Industrial relations in Canada [3rd edition.] 9780176580575, 0176580573

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THIRD EDITION

HEBDON BROWN

3RD EDITION

3RD EDITION

ROBERT HEBDON McGILL UNIVERSITY

TRAVOR C. BROWN MEMORIAL UNIVERSITY SERIES EDITOR:

MONICA BELCOURT YORK UNIVERSITY

NELSON ;;..........!

EDUCATION

NELSON EDUCATION Industrial Relations, Third Edition by Robert Hebdon and Travor C. Brown

Vice President, Editorial Higher Education: Anne W illiams Publisher: Jackie Wood Executive Marketing Manager: Amanda Henry Developmental Editor: Elke Price Photo Researcher: Natalie Barrington Permissions Coordinator: Natalie Barrington

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Library and Archives Canada Cataloguing in Publication Hebdon, Robert, 1943, author Industrial relations in Canada I Robert Hebdon, Travor C. Brown. -Third edit ion. Includes bib liographical references and index. ISBN 978-0-17-658057-5 (pbk.) 1. Industrial relations-CanadaTextbooks. I. Brown, Travor, 1968-, author II. Tit le. HD8104.H43 2015 331.0971

C2015-901885-4

ISBN-13: 978-0-17-658057-5 ISBN-10: 0-17-658057-3

To my grandchildren in order ofappearance: Sarah, Dylan, Celeste, Nathaniel, Violet, Maya, and Zev - Robert Hebdon To my wift, Andrea, and our three children, Davin, Alex, and Maddi. On a regular basis you prove to me the power ofcollective bargaining! - Travor C. Brown

BRIEF CONTENTS About the Series xxiv

Preface xxv About the Authors

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Acknowledgments xxxii

Chapter 1

Introduction 1

Chapter2

Labour History 26

Chapter3

Economic, Social, and Political Environments 60

Chapter4

The Legal Environment 91

ChapterS

The Union Perspective 130

Chapter6

The Management Perspective 170

Chapter7

Negotiations 200

ChapterS

Collective Agreement Administration 232

Chapter9

Conflict Resolution: Grievances and Strikes 264

Chapter 10

Third-Party Dispute Resolution Procedures

Chapter 11

Impacts ofUnionization 318

Chapter 12

Public-Sector Issues 350

300

Appendix A: CoUective Bargaining Simulation: Marine Metals Ltd. (MML) 382 Appendix B: CoOective Bargaining Simulation: Wally's]anitorial Services 393 Appendix C: Arbitration: The Case ofEmma Williams 400 Glossary 406 Index 411

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CONTENTS About the Series xxzv •

Preface xxv About the Authors xxxz

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Acknowledgments xxxii Chapter 1

Introduction 1

Learning Objectives 1 Opening Vignette: Mount Allison University Strike 2 What Is Indus trial Relations? 2

Industrial Relations 3 IR Today 1.1: Industrial Relations in Universities 3

Labour Relations 4 Human Resources Management 4 Employee Relations 4 Employment Relations 5 Industrial Relations and This Textbook 5 The Industrial Relations System 5

Dunwp's Industrial Relations System Model 6 Criticisms ofDunlop's Industrial Relations System 7 External Inputs 8 IR Today 1.2: Temporary Foreign Workers and Employment in Canada 10

Actors 13 Internal Inputs 14 Conversion Mechanisms 14 IR Notebook 1.1: Relevant Journals 15

Outputs 16

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Views oflndustrial Relations 17

Neoclassical Economics View 17 Pluralist and Institutional View 17 Human Resources/Strategic Choice 18 Political Economy 18 Outline of the Text 19 Summary 19 KeyTerms 20 Discussion Q!testions 20 Using the Internet 21 Exercises 21 Case: UNB Strike 22 Endnote 23 References 23

Chapter2

Labour History 26

Learning Objectives 26 Opening Vignette: The Winnipeg General Strike 27 Preunionization 27

Master-Servant Relationship 28 The Movement to Unionization 28

The Ear{y l'ears (Pre-1900) 28 IR Notebook 2.1: The Nine-Hour Movement 30 IR Notebook 2.2: Daniel O'Donoghue: The Father of the Canadian Labour Movement 34

1900-1920: The l'ears ofStruggle 35 The 1930s and 1940s: Decline and Resurrection 37 The 1950s and 1960s: Reconciliation and Expansion into the Public Sector 39 The 1970s and 1980s: Changing Relationships with Governments and the United States 41 The 1990s and Beyond: Increased Resistance 43

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Implications for the Future of Labour 46

Larger Unions 47 Social Unionism 47 IR Today 2.1: Business versus Social Unionism 48

Global v. National 48 Summary 49 KeyTerms 49 Weblinks 50 Discussion Q!testions 50 Using the Internet 51 Exercises 51 Case: From UAW to CAW to Unifor 52 References 53

Chapter3

Economic, Social, and Political Environments 60

Learning Objectives 60 Opening Vignette: Canada's Income Gap Is among Fastest Growing in OECD 61 The Economic Context 62

Macroeconomic Policy 62 The Labour Market 63 IR Today 3.1: Sears Canada to Cut Jobs through Outsourcing 65

Supply ofLabour 66 IR Notebook 3.1: For Canada, Immigration Is a Key to Prosperity 66

Work-Leisure Decisions 67 IR Notebook 3.2: New Reforms for the Temporary Foreign Worker Program 69 Social Conditions 70

Public Attitudes to Unions 70 IR Notebook 3.3: Poll Results Show Majority of Canadians Hold Favourable View of Unions 71

Work Attitudes 72

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IR Notebook 3.4: Putting Child Poverty in Context 73

An Aging Population 77 Employer Challenges to Workforce Aging 77 Impact ofCompositional Changes on Unions 78 Labour and Employment Relations ChaUenges 79 The Political Environment 81

Globalization and Politics 83 Summary 83 KeyTerms 83 Weblinks 84 Discussion Q!testions 84 Using the Internet 84 Exercises 85 Case: Outsourcing and Canada-A Good Place to Outsource To! 85 Endnote 86 References 86

Chapter4

The Legal Environment 91

Learning Objectives 91 Opening Vignette: Contract Sets New Precedent for Rights of Migrant Workers 92

wtlgner Act History 92 The Snider Case 93 Canada~s P. C.

1003 94

Union Recognition Under the wtlgner Act Model 94

Labour Boards 95 IR Notebook 4.1: Unfair Labour Practices Under the P.E.l. Labour Act 97

Duty ofFair Representation 98 Collective Bargaining 98

Good Faith Bargaining 98 Dispute Resolution 98 xii

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Examples ofthe Expanded Government Role in CoUective Bargaining 99 Replacement Worker Laws 100 Collective Agreement Administration 100 IR Today 4.1: Excerpt from Nova Scotia Trade Union Act 101 IR Today 4.2: Ontario Labour Relations Act: Arbitrator Powers 102 Role of the Charter 102 IR Today 4.3: CharterofRights and Freedoms 103

Review ofSupreme Court Charter Decisions 103 A New Direction for the Supreme Court 107 IR Today 4.4: Supreme Court Relies on ILO Standards 107 IR Today 4.5: Supreme Court Rules on Collective Bargaining for Agricultural Workers 108

A Right to Strike 109 IR Today 4.6: Supreme Court "Constitutionalizes" a Right to Strike 110 IR Today 4.7: Walmart in Violation ofQtebec's Labour Code 110 Employment Law 111

Employment Conditions 111 Employee Rights 113 International Law 115 Summary 116 Key Terms 116 Discussion Qtestions 116 Using the Internet 117 Exercises 11 7 Case 1: Recognition under the Canada Labour Code 118 Case 2: An U SWA Organizing Drive at Canada Metals, Winnipeg 119 References 119 Appendix A: Equal Pay Legislation in Canada by Jurisdiction 122

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Chapter5

The Union Perspective 130

Learning Objectives 130 Opening Vignette: Call Centre Workers at Answernet Telepartners Join the Union-UFCW 206 131 Union Purposes and Philosophies 131

Union Purposes 131 Philosophies 133 IR Today 5.1: Craft Union: International Brotherhood of Electrical Workers Constitution 135 IR Today 5.2: Craft Union: Ontario Nurses' Association 135 IR Notebook 5.1: Unifor Aims to Defeat Harper Tories 138 IR Today 5.3: Industrial Union: United Food and Commercial Workers Canada 139 IR Today 5.4: Public-Sector Union: Canadian Union of Public Employees Constitution 140 IR Today 5.5: CLAC 141 IR Today 5.6: Inside NHLPA: Business Affairs 142 Organization and Structure 142

Union Size 142 IR Today 5. 7: Telecommunications Workers Union Votes to Merge with United Steelworkers 144

Union Affiliation 14 5 IR Today 5.8: Canadian Labour Congress Constitution 146 IR Notebook 5.2: Toronto and York Region Labour Council Campaigns 148 Why Employees Join Unions 153

Collective Voice 153 Utility 153 Politics or Ideology 153 Why Employees Leave Unions 154 Membership Patterns 154

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The Changing Face ofUnionization 158

The Growing Proportion ofWomen 158 Densities by Age 15 8 Differences by Region 15 9 Labour and the Environment 160 IR Today 5.9: Excerpt from CLC Plan for Green Jobs 160

Blue-Green Coalitions 160 Summary 162 Key Terms 162 Weblinks 162 Discussion Q!testions 163 Using the Internet 163 Exercises 164 Case: Democracy and Finances in an OPSEU Local 164 References 166

Chapter 6

The Management Perspective 170

Learning Objectives 170 Opening Vignette: Canadian Hockey League: Employees or Student Athletes? 171 The Evolving Managerial View 171

Master-Servant Relationship 172 Scientific Management (Faylorism) 172 IR Notebook 6.1: Ray Kroc, Frederick Taylor, and the Q!test for Efficiency 173

Human Relations 173 Human Resources Management (HRM) 174 The Growing Role of Management 175

The Strategic Choice Framework 175 Industrial Relations and Business Strategies 178

Management Strategies Related to Unions 179

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IR Today 6.1: Union Avoidance Training 181 Current Managerial Perspectives and Trends 183

High-Performance Workplaces and Work Practices (HPWPs) 183 Nonunion Employee Representation 186 IR Notebook 6.2: Is the NLMA a Professional Association or a Union? 189

Nonstandard "WlJrk Arrangements 190 Summary 191 Key Terms 191 Weblinks 191 Discussion

~estions

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Using the Internet 192 Exercises 193 Case: Provincial Wine Corporation (PWC) 193 References 195

Chapter 7

Negotiations 200

Learning Objectives 200 Opening Vignette: Strike by Canadian Diplomats Worldwide-Ends 201 Conflict-of-Interest Assumption 201 How Collective Bargaining Differs from Individual Negotiations 202 The Four Subprocesses of Collective Bargaining 203

Distributive Bargaining 203 Integrative Bargaining 203 Intra-Team Bargaining 204 Attitudinal Structuring 204 Strategies and Tactics of the Bargaining Subprocesses 205

Distributive Bargaining Tactics 205 Integrative Bargaining Tactics 205 Intra-Team Tactics 206 Building Trust Tactics 206 •

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A CoOective Bargaining Model 206 Union- Employer Pressures 209 IR Today 7.1: NHL Lockout Over Mter 16-Hour Negotiating Session 210

Employer- Union Member/Employee Pressures 212 Union- Union Member Pressures 212 Bargaining Step by Step 213 The Dos and Don'ts ofBargaining 214 IR Today 7.2: At Auto Talks, Women Grabbed the Front Seats 215 Interest-Based Bargaining (IBB) 216

What Is It? 216 IBB Steps 218

Why Is IBB So Difficult to Achieve? 218 Does IBB U'Ork? 219 Summary 222 Key Terms 222 Weblinks 222 Discussion O!Iestions 223 Using the Internet 223 Exercises 223 Case: The Strike at Vale, 2009-2010 224 Endnotes 230 References 230 ChapterS

Collective Agree.tnent Administration 232

Learning Objectives 232 Opening Vignette: University Hospital 233 Role and Layout of a Collective Agreement 233 IR Notebook 8.1: Sample Table of Contents: University of Toronto 234

Types of Clauses 235 Rights ofParties 23 6 NEL

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IR Today 8.1: Tone of the Union-Management Relationship 238

Organization ofWork 240 Labour Relations 242 Education, Training, and Employee Development 246 Conditions of Work 247 IR Today 8.2: Collective Agreement Language Concerning Cell Phones 252 Special Issues in Collective Agreements 252

Bumping 252 Super Seniority 253 The Subtleties ofLanguage 254 IR Notebook 8.2: Complexity of Collective Agreement Language 254 Summary 255 Key Terms 25 6 Weblinks 256 Discussion ~estions 25 6 Using the Internet 257 Exercises 257 Case: Mine Restructuring 259 Endnotes 260 References 261

Chapter9

Conflict Resolution: Grievances and Strikes 264

Learning Objectives 264 Opening Vignette: B.C. Teachers' Strike 265 Strikes 266

Defining Industrial Disputes 266 Strike Steps 268 IR Today 9.1: Requirements for a Legal Strike 269

Strike Statistics 269

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Theories, Causes, and Impacts of Strikes 278

Strike Theories 278 Strike Causes 279 Strike Impacts 281 IR Today 9.2: Unexpected Results: The Relationship between Strikes and Legislation 282 Grievances in Unionized Workplaces 282

Grievances Defined 283 The Grievance Procedure 284 Grievance Initiation 286 Grievance Effectiveness and Outcomes 288 IR Notebook 9.1: Grievances as a Union Advantage 289 Nonunion Grievances 290

Types ofNonunion Grievances 2 90 Why Would Management Optfor a Nonunion Grievance Procedure? 291 Summary 291 Key Terms 292 Weblinks 292 Discussion ~estions 292 Using the Internet 292 Exercises 293 Case: Halifax Transit Dispute 294 Endnotes 295 References 295

Chapter 10

Third-Party Dispute Resolution Procedures 300

Learning Objectives 300 Opening Vignette: Walmart Black Friday Protests Hit Major Cities with Calls for "$15 and Full Time" 301

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Grievance Arbitration 301

Rights Arbitration 302 IR Today 10.1: Cygnus Gymnastics 306

The Forms ofArbitration 308 The Problems with Current Grievance Arbitration Processes 309

Interest Arbitration 31 0 Other Conversion Mechanisms 311

Conciliation and Mediation 311 Alternative Dispute Resolution (ADR) Options 311 Alternative Dispute Resolution in Nonunion Firms 312 IR Notebook 10.1: Grievance Mediation: An Alternative to Costly Arbitration 312 Summary 313 Key Terms 314 Weblinks 314 Discussion ~estions 314 Using the Internet 314 Exercises 315 Case: Island Air 316 Endnote 316 References 316

Chapter 11

Impacts of Unionization 318

Learning Objectives 318 Opening Vignette: New Pension Deal for Public-Sector Unions 319 Impact ofUnions on Management Practices 319

Staffing 320 Training and Development 321 Performance Appraisal 322 job Evaluation andjob Analysis 322 Compensation 323

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IR Notebook 11.1: The Union Dilemma: Pay or Jobs? 323 IR Today 11.1: Impact of Unionization on the Broader Economy and Society 326

Equality, Participation, and Safety 329 HR Practices in Unions 330 Overall Impact 330 Unions and Firm Measures 331

Productivity 331 Profitability and Innovation 332 Investment and Return on Investment 333 The Impact ofUnionization on Employee Measures 334

Voluntary Turnover (Quit Rates) 334 job Satisfaction and Intention to {}jtit 335 Organizational Commitment 33 6 Union Satisfaction and Commitment 337 Work Climate 338 Employees, Desire to Leave a Union 338 Summary 339 Key Terms 33 9 Weblinks 340 Discussion

~estions

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Using the Internet 341 Exercises 341 Case: What If the Canadian Hockey League Unionizes? 342 References 343 Chapter 12

Public-Sector Issues 350

Learning Objectives 350 Opening Vignette: ~ebec Municipal Workers in One-Day Strike to Protest Pension Reform Plan 351

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Why Study Public-Sector Labour-Management Relations? 351

A Significant Industry 351 Highly Unionized 3 51 Important Part ofthe Labour Movement in Canada 351 Different Legislative Framework 353 Role ofGovernment 353 Imperfect Labour Market 354 Politics and Public Opinion 354 IR Today 12.1: GO Bus Riders Warned to Make Alternate Arrangements as Possible Strike Looms 354 History of Public-Sector Bargaining 355

Union Growth Factors 3 55 IR Today 12.2: Memphis Sanitation Strike, 1968 356 An Economic Analysis of Union Power 357 Dispute Resolution in the Public Sector 358

More Recent Developments in Dispute Resolution 359 IR Notebook 12.1: B.C. Teachers' Strike 2014: Union Voting on Full-Scale Job Action 361

Innovations in Dispute Resolution 363 The Four Generations of Public-Sector Bargaining 363 Management Issues 364

Restructuring: An International Phenomenon 364 Canadian Context 365 Implications of Restructuring for Union-Management Relations in Canada 366

Government Policies 366 IR Today 12.3: Unions Plan Public Fight over Federal Labour Reforms 367

Management Issues 368 Union Issues 369 Summary 371

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Key Terms 371 Weblinks 371 Discussion Q!testions 371 Using the Internet 372 Exercises 372 Case: The Case of the Ontario Office of the Registrar General 372 Endnotes 378 References 379

Appendix A: CoUective Bargaining Simulation: Marine Metals Ltd. (MML) 382 Appendix B: CoUective Bargaining Simulation:

WaOy:~s janitorial Services

393

Appendix C: Arbitration: The Case ofEmma Williams 400 Glossary 406 Index 411

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ABOUT THE SERIES The management of human resources has become the most important source of innovation, competitive advantage, and productivity, more so than any other resource. More than ever, human resources management (HRM) professionals need the knowledge and skills to design HRM policies and practices that not only meet legal requirements but also are effective in supporting organizational strategy. Increasingly, these professionals turn to published research and books on best practices for assistance in the development of effective HR strategies. The books in the Nelson Education Series in Human Resources Management are the best source in Canada for reliable, valid, and current knowledge about practices in HRM. The texts in this series include:

• • • • • • • •

Managing Performance through Training and Development Management ofOccupational Health and Safety Recruitment and Selection in Canada Strategic Compensation in Canada Strategic Human Resources Planning Industrial Relations in Canada Research, Measurement, and Evaluation ofHuman Resources International Human Resources: A Canadian Perspective

The Nelson Education Series in Human Resources Management represents a significant development in the field ofHRM for many reasons. Each book in the series is the first and now best-selling text in the functional area. Furthermore, HR professionals in Canada must work with Canadian laws, statistics, policies, and values. This series serves their needs. It is the only opportunity that students and practitioners have to access a complete set ofHRM books, standardized in presentation, which enables them to access information quickly across many HRM disciplines. Students who are pursuing the CHRP (Certified Human Resource Professional) designation through their provincial HR associations will find the books in this series invaluable in preparing for the knowledge exams. This one-stop resource will prove useful to anyone looking for solutions for the effective management of people. The publication of this series signals that the HRM field has advanced to the stage where theory and applied research guide practice. The books in the series present the best and most current research in the functional areas of HRM. Research is supplemented with examples of the best practices used by Canadian companies that are leaders in HRM. Each text begins with a general model of the discipline and then describes the implementation of effective strategies. Thus, the books serve as an introduction to the functional area for the new student of HR and as a validation source for the more experienced HRM practitioner. Cases, exercises, and endnotes provide opportunities for further discussion and analysis. As you read and consult the books in this series, I hope you share my excitement in being involved and knowledgeable about a profession that has such a significant impact on the achievement of organizational goals, and on employees' lives.

Monica Belcourt, Ph.D., CHRP Series Editor October 2014

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PREFACE The field of industrial relations is both complex and fascinating. At its heart, it examines the relationship among three actors: labour (employees and their associations), management (employers and their associations), and government and associated agencies. Shifts in the makeup of the Canadian economy, changes in the demographics of the workforce, and ongoing difficulties related to technological and legal frameworks have proven challenging to all three actors. It is indeed an interesting time to study the field of industrial relations, and the authors are delighted to launch the third edition of Industrial Relations in Canada during this period of change. Before completing Ph.D.s at the University ofToronto and joining academia, the authors of this textbook were practitioners in the field and therefore offer a unique perspective. Robert Hebdon worked for several years with the Ontario Public Service Employees Union (OPSEU), while Travor Brown worked in a variety of human resources and labour relations roles with Abitibi-Price and Nortel Networks. Robert also worked as a neutral arbitrator in between union and academic careers. Moreover, their collective experience includes public-, private-, and nonprofit-sector as well as U.S. and Canadian work experience. This combination of practical and "real world" experience is apparent throughout the chapters of this textbook. Given the authors' combination of practical and academic experience, this text is grounded in leading research and examines true-to-life issues. Each chapter starts with an opening vignette, contains a minimum of two inserts (labelled "IR Today" and "IR Notebook") concerning authentic IR issues, and includes examples, many from real Canadian organizations. In addition, each chapter ends with a case, discussion questions, and Internet exercises. All these elements are designed to bridge the academic content of the text and the real-world issues in the field . Given the vast quantity of material readily available on the popular website YouTube, we have also included numerous YouTube references in this edition. These, too, are indicated with a Weblink icon. As former students, we appreciate the need for key points and hands-on activities. Therefore, we have included learning objectives at the beginning of every chapter, key terms in bold in the text and in the margins (and at the end of each chapter), and end-ofchapter summaries. We have also included two collective bargaining activities and several arbitration cases. These activities can be assigned by the instructor to give students a taste of the topic at hand from a practitioner's perspective. We hope that students and instructors will find the third edition of this textbook helpful as they seek to understand this dynamic area. We look forward to their feedback and suggestions for future editions.

NEW TO THE THIRD EDITION In response to feedback from faculty reviewers and users who have read earlier editions of Industrial Relations in Canada, we have made significant changes to this edition as highlighted below. Also, over 35 photos have been added with captions to capture the essence of the topics discussed, and the interior design has been updated and now appears in colour. NEL

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CHAPTER 1 INTRODUCTION • Chapter 1 has been thoroughly updated to include coverage of recent faculty strikes and the temporary foreign worker debate and impact on youth employment (/R Today 1.2). • The coverage of the Dunlop model is presented in a more concise manner while still retaining its key elements. • Public and private examples have been added to help students better understand how they can apply their IR knowledge.

CHAPTER 2 LABOUR HISTORY • Stronger emphasis has been placed on Canadian labour history, with less focus on U.S. events, while still covering the importance of how U.S. events have shaped Canada. • A new section has been added covering the future of industrial relations in Canada and how current and past history may shape its future . • The end-of-chapter case has been updated to reflect the merger of the CEP and CAW to form Unifor.

CHAPTER 3 ECONOMIC, SOCIAL, AND POLITICAL ENVIRONMENTS • The new opening vignette discusses Canada's widening income gap between top earners and others in society. • Statistics and coverage, including boxed features, have been thoroughly updated with discussions of job losses in Canada, unfounded myths of the economic impact of immigrants, Canada's Temporary Foreign Worker program, child poverty, and Canada's changing workforce composition.

CHAPTER 4 THE LEGAL ENVIRONMENT • The most recent Supreme Court decisions on bargaining rights for the RCMP and the right to strike are included.

CHAPTER 5 THE UNION PERSPECTIVE • A new opening vignette has been added: Call Centre Workers at Answemet Telepartners Join the Union. • Union membership data has been updated; new figures illustrate union density by gender, and unionization rate by age and by region. • A new end-of-chapter case has been added, entitled Democracy and Finances in an OPSEU Local.

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CHAPTER 6 THE MANAGEMENT PERSPECTIVE • Numerous new Canadian examples have been added, as well as a new opening vignette (Canadian Hockey League) and text boxes. • Historical detail is presented more concisely to enable a stronger focus on current events. • New coverage of interactional justice and nonstandard work arrangements has been added. • There is a greater focus on three management strategies and their impacts on unions: high performance HRM, nonunion representation (NER), and nonstandard work arrangements. • The coverage ofTQM and associated areas of LEAN and ISO has been reduced.

CHAPTER 7 NEGOTIATIONS • A new opening vignette on the Canadian diplomat strike and a new IR Today about the NHL Lockout have been added.

CHAPTER 8 COLLECTIVE AGREEMENT ADMINISTRATION • The majority of coverage of grievances and arbitration has been placed in Chapters 9 and 10, respectively. • Examples and collective agreement quotes have been updated throughout the chapter. The current examples come from a wide range of jurisdictions and industries. • To help students better understand how to interpret clauses, new exercises and examples have been added. For example, exercises to interpret layoff and seniority clauses and salary scales (using the current trend of signing bonuses) have been included, and two new examples showing different cost implications of different clauses/options have been added. • In order to make the clauses relevant to students, examples from service industries, airlines, and education have been added, including a new IR Today 8.2: Collective Agreement Language Concerning Cell Phones.

CHAPTER 9 CONFLICT RESOLUTION: GRIEVANCES AND STRIKES • Given their importance, internal conflict resolution procedures are covered in Chapter 9, while third-party conflict resolution, including arbitration, is now covered in Chapter 10. • Coverage of illegal work stoppages/wildcat strikes (for example, Air Canada) has been enhanced, and new coverage of work to rule (such as the Newfoundland nurses' overtime strike), essential services agreement, mandatory strike vote, replacement workers, and reinstatement rights has been added.

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CHAPTER 10 THIRD-PARTY DISPUTE RESOLUTION PROCEDURES • Third-party conflict resolution procedures, including arbitration and mediation, are now more clearly and fully discussed in their own chapter.

CHAPTER 11

IMPACTS OF UNIONIZATION

• Coverage of profit, innovation, investment, employment, and ROI has been expanded, with a broader focus on "firm measures." • New examples including high-tech, space, and knowledge industries have been added, along with a new section on innovation.

CHAPTER 12 PUBLIC-SECTOR ISSUES • A new opening vignette on the Qyebec municipal workers' one-day strike to protest pension reform plan has been added. • To highlight key points that flow from the chapter, a new IR Today box on GO Transit and a new IR Notebook about the B.C. teachers' strike have been added. As a part of the process needed to earn a professional HR designation, granted by the HR Provincial Associations, applicants must undergo two assessments, one a knowledge-based exam and a second assessment based on experience. Because the competencies required for the knowledge exams may differ by province, we have not provided lists or links in this edition. Those interested in obtaining an HR designation should consult the HR association in their province.

II INSTRUCTOR RESOURCES NELSON EDUCATION TEACHING ADVANTAGE

The Nelson Education Teaching Advantage (NETA) program delivers research-based instructor resources that promote student engagement and higher-order thinking to enable the success of Canadian students and educators. Be sure to visit Nelson Education's Inspired Instruction website at www.nelson.com/inspired to find out more about NETA. Don't miss the testimonials of instructors who have used NETA supplements and watched student engagement increase! The following instructor resources have been created for Industrial Relations in Canada, Third Edition. Access these ultimate tools for customizing lectures and presentations at www.nelson.com/instructor.

NETA TEST BANK This resource was prepared by Ron Alexandrowich at York University. It includes over 420 multiple-choice questions written according to NETA guidelines for effective construction and development of higher-order questions. Also included are true/false and short-answer questions.

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The NETA Test Bank is available in a new, cloud-based platform. Nelson Testing Powered by Cognero® is a secure online testing system that allows instructors to author, edit, and manage test bank content from anywhere that Internet access is available. No installations or downloads are needed, and the desktop-inspired interface, with its dropdown menus and familiar, intuitive tools, allows instructors to create and manage tests with ease. Multiple test versions can be created in an instant, and content can be imported or exported into other systems. Tests can be delivered from a learning management system, the classroom, or wherever an instructor chooses. Nelson Testing Powered by Cognero for Industrial Relations in Canada can also be accessed through www.nelson .com/instructor.

NETA POWERPOINT Microsoft® PowerPoint® lecture slides for every chapter have been created by Linda Yates Cameron of Sheridan College. There is an average of25 slides per chapter, many featuring key figures, tables, and photographs from Industrial Relations in Canada. NETA principles of clear design and engaging content have been incorporated throughout, making it simple for instructors to customize the deck for their courses.

NETA INSTRUCTOR•s MANUAL The Instructor's Manual to accompany Industrial Relations in Canada, Third Edition has been prepared by the text's authors, Robert Hebdon and Travor Brown. This manual contains learning objectives, chapter summaries, suggested classroom activities, and suggested answers to all end-of-chapter discussion questions, using the Internet features, exercises, and cases, and teaching notes for the end-of-book simulations to give instructors the support needed to engage students within the classroom.

IMAGE LIBRARY This resource consists of digital copies of figures, short tables, and photographs used in the book. Instructors may use these images to customize the NETA PowerPoint or to create their own PowerPoint presentations.

DAY ONE Day One- Prof InClass is a PowerPoint presentation that instructors can customize to orient students to the class and their textbook at the beginning of the course.

MINDTAP Offering personalized paths of dynamic assignments and applications, MindTap is a digital learning solution that turns cookie-cutter into cutting-edge, apathy into engagement,

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and memorizers into higher-level thinkers. MindTap enables students to analyze and apply chapter concepts within relevant assignments, and allows instructors to measure skills and promote better outcomes with ease. A fully online learning solution, MindTap combines all student learning toolsreadings, multimedia, activities, and assessments- into a single Learning Path that guides the student through the curriculum. Instructors personalize the experience by customizing the presentation of these learning tools to their students, even seamlessly introducing their own content into the Learning Path.

II STUDENT ANCILLARIES MindTap·

MindTap: Stay organized and efficient with MindTap- a single destination with all the course material and study aids you need to succeed. Built-in apps leverage social media and the latest learning technology. For example: • ReadSpeaker will read the text to you. • Flashcards are pre-populated to provide you with a jump start for review- or you can create your own. • You can highlight text and make notes in your MindTap Reader. Your notes will flow into Evernote, the electronic notebook app that you can access anywhere when it's time to study for the exam. • Self-quizzing allows you to assess your understanding. Visit http://www.nelson.com/student to start using MindTap. Enter the Online Access Code from the card included with your text. If a code card is not provided, you can purchase instant access at NELSONbrain.com.

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ABOUT THE AUTHORS Robert Hebdon Professor Bob Hebdon joined McGill University's Faculty of Management in 2000. After graduating from the University ofToronto with an M.A. in economics in 1968, he worked for the Ontario Public Service Employees Union for 24 years. He completed his Ph.D. in industrial relations at the Centre for Industrial Relations at the University of Toronto in 1992. His academic career began at Cornell University, where he taught collective bargaining for seven years at the School of Industrial Relations. In 1999 he taught at the University of Manitoba in the Faculty of Management. Professor Hebdon also has experience as a neu~ tral in labour-management relations acting as an arbitrator in Ontario. He won the 2007 Morley Gunderson Prize in Industrial Relations in recognition of his outstanding professional achievement and his significant service to the Centre for Industrial Relations and Human Resources at the University of Toronto. His research interests include public-sector labour relations and restructuring, collective bargaining, dispute resolution, and industrial conflict. He has published in a wide variety of major journals, including American

Economic Review, Industrial and Labor Relations Review, Berkeley journal of Industrial Relations, journal of Policy Ana{ysis and Management, Relations industrielles,journal of Collective Negotiations in the Public Sector, Labor Studies journal, and Arbitration Yearbook.

Travor C. Brown Dr. Travor C. Brown is the Director of the Masters of Employment Relations (MER) Program and a Professor, Labour Relations & Human Resources Management with Memorial University. Since joining Memorial University, he has received several teaching and research awards. He has also taught at the University of Toronto and University of Ulster (Northern Ireland). He holds a B.A. (Memorial University), a Master of Industrial Relations (University of Toronto), and a Ph.D . in Industrial Relations (University of Toronto). Prior to taking academic appointments, Dr. Brown worked with Nortel Networks and Abitibi-Price. With these firms, he gained extensive real-world labour relations and human resources experience in Canada and the United States. This industry experience continues today, as Dr. Brown regularly provides consulting services to a number of private, public, and nonprofit • • orgamzat10ns. Dr. Brown's research tends to focus on areas related to diversity/equity, training and development, and performance appraisal. Many of his studies have taken place in unionized workplaces. His work has been published in several journals, including Personnel Psychology,journal ofManagement Education, Relations industrieUes, Canadian

journal ofBehavioural Science, Canadian journal ofAdministrative Sciences, Human Resources Development Quarter{y, Applied Psychology: An International Review, and SmaU Group Research.

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OWLEDGMENTS As we move to the third edition of this textbook, we want to acknowledge and thank the many people who aided us in the process. While our names may appear on the cover, this text would have never come to life without the assistance of the following people. First are the reviewers who took the time to read (and provide feedback on) early versions of the chapters and those who assisted in reviewing the earlier editions of this textbook. Their helpful suggestions resulted in a number of improvements to the text, and we thank each of them: Ron Alexandrowich (York University), Stan Arnold (Humber College), Tim Bartkiw (Ryerson University), Lori Buchart (Mount Royal University), Shelagh Campbell (Saint Mary's University), Gordon Cooke (Memorial University), Dennis Pong (Seneca College), Amanda Hudson (York University), Randy Joseph (University ofLethbridge), Ted Mock (Seneca College), Carol Ann Samhaber (Algonquin College), Andrew Stevens (University of Regina), Scott Walsworth (University of Saskatchewan), and Linda Yates Cameron (Sheridan College). Second, we thank the research assistants who spent many hours online, at the library, or editing chapters: Adrian Beaton and Vipul Khatter. We also thank the research assistants who assisted us with the previous edition: Kimberly Chaulk, Tara-Lynn Hillier, Krista Stringer, David Parsons, Christian Keen, and Elliot Siemiatycki. Your efforts greatly enhanced the manuscript. Third, we thank our colleagues, students (past and present), as well as our friends currently working in the field for their ideas, their feedback, and their "sympathetic ears" as we went through this process. In particular, we thank Scott Walsworth and Andrew Luchak, who allowed us to incorporate material from them into our bargaining and arbitration exercises. Fourth, in many cases the examples we used in this textbook came from friends and contacts currently working in the field of industrial relations. Our thanks to you for providing us with ideas we could incorporate into the text as we tried to "make the content real." Fifth, we cannot thank enough the team at Nelson- Elke Price, Developmental Editor; Jackie Wood, Publisher; Jaime Smith, Production Project Manager; Dave Stratton, Marketing Manager; Natalie Barrington, Permissions Researcher; Monica Belcourt, Series Editor; and Kelli Howey, Copy Editor- for their assistance and support. We are lucky to have had such a dedicated team of supporters guiding us each step of the way. Finally, we thank our families, for their ongoing support and love.

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LEARNING OBJECTIVES BY THE END OF THIS CHAPTER, YOU WILL BE ABLE TO DISCUSS • the similarities and differences among such terms as labour relations, human resources, employment relations, and industrial relations; • a systems framework that can be used to assess and understand industrial relations issues; • the differing views in the field of industrial relations; and • how this textbook is structured to follow the industrial relations system framework.

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The subway stops, the chime sounds, the doors open, and Andrew Chen and Lauren Major enter the train to look for seats. They have about a 30-minute ride before they reach their stop for UofT, where they are both taking classes. Lauren looks at Andrew and says, "Just saw a tweet from my friend Jack at Mount Allison. He says the faculty strike there is finally over. He's been pretty stressed that the strike will extend the term. He was worried he'd need to pay an extra month of rent and not be able to start his summer job on time." Andrew nods, "I heard something about that. Let me see what I can find out." Pulling out his phone, he does a quick search. " ... the strike lasted about 3 weeks .. .. Faculty were on strike for pay and workload reasons .. .. Yes, you're right, students feared an extended term or the potential loss of mid-term break. Wow it even says that the strike cost students $1300 in tuition." Leaning over to look at his phone, Lauren asks, "What else does it say?" Andrew replies: "Let's see ... It says that the government brought in a special mediator from Toronto to try to settle the strike. You should see the comments posted on these stories. Some say profs going on strike hurt students, others stating that, in the long run, the strike will benefit students as it could reduce number of profs quitting to take jobs in other schools. What divided views! What else? UNB profs

strike an action by workers in which they cease to perform work duties and do not report to work

Sources: "New Brunswick names mediator in bid to end Mount Allison University strike." CTV News. (1 0 February 2014). Retrieved from http://www. ctvnews .ca/canada/new-brunswick -names-mediator-in- bid-to- end-mount-allison-university -strike-1.1679521; "Mount Allison University students demand an end to faculty strike." Atlantic CTV News. (12 February 2014). Retrieved from http://atlantic .ctvnews.ca/mount-allison-university -students-demand-an-end-to-faculty-strike-1.1683416; "Mount Allison University says strike over, classes back on. " CBC News. (16 February 2014). Retrieved from http://www .cbc. ca/news/canada/new- bru nswi ck/m ou nt-allison-university -says-strike-over-classes-back-on-1.2539297 ; "Mount Allison students excited to be back to class." CBC News. (17 February 2014). Retrieved from http://www.cbc.ca/m/ touch/canada/newbrunswick/story/1.2539979; "Mount Allison professors holding strike vote." CBC News. (13 January 2014). Retrieved from http://www.cbc .ca/news/canada/new-brunswickl mount -allison -professors-holdi ng-stri ke-vote-1 .2494424.

II WHAT IS INDUSTRIAL RELATIONS?

Students supporting the faculty strike at Mount Allison.

2

were on strike as well. Seems there was a strike vote, mediation, conciliation ... do you know what all those terms mean?'' Lauren says, "I really wish I better understood the issues concerning industrial relations. I have no idea what a strike vote or conciliation are. Do you know much about industrial relations?" Andrew laughs. "Studying engineering. I can tell you how this train operates, but I have absolutely no idea about any of this stuff."

Industrial Relations in Canada

While you may not realize it yet, issues related to this textbook occur all around you. If you look at any media outlet you will see news coverage of labour disputes and strikes such as the Mount Allison strike that opens this chapter. You will also see stories on poor working conditions in developing countries, protests concerning the growing inequality between the rich and the poor in our country, the strength of the economy as it relates to employment, etc. Similar topics are often discussed amongst your friends in conversations concerning the pros and cons of different careers, jobs, and workplaces. Broadly speaking, all these topics relate to employment. The employment relationships between employers and employees can be characterized in a number of ways. In this section of the book, we will review and discuss

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several of the common names (or terms) relevant to this course and provide recent job examples for each term. These include: • industrial relations • labour relations • human resources management (human resources) • employee relations • employment relations

INDUSTRIAL RELATIONS The term industrial relations h as often been used by academics to examine all employment issues and relationships between employees (and their union if they are unionized), employers (and managers who act on their behalf), and governmental agencies (as well as their associated legislation and policies). As a result, the field of industrial relations has been argued to include the study ofboth union and nonunion employment relationships. H owever, more recently, the term industrial relations has become synonymous with issues concerning unionized employment relationships. For example, a recent job posting for an Industrial Relations Manager position presents duties related to interpreting the collective agreement and preparing for collective bargaining-all issues pertaining to a unionized workplace (Industrial Relations Manager, 2015). (Perhaps because of the narrowing view of the term, some academic programs have changed names in recent years. For example, the former Master of Industrial Relations (MIR) degree at the University ofToronto is now the Master oflndustrial Relations and Human Resources (MIRHR). In contrast, a similar program offered at Qyeen's University continues to use the MIR designation. (See IR Today 1.1.)

Part of the university experience is self-exploration and determining potential career interests. Since you will be studying the field of industrial relations this term, it's a good time to explore different programs and career options in the field. There are several English and French programs dedicated to the study of employment relationships in North America. We list some below.

English Programs Cornell University ILR School http://www.ilr.cornell.edu Memorial University MER program http://www. business. mun .ca/prog rams/ masters/mer/

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union a group of workers recognized by law who collectively bargain terms and conditions of employment with their employer industrial relations the study of employment relationships and issues, often in unionized workplaces collective agreement a written document outlining the terms and conditions of employment in a unionized workplace collective bargaining the process by which management and labour negotiate the terms and conditions of employment in a unionized workplace

Queen's University MIR program • m1r.queensu.ca University of Toronto MIRHR program http://www.ci rh r. utoronto.ca/progra ms/ mirhr-overview/ University of Toronto undergraduate Employment Relations program http://www. wdw.utoronto.cali ndex.php/ programs/employment_relations/overview/ Warwick University IR master's programs http://www2.warwick.ac.uk/fac/soc/wbs/ research/irru/masters_programmes

CHAPTER 1 Introduction

3

French Programs L'Universite Laval-undergraduate and graduate programs https://www.rlt.ulaval.ca/?pid=431

L'Universite de Montreal-undergraduate and graduate programs http://eri.umontreal.ca/programmes-cours/

LABOUR RELATIONS labour relations the study of employment relationships and issues between groups of employees (usually in unions) and management; also known as

union-management relations

The term labour relations refers to the examination of the relationship between groups of employees (usually labour unions) and their employers (including management groups). Consequently, the term is often considered interchangeable with unionmanagement relations and has often focused on issues concerning collective employment relationships. Not surprisingly, Heathfield, when discussing careers, stated that "labour relations relations staff members deal almost exclusively with unionized workplaces" and focus on issues related to collective agreements, collective bargaining, and conflict resolution (Heathfield, 2014).

HUMAN RESOURCES MANAGEMENT

human resources the study of the employment relationship between employers and individual employees

Whereas labour relations examines collective employment relationships between groups of employees (usually in labour unions) and their employer, human resources focuses on the employment relationship between the individual employee and his or her manager or employer. Thus, the area examines topics such as selection, compensation, and training. Jobs in this field are increasingly requiring applicants to have a Certified Human Resources Professional (CHRP) designation (CHRP, 2015), with demonstrated Required Professional Capabilities in areas such as staffing, total compensation, and employee and labour relations (CCHRA, 2014). In fact, this text has been designed with the RPCs in mind. More details about human resources can be found in Chapter 6.

EMPLOYEE RELATIONS employee relations the study of the employment relationship between employers and individual employees, usually in nonunion settings

4

Like human resources, the phrase employee relations has also been used to describe the employment relationship between individual employees and their employers, particularly in the United States. In fact, in the labour movement, it has often been considered a strong anti-union term. In Canada, we see the term used in differing contexts, including unionized workplaces. For instance, Alberta's Public Service Employee Relations Act relates to unionized, public-sector employees, and there are unions who use the term employee relations in some of their staff's titles. Likewise, the Nova Scotia Government and General Employees Union (NSGEU) website uses the term employee relations officers for some ofits staff's roles (NSGEU, 20 14). Given the diversity in perspectives concerning the term employee relations, it will not be used in this text.

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EMPLOYMENT RELATIONS Employment relations is perhaps the newest term. It was proposed by Meltz (1997) in essence to represent the comprehensive study of all employment relations (i.e., union and nonunion). In many ways it can be seen as the term designed to encompass the academic term industn.al relations. The term has started to be used more frequently in the field. For example, U ofT's Woodworth College offers an undergraduate employment relations program, and Memorial University a Master ofEmployment Relations (MER) degree. (See IR Today 1.1.) In looking at the job market, we can see a considerable range in terms of the duties of jobs in this field. For example, a job posting for a position entitled "Senior Advisor, Employee Relations" at VIA Rail focused very much on unionized employment issues of collective bargaining and collective agreements (VIA Rail, 2014). In contrast, a position called "Senior Employee Relations Consultant" at CIBC (2014) focused on tasks related to "advice, investigation and conflict resolution on workplace issues, Human Resources policies & programs, and human rights and employment legislative requirements"- with no discussion of unionized issues. As these job ads show, the phrase employment relations does encompass union and nonunion environments.

employment relations the study of employment relationships and issues in union and nonunion workplaces

INDUSTRIAL RELATIONS AND THIS TEXTBOOK Because there are a variety of terms representing different forms of employment relationships, it is important that we map out the focus of this text. Both authors of this text have been schooled in the field of industrial relations and, more specifically, completed graduate education centred on the broader definition of industrial relations as the comprehensive study of all employment relationships (both union and nonunion). As a result, we use industrial relations frameworks to examine issues relevant to this text. In addition, the focus of much of this text will be on issues related to labour relations. For example, you will see chapters examining contract administration, collective bargaining, strikes, etc. To better understand some of the core industrial frameworks used to examine employment relationships, we now turn to a discussion of the industrial relations system framework that grounds this text.

II THE INDUSTRIAL RELATIONS SYSTEM Unlike other courses you may have taken, the field of industrial relations is relatively new. It is an interdisciplinary field that encompasses knowledge and scholars from a broad range of subject areas (e.g., business, economics, law, history, sociology, psychology, and political science) in an effort to examine employment relationships and issues. For example, business scholars may look at the impact of collective agreements on management flexibility; economic scholars may examine the impact of unions on wages; law scholars may examine the impact of legislation on access to unionization; history scholars may examine the evolving and historical nature of employment relationships; sociology scholars may examine the dynamics and processes involved in workgroups; psychology scholars may look at issues related to employee satisfaction and motivation; and political science scholars may examine issues related to the roles of unions in the political process. Given the broad scope

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CHAPTER 1 Introduction

5

of the topic, attempts to build unifying frameworks and theories are relatively new, dating back only to the 1950s. In this section, we will present the two most commonly used system frameworks in North America, namely, that of American John Dunlop and that of Canadian Alton Craig.

DUNLOP'S INDUSTRIAL RELATIONS SYSTEM MODEL John Dunlop was one of the first scholars to develop a systematic method to analyze employment relationships in North America. This model consists of actors, a shared ideology, and contexts, as well as a web of rules.

ACTORS When Dunlop studied employment relationships and issues, he described three distinct actors: SPECIALIZED GOVERNMENTAL AGENCIES The role of this actor is to develop, implement, and administer legislation and policies pertinent to the employment relationship. A HIERARCHY OF MANAGERS AND THEIR REPRESENTATIVES This actor represents the business owners and the management staff hired to run the business. The role of this actor is to manage the workers and workplace in question. In North America, we often look at a single management actor when examining an employment relationship (e.g., see the opening vignette in which the employer is Mount Allison). Yet there are also a number of associations that represent groups of employers. A current example would be the Newfoundland and Labrador Employers' Council (NLEC, 2014), whose website presents its role as providing "advocacy, communication and training for its members in matters that affect the employment relationship." A HIERARCHY OF WORKERS (NON MANAGEMENT) AND ANY SPOKESPERSONS This actor represents the nonmanagement workers in the employment relationship and any relevant associations. In most cases, these associations consist of labour unions representing the workers.

SHARED IDEOLOGY Dunlop (1958, p. 16) defined shared ideology as "a set of ideas and beliefs commonly held by the actors that helps to bind or integrate the system together as an entity." This shared ideology was seen to define the role and function of each of the actors and required that all three actors respect and value the roles of the other two.

CONTEXTS Dunlop envisioned that the three actors might be influenced by any of several environmental contexts: MARKET AND BUDGETARY CONSTRAINTS While Dunlop focused mostly on the product market, he saw two key areas as critical to the employment relationship: product and 6

Industrial Relations in Canada

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labour. As we will discuss in Chapter 5, unions seek to influence both the supply and the demand of labour. In so doing, unions can impact the wages employees earn, as well as the final cost of the product/service that is produced by the organization. Thus, the issue of budgetary constraints becomes key, particularly for the actor of management. TECHNICAL CHARACTERISTICS OF THE WORKPLACE AND WORK COMMUNITY This context focuses on how work is structured and performed, including such factors as the processes used to produce goods and services, the stability of the workforce and operations, the size of the workgroup, job tasks, hours of work, and the technology/ machinery used. DISTRIBUTION OF POWER IN THE LARGER SOCIETY This context examines the power relationship among the actors within a particular employment relationship in the broader society. In particular, Dunlop (1958, p. 11) noted that the distribution of power among the actors reflects "their prestige, position, and access to authority figures within the larger society [that] shapes and constrains an industrial relations system." Power is important because the actor with the most power will have the greatest ability to influence both the dynamics of the employment relationship and the terms and conditions of employment.

WEB OF RULES Perhaps the most complicated and contested element of Dunlop's system is the web of rules. Dunlop discussed that the employment relationship consisted of a web of rules that outlined the rights and responsibilities of the actors in question. More specifically, he presented three key elements concerning rules. PROCEDURES FOR ESTABLISHING RULES This element focuses on the processes used for making the rules and who has the authority to make and administer the rules that govern the workplace. SUBSTANTIVE RULES These rules pertain to outcomes of the employment relationshipfor example, for the employee, compensation, job and performance expectations, and worker rights and duties. PROCEDURAL RULES Dunlop envisioned procedural rules as those rules that could determine and/or apply substantive rules- for example, rules concerning how wages are determined, rules concerning work schedules, and rules concerning how an employee is able to use or earn vacation time.

CRITICISMS OF DUNLOP'S INDUSTRIAL RELATIONS SYSTEM As outlined by several authors, there has been considerable debate concerning the merits of Dunlop's systems approach over the past 40 years (Craig, 1988; Hyman, 1989;

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CHAPTER 1 Introduction

7

feedback loop the mechanism by which outputs of the industrial relations system flow back to the external environment

Kochan, Katz & McKersie, 1986; Meltz & Adams, 1993; Wood, Wagner, Armstrong, Goodman & Davis, 1975). A number of criticisms of Dunlop's systems approach follow. First, the model is descriptive in nature, as it essentially consists of a classification system. Thus, while it allows us to examine an industrial relations issue, it lacks the ability to predict outcomes and/ or relationships. Second, the model underestimates the importance of power and conflict. For example, the model assumes the concept of shared ideology- that all actors see a legitimate role for each of the three actors. As we will see in greater detail in Chapter 6, many scholars are questioning this concept of shared ideology, particularly as it relates to the importance and role of labour unions. Third, the model is static in nature. At no point does it examine how events from one employment relationship can impact other employment relationships, or even the same relationship at a later time. Fourth, the model cannot explain the rapid decrease in unionization, particularly in the United States. Rather, the framework is often assumed to ground itself in the premise of unionized workplaces being the norm. In summary, Dunlop's model is a classic work in the field of industrial relations that will continue to be studied for years to come. However, as is often the case with the first model in any discipline, it has been, and will continue to be, expanded upon by subsequent work. In the Canadian context, one of the most studied expansions of Dunlop's model is that of Craig (1967, 1988; see also revision in Craig & Solomon, 1996). Readers familiar with the sciences will note that Craig's model is similar to the systems models used in biology. In biology, we see that a plant takes air from the environment and, through a series of internal conversion systems, takes the carbon dioxide it needs and then releases oxygen back into the environment. Similarly, in Craig's model, we see that the industrial relations actors take elements from the external environment and convert these inputs into outputs through a series of conversion mechanisms. These outputs then flow back into the environment through a feedback loop. Figure 1.1 shows our adaptation of Craig's model. As this expanded systems framework will form the basis of this textbook, we will now take time to walk through it.

EXTERNAL INPUTS The left-hand side of the model shows that several external inputs (or environmental subsystems) are important elements of the industrial relations system. These inputs can be legal, economic, ecological, political, or sociocultural in nature.

LEGAL SUBSYSTEM In Chapter 4, we more fully discuss the importance of the legal subsystem in industrial relations. In brief, three areas of law are key to the study of industrial relations: (1) common law, which is the earliest form of employment law and applies to nonunion employment relationships; (2) statutory law, or laws concerning minimum employment standards and employment discrimination, covering issues such as minimum wage, overtime payment, and employers' discrimination based on factors not linked to job performance (e.g., race, gender, age)-note that these laws apply to union and nonunion employment relationships; and (3) collective bargaining law, or legislation pertaining to unionized employment relationships.

8

Industrial Relations in Canada

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FIGURE 1.1 INDUSTRIAL RELATIONS SYSTEM MODEL1

External Inputs (External Subsystems) Legal • Common Law • 5tatuto ry Law • Collective Bargaining Law Economic • ProducVService Market • Labour Market • Money Market • Technology

Ecological • Climate • Natural Resources • Physical Environment

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Outputs Employer Outcomes • Management Rights and Responsibilities • Efficiency

Labour Outcomes • Union Rights and Security • Hours of Work • Wages and Benefits • Job Rights · Work Rules Worker Per ceptions • Work Climate • Employee Morale and Organizational Commitment • Union Sa tisfaction and Commitment Conflict/Conflict Resolution • Strikes/ Lockou ts

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1 Adapted

from: Craig, A. W. J. , and Solomon, N. A. (1996). The System of Industrial Relations in Canada, 5th edition, pg. 4. Toronto, Ontario: Prentice Hall Canada Inc. Reprinted with permission of estate of Alton J. Craig.

It is also important to note that Canada has a decentralized legal framework, with most provinces having their own provincial laws. In fact, with the exception ofindustries key to national safety and security (e.g., communication, interprovincial transportation, railways, airlines, banks), most workplaces fall under provincial legislation. The Mount Allison case discussed in the opening vignette is an example, and would be subject to New Brunswick legislation.

ECONOMICS SUBSYSTEM Since Chapter 3 provides a full overview of the economics subsystem, we now briefly introduce four key elements to this subsystem: product/service markets, labour markets, money markets, and technology. One can think of product/service markets in terms of the availability of products or services from competitors as well as an organization's relative competitive position in its market (e.g., Does the firm have a large market share? Does it face considerable competition from other service/product suppliers?). A good example is provided by the retail industry. In the recent past, Canadians would have purchased most of their products from their local retailers or outlets of national chains such as Sears, The Bay, Zellers, and K-Mart. However, the movement to Internet-based shopping through websites such as Amazon and eBay means that Canadian retailers now face competition from firms in numerous countries- some of the previously referenced national retailers have even ceased

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CHAPTER 1 Introduction

9

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0..

Pol

cr

"
5 years' service = 15 weeks

2 weeks plus 2 weeks per year of service; maximum of 30 weeks

2 weeks per year of service; maximum of 26 weeks

~ ""C' z

Cl

l> 0

-0

~