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Unions 1

Unions 1



additional lecture notes - unions for labour economics

additional lecture notes - unions for labour economics



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    Unions 1 Unions 1 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