Chapter 13: Working with Labour Unions
13.3 Administration of the Collective Bargaining Agreement
Learning Objectives
By the end of this section, you will be able to:
- Be able to interpret language in a collective agreement.
- Be able to explain how to manage the grievance process.
Language in a collective agreement is normally drafted very carefully. Employers must be cautious when interpreting the agreement, as there must be consistency in practice across the organization. If one supervisor interprets a clause one way and grants a benefit, and another supervisor has a different interpretation and denies the same benefit, there is a lack of fairness in the process, and it will likely result in a grievance.
When interpreting a clause in the agreement, words such as “may”, “will usually”, or “normally” imply discretion, meaning that you can say yes or no depending on the circumstances. Other articles will use much more precise language: “shall”, “will”, and “must” permit no discretion on the part of the supervisor or manager. To interpret an article, a supervisor must:
- Pay attention to the context – does the situation match the situation in the collective agreement?
- Make note of the specific language – what discretion, if any, is permitted by the language in the collective agreement?
- What is the common practice in the organization? Your interpretation and application should be consistent with other supervisors and managers. If you are unsure, check with the Human Resources department.
A grievance procedure or process is normally created within the collective bargaining agreement. The grievance procedure outlines the process by which grievances over contract violations will be handled. This will be the focus of our next section.
Procedures for Grievances
A violation of the contract terms or perception of violation normally results in a grievance. The process is specific to each contract, so we will discuss the process in generalities. A grievance is normally initiated by an employee and then handled by union representatives. Most contracts specify how the grievance is to be initiated, the steps to complete the procedure, and identification of representatives from both sides who will hear the grievance. Normally, the HR department is involved in most steps of this process. Since HRM has intimate knowledge of the contract, it makes sense for them to be involved. The basic process is shown in Figure 13.8 “A Sample Grievance Process”.
The first step is normally an informal conversation with the manager, employee, and possibly a union representative. Many grievances never go further than this step, because often the complaint is a result of a misunderstanding.
If the complaint is unresolved at this point, the union will normally initiate the grievance process by formally expressing it in writing. At this time, HR and management may discuss the grievance with a union representative. If the result is unsatisfactory to both parties, the complaint may be brought to the company’s union grievance committee. This can be in the form of an informal meeting or a more formal hearing.
After discussion, management will then submit a formalized response to the grievance. It may decide to remedy the grievance or may outline why the complaint does not violate the contract. At this point, the process is escalated.
Further discussion will likely occur, and if management and the union cannot come to an agreement, the dispute will normally be brought to a mediator or arbitrator, who will work with the union and management to try and resolve the issue. A mediator acts as an impartial third party and tries to resolve the issue. Any recommendation made by the mediator is not binding for either of the parties involved. Mediators can work both on grievance processes and collective bargaining issues. For example, when the National Football League (NFL) and its players failed to reach a collective bargaining agreement, they agreed to try mediation. [1] In this case, the agreement to go to mediation was a positive sign after several months of failed negotiations. In the end, the mediation worked, and the NFL players started the 2011–12 season on time. In Washington State (as well as most other states), a nonprofit organization is available to assist in mediations (either grievance or collective bargaining related) and arbitrations. The goal of such an organization is to avoid disruptions to public services and to facilitate the dispute resolution process. In Washington, the organization is called the Public Employment Relations Commission (PERC). Figure 13.9 “The Mediation Process for the Public Employment Relations Commission in Washington State”shows the typical grievance handling process utilizing the free PERC services.
If no resolution develops, an arbitrator might be asked to review the evidence and make a decision. An arbitrator is an impartial third party who ultimately makes a binding decision in the situation. Thus arbitration is the final aspect of a grievance.
Some examples of grievances might include the following:
- One employee was promoted over another, even though he had seniority.
- An employee doesn’t have the tools needed to perform his or her job, as outlined in the contract.
- An employee was terminated, although the termination violated the rules of the contract.
- An employee was improperly trained on chemical handling in a department.
Most grievances fall within one of four categories. There are individual/personal grievances, in which one member of the union feels he or she has been mistreated. A group grievance occurs if several union members have been mistreated in the same way. A policy grievance deals with basic contract issues surrounding seniority or pay, for example. Policy grievances are filed by the union, not an individual. The important things to remember about a grievance are that it should not be taken personally and, if used correctly can be a fair, clear process to solving problems within the organization.
Key Takeaways
- To interpret an article in the collective agreement, supervisors must pay attention to the context, evaluate whether the contract language permits any discretion, and determine the common practice in the organization to ensure consistency.
- The GRIEVANCE PROCESS is a formal process to address any complaints about contract violations.
- The grievance process varies from contract to contract. It is an important part of the contract that ensures a fair process for both union members and management.
- HR is normally involved in this process, since it has intimate knowledge of the contract and laws that guide the contract.
- The grievance process can consist of any number of steps. First, the complaint is discussed with the manager, employee, and union representative. If no solution occurs, the grievance is put into writing by the union. Then HR, management, and the union discuss the process, sometimes in the form of a hearing in which both sides are able to express their opinion.
- Management then expresses its decision in writing to the union.
- If the union decides to escalate the grievance, an ARBITRATOR may be brought in to make the final binding decision.
- There are four main types of grievances. First, the INDIVIDUAL GRIEVANCE is filed when one member of the union feels mistreated. A GROUP GRIEVANCE occurs when several members of the union feel they have been mistreated and file a grievance as a group. A POLICY GRIEVANCE is filed by the union and is usually based on a larger issue, such as a policy or contract issue.
- Grievances should not be taken personally and should be considered a fair way in which to solve problems that can come up between the union and management.
Exercises
1: What are the advantages of a grievance process? What disadvantages do you see with a formalized grievance proces
[1] Associated Press, “NFL, Union Agree to Mediation,” February 17, 2011, accessed August 15, 2011, http://msn.foxsports.com/nfl/story/NFL-players-union-agree-to-mediation-federal-for-Labour-talks-CBA-021711.
Chapter Summary
- Union membership in Canada has been slowly declining. Today, union membership consists of about 28.8 percent of the workforce, while in 1981 it consisted of 37.6% of the workforce.
- The reasons for decline are varied, depending on whom you ask. Some say the moving of jobs overseas is the reason for the decline, or reductions in the numbers of government employees, or the use of technology which has also reduced the number of employees required in manufacturing, mining and forestry.
- The labour movement is responsible for many of the working conditions we take for granted today, such as an 8 hour workday and overtime pay.
- The United States has a low number of union members compared with other countries. Much of Europe, for example, has over 30 percent of their workforce in Labour unions, while in some countries as much as 50 percent of the workforce are members of a Labour union.
- The LABOUR RELATIONS BOARD is the overseeing body for labour unions, and it handles disputes between companies as well as facilitates the process of new labour unions in the developing stages. Its job is to enforce the labour code. Each province and territory has its own Labour Board and Labour Code, in addition to the national Labour Board that governs unions and employers in industries that fall under federal jurisdiction.
- To form a union in BC, the organizers have 90 days to collect signatures from 45 percent of the employees in the proposed bargaining unit. If this occurs, the BC Labour Relations Board will facilitate a card check to determine the signatures are valid. If they are valid, a vote will be called within 10 days, 55% of all employees must participate in the vote and the majority must vote for the union in order for it to be certified. The employer and union must then negotiate in good faith.
- To form a union in a federally regulated industry, the organizers have 6 months to collect signatures and $5 from 35 percent of the employees in the proposed bargaining unit; if more than 50% of the employees indicate their support for the union, it can be certified without a vote.
- Unions affects costs and operations, including staffing and selection practices, promotions, performance measurement, discipline and termination, and pay and benefits. Some companies will try to prevent a union from organizing in their workplace.
- In order to determine an appropriate bargaining unit, the Labour Board will hear arguments from the union and employer, and then make a decision after considering four factors: Management, Employee Wishes, Community of Interest, and Employer Structure.
- In a UNION SHOP, people must join the union within a specified time period after joining the organization.
- A CLOSE SHOP allows only union members to apply and be hired for a job.
- COLLECTIVE BARGAINING is the process of negotiating the contract with union representatives. Collective bargaining, to be legal, must always be done in good faith.
- The collective bargaining process can take time. Both parties prepare for the process by gathering information and reviewing the old contract. They then set time lines for the bargaining and reveal their wants and negotiate those wants. A bargaining impasse occurs when members cannot come to an agreement.
- When a bargaining impasse occurs, a STRIKE or LOCKOUT of workers can occur.
- Some tips for working with unions include knowing and following the contract, involving unions in company decisions, and communicating with transparency.
- To interpret an article in the collective agreement, supervisors must pay attention to the context, evaluate whether the contract language permits any discretion, and determine the common practice in the organization to ensure consistency.
- The grievance process is a formal process to address any complaints about contract violations.
- The grievance process varies from contract to contract. It is an important part of the contract that ensures a fair process for both union members and management.
- HR is normally involved in this process, since it has intimate knowledge of the contract and laws that guide the contract.
- The grievance process can consist of any number of steps. First, the complaint is discussed with the manager, employee, and union representative. If no solution occurs, the grievance is put into writing by the union. Then HR, management, and the union discuss the process, sometimes in the form of a hearing in which both sides are able to express their opinion.
- Management then expresses its decision in writing to the union.
- If the union decides to escalate the grievance, an ARBITRATOR may be brought in to make the final binding decision.
- There are four main types of grievances. First, the INDIVIDUAL GRIEVANCE is filed when one member of the union feels mistreated. A GROUP GRIEVANCE occurs when several members of the union feel they have been mistreated and file a grievance as a group. A POLICY GRIEVANCE is filed by the union and is usually based on a larger issue, such as a policy or contract issue.
- Grievances should not be taken personally and should be considered a fair way in which to solve problems that can come up between the union and management.