Short Answer Response (SAR) 1 (Module 2)

Industrial Relations
HRPD- 709 [001]

Submitted to:
Professor Jim McVittie

May 25th, 2023

Introduction

For the past 30 years, union membership in the Canadian private sector has declined. This
decrease can be attributed to several important factors. Globalization has led to outsourcing of
jobs and increased competition, reducing the bargaining power of trade unions. Legal and
political changes have made it more difficult to form unions and retain membership. In addition,
changes in the composition of the workforce, including increased employment in the service
sector, have in the past resulted in lower unionization rates.

Furthermore, as economic restructuring and the expansion of the service sector change in various
developed nations, a drop in union membership is a global trend spanning Canada. Since jobs
can be outsourced and there are now more non-unionized sectors as a consequence of pressures
to lower labour costs brought on by trade liberalization and globalization. The reduction has also
been exacerbated by legal constraints on collective bargaining in some jurisdictions and
changing perceptions toward unions.

To prevent the formation of a labor union, it is vital to prioritize transparency and open
communication. Organizational leaders should actively address employee issues and cultivate a
workplace culture that prioritizes positive employee relations. The key is to create an
environment where employees perceive management as being pro-employee, rather than
anti-union. The ultimate goal is to establish a work atmosphere where labor unions are not
needed, as employees feel valued, respected, and assured that their concerns will be listened to
and promptly resolved.

1. What factors have contributed to the overall decline in union coverage in the

private sector over the past 30 years in Canada?

Over the past 30 years, there has been a general decline in union coverage in Canada's private
sector. Here are some significant elements:.

Globalization: As markets become more interconnected and trade is liberalized, job outsourcing
and increased competition are the results. As businesses try to cut costs and stay competitive, this
has led to job losses and diminished union bargaining power. Globalization has also contributed
to the expansion of private service work to some 50-60% of total employment (Peters, 2002)

Legal and Policy Changes: Federal and provincial legislation has altered the nature of labor
relations. Labor laws have occasionally changed to be less supportive of unions, making it more
challenging for them to form and maintain membership. The decline in union coverage has been
attributed to anti-union campaigns, modifications to certification requirements, and the adoption
of right-to-work laws in some provinces (Dijkema, 2017).

Changing in workplace Composition: The composition of the workforce has changed over time,
with a rise in jobs in the service sector and a decline in jobs in historically unionized industries.
Historically, lower unionization rates have been observed in service sector occupations like
retail, hospitality, and information technology (Kumar & Murray, n.d.).

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2. Which of these factors are unique or specific to Canada? Compare what has

happened in Canada with developments in other countries.

Similar trends have been seen in other nations around the world, including Canada, where union
membership is declining. In many industrialized nations, including the United States, the United
Kingdom, and Australia, economic restructuring—driven by the collapse of conventional
manufacturing industries and the rise of service-oriented sectors—is a widespread phenomenon.
Homogenous pressure to cut labour costs has been applied by globalization and trade
liberalization to businesses in other countries, leading to job outsourcing and the significant
increase of non-unionized sectors.

A number of jurisdictions, notably the US and some European nations, have undertaken legal
and regulatory measures that restrict collective bargaining or the rights of unions to form.
Eventually, there have been changes in views and opinions toward unions across the globe,
though to varying degrees and at different rates depending on the country. These changes have
been driven by demography, ideological shifts, and media portrayals.

Although these elements are not unique to Canada, it is crucial to take into account the context,
significance, and interactions of these factors in each nation. The type of industries affected by
economic transformation, the degree of globalization, the rate of technological adoption, the
unique legal frameworks controlling labor rights, and the cultural dynamics surrounding unions
can differ significantly between nations. Therefore, a thorough understanding of the reduction in
union coverage necessitates looking at the particular characteristics of each nation, such as its
economic structure, labour laws, and political environment (Government of Canada, 2018).

3. What strategies do you think unions could adopted to mitigate the influence of

these factors?

The strategies unions could adopt to mitigate the influence of these factors: (Orechwa, 2019)
1. Implement an inclusive approach to discourage union organizing by adopting an
open-door policy. Ensure that employees have access to multiple channels of
communication and can escalate their concerns to higher levels of management in the
absence or unavailability of their direct supervisors. By providing alternative avenues
for addressing issues, the organization can undermine the need for employees to seek
union representation.
2. To prevent potential unionization efforts, it is crucial for managers to actively engage
and involve staff members in the decision-making process. By demonstrating
receptiveness and empathy, managers can effectively counteract efforts to organize
unions. Furthermore, incorporating input from the entire staff or appointing
representatives to advocate for their interests can be an effective strategy in mitigating
the need for union representation.
3. Unions can enhance their relationships with labor organizations worldwide,
promoting international solidarity. This solidarity enables the exchange of best
practices, facilitates coordinated efforts, and offers mutual support during labor

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 disputes or negotiations. By fostering global cooperation, unions gain valuable
insights and strategies to tackle shared challenges like outsourcing and globalization.

Conclusion

To conclude, over the past three decades, union membership in the Canadian private sector has
declined significantly. Factors such as globalization, legal and political changes, and changes in
the composition of the workforce have all contributed to this trend, affecting trade union
bargaining power and membership. Additionally, an in-depth analysis of each country's unique
traits enables a more sophisticated evaluation of the variables influencing the level of
unionization. Despite these variables not distinct to Canada, knowing the specific context of each
nation is essential for a thorough understanding of the reduction in union coverage. This
environment comprises industry composition, degree of advancement, demographics and tech
reforms.

It is currently more challenging than it once was to persuade workers to form unions, and this
challenge might become even more challenging in the future. Employers that oppose
unionization have developed tactics to discourage workers from organizing, primarily by
employing tactics that jeopardize job security. If the cost of wages and benefits would increase as
a result of unionization, management may choose to employ contract or part-time workers
instead. It's possible that they will decide to outsource the work as well, which would lead to the
complete elimination of jobs. Furthermore, many employers are investing in technology that will
decrease the need for human labor in the production of goods and the provision of services.
Despite the fact that it is impossible to know the future with any degree of certainty, it is likely
that managers and unions will continue to disagree for some time to come.

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 References

Dijkema, B. (2017). How Ontario’s labour law changes will affect unions. Policy

Options.https://policyoptions.irpp.org/magazines/june-2017/the-changing-nature-of-work/

Government of Canada, S. C. (2018, May 17). Unionization rates falling. Government of

Canada, Statistics Canada.

https://www150.statcan.gc.ca/n1/pub/11-630-x/11-630-x2015005-eng.htm

Kumar, P., & Murray, G. (n.d.). IRC Press CURRENT ISSUES SERIES Workplace Change in

Canada: Union Perceptions of Impacts, Responses and Support Systems.

https://irc.queensu.ca/wp-content/uploads/articles/articles_workplace-change-in-canada-union-pe

rceptions-of-impacts-responses-and-support-systems.pdf

Peters, J. (2002). A Fine Balance: Canadian Unions Confront Globalization CAW 567 OTTAWA.

https://policyalternatives.ca/sites/default/files/uploads/publications/National_Office_Pubs/fine_b

alance.pdf

Orechwa, W. (2019, October 29). 7 Helpful Tips to Prevent a Union from Organizing.

UnionProof. https://projectionsinc.com/unionproof/prevent-a-union-from-organizing/