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Bargaining structure in a decade of environmental change : the case of the B.C. forest products industry Frost, Ann C. 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 B.Comm., U n i v e r s i t y  C.  Frost  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 in  THE Department  We  FACULTY OF GRADUATE STUDIES  o f Commerce and B u s i n e s s  accept to  THE  this  thesis  the required  as c o n f o r m i n g standard  UNIVERSITY OF BRITISH December  Ann  Administration  1989  C. F r o s t ,  1989  COLUMBIA  In  presenting  degree  this  at the  thesis  in  University of  partial  fulfilment  of  of  department  this or  thesis for by  his  or  requirements  British Columbia, I agree that the  freely available for reference and study. I further copying  the  representatives.  an advanced  Library shall make  it  agree that permission for extensive  scholarly purposes may be her  for  It  is  granted  by the  understood  that  head of copying  my 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  forest  Columbia's twenty a  economy,  percent  significant  government  of  by  pattern and  sectors,  pulp  system.  Because  centralized  specific markets  change  between i n the  These bargaining  and  solid  put  wood.  changes  and  more  exports  has  main  Recent  and  the  industry environmental  pressure  control  for  been  structures  on  e m p l o y e r s now  local  about  and  regions,  t h e two  considerable  wide  trends  globalization  changes  disputes  between  British  accounting  industry  t h e two  and  and  bargaining  for decentralization  exchange  technological  between  these  of world  The  currency  have  the  of  indirectly  province's  centralized  paper  of  the  part  the  desire  over  current less  terms  of  agreement.  Pressures  of  highly  structures  collective  combination  of  or  workforce;  Historically,  the Coast,  however,  changes.  province's  bargaining  changes  the  the  and  i s a major  employing d i r e c t l y  revenues.  Interior  industry  percentage  characterized formal  products  and  and  the  are examples  regions  the and  resulted  industry  of markets,  rates,  include  have  increased  the  firms,  and  volatility  rate  former.  diversification two  a  specific  increasing  of  from  of  of  Industry products  major  and  labour  1980s.  changes i n the  however, forest  to date  have  had  products  occurred,  but  they  Employers  i n the p r o v i n c e ' s  have pulp  little  industry.  not and  been  effect  upon  Some  changes  have  significant.  paper  sector  deaccredited  their this  employer change,  jointly,  as  bargaining i t has  second  change  Bureau  and  run  note  role  many  the  industry  years  Despite changes* this  there  has  industry.  industrial  Several  force  are  pressures  of  ability  to  in industry  product  pressures inertial  system  industry  markets  force  pulp  that  threats  tradition  and  unilateral  preventing  forces  past  the  in  employers  in  status  industry third  the  forcing  economic  until  t o overcome  significant  and  bargaining.  from  Not  will  industry's  practice,  sectors.  forces  bargaining  include  i n the  organizational  of  government  changes  enough  become  environmental  i s the  are great  IWA.  first.  in  i n the  structure  f o r change  of  the  would  change  bargaining two  and  change  of  are  environmental  one  are preventing  change  settled  forces  and  bodies  rounds  are preserving  forces  Pulp  of  what  have  little  are  two  final  two  the  association.  unions  last  Organizational  resist  The  significant  there  The  separation  unions  relatively  (specifically  environmental  change  pulp  Clearly  structures.  the  In t h e  decades.  these  negotiated  who  done  employer  Chairman,  Despite  been  between  IWA  t o be  which  ties  wood  has  four  the  organizational  intervention),  The  been  of  1985.  rounds  between  the  appear  identified  bargaining  the  two  sectors.  settlement.  relations  quo.  unions'  i n t h e two  however* what  solid  to encourage  i t was  i n March  f o r the past  a common  reversal  wide  negotiations,  party  by  last  severing  Coastal  outcomes  For  in  the  independently  i s the  done  i s the  overseen  bargaining  association  i n the  been  noted  FIR,  Previously now  bargaining  health  the these  change  occur  i v in  the  bargaining  products  industry.  structure  and  patterns  of  the  B.C.  forest  V  T A B L E OF  CONTENTS  Abstract L i s t of T a b l e s L i s t of F i g u r e s Acknowledgement Chapter  i i viii ix x  One  Introduction Chapter  1  Two  Literature  Review  I.  Introduction A. Bargaining Structure Defined B. Types of B a r g a i n i n g S t r u c t u r e  13 13 17  II.  T h e o r e t i c a l Determinants of 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 P o w e r 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 of Bargaining Structure 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 of Bargaining Structure  19 19  III. A. B. IV.  Empirical Evidence S t a t i s t i c a l Analyses British  Summary a n d  Columbia  Case  24 26 26  Studies  29  Conclusion  Chapter Three The I n d u s t r i a l R e l a t i o n s Products Industry  19  Environment  37  of  the  B.C.  Forest  I.  Introduction  40  II.  The E c o n o m i c E n v i r o n m e n t A. A D e s c r i p t i o n of the I n d u s t r y B. The D e p e n d e n c e o f B.C. on t h e Products Industry  41 41  III.  The A. B.  IV.  Forest  Competitive Environment Industry Structure Degree of C o m p e t i t i o n - Timber and P r o d u c t M a r k e t s  The P o l i t i c a l E n v i r o n m e n t A. Labour R e l a t i o n s Climate B. Government I n t e r v e n t i o n i n F o r e s t Products Industry Industrial Relations  43 45 45 53 54 54 57  vi V.  The A. B.  Legal Environment Labour L e g i s l a t i o n i n B r i t i s h Columbia R e g a r d i n g A c c r e d i t a t i o n of Employer Associations Regarding P i c k e t i n g  C. VI. Chapter  S u m m a r y and  Conclusion  61 61 61 68 74  Four  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 a n d T h e i r Bargaining Structure Preferences i n the Pre-1980s Environment I.  Introduction  77  II.  The U n i o n s A. The IWA B. The P u l p U n i o n s : t h e PPWC a n d t h e CPU 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  78 78 80 83  III. A. B. C. D. IV.  V. Chapter  The E m p l o y e r A s s o c i a t i o n s FIR CONIFER PPIRB Their Bargaining Relationships  85 86 88 89 90  The T r a d i t i o n a l S t r u c t u r e o f Bargaining 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 the Advantages to the P a r t i e s A. The Move f r o m A s s o c i a t i o n W i d e t o I n d u s t r y Wide B a r g a i n i n g B. Advantages to Employers C. Advantages to the Unions D. Reasons f o r the Success of A s s o c i a t i o n Bargaining Summary and  Conclusion  93 93 95 97 98 99  Five  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 i n B.C.'s F o r e s t P r o d u c t s Industry  Structure  I.  Introduction  101  II.  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 a n d Increasing International Competition B. F l u c t u a t i o n i n Exchange Rates C. Changes i n T e c h n o l o g y D. Recession i n the E a r l y 1980s  102  III. A.  I n d u s t r y S p e c i f i c Changes Changes i n P r o d u c t Markets  102 104 105 108 110 110  vii B. C. IV.  and P u l p  The U n i o n s '  Summary  III.  118 119 121 123  and C o n c l u s i o n  Introduction Changes That A. Changes i B. Changes i C. Changes i  112 114  Shifts  Preferences  Chapter 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 i n B.C.'s F o r e s t P r o d u c t s Industry I. II.  Markets  The R e s u l t s o f E n v i r o n m e n t a l Change in Bargaining Structure Preferences A. The Need f o r F l e x i b i l i t y B. Diverging Employer I n t e r e s t s C.  V.  D i v e r g e n c e o f Lumber Labour Disputes  124  Structure  Have O c c u r r e d t o D a t e n Formal S t r u c t u r e n Informal Structure n Pattern Bargaining  126 127 127 129 130  R e a s o n s F o r L i t t l e Change The R e l a t i o n s h i p B e t w e e n Environmental a n d 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 Products Industry B. Industry Tradition C. Union 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 D. P r e s s u r e s From T h i r d P a r t i e s E. Buoyant Product Markets  132  137 140 141  Future Prognosis A. Introduction B. Optimistic Scenario  143 143 143  C.  145  A.  IV.  V.  P e s s i m i s t i c Scenario  Summary  Chapter Seven Recommendations  and C o n c l u s i o n  f o r Future  132 134  147  Research  I. Introduction II. Recommendations III. Summary and C o n c l u s i o n  149 150 153  References  154  viii L I S T OF Table  It  B.C.  Table  l i t Current  Table  III:  Table  IV:  Table  V:  Table  VI:  Table  VII:  TABLES  Bargaining Structure Employer  Associations  D e a c c r e d i t e d Employer Lumber  B.C.'s B.C.'s  Labour  Ten  Pulp  Lumber  and P a p e r  Disputes  5  Bargaining Associations  P r o d u c t i o n - Coast Top  4  and  Interior  Producers Producers  i n B.C.  1958-1985  7 46 51 52 56  ix  LIST Figure  1:  OF  FIGURES  B a r g a i n i n g S t r u c t u r e and Bargaining System  the  Collective 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 guidance throughout 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 to s u p e r v i s e at the b e s t of t i m e s . I t has b e e n made e v e n m o r e 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 n t h s . W i t h o u t her h e l p t h i s paper would n o t h a v e b e e n c o m p l e t e d as e a s i l y nor as q u i c k l y . Her suggestions, 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 appreciated. 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 w o r k . L e n Snow o f t h e PPWC, B r i a n P a y n e o f t h e CPU, and J a c k M u n r o o f t h e I W A - C a n a d a w e r e k i n d e n o u g h t o g r a n t me personal interviews. 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 of P P I R B , w e r e 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 to gather the i n f o r m a t i o n I needed to complete 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 D a v e G u n d e r s o n o f C O N I F E R who spoke with me by t e l e p h o n e f r o m P r i n c e G e o r g e a b o u t t h e h i s t o r y and current m e m b e r s h i p o f t h e a s s o c i a t i o n he h e a d s . I would l i k e to recognize 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 g a v e 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 questions. F i n a l l y I w o u l d l i k e t o t h a n k T o n y 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 the months of t h i s p r o j e c t .  CHAPTER  I.  Bargaining  Structure  The e c o n o m y o f forestry,  mining,  province.  These  thousands remote, unions  of  Columbia  Britain  brought  with  mines  and  logging  environment unionism  in  occupational a high  a more  the  most  these of  Similar  them  not  only  traditions.  a brand  of  backbone  of  provided  jobs  jobs  conditions  came f r o m their  labour  militant  to  in  British  conditions  and o f t e n  for  militant  labour  movement  the  located  bred  there  skilled  The w o r k i n g the  based:  dangerous  working  a n d many who  in  diversified  continues  sectors rate  the  of  Columbia's  per  employer  has  capita  union  but in  with  also the  an  radical  labour  bargaining  into  many  of other  perspective (the  along  second  has meant  felt.  As a c o n s e q u e n c e *  in  has been  to  viewed  finding  relations.  associations  legacy  1986))  legislation  labour-management  over  membership  widely  innovative  the  ideological  40% ( K u m a r is  today,  spilled  This  at  and  and  economy  B.C..  conflict  progressive  turbulent  in  country  labour-management British  economic  traditionally  camps p r o v i d e d  which  militancy  highest  have  the  resource  flourished.  Despite  with  are  is  Columbians; d i r t y ,  areas.  union  Columbia  Columbia  fishing  Great  militant  union  and  INTRODUCTION  British  British  British  their  in  industries  isolated in  ONE:  ways The  accredit  that  as  to  legal  and  the  some  deal  of  with  ability  2  encouragement  by  Labour  Boards  for  employers  to  do  so  i s one  such  response. During Columbia Wages  grew  and  levels  the  1940s  to  be  working  in  one  Canada  employer  associations  paper* this  the  union  the  in  power.  the most  in  B.C.  1980).  The  employer  construction*  labour  powerful were  to  fishing  to  in  of  bind  in  British  North  pushed  present  Associations  and  in  strength  community  order  movement  to  America.  the  the  highest  union  together  in  a  strong,  united  the  forest,  pulp  i n d u s t r i e s have  their  front  and  roots  in  period. The  1960s  and  early  turbulence  and  labour  just  under  one  million*  lost  to  rocked for  of  (Weiler  caused  combat  1950s  conditions  movement  to  and  strikes the  weeks  at  a  time  employers  to  lock  two  as  alone*  a  half  million  Waves  sectors  their  be  1972  1980).  strikes  to  In  and  Whole  out  continued  unrest.  (Weiler  province.  1970s  at  a  of  of  the  in  with  with  a  economy  great  workforce  person  successive  single  employees  filled  days  of  were  strikes were  location  shut  caused  retaliation  down other  (Weiler  1980) . Recognizing  pattern  as  makers  in  saw  the  need  labour  legislation  was  created  Columbia broad  B.C.  this  Labour  based  Columbia. councils the  Code.  bargaining Sections  of  Labour  trade Code  57  The as  did  not  59  and first  destructive,  legislative in  the  creators the  and  unions  for  wholly  key  to  form  of  the  of  accredited  the  new  labour  encouraged  enact  change.  the  policy In  new  British  Labour  peace  in  formation  employer  1973  Code  saw  British of  associations,  accreditation  legislation.  3 That  had been done  organizations Labour in  had become  Code and t h o s e  the l i f e  formation  twice  (Rogow  [insert As thirty  seen  employer  accredited,  small  industries provide members,  including  preparation advisability  benefit  public  Bargaining average  with  one  half  employees i n  today  voluntary  of t h e i r  and  These and  represent  regions  to negotiating,  relations services of information  demands, c o u n s e l l i n g grievance  and many  for their f o r use i n t h e  on t h e  to arbitration,  t o do s o , a n d t h e a d m i n i s t r a t i o n  plans. I I about  formally  sectors  i n a l l geographic  a given  approximately  members.  and p r i v a t e  the provision  Table  i n B.C. i s  here]  In a d d i t i o n  industrial  [insert  and t h e  unprecedented  a r e i n B.C.  both  employers  of pursuing  scale  o f 200 o r more  I about  on b e h a l f  of bargaining  early  1989) (See T a b l e I ) .  of the province.  additional  assistance  units  associations,  and l a r g e  an  as t h e C a n a d i a n  Table  are i n both  Board  unions.  I I ,there  bargaining  associations both  i n Table  the wide  structures.  bargaining  units  Relations  associations  has w i t n e s s e d  as c e n t r a l i z e d  multi-employer  employer  However, the makers of the  bargaining  of bargaining  the province's  of  s a t on t h e L a b o u r  of trade  1 9 7 3 , B.C.  centralization  accredited.  Code e n c o u r a g e d  of employer  of c o u n c i l s  Since  of  who  o f t h e new  accreditation  nearly  i n 1970 and a h a n d f u l  here]  of pension  and  legal  4 Table I B.C. B a r g a i n i n g  Structure  Percent of Employees Single Multi Employer Employer 37.7 62.4 42.6 57.3 48.5 51.5 45.6 54.5 47 . 8 52. 1 57. 1 43.0  1973 1974 1975 1976 1977 1978 1979 * * 1980 48 . 3 51 . 7 54 . 8 45.2 1981 1982 53.0 47. 0 1983 * * 1984 49.8 50.2 52.8 47.2 1985 1986 55.3 44.7 1987 * * 49 . 7 1988 50 . 3 Data not a v a i l a b l e f o r t h e s e y e a r s Source:  Percent of Agreements Single Multi Employer Employer 30 . 1 69.9 24.6 75.4 20.6 79.4 78. 1 21 . 9 77. 1 22.9 23.9 76 . 1  *  *  76 . 3 72 . 8 75.5  23 . 7 27 . 2 24.5  76 . 3 78.0 79.5  23.7 22.0 20.5  73 . 3  26 . 7  *  *  *  *  M i n i s t r y of Labour, P r o v i n c e of B r i t i s h Columbia, Negotiated Working C o n d i t i o n s (various y e a r s ) .  5 Table II Current Employer Accredited  Associations  Associations  Date  School Trustees: Okanagan West K o o t e n a y C o a s t Range F i v e Greater V i c t o r i a Labour R e l a t i o n s A s s o c i a t i o n Forest I n d u s t r i a l Relations Ltd Fraser V a l l e y Labour R e l a t i o n s A s s o c i a t i o n Health Labour 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 Loggers 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 of B.C. S a l e s and Service Metal Manufacturing Mid I s l a n d P u b l i c E m p l o y e r s A s s o c i a t i o n Okanagan F e d e r a t e d Shippers Association Okanagan M a i n l i n e M u n i c i p a l Labour Relations Association 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 of B.C. Vancouver Sheet Metal Contractors* Association Western Commercial Dental Laboratories  of  Accreditation  16 29 3 8 16 14 21 25  Mar Jun Aug Nov Jun Apr Aug Oct  1971 1971 1975 1976 1970 1983 1975 1972  Sep Mar 30 O c t 4 May  1973 1973 1975 1981  3 May  1972  13  Jan  1988  25 19  Apr Jun  1988 1980  B.C.  Voluntary  Associations  Year  B.C. Lithographers' Assoc. B.C. Maritime Employers' Assoc. Fish Processors' Bargaining Assoc. Greater Vancouver Regional District Labour R e l a t i o n s Department I n t e r i o r F o r e s t Labour R e l a t i o n A s s o c i a t i o n Kootenay Boundary Labour R e l a t i o n s A s s o c i a t i o n C O N I F E R ( 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 o n t i n u i n g Care Employee R e l a t i o n s A s s o c i a t i o n C o u n c i l of Marine C a r r i e r s Waterfront Foremen E m p l o y e r s ' A s s o c i a t i o n Source:  II.  B.C.  Changes However*  bargaining  Industrial  Relations  in Bargaining the  has,  Formation  1974 1974 1985 1976 1974 1979 1975 1985 1974 1977  1989.  Structure  environment  attractive  Council  of  that  o n c e made t h i s  i t seems, d i s a p p e a r e d  type i n the  of 1980s.  6  The  1980s  have  been  a  advancements  continue  both  and  foreign  markets  are  reflected these  the  a  system,  chosen Until  changes  remain  of  great  appears  competition volatile;  change: to  be  have  and  the  technological  an  increasing  increased;  legislative  a more c o n s e r v a t i v e  affected  as  shown  to  these  i n the  rate;  export  changes  government.  industrial  in  only  Table  Since  and  of  1988,  voluntary  to  relations  have  A l l  climate  of  industrial  several  as  employer  last  of  five  ten  associations.  have  associations  decade.  voluntary  had  relations  Since  associations  associations  seven,  total  the  employer  operate  employer  on  i n the  I I I , five  those a  of  occurred  and  seven  pressures  formality  have  deaccredit  1988,  as  of  Columbia  deaccredited exist.  have  result  British  1984,  what  domestic  values  of  Columbia.  As  in  at  increasingly  changes  British  decade  had  have  organizations. ever  automatically  deaccredited  and  ceased five  to  7 Table I I I Deaccredited Disbanded  Employer  Bargaining  Associations  A l u m i n i u m Window E m p l o y e r s * LabourRelations Association Automobile Dealers Association; Victoria B.C. W h o l e s a l e Drug Association A s s o c i a t i o n of Canadian Security Services P a c i f i c Drywall Dealers Transport Labour R e l a t i o n s Assumed  Voluntary  Status  Associations  Date of Accreditation  Date of Deaccreditation  30  May  1979  12  26  Jan  23 20 13 14  May  1986  1976  3 Mar  1987  Feb  1971  9 Apr  1974  Jun Nov Oct  1973 1975 1970  B.C.  Industrial  Relations  Nov May Sep  1987 1986 1984  Date of Deaccreditation 8 Oct 1988 18 J a n 1988  Date of Accreditation 26 May 1971 23 J u n 1970  B.C. Hotels Association B.C. Road B u i l d e r s B.C. School Trustees ( E a s t K o o t e n a y LR Council) 24 Mar Construction Labour Relations Association 14 J u l P u l p and P a p e r I n d u s t r i a l 7 Jul Relations Bureau Source:  4 28 25  1971  17  Mar  1984  1970  22  Jan  1988  1970  8  Mar  1985  Council  1989.  8  III.  The P u r p o s e The  purpose  environmental B.C.'s  of t h i s of t h i s  forces  products  chosen the  have  from  decade,  brought  and p a p e r  table  bargaining  in  in this  competition*  since  have industries,  pressures  exposure  to  the threat  of  i n the early part  the Great  been  employer  industry  environmental  c h a n g e , and»  forest  e m p l o y e r s ) have  by one o f f o u r  commodity markets,  recession  i n B.C.'s  However, as i n o t h e r  increasing  technological  the worst  of employers  own.  foreign  on w o r l d  the e f f e c t s of  of c o l l e c t i v e  of employers  on t h e i r  increased  fluctuations barriers,  a l l pulp  A handful  to bargain  1980s  bear;  Cand  at the bargaining  associations.  i s to determine  industry.  the majority  industry  represented  research  and i t s M e t h o d o l o g y  on t h e s t r u c t u r e  forest products  Historically,  Research  Depression  to  currency trade of the of the  1930s. This expected  research t o change  bargaining factors  responsible  pressures.  or those i n more  To a c c o m p l i s h traditional  f o r change those  of the status  environmental  explored  A secondary  to identify  preservation  to identify  the preferences  structures.  conversely,  changes  seeks  forces  those  objective  i n bargaining factors  Those  forces  have  which  could  i s to i d e n t i f y the structure  responsible the force  f o r the of  responsible  prevented  such  or»  these f o r such  changes  will  detail. this  structure  a number o f a v e n u e s a r e e x p l o r e d .  of bargaining  be  of the p a r t i e s f o r c e r t a i n  quo d e s p i t e  which  forces  i n B.C's  forest  The  products  be  9 industry  i s described  negotiations examined. markets, have How  are  How  and  undertaken  has  the  the  effects  of  the  bitter,  affected  the  p a r t i e s and  satisfied  have  This  the  research  industry.  John  1958  Collective framework and  Dimmock  termed  The  them) d e t e r m i n i n g  government, employees  (Anderson,  behaviour  the  organizational  f a c t o r s such  p r a c t i c e among by  third  Much o f gathered  the  through  representatives associations  the  of  the  negotiated to  as  parties*  the forestry  theoretical  framework  Systems. relations  e x t e r n a l environment  bargaining  and  outcomes  are  employers  and  Ponak  1989).  The  the  the  economic,  as  w e l l as  context,  their  market, by  history  pressures  (Sethi  Dunlop  and  legal  and  How  outcomes?  Columbia's  industrial  environments the  mid-1980s  analyse  Relations  p a r t i e s i s i n f l u e n c e d by competitive  What  relationships?  this  unions,  Gunderson,  and  actors  the  product  legislation?  p a r t i e s ( o r a c t o r s , as  their  technological*  past  the  i n an  i s also  of  labour  British  collective  and  associations of  place  three  to  disputes  presented  i s i n f l u e n c e d by  1989).  of  which  concentration?  approach  Industrial  takes  i n terms  bargaining  a systems  entitled  bargaining which  labour  their  first  -  changes  environment  Dunlop  book  out  structure in  industry itself  industrial  recent  drawn  uses  relations  the  The  p a r t i e s been w i t h  industrial  his  today.  foreign competition*  been  to  i n d u s t r y changed  have  in  compared  put  on  and the  parties. information both of  the  studied.  presented  telephone three  and  unions  Pre-approach  in this  personal and  the  letters  thesis  was  interviews with three were  the  employer sent  in early  10 J u l y 1989 and a l l s i x interviews  and two hours.  of the d i s t a n c e the r e s t  between  one and a  One i n t e r v i e w was done by telephone  of the research was undertaken.  because  This i n t e r v i e w was  also  hours and r e q u i r e d roughly the same  time. followed a s e m i - s t r u c t u r e d format.  were prepared for the union and employer  representatives. p a r t i e s however, from d i f f e r e n t  Many of the questions  designed  Separate  association  for the  two  addressed the same i s s u e s although o b v i o u s l y  perspectives.  Personal i n t e r v i e w s were  recorded and i n t e r v i e w notes were taken. was made to v e r i f y notes and f i l l During these i n t e r v i e w s  in  tape  Later use of the  tapes  details.  other w r i t t e n m a t e r i a l s were  r e c e i v e d which have also been used i n t h i s example,  between  s e p a r a t i n g P r i n c e George from Vancouver, where  The i n t e r v i e w s questions  Personal  offices  1989 and g e n e r a l l y l a s t e d  conducted during business amount of  sought were g r a n t e d .  were conducted at the respondents'  J u l y 14 and August 2, half  interviews  research.  a copy of the most recent PPWC/PPIRB  For  collective  agreement was r e c e i v e d from the PPWC r e p r e s e n t a t i v e ,  a copy of  the MacKenzie Report (1988) from the p r e s i d e n t of FIR, and unpublished pulp and paper s e c t o r  s t r i k e data from the  president  of the Pulp Bureau. Background and h i s t o r i c a l i n f o r m a t i o n about b a r g a i n i n g i n the B . C . f o r e s t  products i n d u s t r y was gathered from a combination  of government p u b l i c a t i o n s , s t a t i s t i c a l i n d u s t r y trade j o u r n a l s * and newspaper  sources* files.  f o r e s t product  11 IV.  Research Three  of  employer  the three  sawmilling, Interior  formed  voluntary  was  association.  a formally  PPIRB,  representing  begun  voluntary  on J u l y  status,  These  three  industry  structures. their  associations  provide  structures, The reviews  a wide  By o b s e r v i n g  whether c a n be  thesis  counterparts, more  voluntary Labour  Ltd.*  a  16* 1 9 7 0 .  and n e w s p r i n t an  accredited to  1985.  of these in  producers*  returned  employers i n  of employer  any change  i n 1975.  bargaining associations  and  bargaining  c e n t r a l i z e d o r more  decentralized  identified.  i s organized  the l i t e r a t u r e  bargaining  on J u n e  and t h e i n d e p e n d e n t  spectrum  a  name i n 1 9 4 9 a n d  i n March  the behaviour  towards  Research  I t h a s , however*  deaccredited  and a  sawmilling  i n 1946 and became  1970.  having  independent  structure*  7,  basis  pulp  Relations  Forest  and  i t s present  association  Industrial  i t s formation  of logging  the province's  on an i n f o r m a l  association  the  accredited  Northern  Industrial  Cariboo  i n 1 9 4 2 a s R.V.  I t took  Forest  and has been  North  on  producers  1950s) s i n c e  representative  established  lumber  i n each  (logging,  Council  (CONIFER)*  employers  i t s predecessor  became  was  logging  employers  industry  and P a p e r  represents  i n the e a r l y  the Coastal  employers*  Relations  and t h e P u l p  CONIFER  of unionized  Relations FIR*  Employment  (like  products  and p a p e r ) a r e s t u d i e d :  L t d . (FIR),  association  representing  of the f o r e s t  and p u l p  (PPIRB).  handful  associations  sectors  Forest  Relations Bureau  Format  structure.  i n the following  on t h e t h e o r e t i c a l I t also  presents  way.  Chapter  Two  determinants of  the findings  of  several  12 studies,  both  identify  the  statistical determinants  industries.  Chapter  organizational the  B.C.  and  The  chapter  their  legal  forest  the  pressures  British  products since  Columbia  and  relations  in general  structure  in this  reasons  for  industry  and  not  been  as  The  final  this  environments the  area.  the to  1980  upon  and,  observed explain  chapter  impact  as  the  these  Chapter changes  why  each  changes  various  had  on  on  in  turn. outlines  Five  products  in  describes  industry  the  of  industrial  bargaining  to  explain  the  structure  in  this  structure  have  in bargaining  recommendations  in  structure  Chapter  seeks  theory  and  system,  bargaining  forest  to  competitive,  discussed  i n the  have  seek  r e l a t i o n s system  in bargaining  traditional  presents  Six  in  economic,  past.  the  that  environmental  more s p e c i f i c a l l y ,  sector.  radical  describes in  the  The  actors  industry put  the  are  studies,  structure  industrial  industry.  describes  case  bargaining  the  i n t e r r e l a t i o n s h i p s and  the  and  outlines  on  products  political,  of  Three  pressures  forest  fourth  analyses  would  have  for  future  predicted. research  in  13  CHAPTER  I.  purpose  the  determinants  the  advantages  bargaining  and  by  this  of  bargaining  and  and  power must  begins  of  REVIEW  be  bargaining  s t r u c t u r e are  balance  of  presenting the  and  the  power  describing British  A.  the  literature  order  with  Next,  reviewed.  theoretical  e f f e c t s of between  do  so,  to  The  third  from  bargaining  chapter i t s role of  section  of  of  both  chapter  statistical  s t r u c t u r e and  s t r u c t u r e s of  from  several  in  this  bargaining  s t r u c t u r e upon The  of  structure,  forms  determinants  parties.  types  both  outlining  various  on  understand  various  this  the  bargaining  the  bargaining  To  s t r u c t u r e and  theory.  the  of  the  concludes  by  analyses  of  case  studies  industries in  Columbia.  Bargaining Defining question  which  In  associated  understood.  empirical evidence  determinants  structure.  the  r e l a t i o n s h i p between  defining bargaining relations  structure  review  organizational factors, bargaining  first  discusses  i s to  disadvantages  industrial  chapter  chapter  s t r u c t u r e s , the  environmental  is  LITERATURE  Introduction The  the  TWO:  unions  Structure  bargaining "who  "why?" - what  s t r u c t u r e at  bargains  (Rogow  1989)?  causes  Defined  the  with  the  simplest  whom?", w h i c h  A more  interesting  formation  of  level  employers question,  answers with however,  more c e n t r a l i z e d o r  14 decentralized  structures?  This  question  i s more d i f f i c u l t  to  answer. Weber structure employer  (1967: i s to  identifies of how  collective to  gain,  one's  while  i n the  the  that the  bargaining of  bargaining. maintain*  the  the  of  bargaining  specific  process".  bargaining  increase  of  employee  and  e s s e n t i a l power  Bargaining  and  purpose  goals  preserving  importance  Weber's  statement  s t r u c t u r e to  the  process  s t r u c t u r e i s about  one's  power  power:  in relation  to  adversary. Bargaining  industrial between  and  environmental  determined  ability  by  (Bairstow party  each  to  environment  will  1988). can  be  states  that  manipulated  not  wholly  t e c h n o l o g i c a l , and achieve  their  or  bargaining  by  i n f l u e n c e d , but  of  variable  processes  outcomes  to  to  bargaining  Kochan  framework  mediating  the  the  wish  to  other  realize  maximize  side's.  objectives  factors will  that  theoretical  the each  prefers.  determined  competitive)  by,  factors.  objectives will  i n part  historical*  legal)  and  be  1979).  party's  organizational ability  specific  organizational (social*  minimizing  affect  are  the  reach  (economic,  parties'  while  and  Katz  into  i n t e r v e n i n g or  p a r t i e s i n order  preferences  Each  an  i s a v a r i a b l e which  negotiating  factors  as  environment  (Kochan  structure  These  structure fits  relations  the  outcomes  The  states  "accommodate  groups  relationships  13)  weaken  bargaining  Environmental  in negotiations  place  i t s goals.  i t s own  For  a party's  each  forces  p o s i t i o n may  will  while  c o n s t r a i n t s on example*  factors  power  lead  in  party's the  i t to  desire  15 a  different bargaining  necessary  to  Increased  foreign  may  the  to  cause bring  factors  an may  choice. render  get  i t needs  competition  employer  end  to  either  to  union  an  attempt  will  in turn  will  affect  parties.  environmental  objectives.  nature  an  or  third  the of  within  factors  The  can  the  pressure,  of  the  very to  in Figure  market in  organizational  effectiveness for  of  example,  that may  useless. balance  of  power,  facing  the  meet  identical  t h e i r goals  environmental  structure  1. here]  and  and  two  different bargaining  1 about  order  c o l l e c t i v e bargaining  same i n d u s t r y ,  have  Figure  the  power  association  r e l a t i o n s h i p between  factors, bargaining  [insert  product  However,  r e l a t i o n s h i p between  i s shown  employer's  i t changes  the  the  table.  bargaining  outcomes  regain  bargaining  decrease party  as  to  employer's  different structures  organizational negotiations  i n the  decentralize  influence the  the  whipsawing.  structure,  Parties  choosing  to  i n order  at  join  increase  L e g i s l a t i o n or  Bargaining  by  what  structure  outcomes  and factors,  outcomes  of  16 Figure 1 Bargaining  Structure  Legislative Context  and t h e C o l l e c t i v e  Bargaining  Organizational Characteristics  Economic Context  Union S t r u c t u r'e  Technology-  Power Context  Collective Bargaining Structure  t  Management Structure  System Negotiation Process Bargaining Outcomes  Labour •Management Relationship Industrial Conflict Macroeconomic Performance  Source:  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 C a n a 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 of T o r o n t o P r e s s , 1986. P. 225.  17  B.  Types  of B a r g a i n i n g  Bargaining either to  formal  which  the  Structures  structures  or  can  informal.  p a r t i e s on  The  together in negotiating  which  each  accept  classified  the  most  broadly  f o r m a l i t y depends  either side  bound  must  be  new  (employers  agreements  contract  terms  upon  as  the  or unions)  and  that  the  the  degree are  degree  to  group  negotiates. Informal are  related  from  the  which  bargaining  i n outcome  almost  the  based  one  upon  the  the  event  party  than  that  changes*  "less  contrast  voluntary,  change,"  and  advantage  the  by  to  a reference are  ones  with  bound*  imitated  in  i n the of outcome  group  1989).  (Rogow  more a t t r a c t i v e  because  of  their  to  the  flexibility.  o r g a n i z a t i o n a l * or not  range  a bargaining  political  compelled  s t r u c t u r e s , formal  more d i f f i c u l t  that  often  may  bargaining  temporary  that  to remain  in  1989).  weaker  by  formal  often  the agreement.  associations*  to win  p a r t i c i p a n t s are  informal  associated  negotiations  structures  t o t h e most  economic*  "more r e g u l a t e d  p a r t i e s are  covered  by  formal  the  These  i s always  seeks  structures  r e l a t i o n s h i p (Rogow In  the  one  bargaining  simply  r e l a t i o n s h i p of p a t t e r n  r e c e n t l y won  involved  climate  1989).  negotiations*  i n which  In  are  p a t t e r n - s e t t i n g agreement  agreements  parties  (Rogow  formal  pattern-following  Informal  structures  to leave* law"  This unions  more d i f f i c u l t  (Rogow  bargaining  legally*  or  1989:  the  i n the  stability  employers  do  not  are  to  136).  structures  to remain  ensures  structures  The is  major that  group of  these  break  away  18 to use  sign  a separate  t o whipsaw the r e s t Formal  the  number  Bargaining employer  large  structures  employers,  only  employer  who  h a s more  chooses  number  bargaining  of d i f f e r e n t  The  final  number  either  to bargain  union  large  and  be d e f i n e d  wide ( e . g . only,  small  on a p l a n t  as e i t h e r  usually  be u n d e r t a k e n  by an  b u t , f o r whatever  by p l a n t  either  single  bargaining  but can a l s o  used  to define i n each  basis.  a single  Multi-  employer  a r e t h e norm  bargaining  often  exceed  which  bargaining  round  or a multi-union  structures  structures  area  employers  one e s t a b l i s h m e n t  involved  union  intraorganizational  local  Multi-  or a  employers.  of unions  single-union  wide,  of small  can a l s o  involves  dimension  a single  involved.  of the above.  employer than  dimensions:  and u n i o n s  of both  of  structure i s  negotiations:  association. because  the costs  are associated  the benefits  However, of  with  multi-  the p a r t i c i p a n t s  receive. The p a i r i n g o f s i n g l e dimensions structure  discussed  or multi-union  earlier  leads  structures  to s i x basic  configurations: Single  then  1989).  Single-establishment  a single  establishment  the  structures  multi-establishment.  reason,  comprised  a mixture  can  or multi-employer.  c a n be i n d u s t r y  only,  or employer  on t h r e e  establishments,  o r any c o m b i n a t i o n  involves  (Rogow  c a n be c l a s s i f i e d  or m u n i c i p a l ) ,  Bargaining  the union  c a n be s i n g l e  negotiations  employers  which  of the group  of employers, structures  provincial  or  agreement  establishment  - Single  union  with  bargaining  the  19 Single  establishment  - Multi  union union  Multi  establishment  - Single  Multi  establishment  - Multi  Multi  employer  - Single  Multi  employer  - Multi  union  union union (Rogow  II.  Theoretical  A.  The  Issue  Perhaps  give  party  in  seek  important  one  a structure  real  the  ability  and w i l l i n g n e s s  and  further  states  determinant  B.  that  of that  Environmental Just  parties'  organizational bargaining constraints structures.  process"  bargaining  party  "each  on t h e o t h e r 20).  party  Livernash  more e x p l i c i t l y  to withstand  structure  that  maximize i t s  (1967:  negotiations  of each  states  will  costs  advantage i t  i s an  a  as  strike,  important  power.  Determinants  as b a r g a i n i n g relative  Weber  that  or expected  i n labour  i n the  i s t h e power  of the p a r t i e s .  to devise  power  consideration  structure  of the b a r g a i n i n g  defines  Structure  Power  for inflicting  the course  (1963),  of Bargaining  of a b a r g a i n i n g  to either  will  capacity  of  t h e most  establishment will  Determinants  1989)  structure  bargaining  factors  structure.  of Bargaining can, i n part*  power*  on t h e a c h i e v e m e n t Environmental  determine  environmental  i n t e r a c t to determine Conversely*  Structure  these  and  the p a r t i e s '  factors  of the p a r t i e s '  the  can a l s o  desired a c t as  desired  f a c t o r s , however, impact  t h e two  20 parties  i n d i f f e r e n t ways.  various  environmental  perspective single  1.  Unions  as  union  political  benefit  f o r union  that  power  range  when  p o s i t i o n , may these  Characteristics part  determine  Unions the  within  Levinson when the  i t can prevent union's  new  ratios  usually  union,  once  have  that  bargaining  the union  structures  entrants  Industries  i n the firms  even  with  a  out of the  will in  prefers.  that  encompass  1967). power  from  having  to achieve  i t prefers.  markets  i s greatest  operating  high  p r o h i b i t i v e barriers to entry  established  able  are absent.  and l a b o u r  the union's  the  fringe  settlements  (Weber  such  needs t o  the union,  structure  industry  jurisdiction.  provide  and  being  motivations  jurisdiction  (1966) s t a t e s  the  not achieve  f o r bargaining  their  wage  Without  out that  of the product  look  large  primary  variables,  t o win the outcomes  political  the bargaining  generally  market  points  than  prestige,  and r e q u i r e s  unable  (1966)  rather  Political  f o r added  i t t o do s o .  also  Levinson  t o do s o , t h e u n i o n  power  i s often  However, L e v i n s o n  normal  both the  i n an a s s o c i a t i o n .  as a n c i l l a r y  t o seek  In order  allows  the union  favourable  from t h e  including  bargaining  structure.  leaders  i t s bargaining  structure this,  variables  or the search  increases.  maximize  be s t u d i e d  organizations.  of bargaining  rivalry  motivation  the e f f e c t s of  Considerations  are p o l i t i c a l  determinants  section  and t h e e m p l o y e r ,  and t h e e m p l o y e r  Union  classifies  factors will  of the union  employer  In t h i s  outside  concentration so t h a t t h e  i n the industry,  need n o t  21 concern  itself  involve  multi-employer  advantage  to  structure. cost  of  the  to  the  The  the  industry  If  the  union  in  that  competitors  achieve  the  which  cities.  Employer  An  employer's a  bargaining  involved,  make i s r e d u c e d taking  the  when  a strike  away t o  where  settle  and  strike,  are  to  high  ease  the of  trucking  has  control  very  level  of  into  industry  a l l competitors  1966).  been  must  be  strength  e f f e c t s of  that as  entry  (Levinson  nonunion  market.  one  which  organized located  situations generally  (Weber  more  organizational  undermining entry  a  b a r r i e r s to  concentrated  traditionally  These  low  of  Levinson is  highly  by  a  i n one  of  a  involve  more  by  ability  1967).  Considerations bargaining  strike  points  strike  a  structures  2.  a  to  additional  are  breaking  maintain  there  prevent  because  hub  to  is geographically  but  withstand  take  where  i t can  decentralized  short  i n a market  eventually  able  over-the-road  union  Livernash  i s an  a l l competitors  one  s i t u a t i o n s tend  a multi-employer  a l l employers  of  of  despite  competitive  to  option  can  area*  major  that  industry  the  few  There  in maintaining  i s also  if  strong  union  threat  union  the  structures.  These  others.  competitive  cites  organizing.  When a l l c o m p e t i t o r s  i s the  before  further  a concession  compared there  with  out  mounted that  therefore outlast  power by  i s determined  the  employers m u s t be the  union  (Livernash  generally prepared,  union.  do  not  i f they  Employers  its  1963). win  the  decide  therefore,  to will  22 seek  the bargaining  long  strike. Employers  plant  basis  dispersed,  an  will  choose  i f they  have  producing  represented different  structure  employer's  to conduct  a large  enables  basis,  However, i f t h e employer and f a c e s  is  o f f to centralize i t s negotiations  level  or to j o i n  Considerations  The  similarity  power.  individual  and/or  fulfilling  group  1967).  small  terms  of s i z e ,  methods highly  t h e more  region,  of production,  The  will  union,  outweigh  corporate  of the employers  determine  The t r a d e  the group's  the losses  o f f between will  with  share,  which  continue  incurred  homogeneous t h e g r o u p ' s  market  the firm  f r o n t means r e l i n q u i s h i n g  goals.  the unions  inventory  association.  to i n d i v i d u a l goals  centralized bargaining  individuals  effects  received  or  at the  and o b j e c t i v e s  a common  group  bargaining.  Associations  association  as opposed  Generally,  bargaining  of the goals  To f o r m  as t h e g a i n s  industrial  of Employer  i n an e m p l o y e r ' s  bargaining  long  an e m p l o y e r  3.  involved  national  cash  a l l have  circumstances  by d e c e n t r a l i z e d  position, better  a large  which are  In these  i n a poor  by  widely  whose c o n t r a c t s  1963).  i s small,  to win a  on a p l a n t  number o f p l a n t s ,  (Livernash  i s maximized  them  negotiations  d i f f e r e n t unions  dates  power  best  on a n o n i n t e g r a t e d  by s e v e r a l expiry  that  members  before  (Weber  make-up i n negotiate,  and p r o f i t a b i l i t y ,  c a n become  as  t h e more  the costs  to  become p r o h i b i t i v e .  formation  o f an e m p l o y e r  on c o l l e c t i v e  bargaining.  bargaining  association  An e m p l o y e r  has two  association  will  23 alter the to  the costs  union. make  will  It will  depend  decrease make  harm is  upon  sales  degree  an e f f e c t union's  better  than  them  product  pressure  incentive they  to present  there  their  on  a united  bargaining  be a b l e  front to the  market  power  Employers  power  can a l s o  as w e l l as upon  i n a more  to withstand  strike  industry* given  (Levinson  are fewer  bargaining  contains  1966).  policies.  smaller  Those  firms  strike.  A more  unable  break  settling  some o f t h e i r  pressure that  they  Employers financially  o f them, i t i s e a s i e r f o r  and f i r m s w i l l  the union.  remain  would  an a s s o c i a t i o n  industries are generally larger,  of capturing  likely  However, i f  the concession  i n the product  above.  of union  of a s t r i k e  with  be m o r e  f i r m s , then  i n a competitive  and because  often  i t do n o t  i f necessary.  industry will  market  separately  position  employers  with  individually.  a n d t o make  on t h e e m p l o y e r ' s  to coordinate  while  any employer  of competition  more c o n c e n t r a t e d  associated  o f t h e member  a strike  t h e same d e g r e e  stronger,  the  than  issues  t o make t h e  the association w i l l  a s was d i s c u s s e d  concentrated  in  volume, then  stronger  and t a k e The  face  costs  certain  structure to the  I f a l l members a r e w i l l i n g  concessions  t o t h e e m p l o y e r s and  the w i l l i n g n e s s of the employers  of bargaining  c o n d i t i o n s a r e n o t met»  union  of a s t r i k e  w i l l i n g n e s s t o concede  and i f t h e added  i n a much  the  Their  the p r o f i t a b i l i t y  have  change  the relation  market.  concession  these  also  concessions.  product  to  and c o n s e q u e n c e s  to  away t o  first  competitors'  have  competitive withstand settle t h e added  market  share  24 C.  Organizational The  more  organizational  identifiable  the structure  Organizational actors'  the  environment  1.  is  (Bairstow  change  forces  bargains  regulating  intended  a single  i t easier  secure  a first  change  and t e n d s  bargaining encourage  significant.  regulating  to  the  preserve  them, and t h e r e l u c t a n c e changes  of  i n the  external  organizational  factors  c o l l e c t i v e bargaining  that  developed  bargaining  employer  contract.  tend  given  in a collective  structures  may  be  at a single  the spread  a single  to win a r e c o g n i t i o n  past  (Weiler  structure  the formative 1980).  more c e n t r a l i z e d b a r g a i n i n g  union  establishment.  of c o l l e c t i v e  However, t h i s  t o endure  to designate the  as one i n w h i c h  f o r a union  relationship  in a  as a p o l i c y t o o l t o  have  America  unit  to f a c i l i t a t e  making  variables  by l a w .  i n North  bargaining  with  of these  less  Context  on t h e p a r t i e s  appropriate  and  are  1979).  imbalances  boards  structure  subtle  c a n be  the laws  despite  r e l a t i o n s h i p and c e r t a i n  Labour  more  the impact  L e g i s l a t i o n c a n be u s e d  t h e power  bargaining  is  being  o f t h e more e a s i l y i d e n t i f i a b l e  jurisdiction.  imposed  include  a r e or t o change  to institute  the l e g i s l a t i o n  correct  may  the i n s t i t u t i o n a l  Legislative  One  and m e a s u r a b l e ,  variables  as t h e y  parties  Despite  Structure  of bargaining  of c o l l e c t i v e bargaining  behaviour,  conditions  of Bargaining  determinants  q u a l i t a t i v e i n nature.  easily on  Determinants  bargaining,  e l e c t i o n and i s resistant to  stage  of the  I n an a t t e m p t t o where  This  i t would  be  25 beneficial, for  the l e g i s l a t i v e  the a c c r e d i t a t i o n  councils  environment  of employer  f o r the purpose  o f more  i n some  associations centralized  areas  provides  and t r a d e  union  bargaining  (Weiler  1980 ) .  2.  History  Despite may  and P a s t  Practice  environmental  continue  to influence  The t r a d i t i o n  even  the environment  pattern  was  first  advantageous of  centralized  negotiating industry, change.  one a g r e e m e n t  Centralized where  locals  possibility their  only  such  that  some  to cover  since  would  cases  also  tend  to destroy could  many  the  be  the  benefits  ease i n  companies  i n an  and a r e d i f f i c u l t  has a c h i e v e d  locals  continues  as t h e a d m i n i s t r a t i v e  structures  and i s l o a t h  i n an  often  i t in fact In o t h e r  importance  the union  practices  of bargaining  significantly  a n d when  differently.  bargaining,  and p a s t  bargaining  has changed  assume paramount  situations various  of pattern  established  to bargain  history  the structure  industry. after  changes,  to  to p e r s i s t i n  parity this  achieve  among  equity better  members  despite  of  the  settlements  on  own.  3.  Attitudes  of the P a r t i e s  The  attitudes  or p h i l o s o p h i e s  important  determinants  multi-employer  of bargaining  structures be p r e p a r e d  structure.  t o be s u c c e s s f u l ,  involved  must  of  individual preferences.  their  of the p a r t i e s  I n some  In o r d e r f o r  the  to put the i n t e r e s t s  are also  employers  of the group  circumstances,  ahead  such  an  26  attitude who  runs  counter  do n o t w i s h  individual certain  attitudes  will  Broad  from  Union  bargaining  parity  bargaining  When l a b o u r  suppliers,  buyers,  Depending often  upon  significantly  through  pressure  bargaining  III. A.  studies  affect  involved  t o be  i f wage  and  of broad benefit  involved  then  they  i n an i n d u s t r y  to bargain  more t h a n  t h e two  third  public  parties  pressure  affected.  third  parties  of c o l l e c t i v e  t o pass  parties  including  c a n a l l be  and power, t h e s e  the structure  or  just  legislation  can  bargaining regulating  p u t d i r e c t l y upon t h e  employers.  Evidence Analyses have  determinants  outlined  structures.  These  predictors  requires  or unions  occur  influence  employer,  Statistical  nature.  disputes  on t h e g o v e r n m e n t  union,  Empirical  Two  affects  and by economic  offending  also  their  Parties  and t h e g e n e r a l  their  optimizing  agreement.  of Third  involved.  of employers  the formation  Conversely,  on t h e e m p l o y e r s  Interests  Collective  or unions  f o r the union  f o r a master  from  bargaining  can discourage  structures.  put pressure  4.  based  the union  rivalry  i s a priority  centrally  spirit  t o be r e s t r i c t e d i n a n y way  outcomes.  successful. based  to the entrepreneurial  tested above  studies  of bargaining  Organizational  the a b i l i t y  of the t h e o r e t i c a l  to correctly predict have  used  structure factors  bargaining  environmental  because  are often  of t h e i r difficult  factors  as  quantifiable both to  27 determine both the  and  studies  Kahn  Beaumont  ( 1 9 8 2 ) done  tried  given  contract  of  to  more  likely  to  the  concentration.  be  large  Further,  British  factors  union  Beaumont  (1980) a l s o  resulted  from  foreign  the one  plant  density, that  ownership  structures Hendricks and  summarized  separate  and  factors  and  steps.  of  given  made i t teams  single-  industrial  found  that  the  major  were  dispersion,  multi-unionism.  the  a  Both  structures  market  They  whether  which  high  below.  second,  predictors  single-employer and  by  determined  bargaining  and  for  had,  Deaton  are  Beaumont  product  above  establishment.  size  and  In  one  by  i n two  significant  low  found  other  that  analyses.  bargaining  single-employer,  for multi-employer  high  the  data,  worked  Deaton  concentration,  size,  the  e n c o m p a s s more t h a n  structures:  industrial  with  to  described  studies,  single-employer,  similar factors  determinants  two  U.S.,  m u l t i - or  was  in statistical  factors  these  researchers  was  a contract  use  e f f e c t s on  i n the  identify  that  employer  of  (1980) working  first  plant  expected  findings  sets  for  environmental  the  The  Both  found  quantify  the  most p a r t ,  examined. and  to  low  small  Deaton  structures  presence  of  local  and often  IR  specialists. Hendricks them, were contract,  and  Kahn  successful given  that  as  also  the  increased  establishment  i t was  as  plant  the  size  and  i t was  Beaumont  p r o b a b i l i t y that  and  was high  indicating a single  p r o b a b i l i t y that that  Deaton  single-employer,  Large  well  given  unlike  in determining  multi-establishment. concentration,  (1982),  either  single-employer.  a  single  or  industrial  employer  a contract  before  would  be  This  structure, multi-  28 probability company's of  was  business  D e a t o n and  decentralize North sign  unlike  a sign  (Hendricks  to i s o l a t e  structure  rather into  the kind  studies  provide  certain  how  This examine,  done  Case  with  forces  i n nature, forces  above  although  do  not  reviews  respectively,  rivalry  tends  been  studies,  case  studies,  are examined i n that p a r t i c u l a r are d e s c r i p t i v e  studies  tend  counterparts, o f t h e way  insight bargaining  t o be  they  less  do  that  or encourage the s e l e c t i o n of i n a way  that  allow.  three  of these  municipal  case  bargaining  a  structure in  the researcher  by t h e p a r t i e s  a  bargaining  in a particular  an u n d e r s t a n d i n g  inhibit  of  In these  these  statistical  c a n be  has n o t  because they  a t work  In  to centralized  on b a r g a i n i n g  allow  to  decentralized  union  or determine  studies,  structures  analyses  section  impact  level.  of e m p i r i c a l  Columbia.  they  their  bargaining  statistical  Instead  have been  Therefore,  the reader  organizational  described  affecting a particular industry  than  to  Britain  the determinants  Columbia.  the o r g a n i z a t i o n a l  generalizable  lead  1982).  Kahn  findings  multi-unionism  and  quantitative  relationship.  Britain,  and c o n t r i b u t e s  structure.  than  to the  l o c a t i o n tended  strength  identify  to understand  bargaining  a t any  i n Great  industries in British  variables  order  and  contrary  and can t h e r e f o r e  like  in British  of case  various the  work  rivalry  i n t e n s i t y of the  to the single-establishment  weakness  Empirical  number  union  i n Great  of union  i f the labour  However,  structures, while  structures  done  high.  bargaining  of union  be  was  increased  Beaumont,  America,  bargaining to  further  studies i n the  which  Okanagan,  29  construction  labour relations  determinants  of bargaining  industry. special  This section  structure  the province,  i n the Coast  c o n c l u d e s by h i g h l i g h t i n g  c i r c u m s t a n c e s which  centralized  throughout  are responsible  multi-employer bargaining  and t h e  lumber the factors  and  f o r the highly  structures  found  in British  Columbia.  B.  British 1.  Okanagan  Late  Municipal  thirteen  parity  centralized  originally  of  the thirteen  earned sector. on  in  were  upon  (McKelvey  which  t o commence  1970).  the thirteen Although  Employees,  Okanagan-Mainline  i t s intention  method  t h e method  municipalities willing  by e m p l o y e e s  The  union  municipalities  the employers  of contract  were n o t  negotiation,  t o base  bargaining  by w h i c h would  parity  they  m u n i c i p a l wage  d o i n g t h e same w o r k  contracts  be t h e m a s t e r  the thirteen  taking  t o form  agreement  municipalities  f o r the  a "super  rates  locally  the best  applied  committee  be e s t a b l i s h e d .  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  thirteen  then  i n the  and t h e e m p l o y e r  an i t e m by i t e m b a s i s ,  the  of Public  agreed.  not agree  employers  among  bargaining.  However, t h e union could  basis  i n favour of t h i s  reluctantly  Union  indicated  on a n a r e a w i d e  to establish  through  Employers  municipalities  of the province,  bargaining hoped  Case S t u d i e s  i n 1967, the Canadian  represented region  Columbia  The upon  those  i n the private  to establish  clauses  contract"  from which  to a l lmunicipal  (McKelvey  employees  1970).  each  parity of  would employees  30 The  employers  wage a n d s a l a r y respective  study  areas.  Eventually, largest  basis.  separately  The e m p l o y e r s  local  had s t a r t e d .  which  were  wide of  municipal  local  association  members  and t h e  CUPE  three  locals.  approached o n an  t h e same c o n t r a c t s changes  made  were  b y 7% i n t h e f i r s t of p a r i t y  nor with  of multi-employer had f i n a l l y  each  individual  and i t s t i l l  t o wage year  sector  employers  were  bargaining. settled  lost,  which  each  rates  a n d 8% t h e not with  employees i n  was c o n c l u d e d  terms.  f o r Okanagan-Mainline  with  was a c h i e v e d ,  private  been  a n d on t h e e m p l o y e r s '  accredited  i n i t s demand.  and i n t h e end t h e u n i o n  However, t h e agreement  t h e agreement  whipsawing  now  Despite without  on a n  area  convinced the  long  union  I n 1972 t h e e m p l o y e r s  municipal bargains  employers  on b e h a l f  was  of i t s  today.  2.  T h e B.C. C o n s t r u c t i o n  The several  The o n l y  by t h e i r  bargaining  The O k a n a g a n - M a i n l i n e  the benefits  formally  with  employees  was a d a m a n t  the union  t o resume  T h u s , no t y p e  area.  basis.  strike  strike,  t o be i n c r e a s e d year.  struck  to conduct  employees i n t h e i r  became d e a d l o c k e d  refused  negotiations  following  sector  However, t h e union  a protracted  concluding  demand a n d s e t a b o u t  of private  t h e two p a r t i e s  municipality  the  this  m u n i c i p a l i t i e s were  After  other  refused  construction employer  four),  before  formed  1970 ( R o s e  Industry  industry  associations  i n B.C.  ( a t one t i m e  the Construction 1976).  had been  These  Labour  a s many  Relations  previous  represented as  twenty-  Association  associations  by  was  had been  a  31 mixed  associations  employers  a wide  training,  and  dismally  individual separate  no  lobbying  could  control  whipsawing  not  The  to  little  being  and,  as  the able  as  non-union  education, had  bargaining.  failed  These  customers  pressuring  association  and  conclude  to  the  customer's  complete  possible.  members, the  a consequence,  and  However, they  construction  leave  individual  union  including  1976).  delay  ever  As  the  result upward  association  was  a  had  union  spiralling  costs.  centralization  difficult  by  Employers  were  and  contractors.  trade  services  prevent  over  construction  both  multi-employer  agreement, thus as  provided  (Rose  contractors  with  myriad  had  v a r i e t y of  in undertaking  associations  project  which  the  unions,  of  bargaining  fragmentation  fragmented  each  both  On  one  of  was  both  made e v e n  employers  geographically  the  other  representing  side a  of  and  and the  single  more unions.  between table  local  of  general  were a  single  craft. In  1968  occurred to  the  up  being  a particularly  when t h e  6%  percent.  In  the  to  by  wake o f  costs  discouraging  further  of  B.C.  negotiations pointed  out  were  federal  increases this  becoming  a  study  industry  advantages  a  to  to  ranging  i n the  hold  18.5  and  province,  1976).  wage  increases  guidelines,  realizing  examine  formally  negotiations  from  unrealistic  (Rose  of  government  outcome,  investment  began  i n the the  the  grant  construction  Council  round  a s s o c i a t i o n , attempting  advocated forced  disastrous  ways of The  that  to  38 B.C.  were the  Employers'  improving  Council's  accredited  ended  findings  association  32  could the  provide  Council  employers.  requested  accreditation Before Council  of  such  then  new  employers"  any  current  association.  guidelines  to  association  sign  conclude The  In  to  how  be  set  but  break  instead  to  to  open to  active  role  to  the in  published  could  support  construction with  form  rights  in addition,  of  of  Relations  i n CLRA was  an  to  entirely  Labour  assumed  Purchasers  committee  about  dedicated  construction  to  Employers'  the  remain  CLRA  were  association united  to  agreement.  negotiations  were  stoppage  the  and could  be  3.  The  Coast  In  contrast  lumber  and,  of  agreement  before  Coast  the  i t s bargaining  contractors  association  were  findings,  enact  relations  Membership  join  negotiations.  a separate  which  to  passed,  Construction  Council  purchasers  negotiations  finally  project's  government  labour  would  assign  Employers'  pressure  the  the  a s s o c i a t i o n , ACA,  the  to  be  the  formed.  contractors on  could  that  1970  willing The  members d u r i n g not  of  provincial  and  employers*  ( C L R A ) was  contractor  asked  Columbia  relations.  encouraging  result  the  legislation  British  Association  that  a  legislation.  the  labour  As  formed  went  through  a l l CLRA m e m b e r s had  completed  for  Construction considered  Lumber to  several  the  i n the  industry  the  Labour  rounds joined.  first  time  Relations  a successful  of  turbulent  Then,  without  in a  1977,  work  Association  venture.  Industry above mentioned past  have  had  twenty  employer  years,  associations,  employers  multi-employer  in  bargaining  the on  a  a  33 regional  scale  commenced majority to  Research  impetus  the  climate  industry  T h e IWA  degree  since  the  Relations, The C o a s t  few  employers  few  employers, been  counteracting  values.  They  influence  has been  unrest.  Several  wildcat  marked  by  long  s t r i k e s have  plagued  1940s.  has been  a s s o c i a t i o n , now c a l l e d  t h e 1940s  by  to association  their  (Saunders actions  few o f them i n turn  have  1979).  share  t h e power small  of f i r m s ,  employers are  e a s i l y because  there  s i m i l a r v i e w s and i n the industry to  employers  Thus, u n l i k e  These  a s a way o f  These  relatively  and t h e y  a n d s u p p o r t t h e many  of the industry.  bargaining  relatively  and 1950s.  t h e CEO's o f t h e t o p h a n d f u l  power  Forest  the r e s u l t of o r g a n i z a t i o n a l  so s i n c e  then  by a  industrial  industry  and has been  to coordinate relatively  The  i s dominated  union  was m a i n l y a  characterized  industry  committed  Stuart  to the employers'  lumber  notably  about  behalf.  association  i t posed  lumber  smaller  concerned  prior  the International  of labour  o f much  companies  on t h e i r  has been  success of the employer  factors.  balance  an e m p l o y e r s '  of the Coast  and hundreds  Industrial  able  negotiations  of the  b y f o r m i n g R.V.  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  have  forest  Employers,  and t h e t h r e a t  1979).  i n o r d i n a t e l y high  strikes  War.  of the union,  of America  (Saunders  relations  are  t o form  of the strength  militant  an  World  bargaining  the u n i o n i z a t i o n  i n t h e b a l a n c e o f power, r e a c t e d  Woodworkers power  t h e Second  after  of t h e dominant  L t d . to undertake  The  Multi-employer  industry  of the employees  shift  result  t h e 1940s.  i n the forest  and d u r i n g  the  since  who  make  the construction  up t h e industry  34 where was  there  first  without  are  hundreds  formed),  each  a s t r o n g sense  employers  have  found  demands and  to  locking  their  out  4.  broad  case  bargaining  factors B.C.  being  three  outlined encouraged also  sole  third  formation  lasting  parties  government,  association  strength  explain  of  i s best  for  the  Coast  time  CLRA  themselves  lumber  coordinate bargaining during  not  strikes  account  or  when  f o r the  high  in British  Columbia.  forces identified the  extent  of  of  in  broad  the  based  have  there.  this to  had  a large  The  evidence  argument.  the  environmental  bargaining structure  of m u l t i - e m p l o y e r  impact from  these cases  factors  structures, made t h e  in  in  In a l l t h r e e  environmental  f o r c e s at work, which  which  there  were  multi-employer  arrangements.  including the wide  these  the  that r a t h e r than  factors  associations  and  do  determinants  in addition  organizational  Employer  at  province.  studies supports  the  structures  on  to  (1979) argues  above,  800  Studies  organizational  in this  the  Case  alone  bargaining structures  case  to  b a r g a i n i n g found  that organizational  shaping  the  factors  s t u d i e s help  Saunders  what  common g o o d ,  a common f r o n t  From  based  found  do  (over  employees.  H o w e v e r , a number o f above  the  to  i t much e a s i e r  Conclusions  of  employers  wanting of  present  Environmental degree  of  B.C.  i n B.C.  unions,  have  felt  customers,  Employers'  the  pressures  party pressures  of  provincial  C o u n c i l a l l of  bargaining structures.  third  the  In p a r t  t h a t can  whom  insisted  i t is  explain  the the  high  35 degree  of broad  addition,  based  t h e r e has  association  by  before  of the  those  demonstrated  their  1973  In  came f r o m  members than  (1970) the  the  resistance  to  the  In t h i s  employers  attributes force the  the  has  been  interests  government's  i n 1970  after  which  group's  bargaining  The  the  what  the  i s reflected and  in  which i t  enactment  t o b a r g a i n on had  hoped  been  (1976)  of  the  The  area  centralized for i t s  However,  thirteen  wide  rather  original  c o h e s i o n of  the  left  without the  opportunity  union  one  s e t t l e m e n t over  hoped  would  t u r n e d out  c o n v i n c e d of  association's  the  parity  the  be  instead  municipal employers.  gives  that  an  in  the  leapfrog  From  power  a  the  bargaining  to give that  the  point,  advantage  them.  description  party.  the  then  the  of  municipalities.  i t wanted  to the  have  f o r m a t i o n of  union  from  was and  c a s e , what  of a t h i r d  impetus  s t y m i e d by  and  bargaining  the  of  employers  o f power  Rose's  based  t o use  initial  u n i o n was  to get  centralized  the  i t enacted  best clauses  employers'  the  to put  accomplish i t s objective  the  balance  themselves  In  to  study of m u n i c i p a l b a r g a i n i n g  union.  contracts,  structure  commitment  Finally,  to broad  in a l lthirteen  gaining  last.  willingness  employers  the  would  whipsaw  internal  Columbia.  Code.  McKelvey's  bargaining  in British  employers  legislation  Okanagan-Mainline, basis  the  found  individuals.  encouraged  Labour  strong  by  commitment  accreditation  actively  been  bargaining  demonstrated  the  bargaining  of  the  f o r m a t i o n o f CLRA  successful  formation to the  Employers'  Council  association.  Not  only  clearly driving  was  pivotal  d i d the  Council  in  36  investigate labour  unrest  implement the  possible  and i n c r e a s i n g  the chosen  new a s s o c i a t i o n  work  solutions  to the industry's  labour  solution  costs,  a s t o how t o s u p p o r t  but i t also  by e n c o u r a g i n g  and by e d u c a t i n g  helped  contractors  consumers  contractors  problems of  during  of  to join  construction  construction  negotiations. Saunders forest  products  corporate  together  factor  t o form  association officers It factors  run.  presence  working  bargaining  of these  accreditation  special  legislation,  of t h i r d  product  i n an a s s o c i a t i o n  British  Columbian  today.  lumber  would  case  the formation  study the  wide  likely  format,  voluntary  executive 1979).  organizational of multi-employer degree of  Columbia.  Without the  organizational  pressures  from  such  employers  bargaining  affected  a  f o r the high  in British  commitment  as a  (Saunders  and  level  remains  the chief  companies  can account  parties  bargain  is  the organization  l e v e l s t o make m u l t i - e m p l o y e r  encouragement  of high  i n the association  of environmental  found  i n the  i n w h a t was o r i g i n a l l y  to encourage that  bargaining  the importance  In the Coast  forest  structures  group  a t t h e t o p , among  i s the combination  based  employers  and r e m a i n  of t h e major  bargaining  highest  identifies  from  originated  both  about  as t o whether  i n the long  commitment  writing  industry  commitment  determining  broad  (1979),  by l a b o u r bargaining  as  at the  work, and t h e unrest to structure i n  b e much m o r e d e c e n t r a l i z e d  than i t  37 IV.  Summary a n d C o n c l u s i o n There  a r e two major  bargaining  difficulties  s t r u c t u r e which  theory  of the determinants  First,  there  the  study  of bargaining These  variable  itself  research  needs  it  i s more c o m p l e x t o be c o n d u c t e d  i n detail  than  structure.  a r e not unique t o  make f u r t h e r l e a r n i n g below.  originally  on b a r g a i n i n g  Second, the  thought.  More  s t r u c t u r e and i t s  v a r i a b l e before  predict i t s determinants  general  we c a n  or the bargaining  outcomes  elicits. There  are three  researchers. information Beaumont  First,  major  methodological  there  i s a lack of s u f f i c i e n t  pertaining to bargaining  1980).  significant  Deaton  amount o f e x p l a n a t o r y i n their  dummy v a r i a b l e s w e r e  used  as p r o x i e s  unavailable  to the researchers  plant  data  level  additional their  information  might  have  f i n d i n g s as t o t h e c h o i c e  establishment information often  historical,  quantitative  analyses  of employees, increased  t h e problem  remains.  face  qualitative  that a the industry  equations.  as company  between  qualitative,  which  f o ri n f o r m a t i o n  s t r u c t u r e s by e m p l o y e r s .  i savailable,  came f r o m  regression  such  on c o s t s , number  (1980) noted  power  used  problems  s t r u c t u r e (Deaton and  and Beaumont  dummy v a r i a b l e s t h e y  are  which  s t r u c t u r e but which  are discussed  of a  of bargaining  problems  a s an i n t e r v e n i n g o r m e d i a t i n g  confidently  the study of  the formulation  and e f f e c t s  are methodological  problematic.  role  hinder  with  level etc.  These  t h a t was rather  than  This  the significance of  single  or m u l t i -  Furthermore,  even  i f the  o f how t o i n c o r p o r a t e  what  and i n t a n g i b l e v a r i a b l e s  into  38 Another  difficulty  structure  i s the  structure  has  of  combination than  the  so  bargaining" the  degree  and  Angle  of  of  Environmental  determinants  has  different  a  bargaining  relationships bargaining  so  slightly  that  each  from  making  For  example,  poor  economy  may  not  "a  always  union  be  the  density,  competition  i n the  clear leads  case.  the  new  influence  researchers  i n d u s t r y , the  the  study  One  to  must  union  product  market,  and  forth . Perry  ( 1 9 8 1 ) comment t h a t  many v a r i a b l e s i n t e r v e n e environment,  bargaining  relationships Identifying completely control This  be  a l l of solve  for  has  to  their  proven  many i m p o r t a n t  are  difficult the  size  and  other  qualitative  often 1966).  cannot  the be  possible  problem.  be  the  as  outcomes simply  Something studying  then  the  they  often  m u s t be  bargaining part  of  too  the  for  as  that  i n t e r v e n i n g v a r i a b l e s does  more d i f f i c u l t  done  are. not to  structure.  the  solution.  variables, including organizational forces, reliably.  cohesiveness  government  and  s t r u c t u r e , and  measure  which  rivalry,  the  i t is likely  r e l a t i o n s h i p between  effects while  to  to  i n the  conceptualized  the  Too  as  the  the  i n combination  prevents  predictions.  observe  militancy,  This  with  variables.  permutation  last.  decentralized also  other  of  structure act  and  theoretical  complexity  with  bargaining  associated  encourages  of  the  readily  variables  employers,  degree  the  centralized bargaining  v a r i a b l e s such importance  Organizational  of  as  the  patterns  observed  by  the  degree  of  to  structures union  such  and  political  negotiated  elsewhere  researcher  (Levinson  39 The  next  difficulties products unions, well  two c h a p t e r s outlined  industry  information structure industry  above.  and p r e s e n t  employers,  as d e s c r i b e  attempt They  t o overcome describe  qualitative  and e m p l o y e r  some  of the  t h e B.C.  information  associations  working  forest about the i n i t as  the 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 . With  i t i s hoped  of c o l l e c t i v e of B r i t i s h  that  a more c o m p l e t e  bargaining  Columbia  understanding  i n the forest  c a n be h a d .  this  products  of the  40  CHAPTER  I.  T H R E E : THE FOREST PRODUCTS INDUSTRY OF B.C. I N D U S T R I A L R E L A T I O N S ENVIRONMENT  AND  ITS  Introduction As  stated  objective  of t h i s  environmental industrial  changes  types  determinants,  of  chapter  British  Columbia  determinants structure The  chapter  products  of the forest  with  structures sawmilling,  of each  a description  how the  purpose  industry  these  of  theoretical  bargaining  of the economic  industry  of  British  of the industry The  environment  a description  o f t h e component and paper  The  products  to the province.  I t contains  and p u l p  can a f f e c t the  a description  the competitive  industry.  outlined the  involved.  products  of i t s importance  deals  to affect  about  o f B.C.'s  parties.  the forest  to understand  with  i n the  their theoretical  structure  of the p a r t i e s begins  chapter  structures,  be e x p e c t e d  and i n c l u d e s  discussion section  may  structure  The p r e v i o u s  i s to describe  whether the  prevalent  the negotiating  i n order  paper, the  o f t h e 1980s b r o u g h t  bargaining  between  choices  environment Columbia  industry.  a n d how  o f power  this  changes  i n the bargaining  of bargaining  balance  to this  i s to determine  and o r g a n i z a t i o n a l  products  various  research  r e l a t i o n s environment  significant forest  i n the introduction  second  of the forest of the  industries:  production;  and a  logging,  and a d i s c u s s i o n  of  41  the  competitiveness  Third,  of both  the p o l i t i c a l  described  the timber  environment  affecting  focussing i n particular  intervention concludes highlights  changes  the industry i s  relations.  a d i s c u s s i o n of the l e g a l  recent  markets.  on t h e g o v e r n m e n t ' s  i n the industry's labour  with  and p r o d u c t  i n both  The  environment  accreditation  chapter and  and  picketing  legislation.  II.  The E c o n o m i c A.  D e s c r i p t i o n o f The The  forest  comprised paper, being  Environment  products  of three  a n d wood  regions  separate  products  regions: differ  statistics collected  industries  t o such  collected  component  mountain  range,  Interior  i s the rest  thirds: The  several  from  (hemlock,  by p r o v i n c i a l  Vancouver  production  and f e d e r a l  zones  Different  tree  species  These  two  and  other  governments are  The  interior  roughly regions.  c a n be a t t r i b u t e d  to  a r e two  d i f f e r e n c e s i n a number  dominate  and f i r on t h e C o a s t  region  border.  and t h e I n t e r i o r  creates  two  of the Coast  and n o r t h e r n  the Coast which  west  latter  and i t i s d i v i d e d  o f t h e two r e g i o n s  First,  climatic  cedar  central,  of the  The C o a s t  to the Alaskan  of the province  the south,  factors.  areas.  that  I s l a n d and t h e a r e a  separation  distinct  an e x t e n t  and  divided into  and t h e I n t e r i o r .  s e p a r a t e l y f o r t h e two a r e a s . Vancouver  Columbia i s  ( l o g g i n g , pulp  - the largest  the Coast  includes  of  i n d u s t r y of B r i t i s h  s a w m i l l i n g ) , a n d c a n be p h y s i c a l l y  distinct  in  Industry  i n each  and s p r u c e ,  region  pine  and f i r  42 in  the  also  Interior).  mean h a r v e s t i n g  Coast  logging  because heavy  of  can  climatic  mean t h a t  trees  Coast  entails  the  use  from  the  Coast  (Bernsohn products sold. take  their  employers,  by  on  lack  a result,  from the  and  Coast  used  to the  effectively  Canadian  of  the  year  however,  for  loggers.  season  i n the  also  Interior  differences  in  strategies  terrain,  and  equipment. the  Interior  water  rail  isolated link  coastal  wood  producers  transportation  American  market.  cut o f f from  the  transported  prairie  was  for interior  to which  transportation, instead to the  regions.  Interior  of a completed  the markets  two  growing  the markets  who  were  as  Interior  layoff  smaller  1950s,  product  rail  In t h e  harvesting  t h e mid the  are  the  f o r most  a shorter  well  finished  water  product  as  facilities  to As  differed  same a g e  different  due  1981).  between  there.  and  this,  until  Employers  cheap  and  of  up  winters  the  sawmilling  Second,  differ  i n the  mean w e e k s o r m o n t h s o f  of  the  winters  uninterrupted  conditions  on  different  proceed  can  harsher  seasons  the milder  snowfall  Harsher  than  Longer,  to  Interior  Coast  and i t s  much o f  their  provinces  (Bernsohn  1981). Third, operations  the  differs  approximately Interior  number and  two  are  Interior.  Coastal  and  logging  f o r e v e r y one  operations  pulp  between  paper  about  on  twice  size the  two  logging  sawmilling  the  Coast.  the  also  f o r longer  sawmilling  Today  there  operations  However,  average have  and  regions.  and  operations  operations  of  size been  than  of  i n the  coastal those  i n the  integrated  have  are  interior  with  43 operations. Interior  B.  Pulp  i n the  second  sawn  Columbia  plays  B.C.  The  lumber  exports.  pulp.  Community where  province. of  In  a l l jobs  forest  in  i s the 1987  Report  sectors:  one  Columbia  1988)  direct, which  extracting  or  refining  is  as  employment  s e r v i c e s to  support  Employees  of  Forest  B.C.  British  30%  In  and  and  of  60%  of  a l l lumber  exported  45%  f o r B.C.  the  1986  in  nearly  f o r 64%  primary that  owed  of  forest  European  11%,  and  or  industry  9%  of  and  of  can  one to  be  divided  induced.  Direct  i s created  Indirect by  the  forest industry those  fifth the  (MacMillan-  f o r e s t products  Service,  the  existence  indirectly.  Employment  in  a minimum  their  forest products. that  largest  1986).  i s i n the  g o o d s and  the  produced  Japan,  indirect,  i s that  third  harvested  l a r g e s t markets  (Percy  newsprint,  1986).  a l l logs  estimated  employment  defined  the  Industry  of  the  r e s p e c t i v e l y 77%,  number  i t was  and  accounted  States,  1986  in British  Annual  in  accomplishment.  mills  industry either directly  Bloedel three  United  sent  began  Products  Canada  produced  The  Economic  Forestry  and  Columbia  are  were  of  lumber  products  exports  the  pulp,  in this  f o r 48%  i n Canada  wood  Forest  wood  role  province's  Canadian  the  (Statistics  a major  British  only  l a r g e s t producer  of  lumber  sawn  on  world's  f o r e s t s accounted  Canada.  production  1950s.  l a r g e s t producer of  all  of  i s the  producer  B.C.  paper  late  Dependence Canada  all  and  into  industry, employment  purchase  of  operations.  employed  in  the  44 transportation  of  the  construction  all  considered  industry.  consumer  goods  sized  B.C.  rely  however, the  upon  forest  distributed proportion smaller  logging  or  cyclical  British George  of  employment  the  of  province.  B.C.  for or  upon  Port  Alberni  i n which  the  more t h a n  forest  are  for to  the  the  impact  of  evenly greater  towns For  are  located  often this  disputes  rely  two  can  Island  on  have  and  rely  a  of Prince  examples  (Percy  in  reason,  communities  residents  industry  in  British  industry  are  to  1975).  a l l jobs  not  smaller  province  products  (Reed  of  Vancouver  half  those  existence  A much  labour  on  one  health  entire  the  small  image of  livelihood.  protracted  by  industry  of  are  forest demand  their  this  where  their  I n t e r i o r of  i n the  for  occupations  e f f e c t u p o n many o f  i n the  to  percent  economic  dependent  centres milling  the  the  in  roads  i n d i r e c t employment  one  twenty  industry  industry  jobs  Columbia.  communities  upon  i n the  i n most  a somewhat m i s l e a d i n g  throughout  downturns  devastating  forest  industry Forest  d i r e c t and  involved  logging  forest  ratio  i s approximately  the  those  camps, or  i n the  The  that  and  r e s u l t s from  services. between  pulp,  indirectly  indirectly  estimate  promotes  Columbia.  the  and  towns  rough  employed  or  or  logging  employment  employment  The  lumber,  mills,  be  Induced directly  induced  of  to  employed  medium  logs,  of upon  1986).  45 III.  The  A.  Competitive  Industry The  Environment  Structure  first  logging  and  established  i n the  around  i s today Vancouver  what  Vancouver paper in  Island.  mills  the  were  Interior  The  of  growing  mills  mills  closing  World  War  completion  on  the  too that  lumber  logging  rapidly  the  operations  when  the  lumber  and  prices rose,  A f t e r the  notably  i n the  Interior  between  Prince  market  link  Vancouver  Interior (Bernsohn  [insert  and  established  early years,  sawmills,  i n the  pulp  sawmills  increase  and  first  i n d u s t r y was  a sharp  rail  century  s o u t h e r n t i p of  was  of the  were  1920s.  when p r i c e s f e l l .  Interior  operators  and  here The  operations  of the n i n e t e e n t h  s p o r a d i c a l l y during  there  operating  American  built.  number o f grew  half  I t was  i n the  Columbia  central  latter  sawmilling  cost  on  end  i n the  where George  IV a b o u t  the  number many  the  Second  of the i n the  i n 1952  gave  access to the  1981).  Table  British  and  number  the Coast  effective  of  in  here]  large  46 T a b l e IV Lumber P r o d u c t i o n B.C. Year 1951 1955* 1960* 1965 1970 1975 1980 1985  Number o f Employees  Number o f Establishments * * * 103 86 92 119 120  * * *  12,021 11,727 9, 1 2 2 12,963 9,119 B.C.  Year 1951 1955 1960 1965 1970 1975 1980 1985 data Source:  Number o f Establishments  *  Coast  Interior Number o f Employees  * *  *  * 563 308 228 236 229 not available  Output ( 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  13,139 11,864 12,467 18,007 15,683 f o r these  Output ( 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  years  S t a t i s t i c s Canada, Canadian F o r e s t r y Statistics, 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 than  of these  mills  ten or f i f t e e n  men  feet  began  as t h e i n d u s t r y e n t e r e d rights  established larger,  established material could a  became  the  annual  or  debark in  eight  and  them  production,  remained  t h e government  which  and paper  encouraged  without  f o r lumber, favoured  Each  i n d u s t r y was  t o ensure  Extra  amounts were  and c o u l d  to logs  utilization  s a w m i l l was a l l o c a t e d  raw that  into  produce  of  a percentage  year  of  b y t h e B.C.  also available  barkers  products  adequate  resorting  efficient  installed  being  t h e government e s t a b l i s h e d  as a bonus  and c h i p p e r s ( t o  chips  ready  25,000 b o a r d  owner  barkers  agreed  t o meet t h i s  and c h i p p e r s  f o r use  feet  up t o be u s e d  a fixed  percent  could  i n an  grant  goal  use of by and paper  be up t o o n e  third  H o w e v e r , an o p e r a t o r ' s  quota  of the annual  t o e x p a n d , an o p e r a t o r  timber  as raw m a t e r i a l f o r p u l p  h i s allowable harvest  the regular quota.  production  t o make e f f e c t i v e  the smallest trees i n h i s original  more t h a n  Centralization  shift.  a sawmill  grinding  order  that  production)  installed  even  used  i f the sawmill  hour If  system  In order  mills  l o g s and t u r n waste  pulp  time  a l l o w a b l e c u t , e s t a b l i s h e d each  Service.  reward  1981).  thousand  operations.  f o r t h e new p u l p  resources.  Forest  quota  i n the Interior.  g r a n t i n g system  forest  At t h i s  period the pulp  be o t h e r w i s e  a few  no m o r e  t h e 1960s and c o m p e t i t i o n f o r  fierce.  a complicated  this  only  p e r day (Bernsohn  more e f f i c i e n t  During  s m a l l , many e m p l o y i n g  and p r o d u c i n g  board  timber  of lumber  were  needed  allowable harvest.  access  t o more t i m b e r  In and  48 since  each  operator's  alternative of  was  i t s quota As  as  of  acquire  of  the  being  being this  used  chipped way  paper  the  mills  British  and  and  and  timber  chips  large forest today,  these  which and  pulp  much o f as  raw  less  policies  production waste  available are  used  product  paper  as  products  companies  and  put  i n pulp  from  the and  l o g can  effective  use  of  waste  products  Second, d i v e r s i f i e d  as  the  operating  in  horizontally large  they  Several  Smaller  as  produce  advantages  discussed close  l o g s , not  production.  lumber  be  and  make m o r e e f f i c i e n t  In  production  turned  a raw  i n pulp  government's  of  of  In  well  which  First,  production  50%  were  mills.  possess  newsprint.  them.  than  are  companies  practice  from  trees  B l o e d e l , CANFOR, F l e t c h e r  Crestwood,  can  to  and  began  many m o r e  industry.  and/or  into  m a t e r i a l i n the  efficiency.  control  close  investment  i n t e g r a t e d companies.  resources  the  pulp  and  the  harvest  i n t e g r a t e d companies  lumber  the  of  These  above,  lumber  to  MacMillan  they  for  centralization  integration  to  the  sold  the  accrue  of  assume  farseeing operators  of  encouraged  integrated.  lumber  utilization  and  only  Increasingly smaller  C a n a d a , W e l d w o o d , and  reserves  finished  the  and  the  vertically  the  pressure  resource,  encouraged  Columbia  Challenge  fixed,  sawmill  government  production  government  of  another  operations.  i n the  diversification Most  this forest  integrate their  were  was  well.  a result  utilization to  to  percentage  pulp  and into  a d d s much t o companies  a  are  use  f i t for  addition,  can  be  used  newsprint.  As  lumber  cost  this  company's less  exposed  to  49 financial The  risk  market  (Forest  prices  growth  invested  Sales  of chips  mill's  revenue  added  source  today  than  shipments fallen  to  remained  large  firms  when  ago.  (Statistics  has a l s o  markets  1978).  fewer  The t o t a l fewer  than  t h e number  is  fragmented:  of  the market  their  are  soft.  Despite  small  share fifty  this  sawmills  of  industry  employees  has  Products  i n B.C.  Canada, v a r i o u s output  7,449 m i l l i o n  has  Group  declined  1627  years).  feet  mills 216  Despite  more t h a n  board  exist  doubled per year  feet. of lumber  mills have  has d e c r e a s e d climbed  over  dramatically,  i s n o t an o l i g o p o l y  i n which  a few v e r y  the entire  Instead,  the  a small while  helped  6 2 7 , and i n 1988 o n l y  production figures  control  related  have  of  I n 1962 t h e r e were  i n t h e number o f m i l l s ,  board  which  The s a l e  lumber  revenue,  t h e 1950s.  industry  not  can r e p r e s e n t 20-30% of a  i n 1971 t h e r e were  and a v e r a g e  market.  c a n make t h e d i f f e r e n c e  P r o d u c t s Group  1965 and 1987 f r o m  lumber  mills  of sawmills operating  since  15,888 m i l l i o n  time  of chips  firms  3 5 % i n 1963 t o 1 2 % i n 1976 ( F o r e s t  operation,  decline  integrated  i n business.  waste  by s a w m i l l s w i t h  Although  the  (Forest  The number  between  wood  of p o t e n t i a l  continuously  the  from  are generally  and paper  and s u r v i v a l  two d e c a d e s  from  1978).  mills  pulp  sawmills stay  failure  and p u l p  large  p r o d u c t s i n t h e form  between  i n one c o m m o d i t y  1978).  of these  i n and b u i l t  many s m a l l e r  in  of lumber  P r o d u c t s Group  The  waste  due t o t h e d o w n t u r n  market.  minority  of companies  a g r e a t many s m a l l  control  companies  industry one  produce  half the  50 other the  half  o f B.C.'s t o t a l  three  largest  B.C.  accounted  f o r 30%  of  ten  p r o d u c e r s ' 58  Columbia's Lumber  Directory  supplied  by  159  lumber  total  mills  lumber  participants  and  lumber  more t h a n  a hundred  fold  pulp  i s less  competitor  pulp the pulp  World  a total  War of  and  paper  mills  Coast  and  later,  and  paper  twenty  from  20  V,  mills, The  top  of  Canadian  the market  is  mills.  here]  paper  mills  three  i n Table  industry  division  has  of  f a r fewer  production  vary i n production  largest  to smallest,  times the  size  of  capacity the  largest  i t s smallest  (see Table V I ) .  Before operating  than  (Madison's  163  V about  a much m o r e e v e n  Whereas  mill  operating  p u l p and  capacity.  seen  i n 1988.  r e m a i n i n g 42%  Table  the  be  of a l l B r i t i s h  capacity  The  companies  can  capacity  r e p r e s e n t 58%  1989).  contrast,  As  producers, operating  lumber  production  [insert In  lumber.  five  II there four has  p u l p and  p u l p and grown  i n the  industry  were  1960s,  mills  three  paper  steadily  i s dominant  paper  only  mills. over  i n the  T a b l e VI  today.  operating  about  The  here]  number  time, f i r s t  Interior  Columbia . [insert  companies  There in  where are  British  now  on the  of  51 Table V B r i t i s h C o l u m b i a ' s Top T e n L u m b e r Company  Name  Producers  Number o f  Mills  Output 4941 4375 3098 2773 1750 1515 1475 1465 1230 1200  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 MacMillan Bloedel L t d . 7 Northwood P u l p and Timber L t d . 4 International Forest Products L t d . 7 Slocan Forest Products 5 Westar Timber L t d . 5 CANFOR L t d . 4 Weyerhauser Canada L t d . 6 Note: The m i l l s o f t h e s e B.C. s a w m i l l c a p a c i t y . Source: Laurence Cater D i r e c t o r y , (1989).  ten firms represent ( e d . ) , Madison's  Mfbm  59% of  Canadian  total  Lumber  52 Table VI B r i t i s h Columbia's Primary  Pulp  Fletcher  Pulp  and Paper  Producers  Producers  Challenge  Output  Canada  i n T o n s P e r Day  -Crofton -Campbell River -MacKenzie Ltd.  800 510 500 1450 750 650 1100 200 1200 1130 670 450 900 900 700 580 560 525 400  Northwood P u l p and Timber CANFOR - P r i n c e G e o r g e - Port Mellon M a c M i l l a n B l o e d e l - Harmac - Alberni Weyerhauser Canada L t d . Skeena C e l l u l o s e I n c . (Westar) Western Pulp L t d . P a r t n e r s h i p - Squamish - Port Alice C a r i b o o P u l p and P a p e r Co. (Weldwood) E u r o c a n P u l p and P a p e r Co. Canadian P a c i f i c Forest Products L t d . Crestbrook Forest Industries L t d . C e l g a r P u l p Co. ( W e s t a r ) Q u e s n e l R i v e r P u l p Co. Finlay Forest Industries L t d . Newsprint MacMillan Fletcher  Producers  Output  Bloedel - Powell River - Alberni C h a l l e n g e Canada - C a m p b e l l - Crofton  Source: Laurence Cater Directory, (1989). The Columbia  pulp  and p a p e r  a r e among  mills  a r e modern  Those  on t h e C o a s t ,  their  counterparts  (ed.)»  mills  t h e most  and have built  that  new c a p i t a l  i n the Interior  efficient  market mills  of  Lumber  British  i n the country.  nearly f i f t y  s e v e r a l of these  investment.  Canadian  some o f t h e l a r g e s t  However, t h e c u r r e n t buoyant ensuring  2010 1050 1250 1200  River  Madison's  i n the I n t e r i o r ,  i n T o n s P e r Day  years  a r e now f o r pulp undergo  These  capacities. earlier  beginning  than t o age.  and n e w s p r i n t i s refurbishing  and  53 The  c o n s t r u c t i o n of  undertaking. this  Mills  are  translates into  criteria and  to  Very  undertake  preventing  paper  being  these  the  wide  during  the  timber  reserves  needed  to  longer  readily  paper the  to  near  as  the  once  current  Degree  of  Studying W.J.  Mead  the  bidding  on  timber  when t h i s  rights  there of  are  similar  only  There but  lasts  are  there  As that  will  mills  B.C.  laws  has  small size  on  and  never  been  pulp  the  mill  of  Coast  are  no  these of  are  Product  the  outbreaks  in place  pulp  pulp  substantially  and in  decline closed  was  of  financial timber  the  Northwest,  norm  in  the  same w i t h  the  f o r the  most  (Bernsohn  part 1981).  competition  among  resources.  However,  b e c o m e s much  set  of  prohibiting a case  Markets  Pacific  agreements"  another  new  over.  conducted  p r i c e of  other  eventually  the  the  i s that  number  i s much t h e  and  until  the  and  capital The  result  increase  collusion  being  a  n u m b e r may  "gentlemen's  happens, the  competition  fixing  rights.  r e g u l a t i o n by  competitors  l a r g e modern  f o r e s t i n d u s t r y of that  the  projects.  boom c y c l e i s  (1966) s t a t e d  Occasionally  a  the  efficient  have  boom m a r k e t  Competition-Timber  for timber  forged.  i n B.C.  market  bidding  under  feed  Instead,  older, less  B.  of  current  financial  hence  s c a l e c o n s t r u c t i o n of  i t is unlikely  operating  future.  the  capacities,  companies kinds  i s a major  f o r maximum e f f i c i e n c y  a c c e s s i b l e i n B.C..  entry,  mills  today  built  few  mills  barriers  mill  huge p r o d u c t i o n  name, " m e g a - m i l l s " . resources  a new  higher  and  agreements  can  be  collusion  and  bid  prosecuted  for  the  54 breaking  of  these  participants of  illegal  and  (Mead  The  newsprint,  and  theoretical on  buyers  and  prices.  product  market  markets  f o r raw  logs,  sawn  are  lumber the  of  the  by  adversely especially vis  the  IV.  vary  by  and  demand.  cyclically.  residential  prone  of  housing  an  economist's  These there  Prices  starts  further,  of  are to  affect  products  of  logs  raw  cyclical  which by  many  of  are  these and  pattern  influenced  by  in turn i s  the  commodities  the  products  prices  i s heavily  in foreign  value  The  this  a l l three  swings  i n the  to  products  r a t e s and,  Prices  lumber,  whom i s l a r g e e n o u g h  supply  interest  i n which  running  i s quite  nearly undifferentiated  f o r these  changes  of  signs  exchange Canadian  overall can  health  also  be  rates, dollar  vis a  American.  The A.  of  these by  affected  a l l examples  markets  especially  economy.  finished  market  ignore  a smooth  however  a c o m p e t i t i v e market.  none  to  demand  number o f  affected  of  solely tend  the  of  are  commodity  commodities  since  pulp  to  maintaining  i n the  sellers,  determined  of  I t seems t h a t  willing  1981).  ideal  Prices  are  Bernsohn  wood  world  1981).  alike  i n favour  1966,  Competition different.  (Bernsohn  government  behaviour  oligopsony  trade  laws  Political  Labour The  industry strikes.  Environment  Relations  labour  Climate  relations  c l i m a t e i n B.C.'s f o r e s t  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 Person  days  lost  i n the  frequent  products  and  l o g g i n g , lumber,  and  bitter pulp  55 and of  paper total  years  industries days  lost  i n which  person  days  o f t e n account  i n the province  there  lost  i s a major  c a n be w e l l  [insert When a p o r t i o n these  industries  over  Table  half  province.  This  i s due t o t h e f a c t  sectors are linked  When l o g g e r s s t r i k e mills'  industries sale  are also  o f wood  large  portion  mills  no l o n g e r  sawmills supply  a need  a r e on s t r i k e ,  Labour  by t h e i r  I f pulp  have  which  f o rthese  and paper  (Percy  likely  mills  one segment  mills  t h a t the employer  forest  of i t .  of the forest  b y a common o w n e r  both  logs.  and p u l p  are shut  down, a  the pulp when  are without  their  t h e raw  into  industry  Thus, two o p e r a t i o n s  products  and employer.  and paper  others  products  industry are Thus,  a g a i n s t whom t h e s t r i k e  a pulp  The two on t h e  Conversely,  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  owns a n d o p e r a t e s  -  and  1986).  i n more t h a n  linked  and paper  lumber  now r e p r e s e n t n e a r l y h a l f  operate  often  throughout the  interdependence  f o rchips.  pulp  mills  segments  l o n g and  i s c u t o f f because  many o f t h e f i r m s i n B . C . ' s  different  spread  that the pulp  and paper  because  in  of these  o f raw m a t e r i a l s i s c u t o f f .  of s a w m i l l revenue  of chips,  material  can q u i c k l y  i n one o f  b y a common r a w m a t e r i a l  linked  chips.  total.  here]  or are locked o u t , both  supply  During  dispute the total  the effect  of a t t r i t i o n  paper  year.  of the province's workforce  i s on s t r i k e ,  proportion  the provincial  V I I about  wars  and  i n a given  forestry  protracted  lumber  f o ra sizeable  mill  i t i s  i s mounted  as w e l l  as  56 Table VII Labour D i s p u t e s Year  in British  Logging  1 075 1958 1959 2 245 1 128 1960 75 1961 1962 0 0 1963 322 1964 190 1965 1 849 1966 1967 218 4 005 1968 6 909 1969 1970 1 837 14 488 1971 117 142 1972 1973 1974 1975 * 1976 * 1977 * 1978 * 3 460 1979 1980 610 1981 1 000 0 1982 7 750 1983 1984 1 030 1985 2 550 * data for these Sources:  Columbia  Wood Industries 33 7 4 7 1 363 242 405 718 5 51 9 2 0 0 2 5 0 4 1 950 86 6 2 4 268 709 298 840 18 737 42 143 2 085 547 314  1958-1985  Pulp& Paper 128 2 4 8 0 0 0 0 0 0 450 15 5 2 2 0 472 4 478 222 568 866 18 9 0 2 63 625 * 90 5 0 0 * 1 026 6 2 5 11 3 7 5 * 125 0 0 0 * 7 125 * 97 720 89 9 5 0 4 730 1 280 1 171 2 8 0 395 910 0 117 4 6 0 1 530 29 2 6 0 379 330 15 2 7 0 4 600 6 850 years unavailable.  B.C. Total 325 211 1 423 268 35 8 4 8 34 6 5 9 32 987 24 056 181 7 8 4 104 4 3 0 272 922 270 894 303 317 406 645 1 684 463 276 030 2 120 8 4 8  *  645 389 2 787 987 769 395 125  * * *  780 610 130 510 390 630 910  X of Total 50 . 1 95 . 8 4.3 2. 1 29.0 9.1 1 .0 1.5 38. 1 82.8 74.6 7.4 15.8 6 .3 32.2  *  * * * *  29.6 1 .7 56 . 3 11.9 5 .0 47 . 9 11.1  Department of Labour, Annual Report, M i n i s t e r of Labour, Province of B r i t i s h Columbia, 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  sawmills. (until at  In such  very  recently)  paper  industry  of secondary unions  which  to eliminate  could  changes  and t h e i r  could  by b o t h  bring  the picketing  practice.  effects will  mean  take  place  of the  t h e IWA  effectively  that  legally  I t was b e c a u s e  picketing  this  a t one l o c a t i o n c o u l d  picketing  sites.  to a standstill  changed  a strike  that  any o f t h e employer's  prevalence and  a case  and t h e p u l p  the entire  legislation  was  The d e t a i l s o f t h e s e  be d i s c u s s e d  later  in this  chapter.  B. Government I n t e r v e n t i o n Industrial Relations Because forest the  products  disputes.  sponsored forest  their  In parity  u s e on b o t h  disputes  economic  i n the health,  appointed  a r e two methods  disputes  the pulp  mediators  by w h i c h  are resolved.  and t h e s o l i d  and government many  A b r i e f summary  wood s i d e s  of the  follows.  with  requests  of labour  Industry  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  Government  labour  Product  on t h e p r o v i n c e ' s  1967, the Southern  effects  impact  i n q u i r y commissions  industry  industry  the Coast.  on t h o s e  intervene,  appointed. parties.  I n t e r i o r IWA  As t h e s t r i k e  communities  by t h e p e o p l e  government  the  industry  p r o v i n c i a l government  these  of  of the serious  i n Forest  began  of these  dragged  settlement  on i n t o  t o be f e l t .  communities  a government  H i s proposed  locals struck  f o r wage 1968 t h e  After  several  t o have t h e  conciliation  officer  was e v e n t u a l l y  was  accepted  by  58  The Labour  next  Minister  settlement. settled to  work  a  The settled  a  1981  government  strike,  the  as  reach  what  the  the  appointed  dispute,  the  t h e i r own the  1975  parties  and  parties  after were  Again  although  nearly  themselves. and  could a  six  not week  l e g i s l a t e d back a mediator  there  was  was  no  s i x w e e k s , was However, the  eventual  i n the  government  nearly  back  final  work  to  finally  threat  work  of  legislation  settlement  being  mediator  helped  lost  to had  a  most  recent been  Strike".  issues,  middle  dispute  of  and  work  forest  IWA  by  most  August  the  moved  to  in  a  the  reached  lockout  portion  of  on  July  premier the  giving  the  dispute  industry  22,  "Two 1986  being  sides  came  just  FIR  involving  the  had  the  industry. the  over  to  IWA  Billion several  contracting  threatened two  there  settlement vote  the  negotiations  Although  the  s a l i e n t one  bring  industry  1983.  industry  struck  the  forest  stoppage,  Coastal  termed The  after  concluded  down t h e  has  appointed  s i x months  shut  unresolved By  was  settlement  employers to  Dollar  a mediator  in  factor  a  a  on  time  The was  time  was.  no  power  next  1974  intervention  dragged  the  a  parties  lasting  parties  determining  parties  been  mediate  then  the  p r o v i n c i a l government.  Once a g a i n  had  c a l l e d i n to  The  eventually  on  settlement  1972.  involved.  by  i t  was  in  and  The  in  occurred  failed  industry  strike  the  get  stoppage  when  forest  wide by  to  a  attempts  their differences  industry  was  dispute  t h e i r own.  settle  used  IWA  James Chabot  His  on  settle  to  major  out.  intervene  together.  The  in  59 premier In  a p p o i n t e d a mediator but  early  this  October  time the  November  IWA  would  to f i n d  commission. drafting  agree  t o end  reached  inquiry  commission  specifically scheduling, released  the and  record  disputes  on  1970  and  were  mediators.  on  agreement  government  the  i n 1974  1974  side  wood  out,  the  5, an  in  began  1986  the  independent  dispute,  flexible  systems.  The  the  into  of the  commission  labour  industry  i n t h e p u l p and  a i d of government also  commission  i s very  side.  disputes  settlement  inquiry  issues  intervention  labour  with  of  November  1988.  paper  solid  In l a t e  i n which  the  compensation  i n January  settled  The  industrial  paper  appointed  l e d to the appointment  into  the  outstanding  issue  of of  differentials. The  pensions. issued ignore. job,  of  person  December  of c o n t r a c t i n g  t h e p u l p and  to that  industry  shift  add-on  On  but  mid  December, the p r e m i e r  t o examine  issues  i t s report  The  In  was  strike.  In  recommendations  legislation.  a tentative  three  him.  mediator,  to a meeting.  the  the  in early  t o work  parties  an  not  a way  Finally,  back  t o meet w i t h  the premier suggested a second  members v o t e d t o r e j e c t  similar  refused  the premier appointed a s p e c i a l  commission IWA  FIR  two  pulp unions struck  After  a back  three  t o work  S i x weeks  the p a r t i e s  months  i n 1975  of s t r i k e  order which  later,  reached  after  the  nearly  a negotiated  over  the  action  two  issue  the  government  unions chose  five  of  to  months o f f the  settlement.  60 The without  next work  locations However, and  over  begun  dispute  This  ended.  settlement  ordered  striking  refused  t o comply  government  them  pulp  workers  workers  and c o n t i n u e d  last  two r o u n d s  t o work.  9.  dispute.  The  9 and t h e the last  strike  The and  unions  another  t o do u n d e r  Assistance  t o end  on s t r i k e .  an a g r e e m e n t  two weeks.  on t h e the Pulp  and  A c t ,the l e g i s l a t i o n i t  Eventually,  the dispute  April.  o f n e g o t i a t i o n s , i n 1986 and 1988  by t h e p a r t i e s t h e m s e l v e s  a labour  April  unhappy w i t h  the strike  i t was e m p o w e r e d  the then  n o t be  t o be a n i l l e g a l  t o impose  on A p r i l  later,  legislation  was i n t r o d u c e d  back  long  w h i c h had  could  introduce  this  in a  available to the parties  by t h e p a r t i e s a t t h e end o f  concluded  without  weeks  i f a settlement  ruled  t o end t h e l o c k o u t  at various  began  talks,  by t h e i n d u s t r y went  Bargaining  concluded  was c o s t o f  The l o c k o u t  Seven  he w o u l d  threatened  Collective  The were  that  Board  something  settled  again.  legislation  offered  Relations  was  income.  However, pulp  Labour  used  strikes  the central issue  made a m e d i a t o r  way t h a t  were  i n d u s t r y became emeshed  to pension  Bennett  strike.  Paper  wildcat  2 , 1 9 8 4 i n a move t o g e t s t a l l e d  i n this  parties,  negotiations  or government i n t e r v e n t i o n .  i n which  the understanding  lockout  The  issues)  i n 1984 t h e p u l p  Bill  reached  of pulp  (excluding  i n mid 1983, moving  premier with  local  increases  February  rounds  stoppages  turbulent  living  the  three  i n a timely  manner  61 V.  The L e g a l A.  Labour This  respect  Legislation  final  legislation  section  that  to both  associations amendments employers  research  have  like  outlines  occurred  their  have  been  the past  to c u r t a i l  i n the e f f e c t s  In  eased  general, the exit  of  picketing  union  power.  changes  This  may  have  structure.  Accreditation  of Employer  the c e r t i f i c a t i o n  of a union  I t involves  to a central  negotiating  agreement  on b e h a l f  turn,  member i s t h e n  Associations  association  to represent  the assigning  collective each  with  bargaining  to  these  o f an e m p l o y e r s  rights  decade  have  Changes  The a c c r e d i t a t i o n  employees.  labour  picketing.  legislation  enacted  i n B.C.  of employer  associations.  i s interested  Regarding  over  of lawful  to accreditation from  Columbia  changes  the accreditation  on b a r g a i n i n g  B.  in British  and t h e s c o p e  legislation  had  Environment  i s much  individual  of i n d i v i d u a l  body.  This  body  employer  negotiates  o f a l l member e m p l o y e r s  bound  by t h e t e r m s  of  a  and, i n  that  agreement. Without be  forced  in  turn  the  association  t o meet  the union's  i s subjected  standard  employer. enactment  bargaining,  granted  In B r i t i s h  demands  t o t h e same  Columbia,  and t h e n  pressure  by t h e f i r s t  of a c c r e d i t a t i o n  individual  each  t o meet  (and o f t e n  this  or  employer exceed  the weakest)  i n the period  legislation  employers can  preceding  whipsawing  the of  62 individual unrest  employers  and l e d t o s o a r i n g  Voluntary individual weakest  (Rose  a separate  union  i s then  concessions  Accredited  employer  employer  association  has t h e s o l e  on b e h a l f  member  individually  void.  In other  on  i t s own.  with  Arthurs  compulsory, subsequently unionized by  employer adopted  i n their  problem of  employer collective  reach once  reached  by a  n u l l and an a g r e e m e n t  an e m p l o y e r  i t cannot  remove  1968 r e p o r t  on t h e  associations,  associations:  and t h e c o n s e r v a t i v e . adopted  the r e a l i s t i c  contractors  the accredited  a  with the  i s a  itself  will.  of contractor  of employer  this  Any c o n t r a c t  cannot  cases, the  pressure.  i s considered  association  and C r i s p o ,  accreditation models  to conclude  w o r d s , an e m p l o y e r  at  under  solve  A n d , i n most j u r i s d i c t i o n s ,  membership  c a n be  employers  An a c c r e d i t e d  the union  their  In these  employer  o f i t s members.  as  upon  the association to  the remaining  right  labour  costs.  employers from  associations  of  an i m p r o v e m e n t  the union.  cohesion.  member o f a n a c c r e d i t e d from  away  by t h e s i n g l e  maintaining  agreement  with  t o whipsaw  granted  degree  as e f f e c t i v e  Individual  t o break  contract  able  although  are only  1983).  by t h e u n i o n  i n a large  wage a n d b e n e f i t  associations,  negotiations,  link  pressured sign  resulted  Seven  provinces  model  i n which a l l  model  regardless  i n which  have  at the bargaining  i s a member o f t h e a s s o c i a t i o n the compulsory  three  the r e a l i s t i c , the  are represented  association  enumerated  of whether (Rose  table  or not the  1983).  a l l contractors,  Quebec whether  63 unionized act  o r n o t , must j o i n  as t h e i r  enact only  legislation those  agent.  based  unionized  accredited the  bargaining  from  applies  t o any employer  other such  the construction  associations public  now  sectors:  transportation result,  employees This  covered  1970, B r i t i s h  associations  builders,  transportation year.  Shortly  the Canadian  restricted  employer private  and  construction, others.  Columbia  bargaining  i s highly  units  agreement  As a  over  CRogow  200  1989).  average.  enacted  thereafter became  employers  i n that i t  Legislation  Columbia  contractors,  among  in British  by a m u l t i - e m p l o y e r  Accreditation  voluntary  care,  the province's  1.  legislation.  road  brewing,  double  also  and i s n o t  i n the health  i s almost  In  Columbia  i n both  half  agreement  a c r o s s Canada  and f o r e s t r y i n d u s t r i e s  with  Early  in British  Consequently,  bargaining  the  behalf.  i n the province  industry.  to join  to  I n B.C.  by t h e c o l l e c t i v e  legislation  i tto  chose  model.  represent employers  collective  centralized  Columbia  elect  on t h e i r  legislation  differs  to  who  a r e bound  negotiates  Accreditation  British  and a l l o w  on t h e c o n s e r v a t i v e  employers  association  association  the association  i t s first  a number  accredited.  f o r e s t r y , pulp  a l l became  of  accreditation  previously  Associations and p a p e r ,  accredited  i n that  of  and first  64 2.  The B r i t i s h  In  1973, the newly  government years  enacted  of turbulent  effectively a  series  order  associations  that  Labour  labour  a labour  First,  industry.  This  pressure  tactics  action. entire  used  would  industry sense  would  fewer  Third,  more e f f i c i e n t  individual  would  be i n p l a c e  would  create  thus  having  illegal  (Chafetz  would  employer  be t h e k e y t o  would  f o r an  caused  eliminate  entire of  union  employers.  opportunities  Second,  for strike  by s h u t t i n g  to reach  down  In t h i s  common  This,  of p r e d i c t a b i l i t y work  stoppages, Finally,  equity  would  contract  provisions  i t was  hoped,  i n the workplace  grievances,  an i n d u s t r y  i n terms  without  agreement  a separate  way  an  parties a  a settlement  a master  the province.  1985).  increase  would  as a  1980).  to conclude  employer.  across  weak  negotiating  an a t m o s p h e r e  minimize  arbitrations agreement  than  between  i n the negotiating  of r e s p o n s i b i l i t y  stoppage.  each  instill  date  of  restore  bargaining  (Weiler  bargaining  against  mean  was  province.  the p o s s i b i l i t y  I n a d d i t i o n , t h e damage  greater a work  eliminate  being  negotiations  unions  a common e x p i r y  would  that  s e t out to  based  r e l a t i o n s problem  based  several  movement, and t h e i s s u e  r e l a t i o n s i n the  broad  After  court  government  of trade  Party  Code.  centralized bargaining  by h a v i n g  and  by t h e l a b o u r  labour  whipsawing  with  unrest,  and c o u n c i l s  peace.  1973  Democratic  o f t h e C o d e saw b r o a d  t o B.C.'s  believed  fewer  New  Code  the province's  boycotted  creators  solution  be  elected  t o labour-management  labour  Labour  o f i n j u n c t i o n s , t h e new  The  They  Columbia  and  master  o f wages and  benefits  65 in  the industry.  the  Employees  same c o m p e n s a t i o n  were  assured The  for  that  stated  that  throughout  enacted  associations  the province  members  the  a p p l i c a t i o n i f they  h a d t h e same  could  apply  could  too wished  also  Relations  the association  as t h e a c c r e d i t e d  association  i fi tfelt  the employers  application  constituted  a group  bargaining  i n that  that  i n t e r e s t s could  their  overall  association Relations  fifth by  The  proved  Board  months  then  grant  Board  (Ocean  t h e back  names t o  Board  then  bargaining i n the  represented  employer  door  very  that  during  the execution  and  by one  had f u l l  from  bargaining The  Labour  carefully  (Rose  the fourth  of a c o l l e c t i v e  a s s o c i a t i o n , an e m p l o y e r  i t s name d e l e t e d  this  accreditation decided  were  for collective  more d i f f i c u l t .  Code p r o v i d e d  following  t o have  The  who  i n t h e same b u s i n e s s  be a d e q u a t e l y  t o be much  The L a b o u r  Board  would  involved  an a c c r e d i t e d  guarded  the employers'  Board  were  59  of the  named  appropriate  easy  body.  However, l e a v i n g  1983).  costs.  Section  add t h e i r  constituted  they  labour  and e m p l o y e r s  t o be p a r t  The L a b o u r  that  employers  i n 1 9 7 3 made i t r e l a t i v e l y  of the a s s o c i a t i o n  association.  receive  while  t o become a c c r e d i t e d .  any a s s o c i a t i o n  not  accredited  t h e same j o b w o u l d  a l l competitors  legislation  employer  doing  could  agreement  apply  the accreditation  d i s c r e t i o n as t o whether  and  to the order.  or noti t  application.  explained order  i t s approach  i n the f i r s t  Construction  to deletions  deaccreditation  Supplies  Northern  from  case i t  L t d . and  an  66 Transport The  B.C.  did  the  in  the  simply  Labour  the  The  balance  the  case  181).  the  what  been  an  from  timely  had  as  i n the  was  Can  to  of  the  present  ongoing  no  that  those  of  accreditation  than  alone™  (p.  "strongly  longer  be  adequately  structure."  would  the  only  explicitly  union  a  there  not  genuine  bargaining  that  175).  "much m o r e  expression with  LRBR  stated  required  bargain  stated  the  (1  made i t c l e a r  also  interests:  remain  (1976),  i t s i n t e r e s t s can  further  itself  to  to  employer  has  competing  wishing  be  deletion  that  Board  remove  to  i t prefers  Rather,  by  need  Board  i n d i v i d u a l employer's  that  served  et.al.,  Relations  Code, but  persuasive  to  Relations  application  feelings 181).  Labour  be  a  employer  order  and  need  (p. to  applying  those  association.  " 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 association 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 , the 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 v e n w h i l e r e c o g n i z i n g t h a t the i n d i v i d u a l employer would s u f f e r some d i s c o m f o r t from c o n t i n u e d membership." (p. 183)  As  a  r e s u l t of  deaccreditation exemption easier  from  for  disband  process, their  by the  w e r e made t o  to  getting entire  the  few  regulation  employers  remove  themselves support  organization.  deaccreditation  bargaining  to  I I I i n Chapter  Up  In  have  until  three  of  granted  I t has  from  from  done  the  been  provisions,  associations One).  have  of  associations.  majority  employer Table  stringent  accredited  employers  association to  this  the  the  accredited association  recent only  this these  been  changes  five  (refer cases  again the  67 association  ceased  associations continue  to bargain  together  on b e h a l f  on a v o l u n t a r y of t h e i r  Industrial Relations  The  1987 I n d u s t r i a l R e l a t i o n s to Section  employers order  1988). Bill  remained  and, i n the other  3.  changes  in  to exist  to force  59.  The I n d u s t r i a l R e l a t i o n s  19, r e p e a l e d  substituted  Reform  from  section  and  A c t 1987 ( B i l l  deaccreditation  themselves  basis  members.  19)  A c t made  I t i s now no l o n g e r  total  to separate  Reform  two,the  important  necessary f o r  of t h e i r  association  i t (Employers'  Reform  Act,  also  Council  known a s  5 9 ( 6 ) o f t h e B.C. L a b o u r  Code a n d  the following:  ( 6 ) W h e r e a n e m p l o y e r named i n a n a c c r e d i t a t i o n applies 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 b y d e l e t i n g h i s name from 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 date 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 behalf, the c o u n c i l s h a l l grant 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  Council nor  to rule  the effects  industry. emphasis 1988)  This  As l o n g  f o r the Industrial  the propriety  o f i t upon  Relations  o f an e m p l o y e r ' s  the bargaining  outcomes  withdrawal i n that  r e f l e c t s the l e g i s l a t i o n ' s philosophical  on t h e r i g h t s  deaccreditation a  upon  necessary  of the i n d i v i d u a l  as t h e employer's  application  m u s t be g r a n t e d .  number o f r e c e n t  (Employers'  deaccreditations  As a r e s u l t have  Council  i s timely, the of these  occurred.  changes  T h e B.C.  68 Hotels  Association,  B.C. R o a d  Builders  Relations  Association  Construction  Labour  deaccredited  since  associations  has c o n t i n u e d  voluntary  basis.  assessment  January  More  o f 1988.  and  have a l l  However, each  of these  t o a c t f o r i t s members on a  time  of the e f f e c t s  Association,  i s needed  of t h i s  before  a  legislative  complete change  c a n be  made .  C.  Regarding The  union's  Picketing  c o l l e c t i v e withdrawal ultimate  weapon.  o f i t s members' l a b o u r  The i n t e n t  persuade  employees  n o t t o go t o w o r k  business  with  employer  dispute  with  picketing harm  that  h i s employees  that  the union  on t h e e m p l o y e r  suffering  until  i s to  and c u s t o m e r s  n o t t o do  he h a s s e t t l e d t h e  (Weiler  1980).  hopes t o i n f l i c t  as t h e u n i o n  by w i t h d r a w i n g  of picketing  i s the  labour  I t i s through a s much  economic  members t h e m s e l v e s a r e  their services  and f o r e g o i n g  their  pay. In of  British  bringing  Columbia  economic  many  people,  held  b e l i e f s about  in  part  from  to  i n Chapter  union  a picket  pressure  line  t o bear  i s an e f f e c t i v e m e t h o d upon  an e m p l o y e r  members and nonmembers a l i k e , the s a n c t i t y of a picket  British  Columbia's  One.  In a d d i t i o n ,  crossing  of a picket  ensuring  that  (Weiler  1980).  line  most p i c k e t  have  line.  unions  a punishable lines i n this  strongly  This  ideological history many  since  stems  referred  h a v e made t h e  offense, province  further are  respected  69 Because response large,  picketing  from  care  Picketing  m u s t be t a k e n t h a t  may  passed  to r e s t r i c t  been  secondary weapon. of  known  defined  place  over  Labour  time,  of the lawful Secondary  and v a r i o u s  definitions  businesses are affected  of  union i s at  sites  Laws a r e a l s o i n  e m p l o y e r s , who,  on t h e same s i t e  have  employer i n  dispute.  of other  A  strike  sites  picketing  a struck  the impact of the labour  and whose  sites.  t h e power o f t h i s  are aiding  are located  abused.  Code o f 1973 have b e e n  category of allowable  the rights  this  of p o s s i b l e  to the s i t e  have a l t e r e d  t h o s e who  to protect  employer  power i s n o t  as t h e p r i m a r y s i t e .  The t h i r d  coincidence,  that  picketing  picketing  lessening  t o t h e B.C.  differently  "allies",  this  invokes  and t h e community a t  o c c u r a t any o f a number  o f amendments  lockout,  Columbia  the working population  series  or  in British  by  as t h e s t r u c k by t h e p i c k e t s  of  employer.  1.  P r e B.C.  Prior strikes,  Code  t o the enactment  lockouts,  Relations Disputes  Labour  1973  o f t h e B.C.  and p i c k e t i n g  Code  were r e g u l a t e d  A c t and t h e T r a d e - U n i o n s were s e t t l e d  Labour  and r u l i n g s  Act (Germaine  i n 1973,  by t h e L a b o u r 1983).  w e r e made i n t h e p r o v i n c e ' s  courts. 2.  B.C.  Labour  Code  1973  H o w e v e r , t h e 1973 L a b o u r Labour  Relations  picketing.  Board  Section  Code g a v e j u r i s d i c t i o n  t o d e c i d e upon t h e s c o p e  8 5 o f t h e B.C.  Labour  of  to the  allowable  Code o u t l i n e d  the  70 extent  of allowable  allowed  at the site  primary  site),  picketing,  stating  of the lawful  a l l other  places  strike  sites),  and t h e p l a c e  employer.  Section  86 h o w e v e r , g a v e  reasonably  restrict  involved  i n the labour  1982 Amendments  The  original  union  labour  and a l l y  secondary  minister  and a l l y  1982).  requiring status  that  before  of business  of the employer o f an a l l y  directions  picketing  picketing  Heinrich  picketing  t o t h e employer  these  these  this,  t h e Labour  Relations  that  by u n i o n s  provisions  was a b l e  Board  to picket  the  provisions.  estimated  undertaken  under  C o d e was l i b e r a l i n  first  half the  between 1973 (Employers'  I n 1 9 8 2 c h a n g e s w e r e made t o s e c t i o n  a union  of the  t o t h e Board t o  but, despite  of abusing  Jack  1 9 8 2 was i l l e g a l e v e n  Council  or lockout ( t h e  85 o f t h e L a b o u r  m o v e m e n t was a c c u s e d  Former  and  section  secondary  was  dispute.  3.  allowing  site  picketing  of operations  (secondary  common  that  85  designate  the site  of  ally  that  ally.  4. In a  1984 Amendments 1984 s e c t i o n s  new s e c t i o n  resulted  85.  relatively intention  liberal  repealed  and r e p l a c e d  The amendments t o p i c k e t i n g  i n an o u t c r y  amendments s o u g h t  8 5 a n d 86 w e r e  from  the labour  to severely picketing  o f t h e new s e c t i o n  restrict  by  legislation  movement a s t h e s e what  provisions.  had been  However, t h e  8 5 was n o t f u l f i l l e d  because of  71 the  wide  interpretation  Relations The  has  Secondary  a different  jurisdictions  (Germaine  secondary  picketing  suppliers  or customers.  mean t h e p i c k e t i n g  at  operations  legislation  this  the  required  0£ ally  Board  d i d not  Board's  first  picketing -and-  Retail  317/84,  Labour  picketing was  could also  be  section  o f an  (NS)  i n the  come  dispute The  of the Board  undertaken.  new  before  In  addition  to reasonably  to the employer on  of  has  of the s t r i k e .  causing  strike. legislation  by  of these changes.  c o n c e r n i n g the scope  of  the The  allowable  made i n S l a d e & S t e w a r t L t d .  Wholesale Union, Local  ( 1 9 8 4 ) , 7 CLRBR  other  employer's  involved  of t h i s  intention  8 5 ( 3 ) was  in  interpretation  required  were  interpretation  decision  Columbia  usual  approval  a t a common s i t e  the  in British  secondary picketing  the s i t e  the p r i o r  restrict  i t has  of the employer  reflect  under  The  I n B.C.  o r whose e m p l o y e e s  However, the  than  the p i c k e t i n g  the Board  picketing  lockout  meaning  s e p a r a t e from  change  restrict  the  to severely  picketing  1983).  was  to  to  8 5 ( 3 ) by  o f t h e a m e n d m e n t s was  picketing.  t a k e n on  secondary  to section  Board. intention  secondary  given  No.  580  e t a l BCLRB  No.  258.  " C o n s i d e r i n g t h e w o r d s u s e d i n t h e new 8 5 ( 3 ) o f t h e L a b o u r C o d e i n t h e c o n t e x t o f t h e s t a t u t e a s 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 w o r k on b e h a l f o f t h e i r e m p l o y e r a n d w h e r e now a s 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 h a v e 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 a n d t h o s e p l a c e s w h e r e 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 for t h e i r employer. 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 the meaning of S e c t i o n 85(3) of the Labour 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 to 85(5) of the Labour Code." ( a t p. 2 6 5 ) (emphasis added)  In  this  argument  that  performed site  at  within  would  ruling  the the  meaning  and  presence  of  even  rendered  i t a  approach under  as  ruled  certain  attract  places  5. In  of  1987 1987  controversial  and  85(3). the  the  of  and  Board.  As  a  were  viewed  even Food  secondary Stores,  B C L R B No.  pure  delivery  under  the as  1984  the  s t r i k e or  or old  the  provincial  package  of  primary been  to  Board's  sites  that  classified  as  in  and  Press  Webb 186  goods would  Section  the  without  example,  sites,  government  changes  of  85(1).  Reform  the  location  the  of  a  this  result  For  be  Thus  Those  however, would  under  Industrial Relations  a  be  be  [ 1 9 8 0 ] 3 CLRBR  picketing  lockout  require  there  have  Section  to  picketing  as  supply  amendments  secondary  at  the  work  found  would  BCLRB No.65/81 47/80,  of  picketing.  work  allowed  be  To  result  amount of  site  amount  i t to  sites.  not  the  for  or  under  classified,  order  not  Ltd.,  the  substantial  l e g i s l a t i o n would  picketing  locations  of  s p e c i f i c a l l y rejected  regulation  locations  7-Eleven  that  also  Section  a minimal  approval  Publications  of  uneven  primary  primary  in  difficult  an  previous  either such  location  make r u l i n g s  prior  Board  a s i g n i f i c a n t or  uncertainty  the  the  Act  but  i t  was  not same  be as  primary  85(3).  -  Bill  announced Labour  cases  19  its  Code.  After  a  73 crippling portions halted  forest of  the  industry province  operations  government  enacted  new  was  disputes  on  persons  (Sec.  of  Bill  despite  who  19).  The  replaced  them  85  with  but  secondary In  sites, for  ally  amendments of  1987  an  the  struck  employer.  was  enough  to  be  found  tangible  allow  the  benefit  Picketing now  only  was  an  be  operation. Relations  In Board  substantial"  and  interpretation  be  to  Bill  picketing.  Now  Prior  had  and  must  the  be  aid  provided  with  ruled be  open  would  the  that to  not  to too  therefore  law.  of  (Burke  i t  the and  1987).  definitions  of  The  primary  employer.  19  under for  the  to  to or  i t by a  the  be  of  for  the  Section  benefit  ally  receiving the  done  much  status a  ally. site  at  the  would site  employer's  amendments t h e  determine  of  assistance  secondary  work of  the  the  act  i n order  1984  but  repeal  portions  found  that  labour  incensed,  did  acting  given  the  disputes"  into  found  s u b s t a n t i a l part  dealing  would  be  either a primary  allowed  integral  ally  to  must  from  of  the  Credit  e f f e c t s of  put  amendments  s t a t u s , and  status  employer  19  repealed  of  i n the  were  Bill  following:  order  Social  m o v e m e n t was  changes  merely  ally  harmful  large  picketing  thrust  involved  labour  significant  amendments a f f e c t the  to  not  the  down  secondary  The  the  p i c k e t i n g amendments of Section  and  are  shut  l o c a t i o n s , the  legislation.  protests  previous  which  i n which  in "minimizing  strong  The  and  i n many o t h e r  legislation  27  dispute  Labour  "integral  and  subjective  become c o n f u s i n g .  Thus,  85  74 the  Board  ruled  picketing. The  that  That  last  i s no l o n g e r  major  included  in Bill  purposes  of Section  defined firm  so t h a t  shall,  treated  i f they  be s u b j e c t  to  the case.  to picketing l e g i s l a t i o n  t o be  of employer.  For the  85 a s a m e n d e d i n 1 9 8 7 , a n e m p l o y e r  " d i v i s i o n s or other  employers"  picketing  change  done w o u l d  19 i s t h e d e f i n i t i o n  as s e p a r a t e  separate  any work  parts  of a corporation  are separate  and d i s t i n c t  and d i s t i n c t  operations,  (Section  85).  of r e l a t e d enterprises  This  i s now  operations, be t r e a t e d  or be  as  now p r o h i b i t s t h e  o r d i v i s i o n s o f t h e same  firm.  VI.  Summary This  of  chapter  t h e B.C.  which  and  Conclusion has sought  forest products  t o h i g h l i g h t t h e major industry  features  and t h e e n v i r o n m e n t i n  i t exists. The  B.C.  forest products  industry  distinct  industries, logging,  Industry  p a r t i c i p a n t s are comprised  integrated  firms  as w e l l  pulp  a s many  and p a p e r , of both  small  logging  equipment  markets  c a n be d e s c r i b e d  relying  on t h e u p s and downs o f w o r l d  generally however exists  high  or a small  degree  to the system  differences  between  up o f and  three  sawmilling.  large  operators  fully owning  The i n d u s t r y ' s  as p r e d o m i n a n t l y  i n p r o v i n c i a l timber  regional  sawmill.  of competition  i s i n contrast  i s made  cyclical  commodity  in  markets. the Coast  nature  markets.  i n the product of near  product  market,  oligopoly  Finally,  there  The  which  exist  and t h e I n t e r i o r  of the  75 province product  i n terms  labour  characterized government  government  B.C.  orders.  strikes  new  nearly  labour  inflicted  upon  while  which  of forced every  legislation  thrust  major  and  elicited and  dispute  to prevent that  the  i n the has j u s t  o f B.C.'s  s u b s t a n t i a l l y since  labour  the enactment of  Deaccreditation  the scope  have  mediation  the province  the basic  C o d e i n 1973.  Labour  provisions  o f l a w f u l p i c k e t i n g has  have  become  restricted. nature  employers  strength  of the industry  i n each  bargaining  region  structure  responsible  has used  membership  stays that  accreditation the union  have  the  to date.  The  i s responsible  i n t o employer  together  under  pressure.  FIR has n e g o t i a t e d as i t has n o t been  f o r a settlement  that  a c c r e d i t a t i o n has n o t been  that  i t s membership  i s smaller  industry  i t s diverse CONIFER  and t h e r e f o r e  signs  1986).  as i m p o r t a n t  the  has n o t needed  i n a p o s i t i o n t o be  (until  FIR,  traditionally  wide  a c c r e d i t a t i o n to ensure  f o r the  associations.  a s s o c i a t i o n and t h e one the province  of  determined  of employers  unions  for negotiating  agreement,  agreement  choices  of bargaining  l a r g e s t employer  and t h e c o m p o s i t i o n  and s e c t o r  of the industry's  centralization  by  After  has changed  looser  The  the  tumultuous  As a r e s u l t ,  legislation  more  by l o n g ,  t h e damage  become  techniques,  r e l a t i o n s h i s t o r y of the i n d u s t r y i s  enacts  occurred.  the  harvesting  i n t e r v e n t i o n i n the form  t o work  future  species,  markets.  The  back  of tree  Another  pressured reason  t o CONIFER i s  and l e s s d i v e r s e  that  FIR's.  76  PPIRB  i s no l o n g e r  years.  As an a s s o c i a t i o n  sophisticated as  employers  traditionally  interests. strucutre is  dispute  there  The f i n a l  other  closed  has  been  a dispute  the  link  between  standstill This political industry will  inputs  a dispute eventually chapter  and o u t p u t s  without  and l e g a l of B r i t i s h  Columbia.  and t h e e m p l o y e r  who  products  there  In a d d i t i o n ,  other  sectors  plants  has  to a  pickets. competitive,  the forest  of the next  i n this  associations.  labour  picketing  of the various  impacting  interact  A  whenever  or region.  The f o c u s  industry  economic  Secondary  can b r i n g  member  centralized  the economic,  environments  among  can i n f l i c t  secondary  has d e s c r i b e d  for accreditation  the province  sector  i n one a r e a  and  of the industry.  and s e c t o r s .  i n either  strong,  diversity  i n the forest  throughout  be o n t h e p a r t i e s  unions  little  of the industry  down p l a n t s  need  f o r the highly  found  regions  i t was f o r f i f t e e n  equally  i t has l i t t l e  i n t e r r e l a t e d nature  has  that  of large,  reason  i n any s e c t o r  damage upon  although  has been  of bargaining  the highly  meant  accredited  products chapter  environment, the  77  CHAPTER FOUR: THE I N D U S T R I A L R E L A T I O N S ACTORS AND T H E I R B A R G A I N I N G STRUCTURE P R E F E R E N C E S I N THE PRE 1 9 8 0 S ENVIRONMENT  I.  Introduction The  purpose  changes,  of this  i f a n y , have  occurred  collective  bargaining  industry.  The p r e v i o u s  B.C. it  f o r e s t products operates.  parties  that  bargaining the  described  of t h i s  chapter  point  that  will  i s t h e most  the traditional  change.  be p r e s s u r e  Any c h a n g e s  established covered  Information published  data  representatives three  begins  exist  the nature  i n which  i s to identify the their  gave  that  t o each of  important.  F o r , when  s t r u c t u r e of bargaining f o r one o r b o t h  i n the parties'  of them,  preferences  f o r the  i n the industry are  chapter.  forthis  and from  chapter  extensive  of the three  employer  of the  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  s t r u c t u r e of bargaining  i n the next  products  and t o o u t l i n e 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 no l o n g e r  there  forest  i n d u s t r y and t h e e n v i r o n m e n t  relationships,  advantages  gave  the  chapter  Columbia's  i n the industry, to describe  The l a t t e r  what  i n the structure of  in British  The p u r p o s e work  i s to determine  established structure of bargaining  them. the  research  was g a t h e r e d  both  interviews with the  unions  and t h e p r e s i d e n t s o f  a s s o c i a t i o n s under  by d e s c r i b i n g t h e t h r e e  from  unions  study.  The  representing  chapter employees  78 in  B.C.'s f o r e s t  Pulp,  Paper,  and  Paperworkers* three  and  the  on  The  with  discusses  II.  the  each  a  The A.  i n the  the  industry  forestry  workers  counterparts  and only  the  unions  The  structure  of  and  the  chapter  development products  came r e l a t i v e l y of  B.C.  Until  remained  had  in  of  industry  industry  and  bargaining  been  late the  to  the  early  has  unorganized  while  most  their  i n the  unionized  at  for  forest  1930s  B.C.'s m i n e s ,  building  least  a  trades  decade  1966).  Many f a c t o r s  were  i s o l a t e d and  portable  logging  the  forest  this  Employee  described.  of  Bureau,  parties.  working  printers  (Bergren  were  B.C.  Industrial  IWA  products  were  Forest  the  Unions  The  as  study:  on  Industrial Relations  also  the  Canadian  focuses  I n t e r i o r Forest  description  Unionization  or  are  the  section  under  Northern  IWA-Canada,  C a n a d a , and  second  Paper  advantages  of  of  the  r e l a t i o n s h i p s among b o t h  bargaining  given  and  associations  concludes wide  Pulp  Council  employer  The  associations  the  Relations.  industry:  Woodworkers  Union.  employer  Relations,  products  crews  also  into  the  isolated.  camps were accessible  At  often by  responsible  for  sawmills  bush this  so  that  time  separated  by  water, making  this.  Logging  camps  often  accompanied  those  producing  most  operations  hundreds organizing  of  lumber  were  miles  difficult  small  often (Gould  79 1975). poor  Loggers  living  In  conditions  and moving  addition  employer  from  workers  resistance was  enough  to cost  Gould  communist  a man  organizers ideals  B.C.  Lumber  out that  Industrial  from  for i t . W o r k e r , was  serious  deeply committed not imagine  to  better  the existing  capitalist  deeply  Workers of the World  from  this  workers'  movement  and  socialist-  achieving  a n d women h a d b e e n  (IWW) a n d  stayed alive i n  u n i o n , t h e Lumber  Workers'  Union.  By t h e 1 9 4 0 s t h e I n t e r n a t i o n a l strength  1950s t h a t  organized  workforces.  1975).  the f i r s t  without changing  forest  of t h e i r  newsletter,  were  i d e a s spawned  B.C.'s e a r l i e s t  purge  many d i d  committed  fired  by t h e I n d u s t r i a l  radical  strife  defence  obstacles to  were  Many o f t h e s e men  influenced  and g e o g r a p h i c  a n d men  and c o u l d  conditions  system.  In  with  only  t o camp, w h i c h  h i s job (Gould  (1975) p o i n t s  successful  the  Faced  the worker's  t h e r e was a l s o  forbidden  reading the union  gained  group.  to the unionization  Simply  the  camp  to the physical  forestry  activity  working  a transient  1966).  organizing  Union  also  and w o r k i n g  was q u i t t i n g (Bergren  were  on B.C.'s c o a s t . workers  b y t h e IWA  However,  i n the Interior  on a l a r g e  scale  i t s f o r m a t i v e y e a r s t h e IWA and i n 1948, upon  communist t h e IWA  leaders,  t o form  Woodworkers  until  o f t h e p r o v i n c e were (Bersohn  1981). by  internal  the International  of d i s s i d e n t s  t h e Woodworkers'  America  i t was n o t  was p l a g u e d  o r d e r s from a group  of  to  separated  Industrial  Union  of  80 Canada.  Despite  vestiges  of radicalism  generally  viewed  labour  movement.  during  periods  unions  have  in  fact  The  has proven  separated  the  two d e c a d e s ,  these  t o be w i l l i n g  changes.  t o work  with  partner i n  ( a s i t i s now k n o w n  the international i n B.C.'s  t o 100% of Coast whereas,  sawmill  other  technology.  union  counterparts  which  i n , t h e IWA h a s  a n d t o be a c o o p e r a t i v e  from  Close  t h e IWA-Canada  province's  the past  of t h e Canadian  or p a r t i c i p a t e  itself  o f new  name) i s t h e d o m i n a n t  Interior  over  a n d some  t h e IWA-Canada i s  the industry t o undertake  T o d a y , t h e IWA-Canada  by  today,  heritage  on t h e r i g h t - w i n g  t o accept  on o c c a s i o n  operations.  radical  o f enormous t e c h n o l o g i c a l change  implementation  formally  more  remain  Especially  encouraged  management  that  as being  refused  IWA-Canada  the  i t s earlier,  union  logging  loggers  i n contrast, very  are.  workers  Approximately are unionized  since  i t has  o f t h e same  and s a w m i l l i n g  are represented few o f t h e i r  80% of the and r e p r e s e n t e d  by  IWA.  B.  The P u l p Pulp  100%  Unions:  and paper  unionized  Woodworkers  t h e PPWC a n d t h e CPU  workers  by one o f two u n i o n s :  o f Canada  The CPU r e p r e s e n t s  Columbia the Pulp,  and t h e C a n a d i a n  about  8500 w o r k e r s ,  workers,  while  approximately  Interior  mills  remain  offspring  in British  of the o r i g i n a l  Both  international  Paper and  Paperworkers'  Union.  t h e PPWC 6 5 0 0  150 w o r k e r s  non-union.  are nearly  a t two s m a l l  these  unions  unions  that  are the first  81  organized United  pulp  and  paper  Papermakers  International  and  workers  i n the  Paperworkers*  Brotherhood  province:  Union  and  of P u l p , S u l f i t e ,  the  the  and  Paper  Mill  Workers. In Pulp  the  and  early  Paper  International Workers  Workers'  Canadian  by  effectively  hands  rank  Raiding province  of the  followed  infighting newly  Bitter  from  In  Union  In  merged  Sulfite,  and  Paperworkers'  of  Mill  the  union.  The  new  roots,  the  union  i n the  p u l p and Sun  these unions  May  paper  28,  unions  1975).  i n the  Bitter  continued for years.  a crusade  against  the  these early  raiding  IWA  evils to  The  of  attracting  locals.  attempts  and  today.  early  organization Columbia.  o t h e r two  about  t o be  the  and i t s  of  B.C.'s s a w m i l l s t o o , r a i d i n g  remain  the  the membership  placed control  Paper  grass  unionism, turned i t s attention  feelings  successes  of  from  file.  u n i o n , on  international  international  PPWC, t h e  away  and  i t perceived  importance  (Vancouver  between  formed  members  and  what  the  participation  the  of Canada, broke  of the  stressed  today's  of P u l p , S u l f i t e ,  against  constitution of  f o r e r u n n e r of  Union  principles  union  up  the  Brotherhood  in protest  undemocratic  bottom  1960s,  1970s s e v e r a l  the  1972 with Paper  pulp the  the  and  more c h a n g e s  paper  unions  U n i t e d Papermakers International  Mill  Workers  International  and  British Paperworkers'  Brotherhood  to form  Union.  in  occurred i n the  Then  of  Pulp,  the United i n 1973,  the  break-  82 away P u l p Pulp,  and Paper  Paper  reflect  Workers'  Union  changed  and Woodworkers'  Union  o f Canada  i t s wood  successful  raids  its  organizing  the  Canadian  Canadian Union  separation new it  bargaining The f i n a l  away t o f o r m  Union  rank  and opened  running of the union  12,  1974). between  raiding,  Paperworkers'  Union  suggested  Despite  the merger  between  the unions with Bureau  two  have  the  employers'  union.  The to write  structure The  a  making  Canadian  (Province  unions  of the  of the  the p o s s i b i l i t y S u n May  continued to sign association.  and  of a merger  28,  t h e P u l p and Paper became  into  Canadian  1975).  being achieved, j o i n t  eventually  June  continued  continued infighting  (Vancouver  never  International  i n t h e hands  t o t h e membership  A r t Gruntman  t h e two u n i o n s  Relations  when t h e  concerns.  t h e two n a t i o n a l  between  when  the channels of p a r t i c i p a t i o n i n  In 1975, d e s p i t e  President  several  i n 1974  a l l o w e d them  p u t maximum c o n t r o l  the  mid 1970s.  formed  the union's  union  of  and t h e b r e a d t h o f  came  national  members  and t o change  responsive to local  Raiding  units)  was  i t s own  of the Canadian  and f i l e  (the result  change  Union  i n order to  of the United Paperworkers*  Paperworkers'  the  membership  Paperworkers*  constitution more  o f IWA  scope.  portion  broke  working  i t s name t o t h e  Industrial  a reality  separate master  bargaining  although the  agreements  with  83 C.  The U n i o n s '  Bargaining  Traditionally,  t h e IWA  settlements agreement  has been  Southern  for  t h e PPIRB  It  based  to  thought  that  settles  before  buoyant  than  issues  IWA  rather  members  o f IWA  the pulp  markets  are outstanding  than  markets  secondary  created  Animosity compounded the  most  three  by t h e i r  unions  from  Canadian  mills.  may  were strike  unions  This  unions  and g r a s s  itself  the other  Labour  or i f d i f f e r e n t not of after  has o f t e n  p r a c t i c e has  i s further  philosophical differences.  and v i e w s  a r e more  t h e two s i d e s .  the three  highly democratic  philosophy the  between  unions  by t h e p u l p  p i c k e t i n g o f IWA  b i t t e r n e s s between  year,  sides  invariably  negotiations that  has s e t t l e d .  meant  on t h e t w o  I f pulp  the  A strike  however, has  t h e IWA  t o the Woodworkers, the pulp  favourable  1989).  setter,  concern IWA  by p l a n t s , g i v e s i t  setting  i n a given  i n pulp  i s the  s t r u c t u r e , being  the unions  unions.  IWA  f o r both  i n the province.  (Clarke  As t h e p a t t e r n  lumber  The  master  as w e l l as  c o n t r a c t s more  pattern  between  t h e pace  contracts  local  to conclude  animosity  the industry.  t h e IWA's  areas  power  tradition  some  Interior  the Coast  sets  the l a r g e s t union  the i n d u s t r y ' s union  created  that  a n d CPU/PPWC a g r e e m e n t s .  inherent  This  of  and N o r t h e r n  on g e o g r a p h i c a l  greater  In p r a c t i c e ,  t h e agreement  and n u m e r i c a l l y  i s also  has s e t t h e p a t t e r n f o r  i n the industry.  the  oldest  Relationships  oriented  as d i s t i n c t i v e  two u n i o n s .  Congress  roots  T h e PPWC i s of the  in i t s  I t i s n o t a member o f  o r t h e B.C.  Federation  of  84 Labour,  scorning  foreign  controlled,  unions pulp  rivalry  during  relationship In  raided between years,  might  pressured  concessions little  the pulp  ensured two  Bureau  returned  the return  Jack  with  that  this  and were  The  deep  formed  only  and paper  of the f o r e s t products  and  i n 1988 t h e two p u l p deaccredited  were  offered a  loose  a t t h e same  observer.  to.  The  t o have workers.  workplaces  This  action  the unions  i n the  industry.  t h e two p u l p  Pulp  terms  IWA  their  t h e common enemy  unions  table  Munro, as a r e p r e s e n t a t i v e  of b i t t e r n e s s between  between  seated  t h e i n d u s t r y i n 1983 on  t o work  relationship  IWA,  unions  being  negotiated  not agree  t h e IWA  intense  has marked t h e  a t t h e t a b l e a s an  pulp  of  of the i n d u s t r y f o r  unions  could  The two  unions.  language  while  the  t h e now  sides  settled  unions  period  I n 1 9 8 3 , when t h e t h r e e  them  However, making  with  two  two  federations.  i n c r e a s e s , the unions  by s t r i k i n g  sectors  The o t h e r  and e a r l y 1970s.  i t appeared  The two p u l p  H o w e v e r , t h e IWA  picketed  these  i n contract  the Pulp  subsequently  unions.  two l a b o u r  1960s  by b o t h  t h e IWA, j o i n e d  that  corrupt  b y t h e PPWC a n d t h i s  lift.  o r no wage  coalition.  of  the late  recent  animosity  with  often  as f e d e r a t i o n s o f l a r g e ,  a r e f u r t h e r d i v i d e d by a p a s t  has been  being  bodies  a r e members o f t h e s e  unions  too,  these  unions.  undertook Bureau.  has  joint  improved  Both  i n 1986  negotiations  85  III.  The  The  Employer  c y c l e s of  important  primary  employees, are  often  downturns follow In  and  and  often  are to  long  of  the  are  by  i n market  withstand easily  strikes  swallow  continue  to  depressed  and  Finally, cycles. income  programs  or  unemployment provincial  only  prices.  Most  to  too, be  government  can  rely  a decrease  disputes afford  they  of  the  deep  on  the  economy of  a priority  and  again  to can to  becomes  thin. a f f e c t e d by upon  a  of  these  steady and  social  price  pressure  i n tax  widespread British  for a l l concerned  to  a  but  afford  expenditures  increased  in  layoff.  cannot  However, i n times  disputes, and  to  employed  business  or  i s adversely able  layoff.  when c o m p e t i t o r s  nor  become  on  a f f e c t e d when  labour  razor  1989).  programs  by  boom p h a s e s share  the  booms  i s put  revenues  on  strains  budgets.  Because has  not  strike  margins  like  labour  i s on  while  directly  market  finance  (Bennett  downturns  industry  to  be  w a g e s when t h e  government  I t would stream  also  during  when  directly  can  market  profit  strike  those  Employees  layoffs  a f f e c t e d , but  during  high  on  most  employers,  province.  widespread out  B.C.'s  affect  are  harmed  their  pay  which  the  just  town  Employers swings  to  f o r wages l o s t  i t i s not  centres  proportion  and  make up  centres  of  called  f o r e s t i n d u s t r y who  large  been  government to  i n these  bust  i n d u s t r y i s exposed  the  i n order  owners  also  boom a n d  subject  smaller  the  Associations  impact  the  Columbia  minimize  forest  i t has  long  disruptions  86 and is  smooth  the  subjected.  the  focus  of  voluntary waves of  boom a n d  bust  Attempts  to  governments  employer  enacted and  difficult  leave.  have  not  rather  to  protested  have welcomed  to  as  achieving  a way  of  parity  the  first successive the  and  more  unions  involved  centralization making  among  been  these  more p e r m a n e n t part,  The  Later,  formalize  most  have  prevent  unions.  moves t o w a r d s  them  Industrial  established  in  1942  The  employer  Columbia,  was  organized  the  unionized  negotiate  power.  with  drove  more o f  employers  what  them  During  by  but  negotiations  locals  the  the  the  the  next  Coast  joined  the  Limited.  known as  name R.V.  six logging  Islands  Stuart  throughout  IWA  (Bennett  i n order decade  lumber ranks  name was  of  first  as  the  industry, R.V.  changed  1989).  counter union newly  Stuart to  to  operating were  The be the  need a  to  radical  union's  organized  more  unionized  Research.  Forest  was  in British  employers  perceived to  FIR,  Research  whose w o r k f o r c e s  employers  together  association's  Relations  by  the  Ltd.,  a s s o c i a t i o n , the  Queen C h a r l o t t e  suddenly  union  Relations  under  Limited.  the  their  unrest  alike.  sought  industry  FIR Forest  and  labour  this  province.  A.  on  the  these  more e f f i c i e n t and the  by  make t h e m For  which  employers  l e g i s l a t i o n to  associations to  and  strikes  to  eliminate  associations  selective  government  cycles  In  Industrial  1949  87 In  1970, a f t e r t w e n t y - e i g h t  negotiation employer  as a v o l u n t a r y  association  did  not change  its  business;  indicate community enacted  accreditation  employers  who  The  determined comprised  ten  members  very  this  and p l y w o o d  Coastal which mills.  The  other  to say, the integrated  firms  Needless members  the concerns  are very  aware  an a s s o c i a t i o n  owners and  of smaller  a r e made b y c o n s e n s u s  the large  f o r the smaller of the f a c t  as l a r g e  However, members a r e  i n which the  t o accommodate t h e i n t e r e s t s o f  and i n r e t u r n  members  mill  members.  of the a s s o c i a t i o n .  are prepared  t o compromise  The B o a r d i s  s i x integrated  loggers.  willing  for  newly  s i x o f whom a r e  independent  firms  of eighty  180 o p e r a t i o n s ,  of D i r e c t o r s .  of FIR's  A l l decisions  large  on b e h a l f  represent  companies  association  of the government's  operations,  members,  i s not to say that  small  i n the employer  and d i r e c t i o n s o f FIR a r e l a r g e l y  influential  ignored.  the  logging  of sixteen  independent are  role  approximately  by i t s B o a r d  representatives  conducted  legislation.  control  policies  first  f o r a c c r e d i t i n g was t o  FIR n e g o t i a t e s  sawmills,  the  Accreditation  the association  and t o show i t s a p p r o v a l  Currently,  include  reason  i t s leadership  successful  accredited.  i n which  i t s main  of  a s s o c i a t i o n , F I R became  t o become  t h e way  years  companies are  independents.  that  i t takes  and as d i v e r s e  A l l  cooperation  as FIR t o work.  88 B.  CONIFER The  other  companies Council  employer  and lumber  producers  on N o r t h e r n  known more  simply  association  Interior  under  Forest  workers  a  a f t e r f o r e s t r y workers  As  a result,  i n the I n t e r i o r  there  was  Northern  Interior  Interior  Lumbermen's  Interior  employers  until  1950.  with  both  NILA  to exist  Labour  trade  Relations  counterpart. organization's easier North  was  trade  became  corporate  members,  operating  thirty-two mills  Nelson,  as f a r west  Alberta  border  A number Interior  (Gunderson  Lumber, s i g n  memoranda  provided  taken  Cariboo  CONIFER.  Lake  1972,  over  by two  union  Forest  relations The  i t s name  Presently, both  and  became and t h e f a r  CONIFER and  has  non-union,  Williams  Lake  and  Fort  and e a s t  t o t h e B.C.-  1989).  of s i g n i f i c a n t  a r e n o t members  In  i n the Cariboo  between  as Decker  i n the  Industries, the  c o n s t i t u t i o n was c h a n g e d ,  to j o i n .  organized.  NILA  Association, i t s industrial NCFLRA  nearly  association benefits  a s s o c i a t i o n , and N o r t h  of  the Northern  formed.  of Forest  encouraged  twenty-five  year  came  were  relations services.  t o remember, and e m p l o y e r s were  Relations,  Unionization  a s i t s two r o l e s were  I n 1985  i s the  organization  In t h a t  a s s o c i a t i o n s , the Council  provincial  Employment  on t h e C o a s t  Association  and i n d u s t r i a l  new  here  logging  of the province  no e m p l o y e r  information ceased  study  by i t s a c r o n y m , CONIFER.  forestry decade  representing  firms  operating  o f CONIFER.  of agreement  i n the Northern  Some, s u c h  as C a r r i e r  at the conclusion  of  89 each of  CONIFER-IWA  contract.  Weldwood and Northwood,  end  with  much  has a l w a y s  Northern  Interior firms.  fiercely  independent  accreditation them for  to give  would  been  Most  from  up t h e i r  bargaining. bargaining Settlements longer range  crisis  C.  among  A new  force  constitution  i n which the  even  further  CONIFER members  members c a n n o t  not a long  that  away  individual level  A c c e p t i n g them  solution,  felt  down t o t h e l o w e s t  some s m a l l e r  b u s i n e s s (Gunderson  level.  afford  i s viewed  term  i s that  sensible  as a  c a n no short  way t o  1989).  PPIRB The  formed  Pulp  and Paper  as a l o o s e l y  employees  unionizing. behalf  Industrial Relations  knit  association  Formal  joint  bargaining  o f i t s members b e g a n  provincial  Bureau  government  i n 1951.  accredited  enacted  was  i n 1946 a t t h e t i m e  i n t h e p r o v i n c e ' s p u l p and paper  known more i n f o r m a l l y ,  1970.  drafted  and more t o w a r d s  be t o l e r a t e d .  conduct  that  which  have  b u s i n e s s and would  i s moving  m u s t be m o v e d b a c k  by t h e s e  I n t e r i o r producers are small,  individual rights.  The s e n t i m e n t  firms  CONIFER b u t a g a i n  rejected  their  of the association  accreditation  after  e n t r e p r e n e u r s who constrain  as t h e l a r g e  language.  C O N I F E R m e m b e r s was r e c e n t l y  direction  such  negotiate  t h e same c o n t r a c t  Accreditation  is  Others  mills  were  by t h e a s s o c i a t i o n The P u l p B u r e a u , shortly  accreditation  on as i t  after the legislation in  90  The British the  PPIRB  Columbia  wake  of  a  association  two  to  long  rounds  of  agreements  at  negotiating  those  not  and  subsequently  employer  recently  and  at  signed  deaccredited.  received to  negotiations  the  have  the  on  during  industry  one  both  in  the  to  status,  resulted but  1985,  strike,  voluntary  However, table  and  in  In  permission  a l l employers  table.  associations  lock-out  i t s return  with  present  the  bitter  for  Despite  forged the  of  have  applied  deaccredit. last  i s one  in or  the  association two  included  occasions,  even  negotiations  negotiated  collective  agreement. Up all  until  i t s deaccreditation,  unionized  Membership employers  is  primary  pulp  small  generally  who  own  the  province.  As  the  Bureau's  reached  as  member  D.  Their  as  The pattern  was  producers  nineteen  of  easily  and  Bargaining  i s somewhat  and  the  every In  the  province.  twelve  and  mills  member this  move  represented  to  a  without  operating  has  way  fourteen  a  seat  decisions  in on are  voluntary worries  of  negotiations.  Relationships the  simpler  three than  employer  that  among  the  three  above.  r e l a t i o n s h i p between setting  in  twenty  accomplished  during  described  or  Directors.  equals  Bureau  between  consequence  r e l a t i o n s h i p between  associations unions  a  Board  defection  The  the  between  association  -  the  following.  FIR  and  The  CONIFER  i s one  traditional  of  approach  to  91  a  round  of  industry  collective  has  agreement Southern  been  which and  the  Coast  and  consequently  master  f o r FIR  then  the  been  the  Interior  a l l three  and  n e g o t i a t i o n s proceed  the  three  and  n e g o t i a t e s what  industry  has  taken  operating  i n the  important  role  sizeable to  they  can  smaller  ensure  this  live.  agreements  Interior  In t h e with  past  little  the  or  Coast  no  associations.  e x p i r e on  the  same  c o n c u r r e n t l y between  the  IWA  FIR  the  still  s e t s the  p r o v i n c e wide  of  f i r m s who, as  large, As  the  CONIFER  has  standard  these  date and  pattern  forest  terms  economy and  been more  master  to  of  than  simply  agreement  control  i s made up be  without  the  power  Coast willing  sign is  a "me  behind  too"  concluded.  which  mainly  able  to  of  them.  f o r the  a  they  of  not  an  such  ones w i t h  probably  the  i t is  p l a y such  resource,  n e g o t i a t e d are  agreement  companies  because  companies  companies  province's timber  a l o n e , would  and  mainly  integrated  provincial  s t r o n g an  Coast  leadership role  CONIFER, i n c o n t r a s t ,  past,  the  the  agreements  the  t h a t the  integrated  once  Formerly,  employer  i s in fact  i n the  large  the  the  agreements.  first.  accepted  province.  portion  negotiate  set  f o r both  associations,  r e p r e s e n t a t i v e of  want  the  benchmark  master  agreement.  FIR the  employer  forestry  Coast  expired before  has  B.C.  n e g o t i a t e the  Interior  renewed  by  today  becomes  was  agreement  Although  to  Northern  agreement  modifications  b a r g a i n i n g i n the  Coast  the In to  agreement  the  92 The employer  r e l a t i o n s h i p between  t h e PPIRB  associations  one t h a t  For  many y e a r s  the  solid  the  Pulp  two  organizations  office There  tower  matter  have has  which  identical been  order  understanding  represent  many  companies that side  pulp  employers  negotiations  had i n p u t  i n the past  t h e norm d u r i n g  o f a downtown frequently.  large  they  work  integrated  o f work.  leapfrogging  won  i n the  t h e FIR-IWA  been  to ensure  that  able  to afford  t h e same s e t t l e m e n t  This  other.  wood  among  negotiations.  throughout  of  Coastal  and c o m m u n i c a t i o n industry  should  f o r many y e a r s i n  of union that  on  and t h e I n t e r i o r s o l i d  employers  The  e m p l o y e e s o f t h e same c o m p a n y  over  into  recently  t h e two  o f t h e same  the p o s s i b i l i t y  employers  have  floor  between  of the industry  i n one i n d u s t r y  won b y  b y a common CEO.  t o communicate  a p o l i c y of the associations  settlements  has been  them  very  p a y , b e n e f i t s , and c o n d i t i o n s  t o reduce  The  allows  a long  products  overseen  wood  history.  those  up u n t i l  a r e h o u s e d o n t h e same  which  who  has a l o n g  have m i r r o r e d  In f a c t ,  B u r e a u and FIR were  has been  forest  settlements  wood e m p l o y e r s .  associations  no  pulp  i s also  and t h e s o l i d  a l lparties This  has  the province  are  on b o t h  sides  of  operations.  T r a d i t i o n a l l y , the industry's  final  offer i s  made t o b o t h  t h e IWA b y F I R a n d t o t h e p u l p  PPIRB  a t t h e same t i m e .  completed,  the pulp  Once t h e C o a s t a l  industry  unions  IWA  their  by t h e  contract i s  s e t t l e s soon a f t e r .  93 IV. 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 Bargaining traditionally pattern of  the  been  bargaining industry.  advantages the  i n B.C.'s f o r e s t p r o d u c t s  this  p a r t i e s are  highly  been has  the  of  discussed  in turn  pressed The  time  for  IWA  province's  and  to  narrow  Coastal  and  for  days  to  224  from  August  was  needed  wages. plan.  and  1967  resulting  and  June  remove  union  hour 30  the  to  (the  15).  In  1972  of  mid  for  get wide the  has  union  that  1960s. move  a common e x p i r y  date  existed  IWA  a  between  members  struck  from  expiration  agreement  fourteen to  Wide  to  that  only  for province agreement  each  negotiations  move t h e  failed  to  employer  differential  Coast  final  union  asked  i n a master  of  towards  wage gap  and  given  sides  the  negotiations  the  the  June  on  round  narrow  and  i t i s the  to  31  to  the  strong  wood  Industry  wide  IWA  1964  system  from  Interior  an  However, the The  the  by  solid  has  to  members.  cents  to  Wide  agreements  close  the  this  bargaining  of  marked  has  below.  province  i n the  three  in  historically  of  i t successfully since  Interior  fourteen  to  goal  began  the  of  and  bargaining  Association  bargaining  long  pulp  development  centralization  association  the  structure  A. The Move f r o m Bargaining The  c e n t r a l i z e d and  between The  industry  four  cent  fifty date  expires day  strike  differential  a common  in  pension  negotiations first  time  in  1977.  94  The  IWA was n o t s u c c e s s f u l  successfully The in  issue  1981.  different talks  felt  going  often  were  with  dealt  with  broken  i n conditions,  a t t h e same t i m e .  contracts  t o be s i g n e d  to  their  argued  that  products,  Eventually  this  point.  t o change  the three  regions  and m a r k e t s  t o be  the deadlock  to negotiate  a t t h e same t i m e  in a  F o r s i x weeks  however, wished  agreement  commitment  t h e same  the h a l l  of time.  FIR s t a t e d  head  rounds of  b u t down  associations  plan.  came t o a  arguing  as FIR and t h e u n i o n  by t h e e m p l o y e r s *  record  pension  separate  a waste  of bargaining.  but i t d i d  negotiations  t h e same p e o p l e  stalled  too diverse  wide  the three  r o o m was s i m p l y  format  were  wide  regard  o n a t t h e same t i m e ,  None o f t h e e m p l o y e r the  a province  of province  T h e IWA  negotiation points  negotiate  i n this  three  was master  i n t h e same r o o m a n d  t o one s e t o f n e g o t i a t i o n s  in  1983. In formed from IWA to  1983 t h e F o r e s t  as t h e n e g o t i a t i n g  a l l regions  Subsequent  rounds  associations taking  once  the lead  only  bargaining  and s e t t i n g  employers  For the f i r s t  time the  was p l a g u e d  as a group  t o one segment  of negotiation again  ( F L R C ) was  representing  group  and had t o d e a l  related  Council  However, t h e e x p e r i e n c e  The e m p l o y e r s '  conflict  that  committee  i t s goal.  be r e p e a t e d .  internal  Relations  of the province.  had a c h i e v e d  issues  Labour  have  found  several  province.  the employer  separately,  the industry  by  with  of the  was n o t  with  pattern.  FIR  95 Despite  the fact  associations from  pattern  bargaining  between solid  pulp wood  Advantages  employers  represented  bargaining reduced have  been  products  The s t r e n g t h  sectors  industry  has been  h a s made t h i s s o .  has worked and paper  of both  employer  t o the advantage of  and t h e lumber  integrated  t h e PPIRB  firms are  and a t l e a s t one  associations.  t o t h e i r advantage  Association  i n that  i t has  Bloedel,  integrated  damaging Not o n l y  down, w h i c h  logs  a r e used  logs  and produce  upon  i n both  effects i s that  firms  on t h e r e s t part  a  of the firm's damaging, but  as t h e f o r e s t  chips,  and p u l p  and p u l p  mills  strike  of the  products  the i n t e r a c t i o n of a l l sectors: sawmills  as  or the pulp  i s financially  integrated  such  Challenge,  sawmilling,  in itself  as c l o s e l y  relies  companies,  CANFOR, o r F l e t c h e r  be i t l o g g i n g ,  c a n have  industry  industry  their  exposed.  business.  business  of the  and between t h e  associations  of the large  i n the ranks  any s e c t o r  industry,  an  the pulp  any of t h e l a r g e  MacMillan  firm's  employer  wide.  the table  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  In  in  and lumber  A number  the forest  across  i n t h e B.C. f o r e s t  bargaining  i n both  industries.  employer  t o Employers  Association  of  as a team  i s essentially industry  regional  B.  the province's  do n o t n e g o t i a t e  the union,  industry  that  mills,  raw  sawmills  use chips  use  and l o g s .  96 When o n e s e c t o r other  sectors Not  of  eventually  only  grind  can a s t r i k e  i n one s e c t o r  secondary  picketing  Thus, a s t r i k e large  thereby  the be  wood  lead to  other  locations.  t o a complete  on t h e e m p l o y e r . a t one t i m e  standstill  Negotiating clearly  reduces  any o f t h e i n d i v i d u a l s e c t o r s can  labour  costs.  final  advantage  association  lumber  to increase  their  When e m p l o y e r s  the opportunity action.  financial  bargaining  bargain  to single In e i t h e r  result i n disaster were  has g i v e n  non-integrated  been  competitors  bargaining  to small  has  power  jointly  sector  i n supplying  o b l i g a t i o n s mounted.  industry, producers,  the unions  do n o t  weaker  of the industry  were  struck  firms  this  and i t s  i t s market  In such  to  v i sa v i s the  out economically  i fa firm  successful  h a s an  i n the industry.  products  notably  could  reason,  of the forest  most  strike  of i t s  sectors  but  have  power, o r f o r whatever firm  f o r both  the standardization  No o n e f i r m , b e c a u s e  any o t h e r  i n both  bargaining  has been  over  employers  unions.  of association  employers  bargaining  advantage The  advantage  and p u l p  industry  superior  its  but a  had t h e p o t e n t i a l o f b r i n g i n g  sectors  at which  because  struck.  solid  for  businesses,  p r i o r t o 1987, a l s o  immediately  f o r a l l three  Another  of  firm  huge c o s t s  opportunities  be d a m a g i n g  of a l l the employer's  integrated  contracts  could,  i t means t h e  to a halt.  the firm's  a t one s a w m i l l  imposing  of time  i n one s e c t o r  t h e i n t e r a c t i o n between  strike  a  i s down f o r a n y l e n g t h  a case  while the firm  97 would  find  itself  a t t h e end o f t h e s t r i k e  ruin.  The o t h e r  major  forest  companies  i s the benefit  association's  industrial  firms  have  their  agreements,  access  C.  legal  and p e n s i o n  Advantages The  unions  industry  bargaining.  also  a plant  time to  need  format  years  negotiations rules, have  Having  been  long  industry  wide  for  than allow  year  deal  negotiators that  only  round.  across  issues  f o r union  wood s e c t o r s .  firm  the unions  to the task. these  once  two o r  wide o f work a l l of which t h e most  the development of  plans  As  committees  every  Perhaps  members  These  by  extremely  allow  the province,  has been  of  and  Province  objectives.  agreement  on a f i r m  f o r the standardization  union  plans  of a master  a great  means  of B r i t i s h  the format of  negotiations  on n e g o t i a t i o n s  of these  and s o l i d  grievances  be e x p e n s i v e  of bargaining  time  pension  to conclude  industry  to negotiate  would  wages, and b e n e f i t s  significant  pulp  the unions  and s k i l l e d  rather also  with  The n e g o t i a t i o n  basis  to concentrate  three  small  of the a s s o c i a t i o n i n  satisfied  Industry  trained  this  These  administration.  been  by p l a n t  appoint  from the  services.  to process  assistance  cost.  consuming.  well,  counsel  i n d u s t r i e s saves  administrative or  relations  receive  i n the forest products  have  both  they  non-integrated  to the Unions  Columbia  in  to small,  to professional negotiators  them, and t h e o n g o i n g contract  advantage  in financial  i n the both the allow  f o rthe  98  complete is  portability  important  and  of pensions  i n an i n d u s t r y  the displacement  technological  unions  industry  wide  bargaining  possess the  face  their  industry  own  instead  could  be w h i p s a w e d .  gives  i s a strong  deal  producers  B.C.'s i n d u s t r y  D.  Reasons  B.C. the  forest pulp  between small of  twelve  group  production  or Finnish  i s only  and f o u r t e e n  t h e same  been  processes,  can  down  inflict the whole n o t be  i twill  instead.  i n either  of Association  be  The  impact  case.  Bargaining  so s u c c e s s f u l  i n the  f o r a number o f r e a s o n s . a small  over  group  the past  of employers decade.  are a l l integrated size.  basically  unions  i twill  markets  producers  has been  industry  of employers  have  their  firm  structure  unions  although  Should  by  the pulp  t o shut  Their  identical  and t h e u n i o n s  forest  markets as have  with  pulp  a l l of which  on a f i r m  that  t h e same  bargaining  there  approximately  newsprint  supplying  products  side,  to bargain  know t h a t  remains  The  r e l a t i o n s departments.  f o r the Success  Association  companies  by t h r e a t e n i n g  other  on  in particular.  As i t i s t h e p u l p  o f damage  Swedish,  that  In a c e n t r a l i z e d b a r g a i n i n g  The e m p l o y e r s  American,  them  possibility  industry. B.C.  crews  through  the strength  sophisticated  choose  i s not p o s s i b l e .  great  by m o b i l e  of people  recognize  industrial  there  a  also  large  basis  this  which  change.  pulp  must  the industry  characterized  and t r a n s f e r  The  unions  within  which  On -  This companies  f o r pulp been they  and  their  99  negotiate.  I t has  e m p l o y e r s , who their  The that  i t has  separate  that  associations  been  and  Bargaining has  determined other  by by  settlements  been  the  group to  of  coordinate  group's  reflect  The  they  different face  of  the  of  three  the each  of  employer  within  markets, been  had  in  pulp  employers  have  their  has  However, w i t h i n  i n terms  that  the  sector  in  represent  rather  i s true  same.  to  but  in this  what  enough  somewhat d i f f e r e n t  association  province.  coordinate  Summary and  industry  that  the  costs  support  province,  much o f  similar  this  similarities,  employer  the  the  remains  successfully  the  one  has  employers  of  to  for  negotiations.  associations  processes,  V.  had  regions  great  sector  a l l across  association have  these  difficult  d e m a n d s and  wood  not  environments various  been  throughout  solid  employers  the  share  bargaining  objectives  not  a  region  production  able  to  bargaining.  Conclusions in British  been  governed  the  existence  the  pattern  reached  by  Columbia's by  two  of  FIR  sets  the  setting and  forest  structures:  employer  and  the  of  products  associations  following  other  one  between  employer  associations. In  attempting  structure products observe  of  discern  collective  industry both  to  sets  over of  significant  bargaining the  past  bargaining  i n the  decade  changes B.C.  in  the  forest  i t i s necessary  structures:  the  to  formal,  and  100  based  o n who  i s included  i n the employer  negotiations  and w h e t h e r  employer  be  the preferred  products of  industry;  negotiations  and,  whether  continues.  method  strong  for negotiating  the pattern pattern  The n e x t changes  then  the changes  the  established  that  structure  i n B.C.'s  f o r the others  first  have  continue  determined  bargaining  chapter  environmental analyses  associations  and t h e i n f o r m a l ,  sets  association  among  analyses  affected  of bargaining  forest  by w h i c h  set  to follow  the parties the  significant  the industry  i n the parties'  to  and  preferences f o r  i n the industry.  101  CHAPTER F I V E : ENVIRONMENTAL CHANGES A F F E C T I N G B A R G A I N I N G STRUCTURE IN B.C.'S FOREST PRODUCTS INDUSTRY  I.  Introduction During  the  significant brought  changes  about  by  technological pressures patterns  and  been how  and  to  they  found  i n the  not  affected  globalization  rates,  on  products  differentiation the  begins  effects  of  products  changing The those  of the  the  have  section  created  f o r c e s which of  markets decade's  have  British between major  factors  and  the the been  which  alone,  world  but  wide:  in  the  currency  r e c e s s i o n of chapter unique  Columbia: r e g i o n s and  labour  have  B.C..  industry  of  this  changes  of  those  and  of  collective  industry  technology,  created  purpose  industry  products  and  employer  increased fluctuation  second  industry  of  addressing  forest  markets,  they  industry  bargaining  The  structure  by  of  have  environmental  forces impacting  1980s.  concentrates forest  of  the  forest  been  changes  pressures  of  competitive,  traditional  these  a number  products  economic,  industry.  what  been  forest  These of  in this  the  have  decentralization  impacted  chapter  early  up  d e s c r i b e what  have  exchange  B.C.  i n the  break  f o r the  have  there  environments.  The  rather,  the  i n the  i s to o u t l i n e  bargaining  have  decade  shifts  f o r the  associations chapter  past  the  to  the  increased  firms,  d i s p u t e s , the  and 1984  102 pulp The  i n d u s t r y l o c k o u t and chapter  effects  concludes  these  bargaining  changes  t h e 1986  forest  industry  with  a d i s c u s s i o n of the  have  had  p r e f e r r e d by b o t h  upon  different  the structure  the unions  and  strike.  of  the employers i n  the i n d u s t r y .  II.  World  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 International Competition Perhaps North the  t h e most  American  trade  significant and  increased pressure  and  Increasing  single  industry during  of f o r e i g n  force  t h e 1980s  competition  globalization  of markets.  No  manufacturers  have  markets anywhere  not  e v e n a t home.  technology business heart  across  increasingly and  restricted North the  global,  pressure  trade  to the  i n the  world,  to transact  has been  has been that  have  at the  become  applied to  remove  have p r e v i o u s l y markets.  been  Suddenly  f o r c e d t o compete  in  marketplace. Columbia's  producers  province's  been  American  As m a r k e t s h a v e  to p r o t e c t domestic  immune t o t h e s e  lumber  boundaries  barriers  manufacturers  North  e x c h a n g e s and  international process.  do  due  has  development of i n f o r m a t i o n  currency  non-tariff  British been  rapid  change  American  world  The  to handle  of t h i s  tariff  assured  longer  impacting  have  primary  forest  changes. been  pulp  products Both  i n d u s t r y has  pulp  and  adversely affected  producers  have  always  paper  not  and  by them. had  to  The  compete  103 in  world  markets  product. even  H o w e v e r , new  lower  of  South  grade  South B.C.  produced  producers.  This  of  plantation  in just  fibre  to  and  mature  1,000,000 without pulp  to  the  hectares  workers,  increased  is  been  be  used 1000  of  timber  low  the  and  priced  to  pulp  supply  threat which  pulp  needs  as  to can  hectares  mill.  seventy  mill  i t .  a  accordingly,  35,000  ton/day pulp  Of  the  regarded  fibre  only  wage d i f f e r e n t i a l  fees  hurt.  markets  now  softwood  have  duty  have  been  charged  in  Canadian  In years  requires  This being  cost paid  alone, to  B.C.  rates.  adversely affected the  had  an  into  e n t e r i n g the American  provincial  too  low  advantage  through  remove  this  the  rates,  unfair  duty  country.  coffers,  stumpage  lumber  unfair  applied a countervailing lumber  particular  r a t e s were  subsidized To  in  American  stumpage  by  provincial  sawmills  lumber  i t was  stumpage  by  1986,  Canadian  because  flow  raised  Late  that  U.S.  Canadian  government  1000  ton/day  producers  in effect,  artificially  (generally  needs  been  markets.  eucalyptus  and a  has  become a r e c e n t  i n B.C.  same  and  the  years supply  claimed  advantage,  has  uses  to  producers  world  pulp)  Small, non-integrated  badly  that,  pulp  their  marketplace  change  world  of  substantial.  stumpage  government.  in  pulp  c o n s i d e r i n g the  B.C.'s l u m b e r  have  pulp  seven  land  contrast,  onto  wood  nature  h a v e made t h e  significant  pulp  ground  American  grown  commodity  B.C.'s s o f t w o o d  finest  be  the  One  American  than  world's  of  entrants  more c o m p e t i t i v e .  influx  the  because  to  Rather  than  B.C. allowing  the  104 tax  to  stay  i n the  removed, but not  only  but  on  on  B.C. the  province. lumber  lumber  a l l lumber  The  U.S.  duty  was  now  have  higher  costs,  U.S.  market,  producers  that  produced  they  ship  to  the  r e g a r d l e s s of  subsequently  i t s export  destination.  B.  F l u c t u a t i o n i n Exchange Further  producers  in competitive  volatility Pulp  and  of  exposure  world  f o r e i g n exchange  lumber  dollars. nearly  i n c r e a s i n g the  The  products  American  are  a l l f o r e i g n markets. remain  constant  over  changes  i n the  value  the  dollar Until  western be  product  into  Over  the  larger.  favourable  Canadian  were  and  and  be  of  sold.  the  there the  other  the  years  t h a t were  rates,  may  the  world  dollar,  but  U.S.  exchange  profit of  the  and  the  loss.  major  Producers which  be  total  costs.  have  become  before,  just  at  so  notably  the the  more now.  between  a l s o between  could  their  n e c e s s a r i l y be not  U.S.  vis a vis  swings  profitable  in  unlikely,  producers'  c u r r e n c i e s , most  decade.  in  rates could  currency  not  of  values  r a t e at  i s more v a r i a t i o n  U.S.  is  stable.  exchange of  past  i f prices in  dollar  currency  exchange  Thus,  the  currency  which  relatively  fifteen  Products  i s the  products  the  internationally  Canadian  the  forest been  rates during  time,  calculation  past  has  d i f f e r e n c e between  1970s,  exchange  addition,  dollar  mid  confident  would  factored  In  the  make t h e  democracies  fairly  much  can  B.C.  Thus, even  dollars  U.S.  of  markets  sold  dollar  of  Rates  the  U.S. Japanese  105  yen  and  the  industry costs  German  have  responded  i n order  profitable  C.  that  over  Changes Another  technology  in  because  the  the  of  lumber  for  of  full  areas  of  been  timber use  of  log.  i n which  increasingly  ensure  that  they  smaller earned  processing  these  be  process  able  to  product. technology  The was  small them  second to  efficiency  and  and  for  close license  an  logs,  B.C.'s  quickly  reason  and  f o r the  about  i t s sustained marketplace.  development of  province's maximize  were  brought  rate  return  with  increase productivity  order  of  i n order  to  to  in  operators  little  adoption  governing  required  In  sawmill  return  about  trees. of  the  sawmills  the  policy  were  in  many  to  holders  adequate  come  been  utilization  diametered  new  i n d u s t r y has  i n the  changes  of  ever  of  dynamic  technology  the  implementation  automation  tasks  These  government's  licenses  has  technological i n the  been  This  increasingly  computer  the  be  values.  has  products  reason  use  by  currency  business.  forest  and  first  to  adoption  biggest  i n an  raw  continue  increased  i n B.C.'s  main  given  can  implementation  intensive  a  a l l other  and  labour  from  minimize  development  previously the  to  1980s  i n d u s t r y have  in  products  the  The  single  two  of  forest  of  need  competitiveness The  ranges  the  Technology  competitiveness.  perhaps  products  a l l aspects  technology  in  trying  characteristic  rate  new  Firms by  the  larger  in  increasing  of  mark.  had  to  waste the to  justify  106 the  increasing  cost  of  wages p a i d  to  l o g g i n g and  sawmill  employees. The the  loss  however, today  result of  of  the  thousands  a dramatic  marked  feet  IWA  growth  utilization  could  produce  eight  hour  the  technological will  collective those  who  attrition, other  are  At  foot board  loss  of  The  by  has  years  so  at  is in the  s e t , when s a w m i l l s lumber  adequately  has  changing  r e t i r e m e n t , and  has  jobs  also  the  time  that  in  an  efficient.  union  that those union  that of  This  ago,  of  been  time  capacities  unusual.  c l a u s e s t h a t ease  displaced  same  occurred  shift  j o b s , the  reasoning  paid.  the  measure  considered IWA  technology  has  not  were  were  well  early  jobs.  e i g h t hour  standards  agreement are  this  i n output  lumber  change,  be  of  c o n d i t i o n s twenty  25,000  shift  Despite  remain  of  c o n t r a s t to  close  welcomed that  do  negotiated  transition  technology,  retraining  and  of  through transfer  to  positions. Today, because  occurred North  i n B.C.  America.  Northern  mill, so  of  s a w m i l l s t h a t have  500,000 board  two  adoption  takes  smooth  whole  of  latest  Interior  l o g s and  trouble shooter  likely  to  become t h e  the  machinery  needed  along  norm  are  converts  i s controlled  single  investment  technology  mills,  p l a n i n g i s not  process  capital  s a w m i l l s , they The  raw  the  by  them  i n one one  the  i n the  has  most p r o d u c t i v e i n  to  be  known to  implemented as  the  c h i p s and  line  operator  line.  that  This  Linck lumber  process. and  in  The  s p o t t e d by  technology  small log Northern  is  mills  a  107  over  the  next  green  chain  gone,  but  It  decade  positions  the  need  i s in this  $23  per  (Mackenzie  hour,  lumber  at  the  labour  costs  that  for a  previously  planing  way  that  can  manufacture  same of  B.C.,  cost  $7.50  1988).  as  per  only  sorted  mill  with  Not  are  the  finished  i s also  lumber  eliminated.  labour  costs  approaching  a thousand  board  feet  Southern hour  U.S.  producers  ( Vancouver  Sun,  of who  have  April  7,  1988). The  pulp  undergone years. large  a  the  1960s  modern  pulp  In  older  the  Coastal  technologically There  has  integration mills as  are  now  pulp  new  pulp  also  at  been  a  pulp  over  building  of  i n the  paper  mills  trend  i n the  has the a  also past  number  twenty of  Interior  of  was  made  i n some  which  were  investment  a  Gold  and on  highly and  paper  the  remove  Another  faster  variable  mills  the of  and  wider With  i n the  from  pulp the  market. newsprint under  1989). of  the a r t  newsprint  machines,  a c q u i s i t i o n of  industry  mills  standard  is currently  state  the  forward Newsprint  older  a l l have  mill  use  to  commodity  (Mitterndorfer  capacities.  productivity  of  themselves  MacKenzie  River  1980s  industry.  sites  newsprint  newsprint  With  daily  capital,  heavy and  Alberni,  new  technology. huge  mills  paper  to  site.  have  and  1980s  industry  investment the  attempt  mills  the  witnessed  built  Port  These  heavy  of  outmoded.  market,  construction  side  being  Crofton, on  of  i n B.C.'s  producers  kraft  paper  period  The  province.  and  has  they this  improved  108 dramatically  over  between  and f i v e  four  manufacture labour  are required  of labour  effects B.C.  effects  since  were  were  required only  of that  i n the  two h o u r s o f same t o n  1989).  economic  recession  T w e n t y y e a r s ago  Today  i n the production  Recession i n the Early The  the  hours  of a ton of newsprint.  (Mitterndorfer  D.  t h e p a s t two d e c a d e s .  of t h i s  of the early  the Great  felt  forest  downturn  1980s 1 9 8 0 s was  the worst  D e p r e s s i o n of t h e 1930s.  w o r l d wide  i n hundreds  products industry recession  Its  of i n d u s t r i e s  was no e x c e p t i o n .  c o n t i n u e d t o be f e l t  late  and  The into the  decade . By  early  increasing the  interest  rates  to the forest  themselves  late  markets  heavy  a s many  firms  carried  sizeable  two  y e a r s o f t h e 1981 c o n t r a c t . still  workforce the  wages by o n l y  solid  increase 6%.  Sun March  wood  IWA  14,  debt  burdens  a third  1988).  i n the unions  of the  lumber  of the sawmill asked  year or to  refused  also  due t o  the industry's  employers  flatly  were  companies  In 1982, w i t h  of the second  The  rates  o f 15% and 13% i n each  and more t h a n  on l a y o f f ,  1 3 % wage  (Vancouver  increases  flat,  i n wake o f  and m a c h i n e r y  Despite these conditions, wage  soft  interest  large  capital  won  markets  High  products industry  i n v e s t m e n t i n new  1970s.  had gone  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  number o f h o u s i n g s t a r t s .  damaging  the  1980 l u m b e r  each  to  postpone  increase request  109  In  1983,  for  lumber  the  Interior  had  improvement members  the  increase several plant Even the  lumber in  the  first the  layoff  one  early  wide  campaign  to  out  public  were  about  the  to  take.  the  rules  i f they  clear  and  were  promised for  an  relaxation  of  maintain  cost  29,  need  a  1983).  negotiations  by  forest straits  the  for  union  forest  rules  cut that  competitive  Employers without  also a  small  firms  significant  local  multi-  integrated  firms.  industry  eventually  the  as  hurt  industry's  work  was  preceded  by  history  the  industry  a employers  was  in  bargaining  position  employers,  the  in  Employers  made  industry in  by  industry  concessions  survive.  immediate  work  tough  industry  the  in  a  1983).  by  products  For  to  17,  IWA  the  were  negotiations  for  May  of  1980s.  economic  support  highlighted  security  of  large  losses  cent  in  acquired  the  per  saw  mainly  small  deepened,  companies  the  province  gain  of  largest  round  point  were  The  1983  Sun  period  market  benefitting  twenty-four  and  American  this  consolidations  integrated  during  Despite  This  firms  by  the  somewhat,  continued  of  but  (Vancouver  victims.  or  recession.  The  on  plant  large  recover  markets,  number  companies  declined  producers.  lumber  single  occurred  to  recession  in  the  markets  begun  remained  As became  pulp  wage  unions demands  employers  industry expressed stoppage  felt  long and  job  a  necessary  their  to  to  work  need term  Sun  order  they  and  this  (Vancouver  in  to  recession  wages  need  and  to  March conclude  re-  110 establish  their  reputation  as  reliable  suppliers  i n world  markets .  III.  Industry In  world  Specific  addition  wide,  products  Changes  to the  forces  that  environmental forces  industry  have  put  have  unique  increased  impacted to the  industry  B.C.  p r e s s u r e on  forest  industry  participants .  A.  Changes 1.  i n Product  Forest  As  stated  Markets  Industry i n Chapter  always  province  have  climatic  conditions,  Recently  these differences  Northern commodity 2x6's. highly  of  efficient,  also  supplement  sale  o f wood c h i p s  periods the  of  soft  difference In  Interior unlike  their  from  to the  the  the  producers  those  i n the  Coastal  dimension have  lumber  and  by  being  these  industry.  sale  mills  of c h i p s  the In  can  mean  loss.  producers lumber  do  of  and  business with  paper  the  market  Most  have  market  come t o d o m i n a t e .  Interior,  markets.  predominantly i n the  in this  p u l p and  profit  the  technologies,  m a i n l y 2x4's  producers.  markets,  between  and  remain  lumber,  dimension  lumber  contrast,  themselves  producers  cost  products,  r e g i o n s of  become a c c e n t u a t e d .  successfully  low  various  of t r e e s ,  have  dimension  compete  the  different  species  Interior  market  They  had  Three,  not  tried which  Coastal  produce  to  remove  the forests,  uniformly  sized  Ill  trees  that  allow  Harvesting the  on t h e C o a s t  terrain  floors.  Instead,  and  Coastal  yellow  cedar  (Bennett  setting  Coastal buyers  Coastal  feet  than  The J a p a n e s e  Other they  o u t new  producers  find  panelling  kinds  would  free  needs. large  and w i l l  pay a  are sold  and c l e a r  a premium  The  change  and paper  industry  markets  way i n  price for  i n the B r i t i s h  has n o t been  of the industry  and paper  another  Industry  i n product  evolutionary  of  1989).  and P a p e r  sector  other  i n the process  to charge  Pulp  wood  premium  of any  h o p e t o be a b l e  2.  else  a t premium  lumber,  (Bennett  the price  of t h i s  for their  product  q u a n t i t i e s of  get anywhere  the colour  are also  marketed  of i t s q u a l i t y  at ten times  of lumber  are knot  producers  sell  markets f o r have  on t h e b a s i s  producers  of  cost e f f e c t i v e .  standards  their  B.C.'s p u l p  sought  they  strength  they  ongoing,  have  valley  makes t h e p r o d u c t i o n  less  board  Coastal  wood  even  because of  and n a r r o w  t o meet s p e c i a l i z e d  for interior  which  solid  alone  market  because  defects.  2x4's  production.  more d i f f i c u l t  i n the Japanese  for i t .  prices  pulp  cutting  1989).  attractive  like  lumber  valley sides  of logs  products.  example,  thousand  price  sloped  to offshore  on c u s t o m  efficient  i s also  producers  added  product  For  per  products  value  their  - steeply  Thus t h e c o s t  commodity  more  for highly  one.  but r a t h e r ,  Although  products  as marked  a large  i s still  sold  Columbia  as i n t h e i t has been  proportion on  world  of  an  112 commodity  markets  the  commodity  markets  of  newsprint  toward  more  effort  reduce  the  to  producers their  are  producers example, others,  B.  As  end  commodity  in their  of  recently, markets  their  them  to  the  standard  and  markets,  standards  and  of  of  For  papers,  i n paper  have  a  B.C.'s  diverse.  coated  produce  an  customizing  products  weight  In  product  the  o t h e r s , who  ownership,  the  markets.  production  light  s t i l l  i n which  however, over  markets  difference  between  products.  More  were  for  publisher  newsprint  the  booming,  Pulp  for  Markets  for pulp  cyclical there  quality  recently,  been  and  and  lumber  prices fluctuated  time  for several years.  experiencing  of  more s p e c i a l i z e d  markets  related,  demand  and  niche  result,  Lumber  The  have  pulp  from  users.  demand.  markets  away  MacMillan-Bloedel, specialize  Divergence Until  a  produce  directories,  participation  their  tailoring  becoming  notably  specific  variability  often  some m i l l s  kraft  specialized,  customer. are  telephone  standard  integrating  products,  particular  i n d u s t r y i s moving  of  and was  often  the  market  an  with  world  has  not  a  large  f o r these changed.  unusually  high  levels  of  two Pulp  crest  Lumber, i n c o n t r a s t , i s  o r d i n a r y c y c l e s i n the  both  not n e c e s s a r i l y  however, t h i s riding  were  s t i l l  demand  and  prices. While matched  pulp  i n terms  and of  lumber  markets  up  down  and  were  relatively  c y c l e s i t was  evenly  financially  of  113  feasible  to  the  wages  same  industry's benefits  in  one  in  the  However, markets  remain  justify  the  Clearly,  to  the  do  workforce  desire  the  fact By  of  over  lower  the that  time  than  that  now  that  pulp  markets  unexceptional,  payment  of  identical (and  their  pulp  and  counterparts  about  it  paper  the of  fact  (Gunderson  i s unreasonable  benefits sector  of  their  cannot  similarly  pay  that  operating  twenty-five  sawmill  won  the  in  might  have  been  the  and  leapfrog other  l e a p f r o g not  to  to  (Snow  costs  to  1989).  can  only  have  the  was kept  been,  lost  in  a  However, to  simply  pay  booming for  and  but  to  while  the  impossible)  now  afford,  of  represent mill  pulp  to  especially only  about  they  costs  unions  the  wages  and  because  the  solid  wood  workforce  in  are a  believe  increase  i t s unionized  ask  that  while  operating  the  to  benefits.  benefits  pulp  lumber  industry  and  costs  percent  refuse  members  wages  labour  1989).  afford  the  thirty  are  probably  to  percent  to  wages  employers  ten  to  wages  unions  i t i s hard  wood  of  industries  process.  i t i s unreasonable  light  these  i t worked  they  might  solid  in  in  keeping  i n c e n t i v e to  costs the  In  so.  industry  benefit reduced  strikes  unionized benefits.  Removing  and  also  and  parallel,  reduced.  it  the  advantage  settlement  wage  pay  114 C.  ten  Labour 1.  Pulp  The  1984 p u l p  week  strike, the  Disputes  long was  Pulp  and Paper  wide  negotiations  dispute, lockout  was  pulp  but the industry over  result,  customers  supplier  (1970,  also  t h e same looked  shut  in a  b y a t w o week  elsewhere  p r o d u c e r s headed  the  pulp  and paper  Bureau. industry during down  about  period  B.C.  developed a  the early  a t each  one and a  in illegal  round  of  for their  suffered  half  strikes. pulp  to the bargaining  industry  of  1973, 1975, 1977, and  lost  whenever B.C.  resulted  followed  and paper  the industry  i n t h e 1970s  hours  which  l e d to the deaccreditation  as a r e l i a b l e  million  1984  Industrial Relations  Columbia's  Not o n l y  1979),  and paper  industry  reputation  1970s.  Industry  the c a t a l y s t that  British poor  and P a p e r  As a  and  paper  table  and  (Mitterndorfer  1989) . Employer strike the  record  unionized  regarded  devastating  being of  pulp  The e m p l o y e r s  workforce  i n B.C.  were  down  became  locked  of  out they  out of contract  as a s t r i k e  talks  h o w e v e r , was a s would  and t h e c o m p a n i e s '  unbearable.  poor  lockout  f o r what  The r e s u l t o f t h e l o c k o u t  by t h e c o m p e t i t i o n .  things  industry  in retaliation  to the employers  mills  served  doing  the industry's  as t h e i n t e n t i o n a l d r a g g i n g  the unions.  B.C.  with  l e d t o t h e 1 9 8 4 t e n week  CPU a n d t h e PPWC.  their  by  dissatisfaction  Pressure  have  markets  been. were  f o r a better  way  115  After the  pulp  the  unions,  deaccredit. employer move  to  by  those  members  group  bargaining  by  of  group  their  the  had  be  required  to  ability  to  conclude  a  2.  Forest  The  six  employer situation in  to  the  bargaining  Contracting precipitating many  years.  out  what It  was  no  unions  to  by  unless  the  longer instead  members  the  them  the  unions  merits  the  be  freedom have  to  the  association. their  other  benefits  of  the  down  conclude  left  continue  of  Several tied  to  to  the  allowed  the  to  to  were  without also  wanted  to  threatening  of  by  increase  association.  would  accredited  Pulp  Instead  membership  association  their  agreement.  industry both  and  paper  have  was  the  became  the  ideal  strike  within  between  the  industry  agreements  within  and  structure  the  order  strike  1986  forest  pulp  week  convinced  collective  solidarity  the  the  relinquish  Industry  associations in  an  receive  month  in  longer  allowed  withuot  in  no  These  and  taken  by  two  deaccreditation  wanting  membership  cracks  The  i t remained  deaccreditation  made  conclude  association  contracts.  was  over  remain  bargaining,  own  Bureau  the  and  were to  subsequent  negotiations  time.  who  was  power  plant  down  the  decision  cooperate  traditional  and  action  bargaining  to  members  the  This  plant  willing  lockout  the  them.  of two  1986 solid  However,  industry,  no  created wood unlike  formal  the  changes  resulted. major  issue  industry's issue  to  of  contention  worst  cause  strike  division  in both  116 within which the  and were  large  These  between directly  had  the  in  expensive  and  the  work. done  the  the  the  60  of  of  they  own  and  exclusively Bennett  the  what  to  i s done  not  the  these  on  the  almost  the  for  Coast,  solely  single  resources has  been  many y e a r s  when  the  by  IWA  to  done  integrated they  saw  Northern  struck  as  they  agreement  companies overly  necessary  Interior,  whose work the  be  without jobs  could  not  could and  restrictive  to  in  their  almost  the i n order  to  protect  having  their  own  potentially  settled  survive  logging  (Gunderson,  i t felt  signed  to  and  harvest  language  out,  work  plant  contract  forces  this  contractors.  a s s o c i a t i o n s ' members  work  out  members*  employer  the  needed  changes  three  jobs,  to  flexibility  maintenance  of  FIR.  increasing  contract  protecting  logging  Therefore,  the  contracting  members a r e  have  therefore  to  employees  wanted  of  any  generally  investment  for  firms  agreement.  CONIFER'S do  areas  situation  1989).  contract large  the  contractors  members* logging  to  with  language  by  province's win  proper  own  heavy  opportunities  opposed  were  However, w i t h the  The  belonging  their  employers  i n the  Interior  companies, timber  also  issue  Coast  used  and  collective  contrast  percent  the  owned.  the  associations.  this  associated  was  i n the  Northern  on  work  mills  IWA  inclusion  In  As  were  The  included  this  savings  There  repair.  of  they  equipment,  cost  inside  firms  by  traditionally  timber  mechanization  employer  affected  integrated  firms  harvest  these  and  contract  quickly.  resist  The  signing  language  117 because the  of t h e i r  smaller  increased result after  diversification  Northern  stumpage  Interior  Pressures companies  who  Interior  were were  also  experiencing  forest  companies  who, w i t h o u t  the business,  t h e IWA.  would  have  been  forced  trouble  had t h e y  Several  F I R members a g r e e d In order  financially with  bargaining been  done  duration  that  CONIFER  months FIR  i n bad f a i t h .  i t caused  and F I R .  first  time  days  t o endure  t o t h e IWA t h e IWA  First,  the s t r i k e  among  i n decades  from  this  firms  side  financial strike.  language  from  also  the pulp  a long  and  returned  approaching  individually  Despite  Member  non-integrated  i n serious  to sign  agreements  the union  ruling  with  t h e damage had  of FIR operated  f o rthe  was a s i g n i f i c a n t  rifts  i t created  the terms  a division  of settlement  between were  a s s o c i a t i o n s , the  saw CONIFER members a t w o r k  the s t r i k e . the ranks several  Second,  the s t r i k e  o f FIR members.  firms  event  i n the industry's  i n t h e end f o r members o f b o t h  division  four  As a  as d i d a l l o f t h e CONIFER members.  Although  members c o n t i n u e d  caused  t h e income  two d i f f e r e n t  structure.  during  h i t by  difficulties  These were  1986 f o r e s t i n d u s t r y s t r i k e  identical  t o work  financial  been  a n d s e v e r a l member  bargaining  hard  but to s e t t l e .  FIR s u c c e s s f u l l y charged  of the s t r i k e  The in  to stop  weak e m p l o y e r s  the union,  already  b u i l d i n g w i t h i n FIR.  with  work.  B u t , many o f  began.  to settle  to  sawmills,  was b a c k  agreed  of  pulp.  r a t e s , h a d no c h o i c e  the Northern the strike  into  settled  while also  For the  individually  118 with the  the bulk  down. it  IWA of  The  an  during the  the  association's  tradition  industry-wide  was  broken  and  the  in  of  seemed  in  the  employers  or  though  to  be  about  B.C.  returned  solidarity  Even  nevertheless  bargaining  and  settlement  1986.  pattern  concerns  strike  tradition  forest  longevity  products  about deal  environmental  an  increased  with  rates  of  products  changes  need  increasing  sectors  employers  have  flexibility  the  within  for  study  two  the  the  industry  industry bargaining  break  here.  of  brought  workplace  the  industry  two  forest by  of  both  the  changes  an the  and  that  created end pulp  to  sectors  and  industry The  has  employer have the  need  created  products  the  and  recent  changes.  three  forest  bargaining  associations  up  for  the  products  these  markets  have  The  to  increasing  of  of  sectors  i n which  B.C.  employer  Other  participants  i n the  because  themselves.  affected  diversification  pressure under  been  have  i n the  between  preferences  1980s  flexibility  within  wide  in  for  firms  structure  Shifts  need  of  two  the  -  and  i s heightened  1988  are  industry  uncertainty  industry  in  there  of  The  strike,  returned  of  be  industry.  flexibility  change.  the  industry,  levels  diversification  recent  for  of  while  closed  industry-wide  IV. The R e s u l t o f E n v i r o n m e n t a l C h a n g e Bargaining Structure Preferences The  the  reestablished, the  work  remained  within an  to  by  associations  by  traditional  paper  the  created  occurred desire  for  industry  between some pattern  119  agreement the  and  Coastal  A.  The  the  IWA  Interior  contract  Need  for  Environmental wide  have  competition,  increased  technology  industry  to  terms  also  forest  become  products  financial greater industry  to a  a  This  six  month  central  for  and  emerged  is  likely  the  Negotiations  topic  once  to  now  the  refusal  to  grant  scheduling  centralized  of  need  basis  for  the  the  made  in  of  remain  rules  1986,  strike,  slated  that  work  a  this  and  to  increased  central time  i t again  the for  central industry 1991  a  1983  negotiations. a  B.C.  varies The  and  contract  commitments,  operations  first  the  in  in  Fiercer  issue  leading was  made  The  need  as  rapid  throughout  will  the  invariably  again.  unions  the  firm  world  rapidly  participants.  round  to  the  investment  c h a r a c t e r i s t i c of  Up  the  1988  industry.  Flexibility  by  again  industry  flexibility  raise  to  and  products  of  was  business  f l u c t u a t i o n , and  the  scheduling  the  decade.  as  industry  forest  becomes  firm  size  in  next  in  a  issue  change  forest  round  work  topic  linked  FIR.  leanness  flexible.  on  among  in  are  affected  a l l created  industry  bargaining  flexibility issue.  more  viability,  degree  with  have  currency  have  needed  that  increased  B.C.'s  changing  is  negotiated  changes  in  agreements  Flexibility  necessitated  competitiveness  lumber  have  industry  remained  concessions  operations.  bargaining  has  not  adamant  The  in  current  generated  for  in  work  their rules  structure the  and of  industry  120 the  bargaining  has  become t h e b e l i e f  employer process union able to  power  bargaining  to negotiate  remain  viable  Recent  local  industry  basis,  in British  would  to break  bargaining  way  to  the  It  increase  bargaining  By s i n g l i n g o u t t h e  some e m p l o y e r s concessions  hope  they  t o be  require  industry participants.  changes  changes  the unions.  the only  level.  the f l e x i b i l i t y  w e r e made t o i n c r e a s e These  upon  i s to decentralize  or plant  by  i t sw i l l  o f some t h a t  power  to the firm  on a l o c a l  to force  Columbia's  labour  i n d i v i d u a l employer  allow  with  employers  level  flexibility.  i n the f o r e s t  the t r a d i t i o n a l  a n d move t o f i r m  legislation  structure  or even  plant  products of  level  bargaining. FIR, little  the only  accredited  employer  legal barrier to deaccreditation.  applies  for deaccreditation  within  period,  then,  legislation  granted. only  The  only  t h e new other  PPIRB  changes been  power  up  of the other  to the province's  picketing  c u r t a i l e d somewhat.  dispute. bargaining  This  a l l plants i s no  on a p l a n t  could  structure.  longer  two  basis  voluntary  inflict  legislation,  of the employer  be  f o r FIR and t h e  power  in a  However, w i t h  the case.  must  bargaining  Previously,  by p l a n t  time  i t s request up  has  association  the designated  and CONIFER, i s u n i o n  bargaining  to picket  I f the  b a r r i e r to break  t h e p o t e n t i a l damage t h e u n i o n  decentralized  has  under  b a r r i e r to the break  associations, and  association,  recent  union  the unions involved  had t h e i n the  For multi-plant or f o r the  power  firms  integrated  121 companies the  IWA,  dispute  bargaining t h e new  location damage  site.  t o whipsaw at a time  Diverging The  I t would  Employer  now  specific  diversity  regions,  and even  each  their  employer  bargaining  the  group  for  t h e common g o o d  group  are able  i n terms  negotiate,  profitability, before such  as l o n g  and w i l l i n g  region,  regions  their  rates  i s growing critical  The m o r e  the unions  their  own  appear  t o be m o v i n g  t o pay w o r k e r s  of each  areas.  with  market  which share  they and  c a n become  among  The p u l p as w o r l d  and  firms  lumber  markets f o r  i n t h e two i n d u s t r i e s  industry.  and  viable.  in different  impossible  goals  homogeneous t h e  dissimilarity  less similar  i s q u i c k l y becoming  economics  retain  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  a r e becoming  ability  v i a b l e and  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  i n these  products  industries,  As s t a t e d i n  to relinquish  of the group.  there  The  as i n d i v i d u a l s w i t h i n  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  industries  The  between  region.  methods o f p r o d u c t i o n ,  the costs  Currently, and  within  only  of s i z e ,  their  at the others.  a s s o c i a t i o n s remain  power  a t one  to the forest  i n d u s t r y , has c r e a t e d  Two,  a strike  be f a r l e s s .  products  Chapter  of the  Interests  change  firms  from  be p o s s i b l e f o r  fully  would  separately  the site  by t a k i n g  operating  i n theory  environmental  unions  makes o n l y  the union  while  to employers  B.  the pulp  legislation  the primary  employers  with  directions. identical  due t o t h e c h a n g i n g  The r e s u l t  i s increasing  122 pressure  on  the  tradition  of  inter-industry  pattern  bargaining. Even  within  continue  to  pulp  paper  of  and  pay  standard  for  a  the their  of  and  workforces  costs,  rules  working  profit  basis.  firms  benefits  may  The of  the  of  move i n t o  paying  mean t h e  same p r o c e s s  industry.  province  continue  feasibility  of  benefits  those  on  becomes  highly  regions  the  This  the  industry  occurs  production,  a plant  separate  industry  i n the  by  and  a  markets,  wages  some  base  and  wood  I n t e r i o r wages  Even  for  the  mills  sector  among  firms  i n the are  large  ranks  grouped  together  integrated  in production  only  can  firms  firms  who  industry  within  these  mounting.  with This  will  the be  small  some  of  size  i n the  those  afford  the the  CONIFER where  companies.  mean t h a t  It i s these  of  of  and  the  d e c e n t r a l i z a t i o n are  integrated  may  I n t e r i o r regions  of  the  members.  solid  sector  work  plant,  niche  standard  r u i n of  by  on  s p e c i a l i z e in d i f f e r e n t markets,  set  scale  this  to  large  rates.  on  questionable.  small  As  methods of  these  to  The  markets  Coast  and  standard.  i n t o more d i v e r s i f i e d  even  Coast  to  markets  the  between  of  the  able  the  continuing  disparity  economies  from  is occurring  location sawmills  other  industry  be  As  pressures  province's  not  become more d i v e r s e  financial  i s e s p e c i a l l y true  single the  often  may  commodity  margins,  conditions  company and  requirement  i s moving  newsprint  c o m p a n y by As  the  d i f f e r e n t i a t e d products.  products, and  industries firms  industry  pulp  range  two  firms  industry with  standard able  to  123 remain in  i n the association  terms  preferences  more d e c e n t r a l i z e d  These  bargaining  the  of the break  i n the Canadian  this  tradition  wage  levels.  level  Over  Forrest's  national  pattern  wages coming  i n the beef  industry  has been  five  years  to  over enter  with  bargaining  decentralized  a n d wage p a r i t y no l o n g e r  from  sector,  and t h e i n a b i l i t y  the past  l e d to  pattern  industry.  on i n d u s t r y  market  of  s u c c e s s f u l l y i n t h e h u g e U.S. m a r k e t  meat p a c k i n g  plant  industries during  the c a t a l y s t that  competition  fora  with  down o f t h i s  pressure  non-union  compete  current  were  of a f o r t y year  to increased  significant  and  i n other  employers  are consistent  i n C a n a d a ' s meat p a c k i n g  (1989) study  capacity  industry  of bargaining  same d e s i r e s  1984 b r e a k d o w n  points  form  s i m i l a r to themselves  stability.  o f B.C. f o r e s t  done o f e m p l o y e r s  period. the  others  o f s i z e and f i n a n c i a l  The  studies  with  in  to the  exists i n the  industry.  C.  The U n i o n s ' Despite  for  highly  beginning quo.  these  of the decade,  bargaining  changes  wide  benefit  unions  remain  convenience, pension  i n employer structures  the unions  i n B.C.'s f o r e s t  administrative  and  marked  centralized bargaining  A l l three  industry  Preferences  still  committed  products  p a r i t y throughout  since the  prefer  the status  to industry  industry.  the a b i l i t y  plans,  preferences  to  The  administer  and t h e c o n t i n u a t i o n the industry  wide  are a l l  o f wage  124 advantages  of c e n t r a l i z e d  want  to lose.  VI.  Summary  that  This  chapter  has o u t l i n e d  have  emerged  over  the forest  changing  markets early  the  effects  these  between is  The  the  American  but also  used  differ:  of pulp  i n both  prices have  can supply  industry,  The  result  certainly  i n which  lumber  t h e s a w m i l l i n g and  the Coast  products markets.  also  to look  a t a premium  price.  and t h e d i f f e r e n t  As i n t h e c a s e  i t would  In s a w m i l l i n g ,  focus  i s on t h e  lumber  f o rthe  t h a t can capture The p r i m a r y  f o r niche  pulp  markets  which  The d i f f e r e n t i a t i o n  markets  t o which  dissimilarity  that these  they  of sell  between  of the Canadian  be e x p e c t e d  differs  c o n c e n t r a t e s on t h e  i n o f f shore started  sectors  regions.  c h i p s and d i m e n s i o n  c o n t r i b u t e d to a growing  workplaces.  world  disputes.  industry  the Interior  of s p e c i a l i z e d  products  technology,  c o m p e t i t i o n , and  f i r m s i n both  and t h e I n t e r i o r  market, while  producers  has  of a  to create diversity,  among  have  sectors.  also  manufacturing  their  increasing labour  factors  changing  the effects  o f two b i t t e r  the Coast  production  they  and t h a t  industry:  i n the decade,  technology  markets  premium  decade  the various regions of the province  and paper  between  products  f o r c e s has been  produced,  pulp  the environmental  the past  and p r o d u c t s ,  recession after  do n o t  and C o n c l u s i o n  affected  of  bargaining that the unions  meat  packing  divisive  forces  125 would  act  to  structures terms for  of  not  the  are  and  up  there  in  this been  taken  industry as  place and  dramatic  and  centralized closely  at  to  first  next date  seeks  to  would  to  following,  B.C.'s f o r e s t  The  as  now  tied  appear  decentralization. have  to  also  setting  decentralization  that in  which  pattern  building to  drive  in  another  apart.  The  products  chapter  explain be  one  glance  the  bargaining  to  few  examines  why  expected.  the  pressure  industry  be  structure  in  of  is  barriers  the  changes  bargaining  changes  have  126  CHAPTER S I X : FACTORS I N H I B I T I N G CHANGES STRUCTURE I N B.C.'S FOREST PRODUCTS  I.  Introduction During  t h e 1980s b a r g a i n i n g  America  have  foreign  competition,  industries, all  tended  contributed  of  many b a r g a i n i n g decade.  bargaining forest  products  this  bargaining dramatic  o f 1989.  date  employer  both  the  study  experience during  to date  i n the  Columbia.  The  objective  industry  have  been  s o much  industries, despite  less  exposure to  pressures. chapter,  The c h a p t e r  associations  (1989)  America  much o f t h e  during  interviews  association representatives  formal  have  why t h e c h a n g e s i n  begins  i n t h e B.C. f o r e s t p r o d u c t s  structure,  1980s  the changes i n  occurred  of B r i t i s h  was g a t h e r e d  and e m p l o y e r  summer to  here  have  i n other  i n the preceding  presented union  those  typifies  describes  in this  environmental  As  industry  i s to determine  structure  than  similar  that  industry  chapter  Forrest's  r e l a t i o n s h i p s i n North  structure  regulated  of the e a r l y  phenomenon.  North  Increased  of p r e v i o u s l y  recession  chapter  throughout  decentralization.  meatpacking  This  structures  deregulation  to this  the Canadian  this  towards  and t h e deep  of  of  IN BARGAINING INDUSTRY  changes under  information with  during  by o u t l i n i n g industry's  both the  the changes bargaining  i n the a c c r e d i t a t i o n of the  study  and more i n f o r m a l  changes  127 in  the  The  pattern  second  bargaining  section  bargaining Several  of  addresses  structure  f a c t o r s are  relatively  small  Columbia's  factors  including third  part  the  of  to  the  bargaining  t a b l e , the  resist  unilateral  c h a n g e , and  lack  of  discussion structure  II.  of  the  which  was  changes  can  be  described  formally  filled  with  culminated  expected  i n the  pulp  would  the  unions, their  threat  allow  i n an  the  of  previous in  1985  attempt  the  employers  sides  to  impact  of for a  bargaining  near  future.  Date  chapter,  the  by  legal  and  to  to  pulp  or  extract  a  decade which  1984.  their  I t was  Out  power v i s  employers  enterprise needed  Bureau  illegal,  reassert  association.  plant  Pulp  a f t e r more t h a n  province's  bargaining plant  both  concludes with  t w e l v e week l o c k o u t / s t r i k e of  and  on  force  Structure  work s t o p p a g e s , b o t h  deaccredit  that  i n the  to  the  the  explanations  industry's i n the  Have O c c u r r e d  as  on  unions  environmental  chapter  i n the  deaccredited  frustration  a v i s the  The  those the  in  Organizational  commitment  of  a l l cited  in  the  bargaining,  strength  are  change.  Changes i n F o r m a l As  to  marked  Changes That  A.  of  conditions  changes  occurred  industry.  impacting  the  the  explain  has  pressure,  practice  associations.  significant.  help  association  of  the  past  party  tradition  market  which  change t h a t  of  current  r e a s o n s why  f o r e s t products  employers  three  been more  identified  degree  and  the  have not  British  of  among the  agreed thought  bargaining  concessions  from  128 the  unions  work  and  allow  stoppages Despite  the  in  rounds  much a s  remained  before.  contracts  have  been  employers  negotiated To pulp  by  sector  interest  to  in  to  plant  accomplished  now  accredited.  In  be  able  to  no  that the  of  the  the  industrial  Since separate  January  no  associations.  overseen  by  of  one  process. to  negotiation, or  In  those  attempt  longer  two  both  cases  provisions  conduct on  could  employers  be  their  the  move  longer  as  i s expected a  i n terms  of  s o p h i s t i c a t i o n of  - Dissolution  PPIRB  Beginning  in  have 1974,  a common C h a i r m a n , who  been the  retired  of  run two in  of  their  departments.  Structure  to  voluntary  i t s members b e c a u s e  involved  and  the  easily  association  of  in  should  needs,  i s no  its affairs  and  despite  However,  Bureau  behalf  FIR  employers  meet t h e i r  bargaining Pulp  by  bargaining  1989).  relations  1989  rounds  a l l but  agreed  meantime, the  B. Change i n I n f o r m a l B e t w e e n P P I R B and FIR  were  with  location, profitability,  internal  1988  enterprise  bargaining  homogeneity  size,  and  been  level  adequately  organization the  proceeded  Bureau.  bargaining  company or  association,  has  i t (Mitterndorfer  centralized  the  deaccreditation  bargaining  has  pursue  of  bargaining  subsequently  there  fewer  and  concluded  Pulp  with  unchanged  1986  i n the  the  date,  the  agreements  1989).  virtually  following In  members i n v o l v e d these  conclude  deaccreditation  has  two  to  (Mitterndorfer  membership the  them  Ties  as bodies 1988.  129 The  Chairman's  associations negotiating to  ensure  industry one  tactics.  to  leapfrog  In  a move t o  be  has  not  managed  grow  paper  sector  solid  wood  has  will  make t h e  lighter  on  their  the  which  employers  increasing capital  that  improvement This  has  the  there  to  was  the  two  appointed  over  was  of  won  the  for  by  members'  the  the  sectors  that  continuation  industry  and  and  opportunity  association  two  two  coordination  no  discourage  occurred  as  increasingly become a The  feet"  must  sectors,  two  the  of  a  new  associations  very  different  president that  economic  dissimilar.  of  the  pulp  and  number of  contend. swings, costs,  the  business Pulp of  the  from  committed  well  i n advance  official  ties  between  FIR  much  1989)  in  with  include:  energy  enormous  to  "that 7,  the Eric  ties  variables  variables  unpredictable and  the  these  and  Bureau,  January  volatile  of  pulp  producers  Mail  These  bases  The  severing  primary (Globe  material  m u s t be  prices,  amounts for  of  capital  projects.  severing  organizations separate  been  currency  raw  in  between  increasing  international  benefits  increase  province's  of  this  that  the  positions  of  i t s settlement  believes  light  bargaining  purpose  a way  sector.  Mitterndorfer,  members o f  independently.  change  sectors  and  as  bargaining  This two  and  help  their  wages and equal  flexibility,  will  to  The  were  another.  Chairman  was  coordinate  that  union  pattern  role  their  of  i s the  first  industry  step  sectors  the  two  i n the  employers'  and  pave  to  the  way  employer  plans for  to  130 separate clear:  negotiations. to separate  The p u r p o s e  bargaining  industry  sector  emphasis  has n o t y e t been  standing  pattern  those also  from  negotiated mounting  gives  employers IWA-FIR  their  are freed  this  own  on  but  pattern  hand,  levels  that  many  that  on b r e a k i n g lumber  although  that  bind  The  same  the long settlements  pressures  settlements  to employers matching  them  to  here a r e  t h e freedom  own.  from  Solid  having  and paper  solid  Pulp  the settlement  to further consider  on t h e i r  i n t h e two  i n each.  i tto a l ltheir  them  are freed  smaller  i n one  1989).  allow  pulp  negotiated  i s now  i n the other.  Interior  and a p p l y i n g  bargaining  the other  benefit  from  and a l l o w s  enterprise  placed  on t h e C o a s t  advantages  outcomes  concluded  ties  the ties  contract  Breaking  which  (Gunderson  Dissolving sectors  those  o f t h e movement  won  i n the  plants. to plan  on  moving  to  wood  employers,  t o m e e t wage a n d  employers  wood e m p l o y e r s  can w e l l  would  afford  find  difficult.  C.  Changes  i n Pattern  Bargaining  H o w e v e r , up t o now, i n s t e a d o f a b r e a k of  bargaining  British would  of  Columbia  like  pattern  between  t h e lumber  and p u l p  sectors  forest products  industry  ( a s many  to see), there  setter  and p a t t e r n  negotiations.  i n the pattern  has been  a change  of the employers  i n the role  followers i n the last  two  of  rounds  131  Up the  until  IWA  and  alteration industry  to  province.  pulp  FIR  and  industry  to  had  The  set pulp  and  three  contract.  the  other  the  unions  IWA  in  for  in  the  year  with for  a  i n the  wood the  the  the  the  forest years,  terms  for  PPIRB  in  the  the  first  advance  first  year  wage  second  year  of  of  freeze  the  eventually returned  and  same  little  paper  of  i n many  sector four  and  rest  that  the  between  a p p l i e d with  pulp  settlement  date  for  the  dispute  settled  to  was  reached  a  half  wage  month  package  to  old  won  by  the  unions.  pattern.  Pulp  unusually  buoyant  producers,  solid  wood  negotiate  1988  producers market  market  side  of  for  the  satisfactory  scheduling  provisions.  and  followed were for  to  a  settlement  reached  agreement level  of  on  riding pulp  clauses agree the  the  same  the  and  faced  their  first.  wage  the  crest  a  products.  to  Once  non-wage  increases  and the  but  not  flexibility  forest  industry  the  the  in  out industry  by  the  to  paper  issues, won  Lumber  trying  with  an  addition,  contracting  pulp  of  good, In  still  deal  upon  informal  newsprint.  with  i n d u s t r y was  Consequently  reached  same  in  i n c o n t r a s t , were  extraordinary  the  that  the  labour  settled  Negotiations  work  1986,  solid  settlement  the  pact  increase  the  agreement  members  pace  percent  a  IWA  in  the  workers  expiration  When  negotiate  pulp  became  i t s worst  contract  strike,  1980s  unionized  their a  mid  However,  unions  time.  the  IWA  pulp  had  agreed unions.  to  132 III.  Reasons  For L i t t l e  Change  A. The R e l a t i o n s h i p B e t w e e n E n v i r o n m e n t a l a n d 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 Industry As  c a n be s e e n  from  changes  of the past  decade  chapter, changes  some o f w h i c h  industry  observed  in this  relationship  i n this  competition, c h a n g e may  B.C.  industry,  dramatic,  f o r less  upon  environment,  centralized  centralized industry  may  system.  as t h e n a t u r e o f and  technological  the centralization  i t has been  bargaining  and p a s t  structures. be s e e n  present  i n the i n d u s t r i a l  observed  i n employers  against  decentralization  such  practice,  that the  way:  as t h e l e g a l  and  for either  I n t h e B.C. f o r e s t  institutional more o r  system  and t o p r e s e r v e  less  products  that the organizational relations  of  structures.  factors  create a desire  or  In the case  f o r c e s a c t i n much t h e same  tradition  i twill  markets,  has been  organizational  relations  are creating  the cicumstances,  characteristics  and  f o r c e s such  industry  pressures  forest  to c l a r i f y the  of b a r g a i n i n g s t r u c t u r e s .  Organizational depending  industrial  to encourage  products  significant  In a n a l y s i n g what  s t r e n g t h of product  forest  o f B.C.'s  the environmental  act either  no  i t i s important  environmental  environmental  desire  been  occurred.  particular  decentralization  most  have  have  between  Ordinarily,  the  described i n the previous  i n the bargaining structure  products  forces  above, d e s p i t e the environmental  forces  are working  t h e s t a t u s quo.  133 For of  changes  collective  pressures  in  in  bargaining the  organizational  forces  Therefore,  absolute  level  of  for  preserve  current  change  reach  preserving In  the  the  industry,  the  caused  this why  are  bargaining employer  are  not  the  more  succeeding  in  forces  described  in  for  products  system  forces  of as  many  which  have  bargaining  following seeks  counteracting  to  occur.  identified  and  of  forces  constraining  The  in  pressures  decentralized  significant  the  level  acting  forest  current  easily  pressures.  pressures  not  Columbia  as  the  overcome  the  current  Unless  will  of  i t i s not  how  environmental  these  forces  section to  the  great  Chapter  Five.  are of  explain  Tradition  Centralized an  upon  identifies  Industry  become  British  desire  of  they  change  emerged  organizational  environmental  has  to  Many  chapter  which  pattern  set  change  forces  structures.  quo,  the  that  i t is  the  the  given  the  determines  to  in  the  preserve  rather,  constraints  employers  they  B.  of  recently  structures. subtle  status  bargaining  more  but  at  to  and  environmental  overcome  that  compares  level  the  hypothesized  industry  case  the  collective of  a  occur,  working  pressure  change  structure  must  i t is  structures  pressure  to  industry  system.  bargaining  bargaining  bargaining  established  began  in  the  associations  at  in  the  forest  tradition.  industry least  on  Almost  i t has a  products  been  regional  industry  since done basis  through and,  for  134 the  last  years as  two d e c a d e s ,  of t r a d i t i o n  t h e two s i d e s  will  and i n d u s t r y  receive  benefits  solid  retain  from and  players  from  are s t i l l wood s i d e  membership  continue There  agree  that  the system sides  paper  of the forest products employer  associations  attention The  although  that  pulp  employers  are large,  departments  s t a f f e d by p r o f e s s i o n a l s .  as and  wood s e c t o r of very  experts  such  handling, In these  bargaining  i s from  the pulp  has a t t r a c t e d t h e  diversified  own i n d u s t r i a l  relations  In c o n t r a s t , t h e  by t h e e x i s t e n c e  Cthe  large  of a  integrateds  Challenge-Canada,  single  have  on t h e i r  and p e n s i o n  small  Fletcher  as c o n t r a c t  addition  their  employers  often  employers  and r e l y  services  of  large  b y many s m a l l , small  have  i s characterized  MacMillan-Bloedel,  these  bargaining.  financially  a l l of which  handful  there  and t o  o f CONIFER members.  operations,  solid  wide  the concept  on  industry to  to enterprise  of the industry  employers,  to  f o r many o f t h e e m p l o y e r s  i s n o t y e t t h e same d r i v e sector  continue  system.  to participate i n association  this  m u s t be  Side  advantages  i n their  Forty-five  t o overcome, e s p e c i a l l y  on b o t h  the current  On t h e E m p l o y e r s '  There the  be d i f f i c u l t  cannot  changed  1.  on a p r o v i n c i a l s c a l e .  a n d CANFOR)  l o c a t i o n , employers.  in-house employer  industrial association  administration,  such  Few o f  relations f o r many  grievance  administration.  to requiring  employers  this  administrative  do n o t h a v e  aid,  the bargaining  many  power t o  135  face  the union  reason that the  for joining  need  forced  positioned A  small  l o c a t i o n employer  firm  could  of  of these  concentration Instead  sector  region  small  tailor  would  the  f o r plant  made  and t h u s ,  struck.  As a  i n the closure  i n the further  Many  by p l a n t  contracts,  have  also  bargaining  employers  flexibility  would  prefer  i n order  t o do  i t .  by FIR t o d e a c c r e d i t  indication  basis  o f movement  the Union priority 1970s  Thus,  as a  i n the  negotiated  solid  f o r the  to see the  point,  on an i n d i v i d u a l  and  result  at this  attempt  1960s  could  b u t do n o t w a n t ,  no  union  i n the province.  Coast  been  On  vulnerable i f  i f output  between  negotiations  A  need  well  and s u b s e q u e n t l y  of the pattern  site  bargain  sawmill  employers  rather  as a whole.  2.  and  employers  and  by a s t r i k e  negotiations  of pushing  settlements,  little  place,  of the industry.  disintegration  to  i n bargaining  other  site  to achieve  wood  as s t r o n g  their  for protection  i s extremely  be d e s t r o y e d  at every  single  way  smaller  association  a union  was  as t h e IWA-Canada.  result, many  with  This  i n the f i r s t  These  o f an e m p l o y e r ' s  by t h e u n i o n  continued  basis.  the a s s o c i a t i o n  to deal  single  isolated  by p l a n t  has n o t d i s a p p e a r e d .  solidarity  when  A  on a p l a n t  and  Interior  t o go  to s i n g l e  so f a r t h e r e  o r f o r CONIFER  has  members  and c u r r e n t l y t h e r e i s  in this  direction.  side throughout  was  wage  the bargaining  and p e n s i o n  benefit  rounds of parity for  136 forest were be  product  loggers,  paid  industry sawmill  workers  workers,  t h e same no m a t t e r  province  they  rewarded  wood  of the i n d u s t r y .  industry that  plant  should  or l o c a t i o n  plant  types  one w o r k e d  upon  time  (Munro,  unions  bargaining,  1989).  are very  or  solid  that the  throughout, of a  given  of a  particular  As a r e s u l t much  n o t one  of  this  opposed t o  e s p e c i a l l y t o go a s f a r a s t h e  IWA, t h e u n i o n  the pattern  whose members s t a n d  i s broken,  argues  that  were  established  on a more e q u i t a b l e  need  to consider  this  sources  of inequity:  the province's The  union  inability possible little The  t o be  level. The  and  were  reasoned  or the economics Snow  company i n t h e  o f work  vagaries  only  people to  on t h e p u l p  The u n i o n s  the market  Not  trades  or f o r which  a s i n g l e wage s c a l e  a l l three  decentralized  if  have  at a specific  commitment  where  whether  was d e p e n d e n t  product  and s k i l l e d  worked, but s i m i l a r  similarly side  i n the province.  IWA  of s o l i d  imbalance  1989).  producers  reforestation  t o match  u s e t o make that  pulp  T h e IWA  also  blames  pay f o r c h i p s  policies.  wage  and  i f the pulp  would  be no  two  of the gains  of pulp  f o r i t s raw m a t e r i a l s  t h e two s e c t o r s  would  problem  on t h e m a k e r s  believes  rate  between  they  there  t h e most  economics  identifies  much o f t h e r e c e n t  employers  leadership  basis  pulp  wood e m p l o y e r s  f o r the chips  more e q u i t a b l e  Bennett  inadequate  i f industry  T h e IWA  the price  blames  by p u l p  change.  to lose  who  pay t o o  newsprint.  industry  paid  the f i n a n c i a l  disappear  the province's  (Munro, forest  a  137 policy  for  the  lack  resulted  i n the  supplies  (Clarke  effective unions  of  industry,  most  such to  as  the  would  proposed  and  for  could  cost  effective  be  reduce  as  within  the  the  take  the  Strength  and  cost  of  need  for  forest  more l a b o u r  for  would  form  cost  labour,  the  of  special  products  intensive The  union  these  sectors is  willing  sectors,  wage c o m p e t i t i o n .  employers  to  pressing.  contracts low  has  timber  access  the  recognize  the  had  remanufacturing.  h i t by  these  of  to  does  separate  hard  wages but  not  notably  plywood  been  need  IWA  r e f o r e s t a t i o n which  If companies  some s e c t o r s  negotiate  have  dirth  1989).  However, the treatment  adequate  current  timber,  reason,  of  The  which  concessions  not  necessarily  be  lower  added  flexibility  in  work  scheduling.  C. Union Changes Not  only  bargaining have  the  are  from power  to  integrated  forest  products  nature  industry  and  the level  to  a  at  to  resist  significant Despite have  been  changes the  given  of the  the  restriction  they  also  i t s imposition. segments to  that  of  The the  picketing  structure  strength  bargaining  view,  changes  unilateral  Significant  decentralized  of  various  i n B.C.,  union  to  resist  in bargaining  the  Resist  point  organizational  added by  of  to  opposed  effectively  contribute present  unions  a philosophical  highly  legislation,  the  Ability  of is  imposition  the  IWA  a l l  sufficient of  structure. power of  employers  secondary  appear  to  picketing,  138 union in  power  one  has  sector  sectors highly  not  can  without  been  bring  unduly  financial  secondary  i n t e g r a t e d nature  The believe  change that  of  the  employer  can  i n the  dispute  not  case.  I f employers  be  the  would  from  to  is  one  three  because  that  of  i t s size  establishing that  firm)  singled  legally  the  to  was  able  not  as  without  and being  eventually  get  put  sawmills  do  enormous  capital  scenario  is similar  be  struck  struck mills. added  but  not  on  firm  i t cannot  L o g s m u s t be  should In  bought  I f the  be  continue  pickets.  i t  the  IWA  site  of  in  would  If  be  an and  up,  revenue  from  chip  pulp  a sawmill case  not  chips and  of  mill an  only  f o r the  chipped  for pulp  to or  company's to  operate  However,  pile  market  role  struck  chips  produce  level,  likely  strike  could  will  i n the  this  long  i s s t r u c k , the  secondary  any  may  site.  that  investment  instead.  expense.  the  This  a single  agreement.  layoff,  receive  (or  the  operations by  leadership  first  to  sites  plant  - most  firm  the  successful in  a  mill  closed  a  The  a primary  logging  unions  to  observer  damage. be  industry  industry.  those  withstand  reached,  i t i s a pulp  sawmills  to  other  an  company or  take  pattern.  negotiate  picketed  If  the  - would  new  least  out  agreement  of  the  to  stoppage  i s due  cause  protect  were  bargaining  likely  This  economic  decentralizing  to  f o r e s t products  now  uninvolved  A work  hardship  picketing.  in legislation  an  weakened.  the  loggers  company's  s a l e s , and sits  idle.  integrated i s the  an The  firm  sawmill  company's  pulp  make p u l p  at  newsprint  is  an poor  139 this  can  firm. can  make the  difference  A disruption  mean f i n a n c i a l  at  and  to  the  logging  pattern  i n the to  the  IWA  a new  strike  prevents 1989).  from  almost  and  allows  The  of  geographic  delineation  than  one  solid  wood s e c t o r  bargaining.  Plant  of  as  sawmills  pulp  union  settlement have  t o work t h e y secondary  new  have  pickets,  legislation  frustration a labour  (Bennett  dispute  striking  benefits  undertaken  by  several  i n the  to  one  members  deducted  to  from  union  locals  and  i n such  often  resistance  is  locals  which  encompass  work f o r more  plant  would  locals  or  several  to  the  makes i t d i f f i c u l t  initiate  bargaining  union  industry  IWA-Canada  structure  of  involved  successful  w o r k e r s who  level  portions  significant.  IWA  support  of  employers  by  complexity  of  This  undertaken  The  of  IWA  members  union The  strike  change  sawmill  employer.  IWA  construed  of  the  production  members.  determinant  and  pulp  agreement.  through  structure  loggers  by  be  target  the  sectors.  years  have r e t u r n e d  unions to  bargaining  both  the  after  containment  the  working  final  and  ends y e a r s  indefinitely  pay  Often  working  for a better this  For  l o s s to  of  two  can  h i s t o r i c a l l y set  contract  S e c o n d , the  location  the  has  other  unions.  and  chain  legislation  have been  industry.  been p r e v e n t e d on  new  profit  i n the  f o r the  the  operations  as  agreed  the  power of  pickets  point  hardship  Paradoxically, adding  any  between  level  have to would plants  negotiations  for  be  have to at  would  one be  be time.  140  D.  Pressures Another  from  the  products  industry  current  clearly  a  actors'  choices  expression.  before  them. long  as  the  of  within  a  to  forest few  to  and  we're  i f not  this  1989).  This  pulp  sectors  and  government  was  a  paper  this  of  tolerated to  in  British  Columbia  i s widely  referring  case  doing  a  the  "When  action."  lockout,  and  a  for resolve as  we  the  least  point.  pulp  sector  have  deal  1986  three  to  this  labour  the  past  at  really  in  new  usually  i s at  gets  political  a  those  felt  intervention  government  a  t o l e r a t e d only  However,  tendency:  is  industry.  to  not  the  this  limited  disputes  our  nervous any  decades.  of  about  more,  (Mitterndorfer  forestry dispute,  series  the  its  intervenes  been  is  i t affects  is  major  the  throughout  have  not  forest This  inflict  comment  we're in  are  in  a c t u a l l y implemented,  the  the  imposition  employers  disputes  to  parties.  n e c e s s a r i l y by  Government  down  in  because  unilateral the  government  suddenly involved  by  industry  weeks.  industry  the  disputes  involved.  third  measure  not  is acting  bargaining  from  to  provincial  they  of  which  i t s i n t a n g i b l e nature,  labour  Mitterndorfer's  whole  1984  wide  damage  threatened,  alludes  of  bargaining  Historically  impact  it  spite  the  immediately  Eric  factor  deterent  Province long  structure  implicitly,  In  of  factor  i s pressure  difficult  structure  Parties  organizational  preserve  significant  Third  strikes  in  Government  the both  141  mediators norm  and s p e c i a l  forsettling A complete  wishes  disputes  commissions  i n this  decentralization  of t h e unions would  government into  inquiry  were  t o become  much m o r e l i k e l y financial forced allow  pressure  to close, employers  of bargaining unlikely  involved.  outcome.  bargaining  to the extent  that  i f the inquiry  was n e e d e d were  operations  unlikely  to unilaterally  against the  A government  Unless employers  i ti s highly  become t h e  industry.  be h i g h l y  the reasons decentralized  have  i sa  under were  being  t h e government  implement  such  a  great  would  radical  change.  E.  Buoyant The  final  bargaining Since  Product  reason f o r the lack  structure  the last been  been  an o b s t a c l e  and c o n t i n u e  decentralization prices  adequate. attempt the  i n this  recession,  have  Market  Markets  industry  markets  to the industry of bargaining  As p r e v i o u s l y  undoubtedly  buoyant.  achieving the believe  although unexceptional, mentioned,  i f employers  bargaining  they  were t o  unilaterally,  and t h e r e s u l t  be s i g n i f i c a n t  time l o s t  to strikes.  i n either  the  pulp sector,  would  sector,  but e s p e c i a l l y  be e n o r m o u s l y  costly  need.  remain  to resist  employers  one.  T h i s has  be l i k e l y  for  to  f o r p u l p and n e w s p r i n t  employers  t o move t o d e c e n t r a l i z e d  change  i s an e c o n o m i c  t o be u n u s u a l l y  f o r lumber,  unions would  of s i g n i f i c a n t  would  Down  time  f o r those i n  at this  time.  142 This changes  derived  will from  pressure  strength  t o change  many  firms  may  returns  Therefore,  contributing  to the maintenance  unchanged, a change industry and  Future A.  up o f i n d u s t r y  investments, they  may  razor  costs  that and  compete. which are  factor  could  pattern  system  remain  lead the structures  bargaining.  Prognosis  Introduction A p r e d i c t i o n of the future  bargaining to  products  agreements  of the current  final  An  become  to the d e c e n t r a l i z a t i o n of bargaining  to the break  IV.  in this  which are  f o r the survival  again  conditions  party  a s was  variable.  collective  i n which  i f the other  strength  for industry  individual  of the markets even  industry,  margins  to negotiate  their  union  In c o n t r a s t , the  a necessity  If profit  need  reflect  future.  i s highly  bargaining  i n this  s e t of i n f l u e n c e s  in this  Three,  of whether  s t r u c t u r e , and t h i r d  i n the markets  employers.  adequately the  change  decentralized  tradition,  stable  markets  determinant  or patterns  i n the near  i n Chapter  unfavourable  thin,  Industry  and i n d u s t r y  of product  indicated  of  structures  occur. union  important  are a r e l a t i v e l y  likely  make  be t h e m o s t  to bargaining  industry  not  may  make.  downturn  i n B.C.'s The most  forest  likely  i n industry  structure  products  and p a t t e r n  industry  c a t a l y s t f o r change  product  markets.  of  i s difficult i s an  economic  143  For solid  the  wood  attempted in  the  bust.  to  Both  the  lumber  however,  changes  are  predicated  B.  in  the  wage  soon the  for  be  exposed pulp  have  much  made  the  on  taking industry  product  in  the  for  more  of  British  remain  for mix  be Two  likely.  markets,  local  unlikely  control  that  One  the  to  make  sectors  appear  differ  having  effort  identical  among  wages  and  bargaining  Columbia .  over  are  Despite work  rules  a l l negotiating  the  continued  of  profitable  in  by  still  most  structure  flexibility  increased  market  downturn.  of  fact  primary  conditions.  appear  formalization  in  and  product  will  market  future  U.S.  these  A  do  producers  the  level.  costs  and  producers  this  and  boom  lumber  to  regions  of  which,  Interior  industry  markets  i t is  a  have  their  buoyant  changes  as  desires  and  industry markets  and  change  on  agreement  pulp  this  even  market  the  cycles  paper  reliant  near  both  Scenario  long  passed  and  in  based  to  product  continued  products  issues  by  the  eventual  as  commodity  Northern  degree  on  forest  employers' and  them  very  significant  expected  products  However,  Optimistic No  forest  consideration, some  an  firms  from  producers  lumber.  to  on  left  years,  province's  scenarios  other  the  away  still  into  affected  of  objective.  dimension  is  move have  strategic  several  sectors  past  Coastal  basic  past  more  likely  even  sectors. benefits  outcome  province's wage  will  master  rates  though  in a l l  average  Flexibility negotiated  is  at  may the  be  144 master  agreement  rules,  flexibility  to  be n e g o t i a t e d The  levels  among  province  alter the  their  sector  wood  different  sector  involved,  an h o u r  sector  Because  costs  costs  below  (Bennett  o f wage  of bargaining.  A likely  large B.C.  i s that  integrated  they  afford will  firms.  forest products  wage  f i r m s can  costs i n  i n the  mills  pulp  a r e about  i n the rest  parity  rounds  agreement  at lower  those  importance  be m a i n t a i n e d  c a n no l o n g e r  differ  of the  1989).  can and w i l l  who  can  labour  i n plywood  regions  firms  below  found  around the  of s k i l l s ,  Average  those  of i t s p o l i t i c a l  the appearance  rates  f o r firms  combinations  wage  being  more e m p l o y e e s  are already  labour  t o be i d e n t i c a l  and t r a d e  substantially.  and a v e r a g e  wood  average  as work  level.  i s already  rates  By k e e p i n g  costs  dollars  solid  base  such  and c o n t r a c t i n g o u t  o r company  and s e c t o r s  Although  issues  scheduling,  o f what appear  are i d e n t i c a l ,  solid  four  regions  and u s i n g  leaving  at the plant  remarkably.  levels  while  in shift  maintenance  undertaken.  quite  level  to the unions between  at least  sectors  f o r the next  outcome f o r those to operate  be b o u g h t  and  under  few  smaller  the master  o u t by one o f t h e  Over  time  i t i s expected  industry  will  become more  that the  heavily  concentrated. An the  innovation  separation  sectors likely  within will  which  may  of agreements the s o l i d  be s e e n which  i n the near  will  wood  sector.  not d i f f e r e n t i a t e  sectors  apply  future i s  to  various  The s e p a r a t i o n on t h e b a s i s  most  o f base  145 wages b u t i n s t e a d flexibility to  will  and work  be a c c o m p l i s h e d  allow  scheduling.  Presently,  member  standing  firm  must  agreement  (Munro  remanufacturing, the be  solid  wood  granted  today,  unwilling  dealing  C.  benefit  product number  break  industry, bargaining markets  possible:  master  collective  such  sectors  of  In order  f o r them t o  specific  agreement  up t h e i r  membership  a new t y p e  of the lack  the employer  i n FIR.  of contract  of  may  protection  association.  i s unlikely  considerably.  As l o n g  employers  IWA-Canada  (Bennett  of changes  employers,  bargaining  pattern,  a break  large  bargain  remain  i nt h e  association  1989).  I f product  i n industry  an end t o a s s o c i a t i o n  even i f  as a  who m u s t  t o be e m p l o y e r  industry  a number  pulp  pattern.  from  i s likely  province's  wood  to give  the powerful  i n this  worsen  a new s e c t o r  location  with  there  association, the  Scenario  worsen  of single  for this  t o be a  subsidiary  up o f F I R o r C O N I F E R  markets  collectively  employer  and o t h e r  because  without  Pessimistic The  are  have  to sign  singly  to continue  of the industry.  to sign  would  Many who w o u l d be  side  i n order  Some m e m b e r s o f F I R a r e i n t h e  plywood,  leave  they  i n order  t o t h e FIR-IWA  1989).  o f work  be made t o F I R ' s  of t h i s  be a s i g n a t o r  levels  However,  c h a n g e s must  constitution. i n good  varying  bargaining  bargaining by t h e  i n t h e PPIRB-FIR  and an end t o t h e C o a s t - I n t e r i o r  solid  146 A small decrease wood in  downturn  the current  industry  i n p u l p and paper pressure  pattern  t h e s e two s e c t o r s  the  firm  remain  profitable  obvious  that  agreements pulp  level  be b r o k e n agreement  lead  niche  there solid  to a  members t o  firms  struggle to  markets  occur,  i t i s  p u l p and s o l i d  since which  increases.  may  as i n d i v i d u a l  between  likely  of employers  Pulp Bureau  Should the l a t t e r  the pattern  "industry"  among  and s e r v e d i f f e r i n g  1989).  would  the a b i l i t y  i n pulp markets  of bargaining  will  i n the pulp/solid  t o p a y wage a n d b e n e f i t  or enterprise  (Mitterndorfer  f o r a break  by e q u a l i z i n g  However, a s e v e r e downturn decentralization  markets  would  wood  sector  no l o n g e r  wood e m p l o y e r s  be a  could  match. A downturn likely  future  Should  this  FIR  i n dimension lumber  o c c u r r e n c e based  occur i n the near  and CONIFER w i l l  Northern  Interior's  market.  Coast  a down t u r n product not  i s diversified  subject  labour  strife  labour  with  disputes  to break  the pattern,  will  intervenes  markets  dimension  (Munro  employers  the government  their  offshore  as t h e American  no a l t e r n a t i v e ,  of the  product  a s much o f  be t h e p r o b a b l e r e s u l t  until  because  on t h i s  i n various  seek  between  n o t be a s h a r d h i t b y  prices  Should employers will  to maintain  likely  and s o l d  evidence.  the pattern  reliance  would  t o t h e same c y c l e s  market.  i fleft  future,  i n dimension lumber  lumber  But,  employers  i s another  on h i s t o r i c a l  be d i f f i c u l t continued  markets  1989). tolerate or u n t i l  an  147 industry of  V.  the  shakeout  Northern  change  and  and  product  despite  the  responsible structure  have  third  for  factors  that  modest  evenly  and  would  amount  of  of  industry.  matched  pressure, to  and  pattern  products  party  structure  the  i n the  a l l contributed  in bargaining other  organizational  and  p r a c t i c e , the  employers,  the  centralizing control  industry.  i n B.C.'s f o r e s t  past  market  observed  outlined  factors  found  Tradition unions  has  in bargaining  bargaining  further  Conclusion  chapter  environmental  occurred,  I n t e r i o r lumber  Summary and This  has  and  the  power a  have  the  buoyant  minimal  bargaining  of  change  patterns,  predicted  decentralization. The products the  case  of  bargaining  industry  At  strong  environmental desire  the  to  changes  are  powerful  enough  research  these  not  to  which  to  chapter which  may  the  which  of  until  overcome  preserving  have  industry  expected  follows  the  forest  strength  bargaining forces  the  industry  structure are  many e m p l o y e r s  structures  environmental  forces  or become  organizational  quo.  illuminate  to  bargaining.  bargaining  outlines  of  changing  caused  substantial  status  further  of  organizational  counterbalance  pressures  patterns  The  influencing  decentralization  Significant  pressures  factors  present  sufficiently  Columbia's  i s i n t e r e s t i n g because  organizational  choices.  in British  areas  the  of  future  interaction  148  between e n v i r o n m e n t a l bargaining  structure.  and  organizational  forces  149  CHAPTER  I.  SEVEN:  RECOMMENDATIONS FOR  objective  of t h i s  study  whether  s i g n i f i c a n t changes  British  Columbia's  over  the past  dramatic change The  forest  decade.  environmental  i n bargaining  strength  with  preserving  be w i d e l y  locations.  what  changes  during  patterns  generalized  or  The s t u d y  difficult  one b e c a u s e  intervene  between  areas to  of possible  build  various  a robust  occurred. are credited  industry. of this  work c a n  or other  e n v i r o n m e n t a l and  and n o t e a s i l y s p e c i f i e d i s a  o f t h e number o f v a r i a b l e s  that  further theory  bargaining  and Angle these  of t h i s  environmental  has  little  structure  t o draw g e n e r a l i z a b l e  The p u r p o s e  relatively  factors  these  of bargaining  (Perry  1981).  variables conclusions  final  of  occurred  period,  industries  a r e complex  t h e r e l a t i o n s h i p s among  study.  this  quo i n t h i s  the environment,  outcomes  have  or structures  to other  structure  been  f i n d i n g , the conclusions  factors  difficult  have  organizational  organizational  bargaining  industry  T h e r e l a t i o n s h i p s among  predicted.  to determine  i n the bargaining  products  the status  this  has been  Despite  of several  Despite  of  RESEARCH  Introduction The  not  FUTURE  chapter  research,  structure The  complexity  makes i t from  a n y one  i s to indicate  the purpose  of which i s  d e t a i l i n g the i n t e r a c t i o n s of  and o r g a n i z a t i o n a l  and  factors  which  150 determine an  the bargaining  industrial  II.  scope  by t h e a c t o r s i n  system.  subsequent  (studying  structure  over  specific  studies  t i m e ) as w e l l  time).  The b e n e f i t  i n bargaining  changes  i n the environment.  researcher  responses forces.  by p a r t i e s  In  factors  both  addition,  environmental actors' complete  picture  studies  of bargaining of each  case  and u n d e r s t a n d  present  determine  and u n i o n these  may  i s that  be l i n k e d t o allow  structure  environmental  allow  the  various  the parties'  should  factors  structure. studied  attempt  choices  to  include  about the  influencing the To e n s u r e  that  r e l a t i o n s among  the corporate  c u l t u r e and  philosophies. several  as o u t g r o w t h s  a  i s assembled,  the h i s t o r i c a l  both  requirements  themselves  at a  studies  and q u a l i t a t i v e i n f o r m a t i o n  the  Given  thus  influence  studies  should  management  time  a  identified.  researchers parties  over  t o t h e same  and o r g a n i z a t i o n a l  choices  (studying  of l o n g i t u d i n a l studies  different bargaining  which  future  quantitative  r e l a t i o n s h i p or  Cross-sectional  subject  Cross-sectional  be i s o l a t e d a n d  longitudinal  as c r o s s - s e c t i o n a l  structure  to observe  organizational  be b o t h  r e l a t i o n s h i p s or structures  changes  the  should  a p a r t i c u l a r bargaining  number o f b a r g a i n i n g  to  chosen  Recommendations Ideally,  in  relations  structure  avenues  of t h i s  of  study.  research  151  A.  Longitudinal 1. C o n t i n u e Continued  forest in  products  are  represented  may  changes  differential  and p a t t e r n s .  circumstances  that  i s irregular  order  degree  of change  the researcher  will  in bargaining  able  i n other  of b a r g a i n i n g  change  identify  bargaining  Columbia  Holding  some  employers,  centralization  and  away  researchers  relationships  of environmental p u t on  Bargaining  in particular,  industries.  pressure  in  the change.  industry  as t h e d e g r e e  to occur  to  British  other  increases,  In o b s e r v i n g  beyond  to study  i n which  expected  be  employees  histories,  industry diversity be  add t o  i s occurring,  to generalize  of economic  important.  diversification  Centralized  begin  such  different  and  industry  whose  Highly  must  constant  with  s t r u c t u r e may  products  changes  will  In an  of other  the forest  and  Columbia's  Future  employers,  rates  As  precipitating  from  settings  to date.  and n o t i n o t h e r s .  2. The S t u d y Relationships  level  unions  Study  a s s o c i a t i o n membership,  and s m a l l  and m a r k e t  in bargaining  In  collected  large  product  factors  valuable.  employer  by t h r e e  some  those  in British  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  expect  structures  be  Longitudinal  in regional association bargaining  philosophies,  one  industry will  of both  increasing  Industry  of bargaining  of knowledge  comprised  Forest  patterns,  participation body  B.C.  study  bargaining  the  Studies  i n other  variables  change, the or the  initial  i n the industry w i l l  be  152 Longitudinal the  study  B.C.,  completed  will  that  studies  prove  bargaining  can  on  these the  r e l a t i o n s h i p s , much  forest  most e n l i g h t e n i n g .  differences  differences  here  of  will be  be  detected  isolated.  structure  products  Cases  that  goes  from  more h i g h l y  c e n t r a l i z e d would  also  prove  information  gleaned  different  information  look  only  at  less  centralized  B.  the  such to  may  field  than  the  opposite  process  insight into  the  be  sectional  studies  bargaining  in  other  markets border  have  these  The  the  by  new  in to  The  and  more s t u d i e s move f r o m  which  more  to  cross-  i n use  Canadian  States  i s an  Union  began  likely  that  e f f e c t s of  the  Environmental to  be  both  very  to  factors  of  the  the  arms  of  represent impacting  similar.  provides small  and  Canadian  continue  and  and  side  IWA-Canada  as  the  obvious  either  the  in  provinces  i n d u s t r i e s on  a c r o s s - s e c t i o n a l study the  undertaking  products  today.  i n d u s t r i e s are  bargaining  Many i n d u s t r y  i n t e r n a t i o n a l unions U.S.  of  structures  s i m i l a r h i s t o r i e s and  comparing  the  change  informative. add  - the  other  United  comparison.  identical,  i n the  Such  achieved  i n d u s t r i e s of  Paperworkers'  based  workers  for  for  are  Canadian U.S.  of  countries.  candidate  for  less centralized  determinants  c h a n g e may  products  time  Studies  structure  forest  the  of  structures.  Cross-Sectional Added  studies  over  reasons  i n which  observed  by  industry  It i s only  and  like  and  an  opportunity large  153  differences study an  of  in organizational  Canadian  opportunity  labour  forest  to  employers towards country. whether  or  not  profitability  they of  relationships, unions  the  and  representing  contrast,  the  U.S.  organizational bargaining employer sector  provides  structure  quite  significantly  III.  Summary and It  is clear  understand in  one  research various on  be  impacts  the  almost  affect  policy  in  across  the  the  complete  the  a  degree Labour  sizeable  labour  matters  t h e i r Canadian  the  employers, size  and  bargaining of  industries.  industry. of  policy  philosophies  these  presence  from  that  environment must  and  of  The  the In  contrast of  in  change  in  legislation, non-union a l l differ  counterparts.  Conclusion  changes  bargaining  provide  in this  government  fixed  the  history  in  an  which  a t t i t u d e s , the  and  the  employees  provide  homogeneous,  government  differ:  attitudes  factors  and  fairly  in associations,  firms,  the  remains  relatively  will  bargain  cross-sectional  i n d u s t r i e s would  little,  remains  variables  A  similar industries.  Canada  differ  matters  Other  very  across  attitudes  labour  products  compare  legislation  factors.  present  in bargaining at  done of  the  a to  study  only  structure  p a r t i c u l a r point understand  environmental  structure. s t a r t i n g point  to  i n one  industry  in time.  Further  more t h o r o u g h l y  and  I t i s hoped for  begins  organizational that  subsequent  this work  the forces  paper of  this  will kind.  154 REFERENCES  A n d e r s o n , J . C . 1 9 8 2 . "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 a n d M. 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