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Labour Unions
What is it?

An organization of workers that
collectively promotes the interest of its
member and negotiates with employers.
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Does much more than affect wage rates
Have been shaping labour relations, laws, and
working conditions in Canada for over 150
years
Three Common Types
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Trade Unions (Craft Unions)
Industrial Unions
Public Sector Unions
Trade Unions

Represent workers in a single occupation
regardless of where they work.

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Ex. International Brotherhood of Electrical
Workers.
Very common in construction industry.
Industrial Unions

Represent all workers in a given industry
regardless of the job that they perform

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Ex. Canadian Auto Workers union (CAW)
Represent workers in the automobile industry
whether they are on the assembly line or
maintenance workers.
Public Sector Unions

Represent workers who are employed by
any of the levels of government in
Canada.


Ex. Public Service Alliance of Canada (PSAC)
Canadian Union of Public Employees (CUPE)
Union Membership

The “Local” – the local branch of the
union.

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Join the union through the local
Pay union dues to the local (local keeps small
portion)
Members vote for officers of the local
Local officers conduct negotiations between
workers and employers
SMALL PART OF THE UNION BUT
IMPORTANT!
Collective Bargaining


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The negotiation between representatives
of workers and employers with the
purpose of establishing terms and
conditions of employment that are
acceptable to both sides.
Collective Agreement = the contract
What if an agreement cannot be reached?
Arbitration

An arrangement in a dispute in which both
labour and management agree to accept
the decision of a third party (arbitrator)
Conciliation/Mediation

A situation in a dispute in which both
labour and management agree to submit
their proposals to a third party. Unlike an
arbitrator, a conciliator cannot bind the
two parties.
Strike

A strike is a temporary work stoppage by
employees



Designed to force an employer to meet the
union’s contractual demands
Majority of workers have to agree to take this
action
Certain conditions must be met (expiry of old
collective agreement, use of conciliation or
mediation)
Lockout

A lockout occurs when an employer shuts
down the place of employment in order to
force workers to accept its contract offer

Equivalent to a strike but from the employers
perspective
Strike/Lockout


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Costs of both are high (wages and output)
Related industries can be affected
Consumers may not be able to obtain
goods or services (bus strike)
Can interfere with pension amount
Other strategies can be used

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Rotating strike
Work-to-rule
Boycott
Rotating Strike

Union organizes the withdraw of services
at individual work sites on a rotating basis
(for usually a day or two)

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Less disruption
Less output and wages lost
Work-to-Rule

When employees perform only the duties
specifically stated in their contracts

Effective when employees find that they are
performing a lot of work after hours
Boycott

In a boycott, people are asked not to
purchase the product produced by the
employer

Lower sales to the point where the employer
might reconsider its position
Forms of Membership


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Open Shop Union – membership is
voluntary.
Closed Shop Union – the employer may
only hire workers who are already
members of the union
Union Shop – hire whoever, but they must
eventually join the union
Fringe Benefits

Payments and services other than wages
that are provided by the employer

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Medical/Dental
Pension
Life insurance
Paid vacation
Cost-of-living Allowances – keep wages
increasing on par with general price increases
Unions and Wages

Unions can use their power to gain wage
increases through:

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Restricting the supply of labour
Increasing the demand for labour
Balancing the power of monopolies and
oligopolies
Restricting the supply of labour

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Long apprenticeships
High union initiation fees
Refuse new members
Refuse to let non-union members do the
job
Increase the demand for labour
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Help employers modernize plants and
improve worker productivity
Encourage the purchase of union-made
products
Reduce amount of non-union made
products
Balance of Power of Monopolies
and Oligopolies

Organize workers to give them more
power and employer less
Word Power

What do you think the following terms mean?
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Sweated labour
Wildcat Strike
Blacklist
Scab
Yellow-dog contract
Feather-bedding
Sweetheart agreement or contract
Stoolie
Questions
1.
2.
3.
4.
5.
Explain the difference between a trade union
and an industrial union
List the terms that are negotiated through
collective bargaining
What kind of help is available to unions and
employers if they cannot reach a collective
agreement on their own?
Besides a strike, what other tools can a union
use to apply pressure?
How do unions attempt to raise wages of their
members besides through collective bargains?