Industrial Relation_Term Assignement_28th June 2023_Richa

Singh
 Question 1 - Discuss the dispute applying Craig’s industrial
relations systems model presented in the textbook. Carry
out appropriate research and use course concepts covered in
Chapters 1-6 to answer this question.

The Year of 2017-2018 has seen a number of labour disputes in

Canada, ranging from major strikes and lockouts to more
localized contract negotiations. One such dispute that has made
headlines across the country is the strike by the Ontario Public
Service Employees Union (OPSEU) against the government of
Ontario. This dispute has been ongoing since October 2017, when
OPSEU members walked off the job in response to what they
perceived as unfair working conditions and wages. This paper will
analyze the OPSEU strike through the lens of Craig's Industrial
Relations System Model. The model will be used to identify and
discuss the various external inputs, actors, internal inputs,
conversion mechanisms, and outputs associated with the strike.
The paper will then analyse to what extent the concepts of equity
and efficiency are relevant between labour and management in
this case.

Craig's Industrial Relations System Model is a useful tool for

understanding the dynamics of labour disputes. The model is
comprised of five elements: external inputs, actors, internal
inputs, conversion mechanisms, and outputs. External inputs
refer to the external factors that contribute to a labour dispute,
including economic conditions, legal regulations, and public
opinion. Actors are the individuals and groups who are involved in
the process, such as union leaders, government officials, and
employers. Internal inputs are the beliefs, values, and objectives
of the various actors, as well as their strategies for achieving
them. Conversion mechanisms are the processes and procedures
that are used to resolve the dispute, from informal negotiations
to legal proceedings. Finally, outputs are the results of the
dispute, such as wages, working conditions, and collective
agreements.

External Inputs
The OPSEU strike is an example of a labour dispute that has been
heavily influenced by external inputs. One of the most important
external factors in this dispute is the economic conditions of the
province of Ontario. The province has been facing a period of
slow economic growth, with successive provincial governments
struggling to reduce the deficit and balance the budget. This has
led to cuts to social services and public sector jobs, which has
created an environment of fiscal austerity. This has had a direct
impact on the OPSEU members, who have seen their wages and
working conditions deteriorate as a result.

The dispute has also been influenced by legal regulations,

particularly in regards to the government's ability to impose wage
freezes and other austerity measures. OPSEU has argued that the
government has overstepped its legal authority by imposing such
measures without consulting its members. Public opinion has also
been an important factor in the dispute, with many members of
the public supporting OPSEU's position and expressing sympathy
for the plight of public sector workers.

Actors
The OPSEU strike involves a number of actors, both on the labour
side and the management side. On the labour side, the primary
actor is OPSEU, which is the union representing the workers who
are engaged in the dispute. OPSEU is led by its president, Warren
Thomas, who has been a vocal advocate for the workers' rights
and has been a key figure in the dispute. The members of OPSEU
are also an important actor in the dispute, as they are the ones
who are actually on strike and are directly affected by the
outcome.
On the management side, the main actor is the government of
Ontario. The government is represented by the Minister of
Labour, Kevin Flynn, who has been the main point of contact
between the government and OPSEU. The government is also
represented by the provincial treasury board, which is responsible
for negotiating the terms of the collective agreement. The
employers of the striking workers are also an important actor in
the dispute, as they are the ones who will be affected by any
changes to the collective agreement.

Internal Inputs
The internal inputs of the OPSEU strike are largely defined by the
beliefs, values, and objectives of the various actors. On the
labour side, OPSEU's primary objective is to secure better wages
and working conditions for its members. This is driven by the
union's core beliefs and values, which emphasize fairness, equity,
and justice for workers. The members of OPSEU also have their
own individual objectives and beliefs, which are largely
determined by their personal experiences and backgrounds.
On the management side, the primary objective of the
government is to reduce the deficit and balance the budget. This
is driven by a belief in the need for fiscal responsibility and the
idea that austerity measures are necessary to achieve this goal.
The employers of the striking workers also have their own
objectives, which are largely driven by their desire to maximize
profits and ensure their businesses remain profitable.

Conversion Mechanisms
The conversion mechanisms that have been used in the OPSEU
strike highlight the complexity of labour disputes. The dispute has
been primarily resolved through informal negotiations between
the government and OPSEU. These negotiations have been
mediated by the Ministry of Labour and have involved a variety of
stakeholders, including union leaders, government officials, and
employers.
In addition to informal negotiations, the dispute has also been
resolved through legal proceedings. OPSEU has taken the
government to court on multiple occasions, arguing that it has
overstepped its legal authority in imposing austerity measures.
The court has ruled in favour of OPSEU on several occasions,
ordering the government to negotiate with the union in good
faith.

Outputs
The outputs of the OPSEU strike have been largely positive for
the union and its members. The union was able to secure a new
collective agreement that provided better wages and working
conditions for its members. This agreement included a wage
increase of 2% per year over the next three years, as well as
improved job security and a reduction in the number of contract
workers. The agreement also included a commitment from the
government to consult with the union before implementing any
further austerity measures.
Step-by-step explanation

Equity and Efficiency

The concepts of equity and efficiency are relevant to the OPSEU

strike, as they are often seen as conflicting values in labour
disputes. Equity refers to the idea that all workers should be
treated fairly and equitably, regardless of their position or status.
Efficiency, on the other hand, refers to the idea that labour and
management should strive to maximize productivity and minimize
costs.

The OPSEU strike highlights the tension between these two

values. On the one hand, the union was able to secure a new
collective agreement that provided better wages and working
conditions for its members. This can be seen as a victory for
equity, as the union was able to ensure that its members were
treated fairly and equitably. On the other hand, the new
agreement may have had a negative impact on efficiency, as the
wage increases and improved job security could lead to higher
costs for employers.

Conclusion

The OPSEU strike is an example of a labour dispute that has been

heavily influenced by external inputs, actors, internal inputs,
conversion mechanisms, and outputs. External inputs such as
economic conditions, legal regulations, and public opinion have all
played a role in the dispute. Actors such as OPSEU and the
government of Ontario have been key players, while internal
inputs such as beliefs, values, and objectives have determined
the strategies of the various actors. Conversion mechanisms such
as informal negotiations and legal proceedings have been used to
resolve the dispute, while the outputs have been largely positive
for the union and its members. Finally, the concepts of equity and
efficiency have been relevant to the dispute, as the union was
able to secure better wages and working conditions for its
members while potentially impacting the efficiency of the
employers.
Question 2 – Final Offer.

1. Do you agree with the authors of the class text that the formation of
the Canadian Auto Workers is one of the essential milestones in
Canadian labour history? If so, why, or why not?

Yes formation of Canadian Auto Workers is one of the essential

milestones in Canadian labour history as before that The 1980s
trend toward a less U.S.-dependent labour movement and in
1980s the United States were marked by concession bargaining
as well as less-labour-friendly governments and employers. These
changes played very strongly in the U.S. automotive industry.
However, the Canadian division of the union saw things
differently than its American parent. In the late fall of 1984, Bob
White, then director of the CAW, sought increased autonomy for
the Canadian branch of the UAW, including allowing the Canadian
division to set independent goals, have its own ability to call a
strike, and access the strike fund. When these requests were
denied, he set into motion a plan that would create an
independent Canadian union. In the fall of 1985, the Canadian
UAW was formally established. The next year, the union was
renamed the Canadian Auto Workers. The CAW has since merged
with the Communications, Energy and Paper workers Union of
Canada (CEP) to become Canada's largest private-sector union
(Unifor, 2015).

After separation, the CAW began to grow quickly in size and

stature. It merged with a number of smaller unions to double in
size and become the largest private sector union in the country.
Most notable were the mergers with the Fishermen, Food, and
Allied Workers and the Canadian Brotherhood of Railway
Transport and General Workers. The CAW also voiced strong
opposition to the then-federal government of Prime Minister Brian
Mulroney and such policies as the Goods and Services
Tax and free trade.

In 1998, the CAW was deeply involved in discussions

with Volvo Canada Ltd. and the Government of Nova Scotia over
the closure of the Volvo Halifax Assembly plant. In 2000, the
CAW was expelled from the Canadian Labour Congress when
several union locals left the SEIU and joined the CAW, prompting
accusations of union raiding. A settlement was reached a year
later that allowed the CAW to rejoin the national labour federation
but relations with other unions such as the International
Brotherhood of Teamsters, the United Steel Workers of
America and SEIU remain strained and the CAW remains outside
of the Ontario Federation of Labour.

2. What are the key economic, political, and sociocultural factors

influencing the parties?

Following are the key influencing factors i.e.

Economic - Macroeconomics may be thought of as dealing with

economy-wide issues, such as inflation, unemployment, and
growth. Macroeconomic policies have heavily impacted industrial
relations. Almost all industries have been affected by deregulation
or privatization. Also affecting industries is the North American
Free Trade Agreement (NAFTA), which promotes free trade in
goods and services among Canada, the United States, and
Mexico.

Where unions aren’t present, labour market forces will largely

determine wages, salaries, and working conditions. In ideal
conditions, the demand for labour matches its supply. If a small
increase in wages causes a large increase in the supply of labor,
the supply curve is said to be elastic. The extent to which
demand is inelastic is the extent to which unions can exert power
over wages and working conditions. Further, demand is more
likely to be inelastic when the following occur:

Product markets are less competitive—say, in the case of a niche

market demanding specialized worker skills.

It’s harder to substitute labour for capital, as in a case where

human labour can’t feasibly be exchanged for automated
production.

Labour costs are small relative to the total costs of production. n

Markets for product substitutes aren’t terribly competitive.

Sociocultural - Industrial relations exists in a web of social

relations—casual and transient, passionate and intense, familial
and tight-knit, or institutional and chilly. The selected social
measures serve as an assessment of the effects of globalization
on workers and workplaces.

Public attitudes toward unions have remained relatively stable

from 1936 to 2005. Available Canadian studies suggest two
findings. First, approval of unions remains relatively robust.
Second, attitudes toward unions may be somewhat more
sanguine in Canada, at least within eastern Canadian provinces
and especially among women and youths.

In tandem with relatively positive attitudes toward unions,

attitudes toward work appear to be quite positive. These facts
point to the paradoxical conclusion that American and Canadian
workers favour unions for other than economic or job-satisfaction
concerns.
Labour and employment-relations challenges emerge as part and
parcel of our present era. In general, new forms of work have
meant a significant shift in the labour-man- agreement balance of
power in favour of management. Meanwhile, as globalization has
impacted workers, working conditions, and workplaces, it has also
aggravated work-life balance issues.

Political - The Canadian political system has permitted the

actualization of pro-labour policies. There are two primary
reasons for this:

As opposed to the one-size-fits-all American labour-law system,

Canada has one federal, ten provincial, and several territorial
labour laws. As a result, varying labour issues in different regions
encourage adaptive, experimental legislation.

Canada’s parliamentary system of government allows labour-

oriented political par- ties a relevant and effective voice in
shaping national labour law in the context of coalition
governments.

Meanwhile, as an effect of globalization and international trade

agreements, Canada’s pro-labour positions are being diluted by
compromise. Trade agreements push Canadian labour law toward
standards established and adjudicated by international trade
boards. Therefore, for example, as conservative governments
took control in Saskatchewan, Ontario, and British Columbia,
union organization under the card system of certification was
scrapped in favor of the U.S. Wagner Act model. That model
includes a mandatory voting system—a system that’s all too
readily manipulated by anti-union forces within management.
3. How do plant level issues affect the negotiations ?

Automotive repair shop of General Motors not practicing good

safety. Some mechanics not wearing shirts and smoking in the
bays. Strike vote information sheets are handed to workers .Once
every three years Canadian auto workers negotiate their contract
with General Motors.The Canadian section of the UAW set up
negotiations in New York, no one is expecting any extraordinary
results. Before these 1984 talks are complete one of the most
powerful unions will be shaken to its core. Union has decided Oct
17thwill be the strike deadline. In Canadian Bob White is a hero
as Bob White has steadfastly refused to make concessions. The
vote to strike is approved by 94.3% of voting members. The need
for collective bargaining comes from conditions like that in the
plant in Oshawa. Where workers and management have always
viewed each other as enemies. Confrontations abrupt daily on the
line. Simple things like getting permission to use the restroom are
big issues. Workers have to ring the bell to be relieved for the
restroom break. As one workers request is ignored, the rest of his
co-workers start to support him by “ringing the bell.” GM
management believe it’s time to change and they have decided
1984 is the year. A profit-sharing wage scale is being proposed.
Once strike announced a day before it, there was vandalism
which was not good for CAW as Bob had fear that Owen could
revoke the strike orders and during strike also there were lots
riots and few incidents of misbehaving with women occurred.
Owen was adamant and forcing Bob to get agreement with GM as
he was asking BOB that only increase in hourly wage cannot be
the issue due to which agreement is not happening. You should
have other issues also otherwise he need to revoke the strike
orders.

4. To what extent does union democracy affect the negotiations?

The key bargaining issue between the two parties was that GM
wanted the Union to sign a contract in which the Union will share
the profits with GM while the union wanted a 3% increase in cost
of living allowance. The impact of the union democracy on this
dispute was initially reflected in opposition matter where they
were asking for 3 % of increase but GM agreed to Bob White ,
increase the cost of living allowance by 2.25% for 3 years which
was considered as a good deal. By using clever tactics and
commanding the respect of the union members Bob White was
able to strike a fair deal with GM. Bob White, who was the head
of the Canadian wing of UAW used integrative bargaining strategy
in the negotiations. In integrative negotiation both parties receive
more or less of their exact demands. Bob White also prevented
Jon Clott and Owen Beiber from foiling the negotiation
proceedings with GM.

5. How has the Canadian labour movement been impacted by the

decision of the Canadian union leadership to successfully
breakaway from the American based union?

Canadian Labour Movement is depiction of negotiation between

General Motors and the Canadian Union Workers. The negotiation
took place in the 1980s and reflect the life on assembly line
between management and labour trapped by dangerously
antiquated system that pits them against each other over the
pettiest issues. Bob White, who was leading the negotiation on
the union's side, he wanted to work out a deal with getting
General Motors Department Head, Owen Beiber involved. General
Motors wanted to go with a different type of contract, where the
union would share profits that GM made. The union would get
living allowance increase of 3%. The agreement was pushed off
and eventually the workers went on strike. The main difference
between the sides was that the union wanted a pay increase
yearly and GM wanted profit sharing and had some leveraging
power of their own. They were able to threaten the closing of
plants and loss of jobs. White decided to stop negotiations for 6
weeks hoping that GM would crack and finally, General Motors
had flinched. They offered Bob White a 2.5% increase for three
years, which was not the 3% that the union wanted, but Bob
convinced them that it was good enough deal to strike.
Ultimately, it provided a historical record of the birth of the
Canadian auto workers union (CAW) as Bob White , the head of
the Canadian sector of the UAW, led his membership out of the
International union and create the CAW

6. Do you think the documentary is objective?

Yes Final Offer Documentary is objective as it’s a good story

telling. Documentary has recounted the facts that makes story
universal. Its very balanced, fair and easily understood. It has
created story for audiences, affected by the core issues faced by
workers and unions. It has bought understanding regarding the
issue. This documentary has presented in such manner where
audience has affected by the issues, events and actions of GM
and unions.