Macroeconomic Policy Impact on Labor Relations

Macroeconomic Policy and its Impact on Industrial Relations

• Macroeconomic policies aim to control inflation, reduce unemployment, and boost economic growth.
• These policies strongly influence industrial relations, affecting wages, job security, and the overall labor market.
• Key macroeconomic policies include deregulation (increasing competition), free trade agreements (promoting trade), and privatization (transferring public services to private ownership).

Labour Market Dynamics and Elasticity

• Labor market outcomes (wages, benefits, working conditions) depend on supply and demand.
• Future labor supply may not meet demand due to aging populations, slow population growth, and insufficient immigration.
• Labor supply and demand elasticities significantly affect unions' ability to increase wages without negatively impacting employment.

Wage-Employment Tradeoffs and Union Power

• A competitive product market reduces union leverage in wage negotiations.
• Labor substitution by technology or other resources limits union's ability to raise wages.
• Significant labor costs in total production costs weaken unions' bargaining power.
• Unions have more power in less competitive markets for substitute inputs (like capital or machinery).

Union Strength and Non-economic Sources of Power

• Strong unions form in less competitive product markets, where labor substitution is difficult, and labor costs are a small portion of production costs.
• Unions leverage power by forging alliances with community groups for organizational support, negotiating strength, and backing industrial action.

Labour Supply Dynamics

• Population growth and immigration contribute to an increased labor supply.
• Monopsony (a single employer dominance), institutional barriers, and unions (apprenticeships, hiring halls) are factors affecting labor supply.
• An aging workforce presents challenges for employers due to increased retirements.

Decline of Unions and Employer Challenges

• Globalization and increased competition decrease union influence on employers' decisions.
• Increased worker protections, and modern HR practices have reduced reliance on unions.
• Temporary and contingent work has made traditional union models less effective.
• The aging workforce requires strategies for retaining experienced workers.

Income Distribution and Poverty

• Income inequality has increased in many economies, with unions historically acting as a counterbalance for protecting the middle class.
• Canada's 2013 child poverty rate ranked poorly compared to peer countries, although it did improve by 2017.

Labour and Employment Relations Challenges

• Collective bargaining, initially adapted for stable, full-time jobs, now faces new dynamics in the gig economy and changing workforce.
• Contingent, part-time, and flexible work models shift power to employers.
• Balancing work and personal life is a rising concern, especially with increased workloads and job insecurity but also demands for flexibility.
• Employer concerns include high absenteeism, benefit costs, and reduced productivity impacting work-life balance.

Political Environment and Canada vs. US Labour Movements

• Canada has more labor-friendly laws and higher union density compared to the U.S., largely due to the Canadian Charter of Rights and support for collective bargaining.
• Globalization pressures governments to adopt international norms, reducing local reform options.

Agricultural Workers' Concerns in the Temporary Foreign Worker Program (TFWP)

• Issues include concerns around health and safety, housing, piece-rate pay, and fundamental employment rights under the TFWP.

Historical Perspective on Unions in Canada

• The Trade Union Act of 1872 gave unions legal recognition.
• The Industrial Disputes Investigations Act (IDIA) of 1907 established a formal process for resolving industrial disputes and advancing union recognition.

Labour Boards

• Government bodies, labour boards oversee labor laws compliance by unions and management related to certification/decertification, unfair labour practices, and illegal strikes/lockouts.

Certification Process and Bargaining Units

• Certification recognizes a union as the bargaining agent.
• Bargaining units are defined by workers' common interests and job roles and exclude management and other specific employees.
• Consideration is given to employee preferences and employer structure when defining bargaining units.

Unfair Labour Practices and Enforcement

• Violations of labor laws committed by employers, unions, or employees, including intimidation or coercion.
• Labour boards address unfair practices with remedies like reinstatement or corrective actions.

Duty of Fair Representation

• Obligation of unions to represent all members equally and without discrimination.

Collective Bargaining Processes and Legislation

• Good faith bargaining and dispute resolution mechanisms are crucial to collective bargaining.
• Canadian labor laws often involve more government intervention compared to the U.S. (Voluntarism).
• Processes include industrial inquiry commissions, last-offer votes, and first-contract arbitration.

Laws Impacting Collective Agreement Administration

• Strikes can be prohibited, particularly during an active collective agreement (labour peace)

Role of the Charter and International Labour Law

• Canadian labour laws are primarily governed by provincial legislatures, adhering to the Canadian Charter of Rights and Freedoms.
• Challenges include rights to strike, union representation, and charter challenges around workers’ rights.
• Key international conventions relevant to Canada include freedom of association (Convention 87), right to organize and bargain (Convention 98), declaration on fundamental principles and rights at work, supporting fundamental labour rights.

Summary

• Canadian employment laws have expanded workers' rights, strengthening legal protections and conditions.
• Legal principles in collective bargaining emphasize representation, transparency, government intervention, and protection against unfair practices.
• Challenges to worker rights have emerged, particularly regarding strikes and unionization, yet the Canadian Charter continues to shape labour law decisions.