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EMPLOYEE AND LABOUR RELATIONS

INTRODUCTION

Companies need people to accomplish business goals. People need companies

to employ them so that they can afford to live and accomplish personal goals. This
relationship describes the foundation of the industrial revolution. Over the years,
employers have come to realize that their workers are partners in achieving success.
Employee relations refers to the activities that support a positive relationship between
workers and management. Human resources policies, the organizational culture,
management policies and communication strategies all affect an employee’s
perception of the organization and impacts the individual’s want to contribute to the
organization’s success.

When there is a break down in the relationship, a union may be formed to help
employees regain their confidence as members of the organization. Labour relations
refer to union relations with the company. When there is a union, a collective bargaining
agreement describes the relationship between workers and employers. Although the
collective bargaining agreement governs their relationship, there is room to foster a
positive work environment outside of the agreement.

The concepts presented in the following notes come from the following authors:
Cascio, W. F., Crandall, W. & Menefee, M. L., Fitz-enz, J. & Davison, B., Kehoe, F. &
Archer, M., Lussier, R. N., McShane, S. L., Morneau Sobeco Inc., Robbins, S. P. &
Langton, N., Coulter, M., Saks, A.M., Haccoun, R. R., Schwind, H., Das, H., Wagar, T.,
Slaikeu, K. A., Hasson, R. H., Suffield, L. and Templer, A. J. are credited with the
ideas presented. Specific references are noted where possible. A reference page is
included at the end of this module.

This module presents the required professional capabilities– RPCs™ in

Employee and Labour relations. It is not a full text of the knowledge base on employee
and labour relations but rather a summary of key points to consider when studying for
the National Knowledge Exam- NKE™. Please refer to the respective texts listed on the
reference page for in-depth discussion on each area of knowledge.

The RPCs™ for Employee and Labour relations for the NKE™ includes all of
the following:

Employee Relations Practices

RPC 96: Provides support and expertise to managers and supervisors
with respect to managing people.
RPC 97: Provides advice and counseling for employees.
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RPC 99: Provides advice on issues relating to labour and employee

relations including hiring, discipline, and termination.
RPC 100: Researches, develops, and implements HR policies.
RPC 101: Provides advice on the application of HR policies, procedures
and practices.

Conflict Resolution
RPC 102: Analyzes and provides advice on employment rights and
responsibilities.
RPC 103: Effectively handles disagreements and conflicts.
RPC 105: Recommends and/or initiates actions in response to known or
suspected incidents of misconduct.

Labour Relations and Collective Bargaining

RPC 112: Collects and presents information required for decision-
making in the bargaining process.
RPC 115: Provides advice on the interpretation of the collective
agreement.
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EMPLOYEE RELATIONS PRACTICES

RPC 96: Provides support and expertise to managers and supervisors

with respect to managing people.

An effective HR professional will often be called upon for advice about

managing people or management in general since HR professionals should be experts
in human resources. As such, the HR professional can combine the concept of HR
management, human relations, organizational behaviour and supervisory skills that are
inherent in HR academic programs. The HR manager will support the line managers
and other functional managers in the development, implementation and maintenance
of management initiatives. The HR manager may coordinate staff as well. Thus,
knowledge of management concepts is beneficial.

Managers are organizational members that work through other people to

achieve organizational goals by coordinating peoples’ activities (Robbins, DeCenzo,
Coulter & Langton, 2013). As such, management is the process of organizing work
activities with and through other people. The goal is to complete the activities effectively
and efficiently. Henry Fayol, the father of management, described four basic functions
of management including planning, organizing, leading and, controlling. Henry
Mintzberg suggested that managers have the following three roles: interpersonal,
informational and, decisional. To accomplish these functions and roles, Robert L. Katz
suggested that the skills needed include technical, human and conceptual. It should be
noted that there is a difference between transformational leadership and transactional
leadership. Management is transactional leadership, whereas, leadership is
transformational, (McShane & Steen, 2012). McShane et al. further distinguish
managing from leadership by describing managing as aiding a company to reach its
goals and leading as changing a company’s strategies and culture. Both sets of skills
are necessary in a successful organization.

Organizations are the conscious grouping of people for a particular reason

(Robbins, DeCenzo, Coulter & Langton, 2013). Sports teams are organizations.
Employee unions are organizations. A classroom of students is an organization.
Organizations have the following characteristics in common: they have a distinct
purpose; they are composed of people and, they have a structure to facilitate work or
activities. The discussion of developing appropriate work processes was reviewed in
another module. Once an effective work process is designed, the manager will monitor
it and try to control the inputs (human resources, raw materials, etc.) to optimize outputs
(products or services). To do this, the manager needs to understand the practical
application of activities to read the company’s goals and objectives. The manager must
balance employee behaviour, work processes, raw materials etc. to ensure productivity.
This is not an easy task. Ethics, workforce diversity, globalization, technology especially
e-business and e-commerce, customers, innovation and knowledge all add to the
complex role and function of management (Robbins et al., 2013).
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The HR professional should know and understand how the organizational culture
and environment affects its human resources and the employees’ abilities to contribute
to the achievement of the strategic plan. The HR professional needs to help other
managers understand this facet of their respective organization. The HR professional
should be at the pulse of human activity in the organization to help guide and correct
supervisory techniques and reward strategies. In essence, many line managers may
understand the technical aspect of accomplishing a task; however, they may not
understand the human aspect of accomplishing a task. This is where the HR
professional through their knowledge of organizational behaviour, human relations,
communication methods, and motivation techniques can be of service. The HR
professional should be able to understand and communicate how employees may
perceive different managerial strategies and programs and what the implications may
be of different managerial decisions and their implementation. For instance, failure to
involve employees during the justification and planning stages of an information system
implementation could result in low morale and low buy-in and lost productivity and poor
customer service.

It is important to get information to employees. If a company wishes to instill its

mission statement and values into its employees to promote organizational citizenship,
it needs a method of communication that envelopes its employees. Companies
communicate their culture through policies and procedures. A no-layoff policy tells
employees that they are valued. Schwind, Das, Wagar, Fassina and Bulmash (2013)
discuss upward and downward communication systems where information either flows
from management to employees or from employees to management. Common methods
of getting information to employees includes information booklets on policies and
benefits, in-house publications such as newsletters, electronic communication such as
company-wide e-mails, pre-recorded messages on answering machines and open-book
management techniques that allow employees to see how the company is doing.
Information empowers employees. Methods for employees to get information to
management include the grapevine, email, in-house complaint procedures, manager-
employee meetings, suggestion systems, and attitude surveys (Schwind et al., 2013).
The grapevine, an informal “gossip” channel, gives management excellent feedback
about employee perceptions. Manager-employee meetings give good face-to-face
opportunities for communication. In-house complaint procedures need to be managed
effectively to encourage solutions to problems identified. Suggestion systems work well
if they are facilitated with integrity. That is, if a company asks for suggestions, it should
be ready to act on them. Procedures for reviewing the suggestions and giving feedback
will encourage participants. Adding incentives for suggestions will encourage more
participation. Excellent suggestions and the resulting reward are excellent items to
include in company newsletters.
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Cascio (2013) suggests, “Management systems that produce profits through

people seem to share seven dimensions in common”: 1.) employment security; 2.)
selective hiring; 3.) self-managed teams and decentralization are basic elements of
organization design; 4.) comparatively high compensation contingent on organizational
performance; 5.) extensive training; 6.) reduced differences in status; and, 7.) sharing
of information. It is evident by the list that HR professionals can contribute to the
management of people through programs, policies and procedures (p. 26).

EMPLOYEE RELATIONS PRACTICES

RPC 97: Provides advice and counselling for employees.

Although most HR professionals are not trained as counsellors, many

employees will turn to HR for advice. Caution needs to be exercised when giving advice
or direction. Often an employee just wants to vent for emotional release. The inclusion
of an employee and family assistance program will give the employee and the HR
department an appropriate medium for dealing with personal and family issues that
arise. The HR professional can provide counselling through numerous HR programs
such as career development, outplacement services, performance management, stress
management, retirement management, benefits management and EAP’s.

Career planning is another form of counselling in which an HR professional will

participate. The objective of career planning is to help the employee identify personal
goals and how to achieve them through the company’s development programs. As
discussed in the training and development module, numerous assessments will help
guide the discussion. The HR professional need to keep the company’s future plans
and succession plans in mind as the employee is counselled. An appropriate time for a
career planning counseling session is during a performance review or during a goal
setting session for the next year. Coaching and mentoring programs can help
employees progress in their careers. The counseling and advice given tends to be
supportive and evocative. This is a proactive program that HR professionals may wish
to institute.

Templer (1999) suggests “training and development specialists are responsible

for counselling employees, helping them to make better choices about their careers,
and finding ways to achieve those desired goals” (p. 20). During a company
downsizing, counselling can change to support outplacement services by providing
career guidance, retraining, resume writing, training in interviewing techniques, career
and personal counselling, and job-search methods to help the employee find a place
with another company. This task is often outsourced to an outplacement specialist
especially when there are a number of terminations. However, for terminations of a few
employees, it is often the HR specialist that will help the employee. The goal of the
outplacement program is to mitigate losses to the employee.
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Employees may also need advice when deciding which benefits to choose in a
flexible benefits program. Exemplars of benefit combinations for different family
compositions will help the employee decide. Morneau Sobeco (2011) suggest that
because employer pension plans are meant to supplement retirement income and not
replace government benefits and personal savings that many employees may not be
appropriately prepared for retirement. Earlier, it was suggested that 75% of pre-
retirement income should be substantial enough for post-retirement years, however,
that could be a lot of money. As well, some retirees may not understand how to budget
or deal with financial needs that were once part of employment. As well, health issues
may be unpredictable and expensive to deal with. Morneau Sobeco (2011)
recommends preparing employees for retirement through financial counselling and
retirement planning programs such as: seminars followed by individual counselling
sessions, goal setting sessions that focus on personal and financial objectives,
lifestyle discussion forums. Counselling sessions can cover: the pension amount,
government benefits, tax issues and retirement income options. All information should
be delivered by professionals since there is increasing concern of poor pension plan
communication to members resulting in lawsuits.

There may be times when employee counselling will need to take place because
the employee is experiencing a personal health problem or a problem with family.
Employee assistance programs – EAP’s, have become common components of
benefits programs. By using the counselling process through the company’s EAP, the
HR professional ensures that the employee is connecting with a professional.

“The EAP is an operation that is designed to help employees deal with such
problems as "alcohol and chemical dependency, emotional problems, stress,
pre-retirement planning, marital problems, careers, finances, legal matters, or
termination." In addition, EAPs are becoming involved in everything from helping
employees who have AIDS to counselling on cultural diversity issues” (Templer,
1999, p. 452).

HR professionals are not in psychologists and should be cautioned when

offering advice. Referring the employee to the Employee Assistance Program - EAP
and following-up may be the best course of action. For instance, the employee may
have an underlying substance abuse problem that is not evident in the discussion.
Without professional help, the problem could worsen and be fatal.

The HR professional may need to counsel an employee due to stress-related issues.

An example is burn-out. “Burn-out is a multifaceted phenomenon, the by-product of both
personal and organization variables. It can be defined as a function of three concerns: (a)
emotional and/or physical exhaustion, (b) lowered job productivity, and (c) automatized or
machine-like performance of duties” (Templer, 1999, p. 451). Causes of burnout include
work ethic, size of organization, perceptions of management activities, co-worker relations,
age, seniority, job satisfaction and turnover rate. These factors do not always result in
burnout for every individual. Different people handle stress
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differently. Methods to use to reduce burn-out include identification, prevention,

mediation, and, remediation (Templer, 1999, p. 451). The solution is to support the
employee through discussions. Programs to help alleviate burnout tend to result in
making the job more pleasant and increase productivity. Many organizational
textbooks rally the adage “a productive worker is a happy worker.”

Offering personal days off and family days off will help the employee have the
time to properly deal with family issues. Employee and Family Assistance Programs
help individuals deal with the pressures of today’s society and may help the employee
avoid chronic stress issues. Today’s society demands more of people and families in
general. Helping employees cope will result in a healthier productive workforce.

EMPLOYEE RELATIONS PRACTICES

RPC 99: Provides advice on issues relating to labour and employee

relations including hiring, discipline, and termination.

Schwind, et al. (2013) define employee relations as “a complex blend of

organizational culture, human resource practices, and individual perceptions” (p.391).
They suggest that all human resource activities affect employee relations. Thus, it is
important to put all activities into organizational context. That is, each organization will
have different labour and employee relations relative to its industry, environment,
organizational culture, organizational structure, management style etc. Schwind, et al.
(2013) posit five dimensions of employee relations: employee communications,
employee counselling, employee discipline, employee rights and employee involvement
(p. 392). HR professionals can develop organizational policies that can enhance
employee relations. This discussion will follow the five key dimensions of employee
relations and the respective policies that can enhance their effect.

Effective employee communications include downward, and upward

communication systems. Downward communications include in-house publications,
information booklets, pre-recorded messages, electronic communication, information
sharing, open-book management, bulletin boards and, company-wide meetings.
Upward communications include in-house complaint procedures, suggestion systems,
electronic communication, the grapevine and, employee attitude and opinion surveys.
Care should be taken to use the correct communication medium to convey
messages.

Employee counselling “is the discussion of a problem with an employee with the
general objective of helping the worker resolve the issue or cope with the situation so
that he or she can become more effective” (Schwind, et al. 2013, p. 400). Counselling
functions include giving advice, reassuring the employee, providing a communication
forum, release of emotional tension, clarified thinking and, reorientation. Employee and
family assistance programs to help employees deal with personal issues.
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Employee discipline is “management action to encourage compliance with

organizational standards” (Schwind, et al. 2013, p. 401). Employee discipline includes
preventive, corrective, progressive and positive discipline. There may be restrictions on
discipline if there is a union. Preventive discipline is meant to encourage compliance.
Programs to manage absenteeism and grievances are examples. These programs
communicate the need for all employees to follow standards. Corrective discipline
programs are meant to help the employee get back on track after breaking rules. The
focus is on education. Progressive discipline is “the use of stronger and stronger
penalties for repeated offences” (Schwind, et al. 2013, p. 402). Progressive discipline
programs are meant to give the employee a chance to resolve rule infractions with more
serious outcomes if unsuccessful. Positive discipline focuses on resolving infractions as
a problem-solving process. Steps include: 1.) focus on the specific problem; 2.) agree
on the issue; 3.) solve the problem; 4.) discussion and documentation; and, 5.) follow-
up (Schwind, et al. 2013, p. 403). There may be restrictions on discipline programs if
there is a union. HR professionals should follow due process to avoid any infractions of
employee rights or the collective agreement. Dismissal is discussed in detail in another
module. However, it is noted that dismissal is the progressive outcome of disciplinary
action. Dismissal can be conducted for just cause, incompetent work performance,
misconduct and for business or economic reasons. Reasonable notice or pay in lieu is
given for employees not dismissed for just cause. HR professionals are cautioned to
avoid constructive dismissal and to manage the dismissal to maintain the employee’s
dignity. The dismissal interview should be well-thought out with consideration for extra
security if necessary.

Employee rights “refer to those rights desired by employees relating to working

conditions and job security” (Schwind, et al. 2013, p. 408). They include the right to
privacy and the right to fair treatment. Confidentiality of personal information must be
respected and appropriate methods to ensure this should be in place. HR policies
include password-protected electronic databases and locked personnel files. The
right to fair treatment refers to giving any employee a reasonable chance at
employment and employment success regardless of age, race, gender, religion or
physical disability unless there is a bona fide occupational requirement. Proactive
diversity programs can transform the working environment to value all differences and
embrace them. During restructuring and business closings, employees need to be
treated fairly. The HR professional should consult the respective provincial legislation
for direction on mass layoffs for notice requirements.

Employee involvement programs aim at increasing employee productivity and

satisfaction and focus on improving the quality of work life. Methods to employee
involvement interventions include self-directed work teams. High involvement work
practices are directed at increasing employee performance. Examples are quality
circles. The focus is on company-wide solutions. Technology has increased the
opportunities for employees to complete administrative tasks directly such as benefit
and personal data updates. Other areas of self-service include other online
applications such as recruitment and skills management.
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Effective employee relations programs include the five cornerstones described

above. They also include integrating employee relations concepts to all HR programs. For
instance, the recruitment and selection process should treat applicants with dignity and
respect. They consider a person’s rights to fair treatment and keep the incumbent
informed throughout the process. An online system is used to create objectivity.
Selection practices are equitable and legally defensible. The hiring process involves a
team effort with key consultation and counsels the incumbent to present themselves
effectively. The incumbent is informed of the company culture, which includes aspects
of discipline and employee involvement. The resulting new hire will fit the job and the
company.

EMPLOYEE RELATIONS PRACTICES

RPC 100: Researches, develops, and implements HR policies.

Organizations need policies to define the parameters within which the different
resources are used and transformed into the final product or service. Without any
policies, it would be difficult to ensure that the inputs used and the processes used will
result in a product or service of consistent quality. Policies are developed for a number
of reasons. They ensure a company conducts its business in line with legislation and
generally accepted accounting principles. Policies ensure consistency. Policies
communicate the company’s strategy and its climate and culture. For instance, a casual
dress policy communicates a less formal business atmosphere and petty cash policies
communicate that the company’s finances are being used appropriately and are safe.
Some policies are legally required such as health and safety policies. The key to policy
development is to determine the purpose of the policy and then the appropriate method
of implementing it. New policies are best developed using cross-functional teams that
can determine the impact and ripple effect of a policy throughout the organization. Just
as a new information system project will include user training, policy implementation
must include a training component as well. Policies also need to be reviewed on a
regular basis as new legislation or reporting requirements develop or as the business
changes with its environment. In essence the company’s policies describe the
company’s operating rule book.

The movement of human resources administration to human resources

management signifies that the HR function has moved from activities to processes.
These processes operationalize HR policies through programs and procedures. To
show the value of HR, it is necessary to make some key connections between HR
policies, programs and procedures to the bottom line of the organization. The key is
to define the organization’s goals and objectives then how HR policies, programs and
procedures contribute to the ability to achieve the overall strategic plan. Benchmarks
are standards to which something can be measured or assessed. It is important to set
benchmarks to assess the success or failure of a program.
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Cascio (2013) suggests that it is important to measure outcomes that matter

such as employee behaviours that make a difference or outcomes that are directly
relevant to the strategic objectives of a business. He proposes that HR needs a
measurement system that focuses on two dimensions – cost and value creation.
Elements of human capital metrics or measurements include evidence, explanation,
purpose and method. People create value by enhancing return through expected
performance; by reducing risk through consistent performance; and, by increasing
liquidity through increasing the company’s flexibility (Cascio, 2013).

Fitz-enz and Davison (2002) posit “A measurement system provides a frame of

reference that helps management carry out several important responsibilities, including
the following:
• Communicate performance expectations.
• See, feel, and understand outcomes.
• Compare to standards and/or benchmarks.
• Identify performance gaps
• Support resource allocation decisions.
• Recognize and reward performance” (pp. 17-18).

Fitz-enz and Davison also suggest that “HR’s vision for the new millennium must
be drawn from the following ideas:
1.) Human resources exist in an organization because it adds tangible
value by providing necessary services at a competitive cost.
2.) Human resources’ charter is to enhance the productivity and
effectiveness of the organization from the people side: the talent,
the human capital.
3.) Human resources should drive the organization’s management
in regard to people issues.
4.) Human resources is a professional function staffed by professionals
dedicated to the development of people in ways that are satisfying
to the individual and beneficial to the organization” (pp. 16-17).

The value chain follows the following steps: a process produces an outcome; the
outcome creates an impact; the impact is what is value-added. For instance, an
employee relations process is employee counseling that produces the following
outcomes: number of people counseled, time spent counseling and, problems solved.
The outcomes are measurable. Outcomes can be recorded and measured with
comparisons made with previous years’ measurements and/or with other like
organization’s measurements.

The above discussion focused on policies. The HR professional operationalizes

policies through programs, process and procedures. The key to seeing if policies are
effective, are by measuring outcomes. The outcomes that are most important to
undertake and measure are those that add value to the organization.
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Kirkpatrick (1959) offers an excellent model for evaluating training. He contends

that there are four levels of feedback that need to be measured. These four levels of
measurement include reaction, learning, behaviour and organizational results. The first
level – reaction, measures the participant’s perception of the training (Schwind, et al.
2013). The key is to implement the evaluation, document the results and use the data.

Saks and Haccoun (2010) describe a number of data collection designs for
evaluating training that can be applied to the evaluation of other HR initiatives. Designs
can be experimental, quasi experimental, and non-experimental. They distinguish each
design by its ability to show that the HR initiative caused a change and the ability to
prove that the HR initiative caused the change. Thus, a non-experimental design
provides neither causal information nor proof and an experimental design provides
both. The quasi-experimental design may provide causal information however, the
proof may be difficult to ascertain.

The following is a brief explanation of various HR initiative evaluation designs.

The post-only design is a non-experimental design where measurements are only
recorded at the end of an intervention or initiative. The single group pre-post design is a
non experimental design where all participants receive a pre-test before the initiative
and a post-test after the initiative. The time series design is a non-experimental design
that uses numerous pre and post measures at various times throughout and long
before and long after the initiative.

The following are quasi-experimental and experimental evaluation designs.

These designs have the distinction of comparing the HR initiative group to another
group. The comparison group can be a control group. The single-group design with a
control group includes a post-test of the initiative group and a non-initiative group. The
pre and post design with a control group includes a pre test and a post-test of the
initiative group and the control group. The time-series design with comparison group
uses numerous pre and post measures at various times throughout and long before
and long after the intervention of the initiative group and the control group. The internal
referencing strategy developed by Haccoun and Hamtiaux, assess pre and post
measures without the use of a comparison group.

The future of HR is focused on processes and operationalizing policies such that

they are developed and implemented for measurement to show value-add. There are
numerous measurement methods. The key is to begin recording and measuring to develop
benchmarks. Improvements can then be proven. The saying “garbage in equals garbage
out” can be applied to data collection and analysis for the purposes mentioned above. Just
as data follows strict guidelines for input into a computer system, the data input into the
value chain must be robust. If not, the resulting reports will be useless.
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EMPLOYEE RELATIONS PRACTICES

RPC 101: Provides advice on the application of HR policies, procedures

and practices.

Signatory rights are the rights of the individuals or representatives that have
agreed to a contract and are bound by the contract provisions. The HR professional
needs to understand the company’s rights and the union’s rights and needs to
understand arbitration jurisprudence. That is, the HR professional needs to understand
how to manage the contract and its respective clauses within the context of the legal
system that governs collective agreements. For instance, since the union and company
signatories are usually not readily available, another method to deal with arising daily
issues must be devised. A grievance is usually considered to a violation of the
collective agreement. Every collective agreement provides a grievance procedure. The
procedure is the steps that management can take to resolve an issue during the life of
an agreement. The advantage of having a grievance procedure is the ability to resolve
a dispute without a work stoppage. It also allows the worker to be heard and the union
to communicate issues to the attention of management. It has been argued that the
grievance procedure may give the union an opportunity to harass management.

(Schwind, et al. 2013) offer the following steps in a grievance

procedure:

i) The aggrieved employee discusses the complaint with the immediate

supervisor with or without union representation. If the union is satisfied
with management’s solution, the complaint may be dropped. Otherwise,
the complaint moves to the next step.
ii) The complaint is written up and formally presented by the shop steward to
the first-level supervisor. Response must be received within a specified
number of days as agreed to in the contract.
iii) The chief steward takes the complaint to the department superintendent. A
written response is required within a specified number of days as agreed to in
the contract.
iv) The complaint is submitted to the plant manager/chief administrative officer by
the union plan or grievance committee. A written response is usually required
within a specified number of days as agreed to in the contract.
v) If the previous step does not resolve the dispute, the dispute escalates to
an arbitrator or to an arbitration board. (p. 482)

The above procedure has numerous advantages. Since many levels of people
look at the problem, the problem should be resolved before it becomes an arbitration
dispute. The time limits prevent procrastination and festering of unresolved issues. Also,
the process of documentation can aid in considering future clauses in the next collective
agreement.
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(Schwind, et al. 2013) suggest that grievances be resolved as quickly as

possible. This sends the message that the employee’s needs are important and helps
build positive labour relations. They recommend that the facts be carefully investigated
and that the grievance be examined based on its value. They advise that all
grievances should be recorded and analyzed for commonalities. That is, are they all
from the same department or supervisor? Is there an underlying safety issue or
procedural issue that is coming to light through grievances? Solutions need to be
explained to those affected. Also, it is recommended that the solution is recorded, and
the subsequent dissemination of information be documented with appropriate feedback
recorded. This information will work into effective communications procedures.

The inclusion of a consultation provision in a collective agreement

encourages the employer and the union to talk to each other about what is going on
in the workplace. The more the two “sides” talk, the likelihood of suspicion and
animosity should be reduced.

If the grievance procedure does not resolve the issue, arbitration is the next step.
However, not all disputes are arbitrable. Only grievances, as recognized by the
collective agreement, may be processed through the grievance procedure. The last step
of the grievance procedure is compulsory arbitration. To do so, the party that is not
satisfied with the outcome of the grievance procedure must give notice to the other
party within a specified period of time. The notice must include an appointee to the
arbitration board. The other party responds by appointing their arbitrator and the two
arbitrators then select a third or the Minister of Labour may be charged to do so. The
grievance may also be arbitrated by a single arbitrator agreed to by both parties.

CONFLICT RESOLUTION

RPC 102: Analyzes and provides advice on employment rights and

responsibilities.

Employees have rights. Employees that are members of unions have rights as
described in their collective agreement. Employees that have written contracts have the
rights described in the contract. There are legislated rights as well. Employees have a right
to privacy. Employers record personal information about employees for a number of
purposes including employment and compensation and benefits purposes. The employee
has the right to view personal employment records and, the employer has the obligation to
keep employee records safe and confidential. Electronic mail is not private or confidential.
The workplace is not private. However, it is best for the employer to notify employees of
any surveillance activities. Employees have a right to fair treatment and to fair employment.
Thus, employees should not be discriminated against. Consult the Charter of Rights and
Freedoms. Bona fide occupational requirements should be properly documented to give
them credence. Employment Standards should be followed and regarded as minimum
requirements and pay equity legislation should be followed. When a business closes or
when a company restructures, employees have the right to be informed as much in
advance as possible to minimize the effect on their
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lives. Outplacement services can help. Businesses experiencing massive layoffs

need to consult the respective provincial and federal requirements for regulations that
must be followed.

“Employee involvement (EI) consists of a variety of systematic methods that

empower employees to participate in the decisions that affect them and their
relationship with the organization” ((Schwind, et al. 2013, p. 414). Employee
productivity and satisfaction increase when employee involvement increases. Methods
to increase employee involvement include self-directed work teams, quality circles, and
employee self-service.

Thus effective employee relations involve developing policies and procedures

that treat employees with dignity. It is imperative that employees feel that they are being
treated fairly and that rules are applied fairly. Creating a culture of dignity and respect
will encourage employees to participate in making their workplace satisfying and
productive.

CONFLICT RESOLUTION

RPC 103: Effectively handles disagreements and conflicts.

Lussier (2013) suggests “communications problems or conflicts arise for three

primary reasons: 1.) we fail to make our expectations known to other parties; 2.) we
fail to find out the expectations of other parties; and, 3.) we assume that the other
parties have the same expectations that we have” (p. 179). Langton, Robbins and
Judge (2013) suggest there is functional conflict that supports the goals and improves
the performance of the group, and dysfunctional conflict that hinders group
performance. They also write there is “cognitive conflict… that is task oriented and
related to differences in perspective [and] affective conflict… that is emotional and
aimed at a person rather than an issue” (p. 325). They also suggest there are three
sources of conflict – communication, structure and personal variables. Lussier (2013)
offers the following conflict management styles for consideration:
1.) The forcing conflict style user attempts to resolve the conflict by
using aggressive behaviour.
2.) The avoiding conflict style user attempts to possibly ignore the conflict rather
than resolve it.
3.) The accommodating conflict style user attempts to resolve the conflicts by
possibly giving into the other party.
4.) The compromising conflict style user attempts to resolve the conflict through
assertive give and take concessions.
5.) The collaborating conflict style user assertively attempts to resolve the conflict
with the best solution agreeable to all parties. (pp. 181-184).
 15

Slaikeu and Hasson (2002) state, “Conflict is an integral dynamic in the

growth and development of living organisms and groups conflict occurs when the
ideas, interests, or behavior of two or more individuals or groups clash” (p. 5).
Conflict is associated with employees, customers and partners and shareholders.
Slaikeu & Hasson list the following root causes of conflict:
1.) denial
2.) skill deficits
3.) lack of information
4.) conflicting interests or values
5.) psychopathology
6.) personality style
7.) scarce resources
8.) organizational deficiencies
9.) selfishness
10.) evil intent (pp. 1-8).

Slaikeu and Hasson posit, “An effective conflict management system is one that
allows early and efficient resolution, with minimal expenditure of time and other
resources, while honoring and respecting the integrity and rights of all parties” (p. 9).
They offer four principles to resolve conflict: 1.) acknowledge four ways to resolve
conflict; 2.) create options for prevention and early intervention; 3.) build collaborative
strength through checkpoints; 4.) use mediation model to build consensus among
decision makers and users (p. 17). Four ways to resolve conflict are:

1.) avoidance – no action is taken;

2.) collaboration – this can be through an individual initiative, negotiation by
the parties or mediation by a third party;
3.) using a higher authority – referral up the line of supervision or chain of
command with internal appeals and formal litigation or litigation through
the courts;
4.) a unilateral power play – this method is characterized by physical violence,
strikes and behind the scenes maneuvering (Slaikeu & Hasson, 2002, p. 22).

The different types of conflict in which HR professionals may participate include

resolving personality conflicts, resolving intercultural conflicts and, third-party
resolution. All HR professionals will experience negotiation – “a process in which two or
more parties exchange goods or services and try to agree upon the exchange rate for
them” (Langton, et al., 2013, p. 335). Union negotiation is described in detail in RPC
112.
 16

Contemporary issues in negotiating include gender differences and cultural

differences (Langton, et al., 2013). They report that women are more concerned with
feelings and perception as they tend to view bargaining as a part of the overall
relationship. Women use dialogue to reach understanding and tend to want all parties to
be empowered. In contrast, men focus on the matter at hand and see the bargaining
session as a separate event. Men tend to use dialogue to persuade and use power.
Langton et al. (2013) also report, “negotiating styles clearly do vary across national
cultures.” For example, the French in France like conflict; the Chinese in China see
negotiations as having no end; the Japanese in Japan develop relationships; and, the
Americans in the United States are impatient (p.344).

To summarize, the HR professional must recognize that conflict is an integral

part of any organization and that not all conflict is bad. If everyone agreed with
everything, ideas would not be challenged and groupthink can result. The key is to
recognize what can cause conflict and develop techniques to deal with the conflict.
Developing conflict resolution methods and training employees on these methods
can result in diverse ideas being incorporated into the company’s products, services
and processes.

CONFLICT RESOLUTION

RPC 105: Recommends and/or initiates actions in response to known or

suspected incidents of misconduct.

Employee discipline programs are important communication devices because

they not only communicate policies and procedures but expected norms. Regardless of
the circumstances, discipline needs to be positive. Discipline can be corrective to get an
employee back on the right track. Progressive discipline is “the use of stronger and
stronger penalties for repeated offences” (Schwind, et al. 2013, p. 402). Progressive
discipline usually follows the following process:

1. Verbal reprimand by supervisor

2. Written reprimand, with a record on file
3. One to three day suspension from work
4. Suspension for one week or longer
5. Discharge for cause. (Schwind, et al. 2013, p. 403)

It is important to show due process. That is, it is important to have a policy that is
followed for all employees and that employees are part of the process to make amends.
The verbal warning is a reminder and the written warning lets the employee know that their
behaviour will not be tolerated. The written warning lets the employee know that their
problem behaviour will not be condoned. One might argue that a suspension is a reward
for poor behaviour. The suspension is meant to give the employee time to think of their
conduct and to develop a plan of action for change. It gives the employee time to decide
whether to continue to be a member of the organization.
 17

A distinction must be made between union and non-union workplaces with

respect to progressive discipline. The employer in a unionized workplace is allowed to
impose a suspension without pay. However, the common law does not provide for non-
union employers to suspend employees without pay - such action has been held to be
a constructive dismissal. On this point refer to the case of Carscallen v. FRI Corp. The
trial decision is at
http://www.canlii.org/eliisa/highlight.do?text=Carscallen&language=en&searchTitle=Ont
ario&path=/en/on/onsc/doc/2005/2005canlii20815/2005canlii20815.html. Thus, an
employer can only suspend a non- union employee without pay if the misconduct is
severe enough to be just cause or there is an express or implied term in the
employment contract allowing for a suspension to be imposed. It is recommended that
the distinction between union and non-union employers be incorporated. The key to a
progressive discipline process is to try to maintain the employment relationship.

“Cause for dismissal under common law includes any act by the employee that
might have serious negative effects on the operation or reputation of the organization”
(Schwind, et al. 2013, p. 404). This is known as just cause. Fraud, theft, dishonesty
and willful disobedience are reasons for employees to be dismissed for just cause. It is
important to develop and follow appropriate procedures to avoid wrongful dismissal
charges. Wrongful dismissal is the termination of an employee without just cause or
without reasonable notice or compensation in lieu of notice (Schwind, et al. 2013).It
should be emphasized that inappropriate behaviour should not be condoned at the
outset. Employers condone inappropriate behaviour by not following progressive
discipline procedures, by giving employees too many chances or by ignoring
behaviour. By condoning inappropriate behaviour, employers open the door for
wrongful dismissal charges.

Constructive dismissal refers to major changes in the terms of the employment

contract that result in an employee resigning (Schwind, et al. 2013). Major changes
include forced transfers, changes to the job function, demotions, and forced
resignations and, salary and benefits changes without reasonable notice. Minimal
reasonable notice is outlined in provincial and federal employment standards. It is wise
to overcompensate the reasonable notice period or compensation in lieu especially if
the employee is older, has tenure, or was in management, and, if jobs are few.

The key to dismissal is treating the employee with respect and dignity. The
dismissal should be a win-win situation. The company wins by alleviating itself of a
bad employee and the employee wins by gaining the opportunity to work somewhere
else where the employee’s unique attributes may fit better.
 18

LABOUR RELATIONS AND COLLECTIVE BARGAINING

RPC 112: Collects and presents information required for decision-

making in the bargaining process.

Once a union is certified, labour relations statutes require that the union and the
employer bargain in good faith and make a reasonable effort to negotiate a collective
agreement. The union and the employer consider what they wish to see in a collective
agreement. The two sides meet to discuss their demands and once the collective
agreement is accepted, the contract is administered for the duration of the agreement.
This simple description does not consider the work involved by an HR professional to
present the best negotiation possible. This section will focus on the activities
necessary to affect a good collective agreement.

Suffield (2008) recognizes a number of bargaining structures – one employer,

one union and one location or one employer, one union and many locations. Having
many locations especially across the country complicates the negotiation process since
each jurisdiction has its provincial labour relations board with differing requirements.
The bargaining structure can be centralized – many locations, employers and unions, or
decentralized – one employer, union and location. Thus, to prepare for the process, the
HR professional needs to consider the scope of the negotiation and familiarize him or
herself with the different jurisdictions and respective requirements. Suffield suggests
that the HR professional should also consider Walton and McKersie’s (1991) sub-
processes of bargaining such as: 1. how limited resources will be divided -distributive
bargaining; 2. how the parties can achieve joint gains - integrative bargaining; 3. the
relationship between the union and the employer - attitudinal structuring; and, 4. issues
that must be dealt with within the employer or union, such as demands, priorities and
tactics - intra-organizational bargaining (p.209).

The negotiation process begins with a notice to bargain. At this point, there is a
statutory freeze on the terms and conditions of employment. If it is a renegotiation of an
existing agreement, either side can present the renewal of the existing agreement with
or without modifications or to make a new agreement. Each side creates a bargaining
team. The employer bargaining team should consist of people who have the ability to
command respect of the union negotiating team, understand the negotiating process,
have special knowledge or expertise have an acceptable personality and have line
responsibility. The attitude of the company negotiating team should be one to limit
losses to the firm and obtain a reasonable settlement. The authority of the company
bargaining team should be limited as the team could get carried away. The president or
company board chair can act as a check on the process. To effectively prepare for the
negotiation, the company negotiating team should have good knowledge of the existing
collective agreement; have information about wage rates, benefits, etc. in similar firms
in the industry and an agreement of the goals of the negotiations and the initial
bargaining position (Kehoe and Archer, 2005).
 19

Company demands can be prepared based on problems that have arisen under
the old agreement. Arbitration decisions and grievances documentation should be
reviewed. Changes to the existing agreement should be solicited from managers and
supervisors and issues with the current agreement should have been recorded
throughout the term of the agreement. The company’s overall strategy needs to be
considered when setting goals and objectives for wages, hours of work, benefits,
productivity, etc. Information necessary to make good decisions include: the terms of
all previous collective agreements, national and industry wage trends, union member
composition, the type of work, seniority and information about the employer’s financial
health. Information can be obtained from Statistics Canada, government wage surveys
and Ministry of Labour settlement reports, private labour data bulletins, employer
associations such as chambers of commerce, HRPA, the company’s financial
statements and future industry and economic reports and trends and local or regional
government economic reports. The company should separate its demands into
monetary and non-monetary issues because it is often easier to reach an agreement
on non-monetary issues such as wording, administration and procedural matters.
Agreements early in the process could create an amicable environment to set the stage
for the rest of the negotiation (Kehoe and Archer, 2005).

Suffield (2008) suggests a number of bargaining tactics to use in distributive

bargaining where limited resources are divided creating a win/loss situation based on
who gets what. Each side should have a resistance point or bottom line, a target point
or ideal result and the initial position or where either party begins their negotiation.
Union and company power should be considered as this information affects the
willingness to budge from the initial position. Suffield offers the following factors that
affect the employer’s bargaining power: inventory levels, interdependence of bargaining
units, industry competition, the timing of negotiations, ability to continue operations,
bargaining structure and public opinion (p. 223). Suffield offers the following factors that
affect the union’s bargaining power: support of bargaining union members, size of strike
fund, timing of the strike, effectiveness of a strike, effect of picketing, labour cost/total
cost, and elasticity of demand for the product or service and public opinion (p. 224).

The HR professional should consider what could create bargaining power for
either party and leverage it accordingly. For instance, if the HR professional knows that
the strike fund is low and that generally the workers are satisfied with their existing
contract and that a strike will happen during winter months and during seasonally low
demand for the company’s product or service, then the HR professional may advise a
more adversarial strategy for reaching the company’s target point. It is prudent to use all
of the information available to predict the union’s target point and resistance point to
better structure the negotiations. The key to effective negotiations is having the data
and information available to understand the effects of any changes to existing contract
clauses. This information can be fed into decision modeling software to facilitate “what
if” analyses of each demand to enable better decisions.
 20

If the parties are unable to reach an agreement, conciliation may be required –

depending on the jurisdiction, before the union has the right to strike or the company
has the right to lock out its employees. Conciliation is the use of an outside party to help
the union and management come to a mutually acceptable agreement. Mediation is
similar to conciliation in that it is a third party intervention; however, mediation tends to
happen on the eve of or during a strike (Kehoe and Archer, 2005). It should be noted
that if an agreement is not reached, a strike or lockout could be called and eventually
the process may be turned over to an arbitrator or arbitration board. There is a
distinction between the public and private sector that is, arbitration is unusual in the
private sector.

If all goes well, the collective agreement is accepted by the two parties and must
then be ratified by the union members. A ratification vote to approve or reject the
proposed settlement by the employees cements the deal. If all does not go well, a strike
or lockout could be called and the negotiation process may eventually be turned over to
an arbitrator or arbitration board depending on the jurisdiction.

LABOUR RELATIONS AND COLLECTIVE BARGAINING

RPC 115: Provides advice on the interpretation of the collective

agreement.

Interpretation of the collective agreement includes the grievance procedure

and rights arbitration as well as interpreting the discipline and seniority clauses and
management rights and human rights issues. Grievance procedures and rights
arbitration are covered in other sections.

Management usually has the right to make reasonable rules and regulations and
the right to take disciplinary action if they are broken. Grievances related to discipline
and discharges are common. However, an arbitrator can reduce the penalty imposed
unless a specific penalty is provided in the collective agreement. Suffield (2008) offers
the following reasons for disciplinary action: failure to attend, leaving work without
permission, lateness, theft, falsification of employment records, misconduct,
incompetence, insubordination, off-duty behaviour that affects the employer’s business,
breach of company rules (p. 249). The progressive discipline process described earlier
should be used in a unionized environment as well – verbal warnings, written warnings,
suspensions, demotions and dismissal. Suffield warns that employers cannot reduce
seniority or impose discipline twice for the same misconduct or impose fines unless the
provision is in the collective agreement. If the process escalates to rights arbitration, the
onus is on the employer to prove the employee’s guilt. If the employer has imposed
disciplinary action that is seen as too severe by the arbitrator, the arbitrator can overturn
it. Suffield describes a last chance agreements where an employee guilty of misconduct
is able to be reinstated on a conditional basis. If the employee offends again and is
terminated, arbitration will not be an option.
 21

Seniority clauses in collective agreements provide the preference for one

employee over another for various purposes based on the person’s length of service
with the company. Seniority clauses provide security and rewards for loyalty and is
accepted by many as equitable and objective. Seniority may be used to decide the
following: promotions, layoffs, recalls, transfers, work assignments, shift preferences,
allocations of days off and vacation times. Although management would prefer to use
merit or ability, many unions prefer seniority as reasoning for preferential treatment.
Many collective agreements may include seniority/ability provisions to ensure that a
union member is not placed solely on seniority. However, employers are cautioned to
use unbiased and objective techniques in assessing ability. An arbitrator will scrutinize
the employers’ methods to ensure that the employee is being treated fairly. A method
to ensure that employees are skilled and ready for other assignments as seniority may
dictate, is to apply training and development principles and to consider succession
management for unionized employees.

Management rights include the ability to make operational and business

decisions; they do not include the ability to violate common law or human rights or
employment standards legislation. Suffield (2008) warns of the doctrine of estoppel
where one party makes a deal with the other party either verbally or written, that is
not in the collective agreement and then reneges. The party that came up with the
deal cannot use the collective agreement as reason for reneging.

Suffield (2008) posits that the administration of the collective agreement has
human rights implications especially in the areas of discipline, job posting and selection
for jobs. Just as a non-unionized employer must not discriminate and must
accommodate employees, so must a unionized employer regardless of inclusion in the
collective agreement. Discriminatory actions must be supported by documented bona
fide occupational requirements – BFOR. Suffield warns that balancing the duty to
accommodate and seniority provisions in a collective agreement can create conflict. The
duty to accommodate overrides the seniority provisions in the collective agreement.
 22

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