BU354 Lecture Notes - Lecture 16: Trade Union, Collective Bargaining, Bargaining Unit
Chapter 16 – Labour Relations
• Labour union – officially recognized body representing a group of employees who have joined
together to present a collective voice in dealing with management
• Labour management relations – ongoing interactions between labour unions and management
in organizations
• Collective bargaining agreement (union contract) (CBA) – a formal agreement between an
employer and the union representing a group of employees regarding terms and condition of
employment, e.g. transfers, promotions, order if employees can be laid off and recalled
• Collective bargaining – negotiations between union and an employer to arrive at a mutually
acceptable collective agreement
• Bargaining unit – group of employees in a firm, that has been recognized by an employer or
certified by a labour relation board as appropriate for collective bargaining purpose
• Labour relations Strategy – an overall plan for dealing with unions, which sets the tone for its
union management relationship
• Union acceptance strategy – managers view the union as the legitimate representative of the
fir’s eployees
• Union avoidance strategy – when they believe that it is preferable to operate in a non-unionized
environment
• Substitution approach – where they become so responsive to employee needs so there is no
incentives to have a union
• Suppression approach – when there is a desire to avoid a union at all costs
• Caada’s labour las hae to geeral purpose:
o To provide a common set of rules for fair negotiations
o To protect the public interest by preventing the impact of labour disputes from
inconveniencing the public
• Business unionism – the activities of labour unions focusing on economic and welfare issues,
including pay and benefit, job security, and working conditions
• Social (reform) unionism – activities of unions directed at furthering the interest of their
members by influencing the social and economic policies of governments at all levels, such as
speaking out on proposed legislative reforms
• Type of unions
o Craft unions – associations of persons performing a certain type of skill or trade, e.g.
carpentry or plumbing
o Industrial union – labour organization comprising all the workers eligible for union
membership in a particular company or industry, e.g. skilled trades
• Local – group of unionized employees in a particular location
• Union stewards – who are responsible for representing the interests and protecting the rights of
bargaining unit employees in their department or area
Labour relations process
• Step 1: Desire for Collective Representation
o Dissonance based reasons – e.g. pay is low, or work environment is unpleasant
o Utility based reasons – where people compare the costs and benefits of having a non-
unionized environment or unionized environment
o Political/ideological reasons – a idiidual’s political or ideological beliefs may
influence their understanding of and desire for collective versus individual negotiation
of employment terms
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