Human Resources S ECTORS OF B USINESS A CTIVITY W HERE PEOPLE WORK Primary Sector Concerned with the exploitation of natural resources Secondary Sector Transforming raw materials into finished products Tertiary Sector Provides goods and services to consumer base Ex: Banking, Restaurants, Hotels Quaternary Sector Investment in new technologies Information generation and sharing Ex: Robotics, Research & Development C HARACTERISTICS OF THE LABOUR F ORCE What makes you employable? Education Specialization Experience Motivation Canadas labour Force Total Pop: 34,300,083 (estimated)(July 2012) Pop eligible to work: million (2011 est.) 2% Agriculture 13% Manufacturing 76% Services 3% Other Unemployment Rate: 7.5% CIA Factbook I MPORTANCE OF E DUCATION 1/16 with higher education are unemployed 1/8 with Cgep with High School Drop outs C ALCULATING THE LABOUR F ORCE Refer to P. 52 in Workbook Those who do not count: People under 15 Full-time students People 15 years + who are not seeking work Fulltime army personnel People living on Indian reserves Retired People Volunteers Homemakers U NEMPLOYMENT Rates and trends differ from province to province and country to country Can depend on level of education, age groups, industry and other economic factors Some potential causes: Inability to compete with foreign producers Fewer new jobs created Lack of training Primary and secondary jobs decreasing Significance Drop in GDP Lower Standard of Living Unemployment benefits and welfare expenditures Suffering of the jobless T YPES OF U NEMPLOYMENT 1. Frictional (Normal Unemployment) People who have been fired or quit to seek a better job Desirable because the mobility of workers encourages productivity 2. Cyclical Results from changes in the business cycle which fluctuate from periods of growth to periods of recession Most feared by Governments 3. Structural Consequence of changes in market conditions Often result of technological changes 4. Seasonal Results from industries that only operate during specific times of the year 5. Hidden Workers who are so discouraged they have given up seeking work Not counted among the unemployed F ULL EMPLOYMENT Not the same as Zero unemployment 100% employable rate not desirable Economists consider 4% UNE to be full employment Underemployment Refers to a situation where a worker is overqualified for a given job or he/she wants to work full time but can only find a part-time post. H OW CAN G OVERNMENTS F IGHT U NEMPLOYMENT ? Subsidizing public work programs Decreasing the interest rate Reducing taxes (consumers would..) Improving confidence in the economy Provide incentives for those who have given up Encouraging early retirement Improving education and training programs C OST OF L ABOUR Law of supply and demand also applies to Labour Education, experience and seniority Role of Geography Responsibility Unions Minimum wage laws L ABOUR COSTS IN I NDUSTRY A. Capital Intensive Utilize Machinery Little use of labour Capital resources are the greatest expense Profit is maximized by mass production B. Labour Intensive Many people are employed in the production process Labour costs are high in relation to production value S TRUCTURES OF U NIONS Unions are a by-product of the Industrial Revolution Objective: further the welfare of its members Protect labour rights Improve working conditions Protect against exploitation Fight for higher wages and fringe benefits QC: 2/3 workers belong to a union Structure of Unions Most represent a multi-tiered system within the structure of organized labour Large Federations are the top dog Some unions can be national within Canada and others can be affiliated with Larger American Unions How are Unions Formed? Federations reach out to workers or vice versa They will advise on the procedures which must be followed to achieve Accreditation If between 35-50% of the workers initially sign on, then organizers can seek accreditation (begin the process) Then, if 50% plus 1 vote in favor of forming a union, official certification is granted. Now all employees automatically become members and are obligated to pay fees Fees and payments are determined by law (Rand Formula, 1946) Collective bargaining can now begin In Quebec, a union may be recognized by the Ministre du Travail The Benefits of Labour Unions Reduce wage inequality Reduce profits Increase stability of workforce Promote social legislation The Disadvantages of Labour Unions Work disruption Increase price of labour All members must pay fees for representation. 3.2.3 T HE L ABOUR C ONTRACT N EGOTIATION P ROCEDURES How do Unions negotiate remuneration and fringe benefits with their employer? C OLLECTIVE B ARGAINING Uses the collective strength of the workers to demand concessions Otherwise employees would have to negotiate individually with their employer CB protects individuals from reprisals (negative consequences) by the employer Members of the union decide on their collective demand, which can include: Changes in pay (monetary) Working conditions (non-monetary) Fringe benefits (monetary) Established pay scales (monetary) Safety Regulations (non-monetary) Grievance procedure (non-monetary) G RIEVANCE P ROCEDURE If a dispute were to arise over a certain clause in the agreement either side may file a grievance (complaint) with a special labour court. The judge or tribunal hears both sides and makes a ruling One of the only ways to make sure the contract is adhered to Then the employer organization decides whether or not to accept the unions terms Could also counter offer The new Collective Bargaining Agreement is binding usually for 1 to 3 years We have a deal!!! B UT WHAT HAPPENS WHEN THINGS DON T GO SO SMOOTHLY ? I F NEGOTIATIONS FAIL Either side may resort to Pressure Tactics Strikes (used by employees) Lockouts (used by employers) Hire Scabs (used by employers) Slower Production Taking more sick days No overtime M EDIATION Either party in the dispute may request that the ministry of labour appoint a mediator The role of the mediator is to meet with both sides and make suggestions on how to proceed Not legally binding C ONCILIATOR Attempts to bring both sides together Appointed by the ministry of labour Submits a written report recommending compromise If these compromises are not accepted by both sides the dispute continues A RBITRATION Both sides must request the help of an arbitrator (expert in the field, lawyer) 3 arbitrators are selected and consider both sides of the dispute Their decision is legally binding Not a popular way to settle the stalemate (everyone loses) A court order that requires certain things to be done or to be stopped Ex: Reduce amount of people picketing Mostly requested by employers who believe that public safety or interests are being endangered But Unions can also ask for an injunction Ex: To have a lockout lifted To counter the power of the unions, Quebec introduced the following strategies The Essential Services Act Requires that the union provide sufficient workers during a strike in order to maintain vital services. The Imposition of Decrees Special legislation which requires the union to end the strike as well as imposing a contract on the workers without their consent 3.2.4 T HE R OLE OF THE S TATE The Role of the State Governments are responsible for passing legislation that look after the relations between employers and employees Important because the Govt, especially the Qubec Govt are the employers of thousands of citizens They employ citizens in 3 sectors 1.Public Servants (Ex: Postal Workers) 2.Para-Public Workers (Ex: Teachers) 3.Crown Corporations (Ex: Hydro Quebec) L ABOUR C ODE A set of laws and codes that pertain to working conditions There are 2 Labour Codes A. The Canadian Labour Code (Nation Wide) Deals with Minimum wages Employment insurance Pension plans Duration of work day and week Maternity leave B. Quebec Labour Code Outlines the process for Union Certification Secret ballots ( to elect union officers, seeking a strike mandate, or ratifying a collective agreement ) Grants the right to strike Prohibits the hiring of scabs during a legal strike During the 1980s the PQ brought in: A collective agreement between non-unionized workers and their employees. Basic rights of employees Minimum wage Maximum work week Statutory holidays Overtime Vacation pay Special leaves