INDUSTRIAL RELATIONS IN CANADA INDUSTRIAL RELATIONS IN CANADA Second Edition Fiona A. E. McQuarrie...

INDUSTRIAL RELATIONSINDUSTRIAL RELATIONSIN CANADAIN CANADA

Second Edition

Fiona A. E. McQuarrieFiona A. E. McQuarriePrepared byPrepared by

Kenda Murphy, Saint Mary’s UniversityKenda Murphy, Saint Mary’s University

Chapter 3Chapter 3

History of the Canadian Labour History of the Canadian Labour MovementMovement

• At the end of this chapter, you should be able to:At the end of this chapter, you should be able to: Describe the geographic, cultural, economic, and Describe the geographic, cultural, economic, and

political factors that are relevant to Canadapolitical factors that are relevant to Canada Identify the major events in Canadian labour Identify the major events in Canadian labour

historyhistory Understand the role of craft and industrial Understand the role of craft and industrial

unionism in shaping Canadian union structureunionism in shaping Canadian union structure Discuss how American unions have influenced Discuss how American unions have influenced

Canadian unionsCanadian unions Identify some of the regional differences in Identify some of the regional differences in

Canadian labour historyCanadian labour history

Chapter 3 ObjectivesChapter 3 Objectives

• Canadian characteristics that have shaped Canadian characteristics that have shaped labour history:labour history: Physical geographyPhysical geography Cultural mixCultural mix Economic systemEconomic system Political structurePolitical structure

History of the Canadian Labour History of the Canadian Labour MovementMovement

• The The period of local unionismperiod of local unionism Earliest attempts to organize followed the Earliest attempts to organize followed the

craft unioncraft union model which was geographic model which was geographic centered and involved small groups of centered and involved small groups of workers workers

This period sought to protect wages for This period sought to protect wages for skilled workers thus controlling their marketsskilled workers thus controlling their markets

Canada's role as exporter increased the Canada's role as exporter increased the demand for quality trades-people’s workdemand for quality trades-people’s work

Craft unionism deterred widespread unionism Craft unionism deterred widespread unionism because it did not encourage non skilled because it did not encourage non skilled workers or non trade organizationsworkers or non trade organizations

Early Canadian Unionism:Early Canadian Unionism: the 1800s the 1800s

• Informal worker’s groups formed as early as Informal worker’s groups formed as early as 18271827

• A philosophical change occurred so that unions A philosophical change occurred so that unions began to work on common goals – Nine-Hour began to work on common goals – Nine-Hour Movement Movement

• There was virtually no law in Canada governing There was virtually no law in Canada governing industrial relations issues; British government industrial relations issues; British government used criminal law to try to curtail union growthused criminal law to try to curtail union growth

• In 1871, Britain passed the In 1871, Britain passed the Trades Union ActTrades Union Act; a ; a Canadian version was later passedCanadian version was later passed


• The Catholic Church in Quebec was accused of The Catholic Church in Quebec was accused of interfering with union organizing and interfering with union organizing and membership until the Bishops intervened and membership until the Bishops intervened and smoothed the waysmoothed the way

• Knights of LaborKnights of Labor entered Canada in 1881 – first entered Canada in 1881 – first international industrial union to do sointernational industrial union to do so

• Trades and Labour Congress (TLC)Trades and Labour Congress (TLC) was was formed in 1883; it effectively lobbied for formed in 1883; it effectively lobbied for legislative reform for all workerslegislative reform for all workers


• Work evolved from rural-based to factory basedWork evolved from rural-based to factory based• With the prevalence of U.S. owned industries there With the prevalence of U.S. owned industries there

was an increase in the distance between the was an increase in the distance between the employer and the worker – there was resentment by employer and the worker – there was resentment by the workerthe worker

• Federal Federal Conciliation ActConciliation Act (1900) conferred the power (1900) conferred the power to appoint third-party interveners or commissions of to appoint third-party interveners or commissions of inquiry to help resolve labour disputesinquiry to help resolve labour disputes

• The railways saw union expansion which brought an The railways saw union expansion which brought an increase in strikes which encouraged the passage increase in strikes which encouraged the passage of the Industrial Disputes Investigation Act in 1907of the Industrial Disputes Investigation Act in 1907

The Industrial Age: the Early 1900sThe Industrial Age: the Early 1900s

• The Canadian contribution to the war effort The Canadian contribution to the war effort made unionization more attractive to made unionization more attractive to Canadian workersCanadian workers

• While unionism was gaining favour, workers While unionism was gaining favour, workers felt that their concerns were not being felt that their concerns were not being adequately addressed wherein their ability to adequately addressed wherein their ability to strike was limited by the expanded powers of strike was limited by the expanded powers of Industrial Disputes Investigation ActIndustrial Disputes Investigation Act

The First World WarThe First World War

• The Winnipeg General Strike (1919)The Winnipeg General Strike (1919) Was the first extended, large-scale general Was the first extended, large-scale general

strike involving workers from many different strike involving workers from many different occupations and unionsoccupations and unions

30,000 – 35,000 unionized and non-unionized 30,000 – 35,000 unionized and non-unionized workers walked off their jobsworkers walked off their jobs

A committee representing employers and all A committee representing employers and all three levels of government attempted to force three levels of government attempted to force strikers back to workstrikers back to work

The First World War EraThe First World War Era

• The Winnipeg General Strike (1919) (cont’d)The Winnipeg General Strike (1919) (cont’d) Parliament passed emergency amendment to Parliament passed emergency amendment to

the the Immigration ActImmigration Act allowing for immediate allowing for immediate deportation of immigrants; also broadened the deportation of immigrants; also broadened the Criminal Code allowing police to arrest on Criminal Code allowing police to arrest on basis of suspicion, rather than evidence basis of suspicion, rather than evidence burden of proof was placed on the accusedburden of proof was placed on the accused

Strike ended June 25 but it did not end well Strike ended June 25 but it did not end well for unions for unions


• In Quebec, at the end of the decade, unions In Quebec, at the end of the decade, unions gained strength because of the influence of the gained strength because of the influence of the Catholic ChurchCatholic Church

• In 1921, so-called Catholic unions formed the In 1921, so-called Catholic unions formed the ConfConfééddéération des travailleurs catholiques du ration des travailleurs catholiques du Canada (CTCC)Canada (CTCC) The CTCC was involved in several high profile The CTCC was involved in several high profile

strikes, at least one of which ended well for strikes, at least one of which ended well for mineworkers when they were successful in mineworkers when they were successful in having their demands methaving their demands met

In 1961, it became the ConfIn 1961, it became the Confééddéération des ration des syndicats nationaux (CSN), which still exists syndicats nationaux (CSN), which still exists today today


• Canadian unions faced many difficulties after the Canadian unions faced many difficulties after the First World War, including:First World War, including: Widespread unemployment and wage cutsWidespread unemployment and wage cuts Disunity within the union movementDisunity within the union movement A poor agricultural market, the U.S. stock market A poor agricultural market, the U.S. stock market

crash (1929), and the subsequent Great crash (1929), and the subsequent Great DepressionDepression

• In contrast, some positive developments occurred:In contrast, some positive developments occurred: Skilled workers were still needed and were able to Skilled workers were still needed and were able to

maintain unitymaintain unity ““Industrial councils” were formed which included Industrial councils” were formed which included

less-skilled workersless-skilled workers Communities of ethnic immigrants within Communities of ethnic immigrants within

occupations created networks for support and occupations created networks for support and informationinformation

After the WarAfter the War

• Snider vs. Toronto Electrical CommissionSnider vs. Toronto Electrical Commission This 1925 ruling by the British Privy Council This 1925 ruling by the British Privy Council

settled the question of federal and provincial settled the question of federal and provincial jurisdiction over labour relationsjurisdiction over labour relations

Federal government’s jurisdiction over labour Federal government’s jurisdiction over labour relations extended only to federally regulated relations extended only to federally regulated industriesindustries

Ruling hampered development of Canadian Ruling hampered development of Canadian unionsunions


• The The Wagner ActWagner Act (1935)(1935) U.S. legislation introduced by President Franklin U.S. legislation introduced by President Franklin

Roosevelt guaranteed three basic rights to U.S. Roosevelt guaranteed three basic rights to U.S. union membersunion members

– The right to organizeThe right to organize– The right to collective bargainingThe right to collective bargaining– The right to strike without employer harassmentThe right to strike without employer harassment

Employers were forced to recognize a union that Employers were forced to recognize a union that had the support of the majority of workershad the support of the majority of workers

Several provinces adopted similar legislationSeveral provinces adopted similar legislation


• WW II saw a boom in the Canadian economy with WW II saw a boom in the Canadian economy with employment increasing along with increased employment increasing along with increased productionproduction

• The jurisdiction of the The jurisdiction of the Industrial Disputes Industrial Disputes Investigation ActInvestigation Act was expanded in 1939 to allow the was expanded in 1939 to allow the government increased control over industrial government increased control over industrial relationsrelations

• There was a counter balance found in a strike vote There was a counter balance found in a strike vote being required to make any strike legal but in return being required to make any strike legal but in return the government introduced wage and price controlsthe government introduced wage and price controls

• Unionization rates increased significantly during the Unionization rates increased significantly during the war but so did strike activitywar but so did strike activity

The Second World WarThe Second World War

• In 1944, the federal government passed In 1944, the federal government passed P.C. 1003P.C. 1003

• It was modelled on the Wagner ActIt was modelled on the Wagner Act

• The significant features of P.C. 1003 were The significant features of P.C. 1003 were compulsory bargaining and the right of employee compulsory bargaining and the right of employee representatives to be recognized as certified agents representatives to be recognized as certified agents

• Similar acts were passed by Quebec and B.C.Similar acts were passed by Quebec and B.C.

The Second World WarThe Second World War

• After the war there were fears of an economic After the war there were fears of an economic collapse but there were more safeguards established collapse but there were more safeguards established by the government than were in place after WW Iby the government than were in place after WW I

• The “Rand Formula” was developed in 1945 – The “Rand Formula” was developed in 1945 – automatic dues check-offautomatic dues check-off

• Justice Ivan Rand decided union dues would be Justice Ivan Rand decided union dues would be automatically deducted from every worker’s pay automatically deducted from every worker’s pay cheque, but that individuals would be allowed to opt cheque, but that individuals would be allowed to opt out of the unionout of the union

• The The Rand FormulaRand Formula was being used by 90 percent of was being used by 90 percent of Canadian unions by 1950Canadian unions by 1950

• By 1950, nearly every province had a labour codeBy 1950, nearly every province had a labour code

After the Second World WarAfter the Second World War

• The The Asbestos StrikeAsbestos Strike (1949)(1949) An illegal strike, supported by Catholic churches and the An illegal strike, supported by Catholic churches and the

Archbishop of MontrealArchbishop of Montreal Quebec Premier Duplessis sent armed police to Quebec Premier Duplessis sent armed police to

Asbestos; strikers responded by beating company Asbestos; strikers responded by beating company officials and dynamiting company propertyofficials and dynamiting company property

May: Strikers, incensed that the company had hired May: Strikers, incensed that the company had hired replacement workers, attacked the mines and the police; replacement workers, attacked the mines and the police; over 200 were arrestedover 200 were arrested

June: A settlement was negotiatedJune: A settlement was negotiated Served notice to the world that the Catholic unions were Served notice to the world that the Catholic unions were

no less militant than their secular counterpartsno less militant than their secular counterparts Marked the end of the formal relationship between the Marked the end of the formal relationship between the

Catholic Church and the Quebec union movementCatholic Church and the Quebec union movement

After the Second World WarAfter the Second World War

• Period of growth and development for unions and Period of growth and development for unions and was remarkably free from labour conflictwas remarkably free from labour conflict

• The TLC and CCL merged in 1956 to create the The TLC and CCL merged in 1956 to create the Canadian Labour CongressCanadian Labour Congress (CLC); the CLC affiliated (CLC); the CLC affiliated with the Quebec Federation of Labour (QFL)with the Quebec Federation of Labour (QFL)

• The predominantly international unions became The predominantly international unions became increasingly bureaucratized and centralizedincreasingly bureaucratized and centralized

• Early 1960s saw extensive public sector union Early 1960s saw extensive public sector union organizing but private sector wages and conditions organizing but private sector wages and conditions were superior were superior

• Ottawa passed the Public Service Staff Relations Act Ottawa passed the Public Service Staff Relations Act in 1965in 1965

The 1950s and 1960sThe 1950s and 1960s

• During the same period, During the same period, para-public sectorpara-public sector workers also organized on a large scaleworkers also organized on a large scale

• Some joined existing public-sector unions; Some joined existing public-sector unions; others joined the others joined the Canadian Union of Public Canadian Union of Public Employees (CUPE)Employees (CUPE)

• Also during this period, changing technology Also during this period, changing technology affected workplacesaffected workplaces


• In the early 1970s unemployment and In the early 1970s unemployment and inflation rose, coupled with the emergence of inflation rose, coupled with the emergence of markets external to North Americamarkets external to North America

• Unions were blamed for inflation and lower Unions were blamed for inflation and lower productivityproductivity

• 1975 saw wage and price controls imposed 1975 saw wage and price controls imposed (for a 3-year period) which resulted in (for a 3-year period) which resulted in increased strike activityincreased strike activity

• In 1982, the federal government suspended In 1982, the federal government suspended public servants’ bargaining rights for 2 yearspublic servants’ bargaining rights for 2 years


• Early 1980s Canadian economy experiencedEarly 1980s Canadian economy experienced Increased interest rates to fight inflationIncreased interest rates to fight inflation Restricted social programsRestricted social programs

• Politically, the election of a Conservative Politically, the election of a Conservative government created a hostile atmosphere for government created a hostile atmosphere for unionsunions

• Legally, the Legally, the Charter of Rights and FreedomsCharter of Rights and Freedoms (1982) provided new guidelines for labour (1982) provided new guidelines for labour relationsrelations


• Labour movement also saw internal dissent:Labour movement also saw internal dissent: The The Confederation of Canadian UnionsConfederation of Canadian Unions (CCU) (CCU)

presented an alternative to the CLCpresented an alternative to the CLC Construction unions broke away from the CLC Construction unions broke away from the CLC

to form the Canadian Federation of Labour to form the Canadian Federation of Labour (1982-1997)(1982-1997)

Canadian locals of the United Auto Workers Canadian locals of the United Auto Workers split from U.S. parent union to form the split from U.S. parent union to form the Canadian Auto WorkersCanadian Auto Workers


• The trend that developed toward Canadian The trend that developed toward Canadian control of Canadian unions has continued to control of Canadian unions has continued to the present daythe present day

• The demise of the CFL and the CCU has left The demise of the CFL and the CCU has left the CLC and the QFL and CNTU as the major the CLC and the QFL and CNTU as the major labour federations in Canadalabour federations in Canada


• Liberalized international trade was the major Liberalized international trade was the major event of the 1990s, which includes the event of the 1990s, which includes the North North American Free Trade AgreementAmerican Free Trade Agreement (NAFTA) of (NAFTA) of 1992 and Canada’s participation in worldwide 1992 and Canada’s participation in worldwide tariff reductionstariff reductions

• Some employers have used NAFTA to move Some employers have used NAFTA to move unionized jobs to regions with lower labour unionized jobs to regions with lower labour costs and non-unionized workerscosts and non-unionized workers

• Politically, the NDP, historically labour’s best Politically, the NDP, historically labour’s best friend, declined in political cloutfriend, declined in political clout

The 1990s and BeyondThe 1990s and Beyond

• Several large-scale labour disputes in last Several large-scale labour disputes in last few yearsfew years NHL lockout in 2004-2005NHL lockout in 2004-2005 Aliant strike in 2004Aliant strike in 2004 TELUS dispute in 2005TELUS dispute in 2005 CBC lockout in 2005CBC lockout in 2005

• Technology played a role in several of these Technology played a role in several of these disputes and may be an increasingly disputes and may be an increasingly important factor in labour disputes in the important factor in labour disputes in the futurefuture


• Another development is the coordinated effort Another development is the coordinated effort to organize unions in Wal-Mart stores.to organize unions in Wal-Mart stores. Some certification applications have been Some certification applications have been

filed, but not all have been successfulfiled, but not all have been successful

• Another event which may be significant is the Another event which may be significant is the fracturing of the American AFL-CIO labour fracturing of the American AFL-CIO labour federation in 2005federation in 2005


• The future can be viewed negatively or The future can be viewed negatively or positively for unionspositively for unions Negative perspectiveNegative perspective

– Internationalization, the slow decline in Internationalization, the slow decline in unionization rates, and the decline of the NDP unionization rates, and the decline of the NDP could suggest further erosion of unions’ powercould suggest further erosion of unions’ power

Positive PerspectivePositive Perspective– The relative strength of Canadian unions The relative strength of Canadian unions

compared to those in the U.S. and the history compared to those in the U.S. and the history of adaptability of the Canadian system suggest of adaptability of the Canadian system suggest that the system will continuethat the system will continue


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INDUSTRIAL RELATIONS IN CANADA INDUSTRIAL RELATIONS IN CANADA Second Edition Fiona A. E. McQuarrie...

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