • Need to put together
  contract                   bargaining team (industrial
• monitor environment        relations specialist, lawyer,
  (i.e. inflation, past      salary specialist, opt
  demands)                   manager etc.)
• need to develop          • est. how likely a strike may
  bargaining plan with       be & have a plan incase of
  industrial relations       strike action
  persons - cost est..,    • est. order of unions priorities
  diff scenarios etc. to   • note past practices hard to
  be used                    change
Public Sector Bargaining
            • PSAC 3rd largest
              union in the CLC
            • law allows employer
              power to legislate
              certain employees
              providing essential
              services back to work
        HRM Practices in a Union
• Unionized firms tend to:
   – use more formal job
   – less likely to do
     performance evaluations
     for salary, promos, etc.
     (seniority based)
   – less likely to have profit
Strategic Implications
          • Need to be proactive to
            meet needs of Co &
          • if have a union likely need
            labor relations manager
          • same basic operations but
            need to consult collective
            agreement & unions about
            planned changes
          Strategic Implications

• Must also be
  concerned about:
  –   formal grievances
  –   contract negotiations
  –   strikes
  –   lockouts
Strategic Implications
           • often reduction in
             supervisors authority
           • hard to make changes as
             more formal process
           • co & employee
             performance enhanced
             when union &
             management co-operate
           • fig16-22

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