Management Perspectives Towards Unions

As discussed in Chapter 2, an imbalance existed in the earliest relationship between employers and their employees. Employers viewed their workers as commodities they purchased through wages to produce goods and earn a profit. While an exchange technically occurred between the two parties, the power differential and employer rights created a relationship more akin to master-servant than employer-employee. Employees also lacked any firm legal protection for unionization until the 1940s. While workers and the labour movement persisted over time and Canadian workers now enjoy constitutional rights to be part of a union and collectively bargain and strike against their employer, there is still a lot of resistance from employers and, in some cases, the government.

In Chapter 1, we showed unionization rates across Canada for 2023, which revealed that an average of 30% of Canadian workers are represented by a union. We also looked at the different rates of unionization by province. A recent Angus Reid poll confirmed that these high numbers also correlate with Canadians’ perspective on unions (Korzinski, 2023). Atlantic Canada and BC residents tend to have more positive views toward unions, whereas those in Alberta and Saskatchewan are more critical. This same poll also revealed that men over 54 are the most negative toward unions, particularly public sector ones, while women aged 18 to 34 are the most supportive, believing unions should hold more power. This is also consistent with the high levels of women who work in the public sector and are often represented by a union.

The same poll revealed that public sentiment is divided on union influence, with 39% saying unions are too powerful and 41% feeling they wield the right amount of power (Korzinski, 2023). Recent high-profile strikes, including federal workers in many industries, including airlines and port employees, have shaped public opinion. Despite the reported economic impacts of these strikes, nearly half (47%) of Canadians prioritize workers’ right to bargain over potential economic risks. While views differ, most regions outside Saskatchewan support workers’ negotiation rights despite the possible economic fallout.

Yet, despite the known economic benefits and the relatively accepting view of Canadians towards unionization, rates of union representation in Canada have remained at approximately 30% since the early 1980s, with most Canadian workers not represented by a union. So, why is this? Stephanie Ross and Larry Savage (2021) offer some possible reasons that unions have not been able to organize beyond one-third of the population.

One of the first reasons they note is that shifts in the labour market, such as the rise of gig and part-time jobs, have made organizing more difficult (Ross & Savage, 2021). At the same time, legislative changes and pro-business policies in some jurisdictions have further hindered union efforts. They note that some workers, such as independent contractors and agricultural workers, are still prohibited from union representation.

Employers wishing to avoid the union will invest time and money in preventing successful organizing campaigns, often leading to anti-union practices and strategies (Ross & Savage, 2021). They also point out that employers may even engage in illegal union-busting activities in some cases since the penalties are worth bearing to avoid unionization in their workplace. Of course, not all employers adopt an anti-union strategy or develop a strategy for labour relations.

Labour Relations Strategy

Until the 1980s recession, most employers resisted unions and gave little consideration to developing a labour relations strategy. This resistance persisted throughout the unionization process, from employees seeking representation through organizing campaigns to discussing terms at the bargaining table.

Furthermore, the 1980s recession caused a decline in economic growth and intense competition among Canadian employers. As a result, employers began implementing human resource strategies that aligned more with business strategy than labour relations issues. Instead of a labour relations strategy, human resource departments and management teams follow principles or philosophies to solve labour relations matters.

These issues around unions and labour relations still exist today. Although Canada has laws and constitutional protection that give workers the right to unionize, they do not prevent employers from implementing labour relations strategies. Employers can respond to the union question in their organization in many ways. Some employers employ specific strategies to prevent unionization, while others voluntarily recognize a union in a new location.

Seven Factors of Employer Labour Relations Strategy

According to Gunderson, et al. (2005), there are seven determinants of an employer’s labour relations strategy:

1. Management business strategy
2. Union power
3. Union co-operativeness
4. Union militancy, especially strike propensity
5. The degree of unionization within the firm
6. Labour laws
7. Collective agreement provisions

Ultimately, management teams always have a choice of strategy to deal with unions, and this strategy may change as these seven factors change.

For example, a union has limited power over employees in a non-union workplace. However, this power differential shifts once the employees establish a union and negotiate a collective agreement. If tensions or allegations of unfair labour practices occur during the organizing campaign, unions may be less cooperative with management. Consequently, the employer’s strategy for engaging with the union may change.

Five Strategies for Unions

(Click on the arrow to read about each strategy)

Conclusion

While unionization rates declined after the 1980s public sector boost, they have remained steady over the last two decades. Unions continue to actively pursue certification of workers who lack union representation, but they face political, legal, and societal barriers. Many Canadians view unions as beneficial, especially those currently represented, but most employers still resist unionization efforts. Employers may react to union organizing efforts, but they may also have strategies to deal with existing unions or ward off workers’ attempts. Of course, the likelihood of an employer developing a labour relations strategy depends on many factors in the same way a worker’s decision to seek union representation does.

References

Del Ray, J., & Ghaffary, S. (2020, October 6). Leaked: Confidential Amazon memo reveals new software to track unions. Vox. https://www.vox.com/recode/2020/10/6/21502639/amazon-union-busting-tracking-memo-spoc

Gunderson, M., Ponak, A. M., & Taras, D. G. (2005). Union-management relations in Canada (5th ed.). Pearson Canada.

Hebdon, R., Brown, T., & Walsworth, S. (2020). Industrial relations in Canada (4th ed). Nelson.

Korzinski, D. (2023, September 1). Labour Day: Union members boost the benefits of organized labour, but almost 40% say membership costs exceed gains. Angus Reid Institute. https://angusreid.org/unions-strike-labour-canada-ndp-conservatives-liberals/

Mojtehedzadeh, S. & Wealth Reporter (2020, August 25). Foodora couriers win $3.46-million settlement following food-delivery giant’s abrupt Canadian closure. Toronto Star. https://www.thestar.com/business/foodora-couriers-win-3-46-million-settlement-following-food-delivery-giant-s-abrupt-canadian-closure/article_817954a5-5777-58b6-807a-fa2cce27f75a.html

National Union of Public and General Employees. (2014, July 29). B.C. Labour Board rules IKEA commits unfair labour practices. NUPGE Archives. https://archives.nupge.ca/content/bc-labour-board-rules-ikea-commits-unfair-labour-practices

Ross, S., & Savage, L. (2021, August 4). The advantages of unionization are obvious, so why don’t more workers join unions? The Conversation. https://theconversation.com/the-advantages-of-unionization-are-obvious-so-why-dont-more-workers-join-unions-164475

United Food and Commerical Works International Union. (2020, August 24). H&M workers at six New York stores say union yes with UFCW. https://www.ufcw.org/press-releases/hm-workers-at-six-new-york-stores-say-union-yes-with-ufcw-2/