WDW 244H1F 2003W

1
WDW 244H1F 2003W

• LABOUR RELATIONS
• Professor Frank Reid
• Centre for Industrial Relations
• Week 13
• 2003-12-04
• Interest Based Bargaining
• International IR
• Course website http//individual.utoronto.ca/fran
  kreid

2
Announcements 2003-12-04

• Video Interest Based Bargaining A win-win
  approach for labour and management
• Arbitration assignments returned end of class
• - Arb grade is out of 25
• - class average on arb is 17.5/2570
• Midterm grade out of 100 is also recorded on your
  arb assignment (to ensure accuracy of records)

3
Announcements 2003-12-04

• Final Exam particulars
• Date Tuesday Dec 9, 2003, 7 pm to 9 pm.
• Location McLennan Physical Labs, 255 Huron
  Street
• Surnames beginning A-K Room MP 125
• Surnames beginning L-Z Room MP 126
• Check exam schedule to confirm!
• Final Exam format
• Answer only five of the following six questions.
  They have equal weight.
• Start each question at the top of a new page.
• Circle the question number in the Examiners
  Report to indicate which questions are answered
  in each book.

4
Interest Based Bargaining

• Bartletts P.A.S.T. Model of Win-Win
• Ref Bartlett, Jerome T. (1998) P.A.S.T. IS THE
  FUTURE, p. 20
• P.A.S.T.
• Principles
• Assumptions
• Steps
• Techniques

5
Principles

• Focus on issues not on personalities
• Focus on interests not on positions
• Seek a mutual gain
• Use a fair method to determine outcome

6
Assumptions

• Bargaining enhances the parties relationship
• Both parties can win in bargaining
• Parties should help each other win
• Open and frank discussion and information sharing
  expands the areas of mutual interests and the
  options available to the parties
• Mutually developed standards for evaluating
  options can move decision making away from
  reliance on power.

7
Steps

• Pre-Bargaining Steps
• Prepare for Bargaining
• Develop opening statements
• Bargaining Steps
• Agree on a list of issues
• Identify interests on one issue
• Develop options on one issue
• Create acceptable standards
• Test options with standards to achieve a solution
  or settlement

8
Techniques

• Idea Charting
• Brainstorming
• Consensus Decision Making
• Others

9
International IR Context

• Six main trends in industrialized economies in
  the last two decades
• De-industrialization
• Feminization of employment
• Less Secure employment
• Higher Unemployment
• Globalization
• Regional Trading Blocks

10
Deindustrialization

• Shift from goods manufacturing to production of
  services.
• Canada 72 of jobs in service (highest among
  developed countries).
• Increases pressure on unions because IR systems
  not adapted to private service economy.
• Stereotype of McJobs in service sector.

11
Deindustrialization

• In principle IR system should be able to
  accommodate the service sector.
• Advantages of service sector for unions
• Strikes more effective weapon because services
  not easily stored.
• Services less vulnerable to low-wage
  international competition because services cant
  be transported easily.

12
Feminization of Employment

• Female labour force participation rates rising,
  especially that of married women and grown
  children.
• Male labour force participation rates falling,
  due to earlier retirement and later entry into
  the labour force.
• Traditional female pattern of non-standard and
  part-time jobs becoming more common for males.

13
Less Secure Employment

• Greater polarization of wages and working time.
• Growth of less secure (precarious) employment.
• But Canadian evidence on job tenure does not
  support the widely held belief that jobs are less
  secure than in earlier decades.

14
Higher Unemployment

• Unemployment increased to 10 or more, even on
  countries that had traditionally had low
  unemployment (under 4).
• In Canada, even after the extended boom of the
  late 1990s, unemployment remained around 7.
• Difficult labour market reduced bargaining power
  of unions.

15
Globalization

• Economic transnationalism Lipsig-Mummes term
  for globalization.
• Refers to the increasing role of large
  transnational corporations in the world economy.
• Increased importance of regional trading zones.
• Nations compete for investment less control
  over national economic and IR policy.

16
Regional Trading Blocks

• The European Union (EU)
• Most successful and developed trading block.
• Free movement of labour and capital.
• Monetary integration The Euro replace national
  currencies in most EU countries in January 2002.
• Europeanization of labour relations occurring.
• Protection for vulnerable workers.
• possibility of Europe-wide collective bargaining.

17
Regional Trading Blocks

• Canada-U.S. Free Trade Agreement took effect
  1989.
• Expanded into the North American Free Trade
  Agreement (NAFTA) that took effect in 1994
• Includes U.S., Mexico and Canada
• No provision for monetary union or free movement
  of labour
• The North American Agreement for Labour
  Cooperation (NAALC) includes provisions for
  collective bargaining and employment standards.
• Free Trade Agreement of the Americas (FTAA)
  forthcoming.
• Questions Should Canada adopt the U.S. dollar as
  its currency ? What would be the IR implications?

18
NAALC

• Commitment to to promoting the following labour
  principles
• 1. Freedom of association protection of the
  right to organize.
• 2. The right to bargain collectively.
• 3. The right to strike.
• 4. Prohibition of forced labour.
• 5. Labor protections for children and young
  persons.
• 6. Minimum employment standards.
• 7. Elimination of employment discrimination.
• 8. Equal pay for women and men.
• 9. Prevention of occupational injuries.
• 10. Compensation in cases of occupational
  injuries and illnesses.

19
The Labour Market

• Similarities across advanced industrial states
• An Enterprise Focus
• Increased Flexibility
• Growing Importance of Skill Development
• Union Membership Declines

20
Union Membership Trend

• 1980 1994 Bargaining
• Country Coverage Coverage Structure
• North America
• US 26 18 Company
• Canada 37 36 Company
• Europe
• Germany 91 92 National/Sectoral
• United Kingdom 70 47 Company
• Sweden 86 89 National/Sectoral
• Asia
• Australia 88 80 Company
• Japan 28 21 Company

21
Explanation of Arb Grading

• You will notice on the top of your cover page
  that there are four numbers followed by a grade
  out of 25. This grade is simply the sum of the
  first four numbers. What follows is a breakdown
  and explanation of the four numbers.
• The first mark is out of five. It is a measure of
  clarity (identification and analysis of the
  issues).
• The second number is also a mark out of five. It
  measures thoroughness (value, appropriateness and
  sourcing of relevant cases from the LACs).
• The third number, too, is a mark out of five.
  This measures the grasp of the subject
  demonstrated by your response (ability to argue
  each case with an understanding that the burden
  of proof is on the employer).

22
Explanation of Arb Grading

• The fourth number is a mark out of ten. It
  measures the logic, persuasiveness and overall
  strength of your presentation.
• Some of you will see a fifth number with a minus
  sign, followed by a word in brackets. This means
  that you have been penalized for either lateness
  or failing to follow the formatting
  specifications outlined on the assignment.
• Please note that you were not graded for spelling
  or grammar. The comments on your paper concerning
  these issues are offered only as suggestions.
• Happy Holidays, Jonathan Eaton (T.A.)