Industrial Relations Week 9: Strikes and Lockouts

Industrial Relations Week 9: Strikes, Lockouts, and Contract Dispute Resolution

• Course: ADM3334
• Professor: Qian Zhang
• Final Exam: December 13th, 7-9 pm, DMS1140
• Final Exam Survey: Available
• Group Assignment: Due November 11th, before 7:00 pm, submit via BrightSpace

Week 9 Learning Objectives

• Describe the purpose of strikes and lockouts
• Outline the prerequisites for a strike or lockout
• Identify factors affecting strikes and lockout activity
• Explain the role of government intervention in contract disputes
• Describe other methods to resolve contract disputes

Strike and Lockouts

• Strike: A cessation of work, refusal to work, or a slowdown of work by employees, in concert, with a common understanding. This is meant to restrict or limit output, or to refuse to work for the employer.
• Lockout: The closure of a place of employment, suspension of work by an employer, or refusal by an employer to continue employing a certain number of employees, to compel employees to agree on terms or conditions of employment. (Canada Labour Code)

Strike Tactics

• Work-to-rule campaign: Employees follow all rules exactly, but don't engage in any activities beyond those strictly required by the collective agreement.
• Rotating strikes: Employees strike at some locations, while others keep working.
• Wildcat strikes: Illegal strikes not authorized by the union.

Factors Affecting Strikes

• Differences in information between union and employer: Information asymmetry (one side has more information) leads to diverse expectations.
• Economic factors: Increases in labour demand and decreases in unemployment can heighten strike activity.
• Bargaining unit and community characteristics: Male-dominated and larger bargaining units are among factors associated with strikes.
• Internal conflicts within the union or employer
• Relationship between the union and the employer: Hostility, or history of bad relations.
• Negotiator skills and experience: Inexperienced negotiators, compared to chief negotiators
• Bargaining history: Positive or negative, prior experiences with negotiations.
• Legal environment: The frequency and duration of strikes, “re-opener” provisions.
• Employee discontent and frustration: Worker dissatisfaction, for example, in workplaces without sufficient autonomy or progressive human resource management practices.
• Conflict with employer or union: Internal conflicts within either the employer or the union.

Requirements for a Strike or Lockout

• No collective agreement currently in force
• Parties have bargained in good faith
• Conciliation or mediation process completed
• Strike vote
• Notice of strike or lockout
• Essential services agreement in place

Picketing

• Picketing is a method of demonstrating support for a strike, usually with signs at the employer's place of business to inform the public about the strike.
• Strike pay is offered by the union to those engaged in picketing.
• Accommodation and requirements related to picketing must be considered.

End of Strike

• A collective agreement may be reached or the union can call for an end to the strike.
• In certain jurisdictions (Canada, British Columbia, etc.), the minister of labour or cabinet may order a final offer vote.
• This vote happens when it is in the public interest to do so where legislation provides direction.

Reinstatement of Striking Workers

• In Ontario, when a strike ends, striking employees must be reinstated with priority over replacement workers.
• Legislation outlines the employer's obligation in reinstating striking workers.

Third-Party Assistance

• Conciliation: A process where a third party (a conciliation officer or board) assists the parties to reach an agreement before a strike occurs or is ongoing. It may be a single-stage or two-stage process.
• Cooling-off period: A mandated waiting period before a strike or lockout is permissible, typically lasting 7 to 21 days (depending on the jurisdiction), to allow for third party intervention and potentially allow for parties to reconsider. This period has advantages and disadvantages for various stakeholders.
• Mediation: A process where a neutral third party (mediator) helps the parties reach an agreement by facilitating discussion and assisting in devising solutions. The mediator does not have the authority to impose a settlement.

Arbitration

• Arbitration: Arbitrators make binding decisions after hearings. This process deals with disputes related to collective agreements, primarily in public sector, as an alternative to a strike. Both sides to the dispute will present evidence.
• Rights arbitration: Deals with disagreements in the administration of the collective agreement.
• Interest arbitration: Used primarily in the public sector as an alternative to strike actions.
• Problems with conventional interest arbitration:
• Chilling effect: Parties may avoid making concessions.
• Narcotic effect: Negotiators become too dependent on the arbitrator.
• Final Offer Selection: A form of arbitration, each side presents their final offer and an arbitrator chooses one. This may encourage compromise but could lead to hostility between the sides. There are advantages and disadvantages to this approach.

Next Week

• Chapter 10: Administration of Collective Agreements

This quiz covers the key concepts related to strikes, lockouts, and dispute resolution methods in industrial relations. Students will learn about the prerequisites for initiating strikes or lockouts, factors influencing their occurrence, and the role of government intervention. Prepare to explore various methods of resolving contracts disputes effectively.