Download Chapter 9 Labour Unions

Chapter 9
Labour Unions
Economics 11
May 2013
• A labour union is a recognized (certified)
organization of workers that negotiates
with employers matters of wages, working
conditions, and other benefits
• The first labour unions to develop in
Canada were unions of workers in a
particular skills or craft  like
shoemakers, bakers and tailors, these
unions are called craft unions
 craft unions began in the 1820s
• Industrial unions represent workers in a
particular firm or industry, for example
CAW (Canadian Auto Workers) represents
all kinds of workers, from floor sweepers to
highly skilled machinists
Union Structure : The Local
•
A person joins the union through the local in his or her town
•
union dues are paid to the local
•
the union member can vote for the offices of the local (including
the president, vice-president, treasurer and secretary)
•
local officers are usually workers like the union member
•
the local officers conduct negotiations between workers and
employers
•
the local union is a small part of the larger union, usually a
provincial or national organization called the parent union
•
a portion of the union dues paid are retained by the local, the
remainder goes to the parent union
•
when an organization representing a substantial part of the labour
force speaks, governments are likely to listen
Collective Bargaining
• collective bargaining is the negotiation
between representatives of workers and
employer with the purpose of establishing
terms and conditions of employment that
are acceptable to both sides
Arbitration
• if there are disputes about interpretation or
allegations of a violation of the contract, then the
contract must be submitted to arbitration
• ARBITRATION is an arrangement or dispute in
which both labour and management agree to
accept the decision of a third party, the arbitrator
• the arbitrators decision is final and binding on
both parties
Conciliation/Mediation
• when a contract expires, and the two sides are unable to
agree on a new contract, they go to a mediation or
conciliation
• conciliation is a situation in a dispute in which both
labour and management agree to submit their proposals
to a third party, a mediator
- the conciliator attempts to bring the two sides to an
agreement
- unlike arbitrators, conciliators do not have the power to
bind the two parties
Strike
• a strike is the withholding of labour services by a labour
union
• this tactic is only used rarely and as a last resort
• the right to strike is very important from the union’s point
of view; withdrawal of labour services is the workers’
ultimate weapon
• in over 95% of the contract negotiations, workers and
management are able to resolve their differences without
resorting to strikes or lockouts
Lockout
• a lockout is when management may lock out its
workers to prevent them from working
• this tactic is only used rarely and as a last resort
• in over 95% of the contract negotiations, workers
and management are able to resolve their
differences without resorting to strikes or
lockouts
The Contract
• the contract covers four major areas:
union security, wages and benefits,
seniority, and grievance procedures
The Contract – union security
•
In the early years unions were trying to get management to recognize them.
• A CLOSED SHOP type of employment means that
workers must become members of the union within a
specified period of time
• An OPEN SHOP type of employment means that
management can hire workers that are not part of the
union and are not required to become union members
•
A CLOSED SHOP situation puts the union in a much stronger position
•
once a union has been recognized, all employees must pay dues, although
they do not have to become union members.
The Contract – wages and benefits
wages and benefits –
• fringe benefits are payments/services
provided by an employer that are in
addition to wages/salary (medical, dental,
life insurance, etc.)
• Contracts often include cost of living allowances that
keep wages increasing on par with general price
increases
The Contract - seniority
seniority• when a job is posted (offered) the person
with the highest seniority will be given
preference
• if times are tough and layoffs are
necessary, the person with the least
seniority will be laid off first
The Contract - Grievance
grievance –
• a procedure established for settling any
disputes that may arise
Unions and Wages
• Unions act in the market with the aim of
improving the conditions of the workers
Unions and Wages
• Ways that unions use their power to gain
wage increases:
1. Restrict the supply of labour
– a union can require long apprenticeships or
high union initiation fees;
– refuse to admit new members or allow nonunion members to do the job
Unions and Wages
• Ways that unions use their power to gain wage
increases:
2. Increase the demand for labour
– union can help employees modernize plants and
improve worker productivity
– can encourage the public to buy union-made
products
– Can pressure the federal government to restrict
competitive products coming in to Canada
Unions and Wages
• Ways that unions use their power to gain
wage increases:
3. Balance of Power of Oligopolies or
Monopolies
– the union may be able to balance out the
power that a large company has in a small
town
sweated labour – labour
employed for long hours at
low wages and often under
unsafe or unsanitary
conditions.
– The places in which this
occurs are called sweatshops.
Wildcat strike – a spontaneous
strike action that is not authorized by
the union and that violates the
collective agreement.
– A wildcat strike may be called if workers
feel that the employers are trying to
violate a previously-concluded
agreement.
The 2006 Toronto Transit Commission wildcat strike was an illegal strike in
Toronto, Ontario, Canada, on May 29, 2006. It was initiated by 800 Toronto Transit
Commission mechanical and janitorial workers who were protesting proposed
changes in work schedules, including permanent re-assignment of 100 workers to
night shifts. The strike began between 4 a.m. and 5 a.m. EDT, and quickly resulted
in a large scale disruption of service when transit drivers honoured the picket line,
effectively shutting down the Toronto transit system. The shutdown left over a million
commuters searching for alternative means of transport.
Blacklist – a list of “undesirable” workers
drawn up by some employers and
circulated among them.
– One reason for workers being labelled
“undesirable” may be that they were members
of, or wished to organize, a union.
Scab – someone who continues to work
when other employees are on strike or
who takes a job with an employer whose
workers are on strike. A strikebreaker.
Yellow-dog contract – in the past some
employers required new workers to sign a
document by which they agreed never to
join a union.
– Workers agreeing to this kind of contract were
called yellow dogs.
Feather-bedding – labour unions can
sometimes convince employers to agree
not to lay off workers, even though their
jobs may no longer need to be performed.
– In this case, the worker may just as well take
along a feather bed and take a snooze at
work. There is nothing for the worker to do
anyway.
sweetheart agreement/contract – an
agreement or contract made through the
collusion of dishonest management and
union officials on terms favourable to the
employer.
– Such an agreement would be reached without
the workers’ approval
stoolie – a person employed to act as an
informer on union members and on union
activities.
• Today’s assignment:
– Write one sentence for each new term from
today. The sentence needs to exhibit your
understanding of the term. Use other
economics vocabulary when possible.
– So in total you will have 8 wonderfully
constructed meaningful sentences which you
will pass it in to me.
Chapter 9 TEST on
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Labour union
Collective bargaining
Arbitration
Strike/lockout
Closed shop and open shop
The four parts of a contract (union security, wages and benefits, seniority,
and grievance procedures)
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The three ways that unions use their power to gain wage increases
sweated labour
Wildcat strike
Blacklist
Scab
Yellow-dog contract
Feather-bedding
sweetheart agreement/contract
Stoolie