HRM307 Lecture Notes - Lecture 2: Canadian Dollar, Deindustrialization, Pension
16 Oct 2016
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Document Summary
The economic environment is critical to employers and unions. If economy is in recession, parties will be adversely affected. Macroeconomic environment: the growth rate, unemployment rate, and the rate of inflation in the economy. Impacts he objectives and power of unions and employers and affects labour relations outcomes: example, unions seek larger wage increases to protect real incomes of employees. Nominal wages: wages that have not been adjusted for inflation. Real wages: wages that have been adjusted for inflation. In inflation rate is 4 percent and employees receive 2 percent wage increase, real wages have been reduced by 2 percent. Periods of economic growth have been associated with higher rates of union organization and a higher incidence of strikes. In economic downturns, unions concerned with job security: lead to union demands such as increased severance payments and notice of layoff.
