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Chapter 2

ADMS 1000 Chapter Notes - Chapter 2: European Canadian, Labour Power, Inequality Of Bargaining Power

Administrative Studies
Course Code
ADMS 1000
Shahab Modirmassihai

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Chapter 2: The Employee – Employer Relationship
The Labour Environment and Canadian Society
Distinguishing Work and Employment
People depends on income from sale of labour.
oA relationship between an employer and employee.
oAn exchange of labour power for wages or benefits.
Employment contract:
oDefines terms and conditions on contractual relationship.
oReferences to services to be performed, working hours, compensation, and work related
Employee: a person hired by an employer to perform work according to the terms of an
employment contract.
Independent contractors (self-employed) (IC):
oProvide services for compensation.
Freedom from employers.
Can move from job to job
Flexible hour.
Reduce business costs.
Saves office space.
Full time wages.
Lack of employment security.
Lack of regular wage.
Risk of financial loss if the project failed.
Partners: people who share part ownership in a business.
Temporary placement organization: employment agency – help people find jobs.
oUnpaid individuals.
oPerforms services voluntary.
oReceives on the job training at workplaces.
oCan be paid or unpaid.
oCan have legal entitlements available to employees in Canada.
What is employee?
Degree of control:
oIC can control their schedules, charges, manner of their work, can also hire other people
to do the work for them.
oEmployee is told how to do work and being supervised.

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Degree of economic risk:
oIC faces risks of whether they get work or not. Risk of nonpayment. Potential
oEmployee earns consistent salary.
Degree to which the worker performs an essential service for and organization:
oPeople performs that essential service is more likely to get employed than someone else
doing a not important job.
Degree to which the organization provides the necessary tools:
oIC brings their own tools to the job.
oEmployees are provided tools by employers.
Standard Employment Relationship:
1930s – 1980s: Golden age for employment relationship.
oFull time employment.
oSingle employer.
oLife time career.
oPeriodic raises.
oHealth benefits.
oPension plans.
oGuided by government regulation.
Non-standard Employment Relationship:
Dominant since 1980s.
Part time, temp work, low pay, less benefits, shorter job tenure, low job security, no access to
many social protections, no bargaining.
35% of work force (mainly fresh university grads).
Perspectives on Work and Government Policy:
Neoclassical Perspective:
Competitive markets are the best means of organizing complex economies and societies.
Adam Smith’s Invisible Hand:
oNo need of government’s interference.
oThe price of labour being establish.
If Supply and Demand are left to operates under Invisible Hand:
oOptimal assignment of skills.
oFairest distribution of wealth.
Not concerns about low working conditions in the worker protection legislation.
Does not support minimum wage.
People are motivated by self-interest and have information to understand what is in their best
Managerial Perspective:
Businesses and workers want the business to be success
Management treats worker well -> workers be more productive. (wages, benefits, conditions)
Little of government interference. (employment standard and regulations)
No needs of Unions. Management takes care employees well.
Critical Perspective:
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