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Bargaining structure in a decade of environmental change : the case of the B.C. forest products industry 1989

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BARGAINING STRUCTURE IN A DECADE OF ENVIRONMENTAL CHANGE t THE CASE OF THE B.C. FOREST PRODUCTS INDUSTRY by Ann C. F r o s t B.Comm., U n i v e r s i t y of B r i t i s h Columbia, 1987 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE i n THE FACULTY OF GRADUATE STUDIES Department of Commerce and Business A d m i n i s t r a t i o n We accept t h i s t h e s i s as conforming to the r e q u i r e d standard THE UNIVERSITY OF BRITISH COLUMBIA December 1989 Ann C. F r o s t , 1989 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department of CjyrTVinVACt' The University of British Columbia Vancouver, Canada DE-6 (2/88) ABSTRACT The f o r e s t p r o d u c t s i n d u s t r y i s a major p a r t o f B r i t i s h C o l u m b i a ' s economy, e m p l o y i n g d i r e c t l y or i n d i r e c t l y a bout t w e n t y p e r c e n t o f t h e p r o v i n c e ' s w o r k f o r c e ; and a c c o u n t i n g f o r a s i g n i f i c a n t p e r c e n t a g e o f t h e p r o v i n c e ' s e x p o r t s and government r e v e n u e s . H i s t o r i c a l l y , t h e i n d u s t r y has been c h a r a c t e r i z e d by h i g h l y c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s and f o r m a l p a t t e r n b a r g a i n i n g between t h e two r e g i o n s , t h e I n t e r i o r and t h e C o a s t , and between t h e two main i n d u s t r y s e c t o r s , p u l p and p a p e r and s o l i d wood. R e c e n t e n v i r o n m e n t a l c h a n g es however, have put c o n s i d e r a b l e p r e s s u r e on t h e c u r r e n t s y s t e m . Because of t h e s e changes e m p l o y e r s now d e s i r e l e s s c e n t r a l i z e d s t r u c t u r e s and more l o c a l c o n t r o l o v e r t e r m s of t h e c o l l e c t i v e a g reement. P r e s s u r e s f o r d e c e n t r a l i z a t i o n have r e s u l t e d from a c o m b i n a t i o n o f w o r l d wide t r e n d s and i n d u s t r y s p e c i f i c c h a n g e s . The g l o b a l i z a t i o n of m a r k e t s , i n c r e a s e d v o l a t i l i t y o f c u r r e n c y exchange r a t e s , and t h e i n c r e a s i n g r a t e o f t e c h n o l o g i c a l change a r e examples of t h e f o r m e r . I n d u s t r y s p e c i f i c c hanges i n c l u d e t h e d i v e r s i f i c a t i o n o f p r o d u c t s and m a r k e t s between r e g i o n s and f i r m s , and two major l a b o u r d i s p u t e s i n t h e 1980s. These changes however, have had l i t t l e e f f e c t upon b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y . Some changes have o c c u r r e d , but t o d a t e t h e y have not been s i g n i f i c a n t . E m p l o y e r s i n t h e p r o v i n c e ' s p u l p and p a p e r s e c t o r d e a c c r e d i t e d t h e i r e m p l o y e r b a r g a i n i n g a s s o c i a t i o n i n March 1985. D e s p i t e t h i s c h a n g e, b a r g a i n i n g i n t h e l a s t two r o u n d s has been done j o i n t l y , as i t has been done f o r t h e p a s t f o u r d e c a d e s . The s e c o n d change n o t e d i s t h e s e v e r i n g o f t i e s between t h e P u l p Bureau and FIR, t h e C o a s t a l s o l i d wood empl o y e r a s s o c i a t i o n . P r e v i o u s l y o v e r s e e n by a common C h a i r m a n , t h e s e two b o d i e s a r e now run i n d e p e n d e n t l y t o e n c o u r a g e t h e s e p a r a t i o n o f b a r g a i n i n g outcomes i n t h e two s e c t o r s . The f i n a l change o f n o t e i s t h e r o l e r e v e r s a l between t h e p u l p u n i o n s and t h e IWA. F o r many y e a r s i t was t h e IWA who n e g o t i a t e d what would become the i n d u s t r y wide s e t t l e m e n t . In t h e l a s t two r o u n d s of n e g o t i a t i o n s , however* t h e p u l p u n i o n s have s e t t l e d f i r s t . D e s p i t e what a p p e a r t o be s i g n i f i c a n t e n v i r o n m e n t a l c h a n g e s * t h e r e has been r e l a t i v e l y l i t t l e change i n b a r g a i n i n g i n t h i s i n d u s t r y . C l e a r l y t h e r e a r e f o r c e s i n t h e i n d u s t r y ' s i n d u s t r i a l r e l a t i o n s s y s t e m t h a t a r e p r e s e r v i n g t h e s t a t u s quo. S e v e r a l o r g a n i z a t i o n a l f o r c e s and one e n v i r o n m e n t a l f o r c e a r e i d e n t i f i e d which a r e p r e v e n t i n g change i n i n d u s t r y b a r g a i n i n g s t r u c t u r e s . O r g a n i z a t i o n a l f o r c e s i n c l u d e t h i r d p a r t y p r e s s u r e s ( s p e c i f i c a l l y t h r e a t s of government i n t e r v e n t i o n ) , i n d u s t r y t r a d i t i o n and p a s t p r a c t i c e , and t h e u n i o n s ' a b i l i t y t o r e s i s t u n i l a t e r a l c hanges i n b a r g a i n i n g . The e n v i r o n m e n t a l f o r c e p r e v e n t i n g e m p l o y e r s from f o r c i n g change i n i n d u s t r y b a r g a i n i n g s t r u c t u r e i s t h e economic h e a l t h of p r o d u c t m a r k e t s i n t h e two s e c t o r s . Not u n t i l t h e p r e s s u r e s f o r change a r e g r e a t enough t o overcome t h e s e i n e r t i a l o r g a n i z a t i o n a l f o r c e s w i l l s i g n i f i c a n t change o c c u r i v i n t h e b a r g a i n i n g s t r u c t u r e and p a t t e r n s o f t h e B.C. f o r e s t p r o d u c t s i n d u s t r y . V TABLE OF CONTENTS A b s t r a c t i i L i s t o f T a b l e s v i i i L i s t o f F i g u r e s i x A c k n o w l e d g e m e n t x C h a p t e r One I n t r o d u c t i o n 1 C h a p t e r Two L i t e r a t u r e R e v i e w I . I n t r o d u c t i o n 13 A. B a r g a i n i n g S t r u c t u r e D e f i n e d 13 B. T y pes o f B a r g a i n i n g S t r u c t u r e 17 I I . T h e o r e t i c a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e 19 A. The I s s u e o f Power 19 B. E n v i r o n m e n t a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e 19 C. O r g a n i z a t i o n a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e 24 I I I . E m p i r i c a l E v i d e n c e 26 A. S t a t i s t i c a l A n a l y s e s 26 B. B r i t i s h C o l u m b i a Case S t u d i e s 29 I V . Summary and C o n c l u s i o n 37 C h a p t e r T h r e e The I n d u s t r i a l R e l a t i o n s E n v i r o n m e n t o f t h e B.C. F o r e s t P r o d u c t s I n d u s t r y I . I n t r o d u c t i o n 40 I I . The E c o n o m i c E n v i r o n m e n t 41 A. A D e s c r i p t i o n o f t h e I n d u s t r y 41 B. The Dependence o f B.C. on t h e F o r e s t P r o d u c t s I n d u s t r y 43 I I I . The C o m p e t i t i v e E n v i r o n m e n t 45 A. I n d u s t r y S t r u c t u r e 45 B. D e g ree o f C o m p e t i t i o n - T i m b e r and P r o d u c t M a r k e t s 53 I V . The P o l i t i c a l E n v i r o n m e n t 54 A. L a b o u r R e l a t i o n s C l i m a t e 54 B. Government I n t e r v e n t i o n i n F o r e s t P r o d u c t s I n d u s t r y I n d u s t r i a l R e l a t i o n s 57 v i V. The L e g a l E n v i r o n m e n t 61 A. L a b o u r L e g i s l a t i o n i n B r i t i s h C o l u m b i a 61 B. R e g a r d i n g A c c r e d i t a t i o n o f E m p l o y e r A s s o c i a t i o n s 61 C. R e g a r d i n g P i c k e t i n g 68 V I . Summary and C o n c l u s i o n 74 C h a p t e r F o u r The I n d u s t r i a l R e l a t i o n s A c t o r s and T h e i r B a r g a i n i n g S t r u c t u r e P r e f e r e n c e s i n t h e P r e - 1 9 8 0 s E n v i r o n m e n t I . I n t r o d u c t i o n 77 I I . The U n i o n s 78 A. The IWA 78 B. The P u l p U n i o n s : t h e PPWC and t h e CPU 80 C. The U n i o n s ' B a r g a i n i n g R e l a t i o n s h i p s 83 I I I . The E m p l o y e r A s s o c i a t i o n s 85 A. FIR 86 B. CONIFER 88 C. PPIRB 89 D. T h e i r B a r g a i n i n g R e l a t i o n s h i p s 90 I V . The T r a d i t i o n a l S t r u c t u r e o f B a r g a i n i n g i n B.C.'s F o r e s t P r o d u c t s I n d u s t r y and t h e A d v a n t a g e s t o t h e P a r t i e s 93 A. The Move f r o m A s s o c i a t i o n Wide t o I n d u s t r y Wide B a r g a i n i n g 93 B. A d v a n t a g e s t o E m p l o y e r s 95 C. A d v a n t a g e s t o t h e U n i o n s 97 D. R e a s o n s f o r t h e S u c c e s s o f A s s o c i a t i o n B a r g a i n i n g 98 V. Summary and C o n c l u s i o n 99 C h a p t e r F i v e E n v i r o n m e n t a l Changes A f f e c t i n g B a r g a i n i n g S t r u c t u r e i n B.C.'s F o r e s t P r o d u c t s I n d u s t r y I . I n t r o d u c t i o n 101 I I . W o r l d Wide E n v i r o n m e n t a l Change 102 A. The G l o b a l i z a t i o n o f M a r k e t s and I n c r e a s i n g I n t e r n a t i o n a l C o m p e t i t i o n 102 B. F l u c t u a t i o n i n E x c h a n g e R a t e s 104 C. Changes i n T e c h n o l o g y 105 D. R e c e s s i o n i n t h e E a r l y 1980s 108 I I I . I n d u s t r y S p e c i f i c Changes 110 A. Changes i n P r o d u c t M a r k e t s 110 v i i B. D i v e r g e n c e o f Lumber and P u l p M a r k e t s 112 C. L a b o u r D i s p u t e s 114 IV. The R e s u l t s o f E n v i r o n m e n t a l Change - S h i f t s i n B a r g a i n i n g S t r u c t u r e P r e f e r e n c e s 118 A. The Need f o r F l e x i b i l i t y 119 B. D i v e r g i n g E m p l o y e r I n t e r e s t s 121 C. The U n i o n s ' P r e f e r e n c e s 123 V. Summary and C o n c l u s i o n 124 C h a p t e r S i x F a c t o r s I n h i b i t i n g Changes i n B a r g a i n i n g S t r u c t u r e i n B.C.'s F o r e s t P r o d u c t s I n d u s t r y I . I n t r o d u c t i o n 126 I I . Changes T h a t Have O c c u r r e d t o Date 127 A. Changes i n F o r m a l S t r u c t u r e 127 B. Changes i n I n f o r m a l S t r u c t u r e 129 C. Changes i n P a t t e r n B a r g a i n i n g 130 I I I . R e a s o n s F o r L i t t l e Change 132 A. The R e l a t i o n s h i p Between E n v i r o n m e n t a l and O r g a n i z a t i o n a l F o r c e s i n t h e B.C. F o r e s t P r o d u c t s I n d u s t r y 132 B. I n d u s t r y T r a d i t i o n 134 C. U n i o n S t r e n g t h and A b i l i t y t o R e s i s t S i g n i f i c a n t Changes 137 D. P r e s s u r e s From T h i r d P a r t i e s 140 E. B u o y a n t P r o d u c t M a r k e t s 141 IV. F u t u r e P r o g n o s i s 143 A. I n t r o d u c t i o n 143 B. O p t i m i s t i c S c e n a r i o 143 C. P e s s i m i s t i c S c e n a r i o 145 V. Summary and C o n c l u s i o n 147 C h a p t e r S e v e n R e c o m m e n d a t i o n s f o r F u t u r e R e s e a r c h I . I n t r o d u c t i o n 149 I I . R e c o m m e n d a t i o n s 150 I I I . Summary and C o n c l u s i o n 153 R e f e r e n c e s 154 v i i i L I S T OF TABLES T a b l e I t B.C. B a r g a i n i n g S t r u c t u r e 4 T a b l e l i t C u r r e n t E m p l o y e r A s s o c i a t i o n s 5 T a b l e I I I : D e a c c r e d i t e d E m p l o y e r B a r g a i n i n g A s s o c i a t i o n s 7 T a b l e I V : Lumber P r o d u c t i o n - C o a s t and I n t e r i o r 46 T a b l e V: B.C.'s Top Ten Lumber P r o d u c e r s 51 T a b l e V I : B.C.'s P u l p and P a p e r P r o d u c e r s 52 T a b l e V I I : L a b o u r D i s p u t e s i n B.C. 1958-1985 56 i x L I ST OF FIGURES F i g u r e 1: B a r g a i n i n g S t r u c t u r e and t h e C o l l e c t i v e B a r g a i n i n g System 16 X ACKNOWLEDGEMENT I w o u l d l i k e t o t h a n k P r o f e s s o r L e s l i e Nay f o r h e r g u i d a n c e t h r o u g h o u t t h i s p r o j e c t . A p r o j e c t s u c h as t h i s i s d i f f i c u l t enough t o s u p e r v i s e a t t h e b e s t o f t i m e s . I t has been made even more d i f f i c u l t by t h e d i s t a n c e s e p a r a t i n g us o v e r t h e p a s t few m o nths. W i t h o u t h e r h e l p t h i s p a p e r w o u l d n o t have been c o m p l e t e d as e a s i l y n o r as q u i c k l y . Her s u g g e s t i o n s , c r i t i c i s m s , and a d v i c e were a l w a y s u s e f u l and v e r y much a p p r e c i a t e d . I am a l s o i n d e b t e d t o t h e r e p r e s e n t a t i v e s o f t h e u n i o n s and e m p l o y e r a s s o c i a t i o n s t h a t a r e t h e s u b j e c t o f t h i s work. Len Snow o f t h e PPWC, B r i a n Payne o f t h e CPU, and J a c k Munro o f t h e IWA-Canada were k i n d enough t o g r a n t me p e r s o n a l i n t e r v i e w s . K e i t h B e n n e t t o f F I R , and E r i c M i t t e r n d o r f e r o f P P I R B , were a l s o g e n e r o u s w i t h t h e i r t i m e i n a l l o w i n g me t o g a t h e r t h e i n f o r m a t i o n I n e eded t o c o m p l e t e t h i s p r o j e c t . My t h a n k s go a l s o t o Dave G u n d e r s o n o f CONIFER who s p o k e w i t h me by t e l e p h o n e f r o m P r i n c e G e orge a b o u t t h e h i s t o r y and c u r r e n t m e m b ership o f t h e a s s o c i a t i o n he h e a d s . I w o u l d l i k e t o r e c o g n i z e e a c h o f t h e s e men f o r t h e t i m e t h e y gave t o me and f o r t h e c a n d o r o f t h e i r r e s p o n s e s t o my q u e s t i o n s . F i n a l l y I w o u l d l i k e t o t h a n k Tony F r o s t , my h u s b a n d , f o r h i s t i r e l e s s p r o o f r e a d i n g and h i s m o r a l s u p p o r t t h r o u g h o u t t h e months o f t h i s p r o j e c t . CHAPTER ONE: INTRODUCTION I. B a r g a i n i n g S t r u c t u r e i n B r i t i s h C o l u m b i a The e c o n o m y o f B r i t i s h C o l u m b i a i s r e s o u r c e b a s e d : f o r e s t r y , m i n i n g , and f i s h i n g a r e t h e e c o n o m i c b a c k b o n e o f t h e p r o v i n c e . T h e s e i n d u s t r i e s have t r a d i t i o n a l l y p r o v i d e d j o b s f o r t h o u s a n d s o f B r i t i s h C o l u m b i a n s ; d i r t y , d a n g e r o u s j o b s l o c a t e d i n r e m o t e , i s o l a t e d a r e a s . S i m i l a r w o r k i n g c o n d i t i o n s b r e d m i l i t a n t u n i o n s i n G r e a t B r i t a i n and many who came f r o m t h e r e t o B r i t i s h C o l u m b i a b r o u g h t w i t h them n o t o n l y t h e i r s k i l l e d l a b o u r b u t a l s o t h e i r m i l i t a n t u n i o n t r a d i t i o n s . The w o r k i n g c o n d i t i o n s i n t h e m i n e s and l o g g i n g camps p r o v i d e d t h e l a b o u r movement w i t h an e n v i r o n m e n t i n w h i c h a b r a n d o f m i l i t a n t and o f t e n r a d i c a l u n i o n i s m f l o u r i s h e d . D e s p i t e a more d i v e r s i f i e d economy t o d a y , t h e l e g a c y o f u n i o n m i l i t a n c y c o n t i n u e s and has s p i l l e d o v e r i n t o many o t h e r o c c u p a t i o n a l s e c t o r s i n B . C . . T h i s i d e o l o g i c a l p e r s p e c t i v e a l o n g w i t h a h i g h r a t e o f p e r c a p i t a u n i o n m e m b e r s h i p ( t h e s e c o n d h i g h e s t i n t h e c o u n t r y a t 40% (Kumar 1 9 8 6 ) ) h a s meant t h a t l a b o u r - m a n a g e m e n t c o n f l i c t i s w i d e l y f e l t . As a c o n s e q u e n c e * B r i t i s h C o l u m b i a ' s l a b o u r l e g i s l a t i o n has b e e n v i e w e d a s some o f t h e mos t p r o g r e s s i v e and i n n o v a t i v e i n f i n d i n g ways t o d e a l w i t h t h e s e t u r b u l e n t l a b o u r - m a n a g e m e n t r e l a t i o n s . The l e g a l a b i l i t y o f e m p l o y e r b a r g a i n i n g a s s o c i a t i o n s t o a c c r e d i t and t h e 2 e ncouragement by Labour B o a r d s f o r e m p l o y e r s t o do so i s one such r e s p o n s e . D u r i n g t h e 1940s and 1950s the l a b o u r movement i n B r i t i s h C o l u m b i a grew t o be one of t h e most p o w e r f u l i n N o r t h A m e r i c a . Wages and w o r k i n g c o n d i t i o n s i n B.C. were pushed t o t h e h i g h e s t l e v e l s i n Canada ( W e i l e r 1980). The s t r e n g t h o f t h e u n i o n movement c a u s e d th e employer community t o b i n d t o g e t h e r i n e m p l o y e r a s s o c i a t i o n s i n o r d e r t o p r e s e n t a s t r o n g , u n i t e d f r o n t t o combat u n i o n power. A s s o c i a t i o n s i n t h e f o r e s t , p u l p and p a p e r * c o n s t r u c t i o n * and f i s h i n g i n d u s t r i e s have t h e i r r o o t s i n t h i s p e r i o d . The 1960s and e a r l y 1970s c o n t i n u e d t o be f i l l e d w i t h g r e a t t u r b u l e n c e and l a b o u r u n r e s t . In 1972 a l o n e * w i t h a w o r k f o r c e o f j u s t under one m i l l i o n * two and a h a l f m i l l i o n p e r s o n days were l o s t t o s t r i k e s ( W e i l e r 1980). Waves of s u c c e s s i v e s t r i k e s r o c k e d t h e p r o v i n c e . Whole s e c t o r s of t h e economy were s h u t down f o r weeks a t a t i m e as s t r i k e s a t a s i n g l e l o c a t i o n c a u s e d o t h e r e m p l o y e r s t o l o c k out t h e i r employees i n r e t a l i a t i o n ( W e i l e r 1980) . R e c o g n i z i n g t h i s p a t t e r n as w h o l l y d e s t r u c t i v e , p o l i c y makers i n B.C. saw t h e need f o r l e g i s l a t i v e c hange. In 1973 new l a b o u r l e g i s l a t i o n was c r e a t e d i n t h e form o f t h e B r i t i s h C o l u m b i a Labour Code. The c r e a t o r s of t h e new Labour Code saw b r o a d b a s e d b a r g a i n i n g as t h e key t o l a b o u r peace i n B r i t i s h C o l u m b i a . S e c t i o n s 57 and 59 e n c o u r a g e d th e f o r m a t i o n o f c o u n c i l s o f t r a d e u n i o n s and a c c r e d i t e d e m p l o y e r a s s o c i a t i o n s , t h e Labour Code d i d not f i r s t e n a c t a c c r e d i t a t i o n l e g i s l a t i o n . 3 T h a t had been done i n 1970 and a h a n d f u l o f e m p l o y e r o r g a n i z a t i o n s had become a c c r e d i t e d . However, t h e makers o f t h e L a b o u r Code and t h o s e who s a t on t h e L a b o u r R e l a t i o n s B o a r d e a r l y i n t h e l i f e o f t h e new Code e n c o u r a g e d t h e w i d e s c a l e a c c r e d i t a t i o n o f e m p l o y e r b a r g a i n i n g a s s o c i a t i o n s and t h e f o r m a t i o n o f c o u n c i l s o f t r a d e u n i o n s . S i n c e 1973, B.C. has w i t n e s s e d an u n p r e c e d e n t e d c e n t r a l i z a t i o n o f b a r g a i n i n g s t r u c t u r e s . B a r g a i n i n g i n B.C. i s n e a r l y t w i c e as c e n t r a l i z e d as t h e C a n a d i a n a v e r a g e w i t h one h a l f o f t h e p r o v i n c e ' s b a r g a i n i n g u n i t s o f 200 o r more e m p l o y e e s i n m u l t i - e m p l o y e r u n i t s (Rogow 1989) (See T a b l e I ) . [ i n s e r t T a b l e I a b o u t h e r e ] As s e e n i n T a b l e I I , t h e r e a r e i n B.C. t o d a y a p p r o x i m a t e l y t h i r t y e m p l o y e r a s s o c i a t i o n s , b o t h v o l u n t a r y and f o r m a l l y a c c r e d i t e d , b a r g a i n i n g on b e h a l f o f t h e i r members. These a s s o c i a t i o n s a r e i n b o t h p u b l i c and p r i v a t e s e c t o r s and r e p r e s e n t b o t h s m a l l and l a r g e e m p l o y e r s i n a l l g e o g r a p h i c r e g i o n s and i n d u s t r i e s o f t h e p r o v i n c e . I n a d d i t i o n t o n e g o t i a t i n g , many p r o v i d e a d d i t i o n a l i n d u s t r i a l r e l a t i o n s s e r v i c e s f o r t h e i r members, i n c l u d i n g t h e p r o v i s i o n o f i n f o r m a t i o n f o r use i n t h e p r e p a r a t i o n o f b a r g a i n i n g demands, c o u n s e l l i n g on t h e a d v i s a b i l i t y o f p u r s u i n g a g i v e n g r i e v a n c e t o a r b i t r a t i o n , l e g a l a s s i s t a n c e t o do s o , and t h e a d m i n i s t r a t i o n o f p e n s i o n and b e n e f i t p l a n s . [ i n s e r t T a b l e I I a b o u t h e r e ] 4 T a b l e I B.C. B a r g a i n i n g S t r u c t u r e P e r c e n t o f E m p l o y e e s P e r c e n t o f A g r e e m e n t s S i n g l e M u l t i S i n g l e M u l t i E m p l o y e r E m p l o y e r E m p l o y e r E m p l o y e r 1973 37.7 62.4 69.9 30 . 1 1974 42.6 57.3 75.4 24.6 1975 48.5 51.5 79.4 20.6 1976 45.6 54.5 78. 1 21 . 9 1977 52. 1 47 . 8 77. 1 22.9 1978 43.0 57. 1 76 . 1 23.9 1979 * * * * 1980 48 . 3 51 . 7 76 . 3 23 . 7 1981 45.2 54 . 8 72 . 8 27 . 2 1982 53.0 47. 0 75.5 24.5 1983 * * * * 1984 49.8 50.2 76 . 3 23.7 1985 52.8 47.2 78.0 22.0 1986 55.3 44.7 79.5 20.5 1987 * * * * 1988 50 . 3 49 . 7 73 . 3 26 . 7 D a t a n o t a v a i l a b l e f o r t h e s e y e a r s S o u r c e : M i n i s t r y o f L a b o u r , P r o v i n c e o f B r i t i s h C o l u m b i a , N e g o t i a t e d W o r k i n g C o n d i t i o n s ( v a r i o u s y e a r s ) . 5 T a b l e I I C u r r e n t E m p l o y e r A s s o c i a t i o n s A c c r e d i t e d A s s o c i a t i o n s Date o f A c c r e d i t a t i o n A s s o c i a t i o n B.C. S c h o o l T r u s t e e s : Okanagan West K o o t e n a y C o a s t Range F i v e G r e a t e r V i c t o r i a L a b o u r R e l a t i o n s F o r e s t I n d u s t r i a l R e l a t i o n s L t d F r a s e r V a l l e y L a b o u r R e l a t i o n s A s s o c i a t i o n H e a l t h L a b o u r R e l a t i o n s A s s o c i a t i o n I n t e r i o r L o g g e r s A s s o c i a t i o n M e t a l I n d u s t r i e s o f B.C. S a l e s and S e r v i c e M e t a l M a n u f a c t u r i n g M i d I s l a n d P u b l i c E m p l o y e r s Okanagan F e d e r a t e d S h i p p e r s Okanagan M a i n l i n e M u n i c i p a l R e l a t i o n s A s s o c i a t i o n R e f r i g e r a t i o n and A i r C o n d i t i o n i n g C o n t r a c t o r s ' A s s o c i a t i o n o f B.C. V a n c o u v e r S h e e t M e t a l C o n t r a c t o r s * A s s o c i a t i o n W e s t e r n C o m m e r c i a l D e n t a l L a b o r a t o r i e s A s s o c i a t i o n A s s o c i a t i o n L a b o u r 16 Mar 1971 29 J u n 1971 3 Aug 1975 8 Nov 1976 16 J u n 1970 14 Apr 1983 21 Aug 1975 25 Oct 1972 Sep 1973 Mar 1973 30 Oct 1975 4 May 1981 3 May 1972 13 J a n 1988 25 Apr 1988 19 Jun 1980 V o l u n t a r y A s s o c i a t i o n s Y e a r o f F o r m a t i o n B.C. L i t h o g r a p h e r s ' A s s o c . 1974 B.C. M a r i t i m e E m p l o y e r s ' A s s o c . 1974 F i s h P r o c e s s o r s ' B a r g a i n i n g A s s o c . 1985 G r e a t e r V a n c o u v e r R e g i o n a l D i s t r i c t L a b o u r R e l a t i o n s D e p a r t m e n t 1976 I n t e r i o r F o r e s t L a b o u r R e l a t i o n A s s o c i a t i o n 1974 K o o t e n a y B o u n d a r y L a b o u r R e l a t i o n s A s s o c i a t i o n 1979 CONIFER ( C o u n c i l on N o r t h e r n I n t e r i o r F o r e s t Employment R e l a t i o n s ) 1975 C o n t i n u i n g C a r e E m p loyee R e l a t i o n s A s s o c i a t i o n 1985 C o u n c i l o f M a r i n e C a r r i e r s 1974 W a t e r f r o n t Foremen E m p l o y e r s ' A s s o c i a t i o n 1977 S o u r c e : B.C. I n d u s t r i a l R e l a t i o n s C o u n c i l 1989. I I . Changes i n B a r g a i n i n g S t r u c t u r e However* t h e e n v i r o n m e n t t h a t once made t h i s t y p e o f b a r g a i n i n g a t t r a c t i v e h a s , i t seems, d i s a p p e a r e d i n t h e 1 9 8 0 s . 6 The 1980s have been a d e c a d e o f g r e a t c h a n g e : t e c h n o l o g i c a l a d v a n c e m e n t s c o n t i n u e a t what a p p e a r s t o be an i n c r e a s i n g r a t e ; b o t h f o r e i g n and d o m e s t i c c o m p e t i t i o n have i n c r e a s e d ; e x p o r t m a r k e t s a r e i n c r e a s i n g l y v o l a t i l e ; and l e g i s l a t i v e c h a n g e s have r e f l e c t e d t h e v a l u e s o f a more c o n s e r v a t i v e g o v e r n m e n t . A l l t h e s e c h a n g e s have a f f e c t e d t h e i n d u s t r i a l r e l a t i o n s c l i m a t e o f B r i t i s h C o l u m b i a . As a r e s u l t o f t h e s e p r e s s u r e s on t h e i n d u s t r i a l r e l a t i o n s s y s t e m , c h a n g e s i n t h e f o r m a l i t y o f s e v e r a l e m p l o y e r a s s o c i a t i o n s i n B r i t i s h C o l u m b i a have o c c u r r e d i n t h e l a s t d e c a d e . S i n c e 1984, as shown i n T a b l e I I I , f i v e e m p l o y e r a s s o c i a t i o n s have c h o s e n t o d e a c c r e d i t and t o o p e r a t e as v o l u n t a r y o r g a n i z a t i o n s . U n t i l 1988, o n l y s e v e n e m p l o y e r a s s o c i a t i o n s had e v e r d e a c c r e d i t e d and o f t h o s e s e v e n , f i v e had a u t o m a t i c a l l y c e a s e d t o e x i s t . S i n c e 1988, a t o t a l o f t e n have d e a c c r e d i t e d and f i v e r e m a i n as v o l u n t a r y a s s o c i a t i o n s . 7 T a b l e I I I D e a c c r e d i t e d E m p l o y e r B a r g a i n i n g A s s o c i a t i o n s D i s b a n d e d A s s o c i a t i o n s A l u m i n i u m Window E m p l o y e r s * D ate o f A c c r e d i t a t i o n D a t e o f D e a c c r e d i t a t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n 30 May 1979 12 May 1986 A u t o m o b i l e D e a l e r s A s s o c i a t i o n ; V i c t o r i a 26 J a n 1976 3 Mar 1987 B.C. W h o l e s a l e Drug A s s o c i a t i o n 23 Feb 1971 9 Apr 1974 A s s o c i a t i o n o f C a n a d i a n S e c u r i t y S e r v i c e s 20 J u n 1973 4 Nov 1987 P a c i f i c D r y w a l l D e a l e r s 13 Nov 1975 28 May 1986 T r a n s p o r t L a b o u r R e l a t i o n s 14 Oct 1970 25 Sep 1984 Assumed V o l u n t a r y S t a t u s B.C. H o t e l s A s s o c i a t i o n B.C. Road B u i l d e r s B.C. S c h o o l T r u s t e e s ( E a s t K o o t e n a y LR C o u n c i l ) C o n s t r u c t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u Date o f A c c r e d i t a t i o n 26 May 1971 23 J u n 1970 24 Mar 1971 14 J u l 1970 7 J u l 1970 D a t e o f D e a c c r e d i t a t i o n 8 Oct 1988 18 J a n 1988 17 Mar 1984 22 J a n 1988 8 Mar 1985 S o u r c e : B.C. I n d u s t r i a l R e l a t i o n s C o u n c i l 1989. 8 I I I . The P u r p o s e o f t h i s R e s e a r c h and i t s M e t h o d o l o g y The p u r p o s e o f t h i s r e s e a r c h i s t o d e t e r m i n e t h e e f f e c t s o f e n v i r o n m e n t a l f o r c e s on t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y . H i s t o r i c a l l y , t h e m a j o r i t y o f e m p l o y e r s i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y Cand a l l p u l p and p a p e r e m p l o y e r s ) have been r e p r e s e n t e d a t t h e b a r g a i n i n g t a b l e by one o f f o u r e m p l o y e r a s s o c i a t i o n s . A h a n d f u l o f e m p l o y e r s i n t h i s i n d u s t r y have c h o s e n t o b a r g a i n on t h e i r own. However, as i n o t h e r i n d u s t r i e s , t h e 1980s have b r o u g h t i n c r e a s i n g e n v i r o n m e n t a l p r e s s u r e s t o b e a r ; f r o m i n c r e a s e d f o r e i g n c o m p e t i t i o n * e x p o s u r e t o c u r r e n c y f l u c t u a t i o n s on w o r l d c o m m o d i t y m a r k e t s , t h e t h r e a t o f t r a d e b a r r i e r s , t e c h n o l o g i c a l c h a n g e , and» i n t h e e a r l y p a r t o f t h e d e c a d e , t h e w o r s t r e c e s s i o n s i n c e t h e G r e a t D e p r e s s i o n o f t h e 193 0 s . T h i s r e s e a r c h s e e k s t o i d e n t i f y t h o s e f o r c e s w h i c h c o u l d be e x p e c t e d t o change t h e p r e f e r e n c e s o f t h e p a r t i e s f o r c e r t a i n b a r g a i n i n g s t r u c t u r e s . A s e c o n d a r y o b j e c t i v e i s t o i d e n t i f y t h e f a c t o r s r e s p o n s i b l e f o r change i n b a r g a i n i n g s t r u c t u r e or» c o n v e r s e l y , t o i d e n t i f y t h o s e f a c t o r s r e s p o n s i b l e f o r t h e p r e s e r v a t i o n o f t h e s t a t u s quo d e s p i t e t h e f o r c e o f t h e s e e n v i r o n m e n t a l p r e s s u r e s . Those f o r c e s r e s p o n s i b l e f o r s u c h c h a n g e s o r t h o s e f o r c e s w h i c h have p r e v e n t e d s u c h c h a n g e s w i l l be e x p l o r e d i n more d e t a i l . To a c c o m p l i s h t h i s a number o f a v e n u e s a r e e x p l o r e d . The t r a d i t i o n a l s t r u c t u r e o f b a r g a i n i n g i n B.C's f o r e s t p r o d u c t s 9 i n d u s t r y i s d e s c r i b e d and compared t o t h e s t r u c t u r e i n w h i c h n e g o t i a t i o n s a r e u n d e r t a k e n t o d a y . The i n d u s t r y i t s e l f i s a l s o e x a m i n e d . How has t h e i n d u s t r y c h a n g e d - i n t e r m s o f p r o d u c t m a r k e t s , f o r e i g n c o m p e t i t i o n * i n d u s t r i a l c o n c e n t r a t i o n ? What have been t h e e f f e c t s o f r e c e n t c h a n g e s t o l a b o u r l e g i s l a t i o n ? How have t h e b i t t e r , drawn o u t l a b o u r d i s p u t e s o f t h e m i d - 1 9 8 0 s a f f e c t e d t h e p a r t i e s and t h e i r b a r g a i n i n g r e l a t i o n s h i p s ? How s a t i s f i e d have t h e p a r t i e s been w i t h t h e n e g o t i a t e d o u t c o m e s ? T h i s r e s e a r c h u s e s a s y s t e m s a p p r o a c h t o a n a l y s e t h e i n d u s t r i a l r e l a t i o n s e n v i r o n m e n t o f B r i t i s h C o l u m b i a ' s f o r e s t r y i n d u s t r y . J o h n D u n l o p f i r s t p r e s e n t e d t h i s t h e o r e t i c a l f r a m e w o r k i n h i s 1958 book e n t i t l e d I n d u s t r i a l R e l a t i o n s S y s t e m s . C o l l e c t i v e b a r g a i n i n g t a k e s p l a c e i n an i n d u s t r i a l r e l a t i o n s f r a m e w o r k w h i c h i s i n f l u e n c e d by t h e e x t e r n a l e n v i r o n m e n t ( S e t h i and Dimmock 1 9 8 9 ) . The t h r e e p a r t i e s ( o r a c t o r s , as D u n l o p t e r m e d them) d e t e r m i n i n g c o l l e c t i v e b a r g a i n i n g o u tcomes a r e g o v e r n m e n t , e m p l o y e e s and t h e i r u n i o n s , and e m p l o y e r s and t h e i r a s s o c i a t i o n s ( A n d e r s o n , G u n d e r s o n , and Ponak 1 9 8 9 ) . The b e h a v i o u r o f t h e p a r t i e s i s i n f l u e n c e d by t h e e c o n o m i c , m a r k e t , t e c h n o l o g i c a l * and c o m p e t i t i v e e n v i r o n m e n t s as w e l l as by o r g a n i z a t i o n a l f a c t o r s s u c h as t h e l e g a l c o n t e x t , h i s t o r y and p a s t p r a c t i c e among t h e p a r t i e s * and t h e p r e s s u r e s p u t on t h e a c t o r s by t h i r d p a r t i e s . Much o f t h e i n f o r m a t i o n p r e s e n t e d i n t h i s t h e s i s was g a t h e r e d t h r o u g h b o t h t e l e p h o n e and p e r s o n a l i n t e r v i e w s w i t h t h e r e p r e s e n t a t i v e s o f t h e t h r e e u n i o n s and t h e t h r e e e m p l o y e r a s s o c i a t i o n s s t u d i e d . P r e - a p p r o a c h l e t t e r s were s e n t i n e a r l y 10 July 1989 and a l l s ix interviews sought were granted. Personal interviews were conducted at the respondents' o f f ices between July 14 and August 2, 1989 and general ly lasted between one and a half and two hours. One interview was done by telephone because of the distance separating Prince George from Vancouver, where the rest of the research was undertaken. This interview was also conducted during business hours and required roughly the same amount of time. The interviews followed a semi-structured format. Separate questions were prepared for the union and employer associat ion representat ives . Many of the questions designed for the two part ies however, addressed the same issues although obviously from d i f ferent perspect ives . Personal interviews were tape recorded and interview notes were taken. Later use of the tapes was made to ver i fy notes and f i l l in d e t a i l s . During these interviews other written materials were received which have also been used in th is research. For example, a copy of the most recent PPWC/PPIRB c o l l e c t i v e agreement was received from the PPWC representat ive , a copy of the MacKenzie Report (1988) from the president of FIR, and unpublished pulp and paper sector s t r ike data from the president of the Pulp Bureau. Background and h i s t o r i c a l information about bargaining in the B . C . forest products industry was gathered from a combination of government pub l i ca t ions , s t a t i s t i c a l sources* forest product industry trade journals* and newspaper f i l e s . 11 I V . R e s e a r c h F o r m a t T h r e e e m p l o y e r a s s o c i a t i o n s r e p r e s e n t i n g e m p l o y e r s i n e a c h o f t h e t h r e e s e c t o r s o f t h e f o r e s t p r o d u c t s i n d u s t r y ( l o g g i n g , s a w m i l l i n g , and p u l p and p a p e r ) a r e s t u d i e d : C o u n c i l on N o r t h e r n I n t e r i o r F o r e s t Employment R e l a t i o n s ( C ONIFER)* F o r e s t I n d u s t r i a l R e l a t i o n s L t d . ( F I R ) , and t h e P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u ( P P I R B ) . CONIFER r e p r e s e n t s l u m b e r p r o d u c e r s and a h a n d f u l o f u n i o n i z e d l o g g i n g e m p l o y e r s and has been a v o l u n t a r y a s s o c i a t i o n ( l i k e i t s p r e d e c e s s o r N o r t h C a r i b o o F o r e s t L a b o u r R e l a t i o n s f o r m e d i n t h e e a r l y 1 9 5 0 s ) s i n c e i t s f o r m a t i o n i n 1975. F I R * t h e C o a s t a l r e p r e s e n t a t i v e o f l o g g i n g and s a w m i l l i n g e m p l o y e r s * was e s t a b l i s h e d i n 1942 as R.V. R e s e a r c h L t d . * a v o l u n t a r y a s s o c i a t i o n . I t t o o k i t s p r e s e n t name i n 1949 and became a f o r m a l l y a c c r e d i t e d a s s o c i a t i o n on June 16* 1970. P P I R B , r e p r e s e n t i n g t h e p r o v i n c e ' s p u l p and n e w s p r i n t p r o d u c e r s * was begun on an i n f o r m a l b a s i s i n 1946 and became an a c c r e d i t e d a s s o c i a t i o n on J u l y 7, 1970. I t h a s , however* r e t u r n e d t o v o l u n t a r y s t a t u s , h a v i n g d e a c c r e d i t e d i n March 1985. These t h r e e a s s o c i a t i o n s and t h e i n d e p e n d e n t e m p l o y e r s i n t h e i n d u s t r y p r o v i d e a w i d e s p e c t r u m o f e m p l o y e r b a r g a i n i n g s t r u c t u r e s . By o b s e r v i n g t h e b e h a v i o u r o f t h e s e a s s o c i a t i o n s and t h e i r i n d e p e n d e n t c o u n t e r p a r t s , any change i n b a r g a i n i n g s t r u c t u r e * w h e t h e r t o w a r d s more c e n t r a l i z e d o r more d e c e n t r a l i z e d s t r u c t u r e s , c a n be i d e n t i f i e d . The t h e s i s i s o r g a n i z e d i n t h e f o l l o w i n g way. C h a p t e r Two r e v i e w s t h e l i t e r a t u r e on t h e t h e o r e t i c a l d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e . I t a l s o p r e s e n t s t h e f i n d i n g s o f s e v e r a l 12 s t u d i e s , b o t h s t a t i s t i c a l a n a l y s e s and c a s e s t u d i e s , t h a t s e e k t o i d e n t i f y t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e i n v a r i o u s i n d u s t r i e s . C h a p t e r T h r e e o u t l i n e s t h e e n v i r o n m e n t a l and o r g a n i z a t i o n a l p r e s s u r e s on t h e i n d u s t r i a l r e l a t i o n s s y s t e m i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y . The e c o n o m i c , c o m p e t i t i v e , p o l i t i c a l , and l e g a l e n v i r o n m e n t s a r e e a c h d i s c u s s e d i n t u r n . The f o u r t h c h a p t e r d e s c r i b e s t h e a c t o r s i n t h e s y s t e m , o u t l i n e s t h e i r i n t e r r e l a t i o n s h i p s and d e s c r i b e s b a r g a i n i n g s t r u c t u r e i n t h e f o r e s t p r o d u c t s i n d u s t r y i n t h e p a s t . C h a p t e r F i v e d e s c r i b e s t h e p r e s s u r e s s i n c e 1980 p u t upon t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a and t h e i m p a c t t h e s e have had on t h e i n d u s t r i a l r e l a t i o n s i n g e n e r a l a n d , more s p e c i f i c a l l y , on b a r g a i n i n g s t r u c t u r e i n t h i s s e c t o r . C h a p t e r S i x s e e k s t o e x p l a i n t h e r e a s o n s f o r t h e o b s e r v e d c h a n g e s i n b a r g a i n i n g s t r u c t u r e i n t h i s i n d u s t r y and t o e x p l a i n why c h a n g e s i n b a r g a i n i n g s t r u c t u r e have n o t been as r a d i c a l as t r a d i t i o n a l t h e o r y w o u l d have p r e d i c t e d . The f i n a l c h a p t e r p r e s e n t s r e c o m m e n d a t i o n s f o r f u t u r e r e s e a r c h i n t h i s a r e a . 13 CHAPTER TWO: LITERATURE REVIEW I . I n t r o d u c t i o n The p u r p o s e o f t h i s c h a p t e r i s t o r e v i e w t h e l i t e r a t u r e on t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e . In o r d e r t o u n d e r s t a n d t h e a d v a n t a g e s and d i s a d v a n t a g e s a s s o c i a t e d w i t h v a r i o u s t y p e s o f b a r g a i n i n g s t r u c t u r e s , t h e r e l a t i o n s h i p b e t ween b o t h e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s , b a r g a i n i n g s t r u c t u r e , and power must f i r s t be u n d e r s t o o d . To do s o , t h i s c h a p t e r b e g i n s by d e f i n i n g b a r g a i n i n g s t r u c t u r e and o u t l i n i n g i t s r o l e i n i n d u s t r i a l r e l a t i o n s t h e o r y . N e x t , t h e v a r i o u s f o r m s o f b a r g a i n i n g s t r u c t u r e a r e r e v i e w e d . The t h i r d s e c t i o n o f t h i s c h a p t e r d i s c u s s e s t h e t h e o r e t i c a l d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e and t h e e f f e c t s o f b a r g a i n i n g s t r u c t u r e upon t h e b a l a n c e o f power between t h e p a r t i e s . The c h a p t e r c o n c l u d e s by p r e s e n t i n g e m p i r i c a l e v i d e n c e f r o m b o t h s t a t i s t i c a l a n a l y s e s o f t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e and f r o m c a s e s t u d i e s d e s c r i b i n g t h e b a r g a i n i n g s t r u c t u r e s o f s e v e r a l i n d u s t r i e s i n B r i t i s h C o l u m b i a . A. B a r g a i n i n g S t r u c t u r e D e f i n e d D e f i n i n g b a r g a i n i n g s t r u c t u r e a t t h e s i m p l e s t l e v e l a n s w e r s t h e q u e s t i o n "who b a r g a i n s w i t h whom?", w h i c h e m p l o y e r s w i t h w h i c h u n i o n s (Rogow 1 9 8 9 ) ? A more i n t e r e s t i n g q u e s t i o n , h o w e v e r , i s "why?" - what c a u s e s t h e f o r m a t i o n o f more c e n t r a l i z e d o r 14 d e c e n t r a l i z e d s t r u c t u r e s ? T h i s q u e s t i o n i s more d i f f i c u l t t o a n s w e r . Weber ( 1 9 6 7 : 13) s t a t e s t h a t t h e p u r p o s e o f b a r g a i n i n g s t r u c t u r e i s t o "accommodate t h e g o a l s o f s p e c i f i c e m p l o y e e and e m p l o y e r g r o u p s w h i l e p r e s e r v i n g t h e e s s e n t i a l power r e l a t i o n s h i p s i n t h e b a r g a i n i n g p r o c e s s " . Weber's s t a t e m e n t i d e n t i f i e s t h e i m p o r t a n c e o f b a r g a i n i n g s t r u c t u r e t o t h e p r o c e s s o f c o l l e c t i v e b a r g a i n i n g . B a r g a i n i n g s t r u c t u r e i s a b o u t power: how t o g a i n , m a i n t a i n * and i n c r e a s e o ne's power i n r e l a t i o n t o o n e's a d v e r s a r y . B a r g a i n i n g s t r u c t u r e f i t s i n t o t h e t h e o r e t i c a l f r a m e w o r k o f i n d u s t r i a l r e l a t i o n s as an i n t e r v e n i n g o r m e d i a t i n g v a r i a b l e b e t w e e n t h e e n v i r o n m e n t and s p e c i f i c b a r g a i n i n g p r o c e s s e s o r o u t c o m e s ( K o c h a n and K a t z 1 9 8 8 ) . Kochan s t a t e s t h a t b a r g a i n i n g s t r u c t u r e i s a v a r i a b l e w h i c h ca n be m a n i p u l a t e d by t h e n e g o t i a t i n g p a r t i e s i n o r d e r t o r e a c h t h e o u t c o m e s e a c h p r e f e r s . These p r e f e r e n c e s a r e i n f l u e n c e d , b u t n o t w h o l l y d e t e r m i n e d b y , e n v i r o n m e n t a l ( e c o n o m i c , t e c h n o l o g i c a l , and c o m p e t i t i v e ) f a c t o r s . The p a r t i e s ' a b i l i t y t o a c h i e v e t h e i r o b j e c t i v e s w i l l i n p a r t be d e t e r m i n e d by o r g a n i z a t i o n a l ( s o c i a l * h i s t o r i c a l * and l e g a l ) f a c t o r s ( B a i r s t o w 1 9 7 9 ) . E ach p a r t y w i l l w i s h t o m a x i m i z e i t s own b a r g a i n i n g power w h i l e m i n i m i z i n g t h e o t h e r s i d e ' s . E n v i r o n m e n t a l f a c t o r s w i l l a f f e c t e a c h p a r t y ' s o b j e c t i v e s i n n e g o t i a t i o n s w h i l e o r g a n i z a t i o n a l f a c t o r s w i l l p l a c e c o n s t r a i n t s on e a c h p a r t y ' s a b i l i t y t o r e a l i z e i t s g o a l s . F o r e x a m p l e * f o r c e s i n t h e e n v i r o n m e n t t h a t weaken a p a r t y ' s p o s i t i o n may l e a d i t t o d e s i r e 15 a d i f f e r e n t b a r g a i n i n g s t r u c t u r e i n o r d e r t o r e g a i n t h e power n e c e s s a r y t o g e t what i t needs a t t h e b a r g a i n i n g t a b l e . I n c r e a s e d f o r e i g n c o m p e t i t i o n i n t h e e m p l o y e r ' s p r o d u c t m a r k e t may c a u s e t h e e m p l o y e r t o j o i n an e m p l o y e r ' s a s s o c i a t i o n i n o r d e r t o b r i n g an end t o u n i o n w h i p s a w i n g . However, o r g a n i z a t i o n a l f a c t o r s may e i t h e r i n c r e a s e o r d e c r e a s e t h e e f f e c t i v e n e s s o f t h a t c h o i c e . L e g i s l a t i o n o r t h i r d p a r t y p r e s s u r e , f o r e x a m p l e , may r e n d e r an a t t e m p t t o d e c e n t r a l i z e b a r g a i n i n g u s e l e s s . B a r g a i n i n g s t r u c t u r e , as i t c h a n g e s t h e b a l a n c e o f p o wer, w i l l i n t u r n i n f l u e n c e t h e o u t c o m e s o f c o l l e c t i v e b a r g a i n i n g and w i l l a f f e c t t h e n a t u r e o f t h e r e l a t i o n s h i p b e t w e e n t h e two p a r t i e s . P a r t i e s w i t h i n t h e same i n d u s t r y , f a c i n g i d e n t i c a l e n v i r o n m e n t a l f a c t o r s c a n have v e r y d i f f e r e n t b a r g a i n i n g o u t c o m e s by c h o o s i n g d i f f e r e n t s t r u c t u r e s t o meet t h e i r g o a l s and o b j e c t i v e s . The r e l a t i o n s h i p b e t ween e n v i r o n m e n t a l f a c t o r s , o r g a n i z a t i o n a l f a c t o r s , b a r g a i n i n g s t r u c t u r e and o u t c o m e s o f n e g o t i a t i o n s i s shown i n F i g u r e 1. [ i n s e r t F i g u r e 1 a b o u t h e r e ] 16 F i g u r e 1 B a r g a i n i n g S t r u c t u r e and t h e C o l l e c t i v e B a r g a i n i n g S y s t e m L e g i s l a t i v e C o n t e x t E c o n o m i c C o n t e x t T e c h n o l o g y - Power C o n t e x t O r g a n i z a t i o n a l C h a r a c t e r i s t i c s U n i o n S t r u c t u r'e C o l l e c t i v e B a r g a i n i n g S t r u c t u r e t Management S t r u c t u r e N e g o t i a t i o n P r o c e s s B a r g a i n i n g Outcomes L a b o u r •Management R e l a t i o n s h i p I n d u s t r i a l C o n f l i c t M a c r o e c o n o m i c P e r f o r m a n c e S o u r c e : R. D a v i e s , "The S t r u c t u r e o f C o l l e c t i v e B a r g a i n i n g i n Cana d a . " i n W.C. R i d d e l l ( e d . ) C a n a d i a n L a b o u r R e l a t i o n s • T o r o n t o : U n i v e r s i t y o f T o r o n t o P r e s s , 1986. P. 225. 17 B. Types o f B a r g a i n i n g S t r u c t u r e s B a r g a i n i n g s t r u c t u r e s can be c l a s s i f i e d most b r o a d l y as e i t h e r f o r m a l o r i n f o r m a l . The f o r m a l i t y d e pends upon t h e d e g r e e t o w h i c h t h e p a r t i e s on e i t h e r s i d e ( e m p l o y e r s o r u n i o n s ) a r e bound t o g e t h e r i n n e g o t i a t i n g new a g r e e m e n t s and t h e d e g r e e t o w h i c h e a c h must a c c e p t t h e c o n t r a c t t e r m s t h a t t h e g r o u p n e g o t i a t e s . I n f o r m a l b a r g a i n i n g s t r u c t u r e s a r e s i m p l y n e g o t i a t i o n s t h a t a r e r e l a t e d i n outcome (Rogow 1 9 8 9 ) . These s t r u c t u r e s may r a n g e f r o m t h e a l m o s t f o r m a l r e l a t i o n s h i p o f p a t t e r n b a r g a i n i n g i n w h i c h t h e p a t t e r n - s e t t i n g a g r e e m e n t i s a l w a y s i m i t a t e d i n t h e p a t t e r n - f o l l o w i n g n e g o t i a t i o n s * t o t h e most t e m p o r a r y o f a g r e e m e n t s i n w h i c h one p a r t y s e e k s t o w i n a b a r g a i n i n g outcome b a s e d upon one r e c e n t l y won by a r e f e r e n c e g r o u p (Rogow 1 9 8 9 ) . I n f o r m a l b a r g a i n i n g s t r u c t u r e s a r e o f t e n more a t t r a c t i v e t o t h e p a r t i e s i n v o l v e d t h a n f o r m a l ones b e c a u s e o f t h e i r f l e x i b i l i t y . In t h e e v e n t t h a t t h e e c o n o m i c * o r g a n i z a t i o n a l * o r p o l i t i c a l c l i m a t e c h a n g e s * t h e p a r t i c i p a n t s a r e n o t c o m p e l l e d t o r e m a i n i n t h e r e l a t i o n s h i p (Rogow 1 9 8 9 ) . In c o n t r a s t t o i n f o r m a l s t r u c t u r e s , f o r m a l s t r u c t u r e s a r e " l e s s v o l u n t a r y , more d i f f i c u l t t o l e a v e * more d i f f i c u l t t o c h a n g e , " and "more r e g u l a t e d by l a w " (Rogow 1989: 1 3 6 ) . The m a j o r a d v a n t a g e a s s o c i a t e d w i t h f o r m a l b a r g a i n i n g s t r u c t u r e s i s t h a t t h e p a r t i e s a r e bound* o f t e n l e g a l l y * t o r e m a i n i n t h e g r o u p c o v e r e d by t h e a g r e e m e n t . T h i s e n s u r e s t h e s t a b i l i t y o f t h e s e a s s o c i a t i o n s * t h a t w eaker u n i o n s o r e m p l o y e r s do n o t b r e a k away 18 t o s i g n a s e p a r a t e a g r e e m e n t w h i c h t h e u n i o n o r e m p l o y e r c a n t h e n use t o whipsaw t h e r e s t o f t h e g r o u p (Rogow 1 9 8 9 ) . F o r m a l s t r u c t u r e s c a n be c l a s s i f i e d on t h r e e d i m e n s i o n s : t h e number o f e m p l o y e r s , e s t a b l i s h m e n t s , and u n i o n s i n v o l v e d . B a r g a i n i n g s t r u c t u r e s can be s i n g l e o r m u l t i - e m p l o y e r . M u l t i - e m p l o y e r n e g o t i a t i o n s c a n be i n d u s t r y w i d e , l o c a l a r e a w i d e ( e . g . p r o v i n c i a l o r m u n i c i p a l ) , c o m p r i s e d o f s m a l l e m p l o y e r s o n l y , l a r g e e m p l o y e r s o n l y , a m i x t u r e o f b o t h l a r g e and s m a l l e m p l o y e r s , o r any c o m b i n a t i o n o f t h e a b o v e . B a r g a i n i n g s t r u c t u r e s c a n a l s o be d e f i n e d as e i t h e r s i n g l e o r m u l t i - e s t a b l i s h m e n t . S i n g l e - e s t a b l i s h m e n t b a r g a i n i n g u s u a l l y i n v o l v e s o n l y a s i n g l e e m p l o y e r b u t can a l s o be u n d e r t a k e n by an e m p l o y e r who has more t h a n one e s t a b l i s h m e n t b u t , f o r w h a t e v e r r e a s o n , c h o o s e s t o b a r g a i n on a p l a n t by p l a n t b a s i s . M u l t i - e s t a b l i s h m e n t b a r g a i n i n g i n v o l v e s e i t h e r a s i n g l e e m p l o y e r o r a number o f d i f f e r e n t e m p l o y e r s . The f i n a l d i m e n s i o n u s e d t o d e f i n e b a r g a i n i n g s t r u c t u r e i s t h e number o f u n i o n s i n v o l v e d i n e a c h r o u n d o f n e g o t i a t i o n s : e i t h e r a s i n g l e u n i o n o r a m u l t i - u n i o n a s s o c i a t i o n . However, s i n g l e - u n i o n s t r u c t u r e s a r e t h e norm b e c a u s e t h e c o s t s o f i n t r a o r g a n i z a t i o n a l b a r g a i n i n g w h i c h a r e a s s o c i a t e d w i t h m u l t i - u n i o n s t r u c t u r e s o f t e n e x c e e d t h e b e n e f i t s t h e p a r t i c i p a n t s r e c e i v e . The p a i r i n g o f s i n g l e o r m u l t i - u n i o n s t r u c t u r e s w i t h t h e d i m e n s i o n s d i s c u s s e d e a r l i e r l e a d s t o s i x b a s i c b a r g a i n i n g s t r u c t u r e c o n f i g u r a t i o n s : S i n g l e e s t a b l i s h m e n t - S i n g l e u n i o n 19 S i n g l e e s t a b l i s h m e n t - M u l t i u n i o n M u l t i e s t a b l i s h m e n t - S i n g l e u n i o n M u l t i e s t a b l i s h m e n t - M u l t i u n i o n M u l t i e m p l o y e r - S i n g l e u n i o n M u l t i e m p l o y e r - M u l t i u n i o n (Rogow 1989) I I . T h e o r e t i c a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e A. The I s s u e o f Power P e r h a p s t h e most i m p o r t a n t c o n s i d e r a t i o n i n t h e e s t a b l i s h m e n t o f a b a r g a i n i n g s t r u c t u r e i s t h e power a d v a n t a g e i t w i l l g i v e t o e i t h e r one o f t h e p a r t i e s . Weber s t a t e s t h a t " e a c h p a r t y w i l l s e e k t o d e v i s e a s t r u c t u r e t h a t w i l l m a x i m i z e i t s c a p a c i t y f o r i n f l i c t i n g r e a l o r e x p e c t e d c o s t s on t h e o t h e r p a r t y i n t h e c o u r s e o f t h e b a r g a i n i n g p r o c e s s " ( 1 9 6 7 : 2 0 ) . L i v e r n a s h ( 1 9 6 3 ) , d e f i n e s power i n l a b o u r n e g o t i a t i o n s more e x p l i c i t l y as t h e a b i l i t y and w i l l i n g n e s s o f e a c h p a r t y t o w i t h s t a n d a s t r i k e , and f u r t h e r s t a t e s t h a t b a r g a i n i n g s t r u c t u r e i s an i m p o r t a n t d e t e r m i n a n t o f t h a t power. B. E n v i r o n m e n t a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e J u s t as b a r g a i n i n g s t r u c t u r e c a n , i n p a r t * d e t e r m i n e t h e p a r t i e s ' r e l a t i v e b a r g a i n i n g power* e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s i n t e r a c t t o d e t e r m i n e t h e p a r t i e s ' d e s i r e d b a r g a i n i n g s t r u c t u r e . C o n v e r s e l y * t h e s e f a c t o r s c a n a l s o a c t as c o n s t r a i n t s on t h e a c h i e v e m e n t o f t h e p a r t i e s ' d e s i r e d s t r u c t u r e s . E n v i r o n m e n t a l f a c t o r s , h o w e v e r , i m p a c t t h e two 20 p a r t i e s i n d i f f e r e n t ways. In t h i s s e c t i o n t h e e f f e c t s o f v a r i o u s e n v i r o n m e n t a l f a c t o r s w i l l be s t u d i e d f r o m t h e p e r s p e c t i v e o f t h e u n i o n and t h e e m p l o y e r , i n c l u d i n g b o t h t h e s i n g l e e m p l o y e r and t h e e m p l o y e r b a r g a i n i n g i n an a s s o c i a t i o n . 1. U n i o n C o n s i d e r a t i o n s U n i o n s a r e p o l i t i c a l o r g a n i z a t i o n s . L e v i n s o n ( 1 9 6 6 ) c l a s s i f i e s p o l i t i c a l v a r i a b l e s as a n c i l l a r y r a t h e r t h a n p r i m a r y d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e . P o l i t i c a l v a r i a b l e s , s u c h as u n i o n r i v a l r y o r t h e s e a r c h f o r added p r e s t i g e , p r o v i d e t h e m o t i v a t i o n f o r u n i o n l e a d e r s t o s e e k l a r g e wage and f r i n g e b e n e f i t i n c r e a s e s . I n o r d e r t o do s o , t h e u n i o n needs t o m a x i m i z e i t s b a r g a i n i n g power and r e q u i r e s t h e b a r g a i n i n g s t r u c t u r e t h a t a l l o w s i t t o do s o . W i t h o u t b e i n g a b l e t o a c h i e v e t h i s , t h e u n i o n i s o f t e n u n a b l e t o w i n t h e o u t c o m e s i t p r e f e r s . H owever, L e v i n s o n a l s o p o i n t s o u t t h a t t h e u n i o n , e ven w i t h a f a v o u r a b l e power p o s i t i o n , may n o t a c h i e v e s e t t l e m e n t s o u t o f t h e n o r m a l r a n g e when t h e s e p o l i t i c a l m o t i v a t i o n s a r e a b s e n t . C h a r a c t e r i s t i c s o f t h e p r o d u c t and l a b o u r m a r k e t s w i l l i n p a r t d e t e r m i n e t h e b a r g a i n i n g s t r u c t u r e t h e u n i o n p r e f e r s . U n i o n s g e n e r a l l y l o o k f o r b a r g a i n i n g s t r u c t u r e s t h a t encompass t h e m a r k e t w i t h i n t h e i r j u r i s d i c t i o n (Weber 1 9 6 7 ) . L e v i n s o n ( 1 9 6 6 ) s t a t e s t h a t t h e u n i o n ' s power i s g r e a t e s t when i t c a n p r e v e n t new i n d u s t r y e n t r a n t s f r o m o p e r a t i n g o u t s i d e t h e u n i o n ' s j u r i s d i c t i o n . I n d u s t r i e s h a v i n g h i g h c o n c e n t r a t i o n r a t i o s u s u a l l y have p r o h i b i t i v e b a r r i e r s t o e n t r y so t h a t t h e u n i o n , once e s t a b l i s h e d i n t h e f i r m s i n t h e i n d u s t r y , need n o t 21 c o n c e r n i t s e l f w i t h f u r t h e r o r g a n i z i n g . These s i t u a t i o n s t e n d t o i n v o l v e m u l t i - e m p l o y e r s t r u c t u r e s . T h e r e i s an a d d i t i o n a l a d v a n t a g e t o t h e u n i o n i n m a i n t a i n i n g a m u l t i - e m p l o y e r b a r g a i n i n g s t r u c t u r e . When a l l c o m p e t i t o r s i n a m a r k e t a r e i n v o l v e d , t h e c o s t o f a c o n c e s s i o n t h a t a l l e m p l o y e r s make i s r e d u c e d when comp a r e d t o t h e o p t i o n o f a l l c o m p e t i t o r s t a k i n g a s t r i k e where t h e r e i s t h e t h r e a t o f one e v e n t u a l l y b r e a k i n g away t o s e t t l e b e f o r e t h e o t h e r s . The u n i o n i s a l s o a b l e t o m a i n t a i n c o n t r o l o f a more c o m p e t i t i v e i n d u s t r y where t h e r e a r e v e r y l o w b a r r i e r s t o e n t r y i f t h e i n d u s t r y i s g e o g r a p h i c a l l y c o n c e n t r a t e d ( L e v i n s o n 1 9 6 6 ) . I f t h e u n i o n ca n a c h i e v e a h i g h l e v e l o f o r g a n i z a t i o n a l s t r e n g t h i n t h a t a r e a * i t c a n p r e v e n t t h e u n d e r m i n i n g e f f e c t s o f n o n u n i o n c o m p e t i t o r s d e s p i t e t h e e a s e o f e n t r y i n t o t h a t m a r k e t . L e v i n s o n c i t e s t h e o v e r - t h e - r o a d t r u c k i n g i n d u s t r y as one w h i c h i s h i g h l y c o m p e t i t i v e b u t w h i c h has t r a d i t i o n a l l y been o r g a n i z e d by a s t r o n g u n i o n b e c a u s e a l l c o m p e t i t o r s must be l o c a t e d i n one o f a few m a j o r hub c i t i e s . These s i t u a t i o n s g e n e r a l l y i n v o l v e more d e c e n t r a l i z e d s t r u c t u r e s (Weber 1 9 6 7 ) . 2. E m p l o y e r C o n s i d e r a t i o n s An e m p l o y e r ' s b a r g a i n i n g power i s d e t e r m i n e d by i t s a b i l i t y t o w i t h s t a n d a s t r i k e mounted by t h e u n i o n ( L i v e r n a s h 1 9 6 3 ) . L i v e r n a s h p o i n t s o u t t h a t e m p l o y e r s g e n e r a l l y do n o t w i n t h e s h o r t s t r i k e and t h e r e f o r e must be p r e p a r e d , i f t h e y d e c i d e t o t a k e a s t r i k e , t o o u t l a s t t h e u n i o n . E m p l o y e r s t h e r e f o r e , w i l l 22 s e e k t h e b a r g a i n i n g s t r u c t u r e t h a t b e s t e n a b l e s them t o w i n a l o n g s t r i k e . E m p l o y e r s w i l l c h o o s e t o c o n d u c t n e g o t i a t i o n s on a p l a n t by p l a n t b a s i s i f t h e y have a l a r g e number o f p l a n t s , w i d e l y d i s p e r s e d , p r o d u c i n g on a n o n i n t e g r a t e d b a s i s , w h i c h a r e r e p r e s e n t e d by s e v e r a l d i f f e r e n t u n i o n s whose c o n t r a c t s a l l have d i f f e r e n t e x p i r y d a t e s ( L i v e r n a s h 1 9 6 3 ) . In t h e s e c i r c u m s t a n c e s an e m p l o y e r ' s power i s m a x i m i z e d by d e c e n t r a l i z e d b a r g a i n i n g . H owever, i f t h e e m p l o y e r i s s m a l l , i n a p o o r c a s h o r i n v e n t o r y p o s i t i o n , and f a c e s a l a r g e n a t i o n a l i n d u s t r i a l u n i o n , t h e f i r m i s b e t t e r o f f t o c e n t r a l i z e i t s n e g o t i a t i o n s a t t h e c o r p o r a t e l e v e l o r t o j o i n an e m p l o y e r b a r g a i n i n g a s s o c i a t i o n . 3. C o n s i d e r a t i o n s o f E m p l o y e r A s s o c i a t i o n s The s i m i l a r i t y o f t h e g o a l s and o b j e c t i v e s o f t h e e m p l o y e r s i n v o l v e d i n an e m p l o y e r ' s a s s o c i a t i o n w i l l d e t e r m i n e t h e g r o u p ' s b a r g a i n i n g power. To f o r m a common f r o n t means r e l i n q u i s h i n g i n d i v i d u a l a n d / o r s m a l l g r o u p g o a l s . The t r a d e o f f between f u l f i l l i n g g r o u p as o p p o s e d t o i n d i v i d u a l g o a l s w i l l c o n t i n u e as l o n g as t h e g a i n s r e c e i v e d o u t w e i g h t h e l o s s e s i n c u r r e d (Weber 1 9 6 7 ) . G e n e r a l l y , t h e more homogeneous t h e g r o u p ' s make-up i n t e r m s o f s i z e , r e g i o n , t h e u n i o n s w i t h w h i c h members n e g o t i a t e , methods o f p r o d u c t i o n , m a r k e t s h a r e , and p r o f i t a b i l i t y , t h e more h i g h l y c e n t r a l i z e d b a r g a i n i n g c a n become b e f o r e t h e c o s t s t o i n d i v i d u a l s become p r o h i b i t i v e . The f o r m a t i o n o f an e m p l o y e r b a r g a i n i n g a s s o c i a t i o n has two e f f e c t s on c o l l e c t i v e b a r g a i n i n g . An e m p l o y e r a s s o c i a t i o n w i l l 23 a l t e r t h e c o s t s and c o n s e q u e n c e s o f a s t r i k e t o t h e e m p l o y e r s and t h e u n i o n . I t w i l l a l s o change t h e w i l l i n g n e s s o f t h e e m p l o y e r s t o make c o n c e s s i o n s . T h e i r w i l l i n g n e s s t o c o n c e d e c e r t a i n i s s u e s w i l l d epend upon t h e r e l a t i o n o f b a r g a i n i n g s t r u c t u r e t o t h e p r o d u c t m a r k e t . I f a l l members a r e w i l l i n g t o make t h e c o n c e s s i o n and i f t h e added c o s t s a s s o c i a t e d w i t h i t do n o t d e c r e a s e s a l e s v o l u m e , t h e n t h e a s s o c i a t i o n w i l l be more l i k e l y t o make c o n c e s s i o n s t h a n any e m p l o y e r i n d i v i d u a l l y . However, i f t h e s e c o n d i t i o n s a r e n o t met» and t o make t h e c o n c e s s i o n w o u l d harm t h e p r o f i t a b i l i t y o f t h e member f i r m s , t h e n an a s s o c i a t i o n i s i n a much s t r o n g e r p o s i t i o n t o p r e s e n t a u n i t e d f r o n t t o t h e u n i o n and t a k e a s t r i k e i f n e c e s s a r y . The d e g r e e o f c o m p e t i t i o n i n t h e p r o d u c t m a r k e t c a n a l s o have an e f f e c t on t h e e m p l o y e r ' s b a r g a i n i n g power as w e l l as upon t h e u n i o n ' s as was d i s c u s s e d a b o v e . E m p l o y e r s i n a more c o n c e n t r a t e d i n d u s t r y w i l l be a b l e t o w i t h s t a n d s t r i k e p r e s s u r e b e t t e r t h a n e m p l o y e r s i n a c o m p e t i t i v e i n d u s t r y * g i v e n t h a t t h e y f a c e t h e same d e g r e e o f u n i o n power ( L e v i n s o n 1966). E m p l o y e r s i n more c o n c e n t r a t e d i n d u s t r i e s a r e g e n e r a l l y l a r g e r , f i n a n c i a l l y s t r o n g e r , and b e c a u s e t h e r e a r e f e w e r o f them, i t i s e a s i e r f o r them t o c o o r d i n a t e t h e i r b a r g a i n i n g p o l i c i e s . A more c o m p e t i t i v e p r o d u c t m a r k e t o f t e n c o n t a i n s s m a l l e r f i r m s u n a b l e t o w i t h s t a n d t h e p r e s s u r e o f a s t r i k e and f i r m s w i l l b r e a k away t o s e t t l e s e p a r a t e l y w i t h t h e u n i o n . Those s e t t l i n g f i r s t have t h e added i n c e n t i v e o f c a p t u r i n g some o f t h e i r c o m p e t i t o r s ' m a r k e t s h a r e w h i l e t h e y r e m a i n on s t r i k e . 24 C. O r g a n i z a t i o n a l D e t e r m i n a n t s o f B a r g a i n i n g S t r u c t u r e The o r g a n i z a t i o n a l d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e a r e more q u a l i t a t i v e i n n a t u r e . D e s p i t e b e i n g more s u b t l e and l e s s e a s i l y i d e n t i f i a b l e and m e a s u r a b l e , t h e i m p a c t o f t h e s e v a r i a b l e s on t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g c a n be s i g n i f i c a n t . O r g a n i z a t i o n a l v a r i a b l e s may i n c l u d e t h e l a w s r e g u l a t i n g t h e a c t o r s ' b e h a v i o u r , t h e i n s t i t u t i o n a l f o r c e s t o p r e s e r v e c o n d i t i o n s as t h e y a r e o r t o change them, and t h e r e l u c t a n c e o f t h e p a r t i e s t o i n s t i t u t e c hange d e s p i t e c h a n g e s i n t h e e x t e r n a l e n v i r o n m e n t ( B a i r s t o w 1 9 7 9 ) . 1. L e g i s l a t i v e C o n t e x t One o f t h e more e a s i l y i d e n t i f i a b l e o r g a n i z a t i o n a l f a c t o r s i s t h e l e g i s l a t i o n r e g u l a t i n g c o l l e c t i v e b a r g a i n i n g i n a g i v e n j u r i s d i c t i o n . L e g i s l a t i o n can be u s e d as a p o l i c y t o o l t o c o r r e c t t h e power i m b a l a n c e s t h a t have d e v e l o p e d i n a c o l l e c t i v e b a r g a i n i n g r e l a t i o n s h i p and c e r t a i n b a r g a i n i n g s t r u c t u r e s may be i m p o s e d on t h e p a r t i e s by l a w . L a b o u r b o a r d s i n N o r t h A m e r i c a t e n d t o d e s i g n a t e t h e a p p r o p r i a t e b a r g a i n i n g u n i t as one i n w h i c h a s i n g l e u n i o n b a r g a i n s w i t h a s i n g l e e m p l o y e r a t a s i n g l e e s t a b l i s h m e n t . T h i s i s i n t e n d e d t o f a c i l i t a t e t h e s p r e a d o f c o l l e c t i v e b a r g a i n i n g , m a k i n g i t e a s i e r f o r a u n i o n t o w i n a r e c o g n i t i o n e l e c t i o n and s e c u r e a f i r s t c o n t r a c t . However, t h i s s t r u c t u r e i s r e s i s t a n t t o change and t e n d s t o e n d u r e p a s t t h e f o r m a t i v e s t a g e o f t h e b a r g a i n i n g r e l a t i o n s h i p ( W e i l e r 1 9 8 0 ) . I n an a t t e m p t t o e n c o u r a g e more c e n t r a l i z e d b a r g a i n i n g where i t w o u l d be 25 b e n e f i c i a l , t h e l e g i s l a t i v e e n v i r o n m e n t i n some a r e a s p r o v i d e s f o r t h e a c c r e d i t a t i o n o f empl o y e r a s s o c i a t i o n s and t r a d e u n i o n c o u n c i l s f o r t h e p u r p o s e of more c e n t r a l i z e d b a r g a i n i n g ( W e i l e r 1980 ) . 2. H i s t o r y and P a s t P r a c t i c e D e s p i t e e n v i r o n m e n t a l c h a n g e s , h i s t o r y and p a s t p r a c t i c e s may c o n t i n u e t o i n f l u e n c e t h e s t r u c t u r e of b a r g a i n i n g i n an i n d u s t r y . The t r a d i t i o n o f p a t t e r n b a r g a i n i n g o f t e n c o n t i n u e s even a f t e r t h e e n v i r o n m e n t has changed s i g n i f i c a n t l y s i n c e t h e p a t t e r n was f i r s t e s t a b l i s h e d and when i t i n f a c t would be a d v a n t a g e o u s t o b a r g a i n d i f f e r e n t l y . In o t h e r c a s e s t h e b e n e f i t s o f c e n t r a l i z e d b a r g a i n i n g , s u c h as t h e a d m i n i s t r a t i v e ease i n n e g o t i a t i n g o n l y one agreement t o c o v e r many companies i n an i n d u s t r y , assume paramount i m p o r t a n c e and a r e d i f f i c u l t t o cha n g e . C e n t r a l i z e d s t r u c t u r e s a l s o t e n d t o p e r s i s t i n s i t u a t i o n s where t h e u n i o n has a c h i e v e d p a r i t y among members o f v a r i o u s l o c a l s and i s l o a t h t o d e s t r o y t h i s e q u i t y d e s p i t e t h e p o s s i b i l i t y t h a t some l o c a l s c o u l d a c h i e v e b e t t e r s e t t l e m e n t s on t h e i r own. 3. A t t i t u d e s of t h e P a r t i e s The a t t i t u d e s or p h i l o s o p h i e s o f t h e p a r t i e s a r e a l s o i m p o r t a n t d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e . In o r d e r f o r m u l t i - e m p l o y e r s t r u c t u r e s t o be s u c c e s s f u l , t h e e m p l o y e r s i n v o l v e d must be p r e p a r e d t o put t h e i n t e r e s t s o f t h e group ahead of t h e i r i n d i v i d u a l p r e f e r e n c e s . In some c i r c u m s t a n c e s , s u c h an 26 a t t i t u d e r u n s c o u n t e r t o t h e e n t r e p r e n e u r i a l s p i r i t o f e m p l o y e r s who do n o t w i s h t o be r e s t r i c t e d i n any way f r o m o p t i m i z i n g t h e i r i n d i v i d u a l o u t c o m e s . B r o a d b a s e d b a r g a i n i n g a l s o r e q u i r e s c e r t a i n a t t i t u d e s f r o m t h e u n i o n o r u n i o n s i n v o l v e d t o be s u c c e s s f u l . U n i o n r i v a l r y c a n d i s c o u r a g e t h e f o r m a t i o n o f b r o a d b a s e d b a r g a i n i n g s t r u c t u r e s . C o n v e r s e l y , i f wage and b e n e f i t p a r i t y i s a p r i o r i t y f o r t h e u n i o n o r u n i o n s i n v o l v e d t h e n t h e y w i l l p u t p r e s s u r e on t h e e m p l o y e r s i n an i n d u s t r y t o b a r g a i n c e n t r a l l y f o r a m a s t e r a g r e e m e n t . 4. I n t e r e s t s o f T h i r d P a r t i e s C o l l e c t i v e b a r g a i n i n g a f f e c t s more t h a n j u s t t h e two p a r t i e s i n v o l v e d . When l a b o u r d i s p u t e s o c c u r t h i r d p a r t i e s i n c l u d i n g s u p p l i e r s , b u y e r s , and t h e g e n e r a l p u b l i c c a n a l l be a f f e c t e d . D e p e n d i n g upon t h e i r i n f l u e n c e and power, t h e s e t h i r d p a r t i e s c a n o f t e n s i g n i f i c a n t l y a f f e c t t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g t h r o u g h p r e s s u r e on t h e g o v e r n m e n t t o p a s s l e g i s l a t i o n r e g u l a t i n g b a r g a i n i n g and by e c o n o m i c p r e s s u r e p u t d i r e c t l y upon t h e o f f e n d i n g u n i o n , e m p l o y e r , o r e m p l o y e r s . I I I . E m p i r i c a l E v i d e n c e A. S t a t i s t i c a l A n a l y s e s Two s t u d i e s have t e s t e d t h e a b i l i t y o f t h e t h e o r e t i c a l d e t e r m i n a n t s o u t l i n e d above t o c o r r e c t l y p r e d i c t b a r g a i n i n g s t r u c t u r e s . These s t u d i e s have u s e d e n v i r o n m e n t a l f a c t o r s as p r e d i c t o r s o f b a r g a i n i n g s t r u c t u r e b e c a u s e o f t h e i r q u a n t i f i a b l e n a t u r e . O r g a n i z a t i o n a l f a c t o r s a r e o f t e n d i f f i c u l t b o t h t o 27 d e t e r m i n e and t o q u a n t i f y f o r use i n s t a t i s t i c a l a n a l y s e s . In b o t h s t u d i e s t h e e n v i r o n m e n t a l f a c t o r s d e s c r i b e d above ha d , f o r t h e most p a r t , t h e e x p e c t e d e f f e c t s on t h e b a r g a i n i n g s t r u c t u r e s e x a m i n e d . The f i n d i n g s o f t h e s e two s t u d i e s , one by H e n d r i c k s and Kahn ( 1 9 8 2 ) done i n t h e U.S., t h e o t h e r by D e a t o n and Beaumont ( 1 9 8 0 ) w o r k i n g w i t h B r i t i s h d a t a , a r e s u m m a r i z e d b e l o w . B o t h s e t s o f r e s e a r c h e r s w o r k e d i n two s e p a r a t e s t e p s . They f i r s t t r i e d t o i d e n t i f y t h e f a c t o r s t h a t d e t e r m i n e d w h e t h e r a g i v e n c o n t r a c t was m u l t i - o r s i n g l e - e m p l o y e r , and s e c o n d , g i v e n t h a t a c o n t r a c t was s i n g l e - e m p l o y e r , t h e f a c t o r s w h i c h made i t more l i k e l y t o encompass more t h a n one e s t a b l i s h m e n t . B o t h teams f o u n d s i m i l a r f a c t o r s t o be s i g n i f i c a n t p r e d i c t o r s o f s i n g l e - e m p l o y e r s t r u c t u r e s : l a r g e p l a n t s i z e and h i g h i n d u s t r i a l c o n c e n t r a t i o n . F u r t h e r , D e a t o n and Beaumont f o u n d t h a t t h e m a j o r d e t e r m i n a n t s f o r m u l t i - e m p l o y e r b a r g a i n i n g s t r u c t u r e s were lo w i n d u s t r i a l c o n c e n t r a t i o n , l o w p r o d u c t m a r k e t d i s p e r s i o n , s m a l l p l a n t s i z e , h i g h u n i o n d e n s i t y , and m u l t i - u n i o n i s m . D e a t o n and Beaumont ( 1 9 8 0 ) a l s o f o u n d t h a t s i n g l e - e m p l o y e r s t r u c t u r e s o f t e n r e s u l t e d f r o m f o r e i g n o w n e r s h i p and t h e p r e s e n c e o f l o c a l IR s p e c i a l i s t s . H e n d r i c k s and Kahn ( 1 9 8 2 ) , u n l i k e D e a t o n and Beaumont b e f o r e them, were s u c c e s s f u l i n d e t e r m i n i n g t h e p r o b a b i l i t y t h a t a c o n t r a c t , g i v e n t h a t i t was s i n g l e - e m p l o y e r , was e i t h e r s i n g l e o r m u l t i - e s t a b l i s h m e n t . L a r g e p l a n t s i z e and h i g h i n d u s t r i a l c o n c e n t r a t i o n , as w e l l as i n d i c a t i n g a s i n g l e e m p l o y e r s t r u c t u r e , a l s o i n c r e a s e d t h e p r o b a b i l i t y t h a t a c o n t r a c t w o u l d be m u l t i - e s t a b l i s h m e n t g i v e n t h a t i t was s i n g l e - e m p l o y e r . T h i s 28 p r o b a b i l i t y was f u r t h e r i n c r e a s e d i f t h e l a b o u r i n t e n s i t y o f t h e company's b u s i n e s s was h i g h . However, c o n t r a r y t o t h e f i n d i n g s o f D e a t o n and Beaumont, u n i o n r i v a l r y a t any l o c a t i o n t e n d e d t o d e c e n t r a l i z e b a r g a i n i n g t o t h e s i n g l e - e s t a b l i s h m e n t l e v e l . In N o r t h A m e r i c a , u n l i k e i n G r e a t B r i t a i n , m u l t i - u n i o n i s m can be a s i g n o f u n i o n w e a k n e s s and c a n t h e r e f o r e l e a d t o d e c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s , w h i l e i n G r e a t B r i t a i n u n i o n r i v a l r y t e n d s t o be a s i g n o f u n i o n s t r e n g t h and c o n t r i b u t e s t o c e n t r a l i z e d s t r u c t u r e s ( H e n d r i c k s and Kahn 1 9 8 2 ) . E m p i r i c a l work l i k e t h e k i n d d e s c r i b e d above has n o t been done t o i s o l a t e and i d e n t i f y t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e i n B r i t i s h C o l u m b i a . I n s t e a d o f e m p i r i c a l s t u d i e s , a number o f c a s e s t u d i e s have been done on b a r g a i n i n g s t r u c t u r e i n v a r i o u s i n d u s t r i e s i n B r i t i s h C o l u m b i a . In t h e s e c a s e s t u d i e s , t h e v a r i a b l e s a f f e c t i n g a p a r t i c u l a r i n d u s t r y a r e e x a m i n e d i n o r d e r t o u n d e r s t a n d how t h e y i m p a c t o r d e t e r m i n e t h a t p a r t i c u l a r b a r g a i n i n g s t r u c t u r e . Case s t u d i e s , b e c a u s e t h e y a r e d e s c r i p t i v e r a t h e r t h a n q u a n t i t a t i v e i n n a t u r e , a l l o w t h e r e s e a r c h e r i n s i g h t i n t o t h e o r g a n i z a t i o n a l f o r c e s a t work i n a p a r t i c u l a r b a r g a i n i n g r e l a t i o n s h i p . T h e r e f o r e , a l t h o u g h t h e s e s t u d i e s t e n d t o be l e s s g e n e r a l i z a b l e t h a n t h e i r s t a t i s t i c a l c o u n t e r p a r t s , t h e y do p r o v i d e t h e r e a d e r w i t h an u n d e r s t a n d i n g o f t h e way t h a t o r g a n i z a t i o n a l f o r c e s i n h i b i t o r e n c o u r a g e t h e s e l e c t i o n o f c e r t a i n b a r g a i n i n g s t r u c t u r e s by t h e p a r t i e s i n a way t h a t s t a t i s t i c a l a n a l y s e s do n o t a l l o w . T h i s s e c t i o n r e v i e w s t h r e e o f t h e s e c a s e s t u d i e s w h i c h e x a m i n e , r e s p e c t i v e l y , m u n i c i p a l b a r g a i n i n g i n t h e Okanagan, 29 c o n s t r u c t i o n l a b o u r r e l a t i o n s t h r o u g h o u t t h e p r o v i n c e , and t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e i n t h e C o a s t l u m b e r i n d u s t r y . T h i s s e c t i o n c o n c l u d e s by h i g h l i g h t i n g t h e f a c t o r s and s p e c i a l c i r c u m s t a n c e s w h i c h a r e r e s p o n s i b l e f o r t h e h i g h l y c e n t r a l i z e d m u l t i - e m p l o y e r b a r g a i n i n g s t r u c t u r e s f o u n d i n B r i t i s h C o l u m b i a . B. B r i t i s h C o l u m b i a Case S t u d i e s 1. Okanagan M u n i c i p a l E m p l o y e r s L a t e i n 1967, t h e C a n a d i a n U n i o n o f P u b l i c E m p l o y e e s , w h i c h r e p r e s e n t e d t h i r t e e n m u n i c i p a l i t i e s i n t h e O k a n a g a n - M a i n l i n e r e g i o n o f t h e p r o v i n c e , i n d i c a t e d i t s i n t e n t i o n t o commence b a r g a i n i n g on an a r e a w i d e b a s i s ( M c K e l v e y 1 9 7 0 ) . The u n i o n hoped t o e s t a b l i s h p a r i t y among t h e t h i r t e e n m u n i c i p a l i t i e s t h r o u g h c e n t r a l i z e d b a r g a i n i n g . A l t h o u g h t h e e m p l o y e r s were n o t o r i g i n a l l y i n f a v o u r o f t h i s method o f c o n t r a c t n e g o t i a t i o n , t h e y r e l u c t a n t l y a g r e e d . However, t h e u n i o n and t h e e m p l o y e r b a r g a i n i n g c o m m i t t e e c o u l d n o t a g r e e upon t h e method by w h i c h p a r i t y f o r t h e e m p l o y e e s o f t h e t h i r t e e n m u n i c i p a l i t i e s w o u l d be e s t a b l i s h e d . The e m p l o y e r s were w i l l i n g t o b a s e m u n i c i p a l wage r a t e s upon t h o s e e a r n e d by e m p l o y e e s d o i n g t h e same work l o c a l l y i n t h e p r i v a t e s e c t o r . The u n i o n , on t h e o t h e r h a n d , w i s h e d t o e s t a b l i s h p a r i t y on an i t e m by i t e m b a s i s , t a k i n g t h e b e s t c l a u s e s f r o m e a c h o f t h e t h i r t e e n c o n t r a c t s t o f o r m a " s u p e r c o n t r a c t " w h i c h w o u l d t h e n be t h e m a s t e r a g r e e m e n t a p p l i e d t o a l l m u n i c i p a l e m p l o y e e s i n t h e t h i r t e e n m u n i c i p a l i t i e s ( M c K e l v e y 1 9 7 0 ) . 30 The e m p l o y e r s r e f u s e d t h i s demand and s e t a b o u t t o c o n d u c t a wage and s a l a r y s t u d y o f p r i v a t e s e c t o r e m p l o y e e s i n t h e i r r e s p e c t i v e a r e a s . However, t h e u n i o n was adamant i n i t s demand. E v e n t u a l l y , t h e two p a r t i e s became d e a d l o c k e d and t h e t h r e e l a r g e s t m u n i c i p a l i t i e s were s t r u c k by t h e i r CUPE l o c a l s . A f t e r a p r o t r a c t e d s t r i k e , t h e u n i o n a p p r o a c h e d e a c h m u n i c i p a l i t y s e p a r a t e l y t o resume b a r g a i n i n g on an i n d i v i d u a l b a s i s . The e m p l o y e r s r e f u s e d and i n t h e end t h e u n i o n l o s t , c o n c l u d i n g n e g o t i a t i o n s w i t h t h e same c o n t r a c t s w i t h w h i c h e a c h l o c a l had s t a r t e d . The o n l y c h a n g e s made were t o wage r a t e s w h i c h were t o be i n c r e a s e d by 7% i n t h e f i r s t y e a r and 8% t h e f o l l o w i n g y e a r . T h u s , no t y p e o f p a r i t y was a c h i e v e d , n o t w i t h o t h e r m u n i c i p a l e m p l o y e e s n o r w i t h p r i v a t e s e c t o r e m p l o y e e s i n t h e l o c a l a r e a . However, t h e a g r e e m e n t was c o n c l u d e d on an a r e a w i d e b a s i s . The O k a n a g a n - M a i n l i n e e m p l o y e r s were now c o n v i n c e d o f t h e b e n e f i t s o f m u l t i - e m p l o y e r b a r g a i n i n g . D e s p i t e t h e l o n g s t r i k e t h e a g r e e m e n t had f i n a l l y been s e t t l e d w i t h o u t u n i o n w h i p s a w i n g and on t h e e m p l o y e r s ' t e r m s . In 1972 t h e e m p l o y e r s a s s o c i a t i o n f o r O k a n a g a n - M a i n l i n e m u n i c i p a l e m p l o y e r s was f o r m a l l y a c c r e d i t e d and i t s t i l l b a r g a i n s on b e h a l f o f i t s members t o d a y . 2. The B.C. C o n s t r u c t i o n I n d u s t r y The c o n s t r u c t i o n i n d u s t r y i n B.C. had been r e p r e s e n t e d by s e v e r a l e m p l o y e r a s s o c i a t i o n s ( a t one t i m e as many as t w e n t y - f o u r ) , b e f o r e t h e C o n s t r u c t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n was f o r m e d 1970 (Ros e 1 9 7 6 ) . These p r e v i o u s a s s o c i a t i o n s had been 31 m i x e d a s s o c i a t i o n s w h i c h had p r o v i d e d b o t h u n i o n and n o n - u n i o n e m p l o y e r s a w i d e v a r i e t y o f s e r v i c e s i n c l u d i n g e d u c a t i o n , t r a i n i n g , and l o b b y i n g ( R o s e 1 9 7 6 ) . However, t h e y had f a i l e d d i s m a l l y i n u n d e r t a k i n g m u l t i - e m p l o y e r b a r g a i n i n g . These a s s o c i a t i o n s c o u l d n o t p r e v e n t c o n s t r u c t i o n c u s t o m e r s p r e s s u r i n g i n d i v i d u a l c o n t r a c t o r s t o l e a v e t h e a s s o c i a t i o n and c o n c l u d e a s e p a r a t e a g r e e m e n t , t h u s b e i n g a b l e t o c o m p l e t e t h e c u s t o m e r ' s p r o j e c t w i t h as l i t t l e d e l a y as p o s s i b l e . As t h e a s s o c i a t i o n had no c o n t r o l o v e r i n d i v i d u a l members, t h e r e s u l t was u n i o n w h i p s a w i n g a n d , as a c o n s e q u e n c e , e v e r upward s p i r a l l i n g c o n s t r u c t i o n c o s t s . The c e n t r a l i z a t i o n o f b a r g a i n i n g was made even more d i f f i c u l t by t h e f r a g m e n t a t i o n o f b o t h e m p l o y e r s and u n i o n s . E m p l o y e r s were f r a g m e n t e d b o t h g e o g r a p h i c a l l y and b e t ween g e n e r a l and t r a d e c o n t r a c t o r s . On t h e o t h e r s i d e o f t h e t a b l e were m y r i a d u n i o n s , e a c h one r e p r e s e n t i n g a s i n g l e l o c a l o f a s i n g l e c r a f t . In 1968 a p a r t i c u l a r l y d i s a s t r o u s r o u n d o f n e g o t i a t i o n s o c c u r r e d when t h e a s s o c i a t i o n , a t t e m p t i n g t o h o l d wage i n c r e a s e s t o t h e 6% a d v o c a t e d by t h e f e d e r a l g o v e r n m e n t g u i d e l i n e s , ended up b e i n g f o r c e d t o g r a n t i n c r e a s e s r a n g i n g f r o m 18.5 t o 38 p e r c e n t . In t h e wake o f t h i s o u t c o m e , r e a l i z i n g t h a t B.C. c o n s t r u c t i o n c o s t s were b e c o m i n g u n r e a l i s t i c and were d i s c o u r a g i n g f u r t h e r i n v e s t m e n t i n t h e p r o v i n c e , t h e E m p l o y e r s ' C o u n c i l o f B.C. began a s t u d y t o e x a m i n e ways o f i m p r o v i n g n e g o t i a t i o n s i n t h e i n d u s t r y ( R o s e 1 9 7 6 ) . The C o u n c i l ' s f i n d i n g s p o i n t e d o u t t h e a d v a n t a g e s a f o r m a l l y a c c r e d i t e d a s s o c i a t i o n 32 c o u l d p r o v i d e e m p l o y e r s . As a r e s u l t o f t h e p r o j e c t ' s f i n d i n g s , t h e C o u n c i l r e q u e s t e d t h a t t h e p r o v i n c i a l g o v e r n m e n t e n a c t a c c r e d i t a t i o n l e g i s l a t i o n . B e f o r e s u c h l e g i s l a t i o n c o u l d be p a s s e d , t h e E m p l o y e r s ' C o u n c i l o f B r i t i s h C o l u m b i a and t h e l a b o u r r e l a t i o n s c o m m i t t e e o f t h e t h e n c u r r e n t e m p l o y e r s * a s s o c i a t i o n , ACA, s e t a b o u t t o f o r m a new e m p l o y e r s " a s s o c i a t i o n t h a t w o u l d be d e d i c a t e d e n t i r e l y t o l a b o u r r e l a t i o n s . I n 1970 t h e C o n s t r u c t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n (CLRA) was f o r m e d . M e m b e r s h i p i n CLRA was open t o any c o n t r a c t o r w i l l i n g t o a s s i g n i t s b a r g a i n i n g r i g h t s t o t h e a s s o c i a t i o n . The E m p l o y e r s ' C o u n c i l assumed an a c t i v e r o l e i n e n c o u r a g i n g c o n t r a c t o r s t o j o i n a n d , i n a d d i t i o n , p u b l i s h e d g u i d e l i n e s on how p u r c h a s e r s o f c o n s t r u c t i o n c o u l d s u p p o r t CLRA members d u r i n g n e g o t i a t i o n s . P u r c h a s e r s o f c o n s t r u c t i o n were a s k e d n o t t o p r e s s u r e c o n t r a c t o r s t o b r e a k w i t h t h e a s s o c i a t i o n t o s i g n a s e p a r a t e a g r e e m e n t b u t i n s t e a d t o r e m a i n u n i t e d t o c o n c l u d e t h e a g r e e m e n t . The a s s o c i a t i o n went t h r o u g h s e v e r a l r o u n d s o f t u r b u l e n t n e g o t i a t i o n s b e f o r e a l l CLRA members had j o i n e d . Then, i n 1977, n e g o t i a t i o n s were c o m p l e t e d f o r t h e f i r s t t i m e w i t h o u t a work s t o p p a g e and t h e C o n s t r u c t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n f i n a l l y c o u l d be c o n s i d e r e d a s u c c e s s f u l v e n t u r e . 3. The C o a s t Lumber I n d u s t r y In c o n t r a s t t o t h e above m e n t i o n e d e m p l o y e r a s s o c i a t i o n s , w h i c h were f o r m e d i n t h e p a s t t w e n t y y e a r s , e m p l o y e r s i n t h e C o a s t l u m b e r i n d u s t r y have had m u l t i - e m p l o y e r b a r g a i n i n g on a 33 r e g i o n a l s c a l e s i n c e t h e 19 4 0 s . M u l t i - e m p l o y e r b a r g a i n i n g commenced i n t h e f o r e s t i n d u s t r y a f t e r t h e u n i o n i z a t i o n o f t h e m a j o r i t y o f t h e e m p l o y e e s o f t h e d o m i n a n t f o r e s t c o m p a n i e s p r i o r t o and d u r i n g t h e S e c o n d W o r l d War. E m p l o y e r s , c o n c e r n e d a b o u t t h e s h i f t i n t h e b a l a n c e o f power, r e a c t e d by f o r m i n g R.V. S t u a r t R e s e a r c h L t d . t o u n d e r t a k e n e g o t i a t i o n s on t h e i r b e h a l f . The i m p e t u s t o f o r m an e m p l o y e r s ' a s s o c i a t i o n was m a i n l y a r e s u l t o f t h e s t r e n g t h o f t h e u n i o n , t h e I n t e r n a t i o n a l W oodworkers o f A m e r i c a and t h e t h r e a t i t p o s e d t o t h e e m p l o y e r s ' power ( S a u n d e r s 1 9 7 9 ) . The IWA has been c h a r a c t e r i z e d by a m i l i t a n t h i s t o r y and by r a d i c a l l e a d e r s h i p . The i n d u s t r i a l r e l a t i o n s c l i m a t e o f t h e C o a s t l u m b e r i n d u s t r y has been marked by an i n o r d i n a t e l y h i g h d e g r e e o f l a b o u r u n r e s t . S e v e r a l l o n g s t r i k e s and h u n d r e d s o f much s m a l l e r w i l d c a t s t r i k e s have p l a g u e d t h e i n d u s t r y s i n c e t h e 19 4 0 s . The s u c c e s s o f t h e e m p l o y e r a s s o c i a t i o n , now c a l l e d F o r e s t I n d u s t r i a l R e l a t i o n s , has been t h e r e s u l t o f o r g a n i z a t i o n a l f a c t o r s . The C o a s t l u m b e r i n d u s t r y i s d o m i n a t e d by r e l a t i v e l y few e m p l o y e r s and has been so s i n c e t h e 1940s and 195 0 s . These few e m p l o y e r s , n o t a b l y t h e CEO's o f t h e t o p h a n d f u l o f f i r m s , have been c o m m i t t e d t o a s s o c i a t i o n b a r g a i n i n g as a way o f c o u n t e r a c t i n g u n i o n power ( S a u n d e r s 1 9 7 9 ) . These e m p l o y e r s a r e a b l e t o c o o r d i n a t e t h e i r a c t i o n s r e l a t i v e l y e a s i l y b e c a u s e t h e r e a r e r e l a t i v e l y few o f them and t h e y s h a r e s i m i l a r v i e w s and v a l u e s . They t h e n i n t u r n have t h e power i n t h e i n d u s t r y t o i n f l u e n c e and s u p p o r t t h e many s m a l l e m p l o y e r s who make up t h e b a l a n c e o f t h e i n d u s t r y . T h u s , u n l i k e t h e c o n s t r u c t i o n i n d u s t r y 34 where t h e r e a r e h u n d r e d s o f e m p l o y e r s ( o v e r 800 a t t h e t i m e CLRA was f i r s t f o r m e d ) , e a c h w a n t i n g t o do what i s b e s t f o r t h e m s e l v e s w i t h o u t a s t r o n g s e n s e o f t h e common g o o d , t h e C o a s t l u m b e r e m p l o y e r s have f o u n d i t much e a s i e r t o c o o r d i n a t e b a r g a i n i n g demands and t o p r e s e n t a common f r o n t d u r i n g s t r i k e s o r when l o c k i n g o u t t h e i r e m p l o y e e s . 4. C o n c l u s i o n s From t h e Case S t u d i e s E n v i r o n m e n t a l f a c t o r s a l o n e do n o t a c c o u n t f o r t h e h i g h d e g r e e o f b r o a d b a s e d b a r g a i n i n g f o u n d i n B r i t i s h C o l u m b i a . H owever, a number o f o r g a n i z a t i o n a l f o r c e s i d e n t i f i e d i n t h e above c a s e s t u d i e s h e l p t o e x p l a i n t h e e x t e n t o f b r o a d b a s e d b a r g a i n i n g f o u n d i n t h i s p r o v i n c e . S a u n d e r s ( 1 9 7 9 ) a r g u e s t h a t r a t h e r t h a n e n v i r o n m e n t a l f a c t o r s b e i n g t h e s o l e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e i n B.C. t h a t o r g a n i z a t i o n a l f a c t o r s have had a l a r g e i m p a c t i n s h a p i n g b a r g a i n i n g s t r u c t u r e s t h e r e . The e v i d e n c e f r o m t h e s e t h r e e c a s e s t u d i e s s u p p o r t s t h i s a r g u m e n t . In a l l t h r e e c a s e s o u t l i n e d a b o v e , i n a d d i t i o n t o t h e e n v i r o n m e n t a l f a c t o r s w h i c h e n c o u r a g e d t h e f o r m a t i o n o f m u l t i - e m p l o y e r s t r u c t u r e s , t h e r e were a l s o o r g a n i z a t i o n a l f o r c e s a t w o r k , w h i c h made t h e m u l t i - e m p l o y e r s t r u c t u r e s l a s t i n g a r r a n g e m e n t s . E m p l o y e r a s s o c i a t i o n s i n B.C. have f e l t t h e p r e s s u r e s o f t h i r d p a r t i e s i n c l u d i n g u n i o n s , c u s t o m e r s , t h e p r o v i n c i a l g o v e r n m e n t , and t h e B.C. E m p l o y e r s ' C o u n c i l a l l o f whom i n s i s t e d on a s s o c i a t i o n w i d e b a r g a i n i n g s t r u c t u r e s . In p a r t i t i s t h e s t r e n g t h o f t h e s e t h i r d p a r t y p r e s s u r e s t h a t c a n e x p l a i n t h e h i g h 35 d e g r e e o f b r o a d b a s e d b a r g a i n i n g f o u n d i n B r i t i s h C o l u m b i a . In a d d i t i o n , t h e r e has been s t r o n g i n t e r n a l commitment t o a s s o c i a t i o n b a r g a i n i n g by t h e e m p l o y e r s t h e m s e l v e s w h i c h has been d e m o n s t r a t e d by t h e i r w i l l i n g n e s s t o p u t t h e g r o u p ' s i n t e r e s t s b e f o r e t h o s e o f t h e i n d i v i d u a l s . F i n a l l y , t h e g o v e r n m e n t ' s d e m o n s t r a t e d commitment t o b r o a d b a s e d b a r g a i n i n g i s r e f l e c t e d i n t h e a c c r e d i t a t i o n l e g i s l a t i o n i t e n a c t e d i n 1970 and w h i c h i t a c t i v e l y e n c o u r a g e d e m p l o y e r s t o use a f t e r t h e e n a c t m e n t o f t h e 1973 L a b o u r Code. In M c K e l v e y ' s ( 1 9 7 0 ) s t u d y o f m u n i c i p a l b a r g a i n i n g i n O k a n a g a n - M a i n l i n e , t h e i n i t i a l i m p e t u s t o b a r g a i n on an a r e a w i d e b a s i s came f r o m t h e u n i o n . The u n i o n had hoped t h a t c e n t r a l i z e d b a r g a i n i n g w o u l d a c c o m p l i s h i t s o b j e c t i v e o f p a r i t y f o r i t s members i n a l l t h i r t e e n o f t h e m u n i c i p a l i t i e s . However, r a t h e r t h a n g a i n i n g t h e b e s t c l a u s e s f r o m t h e t h i r t e e n o r i g i n a l c o n t r a c t s , t h e u n i o n was s t y m i e d by t h e c o h e s i o n o f t h e e m p l o y e r s ' r e s i s t a n c e and was t h e n l e f t w i t h o u t t h e o p p o r t u n i t y t o w h i psaw t h e e m p l o y e r s and l e a p f r o g one s e t t l e m e n t o v e r t h e l a s t . In t h i s c a s e , what t h e u n i o n hoped w o u l d be a b a r g a i n i n g s t r u c t u r e t o g e t what i t w a n t e d t u r n e d o u t i n s t e a d t o g i v e t h e b a l a n c e o f power t o t h e m u n i c i p a l e m p l o y e r s . From t h a t p o i n t , t h e e m p l o y e r s have been c o n v i n c e d o f t h e power a d v a n t a g e c e n t r a l i z e d b a r g a i n i n g g i v e s them. R o s e ' s ( 1 9 7 6 ) d e s c r i p t i o n o f t h e f o r m a t i o n o f CLRA c l e a r l y a t t r i b u t e s t h e a s s o c i a t i o n ' s s u c c e s s f u l f o r m a t i o n t o t h e d r i v i n g f o r c e o f a t h i r d p a r t y . The E m p l o y e r s ' C o u n c i l was p i v o t a l i n t h e f o r m a t i o n o f t h e a s s o c i a t i o n . Not o n l y d i d t h e C o u n c i l 36 i n v e s t i g a t e p o s s i b l e s o l u t i o n s t o t h e i n d u s t r y ' s p r o b l e m s o f l a b o u r u n r e s t and i n c r e a s i n g l a b o u r c o s t s , b u t i t a l s o h e l p e d i m p l e m e n t t h e c h o s e n s o l u t i o n by e n c o u r a g i n g c o n t r a c t o r s t o j o i n t h e new a s s o c i a t i o n and by e d u c a t i n g c o n s u m e r s o f c o n s t r u c t i o n work as t o how t o s u p p o r t c o n t r a c t o r s d u r i n g c o n s t r u c t i o n n e g o t i a t i o n s . S a u n d e r s ( 1 9 7 9 ) , w r i t i n g a b o u t g r o u p b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y i d e n t i f i e s t h e i m p o r t a n c e o f h i g h l e v e l c o r p o r a t e commitment f r o m e m p l o y e r s i n t h e a s s o c i a t i o n as a d e t e r m i n i n g f a c t o r as t o w h e t h e r t h e o r g a n i z a t i o n r e m a i n s t o g e t h e r i n t h e l o n g r u n . In t h e C o a s t l u m b e r c a s e s t u d y t h e commitment t o f o r m and r e m a i n i n what was o r i g i n a l l y a v o l u n t a r y a s s o c i a t i o n o r i g i n a t e d a t t h e t o p , among t h e c h i e f e x e c u t i v e o f f i c e r s o f t h e m a j o r f o r e s t p r o d u c t c o m p a n i e s ( S a u n d e r s 1 9 7 9 ) . I t i s t h e c o m b i n a t i o n o f e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s b o t h w o r k i n g t o e n c o u r a g e t h e f o r m a t i o n o f m u l t i - e m p l o y e r b a r g a i n i n g s t r u c t u r e s t h a t c a n a c c o u n t f o r t h e h i g h d e g r e e o f b r o a d b a s e d b a r g a i n i n g f o u n d i n B r i t i s h C o l u m b i a . W i t h o u t t h e p r e s e n c e o f t h e s e s p e c i a l o r g a n i z a t i o n a l p r e s s u r e s s u c h as a c c r e d i t a t i o n l e g i s l a t i o n , commitment f r o m e m p l o y e r s a t t h e h i g h e s t l e v e l s t o make m u l t i - e m p l o y e r b a r g a i n i n g w o r k , and t h e e n c o u r a g e m e n t o f t h i r d p a r t i e s a f f e c t e d by l a b o u r u n r e s t t o b a r g a i n i n an a s s o c i a t i o n w i d e f o r m a t , b a r g a i n i n g s t r u c t u r e i n B r i t i s h C o l u m b i a n w o u l d l i k e l y be much more d e c e n t r a l i z e d t h a n i t i s t o d a y . 37 I V . Summary and C o n c l u s i o n T h e r e a r e two m a j o r d i f f i c u l t i e s w i t h t h e s t u d y o f b a r g a i n i n g s t r u c t u r e w h i c h h i n d e r t h e f o r m u l a t i o n o f a g e n e r a l t h e o r y o f t h e d e t e r m i n a n t s and e f f e c t s o f b a r g a i n i n g s t r u c t u r e . F i r s t , t h e r e a r e m e t h o d o l o g i c a l p r o b l e m s w h i c h a r e n o t u n i q u e t o t h e s t u d y o f b a r g a i n i n g s t r u c t u r e b u t w h i c h make f u r t h e r l e a r n i n g p r o b l e m a t i c . These a r e d i s c u s s e d i n d e t a i l b e l o w . S e c o n d , t h e v a r i a b l e i t s e l f i s more c o m p l e x t h a n o r i g i n a l l y t h o u g h t . More r e s e a r c h n eeds t o be c o n d u c t e d on b a r g a i n i n g s t r u c t u r e and i t s r o l e as an i n t e r v e n i n g o r m e d i a t i n g v a r i a b l e b e f o r e we can c o n f i d e n t l y p r e d i c t i t s d e t e r m i n a n t s o r t h e b a r g a i n i n g o u t c o m e s i t e l i c i t s . T h e r e a r e t h r e e m a j o r m e t h o d o l o g i c a l p r o b l e m s w h i c h f a c e r e s e a r c h e r s . F i r s t , t h e r e i s a l a c k o f s u f f i c i e n t q u a l i t a t i v e i n f o r m a t i o n p e r t a i n i n g t o b a r g a i n i n g s t r u c t u r e ( D e a t o n and Beaumont 1 9 8 0 ) . D e a t o n and Beaumont ( 1 9 8 0 ) n o t e d t h a t a s i g n i f i c a n t amount o f e x p l a n a t o r y power came f r o m t h e i n d u s t r y dummy v a r i a b l e s t h e y u s e d i n t h e i r r e g r e s s i o n e q u a t i o n s . These dummy v a r i a b l e s were u s e d as p r o x i e s f o r i n f o r m a t i o n t h a t was u n a v a i l a b l e t o t h e r e s e a r c h e r s s u c h as company l e v e l r a t h e r t h a n p l a n t l e v e l d a t a on c o s t s , number o f e m p l o y e e s , e t c . T h i s a d d i t i o n a l i n f o r m a t i o n m i g h t have i n c r e a s e d t h e s i g n i f i c a n c e o f t h e i r f i n d i n g s as t o t h e c h o i c e b e t w e e n s i n g l e o r m u l t i - e s t a b l i s h m e n t s t r u c t u r e s by e m p l o y e r s . F u r t h e r m o r e , even i f t h e i n f o r m a t i o n i s a v a i l a b l e , t h e p r o b l e m o f how t o i n c o r p o r a t e what a r e o f t e n h i s t o r i c a l , q u a l i t a t i v e , and i n t a n g i b l e v a r i a b l e s i n t o q u a n t i t a t i v e a n a l y s e s r e m a i n s . 38 A n o t h e r d i f f i c u l t y a s s o c i a t e d w i t h t h e s t u d y o f b a r g a i n i n g s t r u c t u r e i s t h e c o m p l e x i t y o f t h e r e l a t i o n s h i p s b a r g a i n i n g s t r u c t u r e has w i t h o t h e r v a r i a b l e s . E n v i r o n m e n t a l d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e a c t i n c o m b i n a t i o n so t h a t e a c h new c o m b i n a t i o n and p e r m u t a t i o n has a s l i g h t l y d i f f e r e n t i n f l u e n c e t h a n t h e l a s t . T h i s p r e v e n t s r e s e a r c h e r s f r o m m a k i n g c l e a r t h e o r e t i c a l p r e d i c t i o n s . F o r e x a m p l e , "a p o o r economy l e a d s t o d e c e n t r a l i z e d b a r g a i n i n g " may n o t a l w a y s be t h e c a s e . One must a l s o o b s e r v e t h e i n d u s t r y , t h e u n i o n d e n s i t y , t h e u n i o n m i l i t a n c y , t h e d e g r e e o f c o m p e t i t i o n i n t h e p r o d u c t m a r k e t , and so f o r t h . P e r r y and A n g l e ( 1 9 8 1 ) comment t h a t i t i s l i k e l y t h a t t o o many v a r i a b l e s i n t e r v e n e i n t h e r e l a t i o n s h i p b e t w e e n t h e e n v i r o n m e n t , b a r g a i n i n g s t r u c t u r e , and o u t c o m e s f o r t h e r e l a t i o n s h i p s t o be c o n c e p t u a l i z e d as s i m p l y as t h e y o f t e n a r e . I d e n t i f y i n g a l l o f t h e p o s s i b l e i n t e r v e n i n g v a r i a b l e s does n o t c o m p l e t e l y s o l v e t h e p r o b l e m . S o m e t h i n g t h e n must be done t o c o n t r o l f o r t h e i r e f f e c t s w h i l e s t u d y i n g b a r g a i n i n g s t r u c t u r e . T h i s has p r o v e n t o be t h e more d i f f i c u l t p a r t o f t h e s o l u t i o n . Too many i m p o r t a n t v a r i a b l e s , i n c l u d i n g o r g a n i z a t i o n a l f o r c e s , a r e d i f f i c u l t t o measure r e l i a b l y . O r g a n i z a t i o n a l v a r i a b l e s s u c h as t h e s i z e and c o h e s i v e n e s s o f t h e e m p l o y e r s , t h e d e g r e e t o w h i c h g o v e r n m e n t e n c o u r a g e s c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s and o t h e r q u a l i t a t i v e v a r i a b l e s s u c h as t h e d e g r e e o f u n i o n p o l i t i c a l r i v a l r y , and t h e i m p o r t a n c e o f p a t t e r n s n e g o t i a t e d e l s e w h e r e o f t e n c a n n o t be r e a d i l y o b s e r v e d by t h e r e s e a r c h e r ( L e v i n s o n 1 9 6 6 ) . 39 The n e x t two c h a p t e r s a t t e m p t t o overcome some o f t h e d i f f i c u l t i e s o u t l i n e d a b o v e . They d e s c r i b e t h e B.C. f o r e s t p r o d u c t s i n d u s t r y and p r e s e n t q u a l i t a t i v e i n f o r m a t i o n a b o u t t h e u n i o n s , e m p l o y e r s , and e m p l o y e r a s s o c i a t i o n s w o r k i n g i n i t as w e l l as d e s c r i b e t h e p a r t i e s ' i n t e r r e l a t i o n s h i p s . W i t h t h i s i n f o r m a t i o n i t i s hoped t h a t a more c o m p l e t e u n d e r s t a n d i n g o f t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a c a n be had. 40 CHAPTER THREE: THE FOREST PRODUCTS INDUSTRY OF B.C. AND ITS INDUSTRIAL RELATIONS ENVIRONMENT I . I n t r o d u c t i o n As s t a t e d i n t h e i n t r o d u c t i o n t o t h i s p a p e r , t h e o b j e c t i v e o f t h i s r e s e a r c h i s t o d e t e r m i n e w h e t h e r t h e e n v i r o n m e n t a l and o r g a n i z a t i o n a l c h a n g e s p r e v a l e n t i n t h e i n d u s t r i a l r e l a t i o n s e n v i r o n m e n t o f t h e 1980s b r o u g h t a b o u t s i g n i f i c a n t c h a n g e s i n t h e b a r g a i n i n g s t r u c t u r e o f B.C.'s f o r e s t p r o d u c t s i n d u s t r y . The p r e v i o u s c h a p t e r o u t l i n e d t h e v a r i o u s t y p e s o f b a r g a i n i n g s t r u c t u r e s , t h e i r t h e o r e t i c a l d e t e r m i n a n t s , and how b a r g a i n i n g s t r u c t u r e c a n a f f e c t t h e b a l a n c e o f power between t h e n e g o t i a t i n g p a r t i e s . The p u r p o s e o f t h i s c h a p t e r i s t o d e s c r i b e t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a i n o r d e r t o u n d e r s t a n d how t h e s e t h e o r e t i c a l d e t e r m i n a n t s may be e x p e c t e d t o a f f e c t t h e b a r g a i n i n g s t r u c t u r e c h o i c e s o f t h e p a r t i e s i n v o l v e d . The c h a p t e r b e g i n s w i t h a d e s c r i p t i o n o f t h e e c o n o m i c e n v i r o n m e n t o f t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a and i n c l u d e s a d e s c r i p t i o n o f t h e i n d u s t r y and a d i s c u s s i o n o f i t s i m p o r t a n c e t o t h e p r o v i n c e . The s e c o n d s e c t i o n d e a l s w i t h t h e c o m p e t i t i v e e n v i r o n m e n t o f t h e f o r e s t p r o d u c t s i n d u s t r y . I t c o n t a i n s a d e s c r i p t i o n o f t h e s t r u c t u r e s o f e a c h o f t h e component i n d u s t r i e s : l o g g i n g , s a w m i l l i n g , and p u l p and p a p e r p r o d u c t i o n ; and a d i s c u s s i o n o f 41 t h e c o m p e t i t i v e n e s s o f b o t h t h e t i m b e r and p r o d u c t m a r k e t s . T h i r d , t h e p o l i t i c a l e n v i r o n m e n t a f f e c t i n g t h e i n d u s t r y i s d e s c r i b e d f o c u s s i n g i n p a r t i c u l a r on t h e g o v e r n m e n t ' s i n t e r v e n t i o n i n t h e i n d u s t r y ' s l a b o u r r e l a t i o n s . The c h a p t e r c o n c l u d e s w i t h a d i s c u s s i o n o f t h e l e g a l e n v i r o n m e n t and h i g h l i g h t s r e c e n t c h a n g e s i n b o t h a c c r e d i t a t i o n and p i c k e t i n g l e g i s l a t i o n . I I . The E c o n o m i c E n v i r o n m e n t A. D e s c r i p t i o n o f The I n d u s t r y The f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a i s c o m p r i s e d o f t h r e e s e p a r a t e i n d u s t r i e s ( l o g g i n g , p u l p and p a p e r , and wood p r o d u c t s - t h e l a r g e s t component o f t h e l a t t e r b e i n g s a w m i l l i n g ) , and can be p h y s i c a l l y d i v i d e d i n t o two d i s t i n c t r e g i o n s : t h e C o a s t and t h e I n t e r i o r . These two r e g i o n s d i f f e r t o s u c h an e x t e n t t h a t p r o d u c t i o n and o t h e r s t a t i s t i c s c o l l e c t e d by p r o v i n c i a l and f e d e r a l g o v e r n m e n t s a r e c o l l e c t e d s e p a r a t e l y f o r t h e two a r e a s . The C o a s t r e g i o n i n c l u d e s V a n c o u v e r I s l a n d and t h e a r e a w e s t o f t h e C o a s t m o u n t a i n r a n g e , f r o m V a n c o u v e r t o t h e A l a s k a n b o r d e r . The I n t e r i o r i s t h e r e s t o f t h e p r o v i n c e and i t i s d i v i d e d r o u g h l y i n t h i r d s : t h e s o u t h , c e n t r a l , and n o r t h e r n i n t e r i o r r e g i o n s . The s e p a r a t i o n o f t h e two r e g i o n s can be a t t r i b u t e d t o s e v e r a l f a c t o r s . F i r s t , t h e C o a s t and t h e I n t e r i o r a r e two d i s t i n c t c l i m a t i c z o n e s w h i c h c r e a t e s d i f f e r e n c e s i n a number o f a r e a s . D i f f e r e n t t r e e s p e c i e s d o m i n a t e i n e a c h r e g i o n ( h e m l o c k , c e d a r and f i r on t h e C o a s t and s p r u c e , p i n e and f i r 42 i n t h e I n t e r i o r ) . L o n g e r , h a r s h e r w i n t e r s i n t h e I n t e r i o r a l s o mean h a r v e s t i n g s e a s o n s d i f f e r b e t ween t h e two r e g i o n s . C o a s t l o g g i n g c a n p r o c e e d u n i n t e r r u p t e d f o r most o f t h e y e a r b e c a u s e o f t h e m i l d e r w i n t e r s t h e r e . In t h e I n t e r i o r h o w e v e r , h e a v y s n o w f a l l can mean weeks o r months o f l a y o f f f o r l o g g e r s . H a r s h e r c l i m a t i c c o n d i t i o n s and a s h o r t e r g r o w i n g s e a s o n a l s o mean t h a t t r e e s o f t h e same age a r e s m a l l e r i n t h e I n t e r i o r t h a n on t h e C o a s t and t h i s , as w e l l as d i f f e r e n c e s i n t e r r a i n , e n t a i l s t h e use o f d i f f e r e n t h a r v e s t i n g s t r a t e g i e s and d i f f e r e n t s a w m i l l i n g f a c i l i t i e s and e q u i p m e n t . S e c o n d , up u n t i l t h e mid 1 9 5 0 s , t h e I n t e r i o r was i s o l a t e d f r o m t h e C o a s t due t o t h e l a c k o f a c o m p l e t e d r a i l l i n k ( B e r n s o h n 1 9 8 1 ) . As a r e s u l t , t h e m a r k e t s f o r i n t e r i o r wood p r o d u c t s d i f f e r e d f r o m t h e m a r k e t s t o w h i c h c o a s t a l p r o d u c e r s s o l d . E m p l o y e r s on t h e C o a s t u s e d w a t e r t r a n s p o r t a t i o n t o t a k e t h e i r f i n i s h e d p r o d u c t t o t h e A m e r i c a n m a r k e t . I n t e r i o r e m p l o y e r s , who were e f f e c t i v e l y c u t o f f f r o m t h e C o a s t and i t s c h eap w a t e r t r a n s p o r t a t i o n , i n s t e a d t r a n s p o r t e d much o f t h e i r p r o d u c t by r a i l t o t h e C a n a d i a n p r a i r i e p r o v i n c e s ( B e r n s o h n 1 9 8 1 ) . T h i r d , t h e number and s i z e o f l o g g i n g and s a w m i l l i n g o p e r a t i o n s d i f f e r s b e t ween t h e two r e g i o n s . Today t h e r e a r e a p p r o x i m a t e l y two l o g g i n g and s a w m i l l i n g o p e r a t i o n s i n t h e I n t e r i o r f o r e v e r y one on t h e C o a s t . However, c o a s t a l o p e r a t i o n s a r e a b o u t t w i c e t h e a v e r a g e s i z e o f t h o s e i n t h e I n t e r i o r . C o a s t a l o p e r a t i o n s have a l s o been i n t e g r a t e d w i t h p u l p and p a p e r o p e r a t i o n s f o r l o n g e r t h a n have i n t e r i o r 43 o p e r a t i o n s . P u l p and p a p e r p r o d u c t i o n o n l y began i n t h e I n t e r i o r i n t h e l a t e 1 9 5 0 s . B. Dependence o f B.C. on t h e F o r e s t P r o d u c t s I n d u s t r y Canada i s t h e w o r l d ' s l a r g e s t p r o d u c e r o f n e w s p r i n t , s e c o n d l a r g e s t p r o d u c e r o f wood p u l p , and t h e t h i r d l a r g e s t p r o d u c e r o f sawn l u m b e r ( S t a t i s t i c s Canada 1 9 8 6 ) . B r i t i s h C o l u m b i a p l a y s a m a j o r r o l e i n t h i s a c c o m p l i s h m e n t . In 1986 B.C. f o r e s t s a c c o u n t e d f o r 4 8 % o f a l l l o g s h a r v e s t e d i n C a n a d a . The p r o v i n c e ' s l u m b e r m i l l s p r o d u c e d n e a r l y 6 0 % o f a l l l u m b e r sawn i n Canada and a c c o u n t e d f o r 6 4 % o f a l l l u m b e r e x p o r t s . B r i t i s h C o l u m b i a p r o d u c e d 3 0 % and e x p o r t e d 4 5 % o f a l l C a n a d i a n wood p u l p . The l a r g e s t m a r k e t s f o r B.C. f o r e s t p r o d u c t s a r e t h e U n i t e d S t a t e s , J a p a n , and t h e E u r o p e a n E c o n o m i c Community where r e s p e c t i v e l y 7 7 % , 1 1 % , and 9% o f e x p o r t s were s e n t i n 1986 ( P e r c y 1 9 8 6 ) . F o r e s t r y i s t h e number one p r i m a r y i n d u s t r y i n t h e p r o v i n c e . In 1987 i t was e s t i m a t e d t h a t a minimum o f one f i f t h o f a l l j o b s i n B r i t i s h C o l u m b i a owed t h e i r e x i s t e n c e t o t h e f o r e s t i n d u s t r y e i t h e r d i r e c t l y o r i n d i r e c t l y . ( M a c M i l l a n - B l o e d e l A n n u a l R e p o r t 1988) Employment can be d i v i d e d i n t o t h r e e s e c t o r s : d i r e c t , i n d i r e c t , and i n d u c e d . D i r e c t employment i s t h a t w h i c h i s i n t h e f o r e s t p r o d u c t s i n d u s t r y , e x t r a c t i n g o r r e f i n i n g f o r e s t p r o d u c t s . I n d i r e c t employment i s d e f i n e d as employment t h a t i s c r e a t e d by t h e p u r c h a s e o f goods and s e r v i c e s t o s u p p o r t f o r e s t i n d u s t r y o p e r a t i o n s . E m p l o y e e s o f t h e B.C. F o r e s t S e r v i c e , t h o s e e m p l o y e d i n t h e 44 t r a n s p o r t a t i o n o f l o g s , l u m b e r , o r p u l p , and t h o s e i n v o l v e d i n t h e c o n s t r u c t i o n o f m i l l s , l o g g i n g camps, o r l o g g i n g r o a d s a r e a l l c o n s i d e r e d t o be e m p l o y e d i n d i r e c t l y i n t h e f o r e s t i n d u s t r y . I n d u c e d employment r e s u l t s f r o m t h e demand by t h o s e e m p l o y e d d i r e c t l y o r i n d i r e c t l y i n t h e f o r e s t i n d u s t r y f o r c o nsumer goods and s e r v i c e s . The r a t i o i n most s m a l l t o medium s i z e d towns between d i r e c t and i n d i r e c t employment t o i n d u c e d employment i s a p p r o x i m a t e l y one t o one (Reed 1 9 7 5 ) . The r o u g h e s t i m a t e t h a t t w e n t y p e r c e n t o f a l l j o b s i n B.C. r e l y upon t h e f o r e s t i n d u s t r y f o r t h e i r e x i s t e n c e h o w e v e r , p r o m o t e s a somewhat m i s l e a d i n g image o f t h e i m p a c t o f t h e f o r e s t i n d u s t r y upon t h e e c o n o m i c h e a l t h o f B r i t i s h C o l u m b i a . F o r e s t i n d u s t r y o c c u p a t i o n s a r e n o t e v e n l y d i s t r i b u t e d t h r o u g h o u t t h e p r o v i n c e . A much g r e a t e r p r o p o r t i o n o f j o b s d e p e n d e n t upon t h i s i n d u s t r y a r e l o c a t e d i n t h e s m a l l e r c e n t r e s o f B.C. where e n t i r e towns o f t e n r e l y on l o g g i n g o r m i l l i n g f o r t h e i r l i v e l i h o o d . F o r t h i s r e a s o n , c y c l i c a l d o w n t u r n s o r p r o t r a c t e d l a b o u r d i s p u t e s c a n have a d e v a s t a t i n g e f f e c t upon many o f t h e s m a l l e r c o m m u n i t i e s o f B r i t i s h C o l u m b i a . P o r t A l b e r n i on V a n c o u v e r I s l a n d and P r i n c e G e o rge i n t h e I n t e r i o r o f t h e p r o v i n c e a r e two e x a m p l e s o f c o m m u n i t i e s i n w h i c h more t h a n h a l f t h e r e s i d e n t s r e l y upon employment i n t h e f o r e s t p r o d u c t s i n d u s t r y ( P e r c y 1 9 8 6 ) . 45 I I I . The C o m p e t i t i v e E n v i r o n m e n t A. I n d u s t r y S t r u c t u r e The f i r s t l o g g i n g and s a w m i l l i n g o p e r a t i o n s were e s t a b l i s h e d i n t h e l a t t e r h a l f o f t h e n i n e t e e n t h c e n t u r y a r o u n d what i s t o d a y V a n c o u v e r and on t h e s o u t h e r n t i p o f V a n c o u v e r I s l a n d . I t was h e r e t o o t h a t t h e f i r s t p u l p and p a p e r m i l l s were b u i l t . The l u m b e r i n d u s t r y was e s t a b l i s h e d i n t h e I n t e r i o r i n t h e 1 9 2 0 s . The number o f l o g g i n g o p e r a t i o n s and s a w m i l l s i n B r i t i s h C o l u m b i a grew s p o r a d i c a l l y d u r i n g t h e e a r l y y e a r s , t h e number o f m i l l s g r o w i n g r a p i d l y when l u m b e r p r i c e s r o s e , and many m i l l s c l o s i n g when p r i c e s f e l l . A f t e r t h e end o f t h e S e c o n d W o r l d War t h e r e was a s h a r p i n c r e a s e i n t h e number o f o p e r a t i n g s a w m i l l s , n o t a b l y i n t h e I n t e r i o r where t h e c o m p l e t i o n o f t h e r a i l l i n k b e t ween P r i n c e George i n t h e c e n t r a l I n t e r i o r and V a n c o u v e r on t h e C o a s t i n 1952 gave o p e r a t o r s i n t h e I n t e r i o r c o s t e f f e c t i v e a c c e s s t o t h e l a r g e A m e r i c a n m a r k e t ( B e r n s o h n 1 9 8 1 ) . [ i n s e r t T a b l e IV a b o u t h e r e ] 46 T a b l e IV Lumber P r o d u c t i o n B.C. C o a s t Y e a r Number o f E s t a b l i s h m e n t s 1951 * 1 9 5 5 * * 1960* * 1965 103 1970 86 1975 92 1980 119 1985 120 Number o f E m p l o y e e s * * * 12,021 11,727 9, 122 12,963 9,119 O u t p u t ( i n Mfbm) 2,519,528 2,756,096 2,849,803 3,649,485 3,789,609 2,500,600 4,247,000 3,641,825 Y e a r 1951 1955 1960 1965 1970 1975 1980 1985 Number o f E s t a b l i s h m e n t s * * * 563 308 228 236 229 B.C. I n t e r i o r Number o f E m p l o y e e s * * 13,139 11,864 12,467 18,007 15,683 O u t p u t ( i n Mfbm) 1,294,349 2,158,189 2,455,315 3,800,000 3,867,078 4,944,695 7,704,600 9,969,523 d a t a n o t a v a i l a b l e f o r t h e s e y e a r s S o u r c e : S t a t i s t i c s C a n a d a , C a n a d i a n F o r e s t r y S t a t i s t i c s , M i n i s t e r o f S u p p l y and S e r v i c e s , v a r i o u s y e a r s . 47 Most o f t h e s e m i l l s were s m a l l , many e m p l o y i n g no more t h a n t e n o r f i f t e e n men and p r o d u c i n g o n l y a few t h o u s a n d b o a r d f e e t o f l u m b e r p e r day ( B e r n s o h n 1 9 8 1 ) . C e n t r a l i z a t i o n began as t h e i n d u s t r y e n t e r e d t h e 1960s and c o m p e t i t i o n f o r t i m b e r r i g h t s became f i e r c e . At t h i s t i m e t h e g o v e r n m e n t e s t a b l i s h e d a c o m p l i c a t e d q u o t a s y s t e m w h i c h e n c o u r a g e d l a r g e r , more e f f i c i e n t o p e r a t i o n s . D u r i n g t h i s p e r i o d t h e p u l p and p a p e r i n d u s t r y was b e i n g e s t a b l i s h e d i n t h e I n t e r i o r . In o r d e r t o e n s u r e a d e q u a t e raw m a t e r i a l f o r t h e new p u l p m i l l s w i t h o u t r e s o r t i n g t o l o g s t h a t c o u l d be o t h e r w i s e u s e d f o r l u m b e r , t h e g o v e r n m e n t e s t a b l i s h e d a g r a n t i n g s y s t e m t h a t f a v o u r e d e f f i c i e n t u t i l i z a t i o n o f f o r e s t r e s o u r c e s . E a c h s a w m i l l was a l l o c a t e d a p e r c e n t a g e o f t h e a n n u a l a l l o w a b l e c u t , e s t a b l i s h e d e a c h y e a r by t h e B.C. F o r e s t S e r v i c e . E x t r a amounts were a l s o a v a i l a b l e as a bonus o r r e w a r d i f t h e s a w m i l l i n s t a l l e d b a r k e r s and c h i p p e r s ( t o d e b a r k l o g s and t u r n w a s t e p r o d u c t s i n t o c h i p s r e a d y f o r use i n p u l p p r o d u c t i o n ) and c o u l d p r o d u c e 25,000 b o a r d f e e t i n an e i g h t h o u r s h i f t . I f a s a w m i l l owner a g r e e d t o meet t h i s p r o d u c t i o n g o a l and i n s t a l l e d b a r k e r s and c h i p p e r s t o make e f f e c t i v e use o f ev e n t h e s m a l l e s t t r e e s i n h i s o r i g i n a l t i m b e r g r a n t by g r i n d i n g them up t o be u s e d as raw m a t e r i a l f o r p u l p and p a p e r p r o d u c t i o n , h i s a l l o w a b l e h a r v e s t c o u l d be up t o one t h i r d more t h a n t h e r e g u l a r q u o t a . However, an o p e r a t o r ' s q u o t a r e m a i n e d a f i x e d p e r c e n t o f t h e a n n u a l a l l o w a b l e h a r v e s t . In o r d e r t o e x p a n d , an o p e r a t o r needed a c c e s s t o more t i m b e r and 48 s i n c e e a c h o p e r a t o r ' s p e r c e n t a g e was f i x e d , t h e o n l y a l t e r n a t i v e was t o a c q u i r e a n o t h e r s a w m i l l and assume c o n t r o l o f i t s q u o t a as w e l l . As a r e s u l t o f t h i s g o v e r n m e n t p r e s s u r e f o r c l o s e u t i l i z a t i o n o f t h e f o r e s t r e s o u r c e , f a r s e e i n g o p e r a t o r s began t o i n t e g r a t e t h e i r o p e r a t i o n s . I n c r e a s i n g l y s m a l l e r t r e e s were b e i n g u s e d i n t h e p r o d u c t i o n o f l u m b e r and many more were b e i n g c h i p p e d and t h e c h i p s s o l d t o p u l p and p a p e r m i l l s . In t h i s way t h e g o v e r n m e n t e n c o u r a g e d t h e i n v e s t m e n t i n p u l p and p a p e r m i l l s and e n c o u r a g e d t h e c e n t r a l i z a t i o n as w e l l as t h e d i v e r s i f i c a t i o n and i n t e g r a t i o n o f t h e i n d u s t r y . Most o f t h e l a r g e f o r e s t p r o d u c t s c o m p a n i e s o p e r a t i n g i n B r i t i s h C o l u m b i a t o d a y , M a c M i l l a n B l o e d e l , CANFOR, F l e t c h e r C h a l l e n g e C a n a d a , Weldwood, and C r e s t w o o d , a r e h o r i z o n t a l l y and v e r t i c a l l y i n t e g r a t e d . These c o m p a n i e s p o s s e s s l a r g e t i m b e r r e s e r v e s w h i c h t h e y h a r v e s t and f r o m w h i c h t h e y p r o d u c e f i n i s h e d l u m b e r and p u l p a n d / o r n e w s p r i n t . S e v e r a l a d v a n t a g e s a c c r u e t o t h e s e i n t e g r a t e d c o m p a n i e s . F i r s t , as d i s c u s s e d a b o v e , i n t e g r a t e d c o m p a n i e s ca n p u t t h e g o v e r n m e n t ' s c l o s e u t i l i z a t i o n p o l i c i e s i n t o p r a c t i c e and make more e f f i c i e n t use o f t h e r e s o u r c e s a v a i l a b l e t o them. S m a l l e r l o g s , n o t f i t f o r l u m b e r p r o d u c t i o n a r e u s e d i n p u l p p r o d u c t i o n . In a d d i t i o n , much o f t h e w a s t e p r o d u c t f r o m l u m b e r p r o d u c t i o n c a n be u s e d as raw m a t e r i a l i n t h e p r o d u c t i o n o f p u l p and n e w s p r i n t . As l e s s t h a n 5 0 % o f a raw l o g can be t u r n e d i n t o l u m b e r t h i s c o s t e f f e c t i v e use o f w a s t e p r o d u c t s adds much t o a company's e f f i c i e n c y . S e c o n d , d i v e r s i f i e d c o m p a n i e s a r e l e s s e x p o s e d t o 49 f i n a n c i a l r i s k due t o t h e d o w n t u r n i n one c o m m o d i t y m a r k e t . The m a r k e t p r i c e s o f l u m b e r and p u l p a r e g e n e r a l l y n o t r e l a t e d ( F o r e s t P r o d u c t s Group 1 9 7 8 ) . The g r o w t h o f t h e s e l a r g e i n t e g r a t e d f i r m s w h i c h have i n v e s t e d i n and b u i l t p u l p and p a p e r m i l l s has a l s o h e l p e d many s m a l l e r s a w m i l l s s t a y i n b u s i n e s s . The s a l e o f t h e i r w a s t e p r o d u c t s i n t h e f o r m o f c h i p s can make t h e d i f f e r e n c e b e t w e e n f a i l u r e and s u r v i v a l when l u m b e r m a r k e t s a r e s o f t . S a l e s o f c h i p s f r o m wood w a s t e c a n r e p r e s e n t 2 0 - 3 0 % o f a m i l l ' s r e v e n u e ( F o r e s t P r o d u c t s Group 1 9 7 8 ) . D e s p i t e t h i s added s o u r c e o f p o t e n t i a l r e v e n u e , f e w e r s m a l l s a w m i l l s e x i s t t o d a y t h a n two d e c a d e s ago. The t o t a l s h a r e o f i n d u s t r y s h i p m e n t s by s a w m i l l s w i t h f e w e r t h a n f i f t y e m p l o y e e s has f a l l e n f r o m 3 5 % i n 1963 t o 12% i n 1976 ( F o r e s t P r o d u c t s Group 1 9 7 8 ) . The number o f s a w m i l l s o p e r a t i n g i n B.C. has d e c l i n e d c o n t i n u o u s l y s i n c e t h e 1 9 5 0 s . In 1962 t h e r e were 1627 m i l l s i n o p e r a t i o n , i n 1971 t h e r e were 6 2 7 , and i n 1988 o n l y 216 m i l l s r e m a i n e d ( S t a t i s t i c s C a n a d a , v a r i o u s y e a r s ) . D e s p i t e t h e d e c l i n e i n t h e number o f m i l l s , o u t p u t more t h a n d o u b l e d b e t ween 1965 and 1987 f r o m 7,449 m i l l i o n b o a r d f e e t p e r y e a r t o 15,888 m i l l i o n b o a r d f e e t . A l t h o u g h t h e number o f l u m b e r m i l l s has d e c r e a s e d o v e r t i m e and a v e r a g e p r o d u c t i o n f i g u r e s have c l i m b e d d r a m a t i c a l l y , t h e l u m b e r i n d u s t r y i s n o t an o l i g o p o l y i n w h i c h a few v e r y l a r g e f i r m s c o n t r o l t h e e n t i r e m a r k e t . I n s t e a d , t h e i n d u s t r y i s f r a g m e n t e d : a s m a l l m i n o r i t y o f c o m p a n i e s c o n t r o l one h a l f o f t h e m a r k e t w h i l e a g r e a t many s m a l l c o m p a n i e s p r o d u c e t h e 50 o t h e r h a l f o f B.C.'s t o t a l l u m b e r . As c a n be s e e n i n T a b l e V, t h e t h r e e l a r g e s t B.C. l u m b e r p r o d u c e r s , o p e r a t i n g 20 m i l l s , a c c o u n t e d f o r 3 0 % o f t o t a l l u m b e r c a p a c i t y i n 1988. The t o p t e n p r o d u c e r s ' 58 m i l l s r e p r e s e n t 5 8 % o f a l l B r i t i s h C o l u m b i a ' s l u m b e r p r o d u c t i o n c a p a c i t y ( M a d i s o n ' s C a n a d i a n Lumber D i r e c t o r y 1 9 8 9 ) . The r e m a i n i n g 42% o f t h e m a r k e t i s s u p p l i e d by 159 c o m p a n i e s o p e r a t i n g 163 m i l l s . [ i n s e r t T a b l e V a b o u t h e r e ] In c o n t r a s t , t h e p u l p and p a p e r i n d u s t r y has f a r f e w e r p a r t i c i p a n t s and a much more even d i v i s i o n o f p r o d u c t i o n c a p a c i t y . Whereas l u m b e r m i l l s v a r y i n p r o d u c t i o n c a p a c i t y more t h a n a h u n d r e d f o l d f r o m l a r g e s t t o s m a l l e s t , t h e l a r g e s t p u l p m i l l i s l e s s t h a n t h r e e t i m e s t h e s i z e o f i t s s m a l l e s t c o m p e t i t o r ( s e e T a b l e V I ) . B e f o r e W o r l d War I I t h e r e were o n l y t h r e e c o m p a n i e s o p e r a t i n g a t o t a l o f f o u r p u l p and p a p e r m i l l s . The number o f p u l p and p a p e r m i l l s has grown s t e a d i l y o v e r t i m e , f i r s t on t h e C o a s t and l a t e r , i n t h e 1 9 6 0 s , i n t h e I n t e r i o r where t h e p u l p and p a p e r i n d u s t r y i s d o m i n a n t t o d a y . T h e r e a r e now t w e n t y f i v e p u l p and p a p e r m i l l s o p e r a t i n g i n B r i t i s h C o l u m b i a . [ i n s e r t T a b l e VI a b o u t h e r e ] 51 T a b l e V B r i t i s h C o l u m b i a ' s Top Ten Lumber P r o d u c e r s Company Name Number o f M i l l s O u t p u t Mfbm F l e t c h e r C h a l l e n g e Canada 7 Weldwood o f Canada L t d . 7 West F r a s e r M i l l s L t d . 6 M a c M i l l a n B l o e d e l L t d . 7 N o r t h w o o d P u l p and T i m b e r L t d . 4 I n t e r n a t i o n a l F o r e s t P r o d u c t s L t d . 7 S l o c a n F o r e s t P r o d u c t s 5 W e s t a r T i m b e r L t d . 5 CANFOR L t d . 4 W e y e r h a u s e r Canada L t d . 6 4941 4375 3098 2773 1750 1515 1475 1465 1230 1200 N o t e : The m i l l s o f t h e s e t e n f i r m s r e p r e s e n t 5 9 % o f t o t a l B.C. s a w m i l l c a p a c i t y . S o u r c e : L a u r e n c e C a t e r ( e d . ) , M a d i s o n ' s C a n a d i a n Lumber D i r e c t o r y , ( 1 9 8 9 ) . 52 T a b l e VI B r i t i s h C o l u m b i a ' s P u l p and P a p e r P r o d u c e r s P r i m a r y P u l p P r o d u c e r s O u t p u t i n Tons P e r Day F l e t c h e r C h a l l e n g e Canada - C r o f t o n 800 - C a m p b e l l R i v e r 510 - M a c K e n z i e 500 N o r t h w o o d P u l p and T i m b e r L t d . 1450 CANFOR - P r i n c e George 750 - P o r t M e l l o n 650 M a c M i l l a n B l o e d e l - Harmac 1100 - A l b e r n i 200 W e y e r h a u s e r Canada L t d . 1200 Sk e e n a C e l l u l o s e I n c . ( W e s t a r ) 1130 W e s t e r n P u l p L t d . P a r t n e r s h i p - S q u a m i s h 670 - P o r t A l i c e 450 C a r i b o o P u l p and P a p e r Co. (Weldwood) 900 E u r o c a n P u l p and P a p e r Co. 900 C a n a d i a n P a c i f i c F o r e s t P r o d u c t s L t d . 700 C r e s t b r o o k F o r e s t I n d u s t r i e s L t d . 580 C e l g a r P u l p Co. ( W e s t a r ) 560 Q u e s n e l R i v e r P u l p Co. 525 F i n l a y F o r e s t I n d u s t r i e s L t d . 400 N e w s p r i n t P r o d u c e r s O u t p u t i n Tons P e r Day M a c M i l l a n B l o e d e l - P o w e l l R i v e r 2010 - A l b e r n i 1050 F l e t c h e r C h a l l e n g e Canada - C a m p b e l l R i v e r 1250 - C r o f t o n 1200 S o u r c e : L a u r e n c e C a t e r (ed.)» M a d i s o n ' s C a n a d i a n Lumber D i r e c t o r y , ( 1 9 8 9 ) . The p u l p and p a p e r m i l l s i n t h e I n t e r i o r o f B r i t i s h C o l u m b i a a r e among t h e most e f f i c i e n t i n t h e c o u n t r y . These m i l l s a r e modern and have some o f t h e l a r g e s t c a p a c i t i e s . Those on t h e C o a s t , b u i l t n e a r l y f i f t y y e a r s e a r l i e r t h a n t h e i r c o u n t e r p a r t s i n t h e I n t e r i o r , a r e now b e g i n n i n g t o age. However, t h e c u r r e n t b u o y a n t m a r k e t f o r p u l p and n e w s p r i n t i s e n s u r i n g t h a t s e v e r a l o f t h e s e m i l l s u n d e r g o r e f u r b i s h i n g and new c a p i t a l i n v e s t m e n t . 53 The c o n s t r u c t i o n o f a new m i l l t o d a y i s a m a j o r f i n a n c i a l u n d e r t a k i n g . M i l l s a r e b e i n g b u i l t f o r maximum e f f i c i e n c y and t h i s t r a n s l a t e s i n t o huge p r o d u c t i o n c a p a c i t i e s , hence t h e name, " m e g a - m i l l s " . V e r y few c o m p a n i e s have t h e c a p i t a l r e s o u r c e s t o u n d e r t a k e t h e s e k i n d s o f p r o j e c t s . The o t h e r c r i t e r i a p r e v e n t i n g t h e w i d e s c a l e c o n s t r u c t i o n o f new p u l p and p a p e r m i l l s d u r i n g t h e c u r r e n t boom m a r k e t i s t h a t t h e t i m b e r r e s e r v e s needed t o f e e d a l a r g e modern p u l p m i l l a r e no l o n g e r r e a d i l y a c c e s s i b l e i n B.C.. As a r e s u l t o f t h e s e b a r r i e r s t o e n t r y , i t i s u n l i k e l y t h a t t h e number o f p u l p and p a p e r m i l l s o p e r a t i n g i n B.C. w i l l i n c r e a s e s u b s t a n t i a l l y i n t h e n e a r f u t u r e . I n s t e a d , t h e number may e v e n t u a l l y d e c l i n e as t h e o l d e r , l e s s e f f i c i e n t m i l l s on t h e C o a s t a r e c l o s e d once t h e c u r r e n t m a r k e t boom c y c l e i s o v e r . B. D e g r e e o f C o m p e t i t i o n - T i m b e r and P r o d u c t M a r k e t s S t u d y i n g t h e f o r e s t i n d u s t r y o f t h e P a c i f i c N o r t h w e s t , W.J. Mead ( 1 9 6 6 ) s t a t e d t h a t c o l l u s i o n was t h e norm i n t h e b i d d i n g f o r t i m b e r r i g h t s . B.C. i s much t h e same w i t h t h e b i d d i n g on t i m b e r r i g h t s b e i n g c o n d u c t e d f o r t h e most p a r t u n d e r r e g u l a t i o n by " g e n t l e m e n ' s a g r e e m e n t s " ( B e r n s o h n 1 9 8 1 ) . O c c a s i o n a l l y t h e r e a r e s m a l l o u t b r e a k s o f c o m p e t i t i o n among c o m p e t i t o r s o f s i m i l a r s i z e and f i n a n c i a l r e s o u r c e s . However, when t h i s h a p p e n s , t h e p r i c e o f t i m b e r becomes much h i g h e r and c o m p e t i t i o n o n l y l a s t s u n t i l a n o t h e r s e t o f a g r e e m e n t s can be f o r g e d . T h e r e a r e l a w s i n p l a c e p r o h i b i t i n g c o l l u s i o n and b i d f i x i n g b u t t h e r e has n e v e r been a c a s e p r o s e c u t e d f o r t h e 54 b r e a k i n g o f t h e s e l a w s ( B e r n s o h n 1 9 8 1 ) . I t seems t h a t m a r k e t p a r t i c i p a n t s and g o v e r n m e n t a l i k e a r e w i l l i n g t o i g n o r e s i g n s o f i l l e g a l b e h a v i o u r i n f a v o u r o f m a i n t a i n i n g a smooth r u n n i n g o l i g o p s o n y (Mead 1966, B e r n s o h n 1 9 8 1 ) . C o m p e t i t i o n i n t h e p r o d u c t m a r k e t however i s q u i t e d i f f e r e n t . The m a r k e t s f o r raw l o g s , f i n i s h e d l u m b e r , n e w s p r i n t , and wood p u l p a r e a l l e x a m p l e s o f an e c o n o m i s t ' s t h e o r e t i c a l i d e a l o f a c o m p e t i t i v e m a r k e t . These p r o d u c t s t r a d e on w o r l d c o m m o d i t y m a r k e t s i n w h i c h t h e r e a r e many b u y e r s and s e l l e r s , none o f whom i s l a r g e enough t o a f f e c t p r i c e s . P r i c e s o f t h e s e n e a r l y u n d i f f e r e n t i a t e d p r o d u c t s a r e d e t e r m i n e d s o l e l y by s u p p l y and demand. The p r i c e s o f t h e s e c o m m o d i t i e s t e n d t o v a r y c y c l i c a l l y . P r i c e s o f raw l o g s and sawn l u m b e r a r e e s p e c i a l l y p r o n e t o t h i s c y c l i c a l p a t t e r n s i n c e t h e demand f o r t h e s e p r o d u c t s i s h e a v i l y i n f l u e n c e d by t h e number o f r e s i d e n t i a l h o u s i n g s t a r t s w h i c h i n t u r n i s a f f e c t e d by i n t e r e s t r a t e s a n d , f u r t h e r , by t h e o v e r a l l h e a l t h o f t h e economy. P r i c e s o f a l l t h r e e c o m m o d i t i e s can a l s o be a d v e r s e l y a f f e c t e d by s w i n g s i n f o r e i g n e x c h a n g e r a t e s , e s p e c i a l l y c h a n g e s i n t h e v a l u e o f t h e C a n a d i a n d o l l a r v i s a v i s t h e A m e r i c a n . I V . The P o l i t i c a l E n v i r o n m e n t A. L a b o u r R e l a t i o n s C l i m a t e The l a b o u r r e l a t i o n s c l i m a t e i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y i s t u r b u l e n t , c h a r a c t e r i z e d by f r e q u e n t and b i t t e r s t r i k e s . P e r s o n d a y s l o s t i n t h e l o g g i n g , l u m b e r , and p u l p 55 and p a p e r i n d u s t r i e s o f t e n a c c o u n t f o r a s i z e a b l e p r o p o r t i o n o f t o t a l d a y s l o s t i n t h e p r o v i n c e i n a g i v e n y e a r . D u r i n g y e a r s i n w h i c h t h e r e i s a m a j o r f o r e s t r y d i s p u t e t h e t o t a l p e r s o n d a y s l o s t c a n be w e l l o v e r h a l f t h e p r o v i n c i a l t o t a l . [ i n s e r t T a b l e V I I a b o u t h e r e ] When a p o r t i o n o f t h e p r o v i n c e ' s w o r k f o r c e i n one o f t h e s e i n d u s t r i e s i s on s t r i k e , t h e e f f e c t o f t h e s e l o n g and p r o t r a c t e d w ars o f a t t r i t i o n c a n q u i c k l y s p r e a d t h r o u g h o u t t h e p r o v i n c e . T h i s i s due t o t h e f a c t t h a t t h e p u l p and p a p e r and l u m b e r s e c t o r s a r e l i n k e d by a common raw m a t e r i a l - l o g s . When l o g g e r s s t r i k e o r a r e l o c k e d o u t , b o t h l u m b e r and p u l p and p a p e r m i l l s ' s u p p l y o f raw m a t e r i a l s i s c u t o f f . The two i n d u s t r i e s a r e a l s o l i n k e d by t h e i r i n t e r d e p e n d e n c e on t h e s a l e o f wood c h i p s . I f p u l p and p a p e r m i l l s a r e s h u t down, a l a r g e p o r t i o n o f s a w m i l l r e v e n u e i s c u t o f f b e c a u s e t h e p u l p m i l l s no l o n g e r have a need f o r c h i p s . C o n v e r s e l y , when s a w m i l l s a r e on s t r i k e , p u l p and p a p e r m i l l s a r e w i t h o u t t h e i r s u p p l y o f c h i p s , w h i c h now r e p r e s e n t n e a r l y h a l f t h e raw m a t e r i a l f o r t h e s e m i l l s ( P e r c y 1 9 8 6 ) . L a b o u r d i s p u t e s i n one s e c t o r c a n s p r e a d i n t o o t h e r s b e c a u s e many o f t h e f i r m s i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y o p e r a t e i n more t h a n one segment o f i t . T h u s , two o p e r a t i o n s i n d i f f e r e n t s e g m e n t s o f t h e f o r e s t p r o d u c t s i n d u s t r y a r e o f t e n l i n k e d by a common owner and e m p l o y e r . T h u s , i t i s l i k e l y t h a t t h e e m p l o y e r a g a i n s t whom t h e s t r i k e i s mounted owns and o p e r a t e s b o t h a p u l p and p a p e r m i l l as w e l l as 56 T a b l e V I I L a b o u r D i s p u t e s i n B r i t i s h C o l u m b i a 1958-1985 Y e a r L o g g i n g Wood Pu l p & B.C. X o f I n d u s t r i e s P a p e r T o t a l T o t a l 1958 1 075 33 747 128 248 325 211 50 . 1 1959 2 245 1 363 242 0 1 423 268 95 . 8 1960 1 128 405 0 35 848 4.3 1961 75 718 0 34 659 2. 1 1962 0 9 551 0 32 987 29.0 1963 0 2 200 0 24 056 9.1 1964 322 1 504 0 181 784 1 . 0 1965 190 950 450 104 430 1.5 1966 1 849 86 624 15 522 272 922 38. 1 1967 218 268 709 0 270 894 82.8 1968 4 005 298 840 472 303 317 74.6 1969 6 909 18 737 4 478 406 645 7.4 1970 1 837 42 143 222 568 1 684 463 15.8 1971 14 488 2 085 866 276 030 6 . 3 1972 117 142 547 314 18 902 2 120 848 32.2 1973 * 63 625 * * 1974 * 90 500 1975 * 1 026 625 * 1976 * * 11 375 * * 1977 * * 125 000 * * 1978 * * 7 125 * * 1979 3 460 97 720 89 950 645 780 29.6 1980 610 4 730 1 280 389 610 1 . 7 1981 1 000 1 171 280 395 910 2 787 130 56 . 3 1982 0 0 117 460 987 510 11.9 1983 7 750 1 530 29 260 769 390 5 . 0 1984 1 030 15 270 379 330 395 630 47 . 9 1985 2 550 6 850 4 600 125 910 11.1 * d a t a f o r t h e s e y e a r s u n a v a i l a b l e . S o u r c e s : D e p a r t m e n t o f L a b o u r , A n n u a l R e p o r t , M i n i s t e r o f L a b o u r , P r o v i n c e o f B r i t i s h C o l u m b i a , 1958-1972. P u l p I n d u s t r y S t a t i s t i c s ( u n p u b l i s h e d ) 1973-1978. S t a t i s t i c s C a n a d a , S t r i k e s and L o c k o u t s i n C a n a d a , M i n i s t e r o f S u p p l y and S e r v i c e s , 1979-1985 57 s a w m i l l s . I n s u c h a c a s e a s t r i k e a t one l o c a t i o n c o u l d mean ( u n t i l v e r y r e c e n t l y ) t h a t p i c k e t i n g c o u l d l e g a l l y t a k e p l a c e a t any o f t h e e m p l o y e r ' s s i t e s . I t was b e c a u s e o f t h e p r e v a l e n c e o f s e c o n d a r y p i c k e t i n g by b o t h t h e IWA and t h e p u l p and p a p e r u n i o n s w h i c h c o u l d e f f e c t i v e l y b r i n g t h e e n t i r e i n d u s t r y t o a s t a n d s t i l l t h a t t h e p i c k e t i n g l e g i s l a t i o n was c h a n g e d t o e l i m i n a t e t h i s p r a c t i c e . The d e t a i l s o f t h e s e c h a n g e s and t h e i r e f f e c t s w i l l be d i s c u s s e d l a t e r i n t h i s c h a p t e r . B. Government I n t e r v e n t i o n i n F o r e s t P r o d u c t I n d u s t r y I n d u s t r i a l R e l a t i o n s B e c a u s e o f t h e s e r i o u s i m p a c t o f l a b o u r d i s p u t e s i n t h e f o r e s t p r o d u c t s i n d u s t r y on t h e p r o v i n c e ' s e c o n o m i c h e a l t h , t h e p r o v i n c i a l g o v e r n m e n t has a h i s t o r y o f i n t e r v e n t i o n i n t h e s e d i s p u t e s . Government a p p o i n t e d m e d i a t o r s and g o v e r n m e n t s p o n s o r e d i n q u i r y c o m m i s s i o n s a r e two methods by w h i c h many f o r e s t i n d u s t r y l a b o u r d i s p u t e s a r e r e s o l v e d . A b r i e f summary o f t h e i r use on b o t h t h e p u l p and t h e s o l i d wood s i d e s o f t h e i n d u s t r y f o l l o w s . I n 1967, t h e S o u t h e r n I n t e r i o r IWA l o c a l s s t r u c k f o r wage p a r i t y w i t h t h e C o a s t . As t h e s t r i k e d r a g g e d on i n t o 1968 t h e e f f e c t s on t h o s e c o m m u n i t i e s began t o be f e l t . A f t e r s e v e r a l r e q u e s t s by t h e p e o p l e o f t h e s e c o m m u n i t i e s t o have t h e g o v e r n m e n t i n t e r v e n e , a g o v e r n m e n t c o n c i l i a t i o n o f f i c e r was a p p o i n t e d . H i s p r o p o s e d s e t t l e m e n t was e v e n t u a l l y a c c e p t e d by t h e p a r t i e s . 58 The n e x t m a j o r IWA d i s p u t e o c c u r r e d i n 1972. The t h e n L a b o u r M i n i s t e r James C h a b o t was c a l l e d i n t o m e d i a t e a s e t t l e m e n t . H i s a t t e m p t s f a i l e d and e v e n t u a l l y t h e p a r t i e s s e t t l e d on t h e i r own. The n e x t t i m e a m e d i a t o r was a p p o i n t e d t o s e t t l e a f o r e s t i n d u s t r y d i s p u t e , t h e p a r t i e s c o u l d n o t s e t t l e t h e i r d i f f e r e n c e s on t h e i r own and a f t e r a s i x week i n d u s t r y w i d e s t r i k e i n 1974 t h e p a r t i e s were l e g i s l a t e d back t o work by t h e p r o v i n c i a l g o v e r n m e n t . A g a i n a m e d i a t o r was u s e d t o g e t a s e t t l e m e n t i n 1975 a l t h o u g h t h e r e was no work s t o p p a g e i n v o l v e d . The 1981 s t r i k e , l a s t i n g n e a r l y s i x w e e k s , was f i n a l l y s e t t l e d by t h e p a r t i e s t h e m s e l v e s . However, t h e t h r e a t o f g o v e r n m e n t i n t e r v e n t i o n and e v e n t u a l b a c k t o work l e g i s l a t i o n was a d e t e r m i n i n g f a c t o r i n t h e f i n a l s e t t l e m e n t b e i n g r e a c h e d when i t was. Once a g a i n a g o v e r n m e n t a p p o i n t e d m e d i a t o r h e l p e d t h e p a r t i e s r e a c h a s e t t l e m e n t a f t e r f o r e s t i n d u s t r y n e g o t i a t i o n s had d r a g g e d on n e a r l y s i x months i n 1983. A l t h o u g h t h e r e had been no t i m e l o s t t o a work s t o p p a g e , t h e s e t t l e m e n t came j u s t as t h e e m p l o y e r s had c o n c l u d e d a l o c k o u t v o t e g i v i n g FIR t h e power t o s h u t down t h e C o a s t a l p o r t i o n o f t h e i n d u s t r y . The most r e c e n t f o r e s t i n d u s t r y d i s p u t e i n v o l v i n g t h e IWA was what has been t e r m e d by t h e i n d u s t r y t h e "Two B i l l i o n D o l l a r S t r i k e " . The IWA s t r u c k on J u l y 2 2 , 1986 o v e r s e v e r a l u n r e s o l v e d i s s u e s , t h e most s a l i e n t one b e i n g c o n t r a c t i n g o u t . By t h e m i d d l e o f A u g u s t t h e p r e m i e r t h r e a t e n e d t o i n t e r v e n e i n t h e d i s p u t e and moved t o b r i n g t h e two s i d e s t o g e t h e r . The 59 p r e m i e r a p p o i n t e d a m e d i a t o r b u t FIR r e f u s e d t o meet w i t h h i m . In e a r l y O c t o b e r t h e p r e m i e r s u g g e s t e d a s e c o n d m e d i a t o r , b u t t h i s t i m e t h e IWA w o u l d n o t a g r e e t o a m e e t i n g . In mid November t h e p r e m i e r a p p o i n t e d a s p e c i a l t h r e e p e r s o n c o m m i s s i o n t o f i n d a way t o end t h e s t r i k e . I n l a t e November IWA members v o t e d t o r e j e c t t h e r e c o m m e n d a t i o n s o f t h e c o m m i s s i o n . F i n a l l y , i n e a r l y December, t h e p r e m i e r began d r a f t i n g b a c k t o work l e g i s l a t i o n . On December 5, 1986 t h e p a r t i e s r e a c h e d a t e n t a t i v e a g r e e m e n t i n w h i c h an i n d e p e n d e n t i n q u i r y c o m m i s s i o n was t o e x a m i n e t h e i s s u e s i n d i s p u t e , s p e c i f i c a l l y t h e i s s u e s o f c o n t r a c t i n g o u t , f l e x i b l e s c h e d u l i n g , and add-on c o m p e n s a t i o n s y s t e m s . The c o m m i s s i o n r e l e a s e d i t s r e p o r t i n J a n u a r y 1988. The r e c o r d o f g o v e r n m e n t i n t e r v e n t i o n i n t o l a b o u r d i s p u t e s on t h e p u l p and p a p e r s i d e o f t h e i n d u s t r y i s v e r y s i m i l a r t o t h a t on t h e s o l i d wood s i d e . I n 1970 and i n 1974 l a b o u r d i s p u t e s i n t h e p u l p and p a p e r i n d u s t r y were s e t t l e d w i t h t h e a i d o f g o v e r n m e n t a p p o i n t e d m e d i a t o r s . The 1974 s e t t l e m e n t a l s o l e d t o t h e a p p o i n t m e n t o f an i n d u s t r i a l i n q u i r y c o m m i s s i o n i n t o t h e o u t s t a n d i n g i s s u e o f s h i f t d i f f e r e n t i a l s . The two p u l p u n i o n s s t r u c k i n 1975 o v e r t h e i s s u e o f p e n s i o n s . A f t e r t h r e e months o f s t r i k e a c t i o n t h e g o v e r n m e n t i s s u e d a b a c k t o work o r d e r w h i c h t h e two u n i o n s c h o s e t o i g n o r e . S i x weeks l a t e r , a f t e r n e a r l y f i v e months o f f t h e j o b , t h e p a r t i e s r e a c h e d a n e g o t i a t e d s e t t l e m e n t . 60 The n e x t t h r e e r o u n d s o f p u l p n e g o t i a t i o n s were c o n c l u d e d w i t h o u t work s t o p p a g e s ( e x c l u d i n g w i l d c a t s t r i k e s a t v a r i o u s l o c a t i o n s o v e r l o c a l i s s u e s ) o r g o v e r n m e n t i n t e r v e n t i o n . H owever, i n 1984 t h e p u l p i n d u s t r y became emeshed i n a l o n g and t u r b u l e n t d i s p u t e i n w h i c h t h e c e n t r a l i s s u e was c o s t o f l i v i n g i n c r e a s e s t o p e n s i o n i n c o m e . The l o c k o u t began F e b r u a r y 2, 1984 i n a move t o g e t s t a l l e d t a l k s , w h i c h had begun i n mid 1983, m o v i n g a g a i n . Seven weeks l a t e r , t h e t h e n p r e m i e r B i l l B e n n e t t made a m e d i a t o r a v a i l a b l e t o t h e p a r t i e s w i t h t h e u n d e r s t a n d i n g t h a t i f a s e t t l e m e n t c o u l d n o t be r e a c h e d i n t h i s way t h a t he w o u l d i n t r o d u c e l e g i s l a t i o n t o end t h e s t r i k e . T h i s l e g i s l a t i o n was i n t r o d u c e d A p r i l 9 and t h e l o c k o u t e n d e d . However, p u l p w o r k e r s unhappy w i t h t h e l a s t s e t t l e m e n t o f f e r e d them by t h e i n d u s t r y went on s t r i k e . The L a b o u r R e l a t i o n s B o a r d r u l e d t h i s t o be an i l l e g a l s t r i k e and o r d e r e d s t r i k i n g p u l p w o r k e r s b a c k t o work. The u n i o n s r e f u s e d t o c o m p l y and c o n t i n u e d t h e s t r i k e a n o t h e r two weeks. The g o v e r n m e n t t h r e a t e n e d t o impose an a g r e e m e n t on t h e p a r t i e s , s o m e t h i n g i t was empowered t o do u n d e r t h e P u l p and P a p e r C o l l e c t i v e B a r g a i n i n g A s s i s t a n c e A c t , t h e l e g i s l a t i o n i t u s e d t o end t h e l o c k o u t on A p r i l 9. E v e n t u a l l y , t h e d i s p u t e was s e t t l e d by t h e p a r t i e s a t t h e end o f A p r i l . The l a s t two r o u n d s o f n e g o t i a t i o n s , i n 1986 and 1988 were c o n c l u d e d by t h e p a r t i e s t h e m s e l v e s i n a t i m e l y manner w i t h o u t a l a b o u r d i s p u t e . 61 V. The L e g a l E n v i r o n m e n t A. L a b o u r L e g i s l a t i o n i n B r i t i s h C o l u m b i a T h i s f i n a l s e c t i o n o u t l i n e s c h a n g e s i n B.C. l a b o u r l e g i s l a t i o n t h a t have o c c u r r e d o v e r t h e p a s t d e c a d e w i t h r e s p e c t t o b o t h t h e a c c r e d i t a t i o n o f e m p l o y e r b a r g a i n i n g a s s o c i a t i o n s and t h e s c o p e o f l a w f u l p i c k e t i n g . In g e n e r a l , amendments t o a c c r e d i t a t i o n l e g i s l a t i o n have e a s e d t h e e x i t o f e m p l o y e r s f r o m t h e i r a s s o c i a t i o n s . Changes t o p i c k e t i n g l e g i s l a t i o n have been e n a c t e d t o c u r t a i l u n i o n power. T h i s r e s e a r c h i s i n t e r e s t e d i n t h e e f f e c t s t h e s e c h a n g e s may have had on b a r g a i n i n g s t r u c t u r e . B. R e g a r d i n g A c c r e d i t a t i o n o f E m p l o y e r A s s o c i a t i o n s The a c c r e d i t a t i o n o f an e m p l o y e r s a s s o c i a t i o n i s much l i k e t h e c e r t i f i c a t i o n o f a u n i o n t o r e p r e s e n t i n d i v i d u a l e m p l o y e e s . I t i n v o l v e s t h e a s s i g n i n g o f i n d i v i d u a l e m p l o y e r r i g h t s t o a c e n t r a l n e g o t i a t i n g b ody. T h i s body n e g o t i a t e s a c o l l e c t i v e a g r e e m e n t on b e h a l f o f a l l member e m p l o y e r s a n d , i n t u r n , e a c h member i s t h e n bound by t h e t e r m s o f t h a t a g r e e m e n t . W i t h o u t a s s o c i a t i o n b a r g a i n i n g , i n d i v i d u a l e m p l o y e r s c a n be f o r c e d t o meet t h e u n i o n ' s demands and t h e n e a c h e m p l o y e r i n t u r n i s s u b j e c t e d t o t h e same p r e s s u r e t o meet o r e x c e e d t h e s t a n d a r d g r a n t e d by t h e f i r s t ( and o f t e n t h e w e a k e s t ) e m p l o y e r . In B r i t i s h C o l u m b i a , i n t h e p e r i o d p r e c e d i n g t h e e n a c t m e n t o f a c c r e d i t a t i o n l e g i s l a t i o n t h i s w h i p s a w i n g o f 62 i n d i v i d u a l e m p l o y e r s r e s u l t e d i n a l a r g e d e g r e e o f l a b o u r u n r e s t and l e d t o s o a r i n g wage and b e n e f i t c o s t s . V o l u n t a r y a s s o c i a t i o n s , a l t h o u g h an i m p r o v e m e n t upon i n d i v i d u a l n e g o t i a t i o n s , a r e o n l y as e f f e c t i v e as t h e i r w e a k e s t l i n k ( R o s e 1 9 8 3 ) . I n d i v i d u a l e m p l o y e r s c a n be p r e s s u r e d by t h e u n i o n t o b r e a k away f r o m t h e a s s o c i a t i o n t o s i g n a s e p a r a t e c o n t r a c t w i t h t h e u n i o n . In t h e s e c a s e s , t h e u n i o n i s t h e n a b l e t o whipsaw t h e r e m a i n i n g e m p l o y e r s w i t h t h e c o n c e s s i o n s g r a n t e d by t h e s i n g l e e m p l o y e r u n d e r p r e s s u r e . A c c r e d i t e d e m p l o y e r a s s o c i a t i o n s s o l v e t h i s p r o b l e m o f m a i n t a i n i n g e m p l o y e r c o h e s i o n . An a c c r e d i t e d e m p l o y e r a s s o c i a t i o n has t h e s o l e r i g h t t o c o n c l u d e a c o l l e c t i v e a g r e e m e n t on b e h a l f o f i t s members. Any c o n t r a c t r e a c h e d by a member i n d i v i d u a l l y w i t h t h e u n i o n i s c o n s i d e r e d n u l l and v o i d . In o t h e r w o r d s , an e m p l o y e r c a n n o t r e a c h an a g r e e m e n t on i t s own. And, i n most j u r i s d i c t i o n s , once an e m p l o y e r i s a member o f an a c c r e d i t e d a s s o c i a t i o n i t c a n n o t remove i t s e l f f r o m m e mbership a t w i l l . A r t h u r s and C r i s p o , i n t h e i r 1968 r e p o r t on t h e a c c r e d i t a t i o n o f c o n t r a c t o r a s s o c i a t i o n s , e n u m e r a t e d t h r e e m o d e l s o f e m p l o y e r a s s o c i a t i o n s : t h e r e a l i s t i c , t h e c o m p u l s o r y , and t h e c o n s e r v a t i v e . S e v e n p r o v i n c e s have s u b s e q u e n t l y a d o p t e d t h e r e a l i s t i c m odel i n w h i c h a l l u n i o n i z e d c o n t r a c t o r s a r e r e p r e s e n t e d a t t h e b a r g a i n i n g t a b l e by t h e a c c r e d i t e d a s s o c i a t i o n r e g a r d l e s s o f w h e t h e r o r n o t t h e e m p l o y e r i s a member o f t h e a s s o c i a t i o n ( R o s e 1 9 8 3 ) . Quebec a d o p t e d t h e c o m p u l s o r y model i n w h i c h a l l c o n t r a c t o r s , w h e t h e r 63 u n i o n i z e d o r n o t , must j o i n t h e a s s o c i a t i o n and a l l o w i t t o a c t as t h e i r b a r g a i n i n g a g e n t . B r i t i s h C o l u m b i a c h o s e t o e n a c t l e g i s l a t i o n b a s e d on t h e c o n s e r v a t i v e m o d e l . In B.C. o n l y t h o s e u n i o n i z e d e m p l o y e r s who e l e c t t o j o i n t h e a c c r e d i t e d a s s o c i a t i o n a r e bound by t h e c o l l e c t i v e a g r e e m e n t t h e a s s o c i a t i o n n e g o t i a t e s on t h e i r b e h a l f . A c c r e d i t a t i o n l e g i s l a t i o n i n B r i t i s h C o l u m b i a a l s o d i f f e r s f r o m o t h e r s u c h l e g i s l a t i o n a c r o s s Canada i n t h a t i t a p p l i e s t o any e m p l o y e r i n t h e p r o v i n c e and i s n o t r e s t r i c t e d t o t h e c o n s t r u c t i o n i n d u s t r y . C o n s e q u e n t l y , e m p l o y e r a s s o c i a t i o n s now r e p r e s e n t e m p l o y e r s i n b o t h p r i v a t e and p u b l i c s e c t o r s : i n t h e h e a l t h c a r e , b r e w i n g , c o n s t r u c t i o n , t r a n s p o r t a t i o n and f o r e s t r y i n d u s t r i e s among o t h e r s . As a r e s u l t , c o l l e c t i v e b a r g a i n i n g i n B r i t i s h C o l u m b i a i s h i g h l y c e n t r a l i z e d w i t h h a l f t h e p r o v i n c e ' s b a r g a i n i n g u n i t s o v e r 200 e m p l o y e e s c o v e r e d by a m u l t i - e m p l o y e r a g r e e m e n t CRogow 1 9 8 9 ) . T h i s i s a l m o s t d o u b l e t h e C a n a d i a n a v e r a g e . 1. E a r l y A c c r e d i t a t i o n L e g i s l a t i o n In 1970, B r i t i s h C o l u m b i a e n a c t e d i t s f i r s t a c c r e d i t a t i o n l e g i s l a t i o n . S h o r t l y t h e r e a f t e r a number o f p r e v i o u s l y v o l u n t a r y a s s o c i a t i o n s became a c c r e d i t e d . A s s o c i a t i o n s o f r o a d b u i l d e r s , c o n t r a c t o r s , f o r e s t r y , p u l p and p a p e r , and t r a n s p o r t a t i o n e m p l o y e r s a l l became a c c r e d i t e d i n t h a t f i r s t y e a r . 64 2. The B r i t i s h C o l u m b i a L a b o u r Code 1973 In 1973, t h e n e w l y e l e c t e d New D e m o c r a t i c P a r t y g o v e r n m e n t e n a c t e d t h e p r o v i n c e ' s L a b o u r Code. A f t e r s e v e r a l y e a r s o f t u r b u l e n t l a b o u r u n r e s t , a l a b o u r c o u r t t h a t was e f f e c t i v e l y b o y c o t t e d by t h e l a b o u r movement, and t h e i s s u e o f a s e r i e s o f i n j u n c t i o n s , t h e new g o v e r n m e n t s e t o u t t o r e s t o r e o r d e r t o l a b o u r - m a n a g e m e n t r e l a t i o n s i n t h e p r o v i n c e . The c r e a t o r s o f t h e Code saw b r o a d b a s e d b a r g a i n i n g as a s o l u t i o n t o B.C.'s l a b o u r r e l a t i o n s p r o b l e m ( W e i l e r 1 9 8 0 ) . They b e l i e v e d t h a t c e n t r a l i z e d b a r g a i n i n g b e t w e e n e m p l o y e r a s s o c i a t i o n s and c o u n c i l s o f t r a d e u n i o n s w o u l d be t h e k e y t o l a b o u r p e a c e . F i r s t , b r o a d b a s e d b a r g a i n i n g w o u l d e l i m i n a t e w h i p s a w i n g by h a v i n g a common e x p i r y d a t e f o r an e n t i r e i n d u s t r y . T h i s w o u l d e l i m i n a t e t h e p o s s i b i l i t y o f u n i o n p r e s s u r e t a c t i c s b e i n g u s e d a g a i n s t weak e m p l o y e r s . S e c o n d , f e w e r n e g o t i a t i o n s w o u l d mean f e w e r o p p o r t u n i t i e s f o r s t r i k e a c t i o n . In a d d i t i o n , t h e damage c a u s e d by s h u t t i n g down an e n t i r e i n d u s t r y w o u l d i n s t i l l i n t h e n e g o t i a t i n g p a r t i e s a g r e a t e r s e n s e o f r e s p o n s i b i l i t y t o r e a c h a s e t t l e m e n t w i t h o u t a work s t o p p a g e . T h i r d , n e g o t i a t i n g a m a s t e r a g r e e m e n t w o u l d be more e f f i c i e n t t h a n h a v i n g t o c o n c l u d e a s e p a r a t e c o n t r a c t w i t h e a c h i n d i v i d u a l e m p l o y e r . In t h i s way common p r o v i s i o n s w o u l d be i n p l a c e a c r o s s t h e p r o v i n c e . T h i s , i t was h o p e d , w o u l d c r e a t e an a t m o s p h e r e o f p r e d i c t a b i l i t y i n t h e w o r k p l a c e and t h u s m i n i m i z e i l l e g a l work s t o p p a g e s , g r i e v a n c e s , and a r b i t r a t i o n s ( C h a f e t z 1 9 8 5 ) . F i n a l l y , an i n d u s t r y m a s t e r a g r e e m e n t w o u l d i n c r e a s e e q u i t y i n t e r m s o f wages and b e n e f i t s 65 i n t h e i n d u s t r y . E m p l o y e e s d o i n g t h e same j o b w o u l d r e c e i v e t h e same c o m p e n s a t i o n t h r o u g h o u t t h e p r o v i n c e w h i l e e m p l o y e r s were a s s u r e d t h a t a l l c o m p e t i t o r s had t h e same l a b o u r c o s t s . The l e g i s l a t i o n e n a c t e d i n 1973 made i t r e l a t i v e l y e a s y f o r e m p l o y e r a s s o c i a t i o n s t o become a c c r e d i t e d . S e c t i o n 59 s t a t e d t h a t any a s s o c i a t i o n c o u l d a p p l y and e m p l o y e r s who were n o t members o f t h e a s s o c i a t i o n c o u l d a l s o add t h e i r names t o t h e a p p l i c a t i o n i f t h e y t o o w i s h e d t o be p a r t o f t h e a c c r e d i t e d a s s o c i a t i o n . The L a b o u r R e l a t i o n s B o a r d t h e n c o n s t i t u t e d t h e a s s o c i a t i o n as t h e a c c r e d i t e d b a r g a i n i n g a s s o c i a t i o n i f i t f e l t t h a t t h e e m p l o y e r s named i n t h e a p p l i c a t i o n c o n s t i t u t e d a g r o u p a p p r o p r i a t e f o r c o l l e c t i v e b a r g a i n i n g i n t h a t t h e y were i n v o l v e d i n t h e same b u s i n e s s and t h a t t h e i r i n t e r e s t s c o u l d be a d e q u a t e l y r e p r e s e n t e d by one o v e r a l l b ody. However, l e a v i n g an a c c r e d i t e d e m p l o y e r b a r g a i n i n g a s s o c i a t i o n p r o v e d t o be much more d i f f i c u l t . The L a b o u r R e l a t i o n s B o a r d g u a r d e d t h e bac k d o o r v e r y c a r e f u l l y (Rose 1 9 8 3 ) . The L a b o u r Code p r o v i d e d t h a t d u r i n g t h e f o u r t h and f i f t h months f o l l o w i n g t h e e x e c u t i o n o f a c o l l e c t i v e a g r e e m e n t by t h e e m p l o y e r s ' a s s o c i a t i o n , an e m p l o y e r c o u l d a p p l y t o t h e B o a r d t o have i t s name d e l e t e d f r o m t h e a c c r e d i t a t i o n o r d e r . The B o a r d t h e n had f u l l d i s c r e t i o n as t o w h e t h e r o r n o t i t w o u l d g r a n t t h i s a p p l i c a t i o n . The B o a r d e x p l a i n e d i t s a p p r o a c h t o d e l e t i o n s f r o m an a c c r e d i t a t i o n o r d e r i n t h e f i r s t d e a c c r e d i t a t i o n c a s e i t d e c i d e d (Ocean C o n s t r u c t i o n S u p p l i e s N o r t h e r n L t d . and 66 T r a n s p o r t L a b o u r R e l a t i o n s e t . a l . , ( 1 9 7 6 ) , (1 Can LRBR 1 7 5 ) . The B.C. L a b o u r R e l a t i o n s B o a r d made i t c l e a r t h a t n o t o n l y d i d t h e a p p l i c a t i o n need t o be t i m e l y as was s t a t e d e x p l i c i t l y i n t h e Code, b u t t h e d e l e t i o n a l s o r e q u i r e d "much more t h a n s i m p l y t h e i n d i v i d u a l e m p l o y e r ' s e x p r e s s i o n o f g e n u i n e f e e l i n g s t h a t i t p r e f e r s t o b a r g a i n w i t h t h e u n i o n alone™ ( p . 1 8 1 ) . R a t h e r , t h e e m p l o y e r had t o p r e s e n t a " s t r o n g l y p e r s u a s i v e c a s e t h a t i t s i n t e r e s t s c a n no l o n g e r be a d e q u a t e l y s e r v e d by what has been an o n g o i n g b a r g a i n i n g s t r u c t u r e . " ( p . 1 8 1 ) . The B o a r d f u r t h e r s t a t e d t h a t t h e r e w o u l d be a need t o b a l a n c e c o m p e t i n g i n t e r e s t s : t h o s e o f t h e e m p l o y e r a p p l y i n g t o remove i t s e l f f r o m t h e a c c r e d i t a t i o n o r d e r and t h o s e w i s h i n g t o r e m a i n i n t h e a s s o c i a t i o n . " I f t h e w i t h d r a w a l o f a k e y member o f t h e a s s o c i a t i o n w o u l d c a u s e t h e e m p l o y e r g r o u p t o become u n r a v e l l e d , t h e B o a r d w o u l d be l o a t h t o p e r m i t d e a c c r e d i t a t i o n , e ven w h i l e r e c o g n i z i n g t h a t t h e i n d i v i d u a l e m p l o y e r w o u l d s u f f e r some d i s c o m f o r t f r o m c o n t i n u e d m e m b e r s h i p . " ( p . 183) As a r e s u l t o f t h i s s t r i n g e n t r e g u l a t i o n o f t h e d e a c c r e d i t a t i o n p r o c e s s , few e m p l o y e r s have been g r a n t e d e x e m p t i o n f r o m t h e i r a c c r e d i t e d a s s o c i a t i o n s . I t has been e a s i e r f o r e m p l o y e r s t o remove t h e m s e l v e s f r o m t h e a c c r e d i t e d a s s o c i a t i o n by g e t t i n g m a j o r i t y s u p p o r t f r o m t h e a s s o c i a t i o n t o d i s b a n d t h e e n t i r e o r g a n i z a t i o n . Up u n t i l r e c e n t c h a n g e s were made t o t h e d e a c c r e d i t a t i o n p r o v i s i o n s , o n l y f i v e e m p l o y e r b a r g a i n i n g a s s o c i a t i o n s have done t h i s ( r e f e r a g a i n t o T a b l e I I I i n C h a p t e r O n e ) . In t h r e e o f t h e s e c a s e s t h e 67 a s s o c i a t i o n c e a s e d t o e x i s t a n d , i n t h e o t h e r t w o , t h e a s s o c i a t i o n s r e m a i n e d t o g e t h e r on a v o l u n t a r y b a s i s and c o n t i n u e t o b a r g a i n on b e h a l f o f t h e i r members. 3. I n d u s t r i a l R e l a t i o n s R e f o r m A c t 1987 ( B i l l 19) The 1987 I n d u s t r i a l R e l a t i o n s R e f o r m A c t made i m p o r t a n t c h a n g e s t o S e c t i o n 59. I t i s now no l o n g e r n e c e s s a r y f o r e m p l o y e r s t o f o r c e t o t a l d e a c c r e d i t a t i o n o f t h e i r a s s o c i a t i o n i n o r d e r t o s e p a r a t e t h e m s e l v e s f r o m i t ( E m p l o y e r s ' C o u n c i l 1 9 8 8 ) . The I n d u s t r i a l R e l a t i o n s R e f o r m A c t , a l s o known as B i l l 19, r e p e a l e d s e c t i o n 5 9 ( 6 ) o f t h e B.C. L a b o u r Code and s u b s t i t u t e d t h e f o l l o w i n g : ( 6 ) Where an e m p l o y e r named i n an a c c r e d i t a t i o n a p p l i e s t o t h e c o u n c i l t o amend t h e a c c r e d i t a t i o n by d e l e t i n g h i s name f r o m i t , and ( a ) t h e e m p l o y e r has been i n c l u d e d i n t h e a c c r e d i t a t i o n f o r 2 y e a r s , and ( b ) t h e e m p l o y e r makes t h e a p p l i c a t i o n n o t l e s s t h a n 9 months b e f o r e t h e e x p i r y d a t e o f a l l c o l l e c t i v e a g r e e m e n t s e n t e r e d i n t o by t h e e m p l o y e r s ' o r g a n i z a t i o n on t h e e m p l o y e r ' s b e h a l f , t h e c o u n c i l s h a l l g r a n t t h e a p p l i c a t i o n . Thus i t i s no l o n g e r n e c e s s a r y f o r t h e I n d u s t r i a l R e l a t i o n s C o u n c i l t o r u l e upon t h e p r o p r i e t y o f an e m p l o y e r ' s w i t h d r a w a l n o r t h e e f f e c t s o f i t upon t h e b a r g a i n i n g o u tcomes i n t h a t i n d u s t r y . T h i s r e f l e c t s t h e l e g i s l a t i o n ' s p h i l o s o p h i c a l e m p h a s i s on t h e r i g h t s o f t h e i n d i v i d u a l ( E m p l o y e r s ' C o u n c i l 1988) As l o n g as t h e e m p l o y e r ' s a p p l i c a t i o n i s t i m e l y , t h e d e a c c r e d i t a t i o n must be g r a n t e d . As a r e s u l t o f t h e s e c h a n g e s a number o f r e c e n t d e a c c r e d i t a t i o n s have o c c u r r e d . The B.C. 68 H o t e l s A s s o c i a t i o n , B.C. Road B u i l d e r s A s s o c i a t i o n , and C o n s t r u c t i o n L a b o u r R e l a t i o n s A s s o c i a t i o n have a l l d e a c c r e d i t e d s i n c e J a n u a r y o f 1988. However, e a c h o f t h e s e a s s o c i a t i o n s has c o n t i n u e d t o a c t f o r i t s members on a v o l u n t a r y b a s i s . More t i m e i s needed b e f o r e a c o m p l e t e a s s e s s m e n t o f t h e e f f e c t s o f t h i s l e g i s l a t i v e c hange c a n be made . C. R e g a r d i n g P i c k e t i n g The c o l l e c t i v e w i t h d r a w a l o f i t s members' l a b o u r i s t h e u n i o n ' s u l t i m a t e weapon. The i n t e n t o f p i c k e t i n g i s t o p e r s u a d e e m p l o y e e s n o t t o go t o work and c u s t o m e r s n o t t o do b u s i n e s s w i t h t h a t e m p l o y e r u n t i l he has s e t t l e d t h e l a b o u r d i s p u t e w i t h h i s e m p l o y e e s ( W e i l e r 1 9 8 0 ) . I t i s t h r o u g h p i c k e t i n g t h a t t h e u n i o n hopes t o i n f l i c t as much e c o n o m i c harm on t h e e m p l o y e r as t h e u n i o n members t h e m s e l v e s a r e s u f f e r i n g by w i t h d r a w i n g t h e i r s e r v i c e s and f o r e g o i n g t h e i r p a y . In B r i t i s h C o l u m b i a a p i c k e t l i n e i s an e f f e c t i v e method o f b r i n g i n g e c o n o m i c p r e s s u r e t o b e a r upon an e m p l o y e r s i n c e many p e o p l e , u n i o n members and nonmembers a l i k e , have s t r o n g l y h e l d b e l i e f s a b o u t t h e s a n c t i t y o f a p i c k e t l i n e . T h i s s tems i n p a r t f r o m B r i t i s h C o l u m b i a ' s i d e o l o g i c a l h i s t o r y r e f e r r e d t o i n C h a p t e r One. In a d d i t i o n , many u n i o n s have made t h e c r o s s i n g o f a p i c k e t l i n e a p u n i s h a b l e o f f e n s e , f u r t h e r e n s u r i n g t h a t most p i c k e t l i n e s i n t h i s p r o v i n c e a r e r e s p e c t e d ( W e i l e r 1 9 8 0 ) . 69 B e c a u s e p i c k e t i n g i n B r i t i s h C o l u m b i a i n v o k e s t h i s r e s p o n s e f r o m t h e w o r k i n g p o p u l a t i o n and t h e community a t l a r g e , c a r e must be t a k e n t h a t t h i s power i s n o t a b u s e d . P i c k e t i n g may o c c u r a t any o f a number o f p o s s i b l e s i t e s . A s e r i e s o f amendments t o t h e B.C. L a b o u r Code o f 1973 have been p a s s e d t o r e s t r i c t p i c k e t i n g t o t h e s i t e o f t h e l a w f u l s t r i k e o r l o c k o u t , known as t h e p r i m a r y s i t e . S e c o n d a r y s i t e s have been d e f i n e d d i f f e r e n t l y o v e r t i m e , and v a r i o u s d e f i n i t i o n s o f s e c o n d a r y p i c k e t i n g have a l t e r e d t h e power o f t h i s u n i o n weapon. The t h i r d c a t e g o r y o f a l l o w a b l e p i c k e t i n g i s a t s i t e s o f " a l l i e s " , t h o s e who a r e a i d i n g a s t r u c k e m p l o y e r i n l e s s e n i n g t h e i m p a c t o f t h e l a b o u r d i s p u t e . Laws a r e a l s o i n p l a c e t o p r o t e c t t h e r i g h t s o f o t h e r e m p l o y e r s , who, by c o i n c i d e n c e , a r e l o c a t e d on t h e same s i t e as t h e s t r u c k e m p l o y e r and whose b u s i n e s s e s a r e a f f e c t e d by t h e p i c k e t s o f t h a t e m p l o y e r . 1. P r e B.C. L a b o u r Code 1973 P r i o r t o t h e e n a c t m e n t o f t h e B.C. L a b o u r Code i n 1973, s t r i k e s , l o c k o u t s , and p i c k e t i n g were r e g u l a t e d by t h e L a b o u r R e l a t i o n s A c t and t h e T r a d e - U n i o n s A c t ( G e r m a i n e 1 9 8 3 ) . D i s p u t e s were s e t t l e d and r u l i n g s were made i n t h e p r o v i n c e ' s c o u r t s . 2. B.C. L a b o u r Code 1973 However, t h e 1973 L a b o u r Code gave j u r i s d i c t i o n t o t h e L a b o u r R e l a t i o n s B o a r d t o d e c i d e upon t h e s c o p e o f a l l o w a b l e p i c k e t i n g . S e c t i o n 85 o f t h e B.C. L a b o u r Code o u t l i n e d t h e 70 e x t e n t o f a l l o w a b l e p i c k e t i n g , s t a t i n g t h a t p i c k e t i n g was a l l o w e d a t t h e s i t e o f t h e l a w f u l s t r i k e o r l o c k o u t ( t h e p r i m a r y s i t e ) , a l l o t h e r p l a c e s o f o p e r a t i o n s o f t h e e m p l o y e r ( s e c o n d a r y s i t e s ) , and t h e p l a c e o f b u s i n e s s o f an a l l y o f t h e e m p l o y e r . S e c t i o n 86 h o w e v e r , gave d i r e c t i o n s t o t h e B o a r d t o r e a s o n a b l y r e s t r i c t common s i t e p i c k e t i n g t o t h e e m p l o y e r i n v o l v e d i n t h e l a b o u r d i s p u t e . 3. 1982 Amendments The o r i g i n a l s e c t i o n 85 o f t h e L a b o u r Code was l i b e r a l i n a l l o w i n g s e c o n d a r y and a l l y p i c k e t i n g b u t , d e s p i t e t h i s , t h e u n i o n movement was a c c u s e d o f a b u s i n g t h e s e p r o v i s i o n s . F o r m e r l a b o u r m i n i s t e r J a c k H e i n r i c h e s t i m a t e d t h a t h a l f t h e s e c o n d a r y and a l l y p i c k e t i n g u n d e r t a k e n by u n i o n s b e tween 1973 and 1982 was i l l e g a l e v e n u n d e r t h e s e p r o v i s i o n s ( E m p l o y e r s ' C o u n c i l 1 9 8 2 ) . In 1982 c h a n g e s were made t o s e c t i o n 85 r e q u i r i n g t h a t t h e L a b o u r R e l a t i o n s B o a r d f i r s t d e s i g n a t e a l l y s t a t u s b e f o r e a u n i o n was a b l e t o p i c k e t t h e s i t e o f t h a t a l l y . 4. 1984 Amendments In 1984 s e c t i o n s 85 and 86 were r e p e a l e d and r e p l a c e d by a new s e c t i o n 85. The amendments t o p i c k e t i n g l e g i s l a t i o n r e s u l t e d i n an o u t c r y f r o m t h e l a b o u r movement as t h e s e amendments s o u g h t t o s e v e r e l y r e s t r i c t what had been r e l a t i v e l y l i b e r a l p i c k e t i n g p r o v i s i o n s . However, t h e i n t e n t i o n o f t h e new s e c t i o n 85 was n o t f u l f i l l e d b e c a u s e o f 71 t h e w i d e i n t e r p r e t a t i o n g i v e n t o s e c t i o n 8 5 ( 3 ) by t h e L a b o u r R e l a t i o n s B o a r d . The i n t e n t i o n o f t h e amendments was t o s e v e r e l y r e s t r i c t s e c o n d a r y p i c k e t i n g . S e c o n d a r y p i c k e t i n g i n B r i t i s h C o l u m b i a has t a k e n on a d i f f e r e n t m e a n ing t h a n i t has i n o t h e r j u r i s d i c t i o n s ( G e r m a i n e 1 9 8 3 ) . The u s u a l i n t e r p r e t a t i o n o f s e c o n d a r y p i c k e t i n g was t h e p i c k e t i n g o f an e m p l o y e r ' s s u p p l i e r s o r c u s t o m e r s . In B.C. s e c o n d a r y p i c k e t i n g has come t o mean t h e p i c k e t i n g o f t h e e m p l o y e r i n v o l v e d i n t h e d i s p u t e a t o p e r a t i o n s s e p a r a t e f r o m t h e s i t e o f t h e s t r i k e . The new l e g i s l a t i o n r e q u i r e d t h e p r i o r a p p r o v a l o f t h e B o a r d b e f o r e s e c o n d a r y 0 £ a l l y p i c k e t i n g c o u l d be u n d e r t a k e n . In a d d i t i o n t o t h i s c hange t h e B o a r d was a l s o r e q u i r e d t o r e a s o n a b l y r e s t r i c t p i c k e t i n g a t a common s i t e t o t h e e m p l o y e r c a u s i n g t h e l o c k o u t o r whose e m p l o y e e s were on s t r i k e . H o wever, t h e i n t e r p r e t a t i o n o f t h i s l e g i s l a t i o n by t h e B o a r d d i d n o t r e f l e c t t h e i n t e n t i o n o f t h e s e c h a n g e s . The B o a r d ' s f i r s t d e c i s i o n c o n c e r n i n g t h e s c o p e o f a l l o w a b l e p i c k e t i n g u n d e r s e c t i o n 8 5 ( 3 ) was made i n S l a d e & S t e w a r t L t d . - a n d - R e t a i l W h o l e s a l e U n i o n , L o c a l No. 580 e t a l BCLRB No. 3 1 7 / 8 4 , ( 1 9 8 4 ) , 7 CLRBR (NS) 258. " C o n s i d e r i n g t h e words u s e d i n t h e new 8 5 ( 3 ) o f t h e L a b o u r Code i n t h e c o n t e x t o f t h e s t a t u t e as a w h o l e , we have c o n c l u d e d t h a t t h a t p r o v i s i o n l i m i t s p i c k e t i n g by members o f a t r a d e u n i o n t o s i t e s o r p l a c e s where t h e e m p l o y e e s p e r f o r m e d work on b e h a l f o f t h e i r e m p l o y e r and where now as a r e s u l t o f t h e s t r i k e o r l o c k o u t t h e y have c e a s e d t o work. The f o c u s f o r p e r m i s s i b l e p i c k e t i n g o f an e m p l o y e r i s no l o n g e r on t h e e m p l o y e r and t h o s e p l a c e s where he c a r r i e s on h i s b u s i n e s s . The f o c u s now i s on t h e e m p l o y e e s and t h e l o c a t i o n s where t h e y p e r f o r m work f o r t h e i r e m p l o y e r . I f t h e y c e a s e t o p e r f o r m work a t 72 t h o s e l o c a t i o n s as a r e s u l t o f t h e l a w f u l s t r i k e o r l o c k o u t , and t h o s e l o c a t i o n s c o n s t i t u t e s i t e s o r p l a c e s w i t h i n t h e m e a n i n g o f S e c t i o n 8 5 ( 3 ) o f t h e L a b o u r Code, t h e y w i l l be e n t i t l e d t o p i c k e t a t t h o s e l o c a t i o n s , s u b j e c t t o 8 5 ( 5 ) o f t h e L a b o u r Code." ( a t p. 265) ( e m p h a s i s a d d e d ) In t h i s r u l i n g t h e B o a r d a l s o s p e c i f i c a l l y r e j e c t e d t h e a r g u ment t h a t a s i g n i f i c a n t o r s u b s t a n t i a l amount o f work be p e r f o r m e d a t t h e l o c a t i o n i n o r d e r f o r i t t o be f o u n d t o be a s i t e w i t h i n t h e m e a n i n g o f S e c t i o n 8 5 ( 3 ) . To r e q u i r e t h i s w o u l d make r u l i n g s d i f f i c u l t and t h e r e s u l t w o u l d be u n c e r t a i n t y and an u neven r e g u l a t i o n o f p i c k e t i n g . Thus t h e p r e s e n c e o f e ven a m i n i m a l amount o f work a t a l o c a t i o n r e n d e r e d i t a p r i m a r y s i t e and a l l o w e d p i c k e t i n g t h e r e w i t h o u t t h e p r i o r a p p r o v a l o f t h e B o a r d . As a r e s u l t o f t h e B o a r d ' s a p p r o a c h c e r t a i n l o c a t i o n s were v i e w e d as p r i m a r y s i t e s t h a t u n d e r p r e v i o u s l e g i s l a t i o n w o u l d n o t have been c l a s s i f i e d as e i t h e r p r i m a r y o r e ven s e c o n d a r y s i t e s . F o r e x a m p l e , i n c a s e s s u c h as 7 - E l e v e n Food S t o r e s , BCLRB No.65/81 and Webb P r e s s P u b l i c a t i o n s L t d . , BCLRB No. 4 7 / 8 0 , [ 1 9 8 0 ] 3 CLRBR 186 i t was r u l e d t h a t t h e p u r e d e l i v e r y o r s u p p l y o f goods w o u l d n o t a t t r a c t p i c k e t i n g u n d e r t h e o l d S e c t i o n 8 5 ( 1 ) . Those same l o c a t i o n s u n d e r t h e 1984 amendments h o w e v e r , w o u l d be c l a s s i f i e d , n o t as s e c o n d a r y p i c k e t i n g s i t e s , b u t as p r i m a r y p l a c e s o f t h e s t r i k e o r l o c k o u t u n d e r S e c t i o n 8 5 ( 3 ) . 5. 1987 I n d u s t r i a l R e l a t i o n s R e f o r m A c t - B i l l 19 In 1987 t h e p r o v i n c i a l g o v e r n m e n t a n n o u n c e d i t s c o n t r o v e r s i a l p a c k a g e o f c h a n g e s t o t h e L a b o u r Code. A f t e r a 73 c r i p p l i n g f o r e s t i n d u s t r y d i s p u t e w h i c h s h u t down l a r g e p o r t i o n s o f t h e p r o v i n c e and i n w h i c h s e c o n d a r y p i c k e t i n g h a l t e d o p e r a t i o n s i n many o t h e r l o c a t i o n s , t h e S o c i a l C r e d i t g o v e r n m e n t e n a c t e d new l e g i s l a t i o n . The t h r u s t o f t h e l e g i s l a t i o n was i n " m i n i m i z i n g t h e h a r m f u l e f f e c t s o f l a b o u r d i s p u t e s on p e r s o n s who a r e n o t i n v o l v e d i n t h e d i s p u t e s " ( S e c . 27 o f B i l l 1 9 ) . The l a b o u r movement was i n c e n s e d , b u t d e s p i t e s t r o n g p r o t e s t s t h e c h a n g e s were p u t i n t o l a w . The p i c k e t i n g amendments o f B i l l 19 d i d n o t r e p e a l t h e p r e v i o u s S e c t i o n 85 b u t m e r e l y r e p e a l e d p o r t i o n s o f i t and r e p l a c e d them w i t h s i g n i f i c a n t amendments ( B u r k e 1 9 8 7 ) . The amendments a f f e c t t h e f o l l o w i n g : t h e d e f i n i t i o n s o f p r i m a r y and s e c o n d a r y s i t e s , a l l y s t a t u s , and e m p l o y e r . I n o r d e r f o r a l l y s t a t u s t o be f o u n d u n d e r t h e S e c t i o n 85 amendments o f 1987 an a l l y must be a c t i n g f o r t h e b e n e f i t o f t h e s t r u c k e m p l o y e r . P r i o r t o B i l l 19 t h e a c t o f a s s i s t a n c e was enough t o a l l o w p i c k e t i n g . Now i n o r d e r f o r a l l y s t a t u s t o be f o u n d t h e e m p l o y e r must be f o u n d t o be r e c e i v i n g a t a n g i b l e b e n e f i t f r o m t h e a i d g i v e n t o i t by t h e a l l y . P i c k e t i n g o f e i t h e r a p r i m a r y o r a s e c o n d a r y s i t e w o u l d now o n l y be a l l o w e d p r o v i d e d t h a t t h e work done a t t h e s i t e was an i n t e g r a l and s u b s t a n t i a l p a r t o f t h e e m p l o y e r ' s o p e r a t i o n . I n d e a l i n g w i t h t h e 1984 amendments t h e L a b o u r R e l a t i o n s B o a r d had r u l e d t h a t t o d e t e r m i n e " i n t e g r a l and s u b s t a n t i a l " w o u l d be open t o t o o much s u b j e c t i v e i n t e r p r e t a t i o n and w o u l d t h e r e f o r e become c o n f u s i n g . T h u s , 74 t h e B o a r d r u l e d t h a t any work done w o u l d be s u b j e c t t o p i c k e t i n g . T h a t i s no l o n g e r t h e c a s e . The l a s t m a j o r c h a n g e t o p i c k e t i n g l e g i s l a t i o n t o be i n c l u d e d i n B i l l 19 i s t h e d e f i n i t i o n o f e m p l o y e r . F o r t h e p u r p o s e s o f S e c t i o n 85 as amended i n 1987, an e m p l o y e r i s now d e f i n e d so t h a t " d i v i s i o n s o r o t h e r p a r t s o f a c o r p o r a t i o n o r f i r m s h a l l , i f t h e y a r e s e p a r a t e and d i s t i n c t o p e r a t i o n s , be t r e a t e d as s e p a r a t e and d i s t i n c t o p e r a t i o n s , be t r e a t e d as s e p a r a t e e m p l o y e r s " ( S e c t i o n 8 5 ) . T h i s now p r o h i b i t s t h e p i c k e t i n g o f r e l a t e d e n t e r p r i s e s o r d i v i s i o n s o f t h e same f i r m . V I . Summary and C o n c l u s i o n T h i s c h a p t e r has s o u g h t t o h i g h l i g h t t h e m a j o r f e a t u r e s o f t h e B.C. f o r e s t p r o d u c t s i n d u s t r y and t h e e n v i r o n m e n t i n w h i c h i t e x i s t s . The B.C. f o r e s t p r o d u c t s i n d u s t r y i s made up o f t h r e e d i s t i n c t i n d u s t r i e s , l o g g i n g , p u l p and p a p e r , and s a w m i l l i n g . I n d u s t r y p a r t i c i p a n t s a r e c o m p r i s e d o f b o t h l a r g e f u l l y i n t e g r a t e d f i r m s as w e l l as many s m a l l o p e r a t o r s o w n i n g l o g g i n g e q u i p m e n t o r a s m a l l s a w m i l l . The i n d u s t r y ' s p r o d u c t m a r k e t s c a n be d e s c r i b e d as p r e d o m i n a n t l y c y c l i c a l i n n a t u r e r e l y i n g on t h e ups and downs o f w o r l d c o m m o d i t y m a r k e t s . The g e n e r a l l y h i g h d e g r e e o f c o m p e t i t i o n i n t h e p r o d u c t m a r k e t , however i s i n c o n t r a s t t o t h e s y s t e m o f n e a r o l i g o p o l y w h i c h e x i s t s i n p r o v i n c i a l t i m b e r m a r k e t s . F i n a l l y , t h e r e e x i s t r e g i o n a l d i f f e r e n c e s b e t w e e n t h e C o a s t and t h e I n t e r i o r o f t h e 75 p r o v i n c e i n t e r m s o f t r e e s p e c i e s , h a r v e s t i n g t e c h n i q u e s , and p r o d u c t m a r k e t s . The l a b o u r r e l a t i o n s h i s t o r y o f t h e i n d u s t r y i s c h a r a c t e r i z e d by l o n g , t u m u l t u o u s s t r i k e s w h i c h have e l i c i t e d g o v e r n m e n t i n t e r v e n t i o n i n t h e f o r m o f f o r c e d m e d i a t i o n and bac k t o work o r d e r s . A f t e r n e a r l y e v e r y m a j o r d i s p u t e t h e g o v e r n m e n t e n a c t s new l a b o u r l e g i s l a t i o n t o p r e v e n t i n t h e f u t u r e t h e damage i n f l i c t e d upon t h e p r o v i n c e t h a t has j u s t o c c u r r e d . As a r e s u l t , t h e b a s i c t h r u s t o f B.C.'s l a b o u r l e g i s l a t i o n has c h a n g e d s u b s t a n t i a l l y s i n c e t h e e n a c t m e n t o f t h e B.C. L a b o u r Code i n 1973. D e a c c r e d i t a t i o n p r o v i s i o n s have become l o o s e r w h i l e t h e s c o p e o f l a w f u l p i c k e t i n g has become more r e s t r i c t e d . The n a t u r e o f t h e i n d u s t r y and t h e c o m p o s i t i o n o f e m p l o y e r s i n e a c h r e g i o n and s e c t o r have d e t e r m i n e d t h e b a r g a i n i n g s t r u c t u r e c h o i c e s o f e m p l o y e r s t o d a t e . The s t r e n g t h o f t h e i n d u s t r y ' s u n i o n s i s r e s p o n s i b l e f o r t h e c e n t r a l i z a t i o n o f b a r g a i n i n g i n t o e m p l o y e r a s s o c i a t i o n s . F I R , t h e l a r g e s t e m p l o y e r a s s o c i a t i o n and t h e one t r a d i t i o n a l l y r e s p o n s i b l e f o r n e g o t i a t i n g t h e p r o v i n c e w i d e i n d u s t r y a g r e e m e n t , has u s e d a c c r e d i t a t i o n t o e n s u r e i t s d i v e r s e m e m b ership s t a y s t o g e t h e r u n d e r p r e s s u r e . CONIFER s i g n s t h e a g r e e m e n t t h a t FIR has n e g o t i a t e d and t h e r e f o r e has n o t needed a c c r e d i t a t i o n as i t has n o t been i n a p o s i t i o n t o be p r e s s u r e d by t h e u n i o n f o r a s e t t l e m e n t ( u n t i l 1986). A n o t h e r r e a s o n t h a t a c c r e d i t a t i o n has n o t been as i m p o r t a n t t o CONIFER i s t h a t i t s m embership i s s m a l l e r and l e s s d i v e r s e t h a t F I R ' s . 76 PPIRB i s no l o n g e r a c c r e d i t e d a l t h o u g h i t was f o r f i f t e e n y e a r s . As an a s s o c i a t i o n o f l a r g e , e q u a l l y s t r o n g , and s o p h i s t i c a t e d e m p l o y e r s i t has l i t t l e need f o r a c c r e d i t a t i o n as t r a d i t i o n a l l y t h e r e has been l i t t l e d i v e r s i t y among member i n t e r e s t s . The f i n a l r e a s o n f o r t h e h i g h l y c e n t r a l i z e d s t r u c u t r e o f b a r g a i n i n g f o u n d i n t h e f o r e s t p r o d u c t s i n d u s t r y i s t h e h i g h l y i n t e r r e l a t e d n a t u r e o f t h e i n d u s t r y . A l a b o u r d i s p u t e i n any s e c t o r o f t h e i n d u s t r y c a n i n f l i c t e c o n o m i c damage upon o t h e r r e g i o n s and s e c t o r s . S e c o n d a r y p i c k e t i n g has c l o s e d down p l a n t s t h r o u g h o u t t h e p r o v i n c e w h e n e v e r t h e r e has been a d i s p u t e i n e i t h e r s e c t o r o r r e g i o n . I n a d d i t i o n , t h e l i n k b e t w een i n p u t s and o u t p u t s o f t h e v a r i o u s s e c t o r s has meant t h a t a d i s p u t e i n one a r e a c a n b r i n g o t h e r p l a n t s t o a s t a n d s t i l l e v e n t u a l l y w i t h o u t s e c o n d a r y p i c k e t s . T h i s c h a p t e r has d e s c r i b e d t h e e c o n o m i c , c o m p e t i t i v e , p o l i t i c a l and l e g a l e n v i r o n m e n t s i m p a c t i n g t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a . The f o c u s o f t h e n e x t c h a p t e r w i l l be on t h e p a r t i e s who i n t e r a c t i n t h i s e n v i r o n m e n t , t h e u n i o n s and t h e e m p l o y e r a s s o c i a t i o n s . 77 CHAPTER FOUR: THE INDUSTRIAL RELATIONS ACTORS AND THEIR BARGAINING STRUCTURE PREFERENCES IN THE PRE 1980S ENVIRONMENT I . I n t r o d u c t i o n The p u r p o s e o f t h i s r e s e a r c h i s t o d e t e r m i n e what c h a n g e s , i f a n y , have o c c u r r e d i n t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g i n B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y . The p r e v i o u s c h a p t e r d e s c r i b e d t h e n a t u r e o f t h e B.C. f o r e s t p r o d u c t s i n d u s t r y and t h e e n v i r o n m e n t i n w h i c h i t o p e r a t e s . The p u r p o s e o f t h i s c h a p t e r i s t o i d e n t i f y t h e p a r t i e s t h a t work i n t h e i n d u s t r y , t o d e s c r i b e t h e i r b a r g a i n i n g r e l a t i o n s h i p s , and t o o u t l i n e t h e a d v a n t a g e s t h a t t h e e s t a b l i s h e d s t r u c t u r e o f b a r g a i n i n g gave t o e a c h o f them. The l a t t e r p o i n t i s t h e most i m p o r t a n t . F o r , when t h e a d v a n t a g e s t h a t t h e t r a d i t i o n a l s t r u c t u r e o f b a r g a i n i n g gave t o t h e p a r t i e s no l o n g e r e x i s t f o r one o r b o t h o f them, t h e r e w i l l be p r e s s u r e on t h e s t r u c t u r e o f b a r g a i n i n g t o c h a n g e . Any c h a n g e s i n t h e p a r t i e s ' p r e f e r e n c e s f o r t h e e s t a b l i s h e d s t r u c t u r e o f b a r g a i n i n g i n t h e i n d u s t r y a r e c o v e r e d i n t h e n e x t c h a p t e r . I n f o r m a t i o n f o r t h i s c h a p t e r was g a t h e r e d f r o m b o t h p u b l i s h e d d a t a and f r o m e x t e n s i v e i n t e r v i e w s w i t h t h e r e p r e s e n t a t i v e s o f t h e t h r e e u n i o n s and t h e p r e s i d e n t s o f t h e t h r e e e m p l o y e r a s s o c i a t i o n s u n d e r s t u d y . The c h a p t e r b e g i n s by d e s c r i b i n g t h e t h r e e u n i o n s r e p r e s e n t i n g e m p l o y e e s 78 i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y : t h e IWA-Canada, t h e P u l p , P a p e r , and Woodworkers o f C a n a d a , and t h e C a n a d i a n P a p e r w o r k e r s * U n i o n . The s e c o n d s e c t i o n f o c u s e s on t h e t h r e e e m p l o y e r a s s o c i a t i o n s u n d e r s t u d y : F o r e s t I n d u s t r i a l R e l a t i o n s , t h e P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u , and t h e C o u n c i l on N o r t h e r n I n t e r i o r F o r e s t E m p l o yee R e l a t i o n s . The r e l a t i o n s h i p s among b o t h t h e u n i o n s and t h e e m p l o y e r a s s o c i a t i o n s a r e a l s o d e s c r i b e d . The c h a p t e r c o n c l u d e s w i t h a d e s c r i p t i o n o f t h e d e v e l o p m e n t o f i n d u s t r y w i d e b a r g a i n i n g i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y and d i s c u s s e s t h e a d v a n t a g e s t h i s s t r u c t u r e o f b a r g a i n i n g has g i v e n e a c h o f t h e p a r t i e s . I I . The U n i o n s A. The IWA U n i o n i z a t i o n came r e l a t i v e l y l a t e t o t h e f o r e s t p r o d u c t s i n d u s t r y o f B.C. U n t i l t h e e a r l y 1930s most f o r e s t r y w o r k e r s r e m a i n e d u n o r g a n i z e d w h i l e t h e i r c o u n t e r p a r t s w o r k i n g i n B.C.'s m i n e s , i n t h e b u i l d i n g t r a d e s o r as p r i n t e r s had been u n i o n i z e d f o r a t l e a s t a d e c a d e ( B e r g r e n 1 9 6 6 ) . Many f a c t o r s were r e s p o n s i b l e f o r t h i s . L o g g i n g camps were i s o l a t e d and p o r t a b l e s a w m i l l s o f t e n a c c o m p a n i e d l o g g i n g c r e w s i n t o t h e bush so t h a t t h o s e p r o d u c i n g l u m b e r were a l s o i s o l a t e d . At t h i s t i m e most o p e r a t i o n s were s m a l l and camps were o f t e n s e p a r a t e d by h u n d r e d s o f m i l e s o f t e n o n l y a c c e s s i b l e by w a t e r , m a k i n g o r g a n i z i n g d i f f i c u l t ( G o u l d 79 1 9 7 5 ) . L o g g e r s were a l s o a t r a n s i e n t g r o u p . F a c e d w i t h p o o r l i v i n g and w o r k i n g c o n d i t i o n s t h e w o r k e r ' s o n l y d e f e n c e was q u i t t i n g and m o v i n g f r o m camp t o camp, w h i c h many d i d ( B e r g r e n 1 9 6 6 ) . I n a d d i t i o n t o t h e p h y s i c a l and g e o g r a p h i c o b s t a c l e s t o o r g a n i z i n g f o r e s t r y w o r k e r s t h e r e was a l s o c o m m i t t e d e m p l o y e r r e s i s t a n c e t o t h e u n i o n i z a t i o n o f t h e i r w o r k f o r c e s . U n i o n a c t i v i t y was f o r b i d d e n and men were f i r e d f o r i t . S i m p l y r e a d i n g t h e u n i o n n e w s l e t t e r , B.C. Lumber W o r k e r , was enough t o c o s t a man h i s j o b ( G o u l d 1 9 7 5 ) . G o u l d ( 1 9 7 5 ) p o i n t s o u t t h a t t h e f i r s t s e r i o u s and s u c c e s s f u l o r g a n i z e r s were d e e p l y c o m m i t t e d t o s o c i a l i s t - c o m m u nist i d e a l s and c o u l d n o t i m a g i n e a c h i e v i n g b e t t e r w o r k i n g c o n d i t i o n s w i t h o u t c h a n g i n g t h e e x i s t i n g c a p i t a l i s t s y s t e m . Many o f t h e s e men and women had been d e e p l y i n f l u e n c e d by t h e I n d u s t r i a l W o r k e r s o f t h e W o r l d (IWW) and t h e r a d i c a l i d e a s spawned f r o m t h i s movement s t a y e d a l i v e i n B.C.'s e a r l i e s t f o r e s t w o r k e r s ' u n i o n , t h e Lumber W o r k e r s ' I n d u s t r i a l U n i o n . By t h e 1940s t h e I n t e r n a t i o n a l Woodworkers o f A m e r i c a g a i n e d s t r e n g t h on B.C.'s c o a s t . However, i t was n o t u n t i l t h e 1950s t h a t w o r k e r s i n t h e I n t e r i o r o f t h e p r o v i n c e were o r g a n i z e d by t h e IWA on a l a r g e s c a l e ( B e r s o h n 1 9 8 1 ) . In i t s f o r m a t i v e y e a r s t h e IWA was p l a g u e d by i n t e r n a l s t r i f e and i n 1948, upon o r d e r s f r o m t h e I n t e r n a t i o n a l t o p u r g e c o mmunist l e a d e r s , a g r o u p o f d i s s i d e n t s s e p a r a t e d f r o m t h e IWA t o f o r m t h e W o o d w o r k e r s ' I n d u s t r i a l U n i o n o f 80 C a n a d a . D e s p i t e i t s e a r l i e r , more r a d i c a l h e r i t a g e and some v e s t i g e s o f r a d i c a l i s m t h a t r e m a i n t o d a y , t h e IWA-Canada i s g e n e r a l l y v i e w e d as b e i n g on t h e r i g h t - w i n g o f t h e C a n a d i a n l a b o u r movement. E s p e c i a l l y o v e r t h e p a s t two d e c a d e s , d u r i n g p e r i o d s o f enormous t e c h n o l o g i c a l change w h i c h o t h e r u n i o n s have r e f u s e d t o a c c e p t o r p a r t i c i p a t e i n , t h e IWA has i n f a c t e n c o u r a g e d t h e i n d u s t r y t o u n d e r t a k e t h e s e c h a n g e s . The IWA-Canada has p r o v e n i t s e l f t o be w i l l i n g t o work w i t h management on o c c a s i o n and t o be a c o o p e r a t i v e p a r t n e r i n t h e i m p l e m e n t a t i o n o f new t e c h n o l o g y . T o d a y , t h e IWA-Canada ( a s i t i s now known s i n c e i t has f o r m a l l y s e p a r a t e d f r o m t h e i n t e r n a t i o n a l u n i o n o f t h e same name) i s t h e d o m i n a n t u n i o n i n B.C.'s l o g g i n g and s a w m i l l i n g o p e r a t i o n s . C l o s e t o 100% o f C o a s t l o g g e r s a r e r e p r e s e n t e d by t h e IWA-Canada w h e r e a s , i n c o n t r a s t , v e r y few o f t h e i r I n t e r i o r c o u n t e r p a r t s a r e . A p p r o x i m a t e l y 8 0 % o f t h e p r o v i n c e ' s s a w m i l l w o r k e r s a r e u n i o n i z e d and r e p r e s e n t e d by t h e IWA. B. The P u l p U n i o n s : t h e PPWC and t h e CPU P u l p and p a p e r w o r k e r s i n B r i t i s h C o l u m b i a a r e n e a r l y 100% u n i o n i z e d by one o f two u n i o n s : t h e P u l p , P a p e r and Woodworkers o f Canada and t h e C a n a d i a n P a p e r w o r k e r s ' U n i o n . The CPU r e p r e s e n t s a b o u t 8500 w o r k e r s , t h e PPWC 6500 w o r k e r s , w h i l e a p p r o x i m a t e l y 150 w o r k e r s a t two s m a l l I n t e r i o r m i l l s r e m a i n n o n - u n i o n . B o t h t h e s e u n i o n s a r e t h e o f f s p r i n g o f t h e o r i g i n a l i n t e r n a t i o n a l u n i o n s t h a t f i r s t 81 o r g a n i z e d p u l p and p a p e r w o r k e r s i n t h e p r o v i n c e : t h e U n i t e d P a p e r m a k e r s and P a p e r w o r k e r s * U n i o n and t h e I n t e r n a t i o n a l B r o t h e r h o o d o f P u l p , S u l f i t e , and P a p e r M i l l W o r k e r s . In t h e e a r l y 1 9 6 0 s , t h e f o r e r u n n e r o f t o d a y ' s PPWC, t h e P u l p and P a p e r W o r k e r s ' U n i o n o f C a n a d a , b r o k e away f r o m t h e I n t e r n a t i o n a l B r o t h e r h o o d o f P u l p , S u l f i t e , and P a p e r M i l l W o r k e r s i n p r o t e s t a g a i n s t what i t p e r c e i v e d t o be t h e u n d e m o c r a t i c p r i n c i p l e s o f t h e i n t e r n a t i o n a l u n i o n . The new C a n a d i a n u n i o n s t r e s s e d t h e i m p o r t a n c e o f g r a s s r o o t s , b o t t o m up p a r t i c i p a t i o n by t h e membership and i t s c o n s t i t u t i o n e f f e c t i v e l y p l a c e d c o n t r o l o f t h e u n i o n i n t h e hands o f t h e r a n k and f i l e . R a i d i n g o f t h e o t h e r two p u l p and p a p e r u n i o n s i n t h e p r o v i n c e f o l l o w e d ( V a n c o u v e r Sun May 2 8 , 1 9 7 5 ) . B i t t e r i n f i g h t i n g b e t w e e n t h e s e u n i o n s c o n t i n u e d f o r y e a r s . The n e w l y f o r m e d u n i o n , on a c r u s a d e a g a i n s t t h e e v i l s o f i n t e r n a t i o n a l u n i o n i s m , t u r n e d i t s a t t e n t i o n t o a t t r a c t i n g members f r o m B.C.'s s a w m i l l s t o o , r a i d i n g IWA l o c a l s . B i t t e r f e e l i n g s a b o u t t h e s e e a r l y r a i d i n g a t t e m p t s and s u c c e s s e s r e m a i n t o d a y . In t h e e a r l y 1970s s e v e r a l more c h a n g e s o c c u r r e d i n t h e o r g a n i z a t i o n o f t h e p u l p and p a p e r u n i o n s i n B r i t i s h C o l u m b i a . In 1972 t h e U n i t e d P a p e r m a k e r s and P a p e r w o r k e r s ' U n i o n merged w i t h t h e I n t e r n a t i o n a l B r o t h e r h o o d o f P u l p , S u l f i t e , and P a p e r M i l l W o r k e r s t o f o r m t h e U n i t e d P a p e r w o r k e r s ' I n t e r n a t i o n a l U n i o n . Then i n 1973, t h e b r e a k - 82 away P u l p and P a p e r W o r k e r s ' U n i o n c h a n g e d i t s name t o t h e P u l p , P a p e r and W o o d w o r k e r s ' U n i o n o f Canada i n o r d e r t o r e f l e c t i t s wood w o r k i n g membership ( t h e r e s u l t o f s e v e r a l s u c c e s s f u l r a i d s o f IWA b a r g a i n i n g u n i t s ) and t h e b r e a d t h o f i t s o r g a n i z i n g s c o p e . The f i n a l c h ange came i n 1974 when t h e C a n a d i a n P a p e r w o r k e r s * U n i o n was f o r m e d when t h e C a n a d i a n p o r t i o n o f t h e U n i t e d P a p e r w o r k e r s * I n t e r n a t i o n a l U n i o n b r o k e away t o f o r m i t s own n a t i o n a l u n i o n . The s e p a r a t i o n o f t h e C a n a d i a n members a l l o w e d them t o w r i t e a new c o n s t i t u t i o n and t o change t h e u n i o n ' s s t r u c t u r e m a k i n g i t more r e s p o n s i v e t o l o c a l u n i o n c o n c e r n s . The C a n a d i a n P a p e r w o r k e r s ' U n i o n p u t maximum c o n t r o l i n t h e hands o f t h e r a n k and f i l e and opened t h e c h a n n e l s o f p a r t i c i p a t i o n i n t h e r u n n i n g o f t h e u n i o n t o t h e membership ( P r o v i n c e J u n e 12, 1 9 7 4 ) . R a i d i n g b e t ween t h e two n a t i o n a l u n i o n s c o n t i n u e d i n t o t h e mid 1 9 7 0 s . In 1975, d e s p i t e c o n t i n u e d i n f i g h t i n g and r a i d i n g , P r e s i d e n t A r t Gruntman o f t h e C a n a d i a n P a p e r w o r k e r s ' U n i o n s u g g e s t e d t h e p o s s i b i l i t y o f a me r g e r between t h e two u n i o n s ( V a n c o u v e r Sun May 2 8 , 1 9 7 5 ) . D e s p i t e t h e me r g e r n e v e r b e i n g a c h i e v e d , j o i n t b a r g a i n i n g b e t w een t h e u n i o n s w i t h t h e P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u e v e n t u a l l y became a r e a l i t y a l t h o u g h t h e two have c o n t i n u e d t o s i g n s e p a r a t e m a s t e r a g r e e m e n t s w i t h t h e e m p l o y e r s ' a s s o c i a t i o n . 83 C. The U n i o n s ' B a r g a i n i n g R e l a t i o n s h i p s T r a d i t i o n a l l y , t h e IWA has s e t t h e p a t t e r n f o r s e t t l e m e n t s i n t h e i n d u s t r y . In p r a c t i c e , t h e C o a s t m a s t e r a g r e e m e n t has been t h e a g r e e m e n t t h a t s e t s t h e pace f o r b o t h t h e S o u t h e r n and N o r t h e r n I n t e r i o r IWA c o n t r a c t s as w e l l as f o r t h e PPIRB and CPU/PPWC a g r e e m e n t s . The IWA i s t h e o l d e s t and n u m e r i c a l l y t h e l a r g e s t u n i o n i n t h e p r o v i n c e . I t i s a l s o t h o u g h t t h a t t h e IWA's l o c a l s t r u c t u r e , b e i n g b a s e d on g e o g r a p h i c a l a r e a s r a t h e r t h a n by p l a n t s , g i v e s i t g r e a t e r i n h e r e n t power t o c o n c l u d e c o n t r a c t s more f a v o u r a b l e t o t h e i n d u s t r y ' s u n i o n members ( C l a r k e 1 9 8 9 ) . T h i s t r a d i t i o n o f IWA p a t t e r n s e t t i n g h o w e v e r , has c r e a t e d some a n i m o s i t y b e t ween t h e u n i o n s on t h e two s i d e s o f t h e i n d u s t r y . As t h e p a t t e r n s e t t e r , t h e IWA i n v a r i a b l y s e t t l e s b e f o r e t h e p u l p u n i o n s . I f p u l p m a r k e t s a r e more b u o y a n t t h a n l u m b e r m a r k e t s i n a g i v e n y e a r , o r i f d i f f e r e n t i s s u e s a r e o u t s t a n d i n g i n p u l p n e g o t i a t i o n s t h a t were n o t o f c o n c e r n t o t h e W o o d w o r k e r s , t h e p u l p u n i o n s may s t r i k e a f t e r t h e IWA has s e t t l e d . A s t r i k e by t h e p u l p u n i o n s has o f t e n meant s e c o n d a r y p i c k e t i n g o f IWA m i l l s . T h i s p r a c t i c e has c r e a t e d b i t t e r n e s s b e t ween t h e two s i d e s . A n i m o s i t y b e t ween t h e t h r e e u n i o n s i s f u r t h e r compounded by t h e i r p h i l o s o p h i c a l d i f f e r e n c e s . The PPWC i s t h e most h i g h l y d e m o c r a t i c and g r a s s r o o t s o r i e n t e d o f t h e t h r e e u n i o n s and v i e w s i t s e l f as d i s t i n c t i v e i n i t s p h i l o s o p h y f r o m t h e o t h e r two u n i o n s . I t i s n o t a member o f t h e C a n a d i a n L a b o u r C o n g r e s s o r t h e B.C. F e d e r a t i o n o f 84 L a b o u r , s c o r n i n g t h e s e b o d i e s as f e d e r a t i o n s o f l a r g e , f o r e i g n c o n t r o l l e d , o f t e n c o r r u p t u n i o n s . The o t h e r two u n i o n s a r e members o f t h e s e two l a b o u r f e d e r a t i o n s . The two p u l p u n i o n s a r e f u r t h e r d i v i d e d by a p a s t p e r i o d o f i n t e n s e r i v a l r y d u r i n g t h e l a t e 1960s and e a r l y 1 9 7 0 s . The IWA, t o o , has been r a i d e d by t h e PPWC and t h i s has marked t h e r e l a t i o n s h i p b e t ween t h e s e two u n i o n s . In r e c e n t y e a r s , i t a p p e a r e d t h a t t h i s deep s e a t e d a n i m o s i t y m i g h t l i f t . I n 1983, when t h e t h r e e u n i o n s were b e i n g p r e s s u r e d by b o t h s i d e s o f t h e i n d u s t r y f o r c o n c e s s i o n s i n c o n t r a c t l a n g u a g e and were b e i n g o f f e r e d l i t t l e o r no wage i n c r e a s e s , t h e u n i o n s f o r m e d a l o o s e c o a l i t i o n . The two p u l p u n i o n s n e g o t i a t e d a t t h e same t a b l e w i t h t h e P u l p B u r e a u w h i l e J a c k Munro, as a r e p r e s e n t a t i v e o f t h e IWA, j o i n e d them a t t h e t a b l e as an o b s e r v e r . However, t h e IWA s e t t l e d w i t h t h e i n d u s t r y i n 1983 on t e r m s t h a t t h e p u l p u n i o n s c o u l d n o t a g r e e t o . The IWA s u b s e q u e n t l y r e t u r n e d t o work o n l y t o have t h e i r w o r k p l a c e s p i c k e t e d by s t r i k i n g p u l p and p a p e r w o r k e r s . T h i s a c t i o n e n s u r e d t h e r e t u r n o f b i t t e r n e s s b e t ween t h e u n i o n s i n t h e two s e c t o r s o f t h e f o r e s t p r o d u c t s i n d u s t r y . However, m a k i n g t h e IWA t h e common enemy has i m p r o v e d t h e r e l a t i o n s h i p b e t ween t h e two p u l p u n i o n s . B o t h i n 1986 and i n 1988 t h e two p u l p u n i o n s u n d e r t o o k j o i n t n e g o t i a t i o n s w i t h t h e now d e a c c r e d i t e d P u l p B u r e a u . 85 I I I . The E m p l o y e r A s s o c i a t i o n s The c y c l e s o f boom and b u s t t o w h i c h B.C.'s most i m p o r t a n t p r i m a r y i n d u s t r y i s e x p o s e d a f f e c t e m p l o y e r s , e m p l o y e e s , and t h e g o v e r n m e n t o f t h e p r o v i n c e . E m p l o y e e s a r e o f t e n s u b j e c t t o l o n g and w i d e s p r e a d l a y o f f s d u r i n g d o w n t u r n s and a r e o f t e n c a l l e d o u t on s t r i k e when booms f o l l o w i n o r d e r t o make up f o r wages l o s t w h i l e on l a y o f f . I n s m a l l e r c e n t r e s i t i s n o t j u s t t h o s e d i r e c t l y e m p l o y e d i n t h e f o r e s t i n d u s t r y who a r e a f f e c t e d , b u t t h e b u s i n e s s o wners i n t h e s e c e n t r e s c a n a l s o be d i r e c t l y a f f e c t e d when a l a r g e p r o p o r t i o n o f t h e town i s on s t r i k e o r l a y o f f . E m p l o y e r s a r e harmed n o t o n l y by l a b o u r d i s p u t e s b u t a l s o by s w i n g s i n m a r k e t p r i c e s . Most c a n n o t a f f o r d t o w i t h s t a n d s t r i k e s d u r i n g boom p h a s e s when c o m p e t i t o r s c a n e a s i l y s w a l l o w t h e i r m a r k e t s h a r e n o r c a n t h e y a f f o r d t o c o n t i n u e t o pay h i g h wages when t h e m a r k e t a g a i n becomes d e p r e s s e d and p r o f i t m a r g i n s become r a z o r t h i n . F i n a l l y , g o v e r n m e n t t o o , i s a d v e r s e l y a f f e c t e d by t h e s e c y c l e s . I t w o u l d l i k e t o be a b l e t o r e l y upon a s t e a d y i n come s t r e a m t o f i n a n c e g o v e r n m e n t e x p e n d i t u r e s and s o c i a l p r o g r a m s ( B e n n e t t 1989). However, i n t i m e s o f p r i c e d o w n t u r n s o r l a b o u r d i s p u t e s , i n c r e a s e d p r e s s u r e i s p u t on unemployment p r o g r a m s and a d e c r e a s e i n t a x r e v e n u e s s t r a i n s p r o v i n c i a l b u d g e t s . B e c a u s e o f t h e deep and w i d e s p r e a d i m p a c t t h e f o r e s t i n d u s t r y has on t h e economy o f B r i t i s h C o l u m b i a i t has l o n g been a p r i o r i t y f o r a l l c o n c e r n e d t o m i n i m i z e d i s r u p t i o n s 86 and smooth t h e boom and b u s t c y c l e s t o w h i c h t h i s i n d u s t r y i s s u b j e c t e d . A t t e m p t s t o e l i m i n a t e l a b o u r u n r e s t have been t h e f o c u s o f g o v e r n m e n t s and e m p l o y e r s a l i k e . The f i r s t v o l u n t a r y e m p l o y e r a s s o c i a t i o n s s o u g h t t o p r e v e n t s u c c e s s i v e waves o f s e l e c t i v e s t r i k e s by t h e i r u n i o n s . L a t e r , t h e g o v e r n m e n t e n a c t e d l e g i s l a t i o n t o f o r m a l i z e t h e s e a s s o c i a t i o n s and t o make them more p e r m a n e n t and more d i f f i c u l t t o l e a v e . F o r t h e most p a r t , t h e u n i o n s i n v o l v e d have n o t p r o t e s t e d t h e s e moves t o w a r d s c e n t r a l i z a t i o n b u t r a t h e r have welcomed them as a way o f m a k i n g n e g o t i a t i o n s more e f f i c i e n t and a c h i e v i n g p a r i t y among l o c a l s t h r o u g h o u t t h e p r o v i n c e . A. FIR F o r e s t I n d u s t r i a l R e l a t i o n s L t d . , known as F I R , was e s t a b l i s h e d i n 1942 u n d e r t h e name R.V. S t u a r t R e s e a r c h L i m i t e d . The e m p l o y e r a s s o c i a t i o n , t h e f i r s t i n B r i t i s h C o l u m b i a , was o r g a n i z e d by s i x l o g g i n g e m p l o y e r s o p e r a t i n g on t h e Queen C h a r l o t t e I s l a n d s whose w o r k f o r c e s were s u d d e n l y u n i o n i z e d by t h e IWA ( B e n n e t t 1 9 8 9 ) . The need t o n e g o t i a t e w i t h what t h e e m p l o y e r s p e r c e i v e d t o be a r a d i c a l u n i o n d r o v e them t o g e t h e r i n o r d e r t o c o u n t e r t h e u n i o n ' s power. D u r i n g t h e n e x t d e c a d e as t h e u n i o n o r g a n i z e d more and more o f t h e C o a s t l u m b e r i n d u s t r y , n e w l y u n i o n i z e d e m p l o y e r s j o i n e d t h e r a n k s o f R.V. S t u a r t R e s e a r c h . In 1949 t h e a s s o c i a t i o n ' s name was c h a n g e d t o F o r e s t I n d u s t r i a l R e l a t i o n s L i m i t e d . 87 In 1970, a f t e r t w e n t y - e i g h t y e a r s o f s u c c e s s f u l n e g o t i a t i o n as a v o l u n t a r y a s s o c i a t i o n , FIR became t h e f i r s t e m p l o y e r a s s o c i a t i o n t o become a c c r e d i t e d . A c c r e d i t a t i o n d i d n o t change t h e way i n w h i c h t h e a s s o c i a t i o n c o n d u c t e d i t s b u s i n e s s ; i t s main r e a s o n f o r a c c r e d i t i n g was t o i n d i c a t e i t s l e a d e r s h i p r o l e i n t h e e m p l o y e r a s s o c i a t i o n c o m m u n i t y and t o show i t s a p p r o v a l o f t h e g o v e r n m e n t ' s n e w l y e n a c t e d a c c r e d i t a t i o n l e g i s l a t i o n . C u r r e n t l y , FIR n e g o t i a t e s on b e h a l f o f e i g h t y C o a s t a l e m p l o y e r s who c o n t r o l a p p r o x i m a t e l y 180 o p e r a t i o n s , w h i c h i n c l u d e s a w m i l l s , l o g g i n g o p e r a t i o n s , and p l y w o o d m i l l s . The p o l i c i e s and d i r e c t i o n s o f FIR a r e l a r g e l y d e t e r m i n e d by i t s B o a r d o f D i r e c t o r s . The B o a r d i s c o m p r i s e d o f s i x t e e n members, s i x o f whom a r e r e p r e s e n t a t i v e s o f F I R ' s s i x i n t e g r a t e d members. The o t h e r t e n members r e p r e s e n t i n d e p e n d e n t m i l l o wners and i n d e p e n d e n t l o g g e r s . N e e d l e s s t o s a y , t h e i n t e g r a t e d f i r m s a r e v e r y i n f l u e n t i a l members o f t h e a s s o c i a t i o n . However, t h i s i s n o t t o s a y t h a t t h e c o n c e r n s o f s m a l l e r members a r e i g n o r e d . A l l d e c i s i o n s a r e made by c o n s e n s u s i n w h i c h t h e s m a l l c o m p a n i e s a r e p r e p a r e d t o accommodate t h e i n t e r e s t s o f t h e l a r g e f i r m s and i n r e t u r n t h e l a r g e c o m p a n i e s a r e w i l l i n g t o c o m p r o m i s e f o r t h e s m a l l e r i n d e p e n d e n t s . A l l members a r e v e r y aware o f t h e f a c t t h a t i t t a k e s c o o p e r a t i o n f o r an a s s o c i a t i o n as l a r g e and as d i v e r s e as FIR t o work. 88 B. CONIFER The o t h e r e m p l o y e r a s s o c i a t i o n r e p r e s e n t i n g l o g g i n g c o m p a n i e s and l u m b e r p r o d u c e r s u n d e r s t u d y h e r e i s t h e C o u n c i l on N o r t h e r n I n t e r i o r F o r e s t Employment R e l a t i o n s , known more s i m p l y by i t s a c r o n y m , CONIFER. U n i o n i z a t i o n o f f o r e s t r y w o r k e r s i n t h e I n t e r i o r o f t h e p r o v i n c e came n e a r l y a d e c a d e a f t e r f o r e s t r y w o r k e r s on t h e C o a s t were o r g a n i z e d . As a r e s u l t , t h e r e was no e m p l o y e r o r g a n i z a t i o n i n t h e N o r t h e r n I n t e r i o r u n t i l 1950. In t h a t y e a r t h e N o r t h e r n I n t e r i o r Lumbermen's A s s o c i a t i o n was f o r m e d . NILA p r o v i d e d I n t e r i o r e m p l o y e r s w i t h b o t h t r a d e a s s o c i a t i o n b e n e f i t s and i n f o r m a t i o n and i n d u s t r i a l r e l a t i o n s s e r v i c e s . In 1972, NILA c e a s e d t o e x i s t as i t s two r o l e s were t a k e n o v e r by two new a s s o c i a t i o n s , t h e C o u n c i l o f F o r e s t I n d u s t r i e s , t h e p r o v i n c i a l t r a d e a s s o c i a t i o n , and N o r t h C a r i b o o F o r e s t L a b o u r R e l a t i o n s A s s o c i a t i o n , i t s i n d u s t r i a l r e l a t i o n s c o u n t e r p a r t . In 1985 NCFLRA became CONIFER. The o r g a n i z a t i o n ' s c o n s t i t u t i o n was c h a n g e d , i t s name became e a s i e r t o remember, and e m p l o y e r s i n t h e C a r i b o o and t h e f a r N o r t h were e n c o u r a g e d t o j o i n . P r e s e n t l y , CONIFER has t w e n t y - f i v e c o r p o r a t e members, b o t h u n i o n and n o n - u n i o n , o p e r a t i n g t h i r t y - t w o m i l l s b e t ween W i l l i a m s L ake and F o r t N e l s o n , as f a r west as D e c k e r Lake and e a s t t o t h e B.C.- A l b e r t a b o r d e r ( G u n d e r s o n 1989). A number o f s i g n i f i c a n t f i r m s o p e r a t i n g i n t h e N o r t h e r n I n t e r i o r a r e n o t members o f CONIFER. Some, s u c h as C a r r i e r Lumber, s i g n memoranda o f a g r e e m e n t a t t h e c o n c l u s i o n o f 89 e a c h CONIFER-IWA c o n t r a c t . O t h e r s s u c h as t h e l a r g e f i r m s o f Weldwood and N o r t h w o o d , n e g o t i a t e a f t e r CONIFER b u t a g a i n end w i t h much t h e same c o n t r a c t l a n g u a g e . A c c r e d i t a t i o n has a l w a y s been r e j e c t e d by t h e s e N o r t h e r n I n t e r i o r f i r m s . Most I n t e r i o r p r o d u c e r s a r e s m a l l , f i e r c e l y i n d e p e n d e n t e n t r e p r e n e u r s who have f e l t t h a t a c c r e d i t a t i o n w o u l d c o n s t r a i n t h e i r b u s i n e s s and w o u l d f o r c e them t o g i v e up t h e i r i n d i v i d u a l r i g h t s . A new c o n s t i t u t i o n f o r CONIFER members was r e c e n t l y d r a f t e d i n w h i c h t h e d i r e c t i o n o f t h e a s s o c i a t i o n i s m o v i n g e v e n f u r t h e r away f r o m a c c r e d i t a t i o n and more t o w a r d s i n d i v i d u a l l e v e l b a r g a i n i n g . The s e n t i m e n t among CONIFER members i s t h a t b a r g a i n i n g must be moved bac k down t o t h e l o w e s t l e v e l . S e t t l e m e n t s w h i c h some s m a l l e r members c a n n o t a f f o r d c a n no l o n g e r be t o l e r a t e d . A c c e p t i n g them i s v i e w e d as a s h o r t r a n g e c r i s i s s o l u t i o n , n o t a l o n g t e r m s e n s i b l e way t o c o n d u c t b u s i n e s s ( G u n d e r s o n 1 9 8 9 ) . C. PPIRB The P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u was f o r m e d as a l o o s e l y k n i t a s s o c i a t i o n i n 1946 a t t h e t i m e t h a t e m p l o y e e s i n t h e p r o v i n c e ' s p u l p and p a p e r m i l l s were u n i o n i z i n g . F o r m a l j o i n t b a r g a i n i n g by t h e a s s o c i a t i o n on b e h a l f o f i t s members began i n 1951. The P u l p B u r e a u , as i t i s known more i n f o r m a l l y , a c c r e d i t e d s h o r t l y a f t e r t h e p r o v i n c i a l g o v e r n m e n t e n a c t e d a c c r e d i t a t i o n l e g i s l a t i o n i n 1970. 90 The PPIRB i s one o f t h e e m p l o y e r a s s o c i a t i o n s i n B r i t i s h C o l u m b i a t o have r e c e n t l y d e a c c r e d i t e d . In 1985, i n t h e wake of a l o n g and b i t t e r l o c k - o u t and s t r i k e , t h e a s s o c i a t i o n a p p l i e d f o r and r e c e i v e d p e r m i s s i o n t o d e a c c r e d i t . D e s p i t e i t s r e t u r n t o v o l u n t a r y s t a t u s , t h e l a s t two r o u n d s of n e g o t i a t i o n s have r e s u l t e d i n a s s o c i a t i o n f o r g e d a g r e e m e n t s w i t h a l l e m p l o y e r s but one or two i n c l u d e d a t t h e n e g o t i a t i n g t a b l e . However, on b o t h o c c a s i o n s , even t h o s e not p r e s e n t a t t h e t a b l e d u r i n g n e g o t i a t i o n s s u b s e q u e n t l y s i g n e d t h e i n d u s t r y n e g o t i a t e d c o l l e c t i v e a g r e e m e n t . Up u n t i l i t s d e a c c r e d i t a t i o n , t h e B u reau r e p r e s e n t e d a l l u n i o n i z e d p r i m a r y p u l p p r o d u c e r s i n t h e p r o v i n c e . Membership i s s m a l l - g e n e r a l l y between t w e l v e and f o u r t e e n e m p l o y e r s who own t h e n i n e t e e n or t w e n t y m i l l s o p e r a t i n g i n t h e p r o v i n c e . As a c o n s e q u e n c e e v e r y member has a s e a t on t h e B u r e a u ' s Board o f D i r e c t o r s . In t h i s way d e c i s i o n s a r e r e a c h e d as between e q u a l s and t h e move t o a v o l u n t a r y a s s o c i a t i o n was e a s i l y a c c o m p l i s h e d w i t h o u t w o r r i e s of member d e f e c t i o n d u r i n g n e g o t i a t i o n s . D. T h e i r B a r g a i n i n g R e l a t i o n s h i p s The r e l a t i o n s h i p between the t h r e e e m p l o y e r a s s o c i a t i o n s i s somewhat s i m p l e r t h a n t h a t among t h e t h r e e u n i o n s as d e s c r i b e d above. The r e l a t i o n s h i p between FIR and CONIFER i s one o f p a t t e r n s e t t i n g and f o l l o w i n g . The t r a d i t i o n a l a p p r o a c h t o 91 a r o u n d o f c o l l e c t i v e b a r g a i n i n g i n t h e B.C. f o r e s t r y i n d u s t r y has been f o r FIR t o n e g o t i a t e t h e C o a s t m a s t e r a g r e e m e n t w h i c h t h e n becomes t h e benchmark f o r b o t h t h e S o u t h e r n and t h e N o r t h e r n I n t e r i o r a g r e e m e n t s . F o r m e r l y , t h e C o a s t a g r e e m e n t e x p i r e d b e f o r e t h e I n t e r i o r a g r e e m e n t s and c o n s e q u e n t l y was renewed f i r s t . In t h e p a s t t h e C o a s t m a s t e r a g r e e m e n t has been a c c e p t e d w i t h l i t t l e o r no m o d i f i c a t i o n s by t h e I n t e r i o r e m p l o y e r a s s o c i a t i o n s . A l t h o u g h t o d a y a l l t h r e e a g r e e m e n t s e x p i r e on t h e same d a t e and n e g o t i a t i o n s p r o c e e d c o n c u r r e n t l y b e tween t h e IWA and t h e t h r e e e m p l o y e r a s s o c i a t i o n s , FIR s t i l l s e t s t h e p a t t e r n and n e g o t i a t e s what i s i n f a c t t h e p r o v i n c e w i d e f o r e s t i n d u s t r y a g r e e m e n t . FIR has t a k e n t h i s l e a d e r s h i p r o l e m a i n l y b e c a u s e i t i s t h e r e p r e s e n t a t i v e o f t h e l a r g e , i n t e g r a t e d c o m p a n i e s o p e r a t i n g i n t h e p r o v i n c e . As t h e s e c o m p a n i e s p l a y s u c h an i m p o r t a n t r o l e i n t h e p r o v i n c i a l economy and c o n t r o l s u c h a s i z e a b l e p o r t i o n o f t h e p r o v i n c e ' s t i m b e r r e s o u r c e , t h e y want t o e n s u r e t h a t t h e t e r m s n e g o t i a t e d a r e ones w i t h w h i c h t h e y c a n l i v e . CONIFER, i n c o n t r a s t , i s made up o f m a i n l y s m a l l e r f i r m s who, a l o n e , w o u l d p r o b a b l y n o t be a b l e t o n e g o t i a t e as s t r o n g an a g r e e m e n t w i t h o u t t h e power o f t h e l a r g e i n t e g r a t e d c o m p a n i e s o f t h e C o a s t b e h i n d them. In t h e p a s t , CONIFER has been more t h a n w i l l i n g f o r t h e C o a s t t o s e t t h e s t a n d a r d and t o s i m p l y s i g n a "me t o o " a g r e e m e n t once t h e C o a s t m a s t e r a g r e e m e n t i s c o n c l u d e d . 92 The r e l a t i o n s h i p b e t ween t h e PPIRB and t h e s o l i d wood e m p l o y e r a s s o c i a t i o n s i s a l s o one t h a t has a l o n g h i s t o r y . F o r many y e a r s p u l p s e t t l e m e n t s have m i r r o r e d t h o s e won by t h e s o l i d wood e m p l o y e r s . In f a c t , up u n t i l v e r y r e c e n t l y t h e P u l p B u r e a u and FIR were o v e r s e e n by a common CEO. The two o r g a n i z a t i o n s a r e h o u s e d on t h e same f l o o r o f a downtown o f f i c e t o w e r w h i c h a l l o w s them t o c o m m u n i c a t e f r e q u e n t l y . T h e r e has been a l o n g u n d e r s t a n d i n g b e t w e e n t h e two a s s o c i a t i o n s who r e p r e s e n t many o f t h e same l a r g e i n t e g r a t e d f o r e s t p r o d u c t s c o m p a n i e s t h a t e m p l o y e e s o f t h e same company no m a t t e r w h i c h s i d e o f t h e i n d u s t r y t h e y work on s h o u l d have i d e n t i c a l p a y , b e n e f i t s , and c o n d i t i o n s o f work. T h i s has been a p o l i c y o f t h e a s s o c i a t i o n s f o r many y e a r s i n o r d e r t o r e d u c e t h e p o s s i b i l i t y o f u n i o n l e a p f r o g g i n g o f s e t t l e m e n t s i n one i n d u s t r y o v e r t h a t won i n t h e o t h e r . The p u l p e m p l o y e r s and t h e I n t e r i o r s o l i d wood e m p l o y e r s have had i n p u t i n t o t h e FIR-IWA C o a s t a l n e g o t i a t i o n s i n t h e p a s t and c o m m u n i c a t i o n among a l l p a r t i e s has been t h e norm d u r i n g i n d u s t r y n e g o t i a t i o n s . T h i s has been t o e n s u r e t h a t e m p l o y e r s t h r o u g h o u t t h e p r o v i n c e a r e a b l e t o a f f o r d t h e same s e t t l e m e n t on b o t h s i d e s o f t h e i r o p e r a t i o n s . T r a d i t i o n a l l y , t h e i n d u s t r y ' s f i n a l o f f e r i s made t o b o t h t h e IWA by FIR and t o t h e p u l p u n i o n s by t h e PPIRB a t t h e same t i m e . Once t h e C o a s t a l IWA c o n t r a c t i s c o m p l e t e d , t h e p u l p i n d u s t r y s e t t l e s s oon a f t e r . 93 I V . The T r a d i t i o n a l S t r u c t u r e o f B a r g a i n i n g i n B.C.'s F o r e s t P r o d u c t s I n d u s t r y and t h e A d v a n t a g e s t o t h e P a r t i e s B a r g a i n i n g i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y has t r a d i t i o n a l l y been h i g h l y c e n t r a l i z e d and marked by s t r o n g p a t t e r n b a r g a i n i n g b e t ween t h e p u l p and t h e s o l i d wood s i d e s o f t h e i n d u s t r y . The d e v e l o p m e n t o f t h i s s y s t e m and t h e a d v a n t a g e s t h i s s t r u c t u r e o f b a r g a i n i n g has g i v e n t o e a c h o f t h e p a r t i e s a r e d i s c u s s e d i n t u r n b e l o w . A. The Move f r o m A s s o c i a t i o n Wide t o I n d u s t r y Wide B a r g a i n i n g The c e n t r a l i z a t i o n o f b a r g a i n i n g f r o m e m p l o y e r a s s o c i a t i o n b a r g a i n i n g t o p r o v i n c e w i d e n e g o t i a t i o n s has been t h e l o n g t i m e g o a l o f t h e IWA and i t i s t h e u n i o n t h a t has p r e s s e d f o r i t s u c c e s s f u l l y s i n c e t h e mid 1 9 6 0 s . The IWA began i n t h e 1964 r o u n d o f n e g o t i a t i o n s t o move t h e p r o v i n c e ' s t h r e e a g r e e m e n t s t o w a r d s a common e x p i r y d a t e and t o n a r r o w and c l o s e t h e wage gap t h a t e x i s t e d b e t ween C o a s t a l and I n t e r i o r members. I n t e r i o r IWA members s t r u c k f o r 224 d a y s i n 1967 t o n a r r o w t h e d i f f e r e n t i a l f r o m f i f t y t o f o u r t e e n c e n t s an h o u r and t o move t h e e x p i r a t i o n d a t e f r o m A u g u s t 31 t o June 30 ( t h e C o a s t a g r e e m e n t e x p i r e s h i s t o r i c a l l y on J u n e 1 5 ) . In 1972 o n l y a f o u r day s t r i k e was needed t o remove t h e f i n a l f o u r t e e n c e n t d i f f e r e n t i a l i n wages. However, t h e u n i o n f a i l e d t o g e t a common p e n s i o n p l a n . The u n i o n a s k e d f o r p r o v i n c e w i d e n e g o t i a t i o n s r e s u l t i n g i n a m a s t e r a g r e e m e n t f o r t h e f i r s t t i m e i n 1977. 94 The IWA was n o t s u c c e s s f u l i n t h i s r e g a r d b u t i t d i d s u c c e s s f u l l y n e g o t i a t e a p r o v i n c e w i d e p e n s i o n p l a n . The i s s u e o f p r o v i n c e w i d e n e g o t i a t i o n s came t o a head i n 1981. The IWA f e l t t h e t h r e e s e p a r a t e r o u n d s o f n e g o t i a t i o n g o i n g on a t t h e same t i m e , a r g u i n g t h e same p o i n t s o f t e n w i t h t h e same p e o p l e b u t down t h e h a l l i n a d i f f e r e n t room was s i m p l y a w a s t e o f t i m e . F o r s i x weeks t a l k s were s t a l l e d as FIR and t h e u n i o n a r g u e d t h i s p o i n t . None o f t h e e m p l o y e r a s s o c i a t i o n s h o w e v e r , w i s h e d t o change t h e f o r m a t o f b a r g a i n i n g . FIR s t a t e d t h a t t h e t h r e e r e g i o n s were t o o d i v e r s e i n c o n d i t i o n s , p r o d u c t s , and m a r k e t s t o be d e a l t w i t h a t t h e same t i m e . E v e n t u a l l y t h e d e a d l o c k was b r o k e n by t h e e m p l o y e r s * a g r e e m e n t t o n e g o t i a t e t h r e e m a s t e r c o n t r a c t s t o be s i g n e d a t t h e same t i m e i n t h e same room and t o r e c o r d t h e i r commitment t o one s e t o f n e g o t i a t i o n s i n 1983. In 1983 t h e F o r e s t L a b o u r R e l a t i o n s C o u n c i l ( F L RC) was f o r m e d as t h e n e g o t i a t i n g c o m m i t t e e r e p r e s e n t i n g e m p l o y e r s f r o m a l l r e g i o n s o f t h e p r o v i n c e . F o r t h e f i r s t t i m e t h e IWA had a c h i e v e d i t s g o a l . However, t h e e x p e r i e n c e was n o t t o be r e p e a t e d . The e m p l o y e r s ' g r o u p was p l a g u e d by i n t e r n a l c o n f l i c t and had t o d e a l as a g r o u p w i t h s e v e r a l i s s u e s t h a t r e l a t e d o n l y t o one segment o f t h e p r o v i n c e . S u b s e q u e n t r o u n d s o f n e g o t i a t i o n have f o u n d t h e e m p l o y e r a s s o c i a t i o n s once a g a i n b a r g a i n i n g s e p a r a t e l y , w i t h FIR t a k i n g t h e l e a d and s e t t i n g t h e i n d u s t r y p a t t e r n . 95 D e s p i t e t h e f a c t t h a t t h e p r o v i n c e ' s e m p l o y e r a s s o c i a t i o n s do n o t n e g o t i a t e as a team a c r o s s t h e t a b l e f r o m t h e u n i o n , b a r g a i n i n g i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y i s e s s e n t i a l l y i n d u s t r y w i d e . The s t r e n g t h o f t h e p a t t e r n b e t ween p u l p and l u m b e r s e c t o r s and between t h e r e g i o n a l s o l i d wood e m p l o y e r a s s o c i a t i o n s has made t h i s s o . B. A d v a n t a g e s t o E m p l o y e r s A s s o c i a t i o n b a r g a i n i n g has w o r k e d t o t h e a d v a n t a g e o f e m p l o y e r s i n b o t h t h e p u l p and p a p e r and t h e l u m b e r i n d u s t r i e s . A number o f t h e l a r g e i n t e g r a t e d f i r m s a r e r e p r e s e n t e d i n t h e r a n k s o f b o t h t h e PPIRB and a t l e a s t one o f t h e f o r e s t i n d u s t r y e m p l o y e r a s s o c i a t i o n s . A s s o c i a t i o n b a r g a i n i n g has been t o t h e i r a d v a n t a g e i n t h a t i t has r e d u c e d t h e number o f p o t e n t i a l s t r i k e s t o w h i c h t h e i r f i r m s have been e x p o s e d . In any o f t h e l a r g e i n t e g r a t e d c o m p a n i e s , s u c h as M a c M i l l a n B l o e d e l , CANFOR, o r F l e t c h e r C h a l l e n g e , a s t r i k e i n any s e c t o r be i t l o g g i n g , s a w m i l l i n g , o r t h e p u l p i n d u s t r y , c a n have d a m a g i n g e f f e c t s on t h e r e s t o f t h e f i r m ' s b u s i n e s s . Not o n l y i s t h a t p a r t o f t h e f i r m ' s b u s i n e s s down, w h i c h i n i t s e l f i s f i n a n c i a l l y d a m a g i n g , b u t an i n d u s t r y as c l o s e l y i n t e g r a t e d as t h e f o r e s t p r o d u c t s i n d u s t r y r e l i e s upon t h e i n t e r a c t i o n o f a l l s e c t o r s : raw l o g s a r e u s e d i n b o t h s a w m i l l s and p u l p m i l l s , s a w m i l l s use l o g s and p r o d u c e c h i p s , and p u l p m i l l s use c h i p s and l o g s . 96 When one s e c t o r i s down f o r any l e n g t h o f t i m e i t means t h e o t h e r s e c t o r s e v e n t u a l l y g r i n d t o a h a l t . Not o n l y c a n a s t r i k e i n one s e c t o r be damaging b e c a u s e o f t h e i n t e r a c t i o n b e t ween t h e f i r m ' s b u s i n e s s e s , b u t a s t r i k e i n one s e c t o r c o u l d , p r i o r t o 1987, a l s o l e a d t o s e c o n d a r y p i c k e t i n g o f a l l t h e e m p l o y e r ' s o t h e r l o c a t i o n s . T h u s , a s t r i k e a t one s a w m i l l had t h e p o t e n t i a l o f b r i n g i n g a l a r g e i n t e g r a t e d f i r m i m m e d i a t e l y t o a c o m p l e t e s t a n d s t i l l t h e r e b y i m p o s i n g huge c o s t s on t h e e m p l o y e r . N e g o t i a t i n g c o n t r a c t s f o r a l l t h r e e s e c t o r s a t one t i m e c l e a r l y r e d u c e s t h e o p p o r t u n i t i e s a t w h i c h any o f t h e i n d i v i d u a l s e c t o r s c a n be s t r u c k . A n o t h e r a d v a n t a g e o f a s s o c i a t i o n b a r g a i n i n g f o r b o t h s o l i d wood and p u l p e m p l o y e r s has been t h e s t a n d a r d i z a t i o n o f i n d u s t r y l a b o u r c o s t s . No one f i r m , b e c a u s e o f i t s s u p e r i o r b a r g a i n i n g p o wer, o r f o r w h a t e v e r r e a s o n , has an a d v a n t a g e o v e r any o t h e r f i r m i n t h e i n d u s t r y . The f i n a l a d v a n t a g e a s s o c i a t i o n b a r g a i n i n g has g i v e n t o e m p l o y e r s i n b o t h s e c t o r s o f t h e f o r e s t p r o d u c t s i n d u s t r y , b u t most n o t a b l y t o s m a l l n o n - i n t e g r a t e d l u m b e r p r o d u c e r s , has been t o i n c r e a s e t h e i r b a r g a i n i n g power v i s a v i s t h e u n i o n s . When e m p l o y e r s b a r g a i n j o i n t l y t h e u n i o n s do n o t have t h e o p p o r t u n i t y t o s i n g l e o u t e c o n o m i c a l l y w e a k e r f i r m s f o r s t r i k e a c t i o n . In e i t h e r s e c t o r o f t h e i n d u s t r y t h i s c o u l d r e s u l t i n d i s a s t e r i f a f i r m were s t r u c k and i t s c o m p e t i t o r s were s u c c e s s f u l i n s u p p l y i n g i t s m a r k e t w h i l e i t s f i n a n c i a l o b l i g a t i o n s mounted. In s u c h a c a s e t h e f i r m 97 w o u l d f i n d i t s e l f a t t h e end o f t h e s t r i k e i n f i n a n c i a l r u i n . The o t h e r m a j o r a d v a n t a g e t o s m a l l , n o n - i n t e g r a t e d f o r e s t c o m p a n i e s i s t h e b e n e f i t t h e y r e c e i v e f r o m t h e a s s o c i a t i o n ' s i n d u s t r i a l r e l a t i o n s s e r v i c e s . These s m a l l f i r m s have a c c e s s t o p r o f e s s i o n a l n e g o t i a t o r s t o c o n c l u d e t h e i r a g r e e m e n t s , l e g a l c o u n s e l t o p r o c e s s g r i e v a n c e s f o r them, and t h e o n g o i n g a s s i s t a n c e o f t h e a s s o c i a t i o n i n c o n t r a c t and p e n s i o n a d m i n i s t r a t i o n . C. A d v a n t a g e s t o t h e U n i o n s The u n i o n s i n t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a have a l s o been s a t i s f i e d w i t h t h e f o r m a t o f i n d u s t r y b a r g a i n i n g . The n e g o t i a t i o n o f a m a s t e r a g r e e m e n t i n b o t h i n d u s t r i e s s a v e s t h e u n i o n s a g r e a t d e a l o f a d m i n i s t r a t i v e c o s t . H a v i n g t o n e g o t i a t e on a f i r m by f i r m o r a p l a n t by p l a n t b a s i s w o u l d be e x p e n s i v e and e x t r e m e l y t i m e c o n s u m i n g . I n d u s t r y w i d e n e g o t i a t i o n s a l l o w t h e u n i o n s t o a p p o i n t t r a i n e d and s k i l l e d n e g o t i a t o r s t o t h e t a s k . As w e l l , t h i s f o r m a t o f b a r g a i n i n g means t h a t t h e s e c o m m i t t e e s need t o c o n c e n t r a t e on n e g o t i a t i o n s o n l y once e v e r y two o r t h r e e y e a r s r a t h e r t h a n y e a r r o u n d . P r o v i n c e w i d e n e g o t i a t i o n s a l s o a l l o w f o r t h e s t a n d a r d i z a t i o n o f work r u l e s , wages, and b e n e f i t s a c r o s s t h e p r o v i n c e , a l l o f w h i c h have been l o n g t i m e u n i o n o b j e c t i v e s . P e r h a p s t h e most s i g n i f i c a n t o f t h e s e i s s u e s has been t h e d e v e l o p m e n t o f i n d u s t r y p e n s i o n p l a n s f o r u n i o n members i n t h e b o t h t h e p u l p and s o l i d wood s e c t o r s . These p l a n s a l l o w f o r t h e 98 c o m p l e t e p o r t a b i l i t y o f p e n s i o n s w i t h i n t h e i n d u s t r y w h i c h i s i m p o r t a n t i n an i n d u s t r y c h a r a c t e r i z e d by m o b i l e c r e w s and t h e d i s p l a c e m e n t and t r a n s f e r o f p e o p l e t h r o u g h t e c h n o l o g i c a l c h a n g e . The p u l p u n i o n s a l s o r e c o g n i z e t h e s t r e n g t h t h a t i n d u s t r y w i d e b a r g a i n i n g g i v e s them i n p a r t i c u l a r . The p u l p u n i o n s must f a c e l a r g e s o p h i s t i c a t e d c o m p a n i e s a l l o f w h i c h p o s s e s s t h e i r own i n d u s t r i a l r e l a t i o n s d e p a r t m e n t s . S h o u l d t h e i n d u s t r y i n s t e a d c h o o s e t o b a r g a i n on a f i r m by f i r m b a s i s t h e r e i s a s t r o n g p o s s i b i l i t y t h a t t h e p u l p u n i o n s c o u l d be w h i p s a w e d . In a c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e t h i s i s n o t p o s s i b l e . As i t i s t h e p u l p u n i o n s c a n i n f l i c t a g r e a t d e a l o f damage by t h r e a t e n i n g t o s h u t down t h e w h o l e i n d u s t r y . The e m p l o y e r s know t h a t a l t h o u g h i t w i l l n o t be o t h e r B.C. p r o d u c e r s s u p p l y i n g t h e i r m a r k e t s i t w i l l be A m e r i c a n , S w e d i s h , o r F i n n i s h p r o d u c e r s i n s t e a d . The i m p a c t on B.C.'s i n d u s t r y r e m a i n s t h e same i n e i t h e r c a s e . D. R e a s o n s f o r t h e S u c c e s s o f A s s o c i a t i o n B a r g a i n i n g A s s o c i a t i o n b a r g a i n i n g has been so s u c c e s s f u l i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y f o r a number o f r e a s o n s . On t h e p u l p s i d e , t h e r e i s o n l y a s m a l l g r o u p o f e m p l o y e r s - between t w e l v e and f o u r t e e n o v e r t h e p a s t d e c a d e . T h i s s m a l l g r o u p o f e m p l o y e r s a r e a l l i n t e g r a t e d f o r e s t c o m p a n i e s o f a p p r o x i m a t e l y t h e same s i z e . T h e i r m a r k e t s f o r p u l p and n e w s p r i n t have been b a s i c a l l y i d e n t i c a l as have been t h e i r p r o d u c t i o n p r o c e s s e s , and t h e u n i o n s w i t h w h i c h t h e y 99 n e g o t i a t e . I t has n o t been d i f f i c u l t f o r t h i s g r o u p o f e m p l o y e r s , who s h a r e t h e s e g r e a t s i m i l a r i t i e s , t o c o o r d i n a t e t h e i r b a r g a i n i n g demands and t o s u p p o r t t h e g r o u p ' s o b j e c t i v e s t h r o u g h o u t n e g o t i a t i o n s . The s o l i d wood s e c t o r has been somewhat d i f f e r e n t i n t h a t i t has n o t had one e m p l o y e r a s s o c i a t i o n t o r e p r e s e n t e m p l o y e r s a l l a c r o s s t h e p r o v i n c e , b u t r a t h e r has had t h r e e s e p a r a t e a s s o c i a t i o n s t h a t r e f l e c t t h e d i f f e r e n t e n v i r o n m e n t s t h a t e m p l o y e r s i n t h i s s e c t o r f a c e i n t h e v a r i o u s r e g i o n s o f t h e p r o v i n c e . However, w i t h i n e a c h o f t h e a s s o c i a t i o n s much o f what i s t r u e o f t h e p u l p e m p l o y e r a s s o c i a t i o n r e m a i n s t h e same. The e m p l o y e r s w i t h i n a r e g i o n have been s i m i l a r enough i n t e r m s o f m a r k e t s , p r o d u c t i o n p r o c e s s e s , and c o s t s t h a t t h e y have been a b l e t o s u c c e s s f u l l y c o o r d i n a t e t h e i r b a r g a i n i n g . V. Summary and C o n c l u s i o n s B a r g a i n i n g i n B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y has been g o v e r n e d by two s e t s o f s t r u c t u r e s : one d e t e r m i n e d by t h e e x i s t e n c e o f t h e e m p l o y e r a s s o c i a t i o n s and t h e o t h e r by t h e p a t t e r n s e t t i n g and f o l l o w i n g b e t ween s e t t l e m e n t s r e a c h e d by FIR and t h e o t h e r e m p l o y e r a s s o c i a t i o n s . In a t t e m p t i n g t o d i s c e r n s i g n i f i c a n t c h a n g e s i n t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y o v e r t h e p a s t d e c a d e i t i s n e c e s s a r y t o o b s e r v e b o t h s e t s o f b a r g a i n i n g s t r u c t u r e s : t h e f o r m a l , 100 b a s e d on who i s i n c l u d e d i n t h e e m p l o y e r a s s o c i a t i o n n e g o t i a t i o n s and w h e t h e r e m p l o y e r a s s o c i a t i o n s c o n t i n u e t o be t h e p r e f e r r e d method f o r n e g o t i a t i n g i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y ; and t h e i n f o r m a l , d e t e r m i n e d by w h i c h s e t o f n e g o t i a t i o n s s e t s t h e p a t t e r n f o r t h e o t h e r s t o f o l l o w a n d , w h e t h e r s t r o n g p a t t e r n b a r g a i n i n g among t h e p a r t i e s c o n t i n u e s . The n e x t c h a p t e r f i r s t a n a l y s e s t h e s i g n i f i c a n t e n v i r o n m e n t a l c h a n g e s t h a t have a f f e c t e d t h e i n d u s t r y and t h e n a n a l y s e s t h e c h a n g e s i n t h e p a r t i e s ' p r e f e r e n c e s f o r t h e e s t a b l i s h e d s t r u c t u r e o f b a r g a i n i n g i n t h e i n d u s t r y . 101 CHAPTER F I V E : ENVIRONMENTAL CHANGES AFFECTING BARGAINING STRUCTURE IN B.C.'S FOREST PRODUCTS INDUSTRY I . I n t r o d u c t i o n D u r i n g t h e p a s t d e c a d e t h e r e have been a number o f s i g n i f i c a n t c h a n g e s i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y b r o u g h t a b o u t by s h i f t s i n t h e e c o n o m i c , c o m p e t i t i v e , and t e c h n o l o g i c a l e n v i r o n m e n t s . These c h a n g e s have c r e a t e d p r e s s u r e s f o r t h e b r e a k up o f t r a d i t i o n a l b a r g a i n i n g p a t t e r n s and f o r t h e d e c e n t r a l i z a t i o n o f t h e e m p l o y e r a s s o c i a t i o n s f o u n d i n t h i s i n d u s t r y . The p u r p o s e o f t h i s c h a p t e r i s t o o u t l i n e what t h e s e e n v i r o n m e n t a l c h a n g e s have been and t o d e s c r i b e what p r e s s u r e s t h e y have c r e a t e d and how t h e y have i m p a c t e d t h e s t r u c t u r e o f c o l l e c t i v e b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y o f B.C.. The c h a p t e r b e g i n s by a d d r e s s i n g t h o s e f a c t o r s w h i c h have n o t a f f e c t e d t h e f o r e s t p r o d u c t s i n d u s t r y a l o n e , b u t r a t h e r , have been f o r c e s i m p a c t i n g i n d u s t r y w o r l d w i d e : t h e g l o b a l i z a t i o n o f m a r k e t s , i n c r e a s e d f l u c t u a t i o n i n c u r r e n c y e x c h a n g e r a t e s , c h a n g i n g t e c h n o l o g y , and t h e r e c e s s i o n o f t h e e a r l y 1 9 8 0 s . The s e c o n d s e c t i o n o f t h e c h a p t e r c o n c e n t r a t e s on t h o s e f o r c e s w h i c h have been u n i q u e t o t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a : t h e i n c r e a s e d d i f f e r e n t i a t i o n o f m a r k e t s b e t w e e n r e g i o n s and f i r m s , and t h e e f f e c t s o f t h e d e c a d e ' s m a j o r l a b o u r d i s p u t e s , t h e 1984 102 p u l p i n d u s t r y l o c k o u t and t h e 1986 f o r e s t i n d u s t r y s t r i k e . The c h a p t e r c o n c l u d e s w i t h a d i s c u s s i o n o f t h e d i f f e r e n t e f f e c t s t h e s e c h a n g e s have had upon t h e s t r u c t u r e o f b a r g a i n i n g p r e f e r r e d by b o t h t h e u n i o n s and t h e e m p l o y e r s i n t h e i n d u s t r y . I I . W o r l d Wide E n v i r o n m e n t a l Change A. The G l o b a l i z a t i o n o f M a r k e t s and I n c r e a s i n g I n t e r n a t i o n a l C o m p e t i t i o n P e r h a p s t h e most s i g n i f i c a n t s i n g l e f o r c e i m p a c t i n g N o r t h A m e r i c a n t r a d e and i n d u s t r y d u r i n g t h e 1980s has been t h e i n c r e a s e d p r e s s u r e o f f o r e i g n c o m p e t i t i o n due t o t h e g l o b a l i z a t i o n o f m a r k e t s . No l o n g e r do N o r t h A m e r i c a n m a n u f a c t u r e r s have a s s u r e d m a r k e t s anywhere i n t h e w o r l d , n o t even a t home. The r a p i d d e v e l o p m e n t o f i n f o r m a t i o n t e c h n o l o g y t o h a n d l e c u r r e n c y e x c h a n g e s and t o t r a n s a c t b u s i n e s s a c r o s s i n t e r n a t i o n a l b o u n d a r i e s has been a t t h e h e a r t o f t h i s c hange p r o c e s s . As m a r k e t s have become i n c r e a s i n g l y g l o b a l , p r e s s u r e has been a p p l i e d t o remove t a r i f f and n o n - t a r i f f b a r r i e r s t h a t have p r e v i o u s l y r e s t r i c t e d t r a d e t o p r o t e c t d o m e s t i c m a r k e t s . S u d d e n l y N o r t h A m e r i c a n m a n u f a c t u r e r s have been f o r c e d t o compete i n t h e w o r l d m a r k e t p l a c e . B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y has n o t been immune t o t h e s e c h a n g e s . B o t h p u l p and p a p e r and l u m b e r p r o d u c e r s have been a d v e r s e l y a f f e c t e d by them. The p r o v i n c e ' s p r i m a r y p u l p p r o d u c e r s have a l w a y s had t o compete 103 i n w o r l d m a r k e t s b e c a u s e o f t h e c o m m o d i t y n a t u r e o f t h e i r p r o d u c t . However, new e n t r a n t s have made t h e m a r k e t p l a c e e v e n more c o m p e t i t i v e . One s i g n i f i c a n t c hange has been t h e i n f l u x o f S o u t h A m e r i c a n p u l p o n t o w o r l d m a r k e t s . Of a l o w e r g r a d e t h a n B.C.'s s o f t w o o d p u l p ( g e n e r a l l y r e g a r d e d as t h e w o r l d ' s f i n e s t g r o u n d wood p u l p ) and p r i c e d a c c o r d i n g l y , S o u t h A m e r i c a n p r o d u c e d p u l p has become a r e c e n t t h r e a t t o B.C. p r o d u c e r s . T h i s p u l p u s e s e u c a l y p t u s f i b r e w h i c h c a n be grown i n j u s t s e v e n y e a r s and n eeds o n l y 35,000 h e c t a r e s o f p l a n t a t i o n l a n d t o s u p p l y a 1000 t o n / d a y p u l p m i l l . In c o n t r a s t , f i b r e t o be u s e d i n B.C. p u l p n eeds s e v e n t y y e a r s t o m a t u r e and t h e same 1000 t o n / d a y p u l p m i l l r e q u i r e s 1,000,000 h e c t a r e s o f t i m b e r t o s u p p l y i t . T h i s c o s t a l o n e , w i t h o u t c o n s i d e r i n g t h e wage d i f f e r e n t i a l b e i n g p a i d t o B.C. p u l p w o r k e r s , i s s u b s t a n t i a l . B.C.'s l u m b e r p r o d u c e r s have been a d v e r s e l y a f f e c t e d by i n c r e a s e d stumpage f e e s now c h a r g e d by t h e p r o v i n c i a l g o v e r n m e n t . S m a l l , n o n - i n t e g r a t e d s a w m i l l s i n p a r t i c u l a r have been b a d l y h u r t . L a t e i n 1986, A m e r i c a n l u m b e r p r o d u c e r s c l a i m e d t h a t C a n a d i a n stumpage r a t e s were t o o l o w and t h a t , i n e f f e c t , C a n a d i a n l u m b e r had an u n f a i r a d v a n t a g e i n w o r l d m a r k e t s b e c a u s e i t was s u b s i d i z e d t h r o u g h a r t i f i c i a l l y l o w stumpage r a t e s . To remove t h i s u n f a i r a d v a n t a g e , t h e U.S. a p p l i e d a c o u n t e r v a i l i n g d u t y t o C a n a d i a n s o f t w o o d l u m b e r e n t e r i n g t h e c o u n t r y . R a t h e r t h a n have t h e d u t y f l o w i n t o A m e r i c a n c o f f e r s , t h e B.C. g o v e r n m e n t r a i s e d p r o v i n c i a l stumpage r a t e s , a l l o w i n g t h e 104 t a x t o s t a y i n t h e p r o v i n c e . The U.S. d u t y was s u b s e q u e n t l y r e m o v e d , b u t B.C. l u m b e r p r o d u c e r s now have h i g h e r c o s t s , n o t o n l y on t h e l u m b e r t h a t t h e y s h i p t o t h e U.S. m a r k e t , b u t on a l l l u m b e r p r o d u c e d r e g a r d l e s s o f i t s e x p o r t d e s t i n a t i o n . B. F l u c t u a t i o n i n E x c h a n g e R a t e s F u r t h e r i n c r e a s i n g t h e e x p o s u r e o f B.C. f o r e s t p r o d u c t s p r o d u c e r s i n c o m p e t i t i v e w o r l d m a r k e t s has been t h e v o l a t i l i t y o f f o r e i g n e x c h a n g e r a t e s d u r i n g t h e p a s t d e c a d e . P u l p and l u m b e r p r o d u c t s a r e s o l d i n t e r n a t i o n a l l y i n U.S. d o l l a r s . The A m e r i c a n d o l l a r i s t h e c u r r e n c y o f e x c h a n g e i n n e a r l y a l l f o r e i g n m a r k e t s . T h u s , even i f p r i c e s i n U.S. d o l l a r s r e m a i n c o n s t a n t o v e r t i m e , w h i c h i s u n l i k e l y , c h a n g e s i n t h e v a l u e o f t h e C a n a d i a n d o l l a r v i s a v i s t h e U.S. d o l l a r c a n make t h e d i f f e r e n c e b e t ween p r o f i t and l o s s . U n t i l t h e mid 1 9 7 0 s , t h e c u r r e n c y v a l u e s o f t h e m a j o r w e s t e r n d e m o c r a c i e s were r e l a t i v e l y s t a b l e . P r o d u c e r s c o u l d be f a i r l y c o n f i d e n t o f t h e e x c h a n g e r a t e a t w h i c h t h e i r p r o d u c t w o u l d be s o l d . T h u s , e x c h a n g e r a t e s c o u l d be f a c t o r e d i n t o t h e c a l c u l a t i o n o f t h e p r o d u c e r s ' t o t a l c o s t s . Over t h e p a s t f i f t e e n y e a r s c u r r e n c y s w i n g s have become much l a r g e r . P r o d u c t s t h a t were p r o f i t a b l e b e f o r e , a t more f a v o u r a b l e e x c h a n g e r a t e s , may n o t n e c e s s a r i l y be so now. In a d d i t i o n , t h e r e i s more v a r i a t i o n n o t j u s t b e t ween t h e C a n a d i a n and t h e U.S. d o l l a r , b u t a l s o b e t w e e n t h e U.S. d o l l a r and o t h e r w o r l d c u r r e n c i e s , most n o t a b l y t h e J a p a n e s e 105 yen and t h e German mark. F i r m s i n t h e f o r e s t p r o d u c t s i n d u s t r y have r e s p o n d e d by t r y i n g t o m i n i m i z e a l l o t h e r c o s t s i n o r d e r t h a t t h e p r o d u c t s can c o n t i n u e t o be p r o f i t a b l e o v e r l a r g e r r a n g e s of c u r r e n c y v a l u e s . C. Changes i n T e c h n o l o g y A n o t h e r c h a r a c t e r i s t i c o f t h e 1980s has been t h e e v e r i n c r e a s i n g r a t e o f d e v e l o p m e n t and i m p l e m e n t a t i o n o f new t e c h n o l o g y i n a l l a s p e c t s o f b u s i n e s s . T h i s has come about b e c a u s e o f t h e need f o r i n c r e a s e d e f f i c i e n c y and c o m p e t i t i v e n e s s . The f u l l a d o p t i o n and i m p l e m e n t a t i o n of new t e c h n o l o g y i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y has been p e r h a p s t h e s i n g l e b i g g e s t r e a s o n f o r i t s s u s t a i n e d c o m p e t i t i v e n e s s i n an i n c r e a s i n g l y dynamic m a r k e t p l a c e . The two main a r e a s o f t e c h n o l o g i c a l d e v e l o p m e n t i n t h e lumber i n d u s t r y have been i n t h e a u t o m a t i o n of many p r e v i o u s l y l a b o u r i n t e n s i v e t a s k s i n t h e p r o v i n c e ' s s a w m i l l s and i n t h e use o f computer t e c h n o l o g y t o maximize th e r e t u r n from a g i v e n raw l o g . These changes were b r o u g h t about f i r s t by t h e g o v e r nment's c l o s e u t i l i z a t i o n p o l i c y g o v e r n i n g t i m b e r l i c e n s e s i n which l i c e n s e h o l d e r s were r e q u i r e d t o use i n c r e a s i n g l y s m a l l e r d i a m e t e r e d t r e e s . In o r d e r t o e n s u r e t h a t t h e y e a r n e d an a d e q u a t e r a t e o f r e t u r n i n p r o c e s s i n g t h e s e s m a l l l o g s , B.C.'s s a w m i l l o p e r a t o r s had t o be a b l e t o p r o c e s s them q u i c k l y and w i t h l i t t l e waste p r o d u c t . The s e c o n d r e a s o n f o r t h e a d o p t i o n o f t h e t e c h n o l o g y was t o i n c r e a s e p r o d u c t i v i t y i n o r d e r t o j u s t i f y 106 t h e i n c r e a s i n g c o s t o f wages p a i d t o l o g g i n g and s a w m i l l e m p l o y e e s . The r e s u l t o f t h e a d o p t i o n o f t h i s t e c h n o l o g y has been t h e l o s s o f t h o u s a n d s o f IWA j o b s . At t h e same t i m e h o w e v e r , a d r a m a t i c g r o w t h i n o u t p u t has o c c u r r e d so t h a t t o d a y s a w m i l l s t h a t have e i g h t hour s h i f t c a p a c i t i e s o f 500,000 b o a r d f e e t o f l u m b e r a r e n o t u n u s u a l . T h i s i s i n marked c o n t r a s t t o c o n d i t i o n s t w e n t y y e a r s a g o , a t t h e t i m e c l o s e u t i l i z a t i o n s t a n d a r d s were s e t , when s a w m i l l s t h a t c o u l d p r o d u c e 25,000 f o o t b o a r d measure o f l u m b e r i n an e i g h t h o u r s h i f t were c o n s i d e r e d a d e q u a t e l y e f f i c i e n t . D e s p i t e t h e l o s s o f IWA j o b s , t h e u n i o n has welcomed t e c h n o l o g i c a l c h a n g e , r e a s o n i n g t h a t t h o s e j o b s t h a t do r e m a i n w i l l be w e l l p a i d . The u n i o n has a l s o n e g o t i a t e d c o l l e c t i v e a g r e e m e n t c l a u s e s t h a t e a s e t h e t r a n s i t i o n o f t h o s e who a r e d i s p l a c e d by c h a n g i n g t e c h n o l o g y , t h r o u g h a t t r i t i o n , e a r l y r e t i r e m e n t , and r e t r a i n i n g and t r a n s f e r t o o t h e r p o s i t i o n s . T o d a y , b e c a u s e o f t h e c a p i t a l i n v e s t m e n t t h a t has o c c u r r e d i n B.C. s a w m i l l s , t h e y a r e t h e most p r o d u c t i v e i n N o r t h A m e r i c a . The l a t e s t t e c h n o l o g y t o be i m p l e m e n t e d i n two N o r t h e r n I n t e r i o r m i l l s , m a c h i n e r y known as t h e L i n c k m i l l , t a k e s raw l o g s and c o n v e r t s them t o c h i p s and l u m b e r so smooth p l a n i n g i s n o t n e eded i n one l i n e p r o c e s s . The w h o l e p r o c e s s i s c o n t r o l l e d by one o p e r a t o r and s p o t t e d by a s i n g l e t r o u b l e s h o o t e r a l o n g t h e l i n e . T h i s t e c h n o l o g y i s l i k e l y t o become t h e norm i n t h e s m a l l l o g N o r t h e r n m i l l s 107 o v e r t h e n e x t decade ( M a c k e n z i e 1988). Not o n l y a r e t h e g r e e n c h a i n p o s i t i o n s t h a t p r e v i o u s l y s o r t e d f i n i s h e d lumber gone, but t h e need f o r a p l a n i n g m i l l i s a l s o e l i m i n a t e d . I t i s i n t h i s way t h a t B.C., w i t h l a b o u r c o s t s a p p r o a c h i n g $23 p e r h o u r , can m a n u f a c t u r e a t h o u s a n d b o a r d f e e t of lumber a t t h e same c o s t as S o u t h e r n U.S. p r o d u c e r s who have l a b o u r c o s t s o f $7.50 per hour ( V a n c o u v e r Sun, A p r i l 7, 1988). The p u l p and p a p e r s i d e of t h e i n d u s t r y has a l s o u ndergone a p e r i o d o f heavy i n v e s t m e n t o v e r t h e p a s t t w e n t y y e a r s . The 1960s w i t n e s s e d t h e b u i l d i n g o f a number o f l a r g e modern p u l p and p a p e r m i l l s i n t h e I n t e r i o r o f t h e p r o v i n c e . In t h e 1980s heavy i n v e s t m e n t was made i n some of t h e o l d e r C o a s t a l p u l p and p a p e r m i l l s which were t e c h n o l o g i c a l l y outmoded. T h e r e has a l s o been a t r e n d i n t h e 1980s t o f o r w a r d i n t e g r a t i o n i n B.C.'s p u l p and p a p e r i n d u s t r y . N e w s p r i n t m i l l s a r e now b e i n g b u i l t on t h e s i t e s of o l d e r p u l p m i l l s as p r o d u c e r s a t t e m p t t o remove t h e m s e l v e s from t h e s t a n d a r d k r a f t p u l p m a r k e t , a h i g h l y v a r i a b l e commodity m a r k e t . C r o f t o n , P o r t A l b e r n i , and MacKenzie a l l have n e w s p r i n t m i l l s on s i t e . A n o t h e r n e w s p r i n t m i l l i s c u r r e n t l y under c o n s t r u c t i o n a t G o l d R i v e r ( M i t t e r n d o r f e r 1989). These new n e w s p r i n t m i l l s use s t a t e o f t h e a r t t e c h n o l o g y . With f a s t e r and w i d e r n e w s p r i n t m a c h i n e s , t h e y have huge d a i l y c a p a c i t i e s . With t h e a c q u i s i t i o n o f t h i s new c a p i t a l , p r o d u c t i v i t y i n t h e i n d u s t r y has improved 108 d r a m a t i c a l l y o v e r t h e p a s t two d e c a d e s . Twenty y e a r s ago bet w e e n f o u r and f i v e h o u r s o f l a b o u r were r e q u i r e d i n t h e m a n u f a c t u r e o f a t o n o f n e w s p r i n t . Today o n l y two h o u r s o f l a b o u r a r e r e q u i r e d i n t h e p r o d u c t i o n o f t h a t same t o n ( M i t t e r n d o r f e r 1 9 8 9 ) . D. R e c e s s i o n i n t h e E a r l y 1980s The e c o n o m i c d o w n t u r n o f t h e e a r l y 1980s was t h e w o r s t r e c e s s i o n s i n c e t h e G r e a t D e p r e s s i o n o f t h e 1 9 3 0 s . I t s e f f e c t s were f e l t w o r l d w i d e i n h u n d r e d s o f i n d u s t r i e s and t h e B.C. f o r e s t p r o d u c t s i n d u s t r y was no e x c e p t i o n . The e f f e c t s o f t h i s r e c e s s i o n c o n t i n u e d t o be f e l t l a t e i n t o t h e de c a d e . By e a r l y 1980 l u m b e r m a r k e t s had gone s o f t i n wake o f i n c r e a s i n g i n t e r e s t r a t e s and a c o r r e s p o n d i n g d e c r e a s e i n t h e number o f h o u s i n g s t a r t s . H i g h i n t e r e s t r a t e s were a l s o d a m a g i n g t o t h e f o r e s t p r o d u c t s i n d u s t r y c o m p a n i e s t h e m s e l v e s as many f i r m s c a r r i e d l a r g e d e b t b u r d e n s due t o t h e h e a v y i n v e s t m e n t i n new c a p i t a l and m a c h i n e r y i n t h e l a t e 1 9 7 0 s . D e s p i t e t h e s e c o n d i t i o n s , t h e i n d u s t r y ' s u n i o n s won s i z e a b l e wage i n c r e a s e s o f 15% and 1 3 % i n e a c h o f t h e two y e a r s o f t h e 1981 c o n t r a c t . I n 1982, w i t h l u m b e r m a r k e t s s t i l l f l a t , and more t h a n a t h i r d o f t h e s a w m i l l w o r k f o r c e on l a y o f f , s o l i d wood e m p l o y e r s a s k e d t o p o s t p o n e t h e 1 3 % wage i n c r e a s e o f t h e s e c o n d y e a r o r t o i n c r e a s e wages by o n l y 6%. The IWA f l a t l y r e f u s e d e a c h r e q u e s t ( V a n c o u v e r Sun March 14, 1 9 8 8 ) . 109 In 1983, p u l p m a r k e t s d e c l i n e d but t h e A m e r i c a n market f o r lumber had begun t o r e c o v e r somewhat, b e n e f i t t i n g m a i n l y t h e I n t e r i o r lumber p r o d u c e r s . D e s p i t e t h i s s m a l l improvement i n lumber m a r k e t s , t w e n t y - f o u r per c e n t of IWA members r e m a i n e d on l a y o f f ( V a n c o u v e r Sun May 17, 1983). As t h e r e c e s s i o n c o n t i n u e d and deepened, s m a l l f i r m s became t h e f i r s t v i c t i m s . T h i s p e r i o d saw a s i g n i f i c a n t i n c r e a s e i n t h e number of c o n s o l i d a t i o n s i n t h e i n d u s t r y as s e v e r a l s i n g l e p l a n t f i r m s were a c q u i r e d by l o c a l m u l t i - p l a n t companies or by one o f t h e l a r g e i n t e g r a t e d f i r m s . Even t h e l a r g e i n t e g r a t e d companies were e v e n t u a l l y h u r t by t h e r e c e s s i o n . The l a r g e s t l o s s e s i n t h e i n d u s t r y ' s h i s t o r y o c c u r r e d d u r i n g t h e e a r l y 1980s. The 1983 round of n e g o t i a t i o n s was p r e c e d e d by a p r o v i n c e wide campaign by f o r e s t p r o d u c t s i n d u s t r y e m p l o y e r s t o p o i n t out t h e economic s t r a i t s t h e i n d u s t r y was i n and t o g a i n p u b l i c s u p p o r t f o r t h e t o u g h b a r g a i n i n g p o s i t i o n t h e y were about t o t a k e . F o r i n d u s t r y e m p l o y e r s , t h e r e c e s s i o n h i g h l i g h t e d t h e need f o r u n i o n c o n c e s s i o n s i n wages and work r u l e s i f t h e y were t o s u r v i v e . E m p l o y e r s made t h i s need c l e a r and p r o m i s e d the f o r e s t i n d u s t r y u n i o n s l o n g term j o b s e c u r i t y f o r an immediate c u t i n wage demands and a r e l a x a t i o n o f work r u l e s t h a t e m p l o y e r s f e l t n e c e s s a r y t o m a i n t a i n a c o s t c o m p e t i t i v e i n d u s t r y ( V a n c o u v e r Sun March 29, 1983). E m p l o y e r s a l s o e x p r e s s e d t h e i r need t o c o n c l u d e n e g o t i a t i o n s w i t h o u t a work s t o p p a g e i n o r d e r t o r e - 110 e s t a b l i s h t h e i r r e p u t a t i o n as r e l i a b l e s u p p l i e r s i n w o r l d m a r k e t s . I I I . I n d u s t r y S p e c i f i c Changes In a d d i t i o n t o t h e f o r c e s t h a t have i m p a c t e d i n d u s t r y w o r l d w i d e , e n v i r o n m e n t a l f o r c e s u n i q u e t o t h e B.C. f o r e s t p r o d u c t s i n d u s t r y have p u t i n c r e a s e d p r e s s u r e on i n d u s t r y p a r t i c i p a n t s . A. Changes i n P r o d u c t M a r k e t s 1. F o r e s t I n d u s t r y As s t a t e d i n C h a p t e r T h r e e , t h e v a r i o u s r e g i o n s o f t h e p r o v i n c e have a l w a y s had d i f f e r e n t p r o d u c t s , t e c h n o l o g i e s , c l i m a t i c c o n d i t i o n s , s p e c i e s o f t r e e s , and m a r k e t s . R e c e n t l y t h e s e d i f f e r e n c e s have become a c c e n t u a t e d . N o r t h e r n I n t e r i o r p r o d u c e r s r e m a i n p r e d o m i n a n t l y i n t h e c o m m o d i t y m a r k e t o f d i m e n s i o n l u m b e r , m a i n l y 2 x 4 ' s and 2 x 6 ' s . They compete s u c c e s s f u l l y i n t h i s m a r k e t by b e i n g h i g h l y e f f i c i e n t , l o w c o s t p r o d u c e r s . Most o f t h e s e m i l l s a l s o s u p p l e m e n t t h e i r d i m e n s i o n l u m b e r b u s i n e s s w i t h t h e s a l e o f wood c h i p s t o t h e p u l p and p a p e r i n d u s t r y . I n p e r i o d s o f s o f t l u m b e r m a r k e t s , t h e s a l e o f c h i p s c a n mean t h e d i f f e r e n c e b e t w e e n p r o f i t and l o s s . I n c o n t r a s t , t h e C o a s t a l p r o d u c e r s have t r i e d t o remove t h e m s e l v e s f r o m t h e d i m e n s i o n l u m b e r m a r k e t w h i c h t h e I n t e r i o r p r o d u c e r s have come t o d o m i n a t e . C o a s t a l f o r e s t s , u n l i k e t h o s e i n t h e I n t e r i o r , do n o t p r o d u c e u n i f o r m l y s i z e d I l l t r e e s t h a t a l l o w f o r h i g h l y e f f i c i e n t l u m b e r p r o d u c t i o n . H a r v e s t i n g on t h e C o a s t i s a l s o more d i f f i c u l t b e c a u s e o f t h e t e r r a i n - s t e e p l y s l o p e d v a l l e y s i d e s and n a r r o w v a l l e y f l o o r s . Thus t h e c o s t o f l o g s a l o n e makes t h e p r o d u c t i o n o f c o m m o d i t y p r o d u c t s l i k e 2 x 4 ' s even l e s s c o s t e f f e c t i v e . I n s t e a d , C o a s t a l p r o d u c e r s have s o u g h t o u t new m a r k e t s f o r more v a l u e added p r o d u c t s . C o a s t a l p r o d u c e r s have m a r k e t e d t h e i r p r o d u c t t o o f f s h o r e b u y e r s on t h e b a s i s o f i t s q u a l i t y and on c u s t o m c u t t i n g t o meet s p e c i a l i z e d n e e d s . F o r e x a m p l e , C o a s t a l p r o d u c e r s s e l l l a r g e q u a n t i t i e s o f y e l l o w c e d a r i n t h e J a p a n e s e m a r k e t a t t e n t i m e s t h e p r i c e p e r t h o u s a n d b o a r d f e e t t h a n t h e y w o u l d g e t anywhere e l s e ( B e n n e t t 1 9 8 9 ) . The J a p a n e s e f i n d t h e c o l o u r o f t h i s wood a t t r a c t i v e f o r i n t e r i o r p a n e l l i n g and w i l l pay a premium p r i c e f o r i t . O t h e r k i n d s o f l u m b e r a r e s o l d a t premium p r i c e s b e c a u s e t h e y a r e k n o t f r e e and c l e a r o f any o t h e r d e f e c t s . C o a s t a l p r o d u c e r s a r e a l s o i n t h e p r o c e s s o f s e t t i n g s t r e n g t h s t a n d a r d s f o r t h e i r l u m b e r , a n o t h e r way i n w h i c h t h e y hope t o be a b l e t o c h a r g e a premium p r i c e f o r t h e i r p r o d u c t ( B e n n e t t 1 9 8 9 ) . 2. P u l p and P a p e r I n d u s t r y The c h a n g e i n p r o d u c t m a r k e t s i n t h e B r i t i s h C o l u m b i a p u l p and p a p e r i n d u s t r y has n o t been as marked as i n t h e s o l i d wood s e c t o r o f t h e i n d u s t r y b u t r a t h e r , i t has been an o n g o i n g , e v o l u t i o n a r y one. A l t h o u g h a l a r g e p r o p o r t i o n o f B.C.'s p u l p and p a p e r p r o d u c t s i s s t i l l s o l d on w o r l d 112 c o m m o d i t y m a r k e t s t h e i n d u s t r y i s m o v i n g away f r o m t h e c o m m o d i t y m a r k e t s o f s t a n d a r d k r a f t p u l p and s t a n d a r d n e w s p r i n t t o w a r d more s p e c i a l i z e d , n i c h e m a r k e t s . In an e f f o r t t o r e d u c e t h e v a r i a b i l i t y o f t h e i r p r o d u c t m a r k e t s , p r o d u c e r s a r e i n t e g r a t i n g t h e i r p r o d u c t i o n and c u s t o m i z i n g t h e i r p r o d u c t s , o f t e n t a i l o r i n g them t o t h e s t a n d a r d s o f a p a r t i c u l a r c u s t o m e r . As a r e s u l t , t h e p r o d u c t s o f B.C.'s p r o d u c e r s a r e b e c o m i n g more s p e c i a l i z e d and d i v e r s e . F o r e x a m p l e , some m i l l s p r o d u c e l i g h t w e i g h t c o a t e d p a p e r s , o t h e r s , n o t a b l y M a c M i l l a n - B l o e d e l , s p e c i a l i z e i n p a p e r f o r t e l e p h o n e d i r e c t o r i e s , s t i l l o t h e r s , who have p u b l i s h e r p a r t i c i p a t i o n i n t h e i r o w n e r s h i p , p r o d u c e n e w s p r i n t f o r s p e c i f i c end u s e r s . B. D i v e r g e n c e o f Lumber and P u l p M a r k e t s U n t i l r e c e n t l y , m a r k e t s f o r p u l p and l u m b e r were b o t h c o m m o d i t y m a r k e t s i n w h i c h p r i c e s f l u c t u a t e d w i t h w o r l d demand. The m a r k e t s were c y c l i c a l and n o t n e c e s s a r i l y r e l a t e d , h o w e v e r , o v e r t i m e t h e r e was o f t e n n o t a l a r g e d i f f e r e n c e b e t ween t h e q u a l i t y o f t h e m a r k e t f o r t h e s e two p r o d u c t s . More r e c e n t l y , h o w e v e r , t h i s has c h a n g e d . P u l p m a r k e t s have been b o o m i n g , r i d i n g an u n u s u a l l y h i g h c r e s t o f demand f o r s e v e r a l y e a r s . Lumber, i n c o n t r a s t , i s s t i l l e x p e r i e n c i n g o r d i n a r y c y c l e s i n t h e l e v e l s o f demand and p r i c e s . W h i l e p u l p and l u m b e r m a r k e t s were r e l a t i v e l y e v e n l y m a t c h e d i n t e r m s o f up and down c y c l e s i t was f i n a n c i a l l y 113 f e a s i b l e t o pay t h e u n i o n i z e d w o r k f o r c e i n t h e s e i n d u s t r i e s t h e same wages and b e n e f i t s . In f a c t i t worked t o t h e i n d u s t r y ' s a d v a n t a g e t o do s o . By k e e p i n g wages and b e n e f i t s p a r a l l e l , t h e d e s i r e of t h e u n i o n s t o l e a p f r o g t h e s e t t l e m e n t i n one i n d u s t r y o v e r t h a t won i n t h e o t h e r was r e d u c e d . Removing t h e i n c e n t i v e t o l e a p f r o g n o t o n l y k e p t wage and b e n e f i t c o s t s l o w e r t h a n t h e y might have been, but i t a l s o r e d u c e d t h e t i m e t h a t might have been l o s t t o s t r i k e s i n t h e p r o c e s s . However, now t h a t p u l p m a r k e t s a r e booming w h i l e lumber m a r k e t s r e m a i n u n e x c e p t i o n a l , i t i s h a r d f o r t h e i n d u s t r y t o j u s t i f y t h e payment o f i d e n t i c a l wages and b e n e f i t s . C l e a r l y , i t i s u n r e a s o n a b l e (and p r o b a b l y i m p o s s i b l e ) t o ask s o l i d wood e m p l o y e r s t o pay t h e wages and b e n e f i t s t h a t t h e i r p u l p and paper c o u n t e r p a r t s can now a f f o r d , e s p e c i a l l y i n l i g h t o f t h e f a c t t h a t l a b o u r c o s t s r e p r e s e n t o n l y about t e n p e r c e n t of o p e r a t i n g c o s t s i n a p u l p m i l l w h i l e t h e y a r e a bout t w e n t y - f i v e t o t h i r t y p e r c e n t o f o p e r a t i n g c o s t s i n a s a w m i l l ( G u n d e r s o n 1989). However, the p u l p u n i o n s b e l i e v e i t i s u n r e a s o n a b l e t o r e f u s e t o i n c r e a s e t h e wages and b e n e f i t s of t h e i r members s i m p l y b e c a u s e th e s o l i d wood s e c t o r c a n n o t a f f o r d t o pay i t s u n i o n i z e d w o r k f o r c e s i m i l a r l y (Snow 1989). 114 C. L a b o u r D i s p u t e s 1. P u l p and P a p e r I n d u s t r y 1984 The 1984 p u l p and p a p e r d i s p u t e , w h i c h r e s u l t e d i n a t e n week l o n g i n d u s t r y w i d e l o c k o u t f o l l o w e d by a two week s t r i k e , was t h e c a t a l y s t t h a t l e d t o t h e d e a c c r e d i t a t i o n o f t h e P u l p and P a p e r I n d u s t r i a l R e l a t i o n s B u r e a u . B r i t i s h C o l u m b i a ' s p u l p and p a p e r i n d u s t r y d e v e l o p e d a p o o r r e p u t a t i o n as a r e l i a b l e s u p p l i e r d u r i n g t h e e a r l y 1 9 7 0 s . Not o n l y was t h e i n d u s t r y s h u t down a t e a c h r o u n d o f n e g o t i a t i o n s i n t h e 1970s ( 1 9 7 0 , 1973, 1975, 1977, and 1 9 7 9 ) , b u t t h e i n d u s t r y a l s o l o s t a b o u t one and a h a l f m i l l i o n h o u r s o v e r t h e same p e r i o d i n i l l e g a l s t r i k e s . As a r e s u l t , c u s t o m e r s l o o k e d e l s e w h e r e f o r t h e i r p u l p and p a p e r whenever B.C. p r o d u c e r s headed t o t h e b a r g a i n i n g t a b l e and t h e B.C. p u l p and p a p e r i n d u s t r y s u f f e r e d ( M i t t e r n d o r f e r 1989) . E m p l o y e r d i s s a t i s f a c t i o n w i t h t h e i n d u s t r y ' s p o o r s t r i k e r e c o r d l e d t o t h e 1984 t e n week i n d u s t r y l o c k o u t o f t h e CPU and t h e PPWC. The e m p l o y e r s i n B.C. l o c k e d o u t t h e i r u n i o n i z e d w o r k f o r c e i n r e t a l i a t i o n f o r what t h e y r e g a r d e d as t h e i n t e n t i o n a l d r a g g i n g o u t o f c o n t r a c t t a l k s by t h e u n i o n s . The r e s u l t o f t h e l o c k o u t h o w e v e r , was as d e v a s t a t i n g t o t h e e m p l o y e r s as a s t r i k e w o u l d have b e e n . B.C. p u l p m i l l s were down and t h e c o m p a n i e s ' m a r k e t s were b e i n g s e r v e d by t h e c o m p e t i t i o n . P r e s s u r e f o r a b e t t e r way o f d o i n g t h i n g s became u n b e a r a b l e . 115 A f t e r t h e l o c k o u t and t h e s u b s e q u e n t two week s t r i k e by t h e p u l p u n i o n s , t h e d e c i s i o n was made by t h e i n d u s t r y t o d e a c c r e d i t . T h i s a c t i o n was t a k e n i n o r d e r t o i n c r e a s e e m p l o y e r b a r g a i n i n g power o v e r th e u n i o n s by t h r e a t e n i n g t o move t o p l a n t by p l a n t n e g o t i a t i o n s u n l e s s t h e u n i o n s were w i l l i n g t o c o o p e r a t e and c o n c l u d e a g r e e m e n t s w i t h o u t t h e t r a d i t i o n a l down t i m e . The d e a c c r e d i t a t i o n a l s o a l l o w e d t h o s e members who were no l o n g e r c o n v i n c e d o f t h e m e r i t s of group b a r g a i n i n g t o r e m a i n w i t h i n t h e a s s o c i a t i o n . S e v e r a l members o f t h e a s s o c i a t i o n no l o n g e r wanted t o be t i e d down by group b a r g a i n i n g , w a n t i n g i n s t e a d t h e f reedom t o c o n c l u d e t h e i r own c o n t r a c t s . These members would have l e f t t h e P u l p B u reau had i t r e m a i n e d an a c c r e d i t e d a s s o c i a t i o n . I n s t e a d t h e d e a c c r e d i t a t i o n a l l o w e d them t o c o n t i n u e t h e i r membership and t o r e c e i v e t h e o t h e r b e n e f i t s o f membership w i t h u o t be r e q u i r e d t o r e l i n q u i s h t o t h e a s s o c i a t i o n t h e i r a b i l i t y t o c o n c l u d e a c o l l e c t i v e a g reement. 2. F o r e s t I n d u s t r y 1986 The s i x month f o r e s t i n d u s t r y s t r i k e o f 1986 c r e a t e d c r a c k s i n t h e s o l i d a r i t y b o t h w i t h i n t h e two s o l i d wood employ e r a s s o c i a t i o n s and between them. However, u n l i k e t h e s i t u a t i o n i n t h e p u l p and p a p e r i n d u s t r y , no f o r m a l changes i n b a r g a i n i n g s t r u c t u r e have r e s u l t e d . C o n t r a c t i n g out was t h e major i s s u e o f c o n t e n t i o n p r e c i p i t a t i n g what became t h e i n d u s t r y ' s w o r s t s t r i k e i n many y e a r s . I t was t h e i d e a l i s s u e t o c a u s e d i v i s i o n b o t h 116 w i t h i n and b e t ween t h e s e e m p l o y e r a s s o c i a t i o n s . The f i r m s w h i c h were d i r e c t l y a f f e c t e d by t h i s i s s u e were g e n e r a l l y t h e l a r g e i n t e g r a t e d f i r m s on t h e C o a s t b e l o n g i n g t o F I R . These f i r m s had t r a d i t i o n a l l y u s e d t h e i r own e m p l o y e e s t o h a r v e s t t h e t i m b e r t h e y owned. However, w i t h t h e i n c r e a s i n g m e c h a n i z a t i o n o f t h i s work and t h e h e a v y i n v e s t m e n t needed i n e x p e n s i v e e q u i p m e n t , t h e e m p l o y e r s w a n t e d t h e f l e x i b i l i t y and t h e c o s t s a v i n g s a s s o c i a t e d w i t h c o n t r a c t i n g o u t t h i s w ork. T h e r e were a l s o o p p o r t u n i t i e s f o r c o n t r a c t work t o be done i n s i d e t h e m i l l s i n t h e a r e a s o f m a i n t e n a n c e and r e p a i r . The IWA was o p p o s e d t o any o f t h e s e c h a n g e s w i t h o u t t h e i n c l u s i o n o f p r o p e r l a n g u a g e p r o t e c t i n g members* j o b s i n c l u d e d i n t h e c o l l e c t i v e a g r e e m e n t . In c o n t r a s t t o t h e s i t u a t i o n on t h e C o a s t , l o g g i n g i n t h e N o r t h e r n I n t e r i o r i s done a l m o s t s o l e l y by c o n t r a c t o r s . As 60 p e r c e n t o f C ONIFER ' S members a r e s i n g l e p l a n t c o m p a n i e s , t h e y do n o t have t h e r e s o u r c e s t o h a r v e s t t h e i r own t i m b e r and t h e r e f o r e l o g g i n g has been done a l m o s t e x c l u s i v e l y by c o n t r a c t o r s f o r many y e a r s ( G u n d e r s o n , B e n n e t t 1 9 8 9 ) . T h e r e f o r e , when t h e IWA s t r u c k t h e p r o v i n c e ' s t h r e e e m p l o y e r a s s o c i a t i o n s ' members i n o r d e r t o w i n t h e c o n t r a c t l a n g u a g e i t f e l t n e c e s s a r y t o p r o t e c t members* j o b s , t h e N o r t h e r n I n t e r i o r , n o t h a v i n g t h e i r own l o g g i n g work f o r c e s whose work t h e y c o u l d p o t e n t i a l l y c o n t r a c t o u t , s i g n e d t h e a g r e e m e n t and s e t t l e d q u i c k l y . The l a r g e i n t e g r a t e d c o m p a n i e s c o u l d s u r v i v e and r e s i s t s i g n i n g what t h e y saw as o v e r l y r e s t r i c t i v e c o n t r a c t l a n g u a g e 117 b e c a u s e o f t h e i r d i v e r s i f i c a t i o n i n t o p u l p . B u t , many o f t h e s m a l l e r N o r t h e r n I n t e r i o r s a w m i l l s , a l r e a d y h a r d h i t by i n c r e a s e d stumpage r a t e s , had no c h o i c e b u t t o s e t t l e . As a r e s u l t t h e N o r t h e r n I n t e r i o r was bac k t o work f o u r d a y s a f t e r t h e s t r i k e b e g a n . P r e s s u r e s were a l s o b u i l d i n g w i t h i n F I R . Member c o m p a n i e s who were e x p e r i e n c i n g f i n a n c i a l d i f f i c u l t i e s a l s o a g r e e d t o s e t t l e w i t h t h e IWA. These were n o n - i n t e g r a t e d f o r e s t c o m p a n i e s who, w i t h o u t t h e income f r o m t h e p u l p s i d e o f t h e b u s i n e s s , w o u l d have been i n s e r i o u s f i n a n c i a l t r o u b l e had t h e y been f o r c e d t o e n d u r e a l o n g s t r i k e . S e v e r a l FIR members a g r e e d t o t h e IWA l a n g u a g e and r e t u r n e d t o work. I n o r d e r t o s t o p t h e IWA f r o m a p p r o a c h i n g f i n a n c i a l l y weak e m p l o y e r s i n d i v i d u a l l y t o s i g n a g r e e m e n t s w i t h t h e u n i o n , FIR s u c c e s s f u l l y c h a r g e d t h e u n i o n w i t h b a r g a i n i n g i n bad f a i t h . D e s p i t e t h i s r u l i n g t h e damage had been done and s e v e r a l member f i r m s o f FIR o p e r a t e d f o r t h e d u r a t i o n o f t h e s t r i k e as d i d a l l o f t h e CONIFER members. The 1986 f o r e s t i n d u s t r y s t r i k e was a s i g n i f i c a n t e v e n t i n t h a t i t c a u s e d two d i f f e r e n t r i f t s i n t h e i n d u s t r y ' s b a r g a i n i n g s t r u c t u r e . F i r s t , i t c r e a t e d a d i v i s i o n b e t w een CONIFER and F I R . A l t h o u g h t h e t e r m s o f s e t t l e m e n t were i d e n t i c a l i n t h e end f o r members o f b o t h a s s o c i a t i o n s , t h e months d u r i n g t h e s t r i k e saw CONIFER members a t work w h i l e FIR members c o n t i n u e d t h e s t r i k e . S e c o n d , t h e s t r i k e a l s o c a u s e d d i v i s i o n among t h e r a n k s o f FIR members. F o r t h e f i r s t t i m e i n d e c a d e s s e v e r a l f i r m s s e t t l e d i n d i v i d u a l l y 118 w i t h t h e IWA d u r i n g t h e s t r i k e and r e t u r n e d t o work w h i l e t h e b u l k o f t h e a s s o c i a t i o n ' s e m p l o y e r s r e m a i n e d c l o s e d down. The t r a d i t i o n o f s o l i d a r i t y w i t h i n t h e i n d u s t r y , be i t an i n d u s t r y - w i d e s e t t l e m e n t o r an i n d u s t r y - w i d e s t r i k e , was b r o k e n i n 1986. Even t h o u g h t r a d i t i o n r e t u r n e d i n 1988 and t h e p a t t e r n seemed t o be r e e s t a b l i s h e d , t h e r e a r e c o n c e r n s n e v e r t h e l e s s a b o u t t h e l o n g e v i t y o f i n d u s t r y w i d e b a r g a i n i n g i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y . I V . The R e s u l t o f E n v i r o n m e n t a l Change - S h i f t s i n B a r g a i n i n g S t r u c t u r e P r e f e r e n c e s The e n v i r o n m e n t a l c h a n g e s o f t h e 1980s have b r o u g h t a b o u t an i n c r e a s e d need f o r f l e x i b i l i t y i n t h e w o r k p l a c e t o d e a l w i t h i n c r e a s i n g l e v e l s o f u n c e r t a i n t y and i n c r e a s i n g r a t e s o f c h a n g e . The need f o r f l e x i b i l i t y i n t h e f o r e s t p r o d u c t s i n d u s t r y i s h e i g h t e n e d b e c a u s e o f t h e r e c e n t d i v e r s i f i c a t i o n o f f i r m s w i t h i n t h e two i n d u s t r y s e c t o r s and b e t w een t h e two s e c t o r s t h e m s e l v e s . The b a r g a i n i n g s t r u c t u r e p r e f e r e n c e s o f B.C. f o r e s t p r o d u c t s i n d u s t r y e m p l o y e r s have been a f f e c t e d by t h e s e c h a n g e s . The need f o r f l e x i b i l i t y w i t h i n t h e e m p l o y e r a s s o c i a t i o n s c r e a t e d by t h e r e c e n t d i v e r s i f i c a t i o n o f m a r k e t s and p r o d u c t s has c r e a t e d p r e s s u r e f o r t h e b r e a k up o f t h e t h r e e e m p l o y e r a s s o c i a t i o n s u n d e r s t u d y h e r e . O t h e r c h a n g e s t h a t have o c c u r r e d b e tween t h e two i n d u s t r y s e c t o r s have c r e a t e d t h e d e s i r e by some i n d u s t r y p a r t i c i p a n t s f o r an end t o t h e t r a d i t i o n a l p a t t e r n b a r g a i n i n g i n w h i c h b o t h t h e p u l p and p a p e r i n d u s t r y 119 agreement and t h e I n t e r i o r lumber agreements a r e l i n k e d t o t h e C o a s t a l IWA c o n t r a c t n e g o t i a t e d w i t h FIR. A. The Need f o r F l e x i b i l i t y E n v i r o n m e n t a l changes t h a t have a f f e c t e d b u s i n e s s w o r l d wide have n e c e s s i t a t e d i n c r e a s e d l e a n n e s s and c o m p e t i t i v e n e s s i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y . F i e r c e r c o m p e t i t i o n , i n c r e a s e d c u r r e n c y f l u c t u a t i o n , and r a p i d l y c h a n g i n g t e c h n o l o g y have a l l c r e a t e d t h e need f o r t h e i n d u s t r y t o become more f l e x i b l e . F l e x i b i l i t y i n c o n t r a c t t erms i s a l s o needed on a f i r m by f i r m b a s i s i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y as t h e i n v e s t m e n t commitments, f i n a n c i a l v i a b i l i t y , and s i z e of o p e r a t i o n s v a r i e s t o a g r e a t e r d e g r e e among i n d u s t r y p a r t i c i p a n t s . The 1983 i n d u s t r y b a r g a i n i n g r o u n d was t h e f i r s t t h a t made i n c r e a s e d f l e x i b i l i t y i n work s c h e d u l i n g and work r u l e s a c e n t r a l i s s u e . T h i s t o p i c emerged a g a i n i n 1986, t h i s t i m e l e a d i n g t o a s i x month f o r e s t i n d u s t r y s t r i k e , and i t a g a i n was made a c e n t r a l i s s u e i n t h e 1988 round o f n e g o t i a t i o n s . The need f o r f l e x i b i l i t y i s l i k e l y t o r e m a i n a c e n t r a l i s s u e as r a p i d change becomes c h a r a c t e r i s t i c of t h e i n d u s t r y t h r o u g h o u t th e n e x t d e c a d e . N e g o t i a t i o n s s l a t e d f o r 1991 w i l l i n v a r i a b l y r a i s e t h e t o p i c once a g a i n . Up t o now t h e u n i o n s have r e m a i n e d adamant i n t h e i r r e f u s a l t o g r a n t t h e i n d u s t r y c o n c e s s i o n s i n work r u l e s and i n t h e s c h e d u l i n g o f o p e r a t i o n s . The c u r r e n t s t r u c t u r e o f c e n t r a l i z e d b a r g a i n i n g has not g e n e r a t e d f o r t h e i n d u s t r y 120 t h e b a r g a i n i n g power t o f o r c e i t s w i l l upon t h e u n i o n s . I t has become t h e b e l i e f o f some t h a t t h e o n l y way t o i n c r e a s e e m p l o y e r b a r g a i n i n g power i s t o d e c e n t r a l i z e t h e b a r g a i n i n g p r o c e s s t o t h e f i r m o r p l a n t l e v e l . By s i n g l i n g o u t t h e u n i o n on a l o c a l by l o c a l b a s i s , some e m p l o y e r s hope t o be a b l e t o n e g o t i a t e t h e f l e x i b i l i t y c o n c e s s i o n s t h e y r e q u i r e t o r e m a i n v i a b l e i n d u s t r y p a r t i c i p a n t s . R e c e n t c h a n g e s i n B r i t i s h C o l u m b i a ' s l a b o u r l e g i s l a t i o n were made t o i n c r e a s e i n d i v i d u a l e m p l o y e r f l e x i b i l i t y . T h ese c h a n g e s w o u l d a l l o w e m p l o y e r s i n t h e f o r e s t p r o d u c t s i n d u s t r y t o b r e a k w i t h t h e t r a d i t i o n a l s t r u c t u r e o f b a r g a i n i n g and move t o f i r m l e v e l o r even p l a n t l e v e l b a r g a i n i n g . F I R , t h e o n l y a c c r e d i t e d e m p l o y e r a s s o c i a t i o n , has l i t t l e l e g a l b a r r i e r t o d e a c c r e d i t a t i o n . I f t h e a s s o c i a t i o n a p p l i e s f o r d e a c c r e d i t a t i o n w i t h i n t h e d e s i g n a t e d t i m e p e r i o d , t h e n , u n d e r t h e new l e g i s l a t i o n i t s r e q u e s t must be g r a n t e d . The o n l y o t h e r b a r r i e r t o b r e a k up f o r FIR and t h e o n l y b a r r i e r t o t h e b r e a k up o f t h e o t h e r two v o l u n t a r y a s s o c i a t i o n s , PPIRB and CONIFER, i s u n i o n b a r g a i n i n g power and t h e p o t e n t i a l damage t h e u n i o n c o u l d i n f l i c t i n a d e c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e . However, w i t h r e c e n t c h a n g e s t o t h e p r o v i n c e ' s p i c k e t i n g l e g i s l a t i o n , u n i o n power has been c u r t a i l e d somewhat. P r e v i o u s l y , t h e u n i o n s had t h e power t o p i c k e t a l l p l a n t s o f t h e e m p l o y e r i n v o l v e d i n t h e d i s p u t e . T h i s i s no l o n g e r t h e c a s e . F o r m u l t i - p l a n t f i r m s b a r g a i n i n g on a p l a n t by p l a n t b a s i s o r f o r t h e i n t e g r a t e d 121 c o m p a n i e s b a r g a i n i n g w i t h t h e p u l p u n i o n s s e p a r a t e l y f r o m t h e IWA, t h e new l e g i s l a t i o n makes o n l y t h e s i t e o f t h e d i s p u t e t h e p r i m a r y s i t e . I t w o u l d now be p o s s i b l e f o r e m p l o y e r s t o whipsaw t h e u n i o n by t a k i n g a s t r i k e a t one l o c a t i o n a t a t i m e w h i l e o p e r a t i n g f u l l y a t t h e o t h e r s . The damage t o e m p l o y e r s i n t h e o r y w o u l d be f a r l e s s . B. D i v e r g i n g E m p l o y e r I n t e r e s t s The e n v i r o n m e n t a l c hange s p e c i f i c t o t h e f o r e s t p r o d u c t s i n d u s t r y , has c r e a t e d d i v e r s i t y b e t w e e n i n d u s t r i e s , r e g i o n s , and even f i r m s w i t h i n e a c h r e g i o n . As s t a t e d i n C h a p t e r Two, e m p l o y e r a s s o c i a t i o n s r e m a i n v i a b l e and r e t a i n t h e i r b a r g a i n i n g power o n l y as l o n g as i n d i v i d u a l s w i t h i n t h e g r o u p a r e a b l e and w i l l i n g t o r e l i n q u i s h t h e i r own g o a l s f o r t h e common good o f t h e g r o u p . The more homogeneous t h e g r o u p i n t e r m s o f s i z e , r e g i o n , t h e u n i o n s w i t h w h i c h t h e y n e g o t i a t e , t h e i r methods o f p r o d u c t i o n , m a r k e t s h a r e and p r o f i t a b i l i t y , t h e more c e n t r a l i z e d b a r g a i n i n g c a n become b e f o r e t h e c o s t s t o t h e i n d i v i d u a l s become p r o h i b i t i v e and s u c h a c e n t r a l i z e d s t r u c t u r e i s no l o n g e r v i a b l e . C u r r e n t l y , t h e r e i s g r o w i n g d i s s i m i l a r i t y among f i r m s and r e g i o n s i n t h e s e c r i t i c a l a r e a s . The p u l p and l u m b e r i n d u s t r i e s a r e b e c o m i n g l e s s s i m i l a r as w o r l d m a r k e t s f o r t h e i r p r o d u c t s a p p e a r t o be m o v i n g i n d i f f e r e n t d i r e c t i o n s . The a b i l i t y t o pay w o r k e r s i n t h e two i n d u s t r i e s i d e n t i c a l r a t e s i s q u i c k l y b e c o m i n g i m p o s s i b l e due t o t h e c h a n g i n g e c o n o m i c s o f e a c h i n d u s t r y . The r e s u l t i s i n c r e a s i n g 122 p r e s s u r e on t h e t r a d i t i o n o f i n t e r - i n d u s t r y p a t t e r n b a r g a i n i n g . Even w i t h i n t h e two i n d u s t r i e s f i r m s may n o t be a b l e t o c o n t i n u e t o pay t h e i r w o r k f o r c e s t h e i n d u s t r y s t a n d a r d . The p u l p and p a p e r i n d u s t r y i s m o v i n g f r o m t h e c o m m o d i t y m a r k e t s o f s t a n d a r d p u l p and n e w s p r i n t i n t o more d i v e r s i f i e d m a r k e t s f o r a r a n g e o f d i f f e r e n t i a t e d p r o d u c t s . As t h i s o c c u r s p r o d u c t s , c o s t s , p r o f i t m a r g i n s , methods o f p r o d u c t i o n , work r u l e s and w o r k i n g c o n d i t i o n s become more d i v e r s e on a company by company and o f t e n e ven on a p l a n t by p l a n t , b a s i s . As f i r m s move i n t o t h e s e s e p a r a t e n i c h e m a r k e t s , t h e r e q u i r e m e n t o f p a y i n g t h e i n d u s t r y s t a n d a r d wages and b e n e f i t s may mean t h e f i n a n c i a l r u i n o f some members. The same p r o c e s s i s o c c u r r i n g i n t h e s o l i d wood s e c t o r o f t h e i n d u s t r y . As t h e C o a s t and I n t e r i o r r e g i o n s o f t h e p r o v i n c e c o n t i n u e t o s p e c i a l i z e i n d i f f e r e n t m a r k e t s , t h e f e a s i b i l i t y o f c o n t i n u i n g t o b a s e I n t e r i o r wages and b e n e f i t s on t h o s e s e t by t h e C o a s t s e c t o r o f t h e i n d u s t r y becomes h i g h l y q u e s t i o n a b l e . Even among f i r m s w i t h i n t h e s e r e g i o n s t h e p r e s s u r e s f o r d e c e n t r a l i z a t i o n a r e m o u n t i n g . T h i s i s e s p e c i a l l y t r u e i n t h e r a n k s o f CONIFER where s m a l l s i n g l e l o c a t i o n s a w m i l l s a r e g r o u p e d t o g e t h e r w i t h some o f t h e p r o v i n c e ' s l a r g e i n t e g r a t e d c o m p a n i e s . T h i s s i z e d i s p a r i t y b e t w e e n t h e l a r g e i n t e g r a t e d f i r m s i n t h e i n d u s t r y and o t h e r s m a l l m i l l s may mean t h a t o n l y t h o s e f i r m s w i t h e c o n o m i e s o f s c a l e i n p r o d u c t i o n c a n a f f o r d t h e s t a n d a r d i n d u s t r y r a t e s . I t i s t h e s e f i r m s who w i l l be a b l e t o 123 r e m a i n i n t h e a s s o c i a t i o n w i t h o t h e r s s i m i l a r t o t h e m s e l v e s i n t e r m s o f s i z e and f i n a n c i a l s t a b i l i t y . The p r e f e r e n c e s o f B.C. f o r e s t i n d u s t r y e m p l o y e r s f o r a more d e c e n t r a l i z e d f o r m o f b a r g a i n i n g a r e c o n s i s t e n t w i t h s t u d i e s done o f e m p l o y e r s i n o t h e r i n d u s t r i e s d u r i n g t h i s p e r i o d . These same d e s i r e s were t h e c a t a l y s t t h a t l e d t o t h e 1984 b r e a k d o w n o f a f o r t y y e a r t r a d i t i o n o f p a t t e r n b a r g a i n i n g i n Canada's meat p a c k i n g i n d u s t r y . F o r r e s t ' s ( 1 9 8 9 ) s t u d y o f t h e b r e a k down o f t h i s n a t i o n a l p a t t e r n p o i n t s t o i n c r e a s e d p r e s s u r e on i n d u s t r y wages c o m i n g f r o m s i g n i f i c a n t n o n - u n i o n c o m p e t i t i o n i n t h e b e e f s e c t o r , o v e r c a p a c i t y i n t h e C a n a d i a n m a r k e t and t h e i n a b i l i t y t o e n t e r and compete s u c c e s s f u l l y i n t h e huge U.S. m a r k e t w i t h c u r r e n t wage l e v e l s . Over t h e p a s t f i v e y e a r s b a r g a i n i n g i n t h e meat p a c k i n g i n d u s t r y has been d e c e n t r a l i z e d t o t h e p l a n t l e v e l and wage p a r i t y no l o n g e r e x i s t s i n t h e i n d u s t r y . C. The U n i o n s ' P r e f e r e n c e s D e s p i t e t h e s e marked c h a n g e s i n e m p l o y e r p r e f e r e n c e s f o r h i g h l y c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s s i n c e t h e b e g i n n i n g o f t h e d e c a d e , t h e u n i o n s s t i l l p r e f e r t h e s t a t u s quo. A l l t h r e e u n i o n s r e m a i n c o m m i t t e d t o i n d u s t r y w i d e b a r g a i n i n g i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y . The a d m i n i s t r a t i v e c o n v e n i e n c e , t h e a b i l i t y t o a d m i n i s t e r i n d u s t r y w i d e p e n s i o n p l a n s , and t h e c o n t i n u a t i o n o f wage and b e n e f i t p a r i t y t h r o u g h o u t t h e i n d u s t r y a r e a l l 124 a d v a n t a g e s o f c e n t r a l i z e d b a r g a i n i n g t h a t t h e u n i o n s do n o t want t o l o s e . V I . Summary and C o n c l u s i o n T h i s c h a p t e r has o u t l i n e d t h e e n v i r o n m e n t a l f a c t o r s t h a t have emerged o v e r t h e p a s t d e c a d e and t h a t have a f f e c t e d t h e f o r e s t p r o d u c t s i n d u s t r y : c h a n g i n g t e c h n o l o g y , c h a n g i n g m a r k e t s and p r o d u c t s , t h e e f f e c t s o f a w o r l d r e c e s s i o n e a r l y i n t h e d e c a d e , i n c r e a s i n g c o m p e t i t i o n , and t h e a f t e r e f f e c t s o f two b i t t e r l a b o u r d i s p u t e s . The r e s u l t o f t h e s e f o r c e s has been t o c r e a t e d i v e r s i t y , c e r t a i n l y b e t w e e n t h e v a r i o u s r e g i o n s o f t h e p r o v i n c e i n w h i c h l u m b e r i s p r o d u c e d , b u t a l s o among f i r m s i n b o t h t h e s a w m i l l i n g and p u l p and p a p e r s e c t o r s . The t e c h n o l o g y u s e d i n b o t h i n d u s t r y s e c t o r s d i f f e r s b e t w e en t h e C o a s t and t h e I n t e r i o r r e g i o n s . In s a w m i l l i n g , t h e m a r k e t s a l s o d i f f e r : t h e I n t e r i o r f o c u s i s on t h e p r o d u c t i o n o f p u l p c h i p s and d i m e n s i o n l u m b e r f o r t h e A m e r i c a n m a r k e t , w h i l e t h e C o a s t c o n c e n t r a t e s on t h e m a n u f a c t u r i n g o f s p e c i a l i z e d p r o d u c t s t h a t can c a p t u r e premium p r i c e s i n o f f s h o r e m a r k e t s . The p r i m a r y p u l p p r o d u c e r s have a l s o s t a r t e d t o l o o k f o r n i c h e m a r k e t s w h i c h t h e y c a n s u p p l y a t a premium p r i c e . The d i f f e r e n t i a t i o n o f t h e i r p r o d u c t s and t h e d i f f e r e n t m a r k e t s t o w h i c h t h e y s e l l has c o n t r i b u t e d t o a g r o w i n g d i s s i m i l a r i t y b e t w e e n w o r k p l a c e s . As i n t h e c a s e o f t h e C a n a d i a n meat p a c k i n g i n d u s t r y , i t w o u l d be e x p e c t e d t h a t t h e s e d i v i s i v e f o r c e s 125 w o u l d a c t t o d r i v e t h e up t o now c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s w h i c h a r e a l s o t i e d c l o s e l y t o one a n o t h e r i n t e r m s o f p a t t e r n s e t t i n g and f o l l o w i n g , a p a r t . The p r e s s u r e f o r d e c e n t r a l i z a t i o n i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y i s b u i l d i n g and t h e r e a p p e a r a t f i r s t g l a n c e t o be few b a r r i e r s t o d e c e n t r a l i z a t i o n . The n e x t c h a p t e r e x a m i n e s t h e c h a n g e s t h a t have t a k e n p l a c e t o d a t e i n t h e s t r u c t u r e o f b a r g a i n i n g i n t h i s i n d u s t r y and s e e k s t o e x p l a i n why t h e c h a n g e s have n o t been as d r a m a t i c as w o u l d be e x p e c t e d . 126 CHAPTER S I X : FACTORS I N H I B I T I N G CHANGES IN BARGAINING STRUCTURE IN B.C.'S FOREST PRODUCTS INDUSTRY I . I n t r o d u c t i o n D u r i n g t h e 1980s b a r g a i n i n g s t r u c t u r e s t h r o u g h o u t N o r t h A m e r i c a have t e n d e d t o w a r d s d e c e n t r a l i z a t i o n . I n c r e a s e d f o r e i g n c o m p e t i t i o n , d e r e g u l a t i o n o f p r e v i o u s l y r e g u l a t e d i n d u s t r i e s , and t h e deep r e c e s s i o n o f t h e e a r l y 1980s have a l l c o n t r i b u t e d t o t h i s phenomenon. F o r r e s t ' s ( 1 9 8 9 ) s t u d y o f t h e C a n a d i a n m e a t p a c k i n g i n d u s t r y t y p i f i e s t h e e x p e r i e n c e o f many b a r g a i n i n g r e l a t i o n s h i p s i n N o r t h A m e r i c a d u r i n g t h i s d e c a d e . T h i s c h a p t e r d e s c r i b e s t h e c h a n g e s i n b a r g a i n i n g s t r u c t u r e t h a t have o c c u r r e d t o d a t e i n t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a . The o b j e c t i v e o f t h i s c h a p t e r i s t o d e t e r m i n e why t h e c h a n g e s i n b a r g a i n i n g s t r u c t u r e i n t h i s i n d u s t r y have been so much l e s s d r a m a t i c t h a n t h o s e i n o t h e r i n d u s t r i e s , d e s p i t e e x p o s u r e t o s i m i l a r e n v i r o n m e n t a l p r e s s u r e s . As i n t h e p r e c e d i n g c h a p t e r , much o f t h e i n f o r m a t i o n p r e s e n t e d h e r e was g a t h e r e d d u r i n g i n t e r v i e w s w i t h b o t h u n i o n and e m p l o y e r a s s o c i a t i o n r e p r e s e n t a t i v e s d u r i n g t h e summer o f 1989. The c h a p t e r b e g i n s by o u t l i n i n g t h e c h a n g e s t o d a t e i n t h e B.C. f o r e s t p r o d u c t s i n d u s t r y ' s b a r g a i n i n g s t r u c t u r e , b o t h f o r m a l c h a n g e s i n t h e a c c r e d i t a t i o n o f t h e e m p l o y e r a s s o c i a t i o n s u n d e r s t u d y and more i n f o r m a l c h a n g e s 127 i n the p a t t e r n of b a r g a i n i n g among the three a s s o c i a t i o n s . The second s e c t i o n addresses the reasons why the changes i n b a r g a i n i n g s t r u c t u r e have not been more s i g n i f i c a n t . S e v e r a l f a c t o r s are i d e n t i f i e d which help e x p l a i n the r e l a t i v e l y small degree of change that has occurred i n B r i t i s h Columbia's f o r e s t products i n d u s t r y . O r g a n i z a t i o n a l f a c t o r s i n c l u d i n g t h i r d party p r e s s u r e , commitment on the part of the employers to a s s o c i a t i o n b a r g a i n i n g , the f o r c e of t r a d i t i o n and past p r a c t i c e impacting those on both s i d e s of the b a r g a i n i n g t a b l e , the s t r e n g t h of the unions to r e s i s t u n i l a t e r a l change, and the environmental impact of c u r r e n t market c o n d i t i o n s are a l l c i t e d as e x p l a n a t i o n s f o r the lack of marked change. The chapter concludes with a d i s c u s s i o n of the changes i n the i n d u s t r y ' s b a r g a i n i n g s t r u c t u r e which can be expected i n the near f u t u r e . I I . Changes That Have Occurred to Date A. Changes i n Formal S t r u c t u r e As d e s c r i b e d i n the previous chapter, the Pulp Bureau was f o r m a l l y d e a c c r e d i t e d i n 1985 a f t e r more than a decade f i l l e d with work stoppages, both l e g a l and i l l e g a l , which culminated i n the twelve week l o c k o u t / s t r i k e of 1984. Out of f r u s t r a t i o n and i n an attempt to r e a s s e r t t h e i r power v i s a v i s the pulp unions, the p r o v i n c e ' s pulp employers agreed to d e a c c r e d i t t h e i r b a r g a i n i n g a s s o c i a t i o n . It was thought that the t h r e a t of p l a n t by p l a n t or e n t e r p r i s e b a r g a i n i n g would allow the employers to e x t r a c t needed concessions from 128 t h e u n i o n s and a l l o w them t o c o n c l u d e a g r e e m e n t s w i t h f e w e r work s t o p p a g e s ( M i t t e r n d o r f e r 1 9 8 9 ) . D e s p i t e t h e d e a c c r e d i t a t i o n o f t h e a s s o c i a t i o n , m e mbership has r e m a i n e d v i r t u a l l y u n c h a n g e d and b a r g a i n i n g i n t h e two r o u n d s f o l l o w i n g d e a c c r e d i t a t i o n has p r o c e e d e d much as b e f o r e . In t h e 1986 and 1988 r o u n d s o f n e g o t i a t i o n , c o n t r a c t s have been c o n c l u d e d w i t h a l l b u t one o r two members i n v o l v e d i n t h e b a r g a i n i n g p r o c e s s . I n b o t h c a s e s t h e s e e m p l o y e r s s u b s e q u e n t l y a g r e e d t o t h o s e p r o v i s i o n s n e g o t i a t e d by t h e P u l p B u r e a u . To d a t e , t h e r e has been no a t t e m p t by e m p l o y e r s i n t h e p u l p s e c t o r t o p u r s u e e n t e r p r i s e b a r g a i n i n g d e s p i t e t h e i r i n t e r e s t i n i t ( M i t t e r n d o r f e r 1 9 8 9 ) . However, s h o u l d c e n t r a l i z e d b a r g a i n i n g no l o n g e r meet t h e i r n e e d s , t h e move t o company o r p l a n t l e v e l b a r g a i n i n g c o u l d be e a s i l y a c c o m p l i s h e d now t h a t t h e P u l p B u r e a u i s no l o n g e r a c c r e d i t e d . In t h e m e a n t i m e , t h e a s s o c i a t i o n i s e x p e c t e d t o be a b l e t o a d e q u a t e l y c o n d u c t i t s a f f a i r s as a v o l u n t a r y o r g a n i z a t i o n b a r g a i n i n g on b e h a l f o f i t s members b e c a u s e o f t h e h o m o g e n e i t y o f t h e e m p l o y e r s i n v o l v e d i n t e r m s o f t h e i r s i z e , l o c a t i o n , p r o f i t a b i l i t y , and s o p h i s t i c a t i o n o f i n t e r n a l i n d u s t r i a l r e l a t i o n s d e p a r t m e n t s . B. Change i n I n f o r m a l S t r u c t u r e - D i s s o l u t i o n o f T i e s Between PPIRB and FIR S i n c e J a n u a r y 1989 FIR and PPIRB have been r u n as s e p a r a t e a s s o c i a t i o n s . B e g i n n i n g i n 1974, t h e two b o d i e s were o v e r s e e n by a common C h a i r m a n , who r e t i r e d i n 1988. 129 The C h a i r m a n ' s r o l e was t o h e l p members o f t h e two a s s o c i a t i o n s c o o r d i n a t e t h e i r b a r g a i n i n g p o s i t i o n s and n e g o t i a t i n g t a c t i c s . The p u r p o s e o f t h i s c o o r d i n a t i o n was t o e n s u r e t h a t wages and b e n e f i t s i n t h e two s e c t o r s o f t h e i n d u s t r y were e q u a l and t h a t t h e r e was no o p p o r t u n i t y f o r one u n i o n t o l e a p f r o g i t s s e t t l e m e n t o v e r t h a t won by a n o t h e r . In a move t o i n c r e a s e a s s o c i a t i o n members' f l e x i b i l i t y , and as a way t o d i s c o u r a g e t h e c o n t i n u a t i o n o f p a t t e r n b a r g a i n i n g b e t ween t h e two i n d u s t r y s e c t o r s , a new C h a i r m a n has n o t been a p p o i n t e d and t h e two a s s o c i a t i o n s w i l l be managed i n d e p e n d e n t l y . T h i s c hange has o c c u r r e d as t h e e c o n o m i c b a s e s o f t h e s e two s e c t o r s grow i n c r e a s i n g l y d i s s i m i l a r . The p u l p and p a p e r s e c t o r has become a v e r y d i f f e r e n t b u s i n e s s f r o m t h e s o l i d wood s e c t o r . The p r e s i d e n t o f t h e P u l p B u r e a u , E r i c M i t t e r n d o r f e r , b e l i e v e s t h a t t h e s e v e r i n g o f t h e t i e s t o FIR w i l l make t h e p r o v i n c e ' s p r i m a r y p u l p p r o d u c e r s " t h a t much l i g h t e r on t h e i r f e e t " ( G l o b e and M a i l J a n u a r y 7, 1989) i n l i g h t o f t h e i n c r e a s i n g number o f v o l a t i l e v a r i a b l e s w i t h w h i c h e m p l o y e r s must c o n t e n d . These v a r i a b l e s i n c l u d e : i n t e r n a t i o n a l c u r r e n c y s w i n g s , u n p r e d i c t a b l e e n e r g y p r i c e s , i n c r e a s i n g raw m a t e r i a l c o s t s , and t h e enormous amounts o f c a p i t a l t h a t must be c o m m i t t e d w e l l i n a d v a n c e f o r c a p i t a l i m p r o v e m e n t p r o j e c t s . T h i s s e v e r i n g o f o f f i c i a l t i e s b e t w een t h e two e m p l o y e r o r g a n i z a t i o n s i s t h e f i r s t s t e p i n t h e e m p l o y e r s ' p l a n s t o s e p a r a t e t h e i r i n d u s t r y s e c t o r s and t o pave t h e way f o r 130 s e p a r a t e n e g o t i a t i o n s . The p u r p o s e o f t h e movement i s now c l e a r : t o s e p a r a t e b a r g a i n i n g o u t c o m e s n e g o t i a t e d i n one i n d u s t r y s e c t o r f r o m t h o s e c o n c l u d e d i n t h e o t h e r . The same e m p h a s i s has n o t y e t been p l a c e d on b r e a k i n g t h e l o n g s t a n d i n g p a t t e r n w h i c h t i e s I n t e r i o r l u m b e r s e t t l e m e n t s t o t h o s e n e g o t i a t e d on t h e C o a s t a l t h o u g h p r e s s u r e s h e r e a r e a l s o m o u n t i n g ( G u n d e r s o n 1 9 8 9 ) . D i s s o l v i n g t h e t i e s t h a t b i n d s e t t l e m e n t s i n t h e two s e c t o r s g i v e s a d v a n t a g e s t o e m p l o y e r s i n e a c h . P u l p e m p l o y e r s a r e f r e e d f r o m m a t c h i n g t h e s e t t l e m e n t won i n t h e IWA-FIR c o n t r a c t and a p p l y i n g i t t o a l l t h e i r p l a n t s . B r e a k i n g t h i s p a t t e r n a l l o w them t h e f r e e d o m t o p l a n on t h e i r own and a l l o w s them t o f u r t h e r c o n s i d e r m o v i n g t o e n t e r p r i s e b a r g a i n i n g on t h e i r own. S o l i d wood e m p l o y e r s , on t h e o t h e r h a n d , a r e f r e e d f r o m h a v i n g t o meet wage and b e n e f i t l e v e l s t h a t p u l p and p a p e r e m p l o y e r s c a n w e l l a f f o r d b u t t h a t many s m a l l e r s o l i d wood e m p l o y e r s w o u l d f i n d d i f f i c u l t . C. Changes i n P a t t e r n B a r g a i n i n g H owever, up t o now, i n s t e a d o f a b r e a k i n t h e p a t t e r n o f b a r g a i n i n g b e t w e e n t h e l u m b e r and p u l p s e c t o r s o f t h e B r i t i s h C o l u m b i a f o r e s t p r o d u c t s i n d u s t r y ( a s many e m p l o y e r s w o u l d l i k e t o s e e ) , t h e r e has been a change i n t h e r o l e o f p a t t e r n s e t t e r and p a t t e r n f o l l o w e r s i n t h e l a s t two r o u n d s o f n e g o t i a t i o n s . 131 Up u n t i l t h e mid 1980s t h e agreement r e a c h e d between t h e IWA and FIR became the p a c t t h a t was a p p l i e d w i t h l i t t l e a l t e r a t i o n t o u n i o n i z e d w o r k e r s i n t h e p u l p and p a p e r i n d u s t r y and t o o t h e r IWA members i n t h e r e s t o f t h e p r o v i n c e . However, i n 1986, t h e y e a r t h a t t h e f o r e s t i n d u s t r y had i t s w o r s t l a b o u r d i s p u t e i n many y e a r s , t h e p u l p u n i o n s s e t t h e pace f o r s e t t l e m e n t terms f o r t h e f i r s t t i m e . The p u l p u n i o n s s e t t l e d w i t h t h e PPIRB i n advance o f t h e i r c o n t r a c t e x p i r a t i o n d a t e f o r a f i r s t y e a r wage f r e e z e and a t h r e e p e r c e n t i n c r e a s e i n t h e s e c o n d y e a r o f t h e c o n t r a c t . When the s o l i d wood s e c t o r e v e n t u a l l y r e t u r n e d t o n e g o t i a t e a s e t t l e m e n t t o t h e f o u r and a h a l f month o l d s t r i k e , t h e IWA s e t t l e d f o r t h e same wage package won by t h e p u l p u n i o n s . N e g o t i a t i o n s i n 1988 f o l l o w e d t h e same i n f o r m a l p a t t e r n . P u l p p r o d u c e r s were r i d i n g t h e c r e s t o f an u n u s u a l l y b u o y a n t market f o r p u l p and n e w s p r i n t . Lumber p r o d u c e r s , i n c o n t r a s t , were f a c e d w i t h a good, but not e x t r a o r d i n a r y market f o r t h e i r p r o d u c t s . In a d d i t i o n , t h e s o l i d wood s i d e o f t h e i n d u s t r y was s t i l l t r y i n g t o n e g o t i a t e s a t i s f a c t o r y c l a u s e s t o d e a l w i t h f l e x i b i l i t y i n work s c h e d u l i n g and t o a g r e e upon c o n t r a c t i n g out p r o v i s i o n s . C o n s e q u e n t l y t h e p u l p and p a p e r i n d u s t r y r e a c h e d a s e t t l e m e n t f i r s t . Once the f o r e s t i n d u s t r y had r e a c h e d agreement on t h e non-wage i s s u e s , t h e IWA a g r e e d t o t h e same l e v e l o f wage i n c r e a s e s won by t h e p u l p u n i o n s . 132 I I I . R e a s o n s F o r L i t t l e Change A. The R e l a t i o n s h i p Between E n v i r o n m e n t a l and O r g a n i z a t i o n a l F o r c e s i n t h e B.C. F o r e s t P r o d u c t s I n d u s t r y As c a n be s e e n f r o m a b o v e , d e s p i t e t h e e n v i r o n m e n t a l c h a n g e s o f t h e p a s t d e c a d e d e s c r i b e d i n t h e p r e v i o u s c h a p t e r , some o f w h i c h have been d r a m a t i c , no s i g n i f i c a n t c h a n g e s i n t h e b a r g a i n i n g s t r u c t u r e o f B.C.'s f o r e s t p r o d u c t s i n d u s t r y have o c c u r r e d . In a n a l y s i n g what has been o b s e r v e d i n t h i s i n d u s t r y , i t i s i m p o r t a n t t o c l a r i f y t h e r e l a t i o n s h i p b e t ween t h e e n v i r o n m e n t a l and o r g a n i z a t i o n a l f o r c e s i n t h i s p a r t i c u l a r i n d u s t r i a l r e l a t i o n s s y s t e m . O r d i n a r i l y , e n v i r o n m e n t a l f o r c e s s u c h as t h e n a t u r e o f c o m p e t i t i o n , s t r e n g t h o f p r o d u c t m a r k e t s , and t e c h n o l o g i c a l c h ange may a c t e i t h e r t o e n c o u r a g e t h e c e n t r a l i z a t i o n o r d e c e n t r a l i z a t i o n o f b a r g a i n i n g s t r u c t u r e s . In t h e c a s e o f t h e B.C. f o r e s t p r o d u c t s i n d u s t r y i t has been o b s e r v e d t h a t most e n v i r o n m e n t a l p r e s s u r e s a r e c r e a t i n g i n e m p l o y e r s t h e d e s i r e f o r l e s s c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s . O r g a n i z a t i o n a l f o r c e s a c t i n much t h e same way: d e p e n d i n g upon t h e c i c u m s t a n c e s , f a c t o r s s u c h as t h e l e g a l e n v i r o n m e n t , t r a d i t i o n and p a s t p r a c t i c e , and i n s t i t u t i o n a l c h a r a c t e r i s t i c s may c r e a t e a d e s i r e f o r e i t h e r more o r l e s s c e n t r a l i z e d s t r u c t u r e s . In t h e B.C. f o r e s t p r o d u c t s i n d u s t r y i t w i l l be s e e n t h a t t h e o r g a n i z a t i o n a l f o r c e s p r e s e n t i n t h e i n d u s t r i a l r e l a t i o n s s y s t e m a r e w o r k i n g a g a i n s t d e c e n t r a l i z a t i o n and t o p r e s e r v e t h e s t a t u s quo. 133 F o r changes i n b a r g a i n i n g s t r u c t u r e and i n t h e p a t t e r n o f c o l l e c t i v e b a r g a i n i n g t o o c c u r , t h e e n v i r o n m e n t a l p r e s s u r e s i n t h e i n d u s t r y must overcome t h e g i v e n s e t of o r g a n i z a t i o n a l f o r c e s w o r k i n g t o p r e s e r v e t h e c u r r e n t s y s t e m . T h e r e f o r e , i t i s h y p o t h e s i z e d t h a t i t i s n o t t h e a b s o l u t e l e v e l o f p r e s s u r e t h a t d e t e r m i n e s change i n b a r g a i n i n g s t r u c t u r e s but r a t h e r , i t i s how t h e l e v e l o f p r e s s u r e f o r change compares t o t h e f o r c e s a c t i n g t o p r e s e r v e c u r r e n t i n d u s t r y s t r u c t u r e s . U n l e s s p r e s s u r e s f o r change r e a c h a l e v e l a t which t h e y overcome f o r c e s p r e s e r v i n g t h e s t a t u s quo, change w i l l not o c c u r . In t h e c a s e of t h e B r i t i s h C o l u m b i a f o r e s t p r o d u c t s i n d u s t r y , t h e c o n s t r a i n t s upon t h e c u r r e n t s y s t e m of c o l l e c t i v e b a r g a i n i n g a r e not as e a s i l y i d e n t i f i e d as many o f th e more r e c e n t l y emerged e n v i r o n m e n t a l f o r c e s which have c a u s e d e m p l o y e r s t o d e s i r e more d e c e n t r a l i z e d b a r g a i n i n g s t r u c t u r e s . Many of t h e s i g n i f i c a n t c o n s t r a i n i n g f o r c e s a r e s u b t l e o r g a n i z a t i o n a l p r e s s u r e s . The f o l l o w i n g s e c t i o n o f t h i s c h a p t e r i d e n t i f i e s t h e s e f o r c e s and s e e k s t o e x p l a i n why t h e y a r e s u c c e e d i n g i n c o u n t e r a c t i n g t h e g r e a t e n v i r o n m e n t a l p r e s s u r e s d e s c r i b e d i n C h a p t e r F i v e . B. I n d u s t r y T r a d i t i o n C e n t r a l i z e d b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y has become an e s t a b l i s h e d t r a d i t i o n . A l m o s t s i n c e b a r g a i n i n g began i n t h e i n d u s t r y i t has been done t h r o u g h e m p l o y e r a s s o c i a t i o n s a t l e a s t on a r e g i o n a l b a s i s and, f o r 134 t h e l a s t two d e c a d e s , on a p r o v i n c i a l s c a l e . F o r t y - f i v e y e a r s o f t r a d i t i o n w i l l be d i f f i c u l t t o o v e r c o m e , e s p e c i a l l y as t h e two s i d e s c a n n o t a g r e e t h a t t h e s y s t e m must be c h a n g e d and i n d u s t r y p l a y e r s on b o t h s i d e s c o n t i n u e t o r e c e i v e b e n e f i t s f r o m t h e c u r r e n t s y s t e m . 1. On t h e E m p l o y e r s ' S i d e T h e r e a r e s t i l l a d v a n t a g e s f o r many o f t h e e m p l o y e r s on t h e s o l i d wood s i d e o f t h e f o r e s t p r o d u c t s i n d u s t r y t o r e t a i n m e m bership i n t h e i r e m p l o y e r a s s o c i a t i o n s and t o c o n t i n u e t o p a r t i c i p a t e i n a s s o c i a t i o n w i d e b a r g a i n i n g . T h e r e i s n o t y e t t h e same d r i v e t o e n t e r p r i s e b a r g a i n i n g f r o m t h i s s e c t o r o f t h e i n d u s t r y t h a t t h e r e i s f r o m t h e p u l p and p a p e r e m p l o y e r s , a l t h o u g h t h e c o n c e p t has a t t r a c t e d t h e a t t e n t i o n o f CONIFER members. The p u l p e m p l o y e r s a r e l a r g e , f i n a n c i a l l y d i v e r s i f i e d o p e r a t i o n s , a l l o f w h i c h have t h e i r own i n d u s t r i a l r e l a t i o n s d e p a r t m e n t s s t a f f e d by p r o f e s s i o n a l s . In c o n t r a s t , t h e s o l i d wood s e c t o r i s c h a r a c t e r i z e d by t h e e x i s t e n c e o f a h a n d f u l o f v e r y l a r g e e m p l o y e r s Cthe l a r g e i n t e g r a t e d s s u c h as M a c M i l l a n - B l o e d e l , F l e t c h e r C h a l l e n g e - C a n a d a , and CANFOR) and by many s m a l l , o f t e n s i n g l e l o c a t i o n , e m p l o y e r s . Few o f t h e s e s m a l l e m p l o y e r s have i n - h o u s e i n d u s t r i a l r e l a t i o n s e x p e r t s and r e l y on t h e i r e m p l o y e r a s s o c i a t i o n f o r many s e r v i c e s s u c h as c o n t r a c t a d m i n i s t r a t i o n , g r i e v a n c e h a n d l i n g , and p e n s i o n a d m i n i s t r a t i o n . In a d d i t i o n t o r e q u i r i n g t h i s a d m i n i s t r a t i v e a i d , many of t h e s e s m a l l e m p l o y e r s do n o t have t h e b a r g a i n i n g power t o 135 f a c e t h e u n i o n on a p l a n t by p l a n t b a s i s . T h i s was t h e i r r e a s o n f o r j o i n i n g t h e a s s o c i a t i o n i n t h e f i r s t p l a c e , and t h a t need has not d i s a p p e a r e d . These s m a l l e r e m p l o y e r s need t h e s o l i d a r i t y o f an e m p l o y e r ' s a s s o c i a t i o n f o r p r o t e c t i o n when f o r c e d t o d e a l w i t h a u n i o n as s t r o n g and w e l l p o s i t i o n e d as t h e IWA-Canada. A s i n g l e l o c a t i o n e m p l o y e r i s e x t r e m e l y v u l n e r a b l e i f i s o l a t e d by t h e u n i o n i n b a r g a i n i n g and s u b s e q u e n t l y s t r u c k . A s m a l l f i r m c o u l d be d e s t r o y e d by a s t r i k e i f o u t p u t c o n t i n u e d a t e v e r y o t h e r s a w m i l l i n t h e p r o v i n c e . As a r e s u l t , s i n g l e s i t e n e g o t i a t i o n s c o u l d r e s u l t i n t h e c l o s u r e o f many o f t h e s e s m a l l e m p l o y e r s and t h u s , i n t h e f u r t h e r c o n c e n t r a t i o n o f t h e i n d u s t r y . I n s t e a d o f p u s h i n g f o r p l a n t by p l a n t b a r g a i n i n g as a way t o a c h i e v e t a i l o r made c o n t r a c t s , e m p l o y e r s i n t h e s o l i d wood s e c t o r would r a t h e r have f l e x i b i l i t y n e g o t i a t e d f o r t h e r e g i o n as a whole. Many would a l s o p r e f e r t o see t h e d i s i n t e g r a t i o n of t h e p a t t e r n between C o a s t and I n t e r i o r s e t t l e m e n t s , b u t do n o t want, a t t h i s p o i n t , t o go t o s i n g l e s i t e n e g o t i a t i o n s i n o r d e r t o do i t . Thus, so f a r t h e r e has been no a t t e m p t by FIR t o d e a c c r e d i t or f o r CONIFER members to b a r g a i n on an i n d i v i d u a l b a s i s and c u r r e n t l y t h e r e i s l i t t l e i n d i c a t i o n o f movement i n t h i s d i r e c t i o n . 2. On t h e Un i o n s i d e A u n i o n p r i o r i t y t h r o u g h o u t t h e b a r g a i n i n g r o u n d s o f th e 1960s and 1970s was wage and p e n s i o n b e n e f i t p a r i t y f o r 136 f o r e s t p r o d u c t i n d u s t r y w o r k e r s i n t h e p r o v i n c e . Not o n l y were l o g g e r s , s a w m i l l w o r k e r s , and s k i l l e d t r a d e s p e o p l e t o be p a i d t h e same no m a t t e r where o r f o r w h i c h company i n t h e p r o v i n c e t h e y w o r k e d , b u t s i m i l a r t y p e s o f work were t o be s i m i l a r l y r e w a r d e d w h e t h e r one w o r k e d on t h e p u l p o r s o l i d wood s i d e o f t h e i n d u s t r y . The u n i o n s r e a s o n e d t h a t t h e i n d u s t r y s h o u l d have a s i n g l e wage s c a l e t h r o u g h o u t , n o t one t h a t was d e p e n d e n t upon t h e m a r k e t v a g a r i e s o f a g i v e n p r o d u c t a t a s p e c i f i c t i m e o r t h e e c o n o m i c s o f a p a r t i c u l a r p l a n t o r l o c a t i o n ( M u n r o , Snow 1 9 8 9 ) . As a r e s u l t o f t h i s commitment a l l t h r e e u n i o n s a r e v e r y much o p p o s e d t o d e c e n t r a l i z e d b a r g a i n i n g , e s p e c i a l l y t o go as f a r as t h e p l a n t l e v e l . The IWA, t h e u n i o n whose members s t a n d t o l o s e t h e most i f t h e p a t t e r n i s b r o k e n , a r g u e s t h a t i f i n d u s t r y e c o n o m i c s were e s t a b l i s h e d on a more e q u i t a b l e b a s i s t h e r e w o u l d be no need t o c o n s i d e r t h i s c h a n g e . The IWA i d e n t i f i e s two s o u r c e s o f i n e q u i t y : t h e p r i c e p u l p p r o d u c e r s pay f o r c h i p s and t h e p r o v i n c e ' s i n a d e q u a t e r e f o r e s t a t i o n p o l i c i e s . The u n i o n b l a m e s much o f t h e r e c e n t p r o b l e m o f t h e i n a b i l i t y o f s o l i d wood e m p l o y e r s t o match wage g a i n s p o s s i b l e by p u l p e m p l o y e r s on t h e makers o f p u l p who pay t o o l i t t l e f o r t h e c h i p s t h e y use t o make p u l p and n e w s p r i n t . The IWA l e a d e r s h i p b e l i e v e s t h a t i f t h e p u l p i n d u s t r y p a i d a more e q u i t a b l e r a t e f o r i t s raw m a t e r i a l s t h e f i n a n c i a l i m b a l a n c e b e t w e e n t h e two s e c t o r s w o u l d d i s a p p e a r ( M u n r o , B e n n e t t 1 9 8 9 ) . The IWA a l s o b l a m e s t h e p r o v i n c e ' s f o r e s t 137 p o l i c y f o r t h e l a c k o f a d e q u a t e r e f o r e s t a t i o n w h i c h has r e s u l t e d i n t h e c u r r e n t d i r t h o f c o s t e f f e c t i v e t i m b e r s u p p l i e s ( C l a r k e 1 9 8 9 ) . I f c o m p a n i e s had a c c e s s t o c o s t e f f e c t i v e t i m b e r , t h e need t o r e d u c e t h e c o s t o f l a b o u r , t h e u n i o n s r e a s o n , w o u l d n o t be as p r e s s i n g . H owever, t h e IWA does r e c o g n i z e t h e need f o r s p e c i a l t r e a t m e n t o f some s e c t o r s w i t h i n t h e f o r e s t p r o d u c t s i n d u s t r y , most n o t a b l y t h e more l a b o u r i n t e n s i v e s e c t o r s s u c h as p l y w o o d and r e m a n u f a c t u r i n g . The u n i o n i s w i l l i n g t o n e g o t i a t e s e p a r a t e c o n t r a c t s f o r t h e s e s e c t o r s , w h i c h have been h a r d h i t by l o w wage c o m p e t i t i o n . The c o n c e s s i o n s p r o p o s e d f o r t h e s e e m p l o y e r s w o u l d n o t n e c e s s a r i l y be l o w e r wages b u t c o u l d t a k e t h e f o r m o f added f l e x i b i l i t y i n work s c h e d u l i n g . C. U n i o n S t r e n g t h and A b i l i t y t o R e s i s t S i g n i f i c a n t Changes Not o n l y a r e t h e u n i o n s o p p o s e d t o d e c e n t r a l i z e d b a r g a i n i n g f r o m a p h i l o s o p h i c a l p o i n t o f v i e w , t h e y a l s o have t h e power t o e f f e c t i v e l y r e s i s t i t s i m p o s i t i o n . The h i g h l y i n t e g r a t e d n a t u r e o f t h e v a r i o u s s e g m e n t s o f t h e f o r e s t p r o d u c t s i n d u s t r y i n B.C., c h a n g e s t o p i c k e t i n g l e g i s l a t i o n , and t h e o r g a n i z a t i o n a l s t r u c t u r e o f t h e IWA a l l c o n t r i b u t e t o a l e v e l o f u n i o n s t r e n g t h t h a t i s s u f f i c i e n t a t p r e s e n t t o r e s i s t t h e u n i l a t e r a l i m p o s i t i o n o f s i g n i f i c a n t c h a n g e s i n b a r g a i n i n g s t r u c t u r e . D e s p i t e t h e added b a r g a i n i n g power e m p l o y e r s a p p e a r t o have been g i v e n by t h e r e s t r i c t i o n o f s e c o n d a r y p i c k e t i n g , 138 u n i o n power has n o t been u n d u l y weakened. A work s t o p p a g e i n one s e c t o r c a n b r i n g f i n a n c i a l h a r d s h i p t o o t h e r i n d u s t r y s e c t o r s w i t h o u t s e c o n d a r y p i c k e t i n g . T h i s i s due t o t h e h i g h l y i n t e g r a t e d n a t u r e o f t h e f o r e s t p r o d u c t s i n d u s t r y . The change i n l e g i s l a t i o n w o u l d c a u s e an o b s e r v e r t o b e l i e v e t h a t an e m p l o y e r ca n now p r o t e c t t h o s e s i t e s u n i n v o l v e d i n t h e d i s p u t e f r o m e c o n o m i c damage. T h i s may n o t be t h e c a s e . I f e m p l o y e r s were t o be s u c c e s s f u l i n d e c e n t r a l i z i n g b a r g a i n i n g t o t h e company o r p l a n t l e v e l , i t i s l i k e l y t h a t one o f t h e t h r e e u n i o n s - most l i k e l y t h e IWA b e c a u s e o f i t s s i z e - w o u l d t a k e a l e a d e r s h i p r o l e i n e s t a b l i s h i n g t h e new p a t t e r n . The f i r m ( o r a s i n g l e s i t e o f t h a t f i r m ) l e a s t a b l e t o w i t h s t a n d a l o n g s t r i k e w o u l d be s i n g l e d o u t t o n e g o t i a t e t h e f i r s t a g r e e m e n t . I f an a g r e e m e n t was n o t r e a c h e d , t h e f i r m c o u l d be s t r u c k and l e g a l l y p i c k e t e d as a p r i m a r y s i t e . I f i t i s a p u l p m i l l t h a t i s s t r u c k , t h e company's s a w m i l l s and l o g g i n g o p e r a t i o n s w i l l c o n t i n u e t o o p e r a t e w i t h o u t b e i n g c l o s e d by s e c o n d a r y p i c k e t s . However, l o g g e r s e v e n t u a l l y g e t p u t on l a y o f f , c h i p s p i l e up, t h e company's s a w m i l l s do n o t r e c e i v e any r e v e n u e f r o m c h i p s a l e s , and an enormous c a p i t a l i n v e s t m e n t i n t h e p u l p m i l l s i t s i d l e . The s c e n a r i o i s s i m i l a r s h o u l d a s a w m i l l o f an i n t e g r a t e d f i r m be s t r u c k i n s t e a d . In t h i s c a s e n o t o n l y i s t h e s a w m i l l s t r u c k b u t i t c a n n o t p r o d u c e c h i p s f o r t h e company's p u l p m i l l s . L o g s must be b o u g h t and c h i p p e d t o make p u l p a t an added e x p e n s e . I f t h e m a r k e t f o r p u l p o r n e w s p r i n t i s p o o r 139 t h i s can make the d i f f e r e n c e between p r o f i t and l o s s to the f i r m . A d i s r u p t i o n at any p o i n t i n the chain of production can mean f i n a n c i a l hardship f o r the other two s e c t o r s . P a r a d o x i c a l l y , the new l e g i s l a t i o n can be construed as adding to the power of the unions. For years IWA sawmills and l o g g i n g o p e r a t i o n s have been the t a r g e t of pulp union p i c k e t s as the IWA has h i s t o r i c a l l y set the settlement p a t t e r n i n the i n d u s t r y . Often a f t e r IWA members have agreed to a new c o n t r a c t and have returned to work they have been prevented from working by pulp union secondary p i c k e t s , on s t r i k e f o r a b e t t e r agreement. The new l e g i s l a t i o n prevents t h i s and ends years of IWA f r u s t r a t i o n (Bennett 1989). Second, the containment of a labour d i s p u t e to one l o c a t i o n allows the unions to support s t r i k i n g members almost i n d e f i n i t e l y through s t r i k e b e n e f i t s deducted from the pay of working members. The f i n a l determinant of s u c c e s s f u l union r e s i s t a n c e to b a r g a i n i n g s t r u c t u r e change i n the i n d u s t r y i s the geographic d e l i n e a t i o n of IWA-Canada l o c a l s which encompass both loggers and sawmill workers who o f t e n work f o r more than one employer. This s t r u c t u r e makes i t d i f f i c u l t f o r s o l i d wood s e c t o r employers to i n i t i a t e p l a n t l e v e l b a r g a i n i n g . Plant l e v e l b a r g a i n i n g would have to be undertaken by p o r t i o n s of union l o c a l s or would have to be undertaken by s e v e r a l l o c a l s and s e v e r a l p l a n t s at one time. The complexity i n v o l v e d i n such n e g o t i a t i o n s would be s i g n i f i c a n t . 140 D. P r e s s u r e s from T h i r d P a r t i e s A n o t h e r o r g a n i z a t i o n a l f a c t o r which i s a c t i n g t o p r e s e r v e t h e c u r r e n t s t r u c t u r e of b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y i s p r e s s u r e from t h i r d p a r t i e s . T h i s i s c l e a r l y a d i f f i c u l t f a c t o r t o measure b e c a u s e i t a f f e c t s t h e a c t o r s ' c h o i c e s i m p l i c i t l y , not n e c e s s a r i l y by i t s e x p r e s s i o n . In s p i t e of i t s i n t a n g i b l e n a t u r e , t h i s i s a s i g n i f i c a n t d e t e r e n t t o t h e u n i l a t e r a l i m p o s i t i o n of a new s t r u c t u r e o f b a r g a i n i n g by t h e e m p l o y e r s i n t h i s i n d u s t r y . P r o v i n c e wide l a b o u r d i s p u t e s a r e not t o l e r a t e d f o r l o n g b e f o r e t h e p r o v i n c i a l government i n t e r v e n e s t o r e s o l v e them. H i s t o r i c a l l y d i s p u t e s have been t o l e r a t e d o n l y as l o n g as t h e damage t h e y i n f l i c t i s l i m i t e d t o t h o s e i m m e d i a t e l y i n v o l v e d . However, i n B r i t i s h C o l u m b i a t h e i m p a c t o f f o r e s t i n d u s t r y d i s p u t e s i s w i d e l y f e l t u s u a l l y w i t h i n a few weeks. Government i n t e r v e n t i o n i s a t l e a s t t h r e a t e n e d , i f not a c t u a l l y i m p l e m e n t e d , a t t h i s p o i n t . E r i c M i t t e r n d o r f e r ' s comment r e f e r r i n g t o t h e p u l p s e c t o r a l l u d e s t o t h i s government t e n d e n c y : "When we have our whole i n d u s t r y down t h e government g e t s r e a l l y n e r v o u s about i t and s u d d e n l y we're not d o i n g a l a b o u r d e a l any more, we're i n v o l v e d i n a major p o l i t i c a l a c t i o n . " ( M i t t e r n d o r f e r 1989). T h i s was t h e c a s e i n t h e 1986 f o r e s t r y d i s p u t e , t h e 1984 p u l p and paper l o c k o u t , and a s e r i e s o f s t r i k e s i n b o t h s e c t o r s t h r o u g h o u t th e p a s t t h r e e d e c a d e s . Government 141 m e d i a t o r s and s p e c i a l i n q u i r y c o m m i s s i o n s have become t h e norm f o r s e t t l i n g d i s p u t e s i n t h i s i n d u s t r y . A c o m p l e t e d e c e n t r a l i z a t i o n o f b a r g a i n i n g a g a i n s t t h e w i s h e s o f t h e u n i o n s w o u l d be h i g h l y u n l i k e l y i f t h e g o v e r n m e n t were t o become i n v o l v e d . A g o v e r n m e n t i n q u i r y i n t o t h e r e a s o n s d e c e n t r a l i z e d b a r g a i n i n g was needed i s a much more l i k e l y o u tcome. U n l e s s e m p l o y e r s were u n d e r g r e a t f i n a n c i a l p r e s s u r e t o t h e e x t e n t t h a t o p e r a t i o n s were b e i n g f o r c e d t o c l o s e , i t i s h i g h l y u n l i k e l y t h e g o v e r n m e n t w o u l d a l l o w e m p l o y e r s t o u n i l a t e r a l l y i m p l e m e n t s u c h a r a d i c a l c h a n g e . E. B u o y a n t P r o d u c t M a r k e t s The f i n a l r e a s o n f o r t h e l a c k o f s i g n i f i c a n t c hange t o b a r g a i n i n g s t r u c t u r e i n t h i s i n d u s t r y i s an e c o n o m i c one. S i n c e t h e l a s t r e c e s s i o n , m a r k e t s f o r p u l p and n e w s p r i n t have been and c o n t i n u e t o be u n u s u a l l y b u o y a n t . T h i s has been an o b s t a c l e t o t h e i n d u s t r y a c h i e v i n g t h e d e c e n t r a l i z a t i o n o f b a r g a i n i n g e m p l o y e r s b e l i e v e t h e y n e e d . M a r k e t p r i c e s f o r l u m b e r , a l t h o u g h u n e x c e p t i o n a l , r e m a i n a d e q u a t e . As p r e v i o u s l y m e n t i o n e d , i f e m p l o y e r s were t o a t t e m p t t o move t o d e c e n t r a l i z e d b a r g a i n i n g u n i l a t e r a l l y , t h e u n i o n s w o u l d be l i k e l y t o r e s i s t and t h e r e s u l t w o u l d u n d o u b t e d l y be s i g n i f i c a n t t i m e l o s t t o s t r i k e s . Down t i m e f o r e m p l o y e r s i n e i t h e r s e c t o r , b u t e s p e c i a l l y f o r t h o s e i n t h e p u l p s e c t o r , w o u l d be e n o r m o u s l y c o s t l y a t t h i s t i m e . 142 T h i s may be t h e most i m p o r t a n t d e t e r m i n a n t o f w h e t h e r c h a n g e s t o b a r g a i n i n g s t r u c t u r e s o r p a t t e r n s i n t h i s i n d u s t r y w i l l o c c u r . I n d u s t r y t r a d i t i o n , u n i o n s t r e n g t h d e r i v e d f r o m u n i o n and i n d u s t r y s t r u c t u r e , and t h i r d p a r t y p r e s s u r e a r e a r e l a t i v e l y s t a b l e s e t o f i n f l u e n c e s w h i c h a r e n o t l i k e l y t o change i n t h e n e a r f u t u r e . In c o n t r a s t , t h e s t r e n g t h o f p r o d u c t m a r k e t s i n t h i s i n d u s t r y , as was i n d i c a t e d i n C h a p t e r T h r e e , i s h i g h l y v a r i a b l e . An u n f a v o u r a b l e change i n t h e m a r k e t s f o r i n d u s t r y p r o d u c t s may make d e c e n t r a l i z e d b a r g a i n i n g a n e c e s s i t y f o r t h e s u r v i v a l o f many e m p l o y e r s . I f p r o f i t m a r g i n s a g a i n become r a z o r t h i n , f i r m s may need t o n e g o t i a t e c o l l e c t i v e a g r e e m e n t s t h a t a d e q u a t e l y r e f l e c t t h e i r i n d i v i d u a l i n v e s t m e n t s , c o s t s and t h e r e t u r n s o f t h e m a r k e t s i n w h i c h t h e y c o m p e t e . T h e r e f o r e , e ven i f t h e o t h e r c o n d i t i o n s w h i c h a r e c o n t r i b u t i n g t o t h e m a i n t e n a n c e o f t h e c u r r e n t s y s t e m r e m a i n u n c h a n g e d , a change i n t h i s f i n a l f a c t o r c o u l d l e a d t h e i n d u s t r y t o t h e d e c e n t r a l i z a t i o n o f b a r g a i n i n g s t r u c t u r e s and t o t h e b r e a k up o f i n d u s t r y p a t t e r n b a r g a i n i n g . I V . F u t u r e P r o g n o s i s A. I n t r o d u c t i o n A p r e d i c t i o n o f t h e f u t u r e s t r u c t u r e and p a t t e r n o f b a r g a i n i n g i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y i s d i f f i c u l t t o make. The most l i k e l y c a t a l y s t f o r change i s an e c o n o m i c d o w n t u r n i n i n d u s t r y p r o d u c t m a r k e t s . 1 4 3 F o r t h e p a s t s e v e r a l y e a r s , f i r m s i n b o t h t h e p u l p and s o l i d wood s e c t o r s o f t h e f o r e s t p r o d u c t s i n d u s t r y have a t t e m p t e d t o move away from commodity based m a r k e t s w h i c h , i n t h e p a s t have l e f t them e x p o s e d t o c y c l e s o f boom and b u s t . Both t h e p r o v i n c e ' s p u l p and paper p r o d u c e r s and C o a s t a l lumber p r o d u c e r s have made t h i s change t h e i r p r i m a r y s t r a t e g i c o b j e c t i v e . N o r t h e r n I n t e r i o r lumber p r o d u c e r s however, a r e s t i l l v e r y much r e l i a n t on t h e U.S. market f o r d i m e n s i o n lumber. However, even t a k i n g t h e s e p r o d u c t mix c hanges i n t o c o n s i d e r a t i o n , t h e i n d u s t r y w i l l s t i l l be a f f e c t e d t o some d e g r e e by p r o d u c t market c o n d i t i o n s . Two b a s i c s c e n a r i o s f o r t h e n e a r f u t u r e a p pear most l i k e l y . One i s p r e d i c a t e d on c o n t i n u e d b u o y a n t p r o d u c t m a r k e t s , t h e o t h e r on an e v e n t u a l market downturn. B. O p t i m i s t i c S c e n a r i o No s i g n i f i c a n t c hanges i n t h e s t r u c t u r e of b a r g a i n i n g i n t h e f o r e s t p r o d u c t s i n d u s t r y o f B r i t i s h C o l u m b i a a r e e x p e c t e d as l o n g as m a r k e t s r e m a i n p r o f i t a b l e . D e s p i t e e m p l o y e r s ' d e s i r e s f o r more l o c a l c o n t r o l o v e r work r u l e s and wage i s s u e s i t i s u n l i k e l y t h a t a l l n e g o t i a t i n g w i l l soon be p a s s e d on t o t h i s l e v e l . A more l i k e l y outcome i s t h e f o r m a l i z a t i o n o f f l e x i b i l i t y i n t h e p r o v i n c e ' s m a s t e r agreement and a c o n t i n u e d e f f o r t t o make wage r a t e s i n a l l r e g i o n s and s e c t o r s a p p e a r i d e n t i c a l even though a v e r a g e c o s t s do i n f a c t d i f f e r among s e c t o r s . F l e x i b i l i t y may be i n c r e a s e d by h a v i n g wages and b e n e f i t s n e g o t i a t e d a t t h e 144 m a s t e r a g r e e m e n t l e v e l w h i l e l e a v i n g i s s u e s s u c h as work r u l e s , f l e x i b i l i t y i n s h i f t s c h e d u l i n g , and c o n t r a c t i n g o u t t o be n e g o t i a t e d a t t h e p l a n t o r company l e v e l . The m a i n t e n a n c e o f what a p p e a r t o be i d e n t i c a l wage l e v e l s among r e g i o n s and s e c t o r s i s a l r e a d y b e i n g u n d e r t a k e n . A l t h o u g h base r a t e s and t r a d e r a t e s a r o u n d t h e p r o v i n c e a r e i d e n t i c a l , a v e r a g e c o s t s f o r f i r m s c a n d i f f e r q u i t e r e m a r k a b l y . By k e e p i n g more e m p l o y e e s a t l o w e r wage l e v e l s and u s i n g d i f f e r e n t c o m b i n a t i o n s o f s k i l l s , f i r m s c a n a l t e r t h e i r c o s t s s u b s t a n t i a l l y . A v e r a g e l a b o u r c o s t s i n t h e s o l i d wood s e c t o r a r e a l r e a d y b e l o w t h o s e i n t h e p u l p s e c t o r and a v e r a g e l a b o u r c o s t s i n p l y w o o d m i l l s a r e a b o u t f o u r d o l l a r s an h o u r b e l o w t h o s e f o u n d i n t h e r e s t o f t h e s o l i d wood s e c t o r ( B e n n e t t 1 9 8 9 ) . B e c a u s e o f i t s p o l i t i c a l i m p o r t a n c e t o t h e u n i o n s i n v o l v e d , t h e a p p e a r a n c e o f wage p a r i t y b e t w e e n s e c t o r s and r e g i o n s c a n and w i l l be m a i n t a i n e d a t l e a s t f o r t h e n e x t few r o u n d s o f b a r g a i n i n g . A l i k e l y outcome f o r t h o s e s m a l l e r f i r m s who c a n no l o n g e r a f f o r d t o o p e r a t e u n d e r t h e m a s t e r a g r e e m e n t i s t h a t t h e y w i l l be b o u g h t o u t by one o f t h e l a r g e i n t e g r a t e d f i r m s . Over t i m e i t i s e x p e c t e d t h a t t h e B.C. f o r e s t p r o d u c t s i n d u s t r y w i l l become more h e a v i l y c o n c e n t r a t e d . An i n n o v a t i o n w h i c h may be s e e n i n t h e n e a r f u t u r e i s t h e s e p a r a t i o n o f a g r e e m e n t s w h i c h w i l l a p p l y t o v a r i o u s s e c t o r s w i t h i n t h e s o l i d wood s e c t o r . The s e p a r a t i o n most l i k e l y w i l l n o t d i f f e r e n t i a t e s e c t o r s on t h e b a s i s o f base 145 wages b u t i n s t e a d w i l l a l l o w v a r y i n g l e v e l s o f work f l e x i b i l i t y and work s c h e d u l i n g . However, i n o r d e r f o r t h i s t o be a c c o m p l i s h e d c h a n g e s must be made t o F I R ' s c o n s t i t u t i o n . P r e s e n t l y , i n o r d e r t o c o n t i n u e t o be a member i n good s t a n d i n g o f t h i s e m p l o y e r a s s o c i a t i o n , t h e f i r m must be a s i g n a t o r t o t h e FIR-IWA m a s t e r c o l l e c t i v e a g r e e m e n t (Munro 1 9 8 9 ) . Some members o f FIR a r e i n t h e r e m a n u f a c t u r i n g , p l y w o o d , and o t h e r s u b s i d i a r y s e c t o r s o f t h e s o l i d wood s i d e o f t h e i n d u s t r y . In o r d e r f o r them t o be g r a n t e d l e a v e t o s i g n a new s e c t o r s p e c i f i c a g r e e m e n t t o d a y , t h e y w o u l d have t o g i v e up t h e i r m e m bership i n F I R . Many who w o u l d b e n e f i t f r o m s u c h a new t y p e o f c o n t r a c t may be u n w i l l i n g t o s i g n b e c a u s e o f t h e l a c k o f p r o t e c t i o n d e a l i n g s i n g l y w i t h o u t t h e e m p l o y e r a s s o c i a t i o n . C. P e s s i m i s t i c S c e n a r i o The b r e a k up o f FIR o r CONIFER i s u n l i k e l y e ven i f p r o d u c t m a r k e t s w o r s e n c o n s i d e r a b l y . As l o n g as a l a r g e number o f s i n g l e l o c a t i o n e m p l o y e r s who must b a r g a i n c o l l e c t i v e l y w i t h t h e p o w e r f u l IWA-Canada r e m a i n i n t h e i n d u s t r y , t h e r e i s l i k e l y t o be e m p l o y e r a s s o c i a t i o n b a r g a i n i n g i n t h i s i n d u s t r y ( B e n n e t t 1 9 8 9 ) . I f p r o d u c t m a r k e t s w o r s e n a number o f c h a n g e s i n i n d u s t r y b a r g a i n i n g a r e p o s s i b l e : an end t o a s s o c i a t i o n b a r g a i n i n g by t h e p r o v i n c e ' s p u l p e m p l o y e r s , a b r e a k i n t h e P P I R B - F I R b a r g a i n i n g p a t t e r n , and an end t o t h e C o a s t - I n t e r i o r s o l i d wood p a t t e r n . 146 A s m a l l d o w n t u r n i n p u l p and p a p e r m a r k e t s w i l l l i k e l y d e c r e a s e t h e c u r r e n t p r e s s u r e f o r a b r e a k i n t h e p u l p / s o l i d wood i n d u s t r y p a t t e r n by e q u a l i z i n g t h e a b i l i t y o f e m p l o y e r s i n t h e s e two s e c t o r s t o pay wage and b e n e f i t i n c r e a s e s . H owever, a s e v e r e d o w n t u r n i n p u l p m a r k e t s may l e a d t o a d e c e n t r a l i z a t i o n o f b a r g a i n i n g among P u l p B u r e a u members t o t h e f i r m o r e n t e r p r i s e l e v e l as i n d i v i d u a l f i r m s s t r u g g l e t o r e m a i n p r o f i t a b l e and s e r v e d i f f e r i n g n i c h e m a r k e t s ( M i t t e r n d o r f e r 1 9 8 9 ) . S h o u l d t h e l a t t e r o c c u r , i t i s o b v i o u s t h a t t h e p a t t e r n b e t w e e n p u l p and s o l i d wood s e c t o r a g r e e m e n t s w o u l d be b r o k e n s i n c e t h e r e w o u l d no l o n g e r be a p u l p " i n d u s t r y " a g r e e m e n t w h i c h s o l i d wood e m p l o y e r s c o u l d m a t c h . A d o w n t u r n i n d i m e n s i o n l u m b e r m a r k e t s i s a n o t h e r l i k e l y f u t u r e o c c u r r e n c e b a s e d on h i s t o r i c a l e v i d e n c e . S h o u l d t h i s o c c u r i n t h e n e a r f u t u r e , t h e p a t t e r n b e t ween FIR and CONIFER w i l l be d i f f i c u l t t o m a i n t a i n b e c a u s e o f t h e N o r t h e r n I n t e r i o r ' s c o n t i n u e d r e l i a n c e on t h i s p r o d u c t m a r k e t . C o a s t e m p l o y e r s w o u l d l i k e l y n o t be as h a r d h i t by a down t u r n i n d i m e n s i o n l u m b e r p r i c e s as much o f t h e i r p r o d u c t i s d i v e r s i f i e d and s o l d i n v a r i o u s o f f s h o r e m a r k e t s n o t s u b j e c t t o t h e same c y c l e s as t h e A m e r i c a n d i m e n s i o n l u m b e r m a r k e t . S h o u l d e m p l o y e r s s e e k t o b r e a k t h e p a t t e r n , l a b o u r s t r i f e w i l l be t h e p r o b a b l e r e s u l t (Munro 1 9 8 9 ) . B u t , i f l e f t w i t h no a l t e r n a t i v e , e m p l o y e r s w i l l t o l e r a t e l a b o u r d i s p u t e s u n t i l t h e g o v e r n m e n t i n t e r v e n e s o r u n t i l an 147 i n d u s t r y s h a k e o u t has o c c u r r e d , f u r t h e r c e n t r a l i z i n g c o n t r o l o f t h e N o r t h e r n I n t e r i o r l u m b e r i n d u s t r y . V. Summary and C o n c l u s i o n T h i s c h a p t e r has o u t l i n e d t h e o r g a n i z a t i o n a l and e n v i r o n m e n t a l f a c t o r s r e s p o n s i b l e f o r t h e modest amount o f c h ange i n b a r g a i n i n g s t r u c t u r e and i n t h e p a t t e r n o f b a r g a i n i n g f o u n d i n B.C.'s f o r e s t p r o d u c t s i n d u s t r y . T r a d i t i o n and p a s t p r a c t i c e , t h e e v e n l y m a tched power o f t h e u n i o n s and e m p l o y e r s , t h i r d p a r t y p r e s s u r e , and a b u o y a n t p r o d u c t m a r k e t have a l l c o n t r i b u t e d t o t h e m i n i m a l change o b s e r v e d i n b a r g a i n i n g s t r u c t u r e and b a r g a i n i n g p a t t e r n s , d e s p i t e t h e o t h e r f a c t o r s t h a t w o u l d have p r e d i c t e d d e c e n t r a l i z a t i o n . The c a s e o f b a r g a i n i n g i n B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y i s i n t e r e s t i n g b e c a u s e o f t h e s t r e n g t h o f t h e o r g a n i z a t i o n a l f a c t o r s i n f l u e n c i n g b a r g a i n i n g s t r u c t u r e c h o i c e s . At p r e s e n t t h e s e o r g a n i z a t i o n a l f o r c e s a r e s u f f i c i e n t l y s t r o n g t o c o u n t e r b a l a n c e t h e c h a n g i n g e n v i r o n m e n t a l p r e s s u r e s w h i c h have c a u s e d many e m p l o y e r s t o d e s i r e t h e d e c e n t r a l i z a t i o n o f i n d u s t r y b a r g a i n i n g . S i g n i f i c a n t c h a n g e s t o i n d u s t r y b a r g a i n i n g s t r u c t u r e s o r p a t t e r n s a r e n o t e x p e c t e d u n t i l e n v i r o n m e n t a l f o r c e s become p o w e r f u l enough t o overcome s u b s t a n t i a l o r g a n i z a t i o n a l p r e s s u r e s p r e s e r v i n g t h e s t a t u s quo. The c h a p t e r w h i c h f o l l o w s o u t l i n e s a r e a s o f f u t u r e r e s e a r c h w h i c h may f u r t h e r i l l u m i n a t e t h e i n t e r a c t i o n 148 between environmental and o r g a n i z a t i o n a l f o r c e s b a r g a i n i n g s t r u c t u r e . 149 CHAPTER SEVEN: RECOMMENDATIONS FOR FUTURE RESEARCH I . I n t r o d u c t i o n The o b j e c t i v e o f t h i s s t u d y has been t o d e t e r m i n e w h e t h e r s i g n i f i c a n t c h a n g e s i n t h e b a r g a i n i n g s t r u c t u r e o f B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y have o c c u r r e d o v e r t h e p a s t d e c a d e . D e s p i t e what have been r e l a t i v e l y d r a m a t i c e n v i r o n m e n t a l c h a n g e s d u r i n g t h i s p e r i o d , l i t t l e c h a nge i n b a r g a i n i n g p a t t e r n s o r s t r u c t u r e s has o c c u r r e d . The s t r e n g t h o f s e v e r a l o r g a n i z a t i o n a l f a c t o r s a r e c r e d i t e d w i t h p r e s e r v i n g t h e s t a t u s quo i n t h i s i n d u s t r y . D e s p i t e t h i s f i n d i n g , t h e c o n c l u s i o n s o f t h i s work c a n n o t be w i d e l y g e n e r a l i z e d t o o t h e r i n d u s t r i e s o r o t h e r l o c a t i o n s . The r e l a t i o n s h i p s among t h e s e e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s a r e c o m p l e x and n o t e a s i l y s p e c i f i e d o r p r e d i c t e d . The s t u d y o f b a r g a i n i n g s t r u c t u r e i s a d i f f i c u l t one b e c a u s e o f t h e number o f v a r i a b l e s t h a t i n t e r v e n e b e t w e e n t h e e n v i r o n m e n t , b a r g a i n i n g s t r u c t u r e and b a r g a i n i n g o u t c o m e s ( P e r r y and A n g l e 1 9 8 1 ) . The c o m p l e x i t y o f t h e r e l a t i o n s h i p s among t h e s e v a r i a b l e s makes i t d i f f i c u l t t o draw g e n e r a l i z a b l e c o n c l u s i o n s f r o m any one s t u d y . The p u r p o s e o f t h i s f i n a l c h a p t e r i s t o i n d i c a t e a r e a s o f p o s s i b l e f u r t h e r r e s e a r c h , t h e p u r p o s e o f w h i c h i s t o b u i l d a r o b u s t t h e o r y d e t a i l i n g t h e i n t e r a c t i o n s o f v a r i o u s e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s w h i c h 150 d e t e r m i n e t h e b a r g a i n i n g s t r u c t u r e c h o s e n by t h e a c t o r s i n an i n d u s t r i a l r e l a t i o n s s y s t e m . I I . R e c o m m e n d a t i o n s I d e a l l y , s u b s e q u e n t s t u d i e s s h o u l d be b o t h l o n g i t u d i n a l i n s c o p e ( s t u d y i n g a p a r t i c u l a r b a r g a i n i n g r e l a t i o n s h i p o r s t r u c t u r e o v e r t i m e ) as w e l l as c r o s s - s e c t i o n a l ( s t u d y i n g a number o f b a r g a i n i n g r e l a t i o n s h i p s o r s t r u c t u r e s a t a s p e c i f i c t i m e ) . The b e n e f i t o f l o n g i t u d i n a l s t u d i e s i s t h a t c h a n g e s i n b a r g a i n i n g s t r u c t u r e o v e r t i m e may be l i n k e d t o c h a n g e s i n t h e e n v i r o n m e n t . C r o s s - s e c t i o n a l s t u d i e s a l l o w t h e r e s e a r c h e r t o o b s e r v e d i f f e r e n t b a r g a i n i n g s t r u c t u r e r e s p o n s e s by p a r t i e s s u b j e c t t o t h e same e n v i r o n m e n t a l f o r c e s . C r o s s - s e c t i o n a l s t u d i e s t h u s a l l o w t h e v a r i o u s o r g a n i z a t i o n a l f a c t o r s w h i c h i n f l u e n c e t h e p a r t i e s ' c h o i c e s t o be i s o l a t e d and i d e n t i f i e d . I n a d d i t i o n , f u t u r e s t u d i e s s h o u l d a t t e m p t t o i n c l u d e b o t h q u a n t i t a t i v e and q u a l i t a t i v e i n f o r m a t i o n a b o u t t h e e n v i r o n m e n t a l and o r g a n i z a t i o n a l f a c t o r s i n f l u e n c i n g t h e a c t o r s ' c h o i c e s o f b a r g a i n i n g s t r u c t u r e . To e n s u r e t h a t a c o m p l e t e p i c t u r e o f e a c h c a s e s t u d i e d i s a s s e m b l e d , r e s e a r c h e r s s h o u l d d e t e r m i n e t h e h i s t o r i c a l r e l a t i o n s among t h e p a r t i e s and u n d e r s t a n d b o t h t h e c o r p o r a t e c u l t u r e and management and u n i o n p h i l o s o p h i e s . G i v e n t h e s e r e q u i r e m e n t s s e v e r a l a v e n u e s o f r e s e a r c h p r e s e n t t h e m s e l v e s as o u t g r o w t h s o f t h i s s t u d y . 151 A. L o n g i t u d i n a l S t u d i e s 1. C o n t i n u e B.C. F o r e s t I n d u s t r y L o n g i t u d i n a l S t u d y C o n t i n u e d s t u d y o f b a r g a i n i n g i n B r i t i s h C o l u m b i a ' s f o r e s t p r o d u c t s i n d u s t r y w i l l be v a l u a b l e . F u t u r e changes i n b a r g a i n i n g p a t t e r n s , e m p l o y e r a s s o c i a t i o n membership, and p a r t i c i p a t i o n i n r e g i o n a l a s s o c i a t i o n b a r g a i n i n g w i l l add t o the body o f knowledge c o l l e c t e d t o d a t e . In an i n d u s t r y c o m p r i s e d o f b o t h l a r g e and s m a l l e m p l o y e r s , whose employees a r e r e p r e s e n t e d by t h r e e u n i o n s w i t h d i f f e r e n t h i s t o r i e s , p h i l o s o p h i e s , and o r g a n i z a t i o n a l s t r u c t u r e s , and i n which i n c r e a s i n g p r o d u c t and market d i v e r s i f i c a t i o n i s o c c u r r i n g , one may e x p e c t d i f f e r e n t i a l r a t e s o f change i n b a r g a i n i n g s t r u c t u r e s and p a t t e r n s . As i n d u s t r y d i v e r s i t y i n c r e a s e s , c hanges i n b a r g a i n i n g s t r u c t u r e may be e x p e c t e d t o o c c u r i n some c i r c u m s t a n c e s and not i n o t h e r s . In o b s e r v i n g change t h a t i s i r r e g u l a r t h e r e s e a r c h e r w i l l be a b l e t o i d e n t i f y t h o s e f a c t o r s p r e c i p i t a t i n g t h e change. 2. The S t u d y o f o t h e r H i g h l y C e n t r a l i z e d B a r g a i n i n g R e l a t i o n s h i p s In o r d e r t o g e n e r a l i z e beyond B r i t i s h C o l u m b i a and away from t h e f o r e s t p r o d u c t s i n d u s t r y i n p a r t i c u l a r , r e s e a r c h e r s must b e g i n t o s t u d y o t h e r b a r g a i n i n g r e l a t i o n s h i p s i n o t h e r s e t t i n g s and i n o t h e r i n d u s t r i e s . H o l d i n g some v a r i a b l e s c o n s t a n t s u c h as t h e d e g r e e o f e n v i r o n m e n t a l change, t h e l e v e l o f economic p r e s s u r e put on e m p l o y e r s , or t h e i n i t i a l d e g r e e of b a r g a i n i n g c e n t r a l i z a t i o n i n t h e i n d u s t r y w i l l be i m p o r t a n t . 152 L o n g i t u d i n a l s t u d i e s o f t h e s e r e l a t i o n s h i p s , much l i k e t h e s t u d y c o m p l e t e d h e r e on t h e f o r e s t p r o d u c t s i n d u s t r y o f B.C., w i l l p r o v e most e n l i g h t e n i n g . I t i s o n l y o v e r t i m e t h a t d i f f e r e n c e s w i l l be d e t e c t e d and t h a t r e a s o n s f o r t h e d i f f e r e n c e s c a n be i s o l a t e d . C a s e s i n w h i c h t h e c hange i n b a r g a i n i n g s t r u c t u r e o b s e r v e d goes f r o m l e s s c e n t r a l i z e d t o more h i g h l y c e n t r a l i z e d w o u l d a l s o p r o v e i n f o r m a t i v e . The i n f o r m a t i o n g l e a n e d by s u c h s t u d i e s may add new and d i f f e r e n t i n f o r m a t i o n t o t h e f i e l d t h a n more s t u d i e s w h i c h l o o k o n l y a t t h e o p p o s i t e p r o c e s s - t h e move f r o m more t o l e s s c e n t r a l i z e d s t r u c t u r e s . B. C r o s s - S e c t i o n a l S t u d i e s Added i n s i g h t i n t o t h e d e t e r m i n a n t s o f b a r g a i n i n g s t r u c t u r e c h a n g e may be a c h i e v e d by u n d e r t a k i n g c r o s s - s e c t i o n a l s t u d i e s o f b a r g a i n i n g s t r u c t u r e s i n use i n t h e f o r e s t p r o d u c t s i n d u s t r i e s o f o t h e r C a n a d i a n p r o v i n c e s and i n o t h e r c o u n t r i e s . The U n i t e d S t a t e s i s an o b v i o u s c a n d i d a t e f o r c o m p a r i s o n . Many i n d u s t r y p r o d u c t s and m a r k e t s a r e i d e n t i c a l , t h e i n d u s t r i e s on e i t h e r s i d e o f t h e b o r d e r have s i m i l a r h i s t o r i e s and t h e IWA-Canada and t h e C a n a d i a n P a p e r w o r k e r s ' U n i o n began as t h e C a n a d i a n arms o f U.S. b a s e d i n t e r n a t i o n a l u n i o n s t h a t c o n t i n u e t o r e p r e s e n t w o r k e r s i n t h e U.S. t o d a y . E n v i r o n m e n t a l f a c t o r s i m p a c t i n g t h e s e i n d u s t r i e s a r e l i k e l y t o be v e r y s i m i l a r . S u ch a c r o s s - s e c t i o n a l s t u d y p r o v i d e s an o p p o r t u n i t y f o r c o m p a r i n g t h e e f f e c t s o f b o t h s m a l l and l a r g e 1 5 3 d i f f e r e n c e s i n o r g a n i z a t i o n a l f a c t o r s . A c r o s s - s e c t i o n a l s t u d y o f C a n a d i a n f o r e s t p r o d u c t s i n d u s t r i e s w o u l d p r o v i d e an o p p o r t u n i t y t o compare v e r y s i m i l a r i n d u s t r i e s . The l a b o u r l e g i s l a t i o n a c r o s s Canada r e m a i n s f a i r l y homogeneous, e m p l o y e r s a t t i t u d e s d i f f e r l i t t l e , and g o v e r n m e n t p o l i c y t o w a r d s l a b o u r m a t t e r s r e m a i n s r e l a t i v e l y f i x e d a c r o s s t h e c o u n t r y . O t h e r v a r i a b l e s w i l l d i f f e r : t h e e m p l o y e r s , w h e t h e r o r n o t t h e y b a r g a i n i n a s s o c i a t i o n s , t h e s i z e and p r o f i t a b i l i t y o f t h e f i r m s , t h e h i s t o r y o f t h e b a r g a i n i n g r e l a t i o n s h i p s , and t h e a t t i t u d e s and p h i l o s o p h i e s o f t h e u n i o n s r e p r e s e n t i n g e m p l o y e e s i n t h e s e i n d u s t r i e s . In c o n t r a s t , t h e U.S. p r o v i d e s an a l m o s t c o m p l e t e c o n t r a s t i n o r g a n i z a t i o n a l f a c t o r s w h i c h a f f e c t t h e d e g r e e o f c hange i n b a r g a i n i n g s t r u c t u r e i n t h i s i n d u s t r y . L a b o u r l e g i s l a t i o n , e m p l o y e r a t t i t u d e s , t h e p r e s e n c e o f a s i z e a b l e n o n - u n i o n s e c t o r and g o v e r n m e n t p o l i c y i n l a b o u r m a t t e r s a l l d i f f e r q u i t e s i g n i f i c a n t l y f r o m t h e i r C a n a d i a n c o u n t e r p a r t s . I I I . Summary and C o n c l u s i o n I t i s c l e a r t h a t t h e p r e s e n t s t u d y o n l y b e g i n s t o u n d e r s t a n d c h a n g e s i n b a r g a i n i n g s t r u c t u r e i n one i n d u s t r y i n one e n v i r o n m e n t a t a p a r t i c u l a r p o i n t i n t i m e . F u r t h e r r e s e a r c h must be done t o u n d e r s t a n d more t h o r o u g h l y t h e v a r i o u s i m p a c t s o f e n v i r o n m e n t a l and o r g a n i z a t i o n a l f o r c e s on b a r g a i n i n g s t r u c t u r e . I t i s hoped t h a t t h i s p a p e r w i l l p r o v i d e t h e s t a r t i n g p o i n t f o r s u b s e q u e n t work o f t h i s k i n d . 154 REFERENCES A n d e r s o n , J.C. 1982. "The S t r u c t u r e o f C o l l e c t i v e B a r g a i n i n g . " I n J.C. A n d e r s o n and M. G u n d e r s o n , e d s , Union-Management R e l a t i o n s i n Canada. Don M i l l s , O n t a r i o : A d d i s o n - W e s l e y . pp. 173-195. A n d e r s o n , J . C , M. G u n d e r s o n , and A. Ponak. 1989. "Framew o r k s f o r t h e S t u d y o f I n d u s t r i a l R e l a t i o n s . " In J . A n d e r s o n , M. G u n d e r s o n , and A. P o n a k , e d s , U n i o n - Management R e l a t i o n s i n Ca n a d a . 2nd e d . 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