Lecture 2 Labour And Industrial Relations In Construction PDF

LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL LECTURE # 2 EVOLUTION OF INDUSTRIAL & LABOUR RELATIONS IN CONSTRUCTION September 8, 2024 1  LABOUR AND I...

LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL LECTURE # 2 EVOLUTION OF INDUSTRIAL & LABOUR RELATIONS IN CONSTRUCTION September 8, 2024 1  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL LECTURE # 2: EVOLUTION OF INDUSTRIAL & LABOUR RELATIONS IN CONSTRUCTION 1. HISTORICAL DEVELOPMENTS IN INDUSTRIAL & LABOUR RELATIONS a) Ancient Times - Before 13th Century Power of all rulers was absolute. No challenge is possible. Their authority was only challenged upon the pain of death. b) Middle Ages ( 13th – 17th Century) Craft Guilds flourished in Europe as social & economic institutions, growing rapidly in power and influence in England by the 14th century. Major crafts: masonry, metal work, pottery, weaving, etc. Governed by Master craftsmen acting as employers, the guilds guaranteed the quality of workmanship and materials to consumers and also set prices. They also governed wages paid to all employees, established working conditions and controlled the admission and training of apprentices. The objective of these employers is to maximize the profits of their enterprises. Membership in a guild became a status symbol in society, distinguishing skilled craftsmen from the mass of illiterate labourers. September 8, 2024 2  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 1. HISTORICAL DEVELOPMENTS IN INDUSTRIAL & LABOUR RELATIONS (Cont’d) c) Revolution and Invention Age (18th-19th Century) Steam Engine (late 18th - early 19th century) discoveries, is known as the 1st industrial revolution, engineered into machinery of the industrial age. Working people began to migrate from cottage industry to the factories of the industrial age. With the capture of Quebec by General Wolfe in 1759, Canada became a British colony. Roles of workers began to change as newly invented machines demanded skilled workers to operate them. War of independence by American colonies created the United State of America (USA) in 1775. The French revolution began in 1789 encouraged by the American challenge to England. Sciences were being rapidly developed with each new discovery being hungrily absorbed by engineers in their search for industrial applications. The fight for the power of workers against the ruling classes resulted in labour 's demands for better working conditions. Strikes and work disruptions, all illegal, became common place. September 8, 2024 3  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 1. HISTORICAL DEVELOPMENTS IN INDUSTRIAL & LABOUR RELATIONS (Cont’d) In England, limited collective bargaining began in 1825 (Bargaining was restricted to wages and working hours). The Communist manifesto, prepared by Karl Marx, was published in 1847. In Canada, trade unionism was still in its infancy. However, it is moving towards new and progressive labour legislation developed in England. At the beginning of the 19th century, American labour was still strongly influenced by both British legacy and practice. The 2nd industrial revolution associated with mass production of electricity took place during the mid-19th century, reduced British influence on American labour. In the U.S., Abraham Lincoln began his program for the emancipation of slaves leading to Civil War (1861-1865) while Trade Union Act of 1871 in England laid the cornerstone of modern labour relations, e.g., collective action through a union was no longer considered to be criminal. In 1864, the Charlottetown Conference passed the British North American Act and Canada was born on 1 July 1867. Canadian labour relations influenced by the establishment of the American Federation of Labour (AFL) in 1886. In Canada, the Dominion Trade & Labour Congress (TLC) was founded in 1886, following the passing of the Canadian Criminal Law Amendment Act of 1872 to legalize all strikes. The AFL and TLC became the leading and enduring forces in the American/Canadian labour movements. September 8, 2024 4  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 1. HISTORICAL DEVELOPMENTS IN INDUSTRIAL & LABOUR RELATIONS (Cont’d) d) The Twentieth Century: As the twentieth century began, strikes & peaceful picketing became lawful in Canada. Progressive legislation, e.g., The Industrial Disputes Investigation Act (IDIA) of 1907, was established to recognize organized labour. Labour relations in Canada was under federal jurisdiction. Strike and peaceful picketing became lawful in Canada. In 1914, the Ford Motor Company voluntarily raised its basic wages from $ 2.40 for nine hours worked to $ 5.00 for eight hours. In 1925, the IDIA was ruled in a legal battle to be under provincial jurisdiction, laying the foundations for the establishment of the 10 provincial jurisdictions existed today in Canada. In 1933, the U.S. Congress passed the National Industrial Recovery Act which, among other things, gave employees the right to organize and bargain collectively. It became mandatory for employers to bargain with representatives of their employees. In 1935, Industrial unions in the U.S. leave AFL and established CIO (Congress of Industrial Organization) and those in Canada leave TLC and formed CLC(the Canadian Labour Congress). September 8, 2024 5  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 1. HISTORICAL DEVELOPMENTS IN INDUSTRIAL & LABOUR RELATION (Cont’d) d) The Twentieth Century (Cont’d): The National Labour Relation Act in the U.S. (also known as Wagner Act) became law in 1935. This Act enshrined the rights of employees to organize and it became mandatory for employers to bargain with representatives of their employees. It became the foundation of modern labour relations in the U.S. and also created considerable influence in Canada. American business investment in Canada and Canadian memberships in U.S. based unions inevitably brought with it American influence towards labour relations. The Wagner Act became the foundation of modern labour relations in the U.S. and exerted considerable influence throughout Canada. In 1955, AFL and CIO rejoined to form AFL-CIO in the U.S. In Canada, TLC and CLC rejoined to form CLC (Canadian Labour Congress). The third industrial revolution, which took place from 1970s - 1990s relating to rapid evolution of the computer and the Internet resulted in more militant labour whose objective is to prevent job loss caused by technological innovations. Current evolution (the 4th industrial revolution) mainly relates to AI (Artificial Intelligence) and related issues which are changing the way the world lives, thinks and interacts impacting labour in the coming years. September 8, 2024 6  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 2. PRINCIPLES OF INDUSTRIAL & LABOUR RELATIONS Necessity to establish rules & procedures associated with the rights of employees to join and organize trades unions as well as to exercise the rights to strike (by employees) or lock out (by employers) in an orderly and democratic manner. Labour relations laws established to reflect court decisions affecting labour and management in Canada by the federal government and all provinces. The basic principle of industrial and labour relations is reflected through a collective agreement, i.e., an agreement in writing respecting the conditions of employment made between the employees and their employers. 2.1 Labour Relation Boards(LRBs) Set up procedures relating to the negotiation, content & implementation of collective agreements incorporated in labour relation laws. Violations of these provisions are treated as civil offences. Responsibility to administer & enforce industrial and labour relation legislations is to be carried out by Labour Relation Boards.( Justice department, Crown prosecutors and police forces are not involved unless criminal actions arise out of labour relations activities). LRBs are government authorities established under labour relations Act and empowered to administer and enforce the terms and provisions of the Act. Board members are appointed by government, generally upon the recommendation of employers and union organizations. The LRB should represent equally employers and employees. September 8, 2024 7  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 2. PRINCIPLES OF INDUSTRIAL & LABOUR RELATIONS (Cont’d) 2.2 Union & Membership Union is a complex organization committed to advancing the economic and social interests of its members. Union is recognized as bargaining agent for a group of employees. Union must obtain legal recognition through the LRB and the geographic area concerned. Union must produce proof of its membership. Local unions established in all major areas to serve members of their trade in each locality. Construction unions play a key role in the labor market through wage negotiations, contract provisions dealing with work rules and policies as they attempt to secure favourable agreement terms for their members. A local union is represented by a business agent. 2.3 Certification: LRB to determine validity of union as representing employees' collective bargaining purposes through the process of certification. Conflict of interest between employers and employees. The former tries to maintain a non- union operation while the latter seeks to exercise their legal rights to bargain collectively through a certified union. 2.4 Notice to Bargain: Union is the exclusive bargaining agent of the employees' group,..i.e., it is the only body which is authorized to negotiate wages/working conditions, etc. with employers. September 8,2024It is the certified union which must issue the Notice to Bargain to negotiate a collective 8 agreement on behalf of its members.  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 2. PRINCIPLES OF INDUSTRIAL & LABOUR RELATIONS (Cont’d) 2.5) Strike & Lock-Outs No strike or lock out permitted while a collective agreement in effect. Lockout is used by employers to place pressure on unions by barring union members from the workplace. The only time a strike or lock out may lawfully take place is during negotiation or re- negotiation of a collective agreement. Conditions to be met before a strike or lock-out to take place: union members in favor of the action; opportunity to try and resolve the differences between management & labour by third party; all concerned have due notice that the action is about to take place. 2.6) Picketing The purpose of picketing is to enlist support for the strikers' cause. The picket line is also intended to make the strike as effective as possible in assembling at the entrances to the employer's premises and persuading all persons seeking admission to the employer's premises to turn away. September 8, 2024 9  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 2. PRINCIPLES OF INDUSTRIAL & LABOUR RELATIONS (Cont’d) 2.7) Injunction: A court order directing a person or a party to perform or cease to perform certain act. It is granted pursuant to an application by an injured party after a court has accepted evidence that injuries or harm are being sustained by the applicant. If an employer could demonstrate that a dispute with a union damages business, e.g., a work stoppage in a situation where the collective agreement contains a no-strike clause, then an injunction could be obtained. A judge has sole responsibility for hearing the facts pertaining to the dispute and issuing an injunction if the situation warrants. Failure to obey an injunction is a serious offence. The offender may be liable to contempt of court proceedings and could suffer heavy fine, imprisonment or both. 2.8) Accreditation: An employers’ organization can be accredited if it represents a majority of employers having bargaining relationships with the trade unions involved, and if these employer members hire the majority of the employees belonging to these unions. Accreditation gives the employers’ organization authority to represent all unionized employers within a particular trade, sector or geographical area. September 8, 2024 10  LABOUR AND INDUSTRIAL RELATIONS IN CONSTRUCTION BCEE 491-2 / BLDG 6811-2 Sect LL 2. PRINCIPLES OF INDUSTRIAL & LABOUR RELATIONS (Cont’d) 2.9) Unique characteristics of industrial and labour relations in construction The area-wide determination of wages and other conditions of employment. The assignment of work operations on the basic of craft jurisdiction. An area pool of labour to be allocated among construction projects’ work. Apprenticeship and training programs administered through the cooperative efforts of contractor associations, construction unions and government agencies. Labour is subject to both cyclical and seasonal fluctuations. It has historically been susceptible to long and bitter wage and working condition disputes between unions (employees’ association) and contractors (employers’ association). Labour problems on projects include illegal strikes as well as discontent over matters of accommodations, overtime pay, etc. A Pre-Job conference to provide unions which may be represented on-site with preliminary, general information concerning the project, e.g., labour collective agreements, construction methods, site layout, site regulations, project organization, etc. September 8, 2024 11  An Overview of Labor Management Relations Demands by Employees Pressures Placed on Impact of Collective Union by Constituent Bargaining on Employees Members Compensation & benefits Substantive Terms of the Collective Agreement Job Security Access to grievance Precursor Procedures Working Conditions - Compensation Conditions - Hours of Work Labour Unions - Working Condition Poor Personnel The Union-Management Enhancement of Group Power Policies Certification Process Administration Loss of Individual Power to Informal Joint Consultation Negotiations Dissatisfied Bargain Directly with the Contract Contract Employees Employers Union Organizing Campaign Unsatisfactory Compensation & Bargaining Unit Determination Impact of Collective Working Bargaining on Employers Conditions Certification Election Loss of Unilateral Managerial Discretion Regarding Employee Management Personnel Matters Feeling of Organizational Goals Powerlessness Greater Uniformity In Personnel Practices Financial Performance Pressure Placed on Changes in the Firm’s Management by Stock- Competitive Posture Growth & Diversification holders, boards,& CEO’s Changes in the Firm’s Productivity & Efficiency Social Responsibility