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Human Resources

Human Resources . Sectors of Business Activity Where people work . Primary Sector Concerned with the exploitation of natural resources. Secondary Sector Transforming raw materials into finished products . Tertiary Sector Provides goods and services to consumer base

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Human Resources

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  1. Human Resources

  2. Sectors of Business Activity Where people work • Primary Sector • Concerned with the exploitation of natural resources

  3. Secondary Sector • Transforming raw materials into finished products

  4. Tertiary Sector • Provides goods and services to consumer base • Ex: Banking, Restaurants, Hotels

  5. Quaternary Sector • Investment in new technologies • Information generation and sharing • Ex: Robotics, Research & Development

  6. Characteristics of the labour Force • What makes you employable? • Education • Specialization • Experience • Motivation

  7. Canada’s labour Force • Total Pop: 34,300,083 (estimated)(July 2012) • Pop eligible to work: 18.67 million (2011 est.) • 2% Agriculture • 13% Manufacturing • 76% Services • 3% Other • Unemployment Rate: 7.5% CIA Factbook

  8. Importance of Education • 1/16 with higher education are unemployed • 1/8 with Cégep • ¼ with High School • ½ Drop outs

  9. Calculating the labour Force • Refer to P. 52 in Workbook • Those who do not count: • People under 15 • Full-time students • People 15 years + who are not seeking work • Fulltime army personnel • People living on Indian reserves • Retired People • Volunteers • Homemakers

  10. Unemployment • Rates and trends differ from province to province and country to country • Can depend on level of education, age groups, industry and other economic factors • Some potential causes: • Inability to compete with foreign producers • Fewer new jobs created • Lack of training • Primary and secondary jobs decreasing

  11. Significance • Drop in GDP • Lower Standard of Living • Unemployment benefits and welfare expenditures • Suffering of the jobless

  12. Types of Unemployment • Frictional (Normal Unemployment) • People who have been fired or quit to seek a better job • Desirable because the mobility of workers encourages productivity

  13. 2. Cyclical • Results from changes in the business cycle which fluctuate from periods of growth to periods of recession • Most feared by Governments

  14. 3. Structural • Consequence of changes in market conditions • Often result of technological changes

  15. 4. Seasonal • Results from industries that only operate during specific times of the year

  16. 5. Hidden • Workers who are so discouraged they have given up seeking work • Not counted among the unemployed

  17. Full employment • Not the same as Zero unemployment • 100% employable rate not desirable • Economists consider 4% UNE to be “full employment” • Underemployment • Refers to a situation where a worker is overqualified for a given job or he/she wants to work full time but can only find a part-time post.

  18. How can Governments Fight Unemployment? • Subsidizing public work programs • Decreasing the interest rate • Reducing taxes (consumers would……..) • Improving confidence in the economy • Provide incentives for those who have given up • Encouraging early retirement • Improving education and training programs

  19. Cost of Labour • Law of supply and demand also applies to Labour • Education, experience and seniority • Role of Geography • Responsibility • Unions • Minimum wage laws

  20. Labour costs in Industry • Capital Intensive • Utilize Machinery • Little use of labour • Capital resources are the greatest expense • Profit is maximized by mass production

  21. B. Labour Intensive • Many people are employed in the production process • Labour costs are high in relation to production value

  22. Structures of Unions

  23. Unions are a by-product of the Industrial Revolution • Objective: further the welfare of its members • Protect labour rights • Improve working conditions • Protect against exploitation • Fight for higher wages and fringe benefits • QC: 2/3 workers belong to a union

  24. Structure of Unions • Most represent a multi-tiered system within the structure of organized labour • Large Federations are the top dog • Some unions can be national within Canada and others can be affiliated with Larger American Unions

  25. How are Unions Formed? • Federations reach out to workers or vice versa • They will advise on the procedures which must be followed to achieve Accreditation • If between 35-50% of the workers initially sign on, then organizers can seek accreditation (begin the process) • Then, if 50% plus 1 vote in favor of forming a union, official certification is granted.

  26. Now all employees automatically become members and are obligated to pay fees • Fees and payments are determined by law (Rand Formula, 1946) • Collective bargaining can now begin • In Quebec, a union may be recognized by the Ministère du Travail

  27. The Benefits of Labour Unions • Reduce wage inequality • Reduce profits • Increase stability of workforce • Promote social legislation The Disadvantages of Labour Unions • Work disruption • Increase price of labour • All members must pay fees for representation.

  28. 3.2.3 The Labour Contract

  29. Negotiation Procedures • How do Unions negotiate remuneration and fringe benefits with their employer?

  30. Collective Bargaining • Uses the collective strength of the workers to demand concessions • Otherwise employees would have to negotiate individually with their employer • CB protects individuals from reprisals (negative consequences) by the employer

  31. Members of the union decide on their collective demand, which can include: • Changes in pay (monetary) • Working conditions (non-monetary) • Fringe benefits (monetary) • Established pay scales (monetary) • Safety Regulations (non-monetary) • Grievance procedure (non-monetary)

  32. Grievance Procedure • If a dispute were to arise over a certain clause in the agreement either side may file a grievance (complaint) with a special labour court. • The judge or tribunal hears both sides and makes a ruling • One of the only ways to make sure the contract is adhered to

  33. Then the employer organization decides whether or not to accept the union’s terms • Could also counter offer

  34. We have a deal!!! • The new Collective Bargaining Agreement is binding usually for 1 to 3 years

  35. But what happens when things don’t go so smoothly?

  36. If negotiations fail • Either side may resort to Pressure Tactics • Strikes (used by employees) • Lockouts (used by employers) • Hire Scabs (used by employers) • Slower Production • Taking more sick days • No overtime

  37. Mediation • Either party in the dispute may request that the ministry of labour appoint a mediator • The role of the mediator is to meet with both sides and make suggestions on how to proceed • Not legally binding

  38. Conciliator • Attempts to bring both sides together • Appointed by the ministry of labour • Submits a written report recommending compromise • If these compromises are not accepted by both sides the dispute continues

  39. Arbitration • Both sides must request the help of an arbitrator (expert in the field, lawyer) • 3 arbitrators are selected and consider both sides of the dispute • Their decision is legally binding • Not a popular way to settle the stalemate (everyone loses)

  40. A court order that requires certain things to be done or to be stopped • Ex: Reduce amount of people picketing • Mostly requested by employers who believe that public safety or interests are being endangered • But Unions can also ask for an injunction • Ex: To have a lockout lifted

  41. To counter the power of the unions, Quebec introduced the following strategies • The Essential Services Act • Requires that the union provide sufficient workers during a strike in order to maintain vital services. • The Imposition of Decrees • Special legislation which requires the union to end the strike as well as imposing a contract on the workers without their consent

  42. 3.2.4 The Role of the State

  43. The Role of the State • Governments are responsible for passing legislation that look after the relations between employers and employees • Important because the Gov’t, especially the Québec Gov’t are the employers of thousands of citizens • They employ citizens in 3 sectors • Public Servants (Ex: Postal Workers) • Para-Public Workers (Ex: Teachers) • Crown Corporations (Ex: Hydro Quebec)

  44. Labour Code • A set of laws and codes that pertain to working conditions • There are 2 Labour Codes • The Canadian Labour Code (Nation Wide) • Deals with Minimum wages • Employment insurance • Pension plans • Duration of work day and week • Maternity leave

  45. B. Quebec Labour Code • Outlines the process for Union Certification • Secret ballots (to elect union officers, seeking a strike mandate, or ratifying a collective agreement ) • Grants the right to strike • Prohibits the hiring of scabs during a legal strike

  46. During the 1980’s the PQ brought in: • A collective agreement between non-unionized workers and their employees. • Basic rights of employees • Minimum wage • Maximum work week • Statutory holidays • Overtime • Vacation pay • Special leaves

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