IRE244H1 Chapter Notes - Chapter 12: Event Cinemas, Growth Factor
11 Dec 2018
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Course
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Chapter 12: Public-Sector Issues
● Why Study Public-Sector Labor-Management Relations?
○ A Significant Industry
○ Highly Unionized
○ Important Part of the Labor Movement in Canada
○ Different Legislative Framework
■ Ex: police officers and firefighters are deemed too essential to have the
right to strike
○ Role of Government
■ In public-sector bargaining, the government is both impartial umpire and
employer
○ Imperfect Labor Market
■ Public services are often offered in noncompetitive markets
● Services provided by teachers, nurses, firefighters, and police
officers, for example may be near monopolies; accordingly, these
occupations may have monopoly powers
■ A justification for the monopolistic provision of some services is that they
are public goods
■ The monopolistic provision of services of governments is that they are
often essential to the health and safety of the public
○ Politics and Public Opinion
■ Politics play a much greater role in public-sector collective bargaining
than in the private sector
■ Public opinion may play a role in reducing strikes and lockouts
■ Public sector bargaining laws tend to restrict the scope of bargaining to
conditions of employment
● History of Public-Sector Bargaining
○ Union Growth Factors
■ Social Upheaval (1960s)
■ The Growth in Public Services (1960s and 1970s)
■ Dissatisfaction with Existing Employee Voice Mechanisms
■ Union Mergers
■ Relative Absence of Employee Opposition
■ Removal of Legal Barriers
● An Economic Analysis of Union Power
○ The greater union power exists for three reasons
■ Some services, if disruptive, present a danger to the health and safety of
the public
■ Demand is relatively inelastic
■ Public-sector strikes affect the public, who have the power to punish only
one of the parties
○ Unions are more powerful when
■ (1) Demand for the product or service is inelastic
Document Summary
Important part of the labor movement in canada. Ex: police officers and firefighters are deemed too essential to have the right to strike. In public-sector bargaining, the government is both impartial umpire and employer. Public services are often offered in noncompetitive markets. Services provided by teachers, nurses, firefighters, and police officers, for example may be near monopolies; accordingly, these occupations may have monopoly powers. A justification for the monopolistic provision of some services is that they are public goods. The monopolistic provision of services of governments is that they are often essential to the health and safety of the public. Politics play a much greater role in public-sector collective bargaining than in the private sector. Public opinion may play a role in reducing strikes and lockouts. Public sector bargaining laws tend to restrict the scope of bargaining to conditions of employment. The growth in public services (1960s and 1970s) The greater union power exists for three reasons.
