This lecture introduces you to unions growth and incidence. The main contents of this chapter include all of the following: Union membership, evolution of unions, workers covered by unions, level of unionization, unions in Canada and U.S.
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Chapter Fourteen
Unions Growth and Incidence
Created by: Erica Morrill, M.Ed
Fanshawe College
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Chapter Focus
Union membership
Evolution of unions
Workers covered by unions
Level of unionization
Unions in Canada and U.S
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Unions
Collective organizations
Objective to improve the well-being of members
Play a role in social and political affairs
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Types of Unions
Craft unions
workers in a particular trade or occupation
Industrial unions
represent workers in an entire industry
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Unions and Collective Bargaining in Canada
Significant fraction of labour force
Upward trend
Higher among nonoffice than office
employees
Can influence wages and conditions of unorganized workers in the same
industry
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The Legal Framework
Reflects the changing social attitudes toward unions
Played a role in the increase in unions
Three phases
Prior to Confederation the law discouraged
unionization
1870s the law was “neutral”
Post WWII legislation encourages unionization
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Canadian Labour Relations
Policy
Established the right form unions
Collective bargaining protected
Bargaining units and representation
established
Certified unions became exclusive
bargaining representative
Bargain in good faith
Enforced
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Factors Influencing Union
Growth and Incidence
Substantial but erratic growth
Union density
higher than U.S., France, Japan
lower than Scandinavian countries
declined from 1980-1994
Collective Agreement Coverage
lower than the OECD countries
exceeds Japan,New Zealand,U.S.
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Benefits of Union Representation
Demand side
higher wages/nonwage benefits
greater employment security
protection from arbitrary treatment
Costs
dues, time, potential loss of income
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Benefits of Union Representation
Supply side
administering contracts are costly
unions will allocate resources to yield the greatest return
success in organizing depends on a variety
of factors
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Dimensions that Determine
Union Status
Workers become represented by certified union
Union is the exclusive bargaining unit
Influenced by workers decisions to
become union or nonunion
Influenced by the hiring decisions of
employers
Growth and decline over time
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Supply and Demand Framework
Level of unionization does not correspond
to actual supply and demand
government regulation
imperfect competition
Questioning individuals’ desire to be
unionized provides an estimate of
demand
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Social Attitudes Toward Unions and
Collective Bargaining
Affect the receptiveness of employees and resistance of employers
Difficult to measure
Attitudes becoming less favourable
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The Legislative Framework Governing Unionization and Collective Bargaining
Legislation influences supply and demand
Reflects society’s attitudes
Difficult to determine the independent
impact
In Canada
lowered cost of unionization
restricted employers from discouraging unionization
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Other Economic and Social
Legislation
Direction of effect difficult to determine
Raising of employment standards
minimum wage, overtime premiums
statutory holidays
health and safety
notice of layoff, severance pay
Social Programs
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Aggregate Economic Conditions
Union growth varies directly with growth
of employment eligible for unionization
Resistance low when demand for product
is high and labour market is tight
Unions able to secure wage and benefits when excess of labour demand
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Industry and Enterprise
Characteristics
Unionization higher in
larger firms
concentrated industries
capital-intensive production processes
hazardous jobs
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Personal Characteristics
Part-time workers and intermittent
labour
net benefits lower
costs of higher
Women
Blue-collar industries
Age and experience
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End of Chapter Fourteen