Public Sector Issues Chapter 11 2012 Nelson Education Ltd.

Public Sector Issues

Chapter 11

© 2012 Nelson Education Ltd.

Copyright © 2012 Nelson Education Ltd.

Learning Objectives At the end of this chapter, you will be able

to discuss: why the public sector is a special industry the factors accounting for public sector union growth theoretical differences between private and public sectors bargaining power essential services and special dispute resolution

procedures and management issues such as restructuring, privatization

and HR practice differences

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Why Study Public Sector Labour-Relations Management A significant industry Highly unionized Important part of the labour movement in

Canada Different legislative framework

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Why Study Public Sector Labour-Relations Management Collective bargaining coverage

Statistic representing all employees covered by collective agreement as a percentage of the labour force

union and nonunion employees

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Collective Bargaining Coverage

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Why Study Public Sector Labour-Relations Management Dual role of government

umpire and employer Imperfect labour market

monopoly/monopsony public good

consumption does not reduce amount available

Politics and public opinion


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History of Public Sector Bargaining Union Growth Factors

social upheaval the growth in public services dissatisfaction with voice

mechanisms

continued…


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Union Growth Factors union mergers relative absence of employer

opposition removal of legal barriers

History of Public Sector Bargaining


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Greater union power service disruption presents a

danger to public health and safety demand is relatively inelastic affected public can punish only one

party

An Economic Analysis of Union Power


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Mechanisms designed to avoid strikes possible irreparable harm to the public excessive wage gains in negotiations

Canadian patchwork of strike policies conditional right to strike interest arbitration choice of mechanism

Dispute Resolution in the Public Sector


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Recent Developments in Dispute Resolution Unfettered-Strike Model

blue collar workers in local government all provinces since WWII most freely negotiated settlements works best when the services are not

essential


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Recent Developments in Dispute Resolution Essential Services

significant bargaining power to unions determine services in a strike or lockout


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Unfettered-Strike Model works best when services are not essential produces most freely negotiated

settlements Invites back to work legislation

Recent Developments in Dispute Resolution


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Designation Model parties negotiate to determine essential

services before bargaining starts or at the point of

impasse neutral tribunals can adjudicate most common for nurses



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No Strike (Interest Arbitration) Model right to strike is substituted with interest

arbitration declining in popularity in Canada



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Recent Developments in Dispute Resolution Chilling Effect

lack of bargaining flexibility caused by the parties’ fear a concession made in negotiations will reduce the arbitration outcome


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Recent Developments in Dispute Resolution Narcotic or Dependency Effect

result of frequent use of arbitration parties may lose ability to freely

negotiate settlements without third party assistance

final offer arbitration designed to reduce these effects


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Impact on Wage Outcomes higher under interest arbitration

Loss of Control especially budgetary control

Innovations in Dispute Resolution interest-based bargaining mediation-arbitration

Innovations in Dispute Resolution


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Management Issues Restructuring New Public Management (NPM)

decentralized, market driven, concerned with financial control

managers more empowered, performance oriented

Privatization contacting out


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Government Policies Management Employees

downsized and downgraded Unionized Employees

concessions legislated wage cuts

Implications of Restructuring


Management Issues Innovation

Socio-technical systems designworkers are complements to, not

simply extensions of, technologyparticipation, communication and

collaboration are encouraged


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Union Issues Reaction to privatization

Acquiescence Traditional Collective Bargaining Creative/Proactive


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Union Issues11-23


Summary Public sector IR plays an important

role in Canadian society Government's dual role Essential public services Special dispute resolution

procedures New public management Privatization


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Public Sector Issues Chapter 11 2012 Nelson Education Ltd.

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Transcript of Public Sector Issues Chapter 11 2012 Nelson Education Ltd.