Industrial Relations

Chapter 1
Union
Group of workers, recognized by law who collectively bargain
terms and conditions of employment with their employer
Industrial Relations
Found in unionized workplaces
Study of employment relationships of issues that pertain to
unionized workplaces
Labour Relations
The study of employment relationships and issues between
groups of employees (usually in unions) and management; also
known as union-management relations
Collection Agreement
Written document that outlines terms/conditions of work in
unionized firms
Negotiated 2-3 years
Employees cannot strike while the contract is still in place
Strike can only occur when the collective agreement has expired
Collective Bargaining
The process by which management and labour negotiate the
terms and conditions of employment in a unionized workplace
Human Resources
The study of the employment relationship between and
individual employees
Employee relations
The study of the employment relationship between employers
and individual employees, usually in non-union settings
Employment relations
The study of employment relationships and issues in union and
nonunion workplaces
Barbashs equity vs. efficiency theory
There is a basic/essential conflict at the heart of the labor
relations
Unions want equity and management wants efficiency

No job security without efficiency, therefore unions sometimes

dont get it. They have to realize that if they want that stuff they
have to see the bigger picture. Meaning increased productivity

Dunlops IR model (four key components)

1. Actors
Government agencies: develop, implement, and administer
legislation and policies pertinent to the employment
relationship
Management: manage the workers and workplace in
question
Workers: non-management workers in employment
relationships. Labour unions often representing the workers
2. Shared Ideology
A set of ideas/beliefs held by the actors that helps to bind
or integrate the system together as an entity
Example in NA shared belief that negotiate with unions to
solve bread and butter issues-wages or work hours
Dunlop stresses that industrial stability depends on the
three actors sharing this ideology, thus the shared ideology
legitimizing the role of each actor
3. Contexts
The 3 actors might be influenced by any of several
environmental contexts
o Market and budgetary constraints
o Technical characteristics of the workplace and work
community
o Distribution of power in the larger society
4. Web of rules
a. The employment relationship consists of a web of rules
that outlines the rights and responsibilities of the actors in
question
i. Procedural rules: processes used for making the rules
and who has the authority to make and administer
the rules that govern the workplace
ii. Substantive rules: Pertain to the outcomes of the
employment relationship ex. Employee
compensation and job performance
iii. Distributive: Rules that could determine and or apply
substantive rules ex. How wages are determined,
work schedule, vacation time etc.
Craigs Model
4 (Dunlops)+ 1 more component [End User]

Industrial relations actors take elements from the external

environment and convert these inputs into outputs through a
series of conversion mechnisms. These outputs then flow back
into the environment through the feedback loop
End user (management outcomes, labor outcomes and EE
outcomes)
1. External Inputs
a. Legal
i. Common law: the earliest form of employment
law & applies to nonunion employment
relationships
ii. Statutory law: concerning minimum
employment standards, & employment
discrimination, covering issues such as
minimum wage and employers discrimination
based on factors not linked to pay i.e. age
iii. Collective bargaining legislation
b. Economic
i. Product/service markets: availability of
products/services, & org relative competitive
position in its market. Tight/loose market
ii. Labour markets: the supply of, & demand for,
workers with the skills needed for the
workplace in question
iii. Money markets: firms are affected by the value
of the dollar
iv. Technology: New work methods, job redesign,
layoffs
c. Ecology
i. The physical environment, climate, & natural
resources that influence actors & the industrial
relations system (location of job) i.e. Oil in
Alberta
d. Political
i. Governments use legislative action to create &
amend legislation relative to employment i.e.
the government put in place the back to work
legislation ending mandatory retirement
e. Socio-cultural
i. Societies values can influence actor
perceptions. Public support is weak for unions
2. Internal inputs

a. Values: Each actor has values that guide their

actions. Employers may value profitability whereas
labour may value fair treatment of workers
b. Goals-Values result into making goals. Unions want to
maximize security/equity. Managements goal is
efficiency
c. Strategies-process developed & implemented to
achieve goals
d. Power- the ability to make the other actor agree to
your terms
3. Conversion Mechanisms
a. The processes by which actors convert external and
internal inputs into outputs of the industrial relations
system
i. The collective bargaining process (negotiating
a collective agreement)
ii. Grievances (complaints written by employees
that the collective agreement has not been
followed)
iii. Day to day relations (daily conversations with
the manager)
iv. Third Party interventions (outside
groups/mechanisms that are used)
1. Strike/lockouts-work stoppage
2. Grievance arbitration (independent
arbitrator decides)
3. Mediator- 3rd party attempts to facilitate
a resolution between labour &
management
4. Interest arbitration-when collective
agreement is not met, an arbitrator
makes a binding collective agreement
Outputs
Results/outcomes of the conversion mechanisms
o Employer Outcomes- responsibilities of management
(productivity, efficiency and profitability)
o Productivity (output over input) (Output includes goods and
services) (Input includes land, labor and capital)
Labour outcomes Equity issues & ways to instill fairness in the
workplace, including
o The right of, & security for the union
o Hours of work
o Wages & benefits
o Job rights (job assignment & selection, layoff provisions)

Workers
o Work climate- overall work environment
o Employee morale & org commitment- extent to which employees
are satisfied/committed to their org
o Union satisfaction & commitments-extent to which employees
are satisfied with their unions
o Conflict resolution (or conflict resolution)- an output can be
conflict (strikes or lockouts) or a resolution.