BBUS 3841 _ Assignment 5
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Assignment 5: Reaching an Impasse at Collective Bargaining
BBUS 3841 Labor Relations
Part A: Federal Third Party Assistance Options
An employer in the federal jurisdiction and its unions can utilize third party assistance once collective bargaining reaches an impasse.
Assignment 5: Reaching an Impasse at Collective Bargaining
When the parties have collectively bargained and are unable to come to an agreement on the terms of a collective agreement, they have an option to bring in a third party to assist with their negotiations.
In the federal jurisdiction, third party assistance is available through the Federal Mediation and Conciliation Services. This program promotes co-operation, advice and assistance on labour relations matters within the federal jurisdiction. Their mandate is to
assist both parties to reach to an agreement and prevent disputes before they occur. This is typically achieved by conducting training workshops on collective bargaining and
joint conflict resolutions. However, when a dispute occurs in a federal jurisdiction, parties can follow the process shown below.
(Image Source: Employment and Social Development Canada)
If an impasse is reached or if the negotiations have not started within the time frame under Section 50 of the Canada Labour Code, either party may file a notice of dispute to
the Ministry of Labour. In parallel, a copy of the notice needs to be sent to the other party. Once the Ministry receives the notice of dispute, it appoints a conciliation officer within fifteen days to assist the parties in resolving their differences.
Assignment 5: Reaching an Impasse at Collective Bargaining
The conciliation officer has a 60-day mandate which may be extended if both parties agree. At the end of the conciliation period, a 21-day cooling off period begins where the
Ministry of Labour can appoint a mediator to continue to assist the parties in reaching an agreement. If a decision is not made after the cooling off period an additional third party may be appointed to resolve outstanding issues, however both parties must agree.
I.
Mediation-arbitration is the form of third party assistance. The assistance is brought in to act as a mediator and make non-binding recommendations. If mediation is still not successful, the same third party becomes the arbitrator with the authority.
II.
Interest arbitration is where both parties present their positions to a third-party arbitrator. The arbitrator writes the collective agreement and finalizes the terms of
the collective agreement. III.
Fact-finding is another type of third party assistance which formally reports on the
facts of the dispute and makes recommendations to the Ministry of Labour IV.
An industrial inquiry commission may be set up by the government in some jurisdictions to review complex issues and maintain labour relations’ stability and lead to the resolution of a dispute.
Part B:
Replacement Workers
Replacement workers as the name suggests are replacement workers during a strike or lockout. This includes workers such as volunteers, current non-management employees not in the bargaining unit, employees from another person / company, and newly hired employees.
Banning replacement workers is effective as it stops the company to source workers and get help from elsewhere and continue the business as usual. This state, puts pressure on the company to negotiate the terms faster. In terms of alternatives, employers are extremely limited as to the hiring of replacement workers during a strike or lockout. The Code states the only people that can perform work are:
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Assignment 5: Reaching an Impasse at Collective Bargaining
I.
Management people who work at the same location. II.
Non-bargaining unit employees who also work at the same location and consent to performing such work. An alternative for replacement workers are if the company had additional management staff transferred from other employer’s location before the notice to commence collective bargaining was given.
Do you think that banning replacement workers leads to fewer shorter strikes or more, lengthier ones? How do you feel about crossing a picket line?
Banning replacements defiantly leads to fewer and shorter strikes as companies cannot have their business being distributed every few years. Plus, going on a strike means either the Union employees don’t get paid or a big dent in the strike reserve fund
for the Union. In my personal experience, I try not to cross the picket line, to show support for the Union. However, if I am making a delivery for the company or am a student at a university where a picket line is formed, I would have no issue crossing one. The case studies in the text book depict that banning replacement workers result in a strike incidence increase of 24.4% and a 6.9 day increase in the length of strikes. Banning replacements also increases the probability of a strike from 0.16 to 0.12 plus add a 4.4% increase in real wages of a contract. After analyzing these statistics, I come to conclude that banning replacement workers benefit the Union more than the company.
Part C: Public Sector Strikes
Striking as a public-sector employee in Canada can be divided into two parts, essential and non-essential public employees. The Code requires essential services to not go on strike and maintain certain services, when in dispute. Essential services are related to the health and safety of residents and provision of educational programs. There is also an argument that allows public sector employees to go on strike but
Assignment 5: Reaching an Impasse at Collective Bargaining
maintaining the essential services and reducing public risk (Gunderson, Ponak & Taras,
2005, p.430).
Pros of the public-sector employees going on strike:
Strikes may be more effective than going through an arbitration process.
May result in higher wages and contracts for the Union members
The approach is more vocal and visual to get the Union members’ voices heard. Cons of the public-sector employees going on strike:
Strikes provide Unions with undue advantage over the employer in the negotiation process which leads to generous wages and working conditions.
Safety of the public may be deodorized if public workers go on strike. E.g. eligible
health and police sector service workers.
Since we are talking about public employees, higher wages mean more tax payers money required to fund the employees and Union.
Could lead to destabilizing and turbulent political battles.
A strike would likely stop production of goods and services being produced leading to a short in supply.
A short in supply may cause the price increase for the average consumer.
The public-sector employees that are not allowed to go on strike are post-secondary teachers in Saskatchewan, workers in the hospital sector, police and the armed forces, fire-fighting services, prison services, Toronto Transit Commission to name a few. Based on the pros and cons listed above, I feel the cons outweigh the pros. The two-
main points that sway my decision are the safety of public is at risk if the public works go on strike and the increase to the tax payer. Additionally, if public sector strike, it apparently runs counter to the nature of public service.
Part D: Major Module Assignment
Case Study: Joe's Lawnmowers
Assignment 5: Reaching an Impasse at Collective Bargaining
In this case, we see that Joe’s Lawnmowers’ Union certifies where the bargaining
agreement has expired. The parties have met for collective bargaining on 5 occasions and cannot come to an agreement. A big chunk of the staff calls in sick the following day. The following day we see all employees showing up at work building with picket signs.
Q
. What do you tell management about whether the employees calling in sick constitutes a strike? A strike is the withholding of labour by workers to obtain better wages and or working conditions. It is a stoppage or refusal of work by employees that results in a slowdown and limit output. A strike may be a tactic to put pressure on the other party to ratify the terms of a new collective agreement, having said that, neither the Union and or
employers are allowed to begin a strike before going through the dispute settlement mechanisms in the Code.
Even if a bargaining contract has expired, its terms and conditions continue until the settlement mechanisms under the Code have all been exhausted. In the case study, if the Union and or employees want to go on strike, the Union must give written notice of an imminent strike to Joe’s Lawnmowers and the Labour Board. The Union also needs to wait 72 hours after the notice was given to the Labor Board.
The action taken by the workers in this case constitute as an illegal strike as employees are attempting to obtain recognition of their collective bargaining rights by an employer rather than going through the proper process. A strike does not necessarily mean the employee walking off the job or forming a picket line. The employees in this case seem to be applying “work to rule” which according to the Board, may constitute to an unlawful
strike. (Canada Industry Relation Board, 2013)
Q.
What do you tell management about the legality of the picketing?
Picketing refers to encouraging anyone not to enter the company’s place of business, operations or employment.
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Assignment 5: Reaching an Impasse at Collective Bargaining
Since the strike is illegal as stated in the first question, the picketing is also illegal, as this doesn’t constitute a strike. In BC, a company can file for a Part 5 application which declares that an activity constitutes an unlawful strike or picketing, and therefore notifies
the party to immediately stop against the activity.
References
1.
Canada, E. A. (2016, August 31). Collective Bargaining. Retrieved April 05, 2017,
from https://www.canada.ca/en/employment-social-development/services/labour-
relations/collective-bargaining.html
2.
Gunderson, M., Ponak, A., & Taras, D. G. (2005). Union-management relations in Canada. Toronto: Pearson Addison-Wesley.
3.
Guide to the Labour Relations Code Province of British Columbia. (n.d.). Retrieved April 12, 2017, from http://www.lrb.bc.ca/codeguide/chapter7.htm
4.
http://www.cbc.ca/news/canada/saskatchewan/essential-services-law-deemed-
unconstitutional-by-supreme-court-1.2937740
5.
No. 06–Unlawful Strikes and Lockouts. (2013, April 4). Retrieved from http://www.cirb-ccri.gc.ca/eic/site/047.nsf/eng/00104.html
6.
Canada Industrial Relations Board | Conseil canadien des relations industrielles. No. 06–Unlawful Strikes and Lockouts - Canada Industrial Relations
Board. Retrieved from http://www.cirb-ccri.gc.ca/eic/site/047.nsf/eng/00104.html
7.
Part 5 Applications - Strikes, Lockouts and Picketing. (n.d.). Retrieved April 06, 2017, from http://www.lrb.bc.ca/bulletins/part5.htm
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