Labor relations

Labour relations in practice is a subarea within human resource management, and the main components of it include collective bargaining, application and oversight of collective agreement obligations, and dispute resolution. Academically, employee relations, another related term, is considered a subarea of labour relations, and both taxonomically fall under the broader field of industrial relations. Labour relations is defined as "for or with whom one works and under what rules. These rules (implicit or explicit, written or unwritten) determine the type of work, type and amount of remuneration, working hours, degrees of physical and psychological strain, as well as the degree of freedom and autonomy associated with the work."

Labour relations is also known as labour studies in liberal arts and is a multidisciplinary field that draws from economics, sociology, history, law, and political science. Scholars in this field examine labour unions and labour movements. In an interdisciplinary context, it is considered a subfield of labour history that explores human relationships with work in the broadest sense and how these relationships intersect with issues of social inequality. In contemporary contexts, labour relations refers to the study and management of unionized employment settings, which include the employer, management, union(s), and the unionized employees.

Conflicts related to labour relations are addressed through a hierarchy of legal forums, depending on the nature and severity of the issue. In unionized workplaces, the grievance process under the collective agreement serves as the primary mechanism for resolving disputes. When a matter involves discrimination based on a protected characteristic, such as race, sex, or disability, recourse may be available through a human rights tribunal. For claims that require extensive evidence gathering or seek substantial monetary compensation, the civil courts offer a broader legal remedy. However, in cases involving immediate danger to health or safety, the most appropriate forum is occupational health and safety enforcement, where an inspector can intervene promptly to assess and mitigate the risk.

Labour relations in North America

Labour relations in United States

Labour relations in the United States are governed by a combination of federal and state legislation, depending on the sector and type of employment. For most private sector workers involved in interstate commerce, the National Labor Relations Act provides the foundational framework for collective bargaining, union representation, and the regulation of unfair labor practices. This legislation is enforced by the National Labor Relations Board, which applies federal standards uniformly across all states. An employer in the United States is not obligated by law to formally bargain with employees unless they are represented by a union certified by the National Labor Relations Board, which serves as the central legal authority for upholding labor rights in the United States. Workers in the railroad and airline industries fall under the Railway Labor Act, which emphasizes mediation and arbitration to prevent service disruptions. Public sector labour relations are governed differently. At the federal level, the Civil Service Reform Act of 1978 regulates labour-management relations for federal employees, supporting collective bargaining while addressing the operational needs of government. State and local public sector employees, including teachers, police officers, and municipal workers, are covered by various state-specific laws that vary widely in terms of union rights and bargaining procedures. Some states also have " right-to-work" laws that limit union security agreements. Despite these legal structures, coverage is limited; in 2008, only 13.7% of U.S. workers in both public and private sectors were covered by formal labour relations laws. The Labor and Employment Relations Association is an important professional association supporting the field.

Labour relations in Canada

Labour relations in Canada are shaped by a rich history of union activism, collective struggle, and progressive legal reform. Grounded in pivotal events like the 1872 Nine-Hour Movement, the 1919 Winnipeg General Strike, the 1945 Ford Windsor Strike, and the 1983 Solidarity Crisis, Canadian labour movements have played a critical role in securing many of the rights now embedded in the workplace. These include minimum wage standards, overtime pay, maternity and parental leave, and protections against discrimination, harassment, and health and safety hazards. The legacy of these social action movements has transformed Canada's labour landscape by fostering a sustained commitment to worker solidarity and advancing the pursuit of labour justice within an egalitarian and democratic society.

Labour and employment protections in Canada operate under both federal and provincial legislation, depending on the employer’s jurisdiction. Federally regulated sectors such as banking, telecommunications, and interprovincial transportation are governed by the Canada Labour Code, which sets standards for collective bargaining, employment conditions, occupational health and safety, and dispute resolution. The Canada Industrial Relations Board manages union certifications, unfair labour practices, and workplace disputes, supported by Employment and Social Development Canada. Human rights protections at the federal level come from two distinct sources: the Canadian Human Rights Act, which prohibits discrimination in employment and services within federally regulated entities, and the Canadian Charter of Rights and Freedoms, which protects constitutional rights from government action, such as equality and freedom of association. The Canadian Human Rights Commission investigates complaints, while the Canadian Human Rights Tribunal has statutory authority to make legally binding decisions. In provincially regulated sectors such as private companies, municipalities, schools, and hospitals, each province applies its own legal framework. In Ontario, the Labour Relations Act, 1995 governs union-management relations, while the Employment Standards Act sets minimum conditions such as wages, working hours, vacation, leave entitlements, and termination rules. The Ontario Labour Relations Board handles union-related disputes, while the Ontario Human Rights Code is enforced by the Human Rights Tribunal of Ontario with legally binding authority, in contrast to other provinces that rely solely on human rights commissions with limited investigatory powers. Workplace health and safety in Ontario is regulated by the Occupational Health and Safety Act, enforced by the Ministry of Labour, Immigration, Training and Skills Development. Compensation for workplace injuries is provided under the Workplace Safety and Insurance Act, 1997, and administered by the Workplace Safety and Insurance Board. The Pay Equity Act further protects against wage discrimination by ensuring equal pay for work of equal value across all job classes.

Similarities with the United States

Labour relations in Canada and the United States share many foundational similarities. Both systems are shaped by comparable economic structures, collective bargaining traditions, and legal frameworks governing employer-employee relationships. Historically, until the 1970s, a large number of Canadian unions and union members were affiliated with U.S.-based industrial and craft unions, reflecting strong cross-border union ties. American influence also persists through the presence of thousands of U.S.-owned branch plants and subsidiaries in Canada. A 1959 international study described Canadian and American labour relations as essentially “a single system,” owing to their shared industrial relations practices. Both countries have experienced a higher frequency of strikes, including more intense and prolonged disputes, compared to other industrialized nations. Factors such as decentralized union structures, widespread employer resistance to unionization, and the absence of dominant labour parties contributed to this similarity. Moreover, both Canada and the United States saw periods of mass unionization and rising public-sector union strength, especially from the 1960s to the 1980s. The two nations have also grappled with similar challenges, such as economic instability, technological disruption, and shifting employer strategies, which have influenced bargaining power and union density in comparable ways over time.

Unions

Unions are a significant aspect of labor relations and provide job security to workers and ensure all employees are well compensated for labor.Alan Gladstone, Russell Landsbury, Jack Stieber, Tiziano Treu, & Manfred Weiss. (2019). ''Current Issues in Labour Relations : An International Perspective: Vol. Reprint 2019''. De Gruyter Union negotiators offer high-level pay in exchange for workers to tolerate repetitive job design or unsafe working conditions. Unions are critical in providing security and assurance to employees that their job position will remain unaffected and always compensated for their work. Some of the unions' main objectives are; job security, suitable compensation for labor, job design, retraining and reskilling, and health and safety. No matter how strong the union is, there is often a mismatch between critical company decision-making and the union representatives' demands. However, to provide proper job security and suitable compensation for employees, agreements must be made between union representatives and employers.

Unions have a positive impact on benefits and total compensation in Canada when compared with non-unionized work environments. Results from the Canadian general Social Survey (GSS) in 1998 demonstrate that union work environments increase total compensation by 12.4 percent, and 10.4 percent by wages. In terms of total compensation, the empirical data suggests that unions have achieved larger fringe benefits for their members in comparison to non-union. As for wages, Union-non-union differentials were found to vary across the Canadian labour market. Previous studies on unions' impact on Canadian wages through the use of the GSS indicated that the union-non-union differential was 18 percent. However, a more recent study indicates that the differential is 10.4%. This decline of differential indicates an increase of competitive pressure.

Perspectives on labour relations

These are interpretive lenses that help explain why different stakeholders behave differently in workplace disputes or negotiations within an employment relationship.

Unitary perspective

In a unitary perspective there is an emphasis on employees sharing common objectives and being harmonious with one another. This perspective views strikes as pathological. Labour relations in which trade unions are involved are viewed negatively and labelled unnecessary. Within this perspective there are alternative positions held upon matters such as trade unions. Some view labour relations with unions as an extension to the relationship that exists between managers and employees in regards to communications.

Pluralism perspective

In the pluralistic perspective, it is accepted that conflict is constructive and will arise between employees and organizations due to differing opinions. In some situations, conflicts that occur within a labour relationship are resolved by trade unions. Managers may view trade unions as an inconvenience, but they still respect their authority.

Marxist perspective

Also called the radical perspective, this view reveals the exploitative nature of capitalist society through the conflict model. It recognizes inequalities in power within the employment relationship and in society as a whole. Consequently, conflict and strikes are seen as natural outcomes, and legislative victories are often viewed as temporary changes that will eventually be rendered ineffective under capitalism.

Collective bargaining

Collective bargaining is a vital part of labour relations. It is essential to labor relations because it sets the tone for a fair and equal workplace which forms the basis for cordial labor relations. Collective Bargaining is used to ensure all workers are represented equally and fairly. When collective bargaining is exercised within organizations, it is to address working conditions, terms of employment, and work relations. It can even include 'productivity bargaining' agreements between employers and workers in which changes to working practices are implemented in return for higher pay or job security. Such negotiations take place between the employer and the union with the intent of coming to a collective agreement. Negotiations can end in either a strike by workers, a lockout by employers, a boycott, or the primary goal, an agreement. Although collective bargaining can be seen as simple social discussion, it is more substantive than that. It is “a fundamental and principle right at work.” Collective bargaining also provides a sense of equality and equity, and it gives the worker the ability to partake in building a fair and legal work environment.

Equality in collective bargaining

Collective bargaining can be traced back to the industrial revolution in the 18th-19th century. During this time, many jobs were lost to the ability of machines taking over. Because of this, people started to form organizations to protect their jobs and income. Thus, bringing about unions and, in turn, collective bargaining. Collective bargaining is a right for workers and can bring about many benefits, including limiting biases and equity gaps. Thus, ensuring all workplaces are fair. Collective Bargaining has been proven to lower the wage gap and establish more equality in workers and wages. Internationally, countries that use collective bargaining have lower wage inequality such as Denmark, Finland, France, the Netherlands and Sweden, and countries who use collective bargaining less, have higher wage inequality, like Hungary and Poland. Collective bargaining has also played a role in shrinking the gender pay gap. Although collective bargaining has helped the gender pay gap, due to its role in directly affecting wages, there is still unfair equity in benefits and bonuses given out. Developed countries like the UK who practice collective bargaining still have a sizeable pay gap. Developing countries like specific places in Africa, where they do not rely on collective bargaining, have a gender pay gap as well. This shows that although collective bargaining may help, it is not the be-all end all to the problem.

International Labor Organization

An integral part of collective bargaining is the ILO (International Labour Organization). The ILO contains International Labour Standards that ensure equity. "The ILO supports governments to fulfil their international obligation to respect, to promote, and to realize the effective recognition of the right to collective bargaining, and to take measures to encourage the full development of machinery for voluntary negotiations." Technical Assistance (provided by the ILO) including, advisory services and technical cooperation’s, help employers and governments exercise their workers freedom and association and right to collective bargaining. The ILO states, “all member states accept an obligation to respect, promote and realize the effective recognition of the right to collective bargaining.” Therefore the ILO is international so that not only the westernized countries but developing countries as well can strive to get equal and fair treatments for their workers.

Collective bargaining in the United States

To maintain equal and fair treatment for both employees and employers the 74th United States Congress created the National Labor Relation Act ("NLRA") in 1935. They use a federal or national act to create a basic standard for everyone across America. The lack of a state level law makes understanding collective bargaining laws easier. However, a downside is there is a lack of specification by centralizing labor relation laws means that a state is unable to amend the laws to better suit its people. In Canada, each province is given legal jurisdiction over their labor relation laws.

Challenges of collective bargaining

During collective bargaining, unions and employers both have ways to shut down the organization if the bargaining is not resulting in the demands each party wants. A union has the option to go on strike and the organization or employer can use a lockout. Strike authorizations votes are common to influence or threaten their employer in becoming more understanding. Whereas lockouts have the same effect on unions. Both parties have extreme ways to influence and can result in costly shutdowns for unions or employer. The Pullman Strike was a major strike in America that cost the Pullman Company millions lost revenue however, over a million dollars was also lost in wages for workers on strike.

See also

* International Labour Organization
* Labour laws

References

External links

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