CH-12-CCH Solution Ensuring Health and Safety at the Workplace – Canadian Human Resource Management: A Strategic Approach : Book Guide

This Document Contains Chapters 12 to CCH Solution 12 ENSURING HEALTH AND SAFETY AT THE WORKPLACE CHAPTER OBJECTIVES After studying this chapter, you should be able to: Describe the major Canadian laws relating to occupational health and safety. Assess the traditional thinking with respect to occupational health and safety issues. Explain the new thinking with respect to employee rights relating to occupational health and safety issues. Outline the safety and health responsibilities of employers and employees. Discuss the impact of stress on employees and the workplace. Summarize the relationship between health and safety issues and human resource management. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) LECTURE OUTLINE (with PowerPoint® slides) Ensuring Health and Safety at the Workplace Slide 1 Assumption of Risk Slide 2 Safety in the Workplace Models Slide 3 Health & Safety in the Workplace Slide 4 Workplace Injuries and Health Hazards Slide 5 ENSURING HEALTH AND SAFETY AT THE WORKPLACE At the turn of the 20th century, the thinking and attitudes of employers and employees toward accident prevention were quite different from today • Assumption of risk was a legal expression used by the courts -- Obsolete attitude toward accident prevention shared by employers and employees where the worker accepted all the customary risks and unsafe practices of the occupation he or she worked in • Careless worker model was the early approach to safety in the workplace -- Assumed that most accidents were due to workers’ failure to be careful or to protect themselves, i.e., assumed it was mainly the worker’s fault if an accident happened • Shared responsibility model assumes the best method to reduce accident rates relies on the cooperation of the two main partners: the employer and the employee • Growing emphasis on health and safety in the workplace due to: -- Strong union pressure -- Increased public interest in greater corporate responsibility -- Better and more comprehensive federal and provincial legislation and health and safety measures WORKPLACE INJURIES AND HEALTH HAZARDS Workplace accidents and occupation-related illnesses cost about $8 billion annually in direct compensation (total cost exceeds $19 billion when indirect expenses are considered) • Accidents at work are caused by a complex combination of unsafe employee behaviour and unsafe working conditions -- The number of workplace injuries have declined in recent years, however, the direct cost of injuries (lost wages, first aid and medical treatment, rehabilitation, disability compensation) has not. Additional indirect costs include lost production, recruiting, selecting, training of new employees, damage to facilities and equipment -- Men are about twice as likely as women to have a loss-time injury -- Younger workers are most likely to be injured -- Most dangerous industries are fishing, construction, manufacturing and transportation -- The back is the most common body part to be injured Health Hazards Slide 6 Younger Workers Slide 7 Federal and Provincial Safety Regulations Slide 8 Joint OHS Committee Slide 9 Federal Laws Slide 10 • Health Hazards -- Physical agents—exposure to physical elements such as noise, temperature, lighting, vibrations, and radiation -- Biological agents/biohazards/chemicals—exposure to such natural organisms as parasites, bacteria, insects, viruses (e.g., SARS, West Nile virus) and chemical compounds or other harmful toxic substances -- Ergonomically related injuries—caused by the work environment, e.g., repetitive strain, stress, over-exertion/fatigue, back injuries • Younger Workers and Workplace Safety -- Growing emphasis on the health and safety of young workers -- 1 in 7 young workers is injured on the job -- Approximately one-fourth of all workplace injuries involve employees in the 15-29 age group (electrocution and machine injuries are the most common types of injuries for this age group) FEDERAL AND PROVINCIAL SAFETY REGULATIONS Each province and the federal jurisdiction have detailed legislation addressing health and safety • Three fundamental employee rights -- The right to know about hazards in the workplace -- The right to participate in correcting those hazards -- The right to refuse dangerous work • Joint Occupational Health and Safety Committee -- Key element of health and safety laws -- Broad range of responsibilities, e.g., ensure adequate records are kept; investigate and resolve employee complaints; monitor health and safety programs; develop, establish, and promote health and safety programs and procedures -- Usually required in every workplace with 20 or more employees • Additional Federal Laws -- Hazardous Products Act (1985)—primary objective was the protection of consumers by regulating the sale of dangerous products -- Workplace Hazardous Materials Information System (1988) –WHMIS now includes Hazardous Products Act. Requires that suppliers label all hazardous products and provide a Material Safety Data Sheet (MSDS) on each. Also requires that employers provide training to enable employees to recognize the WHMIS hazard symbols and understand the information in the MSDS Responsibility for Health & Safety Slide 11 Implications for HRM Slide 12 Workplace Stress Slide 13 Symptoms of Stress Slide 14 Major Causes of Workplace Stress Slide 15 Major Causes of Workplace Stress (cont’d) Slide 16 Burnout Slide 17 Stress Management Slide 18 HR Actions to Reduce Stress Slide 19 Fitness & Employee Wellness Slide 20 Other Contemporary Safety Issues Slide 21 RESPONSIBILITY FOR HEALTH AND SAFETY A major purpose of occupational health and safety laws is to prevent injuries from happening. The responsibility for safety needs to be a concern for everyone: 1. Top Management • Set the policies and make concern for health and safety part of the organization’s culture and strategy • Public opinion favours holding corporate executives responsible for avoidable accidents that occur in the workplace 2. Supervisors • Must become proficient in managing safety -- Knowing about health and safety laws and regulations -- Trained in observing safety violations -- Communication skills to convey information to employees 3. Employees • Responsible for working safely -- Trained in safety rules and how to operate equipment safely -- Good safety performance should be recognized and rewarded including the use of group awards -- Unsatisfactory practices should be documented and corrected IMPLICATIONS FOR HUMAN RESOURCE MANAGEMENT • Consistent enforcement -- Human resource professionals should ensure consistent enforcement of all safety and health rules • Due diligence -- Organizations are responsible for ensuring that all reasonable steps were taken to avoid a particular health and safety offence • Health and Safety Audit -- Has become quite popular, especially with companies who pay attention to health and safety • Safety Climate -- Is an important factor affecting safety knowledge and motivation -- Eight dimensions: Management commitment to safety HR management practices Safety systems Supervisory support for safety Internal group processes Boundary management Risk Work pressure • Downsizing and Safety -- Some evidence that employees during a downsizing believe that productivity is more important than safety and are less likely to carry out their jobs safely unless the organization has a positive safety climate and safety is perceived as important WORKPLACE STRESS • Workplace stress -- Harmful physical and emotional responses • Stress management -- Now part of the regular vocabulary of managers and employees -- Ways of dealing with the problem of stress • National Health Survey -- Estimates the financial cost associated with mental health issues to the Canadian economy at about $30 billion per year • Symptoms of stress that can harm employee performance: -- Nervousness; chronic worry; easily provoked to anger; unable to relax; stress-related physical ailments e.g. stomach upsets; cardiovascular disease, musculosketal disorders, e.g., back injuries; psychological disorders e.g. depression, workplace injuries, suicide, cancer, ulcers and impaired immune functions CAUSES OF STRESS AT WORK • Stressors are conditions that tend to cause stress -- Exposure to job stressors can directly influence the health and safety of employees -- Individual and situational factors can intervene to increase or reduce the amount of stress experienced e.g. one’s outlook or attitude, having a support network, work and family life balance Major Causes of Workplace Stress • Factors Unique to the Job -- Includes workload, work pace/variety/meaningfulness of work, autonomy, hours of work/shiftwork, physical environment (noise, air quality, etc,), isolation (physical or emotional) • Role in the Organization -- Includes role conflict/role ambiguity, level of responsibility • Career Development -- Includes under- or over-promotion, job security, career development opportunities, overall job satisfaction • Relationships at Work -- Includes supervisors/co-workers/subordinates, threat of violence or harassment • Organizational Climate -- Participation (or non-participation) in decision-making, management style, communication patterns • Burnout -- Condition of mental, emotional, and sometimes physical exhaustion that results in substantial and prolonged stress -- Human resource department’s role is a proactive one to help employees prevent burnout, e.g., train supervisors to recognize stress and take action to reduce employee stress, re-design jobs, provide counselling, etc. • Stress and Job Performance -- Stress can be either helpful or harmful to job performance, depending upon the amount of stress experienced STRESS MANAGEMENT • Curative measures try to correct the outcome of stress, e.g., availability of exercise, counselling services • Preventive measures attempt to change the cause of stress e.g. stress management training sessions, improving working conditions • Stress audit identifies the causes of stress HUMAN RESOURCE ACTIONS TO REDUCE STRESS • Compatible workload—ensure that an employee’s workload is compatible with the individual’s capabilities and resources • Job design—design jobs to provide meaningful opportunities for employees to use their skills • Define roles—clearly define employee roles and responsibilities • Participate in decisions—provide workers with the opportunity to participate in decision making • Improve communication process • Work schedules—develop appropriate work schedules • Provide training—train managers and employees to be sensitive to the symptoms of stress • Establish policy—establish a stress management policy FITNESS AND EMPLOYEE WELLNESS PROGRAMS Fitness, wellness and lifestyle programs, have been shown to have a positive impact on reducing stress and absenteeism and increasing productivity. These programs: • Improve employee health • Decrease health-care costs • Improve employee satisfaction • Decrease absenteeism and turnover • Improve corporate image OTHER COMPTEMPORARY SAFETY ISSUES • Workplace Security -- Reassessment of security policies to make workplaces safe, disaster preparations, increased screening of new hires • Sick Building Syndrome (SBS) -- Growing number of employees report becoming sick while working in a particular building e.g. headaches, allergic reactions -- May be caused by pollutants, e.g., mould; solvents, cleaners, etc. • Workplace Violence -- Violence is the third-highest cause of all workplace deaths and the leading cause of workplace death for women (U.S.) -- Some employers are developing extensive programs to address safety concerns and workplace violence • Ergonomics -- Also known as human factors engineering—focuses on the interaction between employees and their working environment -- Most rapidly growing category of workplace illnesses involves ergonomic disorders, e.g., repetitive-strain injuries • AIDS -- HIV and AIDS have a potentially immense impact on HR -- Requires policy, training, education, counselling and support ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. Explain the legal term "assumption of risk." At the turn of the century the courts used this term to mean that a worker had to accept all the risks associated with an occupation he or she accepted. 2. What factors affect occupational accidents? By and large, work accidents are caused by a complex combination of unsafe employee behaviour and unsafe working conditions. Some of the key dimensions are inadequate monitoring or disclosure of health hazards, employers covering up accidents, ignorance by medical professionals, personal habits like smoking, costs of safety procedures, and carelessness by employees. 3. What responsibilities do Joint Occupational Health and Safety Committees have? To deal with health and safety complaints by employees, to identify hazards and to regularly monitor workplaces for hazards, to monitor records of injuries and illnesses, to participate in investigations of health- and safety-related injuries, to develop, establish, and promote health and safety programs and procedures, and to obtain information from the employer and government agencies concerning existing or potential hazards in the workplace. 4. Explain the requirements of the Workplace Hazardous Material Information System (WHMIS): It requires that suppliers label all hazardous products and provide a Material Safety Data Sheet (MSDS) on each one. It also requires that all employers provide training to enable employees to recognize the WHMIS hazard symbols and understand the information on the MSDSs. ANSWERS TO CRITICAL THINKING QUESTIONS 1. Develop a strategy and identify the implementation steps you would follow to lower the incident rate of workplace accidents in your organization. See the discussion on pp. 435-440. 2. Think about a time when you felt under considerable stress. What were the causes of that stress? What efforts (by you and/or others) were or could have been taken to reduce the stress? Students will discuss personal experiences with stress. Causes of stress are listed in Figure 12-5, p. 443. The focus of the discussion should be on the attempt to cope with the stressful situation (see pp. 445-446). 3. What can be done to prepare an organization for an AIDS case? It is essential that an employer develop and adopt an organizational policy on how to cope with such a case and that educates supervisors and employees about the nature of AIDS. See discussion on p. 452. 4. Consider an organization that you have worked in. Critically review its safety procedures and training. Evaluate the organization in terms of the presence of physical, biological, and chemical hazards. Also be sure to address issues relating to ergonomics. Students will discuss personal experiences. Ideally, they will list the procedures and critique them, as well as list the different types of hazards. They may need some assistance in discussing the ergonomic aspect of a job, e.g, height of chairs, tables, counters, desks, accessibility of shelves, drawers, switches, faucets, lighting, job design, etc. See discussion on p. 451 related to ergonomics. ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. INCIDENT 12.1: SAFETY AT CANADA CHEMICALS LTD. Incident Comments This incident is useful for illustrating the conflict that often arises between operating managers and safety managers. Line managers often see safety as a barrier to higher production, and sometimes concern for safety is viewed as the concern only of those who are easily scared. Often, this problem comes to some crisis and top management is forced to mediate. 1. If you were the general manager, what would you do to gain greater cooperation for safety from: (a) Gar, and (b) the workers under him? Some companies make line managers responsible for safety by evaluating those managers for raises and promotions, in part, on their support of safety rules and procedures. Some employers go even further and require complete weekly or monthly safety slogan contests that pay the winning employee a nominal amount. Participation through safety meetings, slogan contests, and rewards for good group safety can reduce problems. 2. Should Sam be given authority to discipline those who violate safety rules? Many companies are reluctant to give safety managers the authority to discipline workers because executives think safety managers may deprive operating managers of the authority to discipline. However, without a strong safety program at Canada Chemicals Limited, employees may not take the company's commitment to safety very seriously. If the safety director also has the authority to discipline workers, employees will feel there is a concern for safety. One or two disciplinary situations (for example, a day off without pay for an employee who was not using proper safety equipment), probably would cause other employees to realize the seriousness of the firm's approach to safety. CASE STUDY: MAPLE LEAF SHOES LTD., SAFETY AT THE WORKPLACE The First Issue 1. Does Maple Leaf Shoes have just cause to dismiss Sam? Catherine? 2. What should Jon do in this case? 3. Develop a policy on AIDS and describe how you would administer this new policy. Additional information on issues relating to just cause and termination are provided in other chapters (see, in particular, Chapter 4 (Meeting Legal Requirements) and Chapter 11 (Managing Employee Relations). With regard to the right to terminate Sam, the fact that Sam had been infected with the AIDS virus is not grounds for termination. In cases involving the preparation of food, some organizations have sought to transfer an employee with the AIDS virus to another job in the organization. While the Chapter and Appendix material provides considerable information on how the AIDS virus is transmitted, students frequently bring up the point that they would be unwilling to eat food prepared by someone with AIDS. Concerning the right to dismiss Catherine, the key issues involve fear of contracting AIDS and insubordination. Fundamental points for discussion include the development of a policy on AIDS, the need for and importance of education, and the importance of confidentiality. A review of some of the concepts relating to employee discipline (discussed in Chapter 11) is also very helpful. The Second Issue 1. Does Maple Leaf Shoes have just cause to terminate Alex? 2. In discharge cases, the grievance procedure at Maple Leaf Shoes goes directly to step three (a meeting between senior union and management representatives). The management side is looking to Jon for advice on how to proceed. Help Jon formulate an appropriate strategy. Although substance abuse is a very important issue, many organizations do not have a clear policy on how to deal with the issue. In considering whether Maple Leaf Shoes has just cause to terminate Alex, some of the key factors include: * Alex's previous record (related and unrelated offences -- students will often link the three-day suspension for drinking with the current issue). • Alex's role as a single mother — an interesting topic for discussion frequently revolves around whether the company should take into account personal factors when disciplining an employee. • company concern with substance abuse problems — although limited to the warehouse, Alex and her co-workers in the secretarial area were warned that drug use would not be tolerated (but was this warning clear enough and sufficiently reinforced?). • although Alex admitted smoking the marijuana cigarette on company property, she was off-duty. An interesting discussion often focuses on the duties of an employee outside of work hours and the right of organizations to restrict or control employee behaviour outside of work hours. • the safety issue — the organization was legitimately concerned about safety in the workplace, but Alex may argue that her actions did not impair the safety of herself or her co-workers. • the need for a policy on substance abuse. • the desire to rehabilitate an employee — depending on the circumstances, substance abuse may be considered an illness, and there is a tendency to give employees a "second chance" (usually in combination with enrollment in an Employee Assistance Program). In cases such as this one, an arbitrator is likely to impose some type of penalty (suspension) and require the employee enroll in an EAP program. One useful technique is to have the students decide the Alex Dixon case on their own and then compare answers. As well, the case can also be used as a mini-negotiation exercise in which students are divided into teams (union and management) and required to try and settle the grievance without going to arbitration. CASE STUDY: STRESSFUL TIMES AT A CPIB BRANCH Answers to Discussion Questions First Issue 1. The day of the meeting between Roselynn and Marsha had arrived. Was arranging such a meeting a good idea? Having a meeting is a good idea provided that Marsha has investigated the specific circumstances which led to this incident. Marsha also should develop an action plan to help Roselynn cope with the situation. 2. What should Marsha try to achieve during the meeting? Were there any steps that could have been taken to prevent this incident from occurring? During the meeting, Marsha should help Roselynn develop a plan to help her cope with the situation. She could adopt the awareness attitude action (AAA) method to stress reduction, which focuses on developing awareness of stress related problems, adjusting attitudes (accepting for your reactions and developing a positive outlook), and taking actions. A way to have prevented the incident was to approach Mr. Romanowski after the first incident and request that he not berate Roselynn. Another preventative step was to have the teller manager talk to Mr. Romanowski after he refused to go to Roselynn’s work station. Second Issue 1. Develop a safety training program for bank employees. What are the basic components of the program? What requirements would you build into such a program? The safety program should focus on steps employees can take to prevent or minimize the risks of future robberies. Training should also focus on ways to cope with future traumatic events through the AAA method. The methods of training can include a combination of lectures, cases, and role-playing exercises. The training program should be given to all bank employees. The employees should have access to information about various curative and preventive measures, such as EAPs available at CPIB. Moreover, all employees who experienced future traumatic events should be given follow-up debriefing and counselling to help them cope. 2. As a result of the robbery, a number of employees and customers may feel traumatized. What should the bank do in such a situation? Be sure to consider both short- and long-term suggestions. The short-term plan is to have counselling services available to customers and employees. The long-term plan is to re-design the layout of the branch so as to discourage future robberies. This should be done with input from all employees. A stress audit should be conducted to see if the robbery had any lingering long term psychological and physiological effects on employees. If it has, then CPIB may need to enhance their EAP to help them cope. This may also include training CPIB managers to be sensitive to the symptoms of stress. A stress management policy should be in place at CPIB if one does not exist. THE UNION-MANAGEMENT FRAMEWORK 134 CHAPTER OBJECTIVES After studying this chapter, you should be able to: Describe the structure of Canadian unions. Discuss the major reasons why workers join unions. Explain how a union organizing campaign is carried out. Summarize the core legal principles relating to collective bargaining. Outline the key steps in negotiating a union contract. List common techniques to resolve disputes. Describe how unions affect the human resource management environment. Suggest ways to build union-management cooperation. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) LECTURE OUTLINE (with PowerPoint® slides) The Union-Management Framework Slide 1 Union Defined Slide 2 Collective Agreement Slide 3 Why do Employees Join Unions? Slide 4 Attitudes Toward Unions Slide 5 THE UNION-MANAGEMENT FRAMEWORK A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement • Unions do not just happen. They are frequently caused by management action or inaction that workers perceive as unfair • Collective agreement is a contract negotiated between the union and employer, outlining terms and conditions of employment -- Addresses a variety of issues such as wages and benefits, hours of work, working conditions, grievance procedures, etc. -- Places restrictions on management’s rights in managing the workplace CAUSES OF UNIONS • Reasons for joining include: -- Job dissatisfaction -- Individual attitudes toward unions in general -- Perceived union instrumentality (beliefs about what unions can do for an employee) • Reasons for not joining include: -- Employees who want to become managers may believe union membership damages their chances for promotion -- View unions as “another boss” that leads to extra costs, such as union dues or lost wages from strikes -- Negative opinions toward unions and collective action based on past experiences or stories of union wrongdoing -- Employer policies and supervisory treatment may be fair, and employees lack the motivation to join a union CANADIANS’ VIEWS TOWARD UNIONS • Nanos Research survey conducted with Canadian participants: -- Approximately 77% of unionized employees perceived that the presence of a union was important for receiving fair treatment from their employer -- Only 1/5 of non-union employees reported that they were interested in being unionized Union Goals and Philosophy Slide 6 Union Structure and Function Slide 7 Trends in Union Membership Slide 8 LABOUR UNIONS: GOALS AND STRUCTURE • Business Unionism -- The practice of unions seeking to improve the wages, hours, and working conditions in a businesslike manner -- Recognizes that a union can survive only if it delivers a needed service to its members • Social (Reform) Unionism -- Characteristic of unions seeking to further members’ interests by influencing the social, economic, and legal policies of governments -- Involves speaking out for and against government programs at all levels—municipal, provincial, and federal UNION STRUCTURE AND FUNCTION • Local Unions -- The most important part of the union structure for most union members and industrial relations practitioners -- Provides the members, the revenue, and the power of the entire union movement • Craft Unions -- Composed of workers who possess the same skills or trade, e.g., carpenters who work in the same geographic area • Industrial Unions -- Include the unskilled and semiskilled workers at a particular location • National and International Unions -- Many unions are also part of a larger union—which may be a national union, e.g., Canadian Union of Public Employees; or an international union, e.g., United Steelworkers of America -- Exist to organize and help local unions; pursue social objectives; assist local union with negotiations and grievance handling; and provide expert advice -- Approximately 26% of union members belong to an international union—down from approximately 66% in 1960 (secession) • Canadian Labour Congress (CLC) -- Largest labour federation with a total membership of more than 3 million employees TRENDS IN UNION MEMBERSHIP • Union Growth and Decline -- In 2011, about 29.7% of the non-agricultural paid workforce (4.3 million workers) belong to unions -- The number of women members in Canadian unions has been increasingly rapidly (now more than 50% of union members are female) -- Unions are placing greater emphasis on organizing service employees Impact of Union Representation Slide 9 Canadian Labour Legislation Slide 10 Labour Relations Boards Slide 11 Influences on Unionization Slide 12 Unfair Labour Practices Slide 13 3 Phases of Collective Bargaining Slide 14 Mutual Gains Bargaining Slide 15 Conciliation & Mediation Slide 16 Administering the Agreement Slide 17 Contract Provisions Slide 18 HRM & Bargaining Unit Employees Slide 19 Implications of Union Avoidance Slide 20 Features of Union Substitution Slide 21 Managing in a Union Environment Slide 22 Labour-Management Cooperation Slide 23 -- Newfoundland has the highest rate (37%) of unionization; Alberta (23%) has the lowest union density -- Part-time workers are less likely to be unionized (23%) than full-time workers (31%) -- Larger workplaces are more likely to be unionized—54% in firms with more than 500 employees; 13% in firms with less than 20 employees -- International trends—a number of countries have experienced a decline in union density THE IMPACT OF UNION REPRESENTATION • Strikes -- Although the public frequently associates unions with strikes, most collective agreements are settled without a strike or lockout • Wages and Benefits -- Wages tend to be higher for full-time unionized employees and the difference in wages is even more pronounced for part-time employees -- Unionized employees usually have more comprehensive benefits • Unions and Productivity -- The relationship between unionization and productivity is subject to debate and has not been universally agreed upon THE LEGAL ENVIRONMENT Federal jurisdiction over labour relations is limited to Federal government agencies and organizations involved in interprovincial trade and commerce (e.g., banks, airlines, railways, federal government agencies). All other organizations fall under provincial jurisdiction. The common core of Canadian Labour Legislation includes: • Right to join a union -- Employees have the right to join a trade union of their choice and participate in the union’s activities • Good faith bargaining -- In attempting to negotiate a collective agreement, both labour and management have a duty to “bargain in good faith” • No strikes or lockouts during the life of the collective agreement -- It is illegal for a union to strike or an employer to lock out employees during the life of the contract • Prohibition of unfair labour practices -- All jurisdictions have legislation prohibiting unfair labour practices by employers and unions • Conciliation before strike or lockout (in most provinces) • Labour Relations Boards -- Boards set up in the federal and provincial jurisdictions to administer labour relations legislation -- Investigate violation of the law and have the power to investigate and make decisions, e.g., enforce unfair labour practice allegations FACTORS THAT MAY LEAD TO UNIONIZATION • Prior to union organizing campaigns, there are often signs of employee interest in unionization -- Turnover and absenteeism rates are higher than industry/community norms; employee satisfaction surveys show that employees are dissatisfied; pay and benefits are below average; procedures for resolving employee complaints are ineffective UNFAIR LABOUR PRACTICES • Unfair Labour Practices by Management -- Interfering in the formation of a union or contributing to it financially -- Discriminating against an employee because the individual is or is not a member of a trade union or because that individual chooses to exercise rights granted by labour relations statutes -- Intimidating or coercing an employee to become or not become a member of a union • Unfair Labour Practices by Unions -- Seeking to compel an employer to bargain collectively with the union if the union is not the certified bargaining agent -- Attempting, at the workplace and during working hours, to persuade an employee to become or not become a union member -- Engaging in, encouraging, or threatening illegal strikes -- Failing to represent employees fairly • Obtaining Bargaining Rights -- Legal recognition may be obtained in 3 ways: Voluntary recognition Regular certification Prehearing votes NEGOTIATING A COLLECTIVE AGREEMENT Once a union is certified, the union and management are required to bargain in good faith to negotiate a collective agreement. The collective bargaining process has three overlapping phases: • Phase 1—Preparation for Negotiations -- Often the most critical stage -- Detailed preparations are required to achieve objectives • Phase 2—Negotiating with the Union -- Face-to-face bargaining -- Covers a variety of issues relating to terms and conditions of employment • Phase 3—Approving the Proposed Agreement -- Bargaining stage of negotiations is completed when the agreement has been approved—negotiations are not complete until both parties (union and management) approve the proposed agreement MUTUAL GAINS BARGAINING • Moves away from traditional adversarial approach to negotiating a collective agreement • Win-win approach in which both parties engage in joint problem-solving activities • Process is usually preceded by training in conflict resolution for both employer and union representatives • Requires both labour and management to have commitment, trust, respect, and a long-term focus CONCILIATION AND MEDIATION In the event that negotiations between labour and management breakdown all jurisdictions provide for conciliation and mediation • Conciliation -- A government-appointed third party attempts to bring together the parties to reconcile their differences -- Appointed at the request of either one or both parties or at the discretion of the minister of labour (federal or provincial) -- Strike or lockout can typically commence after the conciliator has filed his or her report and a cooling off period (often two weeks) has passed • Mediation -- Process whereby disputing parties choose voluntarily to reconcile their differences through a third party ADMINISTERING THE COLLECTIVE AGREEMENT • Grievance procedures -- Grievance is a complaint by an employee or employer that alleges that some aspect of a collective agreement has been violated -- Grievance procedures--most collective agreements include formal multi-step procedures to resolve grievances, e.g., preliminary discussion, complaint is put in writing, etc. -- Arbitration is used to resolve a grievance when an acceptable solution cannot be reached. Process may be costly, highly legalistic and is final i.e. usually cannot be changed or revised • Contract Provisions -- Union shop—a union security provision in which employers may hire anyone they want, but all workers must join the union within a specified period -- Dues check-off / Rand Formula is a common provision in collective agreements and requires an employer to deduct union dues at source from the wages of an employee and remit the funds to the union -- Seniority—length of the worker’s employment, which may be used for determining order of promotion, layoffs, vacation, etc. -- Discipline—the requirement that the employer must have “just cause” to discipline or discharge an employee is a common provision in many collective agreements HRM AND BARGAINING UNIT EMPLOYEES • More than 95% have a policy addressing sexual harassment • 86% have an orientation program for new hires • 86% have an employee assistance plan (EAP) • 66% have a formal performance appraisal system • Unions have generally stayed away from contingency compensation plans, i.e., profit-sharing, employee stock ownership plans, etc. IMPLICATIONS OF UNION AVOIDANCE APPROACHES In non-union facilities, an implicit objective of many employers is to remain non-union: • Union Suppression -- Involves fighting union representation -- An employer may try to intimidate workers, threaten closing or moving the plant or facility, or discriminate against union supporters • Union Substitution -- Examines what unions bring to the employment relationship and tries to introduce these features into the non-union workplace -- Advocated by many HR practitioners, consultants, and labour lawyers • Features of Union Substitution -- Design satisfying jobs i.e. personally satisfying to employees -- Maximize opportunities—develop plans that maximize individual opportunities while minimizing possibility of layoffs -- Select qualified workers -- Establish fair standards of individual performance -- Train workers and managers to enable them to achieve expected levels of performance -- Evaluate based on performance -- Employee “voice” i.e. provide employees with a “voice” in the workplace -- Pay and benefits are parallel to those available in the union sector MANAGING IN A UNION ENVIRONMENT When unions are present, the human resource function is changed • Human resource department may be expanded to add labour relations specialists to deal with negotiations and contract administration • Greater centralization of employee record-keeping and discipline to ensure uniformity—managers’ authority diminishes and responsibility increases • Management has less freedom to make unilateral changes, i.e., can no longer simply decide what changes to implement LABOUR-MANAGEMENT COOPERATION There is increasing acceptance that labour and management must cooperate and work together in order to survive and prosper in the highly competitive global economy • There is growing evidence that organizational performance is enhanced when labour and management cooperate • Cooperative Methods Include: -- Prior consultation with union leaders to defuse problems before they become formal grievances -- Sincere concern for employee problems and welfare even when management is not obligated to do so by the collective agreement -- Training programs that objectively communicate the intent of union and management and reduce biases and misunderstandings -- Joint study committees that allow management and union officials to find solutions to common problems -- Third parties who can provide guidance and programs that bring union leaders and managers closer together to pursue common objectives ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. In your own words, summarize the primary objectives of unions. Unions seek to get more for their members — more money, benefits, rights, protection, and fair treatment. They do this through negotiations with management (business unionism goals) and through influencing governments at various levels (social unionism goals). 2. What distinguishes craft and industrial unions from each other? Craft unions seek to organize all workers in a geographical area who have common skills or trades. Industrial unions seek to organize all the non-management production workers that have the same employer or work location. 3. What role does a federal or provincial Labour Relations Board serve in labour-management relations? An LRB has two main functions: (1) It polices union and management labour practices that are in violation of the act; (2) It conducts employee representation elections to determine employee wishes with regard to their desire to join or remain in a union. 4. In preparing to negotiate a contract with a union, what types of information would you gather before arriving at the bargaining table? Information is needed about the environment, the economy, the inflation rate, rival union gains, and the past demands and expectations of the union. Information can be gathered from within the organization about what rights management needs to retain in order to operate the organization successfully. Knowledge of the union's status with respect to a strike also is useful. 5. If you were asked to explain why various types of people are on the employer’s bargaining team, what reasons would you give for each? (a) the company lawyer (b) the director of industrial relations (c) a wage and salary specialist (d) a benefit specialist (e) the assistant plant manager The lawyer is needed because the labour agreement is a legal document, a contract that binds the company and union to future actions. The lawyer helps assure that the contract is proper and enforceable. The director of industrial relations is usually present because that person may be the chief spokesperson for the employer and may be the only person at the table who has the authority to make binding decisions. A wage and salary specialist may be included to provide expertise on the firm's wages and salaries to help evaluate union proposals. Likewise, the benefit specialist helps evaluate the impact of changes in benefits. The assistant plant manager provides valuable information about how changes may affect the ability to manage the operations effectively. 6. Since grievance procedures are found in most contracts, both managers and unions must want them. Explain why both managers and unions want grievance procedures. Unions and management seek grievance procedures because these methods are fast and economical ways to settle disputes that arise during the life of the contract. Otherwise, strikes, lockouts, court suits, work slowdowns, and other more costly and disruptive methods might be used to resolve disputes. ANSWERS TO CRITICAL THINKING QUESTIONS 1. "Unions do not happen, they are caused by management." Do you agree or disagree with this statement? Why? Agree. Management is responsible for the work environment and with worker satisfaction within that environment. If dissatisfaction exists, management may have failed to perform correctly. Or, more sympathetically, competitive and economic forces may preclude management from providing the type of treatment workers seek. 2. If you have to advise the manager of a small chain of bakeries how to prepare for a possible strike, what would you suggest? First, the manager should assess how likely a strike is. The manager must then decide if the bakeries are going to close or operate during the strike. Based on that decision, the manager must develop plans accordingly. If the decision is made to close, vendors and customers, especially wholesale customers, should be advised and alternative sources of supply identified. If the plant is to operate, baking, counter, and delivery schedules must be developed for management and human resources to fill in for the striking workers. 3. Suppose an employee in your department is an active member of the union but is performing improperly. After several sessions with the employee, performance is still unacceptable. What type of support would you want to gather before you terminate that employee? What legal complications might result from your action? The necessary support includes detailed documentation of poor performance, records of previous counselling sessions where you attempted to guide the employee toward the desired behaviour, and any advice you could get from the labour relations department. You also want to make sure your actions are in accordance with the collective agreement. The employee might claim to a federal or provincial Labour Relations Board that your actions discriminate and interfere with collective action. 4. If you work in the human resource department of a small company that is suddenly unionized, what changes would you expect to occur in the human resource department? A labour relations section may be added to the department to coordinate relations between the employer and the union. Record keeping may become more detailed, and responsibility for discipline and other employee-related actions may be centralized in the human resource department to ensure uniformity. 5. What role do you think the federal and provincial governments will play in future labour-management relations? What actions can unions and management take to reduce the probability of future government involvement? The future role of the government is likely to be more of the same. The government-union-management framework has remained very stable for nearly a half a century. Radical changes are unlikely, although more legislation and agency decisions may further define the roles of labour and management. Agency decisions are likely to continue. New legislation is likely if and when severe abuses of power by either side are recognized. 6. Obtain copies of two different collective agreements. Compare and contrast the contract items and the grievance procedure. Answers will vary. ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. INCIDENT 13.1: A ROUTINE DISCHARGE AT ITC Incident Comments This incident helps illustrate for students how an otherwise simple discharge for what appears to be reasonable cause can create serious resentment among employees and even lead to a unionization attempt. It also underscores the problems that can arise when employees sense that a supervisor discriminates against an employee (Pete Ross) in ways that are seen by other employees as unfair. Finally, the case shows how even simple questions by a supervisor or manager can lead to unfair labour practice charges. 1. What unfair labour practices may have occurred? Although many employees may feel that Pete's discharge is illegal, employers can legally discharge workers who violate company rules about drinking. The questioning of John Briggs about his union-related activities is considered an unfair labour practice violation (interference). His discharge, if caused by his union activity, is also an unfair labour practice violation (discrimination for union activity). 2. Should management offer reinstatement to Pete Ross or John Briggs? Why? Reinstatement of Pete Ross may reduce some of the bitterness that led to the union drive. However, to do so would imply management's permission to drink on the job and would tell employees that management made an error in firing Pete, which probably was not the case. Reinstatement of John, however, is different. John was discharged illegally because of his union activity. To reinstate him now might avoid future unfair labour practices. 3. Was John correct when he answered "That is none of your business" to the questions about the authorization cards? Yes. Workers have a right to discuss unionization and seek signatures on authorization cards as long as they are not doing it when they are supposed to be working. CASE STUDY: ABSENTEEISM AT MAPLE LEAF SHOES Feltham Grievance Case: Instructors can use the Feltham grievance case as a case for discussion or as a bargaining exercise (first objective of the case). If using as a bargaining exercise (negotiation of a grievance), students should be placed on either a management or union team. While the size of the teams can vary, a team of about 3 or 4 (maximum of 6) tends to work quite well. As a short in-class exercise, it is necessary to give each team some time to prepare their strategy for bargaining and determine their roles in the exercise. At the end of the negotiation process, each pairing (union and management) report on the agreement they reached or that they were unable to resolve the issue. If a more formal approach to the case is desired, it is possible to have a pre-negotiation and / or post-negotiation report as part of the exercise. Developing an Absenteeism Policy: One approach to developing an absenteeism policy is to have the students develop the policy from a management perspective. However, if there is an interest in exposing the students to labour-management cooperation, it is possible to place students on teams (management and union) and work together to develop a policy. If management introduces the policy without union input, there is often little “buy-in” from the unionized employees. In addition, issues that may be very important to workers may be overlooked by the management side. In some instances, there is a focus on punitive measures (win / lose or power approach). Other times, the parties work together using a problem-solving approach to address the issue of absenteeism (win / win approach). CASE STUDY: LABOUR-MANAGEMENT RELATIONS: CPIB AND THE MAPLE LEAF TRUST ACQUISITION Answers to Discussion Questions 1. Assume that you are one of the two senior HRM employees assigned to examining labour relations at the credit card center. Review the above material for Mary Keddy and briefly summarize your major findings. The information shows that the majority of grievances reach the second level supervisor stage. Most of the grievances concern the issues of lateness or absenteeism, overtime allocation, and job scheduling. On average, the union response to performance is lower than that of management, particularly in the areas of employee morale and job satisfaction. Further, the union is lower than management in perceived labour climate, especially in whether grievances are settled promptly, fair working conditions, union management co-operation, and sharing of information. 2. What specific recommendations would you give Mary? Are there any programs or initiatives that you would suggest? Given that absenteeism and scheduling are the major areas of concern, a joint union-management committee should be formed to help develop policies on how to handle tardiness, absenteeism, and unfair work scheduling. Such a committee would facilitate greater sharing of information and co-operative problem solving between the two parties. This in turn, may help to improve morale among the union members. A procedure should be in place to handle all grievances that would be supervised by the joint committee. (Other responses are possible). 14 GLOBAL HUMAN RESOURCE MANAGEMENT CHAPTER OBJECTIVES After studying this chapter, you should be able to: Differentiate between the terms International HRM and Global HRM Describe the evolution of a firm’s operations and the impact on HRM Identify the external and internal contextual factors which influence global HRM Explain the differences between a firm’s domestic and global HRM policies and practices. Describe the staffing challenges facing multinational organizations and the staffing options available. Outline the elements which constitute a successful expatriate experience. Discuss the changing role of corporate HR in a global organization and emerging HR competencies. POWERPOINT® SLIDES Canadian Human Resource Management includes a complete set of Microsoft PowerPoint® files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) LECTURE OUTLINE (with PowerPoint® slides) Global Human Resource Management Slide 1 Human Resources in a Multinational Enterprise Slide 2 Corporate Evolution Slide 3 External Contextual Factors Slide 4 Internal Contextual Factors Slide 5 HR Planning and Staffing Slide 6 Key Elements Slide 7 Orientation, Training & Development Slide 8 HR IN A MULTINATIONAL ENTERPRISE • Business Ecosystem --Series of intercompany relationships • International HR Management (IHRM) --Worldwide management of talent • Global HR Management (GHRM) --Broader concept, focusing on organizational capabilities, including staffing, efficiency, information exchange, and knowledge transfer • Four Stages of Corporate Evolution --Domestic firms: focuses on domestic markets, operates locally --International firms: exports become part of the company’s objective; 3 staffing categories: parent country nationals (PCN), host country nationals (HCN), and third country nationals (TCN) --Global and Transnational Firms: have no borders and headquarters can be anywhere CONTEXTUAL FACTORS There are four External Contextual Factors: 1. Country culture: Dimensions: Assertiveness Gender differentiation Uncertainty avoidance Power distance In-group collectivism Performance orientation Humane orientation Institutional collectivism Future orientation Communication and language 2. Labour economy 3. Labour legislation 4. Immigration Policies Internal Contextual Factors 1. Commitment to Corporate Social Responsibility 2. Staffing Preferences Ethnocentrism Polycentrism Geocentrism Regiocentrism HR PLANNING & STAFFING IN A GLOBAL CONTEXT Staffing Mix • Host Country National-Local Presence • Parent Country Nationals—Integrating Global Standards • Third Country Nationals Current Trends in Staffing Global Organizations – The Assignment • International commuter • Frequent flier • Flexpatriate • Expatriate • Inpatriate KEY ELEMENTS OF A SUCCESSFUL EXPATRIATE EXPERIENCE • Travel and Relocation -- IHRM Policies -- Travel -- Relocation Policies • Administrative Processing • Candidate Selection Criteria (see Figure 14-7, p.514) • Repatriation -- Reverse culture shock ORIENTATION, TRAINING, AND DEVELOPMENT Cross-cultural Training Methods Slide 9 Performance Appraisal Slide 10 Global Compensation Slide 11 Changing Role Slide 12 Orientation: The Importance of Pre-departure Training • Cross-cultural Training Methods -- Culture Assimilators -- Critical Incidents -- Cases -- Role Play -- Simulation PERFORMANCE APPRAISAL (See Figure 14-9, p.518) • Home-country evaluation • Host-country evaluation GLOBAL COMPENSATION • Develop an overseas compensation and benefit plan • Taking into account cost of living differences • Considering any special needs • Giving tax advice and financial counselling • Supervise extensive paperwork THE CHANGING ROLE OF HR IN GLOBAL ORGANIZATIONS • Foster a Global Mindset • Managing the Talent Pipeline • Think Globally, Act Locally -- Develop and implement formal systems to improve worldwide communication -- Implement and effectively utilize an enterprise wide HRIS system -- Implement recruitment and staffing strategies to attract the best talent worldwide -- Develop policies that effectively balance equity across the global enterprise ANSWERS TO REVIEW AND DISCUSSION QUESTIONS 1. What are the four categories sued to describe the evolution of an MNE firm? 1. Domestic firms: Focus is on the domestic market, operates locally. 2.International firms: Operates internationally and often form international divisions. 3. Multinational firms: Branches in many countries, operating independently and the focus is on economics of scale. 4. Global or Transnational firms: Has no border and headquarter can be anywhere, is internationally staffed, focuses on economics of scale, and its emphasis is on flexibility and mass customization. See Figure 14-1, p.502, for more details. 2. What are the four external contextual factors that influence IHRM practices? 1. Country culture: It is important for HR staff to understand culturally diverse work ethics, norms, values, and business protocols. It is also useful to be aware of cultural dimensions like assertiveness, gender differentiation, uncertainty avoidance, power distance, in-group collectivism, performance orientation, human orientation, institutional collectivism, and future orientation. Furthermore, communication styles and body language differ significantly across cultures. 2. Labour economy: For MNE, operating in other countries means to have to cope with skill shortages in developing countries, labour costs, and labour participation rate implications. 3. Labour legislation: Each country has its own rules regarding employment standards like hours of work, rest periods, vacation, and termination provisions. 4. Immigration policies: HR staff has to be aware of immigration regulations when sending staff abroad. See p.505 for more details. 3. What are the two internal contextual factors that HR professionals must consider? 1. Commitment to corporate social responsibility: Proactive programs, showing commitment to economic, social, and environmental issues influencing its operations. 2. Staffing preferences: Ethnocentrism, polycentrism, geocentrism, and regiocentrism. 4. Mangers have a specific orientation with respect to staffing its subsidiaries. What are the preferences? Ethnocentrism (home country staff), polycentrism (host country staff under tight home country control), geocentrism (“best person can be found anywhere”), and regiocentrism (regional staff). See p.509 for more details. 5. There are advantages and disadvantages to consider when employing a HCN, PCN, and/or a TCN,. What are the reasons why a manager would choose one option vs. another? 1. Host Country National: Knows local culture and policies. 2. Parent Country National: Is familiar with local culture, but also with parent organization culture. 3. Third Country National: Is neither a citizen of the country where the headquarter is located nor a citizen of the foreign subsidiary country. They tend to have better language and cross-cultural skills than headquarter expatriates. See p.510 and on for more details. 6. A successful expatriate experience requires that the organization considers several elements. What are these elements? Travel and Relocation 1. Travel: Policies have to be in place to specify rules for travel, e.g., business class or economy section, travel allowances, and how often home visits are allowed. 2.Relocation: Is a stressful and expensive affair. Policy should focus on minimizing disruptions. Topics to be addressed: Housing, cost of living adjustments, temporary living expenses, spousal assistance, predeparture training, and setting-up services. Administrative Processing Attention to detail, payroll processing and tax arrangements, immigration assistance, spouse and dependent issues. Candidate Selection Criteria See Figure17-7, p.514. Repatriation Reintegration of expatriate into home country firm. Attention: Reverse culture shock. See p.514 for more information on repatriation. 7. International compensations can be complex. What are the various mechanisms used to compensate expatriates? 1. Pay is expanded to include additional taxes, living expenses, and personal costs 2. Supplements to cover cost of children education 3. Cost of return visits to home country 4. Special medical services 5. Benefits, e.g., company car, driver, club memberships, housing 6. Relocation assistance (e.g., buying employee’s home at market value, shipping of household goods See Figure 14-10 8. What are the key elements to be considered when designing a global performance appraisal system? See Figure 14-9, p.518 . ANSWERS TO CRITICAL THINKING QUESTIONS 1. Why would you hire a third culture kid (TCK)? They are comfortable with many different cultures and require little cross-cultural training. See p.512 for more details. 2. How useful are expatriates in transferring knowledge and skills to their home countries? Expatriates tend to have a wealth of knowledge about doing business abroad. Employed effectively in training potential international staff they can make valuable contributions to pre-departure training. See p.512 for more details. 3. What are some of the ethical issues that would arise when working in a country like China? See Spotlight on Ethics, p.508 4. What are the competencies of an international manager? See Figure 14-7, p. 514, for details 5. Why is pre-departure training so crucial? It provides cultural awareness, appreciation of foreign cultures, and develops coping mechanisms. See discussion on p.515 6. What does “Think globally, act locally” mean? When developing IHR policies, domestic practices ideally are suitable for global use. See discussion on p.521. ETHICS QUESTION Comments to Instructors There is no right or wrong answer to this question. It is for class discussion purposes. WEB RESEARCH Comments to Instructors These exercises have been designed for students to demonstrate their computer and Internet skills to research the required information. Answers will vary. INCIDENT 14.1: IS IMPORTING WORKERS FROM CHINA THE ANSWER TO MINING’S LABOUR SHORTAGE? Incident Comments This incident illustrates some of the issues associated with using foreign nationals in a local business environment. 1. Discuss the cultural impacts on the northern communities if 400 workers were hired. Bringing 400 single men into a small community would certainly be disruptive. To kill their free time, drinking would very likely be a major problem. Women may be molested and prostitution might develop. There may be resentment by locals against foreign workers taking jobs from them and there could be confrontations. On the other hand, local business may experience increased revenues and the community may learn something about a foreign culture. 2. Discuss the ethical and corporate social responsibility issues that the company is facing. Discuss the health and safety concerns as well. Bringing foreign workers to Canada raises both ethical and social questions. Companies usually say that they are unable to hire local workers for the wages offered and cite competition, which dictates wage levels. Unions will certainly resist hiring foreign labour, because it tends to depress wages. There will be arguments to spend more money on the training of local workers, especially First Nation members. Safety will be a major issue if the foreign workers do not speak the local language. Experience with immigrant workers in agriculture has shown that often they live in substandard housing. 3. Is this the answer to Dehau’s labour problems? What other staffing options might Dehau consider? Where would they find suitable labour? It is likely that importing foreign labour is a short-term solution, because of the ethical and social problems involved. Long-term answers may lie in investing in training and development of local human resources, especially First Nation members, whose unemployment rate is high. Other solutions may be recruiting mining workers from provinces with higher unemployment, like Nova Scotia, New Brunswick, and Prince Edward Island. CASE STUDY: MAPLE LEAF SHOES LTD., INTERNATIONAL EXPANSION Answers to Discussion Questions 1. Identify some of the challenges Maple Leaf will face if it were to open a plant in Mexico. What specific issues should Jane discuss in her report? Jane has to do an analysis of the host country’s labour market to find out whether suitably skilled labour is available. If not, training expenses could be substantial. Even is skilled labour is available, some training will be necessary. Who will be the supervisors and managers? It may be necessary to start with home country supervisors and managers. Should they commute in the beginning or relocate immediately? How long should they commute until a permanent solution is found? If home country nationals are send abroad, they have to be properly screened and trained cross-culturally. A cost analysis will be necessary to determine relocation expenses, i.e., shipping of household goods, cost of living, child education, tax issues. Immigration regulations have to be considered. Cross-cultural training has to be developed. Ideally, a career development plan will be created, with promotion and repatriation issues addressed. Compensation has to be considered, to provide an incentive for a job transfer. No doubt, there will be home country union resistance to exporting jobs. 2. Two positions have been identified for expatriate assignments, a manager and a supervisor. What should the selection criteria be? What specific competencies should be considered? Criteria: Technical competence, motivation, previous performance, managerial talent, independence of mind, language fluency, interpersonal skills, personality characteristics, family issues, previous oversees experience; Competencies: See Figure 14-7, p.514 3. Jane Reynolds will need to set up a performance appraisal program. She has asked you to summarize what she needs to do to ensure that the expat performance appraisal (EPA) experience is positive. Jane has to balance two sources of information: Host country and home country. While host country managers may be in a good position to observe day-to-day behaviours of the employee, the individual is likely still formally tied to the parent organization for pay, career development and other decisions. Figure 1-9 lists four steps in developing a global performance management system. 4. What actions can Jane take to demonstrate to Tim McDonald that she is a strategic thinker and understands the bottom line repercussions? For whatever recommendations she develops, a cost-benefit analysis would be essential. She has to demonstrate that she is aware the implications of any decision on the bottom line of the host country branch. Actions to be taken: Selection criteria, competencies, choice between what type of position: Commuter, frequent flyer, expatriate; pay consideration, relocation, immigration issues, training and development, career implications, repatriation; union reaction; Extension Question: Discuss the labour relation issues ML will face in Canada. The union will strenuously resist any attempt to “export” jobs to foreign countries. If this plan would result in lay-offs or even closure of a home country plant, strike actions would be very likely. Even is no jobs are lost, the action puts management in a position where it is able to put pressure on the union to lower its pay demands. There will also be repercussions on the morale, motivation, and organizational commitment of the employees. CASE STUDY: CANADIAN PACIFIC AND INTERNATIONAL BANK INTERNATIONAL EXPANSION Answers to Discussion Questions 1. What are the various staffing categories that Mary Keddy should consider? Home Country National (HCN); Parent Company National (PCN); Third Country National (TCN). See Figure 14-5, p.510/511, for discussion. 2. What are the internal and external factors that will influence how the company will proceed? See Figure 14-2, p.505; external factors: Country culture, labour economics, labour legislation, and immigration policies; internal factors: Firm’s commitment to CSR and preferences for staffing alternatives. 3. What are the implications for the IHR function as CPIB expands? See p.520 for a discussion. Managers supervising employees abroad have to have a broader perspective, because international HR issues are more complex. Even domestic HR practices, processes, and systems have to be adjusted. There are three key responsibilities for an IHRM: Think globally, act locally, foster a global mindset, and manage the talent pipeline. 4. Mary Keddy plans to offer one of her staff a promotion to lead the IHR group. She has asked you to prepare an internal job posting and to discuss the details with her prior to release. Discuss the roles and competencies expected of this position and prepare a job posting. Criteria: Technical competence, motivation, previous performance, managerial talent, independence of mind, language fluency, interpersonal skills, personality characteristics, family issues, previous oversees experience; Competencies: See Figure 14-7, p.514 An internal job posting should contain: Job title, department, posting date, posting expiry date, purpose, essential duties and responsibilities, primary interactions, internal –external – competencies, education and/or experience. The role of an IHRM is discussed on p.520. To the instructor: Below are 14 questions and answers taken from the material discussed in the CCH BusinessWorks© resource; click on the link to find the material. Students are expected to find the answers by searching the material under the headlines given in bold. Short answers are offered below the questions. Human Rights and Equity Issues Harassment in the Workplace 1. Question: How is Harassment defined? How narrow or broad is the term defined? Discuss briefly the responsibility of the employer in harassment cases and what steps should be taken (See under "Practice Tips). Answer: A detailed definition is given under "Practice Tips". The definition emphasizes that it is not only sexual harassment which falls under the term "harassment". There is also a detailed description of the employer's responsibility and what steps can be taken to avoid harassing incidents. Dealing With Disability Issues in the Workplace 2. Question: What is a Disability? Describe why it is difficult to define the term and how lawyers and tribunals deal with disability cases (see under "Practice Tips"). Answer: Different jurisdictions define disability differently and some do not provide any definition at all. Since often a definition is missing a disability issue is often decided on a case by case basis (case law) Equal Pay/Pay Equity 3. Question: What is the basis of the Equal Pay/Pay Equity issue? What are the methods used to deal with the issue? Is there a preferred method? (see under "Practice Tips") Answer: The basis for Equal Pay/Pay Equity issues is the Job Evaluation. The preferred method is the point method because it is suitable for a variety of jobs. 4. Question: What is the purpose of the Job Evaluation Committee? What is not the role of the Committee? What should be the make-up of the Committee? Answer: The ultimate objective of the Job Evaluation Committee is to establish in a fair, objective and consistent manner the relative ranking of jobs within the organization through the job evaluation process. It is not the role of the Committee to determine the rates of pay. Ideally the Committee represents all groups and levels in an organization. Labour Relations Consumer Price Indexes (CPI) 5. Question: What is the definition of the CPI? Where is it mainly used in HRM? Answer Definition — The Consumer Price Index (CPI) is an indicator of the changes in consumer prices experienced by the target population. The CPI measures price change by comparing, through time, the cost of a fixed basket of commodities. This basket is based on the expenditures of the target population in a certain reference period, currently 1996. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price movements. It is used mainly in union contracts to provide for wage adjustments based on the movement of the CPI. Benefits and Pensions Flexible Benefits and Work Practices 6. Question: What are flexible work practices and why should an employer be interested in them? How does this relate to our current family models? How can Flexible Benefits and Work Practices be utilized to attract and retain employees? Answer: Benefits and accommodation are tools that employers use to attract employees from a large pool, an important fact to consider as the overall available labour force diminishes. Today's family bears little resemblance to the traditional family of a few decades ago. There are four broad areas of activity for employers to attract and retain employees:: • Alternative Work Arrangements • Benefits • Support Programs • Health Programs New Family Models Step families Interfaith Single parent families Same sex partners Mixed races Common-law Dual income Foster families Extended families Grand parents raising grandchildren Interethnic Immigrant families Employment Health and Safety Guide 7. Question: Federal and provincial laws specify general and specific duties for employers to protect the health and safety of their workers. Discus the differences. Answer: General Duties: Across Canada, employers have a general legal duty to protect the health and safety of their workers. General duties are all encompassing duties and cover situations that are not contemplated by the specific provisions in the Acts and regulations. Some examples of general duties include: • protecting the safety, health and welfare of workers insofar as is reasonably practicable; • complying with the legislation; • ensuring that workers comply with the legislation and any orders made under the legislation. Specific Duties: In addition to the employer's general duty to protect worker safety, employers also have specific legal duties under the occupational health and safety Acts and regulations. Specific legal duties deal with the specific measures that employers must take to ensure the health and safety of their workers. Examples of specific duties include: • maintaining the workplace in such a way that the health and safety of workers is not likely to be endangered; • providing workers with information, instruction, training, and supervision; • informing workers of known or foreseeable health and safety hazards; providing appropriate safety equipment for workers, and ensuring that they use it; • consulting and cooperating with the health and safety committee or representative; and • cooperating with persons exercising a duty under the legislation (such as government health and safety inspectors). In the Workplace or Outside the Workplace? 8. Question: What is the definition of "workplace"? Can it also be outside the traditional work premise? Answer: In most jurisdictions, the occupational health and safety Acts limit the employer's duty to protect its workers' safety to the time when the workers are actually at the workplace. The term workplace, even under the broadest definition, never includes anything more than the physical premises where work is actually performed. Presumably, this would mean that an employer is not responsible for the health and safety of its employees when they are not at the workplace and, for instance, on their way to and from work. A decision of the British Columbia Supreme Court (Jacobsen v. Nike Canada Ltd., February 22, 1996), however, demonstrates that, at least in some cases, an employer can actually be held responsible for accidents that occur outside of the workplace. In that case, a worker was provided with beer by his supervisors. Despite the fact that he subsequently became inebriated, neither of his supervisors tried to prevent him from driving home after his shift. He crashed his car and sustained serious injuries. The employer was found to be 75% liable. The Court held that by providing alcohol, not monitoring the worker's consumption, and taking no steps to ensure that he did not drive while impaired, the employer failed to meet the standard of care required of an employer. The employer has a duty to keep out of the workplace any reasonably foreseeable conditions that could endanger the worker. Essentially, however, the employer had made drinking and driving a part of the working conditions that day. Work Place Equity Guide Equal Pay and Pay Equity 9. Question What is the difference between Equal Pay legislation and Pay Equity legislation? Which governments (federal/provincial) have Equal Pay laws? Which have Pay Equity laws? Answer: All jurisdictions in Canada have some form of equal pay legislation designed to ensure that men and women are paid the same wage if they are performing the same, or substantially similar work. A number of jurisdictions have pay equity legislation. The federal pay equity legislation is enforced on the human rights model, meaning that it is reactive and complaints-based. All other jurisdictions with pay equity legislation require employers to take proactive steps to discover and remove pay inequities in their organizations. In addition to the federal legislation, pay equity legislation exists in Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Quebec. Of these, Manitoba, New Brunswick, Nova Scotia and Prince Edward Island only require pay equity in the public sector, not the private sector. Ontario and Quebec and the federal jurisdiction require pay equity to be implemented by both public and private sector employers. Employment Equity 10. Question Which governments have Employment Equity legislation? How is Employment Equity supported in provinces without EE laws? Answer: Currently, only the federal government and Quebec have mandatory employment equity legislation. Ontario's employment equity legislation, which came into force in September 1994, was repealed in December 1995. The federal government and Quebec also have contract compliance programs. Provisions in the Canadian Charter of Rights and Freedoms and the provincial human rights statutes explicitly permit voluntary employment equity initiatives. A number of provinces provide voluntary supports to employment equity initiatives. For example, Ontario has outlined a seven-point Equal Opportunity Plan focussed on barrier removal. The requirements of these various programs are discussed in detail in the Employment Equity tab division. 11. Question What is discrimination? Why should an employer be concerned about discrimination in employment? Answer: Discrimination is simply the act of setting up, or acting upon, perceived distinctions or differences. As such, we are all discriminating all of the time in order to make our decisions: is this a good book, or a bad book? is this a useful computer program, or not a useful one? is this a qualified candidate for a job, or not a qualified candidate? The problem arises when the differences or distinctions which we are acting upon are irrelevant, or are based on stereotypes which have little or no basis in fact. This is particularly serious when we are making decisions about some of the fundamental requirements of human existence, such as housing, access to education, or employment. In these cases, our distinctions between various people, if not made fairly and accurately, can place heavy burdens on certain groups of people. 12. Question: If behaviour is unintentional, will it still be considered discrimination? Answer: Unintentional behaviour can still be considered discriminatory. It is the effect of an action, and not the intention behind it, which determines whether an action is discriminatory. For example, in barring women from certain jobs in which chemicals are used which could be harmful to fetuses, an employer may not be intending to discriminate, but only to deal with health and safety concerns. However, the effect of the action is to discriminate against women, preventing them from obtaining certain types of jobs. The discrimination is unintentional, but it is still discrimination. 13. Question What does the term “Systemic Discrimination” mean? Discuss the term and how it can be dealt with. Answer: Some types of discrimination are direct, where a person consciously acts on a distinction between certain groups. For example, a rule that no women could be police officers would be direct discrimination. On the other hand, sometimes policies and practices which appear neutral on their surface actually have the effect of discriminating against certain groups. For example, a rule which requires all police officers to be over six feet tall and weigh over 150 pounds would have the effect of barring almost all women from becoming police officers, even though no prohibition is directly stated. This is systemic discrimination. Usually systemic discrimination is unintentional. Employment policies and practices often operate for many years without being reexamined to determine whether they are still valid and relevant to the performance of the job. This is why systemic discrimination is difficult to eradicate; most people are unaware that it is even occurring. Special attention to discrimination issues and training can reduce or avoid systemic discrimination. 14. Question: What Is Undue Hardship? Discuss. Answer: Generally speaking, in considering whether a particular accommodation would cause an undue hardship for an employer, human rights bodies will consider: 1. Cost: Considerations in determining whether the cost of accommodating an employee will amount to undue hardship include: • the size and financial resources of the employer; • whether costs are immediate or can be phased-in over time; • whether costs may be recovered through grants, subsidies, or tax deductions. 2. Health and Safety Issues: Considerations in determining whether health and safety issues amount to undue hardship include: • whether the risk is greater than those normally tolerated on the job; • whether the risk will be borne by the employee requiring accommodation, by co-workers, or by the general public; • if the risk is to be borne by the employee requiring accommodation, the willingness of the employee to assume the risk. To the instructor: Below are 14 questions and answers taken from the material discussed in the CCH BusinessWorks© resource; click on the link to find the material. Students are expected to find the answers by searching the material under the headlines given in bold. Short answers are offered below the questions. Human Rights and Equity Issues Harassment in the Workplace 1. Question: How is Harassment defined? How narrow or broad is the term defined? Discuss briefly the responsibility of the employer in harassment cases and what steps should be taken (See under "Practice Tips). Answer: A detailed definition is given under "Practice Tips". The definition emphasizes that it is not only sexual harassment which falls under the term "harassment". There is also a detailed description of the employer's responsibility and what steps can be taken to avoid harassing incidents. Dealing With Disability Issues in the Workplace 2. Question: What is a Disability? Describe why it is difficult to define the term and how lawyers and tribunals deal with disability cases (see under "Practice Tips"). Answer: Different jurisdictions define disability differently and some do not provide any definition at all. Since often a definition is missing a disability issue is often decided on a case by case basis (case law) Equal Pay/Pay Equity 3. Question: What is the basis of the Equal Pay/Pay Equity issue? What are the methods used to deal with the issue? Is there a preferred method? (see under "Practice Tips") Answer: The basis for Equal Pay/Pay Equity issues is the Job Evaluation. The preferred method is the point method because it is suitable for a variety of jobs. 4. Question: What is the purpose of the Job Evaluation Committee? What is not the role of the Committee? What should be the make-up of the Committee? Answer: The ultimate objective of the Job Evaluation Committee is to establish in a fair, objective and consistent manner the relative ranking of jobs within the organization through the job evaluation process. It is not the role of the Committee to determine the rates of pay. Ideally the Committee represents all groups and levels in an organization. Labour Relations Consumer Price Indexes (CPI) 5. Question: What is the definition of the CPI? Where is it mainly used in HRM? Answer Definition — The Consumer Price Index (CPI) is an indicator of the changes in consumer prices experienced by the target population. The CPI measures price change by comparing, through time, the cost of a fixed basket of commodities. This basket is based on the expenditures of the target population in a certain reference period, currently 1996. Since the basket contains commodities of unchanging or equivalent quantity and quality, the index reflects only pure price movements. It is used mainly in union contracts to provide for wage adjustments based on the movement of the CPI. Benefits and Pensions Flexible Benefits and Work Practices 6. Question: What are flexible work practices and why should an employer be interested in them? How does this relate to our current family models? How can Flexible Benefits and Work Practices be utilized to attract and retain employees? Answer: Benefits and accommodation are tools that employers use to attract employees from a large pool, an important fact to consider as the overall available labour force diminishes. Today's family bears little resemblance to the traditional family of a few decades ago. There are four broad areas of activity for employers to attract and retain employees:: • Alternative Work Arrangements • Benefits • Support Programs • Health Programs New Family Models Step families Interfaith Single parent families Same sex partners Mixed races Common-law Dual income Foster families Extended families Grand parents raising grandchildren Interethnic Immigrant families Employment Health and Safety Guide 7. Question: Federal and provincial laws specify general and specific duties for employers to protect the health and safety of their workers. Discus the differences. Answer: General Duties: Across Canada, employers have a general legal duty to protect the health and safety of their workers. General duties are all encompassing duties and cover situations that are not contemplated by the specific provisions in the Acts and regulations. Some examples of general duties include: • protecting the safety, health and welfare of workers insofar as is reasonably practicable; • complying with the legislation; • ensuring that workers comply with the legislation and any orders made under the legislation. Specific Duties: In addition to the employer's general duty to protect worker safety, employers also have specific legal duties under the occupational health and safety Acts and regulations. Specific legal duties deal with the specific measures that employers must take to ensure the health and safety of their workers. Examples of specific duties include: • maintaining the workplace in such a way that the health and safety of workers is not likely to be endangered; • providing workers with information, instruction, training, and supervision; • informing workers of known or foreseeable health and safety hazards; providing appropriate safety equipment for workers, and ensuring that they use it; • consulting and cooperating with the health and safety committee or representative; and • cooperating with persons exercising a duty under the legislation (such as government health and safety inspectors). In the Workplace or Outside the Workplace? 8. Question: What is the definition of "workplace"? Can it also be outside the traditional work premise? Answer: In most jurisdictions, the occupational health and safety Acts limit the employer's duty to protect its workers' safety to the time when the workers are actually at the workplace. The term workplace, even under the broadest definition, never includes anything more than the physical premises where work is actually performed. Presumably, this would mean that an employer is not responsible for the health and safety of its employees when they are not at the workplace and, for instance, on their way to and from work. A decision of the British Columbia Supreme Court (Jacobsen v. Nike Canada Ltd., February 22, 1996), however, demonstrates that, at least in some cases, an employer can actually be held responsible for accidents that occur outside of the workplace. In that case, a worker was provided with beer by his supervisors. Despite the fact that he subsequently became inebriated, neither of his supervisors tried to prevent him from driving home after his shift. He crashed his car and sustained serious injuries. The employer was found to be 75% liable. The Court held that by providing alcohol, not monitoring the worker's consumption, and taking no steps to ensure that he did not drive while impaired, the employer failed to meet the standard of care required of an employer. The employer has a duty to keep out of the workplace any reasonably foreseeable conditions that could endanger the worker. Essentially, however, the employer had made drinking and driving a part of the working conditions that day. Work Place Equity Guide Equal Pay and Pay Equity 9. Question What is the difference between Equal Pay legislation and Pay Equity legislation? Which governments (federal/provincial) have Equal Pay laws? Which have Pay Equity laws? Answer: All jurisdictions in Canada have some form of equal pay legislation designed to ensure that men and women are paid the same wage if they are performing the same, or substantially similar work. A number of jurisdictions have pay equity legislation. The federal pay equity legislation is enforced on the human rights model, meaning that it is reactive and complaints-based. All other jurisdictions with pay equity legislation require employers to take proactive steps to discover and remove pay inequities in their organizations. In addition to the federal legislation, pay equity legislation exists in Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Quebec. Of these, Manitoba, New Brunswick, Nova Scotia and Prince Edward Island only require pay equity in the public sector, not the private sector. Ontario and Quebec and the federal jurisdiction require pay equity to be implemented by both public and private sector employers. Employment Equity 10. Question Which governments have Employment Equity legislation? How is Employment Equity supported in provinces without EE laws? Answer: Currently, only the federal government and Quebec have mandatory employment equity legislation. Ontario's employment equity legislation, which came into force in September 1994, was repealed in December 1995. The federal government and Quebec also have contract compliance programs. Provisions in the Canadian Charter of Rights and Freedoms and the provincial human rights statutes explicitly permit voluntary employment equity initiatives. A number of provinces provide voluntary supports to employment equity initiatives. For example, Ontario has outlined a seven-point Equal Opportunity Plan focussed on barrier removal. The requirements of these various programs are discussed in detail in the Employment Equity tab division. 11. Question What is discrimination? Why should an employer be concerned about discrimination in employment? Answer: Discrimination is simply the act of setting up, or acting upon, perceived distinctions or differences. As such, we are all discriminating all of the time in order to make our decisions: is this a good book, or a bad book? is this a useful computer program, or not a useful one? is this a qualified candidate for a job, or not a qualified candidate? The problem arises when the differences or distinctions which we are acting upon are irrelevant, or are based on stereotypes which have little or no basis in fact. This is particularly serious when we are making decisions about some of the fundamental requirements of human existence, such as housing, access to education, or employment. In these cases, our distinctions between various people, if not made fairly and accurately, can place heavy burdens on certain groups of people. 12. Question: If behaviour is unintentional, will it still be considered discrimination? Answer: Unintentional behaviour can still be considered discriminatory. It is the effect of an action, and not the intention behind it, which determines whether an action is discriminatory. For example, in barring women from certain jobs in which chemicals are used which could be harmful to fetuses, an employer may not be intending to discriminate, but only to deal with health and safety concerns. However, the effect of the action is to discriminate against women, preventing them from obtaining certain types of jobs. The discrimination is unintentional, but it is still discrimination. 13. Question What does the term “Systemic Discrimination” mean? Discuss the term and how it can be dealt with. Answer: Some types of discrimination are direct, where a person consciously acts on a distinction between certain groups. For example, a rule that no women could be police officers would be direct discrimination. On the other hand, sometimes policies and practices which appear neutral on their surface actually have the effect of discriminating against certain groups. For example, a rule which requires all police officers to be over six feet tall and weigh over 150 pounds would have the effect of barring almost all women from becoming police officers, even though no prohibition is directly stated. This is systemic discrimination. Usually systemic discrimination is unintentional. Employment policies and practices often operate for many years without being reexamined to determine whether they are still valid and relevant to the performance of the job. This is why systemic discrimination is difficult to eradicate; most people are unaware that it is even occurring. Special attention to discrimination issues and training can reduce or avoid systemic discrimination. 14. Question: What Is Undue Hardship? Discuss. Answer: Generally speaking, in considering whether a particular accommodation would cause an undue hardship for an employer, human rights bodies will consider: 1. Cost: Considerations in determining whether the cost of accommodating an employee will amount to undue hardship include: • the size and financial resources of the employer; • whether costs are immediate or can be phased-in over time; • whether costs may be recovered through grants, subsidies, or tax deductions. 2. Health and Safety Issues: Considerations in determining whether health and safety issues amount to undue hardship include: • whether the risk is greater than those normally tolerated on the job; • whether the risk will be borne by the employee requiring accommodation, by co-workers, or by the general public; • if the risk is to be borne by the employee requiring accommodation, the willingness of the employee to assume the risk. Solution Manual for Canadian Human Resource Management: A Strategic Approach Hermann F. Schwind, Hari Das, Terry H. Wagar, Neil Fassina, Julie Bulmash 9780071051552, 9781259066665