CAW shelves right to strike
TheStar.com - Business - CAW shelves right to strike
Magna and auto workers aim to build a new management-union relationship
October 16, 2007 Tony Van Alphen Business Reporter
Employees at Magna International who vote to join the Canadian Auto Workers won't have the right to strike under a historic labour relations deal.
In a dramatic change regarding fundamental labour rights, the CAW confirmed yesterday it has agreed to shelve the key strike provision in efforts to build a new management-union relationship at Magna, the country's biggest auto parts maker.
Under the agreement, about 18,000 workers at 45 Magna plants, predominantly in southern Ontario, will have the opportunity at each operation to decide on union representation by voting in favour or against a tentative three-year contract.
CAW president Buzz Hargrove and Magna chair Frank Stronach signed their "framework of fairness" agreement that sets out a process for major changes in traditional union-management relations on the shop floor, including resolution of disputes.
"It's an innovative approach and an opportunity for us, using this model, to try to show the country and the world that you can deal in labour management relations in a different manner, where you don't start out with a fight over whether or not the workers are entitled to have a union," CAW president Buzz Hargrove said at the company's headquarters in Aurora.
Stronach, who founded Magna five decades ago, initiated the idea more than two years ago in an effort to improve the competitive position of the company and the auto industry, which is losing business and jobs to offshore competition.
He told reporters that companies and unions have to build trust so everyone can prosper.
"We have yet a ways to go to really get the respect of the employees," Stronach acknowledged. "You know we're not afraid of labour organizations. I have disagreed with some of the philosophies of the union. But at the same time we all have to change. Business has to change. Unions have to change."
The CAW said the deal gives the union a major opportunity to gain members in the struggling auto sector where its clout has dropped during the past two decades. Despite organizing attempts, the union represents only about 1,000 workers at three Magna plants.
The agreement contemplates an overhaul of traditional bargaining processes, grievance procedures and representation on the shop floor.
If workers vote in favour of the CAW and the contract at their plant, any subsequent collective bargaining disputes would be resolved through binding arbitration rather than a walkout by the union or a lockout by the company.
The fundamental right to withdraw labour is a provision that unions have protected vigorously for decades as its only ultimate power against management.
Don Walker, Magna's co-chief executive officer, stressed the agreement won't drive up company costs. Without the no-strike provision, Magna wouldn't win as much business, he said. "This is a core fundamental issue."
But the CAW's decision to give up the right to strike triggered criticism from other labour leaders.
"It's a pretty drastic measure and ultimately is not good for workers because they no longer have the right to withdraw their labour," said Wayne Samuelson, president of the Ontario Federation of Labour.
"It's pretty fundamental to the labour movement and collective bargaining. This is not good, especially if it's exchanged for voluntary recognition of the union. It certainly sets a precedent that working people need to be concerned about."
"Hargrove is creating CAW-employer associations," added Wayne Fraser, Ontario-Atlantic director of the United Steelworkers. "What's to stop other employers, especially Magna competitors, from rightfully asking the CAW for the same no-strike right."
Hargrove said it wouldn't be possible for other auto-parts companies with a union to demand the same provision. However, a non-union employer could get a similar arrangement, he said. "Invite us in."
If workers support a first contract, they would need to pay union dues of two hours and 20 minutes of pay each month. For example, a worker earning $14 an hour would pay about $32 a month.
Hargrove said he's received broad support for the agreement from CAW leaders, including officials in the auto-parts sector. "I wouldn't go down this road if it was going to divide the union in any shape or form," he said in an interview.
Under the deal, a joint "employee relations review committee" of three Magna representatives and three top CAW officials will discuss overall goals and projects and negotiate a national agreement covering wages, shift premiums, benefits and retirement programs. There would be some alterations to the deal reflecting local conditions.
Magna currently pays workers the average of the industry and other plants in the community. It also has a profit-sharing program.
In the new agreement, each plant will have an "employee advocate" to raise concerns. The company and union will screen candidates; workers will ratify the selection.
Critics question whether workers will have real power to elect the advocate and union representatives on the main review committee that negotiates contracts.
The two sides have also agreed to change the traditional grievance procedure with a "concern resolution process" that is more efficient, less costly and fairer. It involves an "open door" policy to deal with complaints and issues with superiors and safety officials, use of the Magna central "hotline" and review by the employee relations committee and an arbitrator if necessary.
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