Industrial Relations Chapter 4

A high commitment HR strategy

A high commitment HR strategy involves the adoption of better technology and requires investment in training and development of human resources.

A labour relations strategy

A labour relations strategy is how an employer deals with the unionization of its employees.

A low commitment HR strategy

A low commitment HR strategy involves traditional production methods, and a low emphasis on development of workforce skills.

Competitive strategy

Competitive strategy refers to the basis on which a firm competes.

Concession bargaining

Concession bargaining is negotiation over employer demands for reductions in wages and benefits.

Cost leadership

Cost leadership is a competitive strategy based on having the lowest price.

Differentiation

Differentiation is a competitive strategy based on having a distinctive or unique product.

Experience with Unionization

Experience with Unionization If a firm has several operations, some which have been unionized, its experience with collective bargaining may affect the employer's approach to unions at locations that are not yet unionized. If the experience has been negative, perhaps because of a strike, the employer would more likely oppose unionization at its non-union locations.

Legal Environment

Legal Environment The legal environment can affect the employer's ability to oppose unionization and the approach taken by the employer. Generally the legal environment in Canada makes it more difficult for employers to oppose unionization here than in the United States. In Canada, some jurisdictions allow a union to obtain the right to represent employees on the basis of signed membership cards without a vote of employees.

Management Values or Ideology

Management Values or Ideology The values or outlook of key managers toward unions could affect the employer's labour relations strategy. If managers oppose unions on a personal level, they may be more inclined to oppose or try to eliminate the union even if the rational choice would be to pursue collaboration. The values and beliefs of the original owner of a company could affect the firm's approach to unions.

Types of Employees

Types of Employees Certain types of employees, such as those who are part-time, younger, or have a higher turnover rate, may make it easier for employers to be more unionhostile. Younger employees may be less familiar with unionization and their rights, and more likely to quit in the face of employer opposition. In contrast, employees who are highly skilled and full-time have more invested in the workplace, may be less likely to quit, and more likely to support the union in a confrontation.

Union Philosophy or Policy

Union Philosophy or Policy The approach or philosophy of the union the employer is dealing with may affect the choices and actions available to it. An employer might wish to pursue a more cooperative approach; however, the success of this will depend on the union's reaction. Some unions have been more receptive to employer efforts to make changes and include the union in the change process.

Union Power and Ability to Oppose Employer

Union Power and Ability to Oppose Employer If a firm is already unionized, the union's strength or power may influence how the employer approaches it. If an employer is considering a strategy that involves confronting or challenging the union, it may be more likely to adopt this strategy if the union is in a weaker position. It is reasonable to assume that an employer with only one unionized location among several would oppose the union because it is vulnerable. In the banking industry, if only one branch is unionized, it would be relatively easy for the employer to take a hard-line approach.

Union acceptance

Union acceptance is a strategy in which the employer remains neutral in an organizing attempt, and if the attempt is successful tries to negotiate the best deal with the union.

Union avoidance

Union avoidance is a strategy aimed at preventing unionization using legal means to convince employees they do not need a union.

Union opposition

Union opposition is an employer strategy of attempting to remain union-free.

Union or Non-union Status of Competitors

Union or Non-union Status of Competitors A firm that competes in an industry that is heavily unionized may be less likely to oppose unionization than a firm whose competitors are all non-union. If the firm were the only unionized competitor, it would have to be concerned about its compensation costs exceeding that of its competitors.

Union removal

Union removal is a strategy in which the employer attempts to rid itself of any unions.

Union resistance

Union resistance is a strategy in which the employer attempts to limit the further spread of unionization in the organization.