Unions1 100321193936-phpapp02
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Unions1 100321193936-phpapp02






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Unions1 100321193936-phpapp02 Unions1 100321193936-phpapp02 Presentation Transcript

  • Chapter 8: The Case of Labour Economics
  • Concept of Human Capital
    • Human Capital – the knowledge, skills and talents that workers have, either through education or by nature. (Experiences)
  • Labour Unions
    • What is a Labour Union?
      • Organization of workers that collectively promotes the interests of its members and negotiates with their employees.
      • Responsible for shaping labour relationships, laws and working conditions.
  • 3 Common Unions
    • Trade Union – represents workers in a single occupation.
    • Industrial Union – Represents all workers in a given industry regardless of the job they perform. Ie. CAW Canadian Auto Workers
    • Public Sector – Workers employed by any levels of the Government.
  • Collective Bargaining
    • History
      • 1943 Federal Government passed legislation that restricted when unions were allowed to strike in exchange for the legal requirements that employers must bargain with a union if a majority of workers voluntarily agreed to have the union represent them.
  • Collective Bargaining
    • Union’s most significant role:
      • Negotiating wages and work conditions.
    • Collective Bargaining
      • Process of arriving to an agreement.
    • Collective Agreement
      • The contracted that is negotiated.
      • Usually last for 1-3 years.
      • States responsibilities of both parties.
  • Collective Bargaining
    • Usually bargaining starts before contracts expire.
    • If expired and no agreement is reached the old agreement continues.
    • If agreements can not be reached there are options.
  • Collective Bargaining Options
    • Conciliations/Mediation
      • 3 rd party brought into situation suggests possible ways reach agreement.
      • Usually first step before work stoppage.
    • Voluntary Arbitration
      • Both side agree to have 3 rd party.
      • 3 rd party acts as judge, makes decision.
      • Both sides must abide to the decision.
  • Collective Bargaining Options
    • Compulsory Arbitration
      • Government forces to parties to submit their disputes to an arbitrator.
      • This is usually seen when a strike be disruptive the general public.
  • Strikes & Other Job Action
    • Strike
      • Temporary work stoppage by employees.
      • Designed to force employer to meet with union.
      • Must be voted in by majority vote.
    • Lockout
      • Employer shuts down the place of employment in order to force workers to accept its contract offer.
  • Strikes & Other Job Action
    • Both strikes and lockout cost both parties money:
      • Wages- Employee, Profit- Employer
    • Work-to-Rule
      • Employees perform only the duties specifically stated in their contracts.
    • Boycott
      • Peopled asked not to buy products.
  • Pro’s & Con’s of Unions
    • Pro’s
      • Protection
      • Hold employers accountable for work conditions
      • Invested in Human Capital (through training & Education)
    • Con’s
      • Do not reward hard workers
      • Increase wages, increasing product cost
      • Decrease incentive to work