COMMERCE 1E03 Chapter Notes - Chapter 13: Union Shop, Trade Union, Agency Shop
26 Apr 2018
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TERMINOLOGY:
Labour union: An employee organization whose main goal is representing its members in
employeeā management negotiation of job-related issues.!
Industrial union: Consists of unskilled and semi-skilled workers in mass-production industries
such as automobile manufacturing and mining.!
Independent local organization: A union that is not formally connected or aļ¬liated with any
other labour organization; also called the union local, local, or local union.!
Directly chartered union: A union that is directly aļ¬liated to a labour congress to whom it
pays per capita dues and receives services.!
National union: A union that only represents workers in Canada.!
International union: A union that represents workers in Canada and the United States.!
Unionization rate (union density): A measure of the percentage of employed individuals who
are union members; also known as union density.!
Coverage rate: A measure of the percentage of employed individuals (including both union
and non-unionized members) who are covered by a collective agreement.!
Labour relations board (LRB): An organization created by the federal or provincial
government to enforce labour legislation.!
Collective bargaining: The process whereby union and management representatives
negotiate a contract for workers.!
Certiļ¬cation: Formal process whereby a union is recognized by the Labour Relations Board
(LRB) as the bargaining agent for a group of employees.!
Decertiļ¬cation: Process by which workers can take away a union's right to represent them.!
Negotiated labourāmanagement agreement (labour contract): Agreement that sets the tone
and clariļ¬es the terms and conditions under which management and labour agree to function
over a period of time.!
Union security clause: Provision in a negotiated labourā management agreement that
stipulates that employees who beneļ¬t from a union must either oļ¬cially join or at least pay
dues to the union.!
Closed shop agreement: Clause in a negotiated labourā management agreement that
speciļ¬es workers need to be members of a union before being hired.!
Union shop agreement: Clause in a negotiated labourā management agreement that says
workers do not have to be members of a union to be hired, but must agree to join the union
within a prescribed period.!
Agency shop (Rand formula) agreement: Clause in a negotiated labourāmanagement
agreement that says employers may hire non-union workers; employees are not required to join
the union but must pay union dues.!
Open shop agreement: Clause in a negotiated labourā management agreement that says
employees are free to join or not join the union and to pay or not pay union dues.!
Checkoļ¬: A contract clause requiring the employer to deduct union dues from employeesā pay
and remit them to a union.!
Grievance: A charge by employees that management is not abiding by or fulļ¬lling the terms of
the negotiated labourāmanagement agreement.!
Shop stewards: Union oļ¬cials who work permanently in an organization and represent
employee interests on a daily basis.!
Bargaining zone: Range of options between the initial and ļ¬nal oļ¬er that each party will
consider before negotiations dissolve or reach an impasse.!
Conciliation: The use of a government-appointed third party to explore solutions to a labourā
management dispute.!
Mediation: The use of a third party, called a mediator, who encourages both sides in a dispute
to continue negotiating and often makes suggestions for resolving the dispute.!
Arbitration: An agreement to bring in an impartial third party (a single arbitrator or a panel of
arbitrators) to render a binding decision in a labour dispute.!
Strike: A union strategy in which workers refuse to go to work.!
Primary boycott: When a union encourages both its members and the general public not to
buy the products of a ļ¬rm involved in a labour dispute.!
Secondary boycott: An attempt by labour to convince others to stop doing business with a
ļ¬rm that is the subject of a primary boycott.!
Lockout: An attempt by management to put pressure on unions by temporarily closing the
business.!
Injunction: A court order directing someone to do something or to refrain from doing
something.!
Strikebreakers: Replacement workers hired to do the jobs of striking employees until the
labour dispute is resolved.!
Back-to-work legislation: A special law passed by the federal or provincial government that
orders an end to a labourāmanagement dispute in an industry the government decides is
essential to the operation of the economy.!
Givebacks: Concessions made by union members to management; previous gains from labour
negotiations are given up to help employers remain competitive and thereby save jobs.!
NOTES:
EmployeeāManagement Issues
ā¢Unionized public sector public sector employees work in public administration at the federal,
provincial, territorial, municipal, First Nations, and other Aboriginal !
ā¢Managements responsibility to produce a proļ¬t by maximizing productivity sometimes
necessitates hard decisions, which limits a managerās chance to win popularity contest with
workers!
ā¢Workers originally formed unions to protect themselves from intolerable work conditions and
unfair treatment, and also to secure some say in the operations of their jobs!
The Early History of Organized Labour
ā¢Many of the early labour organizations were local or regional in membership!
ā¢Craft unions were formed to address fundamental work issues of pay, hours, conditions, and
job securityāmany of the same issues that dominate labour negotiations today!
ā¢Enormous productivity increases were gained through mass production and job
specialization !
ā¢Many Canadian unions started as locals of American unions, and this relationship continues
today. As democracy gradually gained strength, the union movement grew with it !
The Structure of Labour Unions in Canada
ā¢Unions aļ¬liate with labour congresses, also known as union centrals, for assistance at
national and international levels !
ā¢Laborersā International Union of North America (LiUNA)!
Unions in Canada can be divided into four types of labour organizations:!
1. Independent local!
2. Directly charted!
3. National!
4. International!
Union Coverage
ā¢Full-time work, longer job tenure, large ļ¬rms, higher educational attainment, and better
wages are associated with higher unionization rater!
