Unit 3: Income, Labour and Savings

1. Unit 3: Income, Labour and Savings Chapter 9: Labour Unions CIE 3M0 – Mr.Harper

3. Check out the survey on p.184 • What’s your opinion?

4. Labour Unions in Canada • Labour unions are certified (recognized) organizations of workers that negotiate wages, working conditions, job security and other benefits with employers • 37% of non-agricultural labour force in Canada is unionized compared to 16% in the United States and 90% in Sweden

5. Craft and Industrial Unions • Craft unions  First to form in Canada in the 1820s  made up of a specific trade of skilled workers (e.g. printers, shoemakers, masons, bakers and tailors) • Industrial unions  workers in a particular company or industry  not based on specific trade / skill  Canadian Auto Workers (C.A.W.), or the Ontario Secondary School Teachers Federation (O.S.S.T.F.)

6. What have unions done for us? (Video – 2 minutes)

7. What have unions done for us? • Unions work to level the playing field between management or business owners and the labour force. It is the goal of unionized workers to promote a more equal distribution of income and benefits. • Without unions, the following may not exist: • Overtime pay • Maternity leave • Disability insurance • Early retirement • Job security • Profit sharing • Health insurance plans • Equitable working environments • Safe working conditions

8. What are some disadvantages of labour unions? • Decreased incentives for workers (benefits and wages are universally determined) • Underperforming workers are sometimes protected from being fired • Labour disruptions can lead to layoffs • Public perception is often negative (unionized workers are seen by some as being lazy and unmotivated) • Increased costs for businesses

9. How do unions go about achieving these goals? • A collective voice is always more powerful than a singular. • If one person threatens to strike, he or she will likely get fired. If the entire labour force threatens to strike, it is more likely that management will listen to concerns.

10. There is power in a Union - A song by Billy Bragg • What’s the message of this song? There is power in a factory, power in the landPower in the hand of the workerBut it all amounts to nothing if together we don't standThere is power in a Union Now the lessons of the past were all learned with workers bloodThe mistakes of the bosses we must pay forFrom the cities and the farmlands to trenches full of mudWar has always been the bosses way, sir The Union forever, defending our rightsDown with the blackleg, all workers uniteWith our brothers and our sisters from many far-off landsThere is power in a Union

11. Cont’d Now I long for the morning that they realizeBrutality and unjust laws cannot defeat usBut who'll defend the workers who cannot organizeWhen the bosses send their lackeys out to cheat us? Money speaks for money, the Devil for his ownWho comes to speak for the skin and the bone?What a comfort for the widow, a light to the childThere is power in a Union The Union forever, defending our rightsDown with the blackleg,all workers uniteWith our brothers and our sisters together we will standThere is power in a Union

12. Lisa Simpson’s Strike Song Come gather round children it's high time ye learned ‘bout a hero named Homer and a devil named Burns.We'll march ‘till we drop the girls and the fellas we'll fight ‘till the death or else fold like umbrellasSo we'll march day and night by the big cooling tower they have the plant but we have the power

13. Canadian Union Membership: A Brief History • 19th century  Only 166,000 union members with little growth • WW 1 (1914-18) and rapid industrialization led to big growth, but the failure and violence of Winnipeg General Strike (1919) combined with the Depression of the 1930s hurt unionization until WW 2 (1939-45) • 1945 to 1990s saw union membership soar to 4 million • Unionization of government employees grew rapidly from 1965 to the present

14. Union Structure • Local represents workers in their own workplace or town whereas the parent union decides on union policy for all locals across the province, country or world • National unions represent union members across the country  Canadian Union of Public Employees (CUPE) • International unions represent union members in more than one country  United Steelworkers • Central labour organizations do not negotiate union contracts, but instead lobby government to pass laws favourable to unions  Canadian Labour Congress (CLC)

15. Collective Bargaining • The negotiation between representatives of workers and employer(s) with the purpose of establishing terms and conditions of employment that are acceptable to both sides • Power in numbers is the philosophy behind unions and collective bargaining where a single unskilled or semiskilled worker is easily fired and replaced • Union and management try to reach an agreement on such issues as pay, pensions, workload and holidays • Once an agreement is reached a contract called a collective agreement is signed by both sides that state the terms of the agreement and how long it is in effect • All workers and employer(s) must abide by the terms of this agreement • If a dispute arises during the term of the collective agreement then an arbitrator (outside person) settles the dispute

16. Conciliation / Mediation • After a contract expires and the two sides cannot come to an agreement on a new contract both union and management may agree to allow a conciliator (outside person) hear both sides and try to bring them to an agreement

17. Strike / Lockout • If labour and management cannot come to an agreement and create a collective agreement contract then labour may strike (withhold labour services) or management may lockout the workers • Both sides use this tactic as a last resort as it hurts everyone involved including the economy as a whole (e.g. NHL lockout) • Both sides feel a strike or lockout will force the other side to give in to their contract demands

18. The Contract • Union security closed shop – membership mandatory or open shop – membership not mandatory. • There is also union shop, where workers can choose to be union members or not. • Wages and benefits  cost of living allowances (COLAs) allow wages to keep up with inflation and benefits such as medical, dental, pension and life insurance • Seniority  laid off based on “last in first out” principle • Grievance procedures  procedure to settle disputes between workers and management

19. Unions and Wages • Restricting supply of labour causes wages to increase • Increasing the demand for labour causes wages to increase • Balances the power of monopolies and oligopolies

20. The Future of Labour Unions • New technology and globalization have put a strain on unions as machines are increasingly replacing low skill jobs in Canada and many other semi-skilled jobs in manufacturing are done in low wage countries like China • Unions will have to adapt to survive therefore the key will be to train their members to have higher skills so they will work with (complement) the new technology and not be replaced (substitute) by the new technology

21. Some Questions about Strike alternatives • Read the issue on page 196-197. • Answer questions 1-4 about which groups should be allowed to strike. We will discuss.

22. Collective Bargaining Simulation • Your Unit 3 culminating task will be to participate in a collective bargaining simulation.