Unions 1


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additional lecture notes - unions for labour economics

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Unions 1

  1. 1. Chapter 8: The Case of Labour Economics
  2. 2. Concept of Human Capital <ul><li>Human Capital – the knowledge, skills and talents that workers have, either through education or by nature. (Experiences) </li></ul>
  3. 3. Labour Unions <ul><li>What is a Labour Union? </li></ul><ul><ul><li>Organization of workers that collectively promotes the interests of its members and negotiates with their employees. </li></ul></ul><ul><ul><li>Responsible for shaping labour relationships, laws and working conditions. </li></ul></ul>
  4. 4. 3 Common Unions <ul><li>Trade Union – represents workers in a single occupation. </li></ul><ul><li>Industrial Union – Represents all workers in a given industry regardless of the job they perform. Ie. CAW Canadian Auto Workers </li></ul><ul><li>Public Sector – Workers employed by any levels of the Government. </li></ul>
  5. 5. Collective Bargaining <ul><li>History </li></ul><ul><ul><li>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. </li></ul></ul>
  6. 6. Collective Bargaining <ul><li>Union’s most significant role: </li></ul><ul><ul><li>Negotiating wages and work conditions. </li></ul></ul><ul><li>Collective Bargaining </li></ul><ul><ul><li>Process of arriving to an agreement. </li></ul></ul><ul><li>Collective Agreement </li></ul><ul><ul><li>The contracted that is negotiated. </li></ul></ul><ul><ul><li>Usually last for 1-3 years. </li></ul></ul><ul><ul><li>States responsibilities of both parties. </li></ul></ul>
  7. 7. Collective Bargaining <ul><li>Usually bargaining starts before contracts expire. </li></ul><ul><li>If expired and no agreement is reached the old agreement continues. </li></ul><ul><li>If agreements can not be reached there are options. </li></ul>
  8. 8. Collective Bargaining Options <ul><li>Conciliations/Mediation </li></ul><ul><ul><li>3 rd party brought into situation suggests possible ways reach agreement. </li></ul></ul><ul><ul><li>Usually first step before work stoppage. </li></ul></ul><ul><li>Voluntary Arbitration </li></ul><ul><ul><li>Both side agree to have 3 rd party. </li></ul></ul><ul><ul><li>3 rd party acts as judge, makes decision. </li></ul></ul><ul><ul><li>Both sides must abide to the decision. </li></ul></ul>
  9. 9. Collective Bargaining Options <ul><li>Compulsory Arbitration </li></ul><ul><ul><li>Government forces to parties to submit their disputes to an arbitrator. </li></ul></ul><ul><ul><li>This is usually seen when a strike be disruptive the general public. </li></ul></ul>
  10. 10. Strikes & Other Job Action <ul><li>Strike </li></ul><ul><ul><li>Temporary work stoppage by employees. </li></ul></ul><ul><ul><li>Designed to force employer to meet with union. </li></ul></ul><ul><ul><li>Must be voted in by majority vote. </li></ul></ul><ul><li>Lockout </li></ul><ul><ul><li>Employer shuts down the place of employment in order to force workers to accept its contract offer. </li></ul></ul>
  11. 11. Strikes & Other Job Action <ul><li>Both strikes and lockout cost both parties money: </li></ul><ul><ul><li>Wages- Employee, Profit- Employer </li></ul></ul><ul><li>Work-to-Rule </li></ul><ul><ul><li>Employees perform only the duties specifically stated in their contracts. </li></ul></ul><ul><li>Boycott </li></ul><ul><ul><li>Peopled asked not to buy products. </li></ul></ul>
  12. 12. Pro’s & Con’s of Unions <ul><li>Pro’s </li></ul><ul><ul><li>Protection </li></ul></ul><ul><ul><li>Hold employers accountable for work conditions </li></ul></ul><ul><ul><li>Invested in Human Capital (through training & Education) </li></ul></ul><ul><li>Con’s </li></ul><ul><ul><li>Do not reward hard workers </li></ul></ul><ul><ul><li>Increase wages, increasing product cost </li></ul></ul><ul><ul><li>Decrease incentive to work </li></ul></ul>
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