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Manpower consultative service : examination of a federal approach to solving the manpower adjustment.. Keylock, Alec John Keith 1967-07-21

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THE MANPOWER CONSULTATIVE SERVICE: EXAMINATION OF A FEDERAL APPROACH TO SOLVING THE MANPOWER ADJUSTMENT PROBLEMS OF TECHNOLOGICAL CHANGE by ALEC JOHN KEITH KEYLOCK B.Sc. University of Alberta, 1963 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION i n the Department of Commerce and Business Administration We accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1967 i n presenting t h i s t h e s i s i n p a r t i a l f u l f i l m e n t of the requirements f o r an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia, I agree that the L i b r a r y s h a l l make i t f r e e l y avai]able f o r reference and study. I furt h e r agree that permission., f o r extensive copying of t h i s t h e s i s f o r s c h o l a r l y purposes may be granted by the Head of my Department or by h i s representatives. I t i s understood that copying or p u b l i c a t i o n of t h i s t h e s i s f o r f i n a n c i a l gain s h a l l not be allowed without my w r i t t e n permission. The U n i v e r s i t y of B r i t i s h Columbia Vancouver 8, Canada ABSTRACT Since inception of the Manpower Consultative Ser vice in mid-1964 about twenty programs of manpower adjust ment to technological change have been initiated under its auspices. This report reviewed recent literature on man power adjustment requirements to provide a framework with in which to evaluate the effectiveness of the Manpower Consultative Service in enhancing an active national man power policy. Selected cases were examined for any emer ging patterns amenable for use In future adjustment pro cedures; for strengths and/or weaknesses in the Service's methodology; and for providing an evaluation of the achievements of the Service in its enhancement of the nation's manpower policies. The examination exposed areas of weakness in the current rationale of the Manpower Con sultative Service. Suggested improvements were recommen ded on the basis of the established framework. The findings of this report indicate that: 1. A broad pattern is identifiable from the case studies that reveals the approach most likely to evolve in the disposition of manpower adjustment programs under the auspices of the Manpower Consultative Service, 2 . The program offered by the Service, analyzed in the light of this pattern, is unduly restricted in its range of applicability by virtue of its current method ology. Specifically, - i i - (a) Advance notice of impending changes that w i l l re su l t i n the displacement of workers i s prerequis i t e to the e f f e c t i v e d i s p o s i t i o n of manpower adjustment programs. I t cannot be l e f t to the l i m i t e d e f f i c a c y of c o l l e c t i v e bargaining and w i l l be ventured by few firms caught up i n an ever- increasing competitive environment. L e g i s l a t i o n Is required to provide f o r minimum advance notice of worker lay - o f f as a statutory r i g h t , (b) Current emphasis on Joint labour-management co operation l i m i t s the range of a p p l i c a b i l i t y of the Manpower Consultative Service and c l e a r l y duplic ates the current function of the Labour-Management Consultation Branch of the federal Department of Labour. This p r i n c i p l e should be subordinated i n the Service's basic rationale such that i t becomes only a complementary function. (c) Co-ordination of the federal counselling, placement, t r a i n i n g , r e t r a i n i n g and mobility services has been in e f f e c t i v e and inadequate. E f f o r t s should be foc- ussed on strengthening the co-ordination of these services and p r i o r i t y given to t h e i r u t i l i z a t i o n by a c t i v e l y promoting an atmosphere conducive to manpower adjustment. (d) The research and/or committee chairmen of the J o i n t Consultative Committees have evolved into t h i r d -- i l l - party problem-solvers in contravention of the principles of the Service and, apparently, to the detriment of a widespread use of its co-ordinating facilities. A researcher's duties in the develop ment of an adjustment plan should be reappraised and more clearly defined. 3. The basic rationale of the Manpower Consultative Service is not clear and, therefore, its resulting imple mentation lacks organizational commitment to a discipline that dominates its structure and processes. A revital- ization and reorganization of the Service's basic ration ale is required to promote the maximum utilization of the nation's manpower resources. Examination of many aspects pertinent to the oper ation of the Manpower Consultative Service was beyond the scope of this report. A number of worthwhile areas for further study have been introduced. - i v - ACKNOWLEDGMENT This report was prepared under contraet with the federal Department of Manpower and Immigration and the author i s indebted to a number of the Department's o f f i c i a l s o Mr, J.D, Drew made i n i t i a l provision f o r the study and ensured that source data was made a v a i l  able; Messrs. G.G. Duelos, G.G. Brooks, E.J. Murphy and Dr. W-.R, Dymond also provided assistance and source material. Acknowledgment i s made to the author's advisors Dr. N.A, H a l l and Dr. L.F. Moore f o r t h e i r assistance and guidance i n preparing the report. The author i s esp e c i a l l y g r a t e f u l to Professor J.T. Montague of the I n s t i t u t e of I n d u s t r i a l Relations, University of B r i t i s h Columbia, f o r his time, counsel and reference materials which he so f r e e l y volunteered. The author, however, assumes f u l l r e s p o n s i b i l i t y f o r the o r i g i n a l content of t h i s report. TABLE OP CONTENTS THE MANPOWER CONSULTATIVE SERVICE: EXAMINATION OF A FEDERAL APPROACH TO SOLVING THE MANPOWER ADJUSTMENT PROBLEMS OF TECHNOLOGICAL CHANGE CHAPTER Page I. INTRODUCTION 1 The Impact of Changing Technology 2 Resp o n s i b i l i t i e s i n the Transition 5 Canadian Manpower P o l i c y 10 Purpose of the Study 14 Methodology 17 Scope of the Report 19 Terminology 20 I I . MANPOWER ADJUSTMENT THROUGH COLLECTIVE BARGAINING 24 Introduction 24 Monetary Issues 26 Wages 26 Incentive Systems 28 Fringe Benefits 30 Fin a n c i a l Guarantees 32 Non-Monetary Issues 36 Labour Turnover 36 Working Period 39 Labour M o b i l i t y 41 Advance Planning 46 - v i - CHAPTER Page The Desired Mix 5© Limitations of the Process 55 I I I . MANPOWER ADJUSTMENT THROUGH JOINT STUDY COMMITTEES 62 Introduction 62 Jo i n t Study Committee Approach 63 European Experience 68 United States Experience 71 Canadian Experience 77 Summary and Conclusions 84 IV. MANPOWER ADJUSTMENT THROUGH GOVERNMENT SPONSORED JOINT STUDY COMMITTEES 91 Introduction 91 The Basic Rationale of an Active Canadian Manpower P o l i e y 92 The Manpower Consultative Service Methodology 95 Pr i n c i p l e s Stated 95 Approach Reviewed 98 Selected Cases Handled by the Manpower Consultative Service 104 Plant Closure 105 Dorntar Pulp and Paper Ltd., Portneuf, Quebec 105 Mount Royal Rice M i l l s Ltd. 108 Internal Adjustment 110 Canadian P a c i f i c A i r Lines Ltd. 110 - v i i - CHAPTER Page Internal Adjustment (Cont'd.) Canadian National Railways, North Sydney 112 Manitoba R o l l i n g M i l l s Ltd. 117 Domtar, Ltd., Windsor, Quebec 121 Future Planning 125 B r i t i s h Columbia Towing Industry 125 Imperial O i l Enterprises Ltd. 130 Graphic Arts Industry of Toronto 134 V i c t o r i a Mechanical Indust r i a l Relations Association 139 Summary 140 V. EVALUATION OF THE MANPOWER CONSULTATIVE SERVICE APPROACH 142 Introduction 142 Integrated Case Analysis 143 Three Phases of Work Force Adjustment 143 Three Stages of Union Defence 14? Co-ordination of Manpower Services 154 Variable Factors 156 The Manpower Consultative Service i n Context 159 Examination of the Manpower Consult at i v e Service Methodology 165 Active Versus Passive Approach 166 The Requirement of Advance Notice 1?0 - v i i i - CHAPTER Page Examination of the Manpower Consult ati v e Service Methodology (Cont'd.) J o i n t Study and the Committee Chairman 1?9 Labour-Management Co-operation and Manpower P o l i c y 188 The Need f o r Co-ordination of the Government's Manpower Services 197 VI. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 205 Summary 205 Conclusions and Recommendations 207 Areas f o r Further Study 212 BIBLIOGRAPHY 217 APPENDIX A. Proposal f o r P a r t i c i p a t i o n 221 APPENDIX B. Manpower Assessment Incentive Agreement 231 APPENDIX C. Case Summary of the B r i t i s h Columbia Towing Industry 236 - lx - LIST OF FIGURES FIGURE 1. Action-Reaction Model THE MANPOWER CONSULTATIVE SERVICE: EXAMINATION OF A FEDERAL APPROACH TO SOLVING THE MANPOWER ADJUSTMENT PROBLEMS OF TECHNOLOGICAL CHANGE CHAPTER I INTRODUCTION "In twenty years, other things being equal, most of the routine blue- and white-collar tasks that can be performed by cybernation w i l l be. People w i l l have begun to r e a l i z e that, when i t comes to l o g i c , the machines by and large, can think better than they. Thus, cyberneticians w i l l have established a r e l a t i o n  ship with t h e i r machines that cannot be shared with the average man, and those with a talent f o r work w i l l have developed i t i n t e n s i v e l y from childhood. Some of the remaining population w i l l be engaged i n human-to- human or human-to-machine a c t i v i t i e s requiring judg ment and a high l e v e l of i n t e l l i g e n c e and t r a i n i n g . As f o r the rest, I can foresee a nation with a large portion of i t s people doing, d i r e c t l y or In d i r e c t l y , the endless public tasks that the welfare state needs, and that the government w i l l not allow to be cyber nated, because of the serious unemployment that would r e s u l t . These people w i l l work short hours, with much time f o r the pursuit of l e i s u r e a c t i v i t i e s . . . . Because the cybernated generation must solve problems, as now, mainly by other than mathematical-logical standards, the f r u s t r a t i o n s and pointlessness engen dered may evoke, i n turn, a war of desperation; a war to make the world safe f o r human beings by destroying most of society's sophisticated technological base. If the new log i c i s to resolve i t s problems i t w i l l have to generate b e l i e f s , behavior, and goals f a r d i f f e r e n t from those which have been held to now and Which are d r i v i n g us more inexorably into a contra dic t o r y world run by the ever more i n t e l l i g e n t , ever more v e r s a t i l e slaves." - D.N. Michaels- Michael, D.No Cybernation: The S i l e n t Conquest. Santa Barbara, C a l i f o r n i a : Center f o r the Study of Demo c r a t i c I n s t i t u t i o n s , 1 9 6 2 , pp. 4 6 - 4 7 . I. THE IMPACT OF CHANGING TECHNOLOGY In recent years a great deal has been expounded on what l i f e might be l i k e and indeed w i l l be l i k e , i n the automated world of tomorrow. Mystics with t h e i r f a s c i n  ating speculations have gained a large following i n to day 's r apidly changing environment. Norbert Wiener, one of the f i r s t popular prophets i n the computer f i e l d , has pointed out that the p o t e n t i a l i t i e s of cybernation are so unlimited that "they contain extraordinary implications f o r the emancipation and enslavement of m a n k i n d . M i c h  ael suggests "that new and profound problems presage changes i n the s o c i a l system so vast that i t w i l l c h a l l  enge to t h e i r roots the current perceptions about the v i a b i l i t y of our way of l i f e . " 2 And, J . I . Snyder, J r . , Co-chairman of the American Foundation on Automation and Employment, Inc., has stated that the doubters "have not yet r e a l i z e d the broad s o c i o l o g i c a l aspects of auto mation. "3 He suggests that these doubters are l i v i n g i n •••Wiener, N. The Human Use of Human Beings; Cyber netics and Society. Boston: Houghton M i f f l i n Company, 195*, P. 199. 2Michael, D.N. 0p_. Cit.« p. 1. ^Snyder, J r . , J . I . "Industry's Human Responsibil i t i e s i n the Age of Automation". Automation and So c i a l  Change. Conference sponsored by Ontario Government De partments of Economics and Development, Education, Labour and Ontario Eoonomic Council, Toronto, 1963, p. 153. a shroud of myths such as: automation w i l l create jobs; those l o s i n g t h e i r jobs to automation can be retrained and put into other jobs requiring higher s k i l l s and paying more money; large numbers of people w i l l be put to work running, b u i l d i n g , and maintaining automated equipment; and, workers displaced by automation i n one part of the country can f i n d work i n other parts of the country. While t h i s type of prognostication provides ex c i t i n g reading, authors l i k e Messrs. Beaumont and Helf gott have chosen to discard the dramatic and emotional from t h e i r discussions of actual experience i n adjusting to change. They suggest "that pessimism over the immed iat e dislocations of change w i l l not halt technological advances, f o r the problems of today are clearing the way f o r the opportunities of tomorrow."* The paradox of the automated world forms i n the prodigious benefits that accrue from i t and the defensive actions that have emerged to impede i t . Increasing tech nological change i s i n e v i t a b l e . I t i s inevitable because Increased competition, more turbulent market conditions, shorter temporal periods between discovery and use of products and many other environmental conditions demand i t . Moreover, change i s inevitable i f the economic and ^Beaumont, R.A. and Helfgott, R.B. Management, Automation and People. Brattleboro, Utah: The Book Press, 1964, Forward, p. v i i . - 4 - s o c i a l prosperity of each and every i n d i v i d u a l i s to con tinue and to Increase. Nevertheless, i t has been accepted that t h i s growth and affluence i s not without i t s attend ant costs. The problem of concern i s that of minimizing the costs. Thus i n time of plenty there i s no need f o r the few to suffer undue hardship—neither i s i t feasible to do so. I f management i s to continue i t s inexorable drive towards e f f i c i e n c y i t w i l l require considerable f l e x i b i l i t y and understanding from i t s workers. But technological change has been found to create some uneasiness i n most workers. There have been many i n  dications of d i r e c t resistance to innovation and change. In general, however, worker attitudes have transcended the l i m i t a t i o n s of direot resistance and competition and work ers have found that a d d i t i o n a l benefits can be gained from c o n t r o l l i n g the pace of t h i s awesome force. Society, too, has seen the need to ensure phat man's ingenuity be employed to minimize the hardships associated with technological change. In s t r i v i n g to maximize the use of human resources of a nation, increased emphasis has been placed on the waste that accompanies unemployment. In addition, the s o c i a l conscience expected of large org anizations has made i t morally untenable f o r technological change to be introduced without regard f o r the welfare of each Individual. The c a l l i s f o r new Ideas to cope with impending adjustments and a need to throw off the f e t t e r s - 5 ~ of pessimism i n order that problems can be analyzed objec t i v e l y . Change i s a major part of any dynamic socio economic system and progressive s o c i e t i e s must manipulate t h i s change to pave the way f o r a more opulent future. The challenge i s somewhat formidable. I t i s obvious that technological change can lead to worker displacement. But only to the extent that s p e c i f i c r e s p o n s i b i l i t i e s are assumed by each i n d i v i d u a l , union, company and government can the co-ordination of manpower adjustment with techno l o g i c a l change be planned to provide f o r le v e l s of output and e f f i c i e n c y attuned to the demands of society. I I . RESPONSIBILITIES IN THE TRANSITION The emphasis of automation has been directed at the imminent dangers of widespread unemployment. Academic economists, business men, union leaders and government o f f i c i a l s have been arguing f i e r c e l y over the degree to which automation creates unemployment. The prevalent view i s that held by the demand deficiency school, which main tains that unemployment Is a function of the growth of i n  come and aggregate demand. Thus, unemployment could be reduced to the optimum l e v e l Of approximately three per cent by appropriate monetary and f i s c a l p o l i c y — t a x cuts, easier c r e d i t , more l i b e r a l depreciation allowances, and the l i k e — t o stimulate business investment, consumer ex-- 6 - penditures and export t r a d e 1 . On the other hand, supporters of the s t r u c t u r a l school maintain that a comprehensive, adequately planned and financed manpower po l i c y i s required; that i s , mone-. tary and f i s c a l p o l i c i e s , per se, are not s u f f i c i e n t to reach the desired l e v e l s of employment. This view envis ages a large part of the unemployment as due to a dispar i t y between the structure of labour supply and labour de mand . In assigning r e s p o n s i b i l i t i e s during the increasing adoption of technological ehange i t must be recognized then that neither manpower p o l i c i e s nor c o l l e c t i v e bar gaining, or even both, can solve the concomitant employment problems. The accepted primary r e q u i s i t e must be a govern ment p o l i c y dedicated to sustained f u l l employment and stable p r i c e s . Thus, productivity increases and increased use of c a p i t a l must be offset by government monetary and f i s c a l p o l i c i e s to ensure f u l l u t i l i z a t i o n of labour and c a p i t a l . Beyond an economy geared to f u l l employment, how ever, technological change can produce dramatic and d i f f i - xJamieson, S.M. "Economic and Technological Change i n the S i x t i e s - Implications f o r Manpower Adjustment, Dis cussion 1'. labour-Management Conference on Economic and  Technological Change i n the S i x t i e s . Ed. by H a l l , Noel A. I n s t i t u t e pf I n d u s t r i a l Relations: University of B r i t i s h Columbia, 1965, p. 86. c u l t worker displacement problems where the pace i s too rapid f o r normal demand processes to accommodate. Trying to reduce the anticipated s t r u c t u r a l unemployment by means of stimulating the aggregate demand f o r labour would lead to undesirable i n f l a t i o n a r y pressures and even then would probably not solve the problem1«, Indeed 9 the amount of unemployment r e s u l t i n g from worker displacement depends on the degree of i n t e l l i g e n c e , imagination, and compassion brought to focus i n solving the adjustment problems. Therefore, even I f i t i s accepted that the aggregate l e v e l of employment i s determined by the aggregate l e v e l of de mand, the s t r u c t u r a l transformations that occur during changing technology require special consideration to en sure a minimum of t r a n s i t i o n a l disruption. Everyone must bear some r e s p o n s i b i l i t y i n minimiz ing the hardships passed on to the worker i n adjusting to changing economic and technological conditions. While agreement i s f a r from unanimous, an examination of modern p o l i c i e s and procedures does indicate a fundamental r a t  ionale necessary to future progress., A basic assumption i n Canadian industry i s the acceptance of free negotiation as a means f o r solving the ^Crispo, John H 0G 0 "Summary Report on the Confer ence" o The Requirements of Automated Jobs. North Ameri can J o i n t Conference, Washington, D0Co9 1964. P a r i s , France: O.E.C.D. Publ i c a t i o n , 19&5, p. 26. - 8 - complexities of labour-management problems. Whereas there has been strong agreement to the free bargaining approach, there has also developed an increasing awareness of a need f o r more constructive and innovative ideas i n c o l l e c t i v e bargaining processes. Avid proponents of c o l l e c t i v e bar gaining see the problems of worker adjustment as almost completely amenable to t h i s negotiation approach. On the other hand, c r i t i c i s m has bared i t s weaknesses 1. The i n d i v i d u a l enterprise i s considered the primary agent which must carry most of the r e s p o n s i b i l i t y f o r i n i t i a l l y meeting the need f o r manpower adjustment. Thus, management i s c a l l e d upon to provide advance notice of im pending changes and to research i t s ramifications based on a judicious combination o f productivity and human welfare. Manpower planning involves the accurate forecasting of new job requirements, the analysis of the content of new jobs created and the development and implementation of r e t r a i n - irig programs f o r the new Jobs . The union plays a s i g n i f i c a n t role i n t h i s process by adapting to and supporting the manpower adjustment pro grams of the enterprise which are i n the ultimate interest •^See Chapter I I , Limitations of the Process Section, pp. 5 5 - 6 1 . 2 Dymond, W.R. "Co-ordination of Active Manpower Po l i c y i n the Enterprise with National Manpower P o l i c y " . Paper presented to International Conference on Methods of Adjustment of Workers to Technical Change at the Plant Level i n Amsterdam, Nov. 15th to 18th, 1 9 6 6 , p. 6 . - 9 - of i t s members. Increasing pressure has forced unions to reassess old p o l i c i e s and practices i n the l i g h t of new sit u a t i o n s . For example, declining union membership can be correlated with increased demands f o r worker job secur i t y . This practice has impeded the worker"s job mobility and consequently his chance to adjust to changes. The role of government must be to harmonize enter prise manpower p o l i c i e s and programs with national, s o c i a l and economic i n t e r e s t s . I f the enterprise does not provide forward-lookingj, well-planned and constructive manpower programs to ensure worker consideration, then national manpower pol i c y must provide f o r worker adjustment. There are many instances too, when i t i s obviously not possible f o r the enterprise to provide complete i n t e r n a l adjustment. In such cases the government, through i t s employment and manpower services, should play a major role i n f a c i l i t a t  ing the adjustment of those d i s p l a c e d 1 . Through programs aimed at upgrading, t r a i n i n g , r e t r a i n i n g and relocation of displaced workers the government seeks to achieve the worker's f u l l contribution to the national economy. The major concern of t h i s report l i e s with the widely heralded c o l l e c t i v e bargaining Innovation—the j o i n t study committee. Here management and labour are provided with an informal channel of communication and a Ibi d , o pp 0 4—7° - 10 - means to promote constructive research into manpower ad justment programs. Where t r a d i t i o n a l c o l l e c t i v e bargain ing has reached an impasse and where problems are too com plex to be solved by eleventh-hour decision making the issues are found to be more l i k e l y solved through j o i n t research and consultation. Solutions developed i n t h i s way are normally a complex mix of the regular c o l l e c t i v e bargaining methods assimilated into a comprehensive plan. The Joint study committee has been r e a d i l y adopted i n i n  dustries where the pace and nature of technological change has posed severe threats to the s t a b i l i t y of labour-manage ment r e l a t i o n s 1 . The Importance of t h i s approach to manpower adjust ment i s emphasized by the federal government. I t has pro vided means whereby management and labour are encouraged to enter into t h i s constructive form of Joint discussion. I I I . CANADIAN MANPOWER POLICY There are various methods that countries have chosen as approaches to providing an active manpower p o l  i c y . For example, guaranteed employment, minimum wages, maximum hours, provision f o r advance notice of l a y - o f f , area redevelopment, and many other techniques are preval- •MiJeber, A.R. "Variety i n Adaptation to Techno l o g i c a l Change: The Contribution, of C o l l e c t i v e Bargaining?. The Requirements of Automated Jobs, p. 210. - 11 - ent. Canadian manpower p o l i c i e s are b a s i c a l l y designed to deal with any adverse forces which tend to create an im balance i n the labour market» In June of 1964, the Minis te r of Labour made the government's p o l i c i e s i n t h i s f i e l d e x p l i c i t : "The goals of manpower p o l i c y can be expressed i n terms of ensuring the n a t i o n s manpower' resources are developed e f f e c t i v e l y so that they w i l l meet the dynamic requirements of growth i n the economy, and also meet the needs of each i n d i v i d u a l f o r the f u l l development of his potential i n human terms." 1 This view was further emphasized i n November* 1966 at an inter n a t i o n a l conference: "An active manpower p o l i c y In advanced economies i s based on a growing recognition that the improved q u a l i t y of the human factor i n production i s r e l a t  i v e l y more important as a contribution to long-term economic growth than i s the applica t i o n of c a p i t a l and technology." This type of government p a r t i c i p a t i o n has ramific ations i n economic and s o c i a l terms. Economically, i t means providing the worker with t r a i n i n g , r e t r a i n i n g and mobility, both geographically and occupationally, f o r an ever-changing employment mix 0 S o c i a l l y , I t means providing workers "with the opportunity to meet the challenge of a changing world, to protect them from unnecessary ^•MacEachen, Hon„ A l l a n J c "Government Manpower and Employment P o l i c y i n Canada"0 Address to Fifteenth Annual Conference at the I n d u s t r i a l Relations Center, McGill University, Montreal 9 June 89 1964, p D 2D 2Dymond, W0Ro 0p_0 C i t 0 9 p D 10 - 12 - disruptions r e s u l t i n g from change, to help them equip themselves with the s k i l l s to pa r t i c i p a t e i n and benefit from economic growth and to help them change t h e i r employment and where necessary t h e i r place of residence without unnecessary f i n a n c i a l hardship." 1 In Canada t h i s p o l icy i s emphasized i n three basic areas: 1. Development of adequate manpower resources to f a c i  l i t a t e the process of economic growth. 2. Increasing the u t i l i z a t i o n of pur manpower resources by ensuring that the labour market functions as e f f i c i e n t l y as possible,, 3 . Adaptation of the currently employed manpower to the ever-changing requirements of technological and econ omic change^. The f i r s t major goal of Canadian manpower po l i c y was implemented under the provisions of the Technical and Vocational Training Assistance Act of I960 and subsequent amendmentSo Provision i s therefor made f o r assistance i n t r a i n i n g , r e t r a i n i n g and mobility which are necessary i n the development of ef f e c t i v e manpower resources. The second emphasis i s provided f o r i n the object ives of the Canada Manpower Divisions of the federal De- •LLoCo C l t „ ^Dymond, W<,R0 "Manpower and Employment: Problems, P o l i c i e s and Programs"» Address to Seminar, Technical and Vocational Training Branch of the Federal Department of Labour, Ottawa, December 1, 1965 s pp. 10=11o - 13 - partment of Manpower and Immigration1-„ A network of some two hundred manpower centers across Canada administer national manpower programs i n an attempt to ensure an e f f i c i e n t l y functioning labour market 0 The d i f f i c u l t and complex problems which major technological and economic changes have Imposed on indiv idual companies and workers led the Department of Labour to e s t a b l i s h a Manpower Consultative Service i n mid- I 9 6 4 2 . The Manpower Consultative Service seeks to establish the join t study committee approach to manpower adjustment pro blems by encouraging management and labour In the develop ment of constructive research programs 0 It was set up s p e c i f i c a l l y to encourage j o i n t discussion and study by management and labour of technological changes a f f e c t i n g employment„ The Manpower Consultative Service's trouble- averting approach brings the parties together f a r enough i n advance to avoid the crises-type negotiations of c o l l  ective bargaining^,, The Service co-ordinates manpower ad justment cases by providing f i n a n c i a l and consultative assistance and by drawing on aids Included i n the Technical xThe names of these departments have b e e n changed recently. Refer to Chapter I, Terminology Sections, p, 22 f o r c l a r i f i c a t i o n , ^Dymondj, W0R<, "Manpower and Employment; Problems, P o l i c i e s and Programs", 0j>0 C i t , 9 p„ 14 „ 3Financial Post« The, "New 'Strike-Stoppers': Ottawa Team Heads Off Automation Stoppages". J u l y 169 1966s p„ 24, - 1 4 - a n d V o c a t i o n a l T r a i n i n g A s s i s t a n c e A c t a n d o t h e r s e r v i c e s p r o v i d e d b y t h e Canada M a n p o w e r D i v i s i o n s „ T h e o b j e c t i s t o p r o v i d e a h a r m o n i z a t i o n o f t h e p r i v a t e a n d p u b l i c m a n  p o w e r p o l i c i e s t o t h e common b e n e f i t o f a l l „ T h e g o v e r n  m e n t m a i n t a i n s 9 h o w e v e r , t h a t r e s p o n s i b i l i t y f o r m a n p o w e r a d j u s t m e n t l i e s p r i n c i p a l l y w i t h m a n a g e m e n t a n d l a b o u r a n d t h a t t h i s a d j u s t m e n t c a n be m o s t e f f e c t i v e l y h a n d l e d a t t h e p l a n t o r i n d u s t r y l e v e l „ T h e sum o f t h e g o v e r n m e n t 1 s m a n p o w e r e f f o r t b o t h i n y o u t h a n d a d u l t p r o g r a m s h a s b e e n d i r e c t e d t o w a r d s a m o r e b a l a n c e d l a b o u r f o r c e ; o n e i n w h i c h t h e economy w i l l be a b l e t o m a i n t a i n i t s c o m p e t i t i v e p o s i t i o n i n t h e i n t e r  n a t i o n a l s p h e r e , s t r u c t u r a l u n e m p l o y m e n t w i l l b e r e d u c e d a n d t h e c a p a c i t i e s o f i n d i v i d u a l s i n t h e l a b o u r f o r c e u t i l i z e d ^ o I V o PURPOSE OF THE STUDY I t h a s b e e n a r g u e d t h a t c o - o r d i n a t i o n o f t h e n a t  i o n a l m a n p o w e r p o l i c y w i t h e n t e r p r i s e m a n p o w e r a d j u s t m e n t p p r o g r a m s c a n o n l y b e a c h i e v e d b y l e g i s l a t i o n 0 T h i s a r g u  m e n t i s l i k e l y b a s e d o n t h e p r e m i s e t h a t t h e p e r s p e c t i v e s D y m o n d , W 0 R 0 " M a n p o w e r a n d E m p l o y m e n t : P r o b l e m s , P o l i c i e s a n d P r o g r a m s " 0 0 p ° C l t 0 9 p 0 13o p ^ D y m o n d , W „ R 0 " C o - o r d i n a t i o n o f A c t i v e M a n p o w e r P o l i c y i n t h e E n t e r p r i s e w i t h N a t i o n a l M a n p o w e r P o l i c y " , , O p . C i t . , p . 12o - 15 - of management and labour have become highly divided with the increasing degree of technology„ For some, the view suggests that employees are self-centered with l i t t l e con cern f o r the needs of the organization; and, i n return, that managers do not make decisions i n terms of employee security or i n d i v i d u a l r i g h t s 1 . Another argument s t r i k e s at the right of government "interference" i n encouraging the j o i n t committee approach. Concern i s focussed on the reduction of management's right to manage when Joint committees are formed. Both labour and management may also believe that the t r a d i t i o n a l c o l l  ective bargaining methods are being short c i r c u i t e d by the Manpower Consultative Service approach 2. One management representative expressed t h i s sentiment as follows: "To have achieved security from the inconveniences and disturbances of automation but have l o s t r e a l freedom would hardly represent a worthwhile achievement 0"3 A c o n f l i c t that has arisen with the further develop ment of the Manpower Consultative Service approach Is the i n t e r r e l a t i o n s h i p between the manpower research recommend ations and c o l l e c t i v e bargaining,. One research chairman x H a l l , NoA0 "The Impact of Technology on Organiz ations and Individuals". Business Quarterly, The„ Vol. 31, No. 4, 1966, p P o 59=61. 2 F i n a n c i a l Post, The. 0p„ Clt„, p. 24„ ^Boarman, Patrick M. "Conclusions and Implications". The Requirements of Automated Jobs„ p„ 433° - 16 - has pointed out that the members of his Commission were the same who used to meet at the bargaining table f o r c o l l e c t i v e bargaining and carried on the bargaining com plex at research meetings„ He concludes, however, that to be very e f f e c t i v e "Company and union representatives should be people i n authority and not the same who meet at the bargaining table,," 1 In contrast, another research chairman suggests that discussions of automation problems should remain separate from broad negotiations f o r new contracts but should remain the r e s p o n s i b i l i t y of those involved i n contract negotiations2» The Manpower Consultative Service has been i n oper ation long enough to allow f o r an evaluation of i t s meth ods, p r i n c i p l e s and achievements. In December, 1964- i t was suggested that the Service confidently expects that within two years at most i t w i l l have proved i t s e l f 3 . This report w i l l provide an evaluation of many of the facets as indicated following. The intent of t h i s report w i l l be to analyze, con t r a s t and compare selected cases Of manpower assessment xDion, Go "The Experience of a J o i n t Research Comm i s s i o n i n a Case of I n d u s t r i a l Conversion (Domtar, Windsor, Quebec 1965)"° I n d u s t r i a l Relations Quarterly Review. Vole 21, No. 4, October, 1966, p„ 584. 2Vancouver Sun, The. " F i r s t Automation Contract Won by loco O i l Workers". February 14, 196?, p. 1. %ouse, A.Wo "Planning f o r Future Manpower Changes". In d u s t r i a l Canada. December, 1964, p. 25. -• 1 7 - and planning handled under the auspices of the federal government's Manpower Consultative Service» Through such an evaluation an attempt w i l l be made to f i n d answers to the aforementioned type of argument and conflict„ In add i t i o n , an attempt w i l l be made to categorize the available approaches to manpower adjustment such that the j o i n t comm i t t e e approach can be put i n proper context andj consequen t l y , bring to l i g h t the type of adjustment program found most amenable to the j o i n t committee approach,, S p e c i f i c  a l l y the purpose of t h i s investigation i s to examine Cana dian adjustment cases i n the l i g h t of established p r i n  c i p l e s to determine: (a) I f a fundamental pattern or common rationale has emerged i n experience with the committee approach that warrants the development of standard tech niques amenable to solution of manpower adjust ment problemso (b) I f the p r i n c i p l e s enunciated at inception of the Manpower Consultative Service have been adhered to and are adequate i n the l i g h t of experiences to dateo (c) I f the work of the Manpower Consultative Service i n encouraging the j o i n t committee approach to worker adjustment appears to be f u l f i l l i n g the government's r e s p o n s i b i l i t i e s i n ef f e c t i n g an active manpower policy,, Vo METHODOLOGY The Manpower Consultative Service functions i n a sphere of operations Including many approaches to the solution of manpower adjustment problems associated with - 1 8 - technological change Most of i t s effect i s f e l t i n the domain of labour-management relations that emerge when major change i s imminent„ In t h i s regard i t encourages the j o i n t committee approach to problem solving. I t i s es s e n t i a l , therefore, that the role of the Manpower Con s u l t a t i v e Service be put i n proper context i n the sphere i n which i t operates. Accordingly, the techniques of c o l l e c t i v e bargaining as they pertain to worker adjustment w i l l be examined i n Chapter II„ Such an examination w i l l indicate how the j o i n t labour-management committee has emerged as a creative approach to problems of manpower adjustment. P a r t i c u l a r aspects of the Joint committee approach w i l l be related In Chapter I I I and an examination of the experience which attempts at such an approach have had i n the past w i l l provide a framework within which the Manpower Consultative Service function can be studied and evaluated. In Chapter IV the p r i n c i p l e s , approach and selected cases handled by the Manpower Consultative Service w i l l be delineated. At t h i s stage the role of the Manpower Con s u l t a t i v e Service can be put i n context with the techni ques used In ef f e c t i n g manpower adjustment. The develop ment of such a framework and body of material essential to the d i s p o s i t i o n of t h i s study w i l l enable the desired eval uation and purposes as related above to be f u l f i l l e d . Thus, the cases related i n Chapter IV w i l l provide the - 19 - data r e q u i s i t e to a search f o r any patterns that might e x i s t ; the p r i n c i p l e s and the cases of Chapter IV, exam ined i n the l i g h t of the framework developed In Chapters II and I I I , w i l l provide the material necessary i n eval uating the expounded p r i n c i p l e s ; and the complete study examined i n the l i g h t of recent l i t e r a t u r e should provide an insight into whether or not the Manpower Consultative Service i s f u l f i l l i n g i t s purported role and i t s respon s i b i l i t i e s In enhancing an active manpower p o l i c y , VIo SCOPE OF THE REPORT Although the purposes of t h i s report have been de lineated quite s p e c i f i o a l l y 9 there i s need f o r c l a r i f i  cation of the scope i n which i t i s possible to seek ans wers to these purposes© This evaluation i s based on the two years" experience of the Manpower Consultative Service and i s l i m i t e d to the extent i n which the results are con sidered f l n a l i z e d o In addition, the ten selected cases related In Chapter IV are mainly extractions from a v a i l  able written material and the results may be somewhat lacking i n complete presentation,, I t i s assumed i n t h i s report, however9 that the cases are s u f f i c i e n t l y completed so that emerging trends may be examined with confidence. Because t h i s report proposes to evaluate, i t i s necessary t o p r e p a r e a s t a n d a r d measure f o r comparison Therefore, t h i s evaluation i s l i m i t e d to t h e extent In 20 which the base i s established, A standard framework w i l l be developed i n Chapters I I , I I I and IV which w i l l concen trate mainly on the Canadian i n d u s t r i a l relations scene. I t i s being assumed that the l i t e r a t u r e which has been re viewed i s complete and up-to-date and w i l l provide a v a l i d standard f o r comparison,, This evaluation seeks to examine the compatibility between the expectations of the Manpower Consultative Ser vice by labour, management and government and the empir i c a l evidence that has emerged from the Service's exper ience to date. The scope of t h i s examination i s l i m i t e d to a contrast between actual outcomes and the planned and desired objectives within the framework established i n t h i s report. As semantics abound i n any study dealing with auto mation, I t Is important to t h i s report to c l a r i f y the con fusion that exists between the terms mechanization, auto mation, cybernation^ technological change and i n d u s t r i a l conversion 1 0 -••This terminology has been paraphrased from: Francis, J 0 P 0 "Technological Change, Productivity and Employment In Canada1™, and Barkin, S, "Manpower Problems and Management i n an Automated Age", Both i n The Require  ments of Automated Jobs 0 p„ 38 and p 0 §6 respectively. V I I , TERMINOLOGY - 21 - Mechanization i s primarily a process of inventing and adapting machinery to perform rather s p e c i f i c oper ations t r a d i t i o n a l l y carried out by human labour,. Most commonly mechanization refers to the transfer machine; a method of automatically coupling or i n t e r l o c k i n g a group of machines Into a single l i n e of production,, Automation i s a combination of advanced forms of technology such as electronics and servo-mechanisms that enable automatic control. The automatic control mechanism introduced the closed-loop feedback into the transfer mechanism, thereby making i t possible to create an auto matic e l e c t r o n i c a l l y remote-controlled, self-contained production system. Errors or deviations from pre-deter- mined lev e l s are automatically corrected so that the mach ine continues to function i n a pre-determined manner. When a computer i s added to the closed-loop feed back system a duplication of the human cognitive, con ceptual and information processes i s achieved. The com puter w i l l digest information and redirect instructions to the system producing the ultimate i n automation. The system i s often coined cybernation r e f e r r i n g to the syst ematic process of communication and control i n man and machine. Technological change can encompass any one of the above terms, a l l of them, or even more than a combination of the terms, The concern of t h i s report i s with change - 22 - that causes the displacement of human resources and there fore requires the provision of an adjustment procedure. Moreover, " i t i s impossible to i s o l a t e displacements at t r i b u t a b l e s o l e l y to technological change because of the interrelatedness of a l l factors that determine the cause of employment."1 Therefore, the most fea s i b l e i n t e r p r e t a t i o n of techno l o g i c a l change i s any change i n material, equipment, meth ods, organization or product which a l t e r s the quantity or q u a l i t y of labour required per unit of r e a l output. Because of the confusion that has arisen over the semantics of the above terms, an expression c a l l e d indust r i a l conversion has received increasing usage i n recent l i t e r a t u r e dealing with manpower d i s l o c a t i o n . One report states that: " I n d u s t r i a l conversions d i f f e r from 'techno l o g i c a l changes'. They are modifications which appear as brusque mutations i n the structure of production provoking i n t e r n a l or external d i s  continuity i n employment. In putting the accent on the u t i l i z a t i o n of manpower, a much greater emphasis i s being placed on the s o e i a l aspects of conversionso" z There i s also need f o r c l a r i f i c a t i o n i n regard to the names of federal departments referred to i n t h i s re port. The Manpower Consultative Service was formed i n •••Beaumont, R„A0 and Helfgott, R.B. Op. C i t . , p. 25. 2Report of the Commission of Inquiry into the Effects of Mechanization i n the Windsor (P.Q.) Plant of Domtar Pulp and Paper, (unpublished paper), 1 9 6 5 ,- p. 9 . - 23 - 196* and functioned under the Department of Labour u n t i l early 1966. At t h i s time the Service was transferred to the Department pf Citizenship and Immigration, In mid- 1966 the l a t t e r Department's t i t l e was formally changed to the Department of Manpower and Immigration. Under the Department of Manpower and Immigration the National Em ployment Service t i t l e was changed to Canada Manpower Center. This report w i l l have occasion to use these t i t l e s interchangeably with reference to the Manpower Consultative Service by v i r t u e of the period under study and confusion can be eliminated by recognition of the date of reference. CHAPTER I I MANPOWER ADJUSTMENT THROUGH COLLECTIVE BARGAINING I. INTRODUCTION This chapter w i l l review the c o l l e c t i v e bargaining approaches found most amenable to manpower adjustment and point out some l i m i t a t i o n s and weaknesses i n the process. In addition, i t w i l l indicate how j o i n t study committees have emerged to face the increasing challenges of techno- l o g i c a l change by developing comprehensive plans u t i l i  zing the varied techniques of c o l l e c t i v e bargaining i n sUoh a way as to meet the needs of a p a r t i c u l a r adjustment problem. C o l l e c t i v e bargaining may be described as a process of negotiation between an employer and a labour union re presenting his employees, conducted with the object of concluding an agreement regulating the relationship bet ween both the employer and his employees and the employer and the union 1. I t i s a method devised to s e t t l e c o n f l i c t and the issues that generate c o n f l i c t . The introduction of automation and/or technological xCarrothers, A.W.R. "The Growth of Third Party Power i n I n d u s t r i a l Disputes - Introductory Statement". B r i t i s h Columbia Labour Management Conference - 1963. Ed. by Montague, J.T. and Jamieson, S.M. I n s t i t u t e of Indust r i a l Relations: University of B r i t i s h Columbia, I963, p. 158. - 25 - change generates c o n f l i c t . In essence t h i s c o n f l i c t has emerged from the issue of e f f i c i e n c y versus security i n the i n d u s t r i a l concern and results i n a paradox of surviv a l . Automation threatens the worker's job security by rendering his s k i l l obsolete. Moreover i t threatens the power and security of the union as I t s membership begins to erode. On the other hand, management, caught up i n an ever-Increasing competitive environment where pressures mount f o r cost reductions and increased e f f i c i e n c y , i s concerned with i t s own struggle f o r s u r v i v a l . C o l l e c t i v e bargaining has received i t s most d i f f i  c u l t challenge f o r s u r v i v a l during the onslaught of i n  creasing technological change. However, many authors have viewed c o l l e c t i v e bargaining as adapting to the challenge very w e l l 1 . The results of t h i s f l e x i b i l i t y are evident In the changing t r a d i t i o n a l p r i o r i t i e s on the bargaining agenda. T r a d i t i o n a l issues involving wages have essent i a l l y given way to those involving security. Thus methods of cushioning the adjustment of workers displaced from t h e i r jobs serves to determine how other I n d u s t r i a l r e l a  tions aspects of technological change are received. x S h u l t z , G.F. "Economic and Technological Change i n the S i x t i e s - Patterns of Response to Change, Intro ductory Statement". Labour-Management Conference on Econ omic and Technological Change i n the S i x t i e s , p. 130. Weber, A.R. 0p_o C i t . , p. 207. Ross, A.M. "Conference Perspectives - Internat ional Insights Into I n d u s t r i a l Relations". B r i t i s h Col umbia Labour Management Conference - 1963. p. 31. - 26 - The methods used i n c o l l e c t i v e bargaining to f a c i l  i t a t e worker adjustment are viewed i n many di f f e r e n t ways by numerous authors. For investigation purposes, however, the issues can a l l be u s e f u l l y c l a s s i f i e d as monetary or non-monetary i n nature. In t h i s manner each of these two fundamental c l a s s i f i c a t i o n s can be further s p l i t into many sub-issues, some of which are an attempt to provide worker security while others obviously are not. I t i s worth men tioning that many of the security issues have emerged i n the l a s t decade along with the increasing onrush of tech nological change 1. S t i l l , i t must be remembered that very often management w i l l gladly o f f e r a monetary incentive to encourage the union away from security and other demands that in f r i n g e on what i s believed to be i t s Vright to manage". I I . MONETARY ISSUES Wages In the post-war period wage issues dominated the c o l l e c t i v e bargaining agenda, the c r i t e r i a being depend ent on cost of l i v i n g and improvements i n productivity. xBlock, Joseph W, "Problems of C o l l e c t i v e Bar gaining i n a Changing Technology - I t s Impact on Wages, Working Conditions and Fringe Benefits - Introductory Statement". B r i t i s h Columbia Labour Management Conference - 1963. p. 1 3 1 . - 2 ? - However, when the unions r e a l i z e d that t h e i r pressure f o r increased wages was increasing the pace of technological implementation, the basic transformation i n union policy- was insistence on sharing the r e s u l t i n g gains with a l l the workers. The unions also demanded p a r t i c i p a t i o n i n s e t t  ing or reviewing rates and/or workloads on new or changed jobs 1 . Other t r a d i t i o n a l wage issues such as job evalua t i o n plans and incentive systems have f e l t the pressure of changing technology. Although the Job evaluation system gained Impetus following the war, technological changes have introduced many complexities into the system which requires careful adjustment i n order to be use f u l . In deed, a straight a p p l i c a t i o n of factors has i n some cases downgraded Jobs, which not only defies worker expectations but also common sense. Incentive systems have apparently reached a plateau i n terms of prevalence during post-war years. Under the pressure of technological change, however, there has devel oped a trend towards the group rather than i n d i v i d u a l i n  c e n t i v e s 2 . Some of the incentive schemes have developed as a di r e c t defence to technological change and an attempt by the union to gain a share i n the r e s u l t i n g benefits. 1 I b i d . , p. 133. 2Loc. C i t . - 28 - Two of these—the annual Improvement factor and gain- sharing p l a n s — w i l l be discussed under "Incentive Systems". Many other variances i n wage issues have developed as special means of combatting p a r t i c u l a r problems. Spec i a l hourly rates f o r displaced workers and red c i r c l e rates f o r unaligned hourly rated workers abound i n i n  dustry during the process of adjustment. An innovation that has ignited a spark i n a few industries i s conversion from the straight wage to the salary system. This i s p a r t i c u l a r l y amenable to re f i n e r y operations where workers are required to be generalists and often cross J u r i s d i c  t i o n a l l i n e s . Consequently, there has been increased leanings towards the development of a sa l a r i e d refinery technician to replace the many wage earners currently em ployed. Incentive Systems Two noteworthy innovations that have developed i n labour-management negotiations have recently received wide spread discussion f o r t h e i r f l e x i b i l i t y i n meeting p a r t i  c u l a r l y d i f f i c u l t challenges. One i s c a l l e d the annual improvement factor, a long-term contract approach that embodies the notion that a general advance i n productivity deserves a general Increase i n wages. The other,a gain- sharing plan, i s d i s t i n c t from the annual improvement factor i n that i t receives impetus from forces generated - 29 - within the organization. Thus, one i s based on factors that operate broadly across the economy; the other i s based on factors operating within the f i r m 1 . The annual improvement factor arises from the de s i r e of management to achieve increased productivity and the desire of the union to remain unlnvolved d i r e c t l y with e f f i c i e n c y measures. I t can only e x i s t where there i s above average performance by the firm and the industry. That i s , to exi s t competitively the national productivity l e v e l would have to be below the firm or industry's prod u c t i v i t y l e v e l . A major drawbaok to t h i s approach arises i f the national productivity l e v e l beoomes accepted as a basis from which to s t a r t negotiations. The basis f o r gain-sharing incentive systems pre sumably l i e s i n the d i s t i n c t i o n between general and spec i a l improvements i n productivity. At Kaiser S t e e l , f o r ex ample, wages and fringe benefits move In accordance with general movements of other key variables i n the industry. This approach brings the wage base back into the industry ( i n contrast to the aforementioned annual improvement factor incentive). Special consideration must be given to the d i s t i n c t i o n between technologically generated gains based on broad economic trends and the gains created by ef f o r t s of employees to use resources more e f f e c t i v e l y . Shultz, G.Po 0p_. C i t . , p. 131. - 30 - D i f f i c u l t i e s can ar i s e even i f meticulous care i s used i n developing t h i s type of plan. I f the industry i s subject to s t i f f competition and consequently r e s t r i c t i v e price l e v e l s and i f a technological break-through devel ops, "wage gains would not l i k e l y match industry-wide productivity changes, leaving Kaiser a d i f f i c u l t problem i n f a c t o r i n g the results of these changes out of i t s wage co s t s . " 1 However, no formula i s able to match completely a l l the dr a s t i c events of technological change. This method does o f f e r the advantage of a common need f o r con t i n u a l assessment and review of operations and increases pressure f o r development of creative and constructive app roaches to solving new problems as they a r i s e . Fringe Benefits As with wage increases, the introduction of many new fringe benefits and the l i b e r a l i z a t i o n of ex i s t i n g ones, have developed from productivity gains and therefore must be considered a consequence of technological change . On the monetary side there are a host of demands consid ered under t h i s term (fringe b e n e f i t s ) ; the issues most noteworthy are pension schemes and numerous f i n a n c i a l settlements such as guarantees of income, supplementary 1 l b i d . , p. 136. 2Block, Joseph W. 0p» C i t . , p. 13*. - 31 - unemployment benefits, severance pay and buy-out approach es. The f i n a n c i a l settlements Issue w i l l be expanded under the next sub-heading. Fringe benefits have become a most important factor i n determining employer costs. Indeed they are approach ing a l e v e l of concern because of t h e i r immobilizing effect on the worker; employers may choose to pay premium rates f o r overtime In l i e u of h i r i n g new workers. More over, i t i s becoming more d i f f i c u l t to determine the de gree to which union strength has influenced the l e v e l of fringe benefits. The corporate acceptance of broad s o c i a l obligations, seen as the s o c i a l conscience of free enter p r i s e , and the increasing requirements of government p o l i c y focusses much attention on these issues. About s i x t y per cent of a l l workers under c o l l e c t  ive bargaining agreements are covered by private pension pl a n s 1 . This provision of an annuity to long-service em ployees when they r e t i r e tends "to i n h i b i t m obility within the bounds of the firm unless ways and means are found to make pensions and other benefits portable as between enter p r i s e s . " 2 Therefore, as a means of f a c i l i t a t i n g worker adjustment, i t i s seen as a necessary security provision xLoo. C i t . 2Dymond, W.R. "Co-ordination of an Active Manpower Po l i c y i n the Enterprise with National Manpower P o l i c y " . Op. C i t . , p. 8. - 32 - f o r r e t i r e m e n t ; i t i s a l s o seen t o be an u n n e c e s s a r y im pediment t o t h e a d j u s t m e n t p r o c e d u r e by v i r t u e o f i t s l a c k of p o r t a b i l i t y . N e v e r t h e l e s s , u n i o n s bent on p r e s e r v i n g membership numbers and companies w i s h i n g t o m i n i m i z e t u r n o v e r , a r e l i k e l y t o keep p e n s i o n schemes prominent on t h e c o l l e c t i v e b a r g a i n i n g agenda. F i n a n c i a l Guarantees Where t h e magnitude of d i s p l a c e m e n t t h r e a t e n e d by t e c h n o l o g i c a l change has r e a c h e d major l a y - o f f p r o p o r t i o n s u n i o n s a r e l i k e l y t o demand economic g u a r a n t e e s and/or i n  d e m n i f i c a t i o n . Under a system o f economic g u a r a n t e e s a group of workers i s a s s u r e d o f a j o b o r a t l e a s t some minimum e a r n i n g s o v e r a p r e s c r i b e d p e r i o d of t i m e . Indem n i f i c a t i o n , on t h e o t h e r hand, s e v e r s t h e c o n n e c t i o n b e t  ween t h e employer and employee t h r o u g h p r o v i s i o n o f a lump sum payment 1. Economic g u a r a n t e e s a r e f e a s i b l e under c o n d i t i o n s where t h e lump sum payment r e q u i r e d i s i m p o s s i b l e o r im p r a c t i c a l and a l s o where management deems i t n e c e s s a r y t o overcome u n i o n r e s i s t a n c e t o i n t r o d u c t i o n of new methods and equipment. I n t h e f i r s t c a s e , t h e s i g n i f i c a n c e of t h e g u a r a n t e e l i e s i n i t s onus on management t o engage i n man power p l a n n i n g such t h a t t h e i n d i v i d u a l i s not o v e r l o o k e d . 1Weber, A.B. 0j>. C i t . , p. 2 2 1 . - 33 - In the second case, the anticipated benefits that accrue from the introduction of new processes are seen to over come the expected costs. Because of the special conditions required to evoke t h i s form of award, economic guarantees are normally used i n combination with other factors i n an o v e r a l l comprehen sive program. Kaiser Steel's plan, f o r example, was c i t e d above as a gain-sharing approach, but one of the basic provisions of the plan stipulated that no employees s h a l l be l a i d - o f f due to technological change. Workers who are displaced from t h e i r jobs are placed i n an employment pool, guaranteed payment f o r f o r t y hours a week or the average number of hours worked i n the plant, and dispatch ed to new jobs as they a r i s e . The i n i t i a l response to the plan supports a preconceived notion, v i z . where i t i s most needed, i t i s impractical and where i t i s p r a c t i c a l , I t i s not needed. Thus, " i n the f i r s t nine months of the pro gram, only one worker had been placed i n the employment reserve and he was covered by the protective provisions of the guarantee for only three hours." 1 In the Westcoast Longshore industry manpower prac t i c e s were so r e s t r i c t i v e and competition so d i f f i c u l t xKossoris, Max. D. "Methods of Adjusting to Auto mation and Technological Change". A Review of Selected  Methods Prepared f o r the President's Committee on Labor  Management P o l i c y . U.S. Department of Labor, 19o"4, p. 33, c i t e d i n Weber, A.R. Op.. C i t . . p. 222. - 34 - that management had to buy t h e i r way out of economic chaos. In order f o r management to introduce mechanization i n terms of allowing f o r k - l i f t trucks into ships and other more e f f i c i e n t methods of handling cargo, a fund of twenty-nine m i l l i o n d o l l a r s had to be established to finance various programs to avert, or otherwise cushion, the consequences of these changes. Provision was thereby made f o r employment and income guarantees. Under t h i s plan, however, workers were encouraged into early r e t i r e  ment thus removing employment positions i n pace with technological change. The r e s u l t was that "between I960 and 1963 the wage and employment guarantees have seldom, i f ever, been used."l The t o t a l buy-out approach as s p e c i f i e d i n the Westcoast Longshore industry can be contrasted to the "plece-by-piece" approach that unions may demand. Both approaches can be c r i t i c i z e d as negative i n that they en courage bad p r a c t i c e . Moreover, the piece-by-piece app roach i s an open i n v i t a t i o n to higher and higher demands. The o i l r e f i n i n g industry i s an example where low labour costs and the importance of uninterrupted operations led to loose labour practices and continual buy-outs. Thus i t i s e s s e n t i a l , from management's point of view, to ensure that a buy-out i s t e r m i n a l 2 . •'•Weber, A.R. Op_. C i t . , p. 223. 2 S h u l t z , G.P. 0p_. Cit.-. p. 134. - 35 - Indemnification through lump sum severance payments Is a most common form of settlement as a means of adjust ment to technological change. Between 1956 and 19&3 t n e number of these provisions nearly doubled and are found i n approximately t h i r t y per cent of c o l l e c t i v e bargaining arrangements i n the United S t a t e s 1 , These plans vary from industry to industry and many plans are being modified to meet the needs of the times. Informal, ad hoe arrange ments which f i l l s p e c i f i c needs i n the absence of a gen e r a l agreement, are i n existence. Normally benefits are determined on the basis of s e n i o r i t y and range from one day to three weeks' pay f o r each year of employment with a b u i l t - i n c e l l i n g f a c t o r . Theoretically severance pay purports to contribute to the adjustment process i n diverse ways. I t may o f f e r some r e s t i t u t i o n f o r the l o s s of high property rights i n  vested i n a Job; provide the displaced worker with resour ces to meet his f i n a n c i a l obligations while searching f o r new work; and, i t may i f substantial enough, create a short-term deterrent to the rapid introduction of labour- saving technology by management2. Increasing doubt i s being voiced at the usefulness of a plan that pays off e n t i r e l y i n money and results most frequently i n rapid xKossoris, Max. D. Op,. C i t . , p. 17, c i t e d i n Weber, A..R. Op,. C i t . , p„ 224. 2Weber, A.R. Op.. C i t . , p. 224. - 36 - expenditure. Instead increasing provisions are being made to adapt the severance pay to a re t r a i n i n g requirement which would f i t the displaced worker f o r other employ- ments 1. Supplementary unemployment benefit plans, that i s , plans providing payments to l a i d - o f f workers to supplement national unemployment insurance, have undergone some re visions due to technological change. Whereas the plans were o r i g i n a l l y designed to provide income protection ag ainst seasonal and c y c l i c a l fluctuations i n production and employment, many of them have been modified to meet the requirements of technological displacement, and provide an income stream f o r varying periods following permanent lay- off . One variance of t h i s technique i s provided i n the automobile and meat-packing in d u s t r i e s . Here the plan has been integrated into a broader adjustment program that en ables the displaced worker to draw payments before he exercises his option to interplant transfer^. I I I . NON-MONETARY ISSUES Labour Turnover •'•Block, Joseph W. 0j>. C i t . , p. 135» 2 K o s s o r i s , Max. D. 0p_. C i t . , pp. 18-19, c i t e d i n Weber, A.R. 0p_. C i t . , p. 225. ^Weber, A.R. 0p_. C i t . . p. 225. - 37 - The a t t r i t i o n approach to labour turnover i s so widely endorsed f o r handling some of the dislocations associated with advancing technology that one author suggests, " f a m i l i a r i t y with t h i s approach can be used as a l i t e r a c y test among personnel managers and union repres entatives today, 1 , 1 A t t r i t i o n may be c l a s s i f i e d as "nat u r a l " where the rate of contraction of the labour force due to resignations, deaths and retirement i s approxi mately equal to or greater than the rate of displacement generated by technological change. Natural a t t r i t i o n i s very often used as a basic remedy f o r the problems of d i s  placement. Indeed many oases of major worker displacement have i n the f i n a l analysis reduced to natural a t t r i t i o n . Where natural a t t r i t i o n does not appear to be ef f e c t i n g the desired turnover the method has been modi f i e d to permit "controlled" a t t r i t i o n . Under such con t r o l l e d a t t r i t i o n the c o l l e c t i v e agreement usually s t i p  ulates a rate of decline i n the number of positions. Unions tole r a t e t h i s approach so as to discourage manage ment intervention i n the natural process i n terms of us ing t a c t i c s to increase the normal turnover rate. Those who are cautious about the a t t r i t i o n approach cringe at the thought of controlled a t t r i t i o n . The reser vations stem from the f e e l i n g that more workers than the - 38 - controlled rate may be leaving but management i s forced to a c e i l i n g rate and pot e n t i a l d i f f i c u l t y i n the long run 1. The f i n a l turnover approach i s based on a philoso phy of encouraging the withdrawal of employees from the firm or labour market. "Induced" a t t r i t i o n seeks to b a l  ance turnover with the rate of displacement b a s i c a l l y through providing incentives f o r early retirement. This approach i s most conducive to wholesale labour displace ment from major technological change or plant closures. Consequently, generous early retirement benefits have been offered i n the meat-packing, automobile, s t e e l and p e t r o l  eum r e f i n i n g industries to displaced workers who meet s p e c i f i c service and age requirements, usually twenty years of service and f i f t y - f i v e years of age. In many cases unions a c t u a l l y j o i n management i n encouraging worker retirement both f o r worker displacement and as a method f o r increasing job opportunities. However, in t e r n a l union problems can subject the union to severe pressures i n mediating the demands of younger and older workers. There are also many cases where removal of the short service employees who have the highest turnover rates and the siphoning off of older workers s t i l l leaves a large residue of po t e n t i a l unemployment from major d i s - ••-Crlspo, John. H.Go "Economic and Technological Change i n (the S i x t i e s - Patterns of Response to Change -Discussion". Labour-Management Conference on Economic  and Technological Change i n the S i x t i e s , p. 153« - 39 - locations 1 o Working Period H i s t o r i c a l l y , shorter hours of work have been em phasized as a device to preserve worker health. Negot iat i o n s i n c o l l e c t i v e agreements, f o r the most part, have l e f t unchanged the forty-hour week with time-and-one-half fo r overtime. More recently, however, the trade union movement has given a great deal of attention to the matter of reducing the hours of work to combat unemployment2. This issue has become the center of some economic debate and diverse opinions abound, A.M, Hoss, f o r example, has suggested that shorter hours of work should not be ruled out ca t e g o r i c a l l y as a method of worker adjustment. He states that both labour and management have over-simplified t h e i r positions; labour says that everybody needs a t h i r t y - f i v e hour week and the administration says that i t i s an o r i g i n a l s i n . Accordingly he suggests, "In some cases the shorter week i s the sensible solution, In other eases, not,"3 Dr, Crispo takes the viewpoint that: "There are few, i f any, reputable economists who •'•Weber, A . R , 0p_, C i t , , p. 213, 2Bloek, Joseph W, 0p_o C i t . . p, 136. 3ROSS, A . M . . 0p_. C i t , , p, 33, - 40 - w i l l support the view that reducing hours of work generates more work except i n the sense of spread ing around whatever unemployment or underemploy ment there may be i n the economy....Reducing hours of work i n no way i s l i k e l y to increase t o t a l employment."1 Some unions have sh i f t e d emphasis from shortening the work day to reducing the work year through a variety of measures. Besides making progress i n the t r a d i t i o n a l path of increasing lengths of paid vacations, many ingen ious methods have been devised f o r reducing annual hours of work. Although the formula varies from industry to industry the " i n d u s t r i a l sabbatical" includes an extended vacation of ten to f i f t e e n weeks every f i v e years f o r workers who meet the prescribed s e n i o r i t y standards. An other modification of t h i s plan provides phased r e t i r e  ment by extending the vacation period as the worker app roaches s i x t y - f i v e . A number of operational problems have been voiced about the p r i n c i p l e of reducing hours of work, no matter what method i s adopted. The issue of reducing hours f o r worker health has disappeared as an argument and nothing sacred can be associated with the demand of a t h i r t y - f i v e hour or a f o r t y hour week. Moreover, i t i s argued that many workers would just as soon work the extra time and ICrispo, John H.G. "Economic and Technological Change i n the S i x t i e s - Patterns of Response to Change - Discussion". 0p_. C i t . . pp. 154-155. - i n  take home that much more pay. Consequently, the issue he- comes one of choosing between income and l e i s u r e and there i s no evident common ground. A further point s t r i k e s at the heart of the union argument that reduced hours of work w i l l increase job opportunities. As previously indicated, there i s no proof that reducing o v e r a l l hours of annual work produces more jobs. Indeed, where the pressure f o r e f f i c i e n c y i s great, the anticipated job openings do not materialize as manage ment becomes determined to operate with less manpower. Many cases of moonlighting and working overtime have accom panied the acceptance of a shorter work week1. Labour M o b i l i t y When lay - o f f for any reason becomes imminent, sen i o r i t y issues and procedures f o r entering the labour mark et become most important. Included i n t h i s procedure i s normally some provision f o r transfer to another company plant; r e t r a i n i n g f o r placement either i n the same plant or a company plant i n another geographical area; or, place ment outside the company. A l l of these procedures have emerged from c o l l e c t i v e bargaining agreements as an a i d In worker adjustment to technology and have met with vary ing success. Weber, A.R. 0p_. C i t . . p. 221. -. 42 - Where the burden of displacement f a l l s heavily on few departments within a plant or plants within an Indust ry e f f o r t s have been made to increase the workers* mobil i t y by expanding the unit of employment opportunities. This may be accomplished through modification of the sen i o r i t y system i n the plant, through developing formal channels of access to new occupational categories or through establishment of interplant transfer systems 1. In the f i r s t case, plant s e n i o r i t y systems estab l i s h some arrangement f o r bumping rights such that a senior employee displaced from his job can claim p r i v i l  eges to a junior employee's p o s i t i o n . A labour pool i s normally established f o r those who become displaced from various departments and s e n i o r i t y also prevails i n t h i s u n i t . This system presents many problems f o r unions and personnel managers a l i k e as considerations of equity and i n e f f i c i e n c y are formidable. In order to overcome some of the problems assoc iated with interplant bumping rights many unions have sought to ease displaced workers into other occupational sectors, f o r example, through apprenticeship programs, where the number of jobs are r e l a t i v e l y stable or increas ing. In t h i s manner the worker i s moved into an area of long-run economic opportunity rather than passing the dis Ib i d . , p. 214 - 4-3 - placement down the l i n e i n contracting employment s i t u a  t i o n s . Inadequacies i n transfer provisions within a plant have led to more pressure f o r interplant transfer u n i t s , es p e c i a l l y where the ensuing change involves a major shutdown,, This type of plan i s , f o r the most part, l i m  i t e d to multi-plant firms or where one union has repres entation f o r a number of units within an organization. And the nature of transfer rights i n most cases has been l i m i t e d to p r e f e r e n t i a l h i r i n g only. Some plans have been arranged, however, where employees are transferred from one plant to another along with t h e i r associated jobs. This "transfer of operation" p r i n c i p l e has been success f u l l y implemented i n the automobile industry and many r a i l r o a d and meat-packing operations 1. Unrestricted interplant bumping arrangements are rare i n United States c o l l e c t i v e bargaining agreements. This procedure i s completely untenable to stable operat ions and normally does not receive union support i n view of the l i k e l i h o o d of crossing l o c a l l i n e s . Where the plan has been t r i e d i t i s normally accompanied by many r e s t r i c t i v e conditions and then does not cross l o c a l union l i n e s . Issues of controversy over integration of workers' - i+4 - s e n i o r i t y into a new plant that normally accompany job- preference and transfer-of-operations plans, have been overcome i n some cases by establishing job rights i n the new plant as of a given date. In addition, to overcome the psychological problems that are known to upset work ers i n moving from one location to another, many extra provisions are required. I n i t i a l l y , the implementation of a transfer pro gram normally involves provisions f o r relocation and moving allowances. Once transferred, there i s quite often a necessity to provide worker r e t r a i n i n g , e s p e c i a l l y i f the new unit i s s i g n i f i c a n t l y d i f f e r e n t than the one transferred from. The problems of adapting to t h i s sort of change and the uncertainty attached has lead many mob i l i t y programs to f a i l miserably 1. Beyond any special Interplant transfer provisions, however, the labour market i s s t i l l the p r i n c i p a l mechan ism f o r adjusting to new manpower requirements i n the economy. Thus, guidance i s offered the displaced worker through occupational r e t r a i n i n g and/or by attempting to help him obtain placement with another firm. Most of the experience with such programs has been extra-contractual i n nature 2. I b i d . , p. 218. 2 I b l d . . p. 225. - 45 - E f f o r t s at direct placement by employers and unions have met with formidable odds. V a r i a b i l i t y i n s k i l l s and other factors of the displaced worker must necessarily meet with the geographical conditions and general economic environment of the new s i t u a t i o n . Nevertheless, modest contributions have been made through c o l l e c t i n g and d i s  seminating job information, counselling and overt canvass ing of other employers. For the most part, however, i t has been re a l i z e d that national employment services are better equipped to handle these problems. In recent years r e t r a i n i n g has received increased attention from unions and management a l i k e . The workers most vulnerable to technological displacement usually have minimal or non-transferable s k i l l s and ret r a i n i n g can promote occupational mobility and considerably enhance t h e i r replacement chances 1. Most of these e f f o r t s have been outside contract provisions and have been financed by proceeds from automated production. Wide-ranging success of many of these programs has been frustrated by inadequate vocational t r a i n i n g f a c i l  i t i e s , long t r a i n i n g periods, i n a b i l i t y of trainees, and f i n a n c i a l support problems that a r i s e to Impede the pro cess. To be successful, considerable resources are re quired and intensive administration provided over pro- Ib i d . . p. 226, - 46 - longed periods of time. With the a v a i l a b i l i t y of govern ment programs of re t r a i n i n g and placement i t i s l i k e l y that unions and managements w i l l more often r e f r a i n from private e f f o r t s to f a c i l i t a t e employment outside the bargaining u n i t . Advance Planning Time can be a v i t a l component i n adjusting to tech nological changeo Advance planning encompasses the notion of a n t i c i p a t i n g imminent changes and planning f o r t h e i r outcome f a r ahead of any crises developing. Within such a framework advance notice can lead to constructive action and r e s u l t i n the development of a comprehensive adjust ment plan. A.R. Weber points out that: "The possible benefits of advance notice of large- scale displacement associated with technological change are so obvious i t i s surprising to note that they r a r e l y have been incorporated Into labour- management agreements i n the United States. The t y p i c a l advance notice clause requires no more than one week p r i o r n o t i f i c a t i o n of la y - o f f and applies to a l l eases of retrenchment, without any attempt to vary the period of notice with respect to the cause of the displacement." There i s an inherent reluctance by management to agree to advance notice founded mainly on the fears of creating harmful effects on worker morale and productivity. Argu ments have also been voiced against advance notice on the ""•Ibid., p. 207. - 4? - grounds that implementation periods vary widely and undue costs would be imposed on management i n guaranteeing em ployment during t h i s period. Moreover, i t i s suggested that the union may take steps to Impede the desired changes or that mass turnover may result with the loss of key men to other employers. Available evidence has shown that the benefits of advance notice f a r outweigh the costs of granting i t , A study noted by Weber indicates that i n thirty-two firms where extended advance notice of displacement was prov ided, "productivity t y p i c a l l y was maintained at previous l e v e l s , e s p e c i a l l y where the notice was linked to the development of a remedial program," 1 In addition, the provision of substantial severance pay ensured key em ployees stayed on with the firm . Although f a r from prevalent i n bargaining agree ments, advance notice clauses are receiving more attention In recent years. Corporations are being increasingly pressured to develop a s o c i a l conscience and show more concern f o r the Individual. Unions are adding to t h i s pressure by advocating that costs associated with techno l o g i c a l change should properly include the costs of ad vance notice provisions, and are taking t h i s attitude to the bargaining table. Therefore, with some relaxation on Ib i d . , p. 208. - 48 - th e p a r t of management and i n c r e a s e d demands f o r p r i o r n o t i c e from u n i o n s , t h e r e has been an i n c r e a s e d number of c o n t r a c t s c o n t a i n i n g advance n o t i c e p r o v i s i o n s . I n add i t i o n , many employers have p r o v i d e d extended n o t i c e of l a r g e - s c a l e d i s p l a c e m e n t w i t h o u t any c o n t r a c t u a l o b l i g  a t i o n but s t i l l w i t h i n t h e framework of c o l l e c t i v e b a r  g a i n i n g . I n some c a s e s t h i s p r o v i s i o n has been made where a complex s e t of f r i n g e b e n e f i t s and s e n i o r i t y r i g h t s "has i n d u c e d management t o m o d i f y i t s n o t i f i c a t i o n p r o c e d u r e s i n o r d e r t o a d m i n i s t e r p r o p e r l y t h e r e l e v a n t s e c t i o n s o f the c o n t r a c t . " 1 O b v i o u s l y , t o be v e r y e f f e c t i v e , advance n o t i c e of change must be complemented w i t h some form o f p r i o r p l a n  n i n g o r r e s e a r c h , e s p e c i a l l y where t h e change i s of m a j o r p r o p o r t i o n s . One a u t h o r has l i s t e d t he elements o f man power p l a n n i n g a pproach as i n c l u d i n g : ( I ) s t u d y of manpower f l o w s i n c l u d i n g a l l d a t a p e r t i n e n t t o j o b c h a r a c t e r i s t i c s and t r e n d s ; (2) development of f u t u r e f o r e c a s t e d manpower r e q u i r e m e n t s b o t h n e a r and l o n g e r term; (3) d e s i g n of p o l  i c i e s and programs t o cope w i t h problems and t o t a k e a d  vantage of o p p o r t u n i t i e s ; and (4) a d m i n i s t r a t i v e a r r a n g e  ments t o c a r r y on t h e s t u d i e s and c a r r y p o l i c i e s t h r o u g h o t o i m p l e m e n t a t i o n . I b i d . . p. 209. S h u l t z , G.P. 0p_. C i t . , p. 137. - 49 - In forecasting of manpower requirements some authors suggest that manpower planning be carried on as part of the corporate budget, thus being complementary to sales and production forecasts. This process i s obviously not very s c i e n t i f i c . Forecasts must be continually updated f o r a t t r i t i o n , turnover, retirements and the l i k e . En vironmental factors are also bound to vary the target. The advance planning approach has the great advant age of providing f l e x i b i l i t y . Because i t can approach major manpower adjustment problems wel l i n advance of any cri s e s i t can research and solve many of the complex i s s  ues associated with s h i f t s In quantity, q u a l i t y and l o c  a t i o n of employment. I t i s not coincidental then that t h i s approach has been widely adopted i n those Industries where the pace and nature of technological change has posed a severe threat to the s t a b i l i t y of labour-manage ment relations.. Where advance notice and p r i o r planning have been undertaken there i s normally some provision for union p a r t i c i p a t i o n In j o i n t consultation. Here i s where the widely-heralded c o l l e c t i v e bargaining innovation, the jo i n t study committee, has emerged to provide an Informal l i n e of communication during the period of technological conversion. From these Joint planning groups have emerged some creative and constructive solutions to many perplex ing technological problems. - 50 -• Programs of Joint research can develop either with or without a t h i r d party decision-making function. Such t r i p a r t i t e committees can further he public or private as manpower po l i c y becomes more a part of national concern. IV. THE DESIRED MIX In review 9 the response of c o l l e c t i v e bargaining to the threats imposed by the rapid pace of technological change Indicates i t s f l e x i b i l i t y i n developing methods to f a c i l i t a t e worker adjustment. One author views the res ponse as developing i n three stages dependent upon the immediate pressures 1. During the f i r s t stage the unions seek agreements which prohibit l a y - o f f of e x i s t i n g person nel and/or prohibit reduction i n wage rates or at least freeze the manning schedule during the l i f e of the cont ract. Thus, i t i s seen as an e f f o r t to maintain workers i n t h e i r current Jobs at e x i s t i n g l e v e l s of earnings. Gomplementary Issues to create such conditions are ex pounded i n terms of shorter hours, longer vacations, and the l i k e , which share the available Jobs. In addition, e f f o r t s to create the s t a b i l i z a t i o n of earnings are con tained i n issues such as supplementary unemployment bene- ±Barbash, Jack. "The Impact of Technology on Labour-Management Relations". Adjusting to Technological Change. Eds. Somers, G.G., Cushman, E.L. and Weinberg, N. New York: Harper and Row, Publishers, I963, pp. *5-*8. - 51 - f i t s , guaranteed annual wage and revamping of the t r a d i t  i o n a l wage and c l a s s i f i c a t i o n systems. Stage two i s seen as s h i f t i n g the emphasis towards moderating the impact of displacement by contract clauses which acknowledge i n t e r p l a n t , intercompany and interarea transfers. Consequently, stage one strategy i s no longer tenable and the union demands contract changes to widen the s e n i o r i t y unit and provide f o r relocation allowances and t r a i n i n g . In most cases t h i s approach requires ad vance notice i n order that planning can be undertaken. I f the problem becomes elaborate enough then provision f o r j o i n t research and private or public t h i r d party a s s i s t  ance i s advocated. The t h i r d stage—suggested as most s t r i k i n g i n con c e p t i o n — i s based on the p r i n c i p l e that employees have vested rights i n t h e i r jobs; that introduction of labour- saving devices or other changes which displace workers from t h e i r jobs includes an Inherent cost of compensation or f i n a n c i a l settlement. This p r i n c i p l e has been enun ciated i n c o l l e c t i v e bargaining by demands f o r severance pay, dismissal pay, terminal payments or more recently by separation pay provisions that augment the supplementary unemployment benefits. This stage often co-exists with stage two. This series of defences i s interwoven with manage ment s t r i v i n g for the right to manage and the union, i n - 52 - turn, attempting to preserve i t s size and maintain i t s I n s t i t u t i o n by incorporating newly automated Jobs within the e x i s t i n g c o l l e c t i v e bargaining u n i t . The extent to which each c o l l e c t i v e bargaining method or combination of methods i s used, however, i s dependent upon a number of fac t o r s . There i s no f i x e d pattern i n the development of adjustment programs. The impact of technology cannot be viewed separate from work practices, I n d u s t r i a l c o n f l i c t , gain sharing, cost reduc ing and other displacement problems. Indeed, the success or f a i l u r e of any plan depends on the degree of e x i s t i n g unemployment and other pertinent economic and environ mental factors. S t i l l , development of a comprehensive plan i s more often shaped by the pace and degree i n which technological change produces displacement. In a market economy the competitive pressures are harsh and unsenti mental and corporations w i l l be primarily concerned with t h e i r own s u r v i v a l . I f bad practices have crept into an organization or i f major changes present formidable problems I t appears that management most often w i l l choose the buy-out app roach. Thus management w i l l pay out a lump sum In order to obtain the right to restructure the organization as they desire. This management method has been designated as a r a d i c a l approach to the extent that i t seeks to over turn the p r e v a i l i n g structure of work rules and " l o c a l - 53 - practice" clauses i n one concentrated attack. On the other hand, there has been an increased degree of experi mentation of l a t e , and many attempts have been made to t i e a va r i e t y of techniques into a comprehensive plan. Approp r i a t e l y termed the "Fabian" element, t h i s management p o l i c y seeks to achieve the same long-run objectives but chooses a gradual strategy based on collaboration rather than a fr o n t a l a t t a c k 1 . Many authors view the accomplishments pf c o l l e c t i v e bargaining i n facing the challenge of increasing techno logy as quite adequate i n the development of s i g n i f i c a n t worker adjustment programs. That c o l l e c t i v e bargaining has been f l e x i b l e i n stature can be espoused i n the f o l l  owing quote: "What i s loosely c a l l e d c o l l e c t i v e bargaining i s i n practice a highly variable process, shaped by the parties and by the conditions they face. The size of bargaining groups, the subjects covered i n con t r a c t s , the degree of formality i n the process, the use made of outside advisors as partisans or neutrals, the attitudes towards the process, the number of s t r i k e s - a l l these vary greatly from one industry, union and company to another. Varia tions also take plaoe i n in d i v i d u a l cases with the passage of time and with changes i n problems, a t t  itudes, eoonomic events and other factors."" 1 x I b i d 0 , p. 50. 2The Public Interest In National Labour P o l l c y B Committee f o r Economic Development, 1961, c i t e d i n Siegel, A.J. "The Nature and Character of C o l l e c t i v e Bargaining - Its Challenges, T r i a l s , Accomplishments and Failures - In troductory Statement". B r i t i s h Columbia Labour Management  Conference - 1963. p. 52. - 54 - Thus A.J. Siegel suggests that c o l l e c t i v e bargaining on the whole has been underrated i n f l e x i b i l i t y and adaptab i l i t y and views recent accomplishments of the process as in d i c a t i v e of contractual interpretations which have been consistent with the economic framework of the free-enter prise system. Indeed, he believes that: 'V.. .a serious threat to the ef f e c t i v e operation of t h i s private rule-making process has been the i n  creasingly r e s t r i c t i v e and detailed government regulation of the process and the substance of bargaining.... The costs a r i s e because people without an economic stake or a di r e c t knowledge of the enterprise or industry make basic decisions a f f e c t i n g the l i v e s and welfare of those dependent on the enterprise or i n d u s t r y . n l William Simkin, Director of the Federal Mediation and C o n c i l i a t i o n Service, has stated that: " I t i s quite l i k e l y that the future development of the bargaining process l i e s i n the f i e l d of con tinuing consultation and communication through the l i f e of the labour agreement....The more formal aspects of these new devices, labour management committees with a l l t h e i r i n f i n i t e p o t e n t i a l var i a t i o n s , are s t i l l i n t h e i r infancy." 2 Ross supports the view that c o l l e c t i v e bargaining has adjusted quite well to the c o n f l i c t of job e f f i c i e n c y versus security and i s developing p r i n c i p l e s to support i t s claim of being dynamic rather than s t a t i c i n nature. I b i d . , pp. 50 and 53. ^Simkin, William. Address before F i f t h Constitut ional Convention, A.F.L.-C.I.O. New York, November 15, 1963, "Daily Proceedings", pp. 11-12. - 55 - However, he points to the fact that " l i k e i t or decry i t i n d u s t r i a l r e l a t i o n s i s t r i p a r t i t e i n form". At a Confer ence i n 1 9 6 3 Boss suggested that s t r i k e s have withered away as an a l l powerful t o o l because management and labour have grown i n sophis t i c a t i o n and found other techniques to be more conducive to mutual b e n e f i t 1 . This i s not to say there are fewer s t r i k e s . Indeed, i n Canada 1 9 6 6 produced a record loss time i n s t r i k e s . Apparently, however, unions have found p o l i t i c a l action to be a more powerful aid i n enhancing t h e i r p o s i t i o n i n c o l l e c t i v e bargaining. And government manpower p o l i c y indicates that they no longer condone irresponsible acts that are a detriment to society as a whole, but are involving themselves i n the supervision of i n d u s t r i a l relations p o l i c i e s and programs. V, LIMITATIONS OF THE PROCESS To put complete t r u s t i n c o l l e c t i v e bargaining to resolve a l l labour problems i s placing too great an onus on what i s , at best, a l i m i t e d functional e n t i t y . "While i t can be employed to determine the ground-rules according to which declining job opportunities are to be shared i n p a r t i c u l a r settings, i t cannot create new opportunities nor more than a l l e v i a t e the distress of those who are a c t u a l l y Ross, A.M. 0p_o C i t . . p. 2 7 . - 56 - displaced," 1 Goncentration must be devoted to the r e s o l  ution of impediments to progress i n solving the labour i l l s . Three l i m i t a t i o n s that have received the most s t r  ongly worded arguments against the effectiveness of the c o l l e c t i v e bargaining process i n correcting worker d i s  placement are: (1) the small percentage of workers that are unionized i n Canada and the United S t a t e s — l e s s than one-third of the work force; (2) the highly segmented and competitive pattern of c o l l e c t i v e bargaining i n which the overwhelming majority of agreements are between union l o c a l s and i n d i v i d u a l firms or plants; and (3) "the s t i l l prevalent and widespread suspicion and h o s t i l i t y which many employers f e e l towards unions 2. These issues are viewed as s t r i k i n g at the center of any constructive processes to worker adjustment and In the development of o v e r a l l comprehensive p o l i c i e s and pro grams. In the f i r s t case the majority of the work force has no claim to c o l l e c t i v e representation to management. Moreover, f o r those who do, the unit of economic opport unity i s , f o r the most part, too small to be conducive to ± C r i s p o , John H.G. "Summary Report on the Confer ence". 0 j 3 . G i t . , p. 40. 2Jamieson, S.M, "Economic and Technological Change i n the S i x t i e s - Patterns of Response to Change, Discuss ion". Labour-Management Conference on Economic and Tech nological Change i n the S i x t i e s , p. 143. - 57 - creative adjustment programs. And the suspicion manage ment feels towards unions w i l l l i k e l y preclude advance notice of new methods and equipment thus rendering advance planning ineffective„ For those authors who view technology as the curse of c o l l e c t i v e bargaining and as dooming the p l i g h t of the worker i n general there appears to be substantial backing In the above type of l i m i t a t i o n . C l e arly, any f i r m , free of s o c i a l r e s t r i c t i o n s , w i l l act i n a manner only cogniz ant of economic c r i t e r i a and often to the detriment of the rank-and-file worker. But even more obvious i s the fact that most aspects of i n d u s t r i a l r e l a t i o n s have become t r i  p a r t i t e In nature. Thus Dr. W.H. Dymond has stated: "In today's world, i t i s not possible to introduce technological changes which meet the economic ob jectives of the enterprise without regard to pro viding the means f o r s a t i s f a c t o r y adjustment to changes f o r i n d i v i d u a l employees. Otherwise, em ployees on an i n d i v i d u a l basis and through t h e i r unions w i l l r e s i s t changes overtly or subtly,.... A d d i t i o n a l l y public opinion has come to expect large enterprises, i n p a r t i c u l a r , to act with a sense of "social conscience'. I f they do not do so, a lack of conscience may lead to loss of business i n the market place or lead to undesir able reactions from t h e i r point of view from org anized labour and governments.. F a l l i n g an i n d i v i d u a l enterprise's a b i l i t y to provide continuing income and employment i n the l i g h t of the i n d i v i d u a l worker's c a p a b i l i t y f o r his most productive contribution to the economy, national manpower po l i c y must then provide f o r the worker's adjustment to new employment i n - 58 - l i n e w i t h h i s a b i l i t i e s i n t h e o u t s i d e l a b o u r m a r k e t . " 1 To w h a t d e g r e e t h e g o v e r n m e n t a n d s o c i e t y p r e s e r v e t h e s e o b j e c t i v e s r e m a i n s t o b e v e r i f i e d i n t h e f u t u r e . B u t e v e n a t p r e s e n t managemen t d o e s n o t make d e c i s i o n s i n a s o c i a l v a c u u m ; i t m u s t c o n s i d e r l o n g - r u n s o c i a l c o n s e q u e n c e s o f s h o r t - r u n e c o n o m i c a l t e r n a t i v e s . H o w e v e r , t h e a r g u m e n t s d o c h i d e t h e r o s y p i c t u r e p a i n t e d b y c o l l e c t i v e b a r g a i n i n g e n t h u s i a s t s b y s p u r n i n g t h e i r g e n e r a l c l a i m s t o c o n s t r u e t i v e n e s s a n d c r e a t i v e n e s s o f t h e p r o c e s s i n f a c i n g t h e c h a l l e n g e . M a n y o f t h e j o i n t c o m m i t t e e s e s t a b l i s h e d t o e f f e c t w o r k e r a d j u s t m e n t p r o  g r a m s ( t o b e r e v i e w e d i n t h e f o l l o w i n g c h a p t e r ) h a v e e n  c o u n t e r e d f o r m i d a b l e p r o b l e m s a n d t e n d t o w e a k e n i n t h e l o n g r u n b e c a u s e o f t h e I n d i v i d u a l n a t u r e o f t h e p l a n s , i n a d d i t i o n , many o f t h e i n d i v i d u a l r e c o m m e n d a t i o n s c a n be q u e s t i o n e d f r o m a s o c i o - e o o n o m i c p o i n t o f v i e w . F o r e x  a m p l e , i s i t r i g h t t o i n d u c e w o r k e r s i n t o r e t i r e m e n t ? I s I t r i g h t t o c o n t r o l a t t r i t i o n t h r o u g h a p r o c e d u r e w h i c h i s t a n t a m o u n t t o g u a r a n t e e i n g j o b s a n d r e m o v i n g o r g a n i z a t i o n  a l e f f i c i e n c y ? I s i t r i g h t t o r e d u c e t h e h o u r s w o r k e d i n a w e e k w h e n w o r k e r s t h e n p u t i n o v e r t i m e ? I s i t r i g h t f o r members o f a p o w e r f u l u n i o n t o be g r a n t e d p r o v i s i o n s m o r e x D y m o n d , W „ R . " C o - o r d i n a t i o n o f A c t i v e M a n p o w e r P o l i c y i n t h e E n t e r p r i s e w i t h N a t i o n a l M a n p o w e r P o l i c y " . O p . C i t . , p p . 2 a n d 4. - 59 - bountiful than those of smaller unions? This type of issue i s often the center of academic debate. The complexities that have emerged i n the c o l l e c t  ive bargaining process have expanded over time. In deal ing with worker displacement to technological change, the problem reduces to one of helping the i n d i v i d u a l . Corpor ations and other leadership groups can exist and survive economic and technological changes. The Individual i s much more a victim of the consequences. However, i n a t t  empting to provide worker assistance, Individual freedom and r e s p o n s i b i l i t y must not be completely overlooked i n reaching f o r comfort and security. How e f f e c t i v e a response i s created to meet the manpower adjustment challenge depends ultimately on the general economic climate, e s p e c i a l l y on the state of the labour market, and on the good f a i t h and sophistication of unions and managements. Unless c o l l e c t i v e bargaining responds to these challenges governments w i l l be required under the pressure of public opinion to intervene more f o r c e f u l l y . The two issues must be complementary and supplementary, A decision must be made on what can be done by the unions and management and what must be done by the government. As previously mentioned, the three obvious requis i t e s must be a national manpower p o l i c y devoted to f u l l employment, stable prices and free c o l l e c t i v e bargaining. - 60 - An economic framework must "be provided such that c o l l e c t  ive bargaining can be integrated on a national basis and such that the union movement must adapt to established economic objectives. However, even then i t follows that a l l problems of the labour market cannot be solved by c o l l e c t i v e bargaining alone. There are a number of issues that are just too big f o r labour and management to handle 1. In t h i s regard there have been numerous representations to the government to solve the i l l s of the market. In essen ce, however, these representations, In addition to the previous requisites mentioned, c a l l f o r government a i d In creating more f l e x i b i l i t y In the labour market. Consensus has indicated that major programs of re t r a i n i n g f o r the labour market, upgrading the educational attainments of the b l u e - c o l l a r worker i n general, trans f e r r i n g workers with income provided during unemployment, and possibly developing of integrated portable s o c i a l sec u r i t y systems are best handled on the national l e v e l . The costs and benefits of c o l l e c t i v e bargaining are obvious. Where unions and managements have developed r i d l g i t l e s i n the c o l l e c t i v e bargaining process the government i s re quired to treat the o v e r a l l environment by making i t more f l e x i b l e . ^See Chapter I I I , United States Experience Section, p. 74. - 6 l - In sum, therefore, a viable c o l l e c t i v e bargaining approach to worker adjustment requires a sophisticated t r i p a r t i t e rationale: one i n which management provides ad vance notice of impending changes; continuing Joint union- management consultations focussed on solving the problems; barriers to worker mobility are rescinded; and, a dynamic f l e x i b l e market p o l i c y i s provided by the government. In general„ the l i m i t a t i o n s apparent from the pre ceding analysis of c o l l e c t i v e bargaining are also a p p l i c  able to Joint study committees„ This i s not to say that s i g n i f i c a n t r e s u l t s have not already been achieved with t h i s administrative instrument. Indeed, European exper ience with Joint study committees has produced achievement to which a l l reprovers of North American p o l i c i e s emphati c a l l y r e f e r 1 . In the United States and Canada there have been many noteworthy examples that are often paraded at conferences and i n speeches throughout North Amerioa, What Is the reason f o r t h i s difference i n achieve ment? Why have the most highly developed regions i n the world been l a x , reluctant or otherwise unable to obtain the achievements of some sectors of Europe? I t w i l l be useful to examine the experiences of each region i n an attempt to determine the p o t e n t i a l i t i e s of t h i s all-important c o l l e c t  ive bargaining apparatus—the j o i n t study committee. See Chapter I I I , European Experience Section, p. CHAPTER I I I MANPOWER ADJUSTMENT THROUGH JOINT STUDY COMMITTEES I. INTRODUCTION Por the purposes of t h i s report j o i n t study commi ttees w i l l r efer to b i p a r t i t e or t r i p a r t i t e bodies estab l i s h e d to f a c i l i t a t e the development of methods of adjust ment to technological change. T r i p a r t i t e bodies normally add a neutral chairman to the labour management committee for purposes such as d i r e c t i o n , mediation and f a c t - f i n d i n g . Such committees normally grow out of the common r e a l i z a  t i o n by a p a r t i c u l a r union and management that comprehen sive research and planning i s required, v i z , a study of the kind not amenable to the bargaining table. Indeed, the complexities of many i n d u s t r i a l problems demand stud ious co-ordination of the multi-faceted c o l l e c t i v e bar gaining techniques. In non-unionized firms there may be some attempts at j o i n t committees with worker representatives. However, the l i m i t a t i o n s placed on c o l l e c t i v e bargaining presented i n the previous chapter create l i t t l e optimism f o r the effectiveness of such plans. A few corporations may exist where the leaders possess strong s o c i a l consciences, but under the threat of increasing competitive pressures, sur v i v a l of the firm must r i g h t l y p r e v a i l . And i f management - 63 - i s reluctant to provide advance notice i n unionized organ izati o n s (which i s essential to e f f e c t i v e j o i n t study), there i s even less reason to believe d i f f e r e n t of non- unionized firms. The p a r t i c u l a r committee of concern i s one develop ed by labour and management at the enterprise l e v e l to solve an imminent worker displacement problem. Broader labour-management-goyernment committees at the l o c a l , reg ional and national l e v e l are developed to deal with pro blems s i m i l a r to those mentioned above, but of much wider depth, and they c l e a r l y l i e outside the scope of t h i s report. This chapter w i l l deal with the p o t e n t i a l i t i e s and l i m i t a t i o n s of j o i n t study oommlttees as developed at the enterprise l e v e l . Accordingly, I t w i l l be useful to look at the development and experience of j o i n t committees to date; to expose some of the successes and f a i l u r e s ; and investigate some of the reasons f o r them0 The results of such an investigation should provide a framework or set of guiding p r i n c i p l e s within which the case presentations of the next chapter can be examined. I I . JOINT STUDY COMMITTEE APPROACH Joi n t study committees are e s s e n t i a l l y a mature or modern outgrowth of t r a d i t i o n a l labour-management co-oper at i o n ideology. Embodied i n such an ideology i s a common - 64 - and growing awareness of a need f o r exchange and r a t i f i c  a t i on of information between the p a r t i e s . Introduction of technological change at the work place has affected the rights and r e s p o n s i b i l i t i e s of both parties and r a t i f i c  a t i o n i s l i k e l y too complex f o r the vagaries of the bar gaining table alone. J o i n t research, i n v e s t i g a t i o n , assessment and planning combined with the f l e x i b i l i t y a v a ilable outside of c o l l e c t i v e bargaining can lead to an objective analysis of the problems and the concomitant setting of long-range goals that w i l l be of common bene f i t . The use of b i p a r t i t e , t r i p a r t i t e or a l l public bodies i n the above context i s generally an ex-ante mech anism; i t seeks to provide the information transfer before c o l l e c t i v e bargaining negotiations which could r e s u l t i n a s t r i k e . This i s to be contrasted with the voluntary a r b i t r a t i o n board, an ex-post device f o r disposing of c o l l  ective bargaining Issues where no agreement i s imminent. The t r i p a r t i t e study committee i s e s s e n t i a l l y pre-negot- i a t i o n bargaining with complete f l e x i b i l i t y aided by the technical and mediatory services of a neutral t h i r d party. On the other hand, the t r i p a r t i t e a r b i t r a t i o n board i s r e s t r i c t e d to submitted issues and l i m i t e d i n i t s a b i l i t y to explore a l t e r n a t i v e s . Because the issues are binding on the p a r t i e s , contract a r b i t r a t i o n i s u n l i k e l y to re solve the c o n f l i c t ; that i s , less l i k e l y to constructively - 65 - shape the future course of negotiations. The study commi ttee rests on the assumption that "time, expertise and detailed examination are a l l required to deal with pro blems of unusual d i f f i c u l t y and that negotiations and the q u a l i t y of settlements w i l l both be helped greatly i f such issues can be explored w e l l ahead of time, away from the bargaining t a b l e . " 1 In furthering pre-negotiation procedure there i s l i t t l e doubt that t r i p a r t i t e committees are superior to a l l public committees. On the other hand, there has not been enough evidence to suggest that voluntary t r l l a t e r - allsm w i l l work on a large enough scale to gain wide acc eptance. There i s a curious paradox which favours the t r i p a r t i t e approach: "that i t has i t s greatest u t i l i t y i n oases of extremely low accommodation, yet depends heavily and d i r e c t l y upon the l e v e l of accommodation i f i t i s to y i e l d tangible r e s u l t s . " 2 Thus careful study and patient discussion by the mediatory s k i l l s of the neutral can pro duce constructive solutions to vexing problems. Exper ience has shown, however, that solutions to the complex problems of technological change require the mutual con sent and commitment of both parties and, i n the long run, xHildebrand, G„H. "The Use of T r i p a r t i t e Bodies to Supplement C o l l e c t i v e Bargaining". 1961 I.R.R .A. . Spring Meeting. Labor Law Journal. J u l y , I96I, p. 658. 2 I b l d o . p. 660. - 66 - to be successful, a b i l a t e r a l approach i s better i n order to l e t them hammer out t h e i r own solutions. For example, as Dr. Dymond suggests, "The development of j o i n t research, as a method for a r r i v i n g at c o l l e c t i v e bargaining solutions to the job security issues posed by technological change, usually has not come e a s i l y to the parties as a matter of l o g i c a l persuasion. I t has often arisen out of one or other of the following con d i t i o n s . F i r s t , the parties have t r i e d just about everything else, Including a long and disastrous s t r i k e , and have more-or-less 'backed i n t o ' j o i n t research as a solution . Second, there has been a major threat to the continued existence of the company, or of the union, and In t h i s c r i s i s a t  mosphere j o i n t research has developed." 1 Nevertheless, examples of past successes can be found with i n a l l three of the aforementioned frameworks. The underlying assumption of labour-management co operation i n terms of a j o i n t study committee i s the pre dominance of free c o l l e c t i v e bargaining. C l e a r l y , labour- management co-operation cannot be advocated nor expected on a wholesale basis when simple c o l l e c t i v e bargaining s u f f i c e s . The committee approach seeks to strengthen the c o l l e c t i v e bargaining procedure by supplementing, not supplanting i t . There has been an increased r e a l i z a t i o n that the heightened pressures of today's i n d u s t r i a l envir onment i s creating a much heavier burden on t r a d i t i o n a l •^Dymond, W.R. "The Role of Co l l e c t i v e Bargaining Research and S t a t i s t i c s i n I n d u s t r i a l Relations - Intro ductory Statement". B r i t i s h Columbia Labour Management  Conference - 1963. p. 114. - 6 7 - c o l l e c t i v e bargaining. Moreover, there Is a spreading be l i e f i n some areas that "the bargaining system i s produc ing many economically unsound settlements that are now a rea l threat to the s t a b i l i t y of the country i n the d i f f i  c u l t s i x t i e s . " 1 Indeed i t has been suggested that c o l l  ective bargaining i s today facing a c r i s i s and that only through such "creative" c o l l e c t i v e bargaining approaches as found i n j o i n t study committees can i t survive and be ef f e c t i v e . The r e a l i s t i c l e v e l of labour-management co-oper at i o n i s seen to l i e i n a continuum, somewhere between information sharing and co-determination 2. Whereas i n  formation sharing i s not s t r i c t l y a form of co-operation I t may have value i n helping to foster co-operative a t t  itudes towards problems, including those which a r i s e at the bargaining table. In contrast, co-determination, a form of co-operation found mainly In sectors of Europe, provides for p a r t i c i p a t i o n of unions i n the decision making process of the organization. J o i n t study committ ees f a l l within t h i s continuum to the extent that they seek agreement as t h e i r objective; although not a re quirement on a l l issues. Accordingly, there i s a need to ^Hildebrand, G.H. 0p_. C i t . . p. 656. 2Wood, W.D. The Current State of Labour-Management  Co-operation i n Canada„ I n d u s t r i a l Relations Centre* Queen's University: Kingston, Ontario, 1964, p. 3» - 68 - determine which areas are amenable to co-operation and which are better maintained as healthy and constructive differences f o r c o l l e c t i v e bargaining, or otherwise f o r inevitable c o n f l i c t , I I I , EUROPEAN EXPERIENCE1 Although European hi s t o r y of labour-management co operation dates back to the nineteenth century, the more s i g n i f i c a n t and widely known developments have come about since the end of the Second World War, The successful re covery of European countries i n post-war years has been la r g e l y a t t r i b u t e d to a high degree of labour-management co-operation. Indeed, the European i n d u s t r i a l relations scene has been under constant scrutiny i n recent years by countries attempting to d u p l i c a t e — o r otherwise understand the reason f o r — i t s successes. I t must be remembered, however, that the North American system has two d i s t i n c t underlying assumptions In I t s approach to I n d u s t r i a l re l a t i o n s : the f i r s t i s a predominance of free c o l l e c t i v e bargaining as a method f o r resolving c o n f l i c t ; the second i s mutual interest as an area of common benefit to both p a r t i e s . Therefore, In appraising the European scene the North American observer should only attempt to extract Montague, J,T. "Economic and S o c i a l Character i s t i c s of European Labour-Management Co-operation", (un published paper), 1961. - 69 - c h a r a c t e r i s t i c s of mutual interest that can be f i t t e d into the l a t t e r 1 s i n d u s t r i a l r e l a t i o n s system. In general, j o i n t committees are accepted as the rule rather than the exception i n European industry. This i s i n sharp contrast to Canadian and United States indust r i a l p o l i c y . B a s i c a l l y the difference arises from the connection between i n d u s t r i a l r e l a t i o n s and the law. The North American system r e l i e s fundamentally on the c o l l e c t  ive bargaining agreement and uses l e g i s l a t i o n only f o r establishing minimum requirements. The European system, on the other hand, downgrades the c o l l e c t i v e bargaining agreement i n favour of l e g i s l a t i o n . The laws may have o r i g i n a l l y grown out of c o l l e c t i v e bargaining but the s i g n i f i c a n t difference i s that the f o c a l point of bargain ing i s raised to the industry or area l e v e l rather than the plant l e v e l as i s common i n North America, From the European l e g a l framework has emerged an integrated and a l l encompassing labour-management network that i s f a r more sophisticated and impressive than the North American approach. The e s s e n t i a l oonsequenoe of such a framework i n Europe i s that Joint committees are favoured both by the parties and by government. In general these committees have l i m i t e d representation at the plant l e v e l except f o r such c l e a r l y marked areas as welfare and i n t e r n a l condit ions. Broad issues of c o n f l i c t between labour and - 70 - management are maintained at the higher l e v e l of d i s  cus s i ono I t Is i n the area of developing j o i n t control by- consultation that most notice appears to have been taken of the European approach. However, t h i s arises out of a need f o r defence against the power of employers which i n Canada i s increasingly provided by labour r e l a t i o n s l e g  isl a t i o n , , C l e a rly co-determination i s not acceptable i n Canadian I n d u s t r i a l r e l a t i o n s , although i t has been sugg ested as an area In which j o i n t labour-management e f f o r t s could do most to advance the competitive conditions of the i n d i v i d u a l -enterprise. One fundamental difference between the North Amer ican and European system that i s of major concern to t h i s report arises i n the high degree of voluntary negotiation. In the European system i t has been recognized that manage ment changes, introduction of technological change and other factors of concern to the employees are f r e e l y communicated. Thus a works council or committee i s con sulted or i s provided with free representation to manage ment on issues regarding technological change. The over r i d i n g fact remains, however, that European I n d u s t r i a l relations i s established within a l e g a l network that i s non-existent i n Canada. Sweden, for example, i s characterized by a system of i n d u s t r i a l r e l a t i o n s comprising—among others—the - 71 - following: "Rational, centralised, 'pyramidal' structure of both trade unions and employers' organisations, demanding high q u a l i t y leadership at a l l l e v e l s , , , . A Basic Agreement s t i p u l a t i n g a procedure f o r neg o t i a t i o n , a number of ' h o s t i l e ' acts that are forbidden, the treatment of disputes that may endanger the public i n t e r e s t , and the procedure to be followed i n laying off and dismissing workers,,,,A permanent body (the Labour Market Committee) f o r the discussion of major i s s u e s , " 1 Whether or not the European approach has p o l i c i e s and programs that may be suitable to North American In d u s t r i a l relations Is not e n t i r e l y c lear and i s necessar i l y beyond the scope of t h i s report. Suffice i t here to say that European and North American i n d u s t r i a l relations have c l e a r l y emerged into d i f f e r e n t labour-management frameworks and further study i s required to establish any conclusions amenable to adjustment processes i n Canada, IV, UNITED STATES EXPERIENCE United States experience with j o i n t study committ ees i s somewhat piecemeal as was indicated i n the previous chapter dealing with l i m i t a t i o n s of c o l l e c t i v e bargaining. The plans that have emerged over the past decade have been subjected to severe scrutiny and almost monotonous expos i t i o n . However, these plans do hold great promise f o r the Cooper, Jack, I n d u s t r i a l Relations: Sweden Shows the Way, Fabian Research Series 235. London: Devonport Press Ltd, (T,U,)„ 19°3» PP» 28-29, - 72 - future of the committee approach to worker adjustment and they perhaps gain least praise from those who t r y to com pare the d i s t i n c t l y d i f f e r e n t bargaining process of Europe with the United States. Indeed, some authors have sugg ested that the committee approach—called creative bar g a i n i n g — I s the only viable method of c o l l e c t i v e bargain ing i n North America^. Proponents advocate that u n t i l t h i s approach receives widespread acceptance c o l l e c t i v e bargaining w i l l r e t a i n the disfavour and unimaginative association that society accords i t today. Although Canadian h i s t o r i c a l development and s o c i a l and economic environment are somewhat di f f e r e n t than the United States, the conclusions of t h e i r experience can be us e f u l l y investigated with attendant caution. Obviously there i s a need f o r objective appraisal of each s i t u a t i o n i n i t s own context. But t h i s does not preclude the i n  vestigation and adoption of some form of these f l e x i b l e solutions to problems emerging out of Canadian worker d i s  placement. Many of these cases have resulted from un tenable i n t e r n a l pressure and p u b l i c l y expressed d i s s a t i s  f a c t i o n that saw labour-management relationships taken apart and r e b u i l t . And even i f some of the solutions adopted were unsuccessful, the important lesson of the xMcLaughlln, B..P. See Labor Law Journal. August, 1964, p. 518. - 73 - exercise Is the willingness to experiment through con st r u c t i v e negotiation,, The environmental conditions of the times have been mentioned as influencing the type of program found most appealing 1,, The f i v e plans most often applauded—Armour and Co., American Motors, Basic S t e e l , Westcoast Long shore and Kaiser S t e e l , and t h e i r attendant u n i o n s — a l l developed within twenty-five months of each other. There fore, i t i s reasoned that problems of technology can be manageable i f the atmosphere i s made conducive; that i s , workers w i l l be retrained and relocated i f other jobs are av a i l a b l e , severance payments w i l l be acceptable i f workers are not unemployed too long and distressed areas w i l l be redeveloped i f there are not too many. The plans that have emerged from j o i n t study commi ttees i n the United States can change the bargaining pro cess and/or e f f e c t a change i n the bargaining Institution,, Each plan changes the past bargaining context to some de gree „ For example, Armour and Co. and the Westcoast Long shore plans merely removed the impediments from bargaining that had created untenable and sometimes explosive con d i t i o n s , whereas Basic Steel changed the atmosphere of xMontague, J o T 0 "Recent American Developments and Experiments In Labour-Management Relations". Economic Council of Canada, National Conference on Labour-Manage ment Relations, Ottawa, November 9~10, 1964, p. 11. - 74 - negotiations completely by introducing continuous consul t a t i o n . Armour and Co. undertook a j o i n t study plan so pro digious i n i t s scope that i t s very s i z e led to i t s event ual downfall. The company set up a fund and attempted to r e t r a i n and relocate a l l the displaced workers from closed plants. The company closed twenty plants, opened eight, and cut i t s force of production workers i n half over a period of f i f t e e n years. This lesson has l e d many to the b e l i e f that long-term commitments of t h i s sort necessarily favour government a i d . The type or pace of technological change can a f f e c t the plan structure. Por example, the American Motors case Involved continual introduction of new methods and cost- reducing devices. The r e s u l t i n g plan reduced worker re sistance by Introducing a gain-sharing plan. On the other hand, the Basic Steel and Westcoast Longshore industries are c h a r a c t e r i s t i c of episodic change which introduces more of a c r i s i s s i t u a t i o n , i n contrast to the former case i n which change i s expected. The implications of change are less e a s i l y forecast and healthy bargaining processes are required to f e r r e t out alternates and develop solutions to the problems .- The Basic Steel industry has had a long history of labour-management co-operation and with the f l e x i b i l i t y they exhibited i n approaching t h e i r problems were able to - 75 - establish complex c o l l e c t i v e agreements to mutual s a t i s  f a c t i o n o In contrast, the Westcoast Longshore industry- has had a long history of b i t t e r r i v a l r y , but had reached the common po s i t i o n of acknowledging the heed f o r updating of methods. As a resu l t a huge fund was e s t a b l i s h e d — a buy-out approach—to enable the union to protect t h e i r workers i n exchange f o r management's right to introduce changes. The use of a t h i r d party was f a r from consistent In these cases. An uninvited t h i r d party was never i n  cluded and i n the Kaiser plan, where mediation was desir ed, the parties were chosen s p e c i f i c a l l y , thus s e t t i n g the boundaries on t h e i r participation,, Such mediators, where used, were normally men of extensive background who were trusted by both sides to render f a i r treatment. However, some c r i t i c i s m has been l e v e l l e d against the use of a t h i r d party due to the deorease i n commitment that may resu l t from the interested p a r t i e s 1 . This view suggests that extensive s e l f - a p p r a i s a l i s required by each party to reach e f f e c t i v e , l a s t i n g solutions. The success of the plans i s also a t t r i b u t e d to a degree to the type of individuals involved. Thus the personalities and determination of some of the leaders was seen to have had considerable effect on the development of I b i d . , p. 52. - 76 - a successful plan. In addition, the t r a d i t i o n a l b e l i e f of a need of c r i s i s or pressure on each side to a r r i v e at a solution was questioned. The fact I s , from an a n a l y t i c a l point of view, the parties take a problem out of the pressures of the bargaining table but then develop a pro cedure to reintroduce i t back into the same type of press ures. The essential element i s a b e l i e f that a l l problems of the kind found untenable In bargaining should be re moved, restructured and reintroduced; the free c o l l e c t i v e bargaining approach i s enhanced due to a eommon interest vested i n the new approach. I t i s c l e a r l y Impossible to completely investigate a l l the ramifications of these plans i n t h i s report. Con clusions drawn from these and other plans are included In a summary framework presented at the end of t h i s chapter. Each plan has so many d i v e r s i t i e s that i t can obviously be concluded that no plan per se w i l l be adequate to cover another s i t u a t i o n . Conditions are just too variable. However, from the above type of discussion i t can be seen that United States experience has developed some note worthy examples of sophistication i n labour-management co-operation. Technological change has not presented too vexing and complex a challenge f o r those f l e x i b l e enough to adapt and experiment c r e a t i v e l y and constructively. - 77 - V. CANADIAN EXPERIENCE For the most part, j o i n t study committees i n Canada have had government support as f a r hack as 1919* At that time a Royal Commission on I n d u s t r i a l Relations observed that "there i s an urgent necessity f o r greater co-operat ion between employer and employed,,"1 From the 1920*s to the l a t e 195©'s developments i n labour-management co-oper a t i o n were pr i m a r i l y at the plant l e v e l . The main con clusion that can be drawn from the various Canadian exper iments i n labour-management co-operation over the years i s that they have been sporadic, that they have not been carri e d out on a broad front and that they have had l i t t l e o v e r a l l co-ordination or sense of purpose 2. In essence, the strong beginning of labour-manage ment co-operation began as a war e f f o r t against a back ground of war production needs and a s p i r i t of patriotism. The f i r s t formal government support f o r sponsoring labour management production committees came on January 18, 1944 when P.C. 162 was passed establishing the I n d u s t r i a l Pro duction Co-operation Board. Following the war t h i s work was transferred to the Labour-Management Co-operation Ser vice of the Department of Labour. At about the same time Cited i n Wood, W.D. 0j>. C i t . , p. 10. :Wood, W.D. Op.. C i t . , p. 38. - 78 - i n the United States, however, the government withdrew i t s support of production committees and they soon disappeared. In advancing the concept of co-operation i n Canada during and since the war, three d i s t i n c t phases have devel oped, each of which has stressed a d i f f e r e n t objective f o r co-operation. During the early period emphasis was on the war e f f o r t . In the period following the war the emphasis changed to the urgency of producing to meet post-war short ages and to re-establish foreign markets. The t h i r d phase dates from early 1955 when a broader but more diff u s e set of objectives were formulated. Committees were seen to be of value i n discussing a wide variety of subjects i n add i t i o n to or i n place of production, such as safety, house keeping and other areas of mutual interest to the parties which would increase harmony i n the work place. In general, such committees have not l e f t a marked impact on Canadian I n d u s t r i a l r e l a t i o n s . "This i s p a r t l y the r e s u l t of t h e i r narrow terms of reference which pre clude them from discussing subjects within the area of c o l l e c t i v e bargaining and thus from coming to grips with some of the major problems at the plant l e v e l . " 1 By 1964 the number of committees increased from 300 at the end of the war to more than 1,800. During the same period, how ever, the number of workers represented only increased I b i d . . p. 39. - 79 = from 300,000 to 500,000. This trend Is seen to be r e s u l t  ing i n more committees being established i n smaller plants. Indeed, i n 1964 over f i f t y per cent of the t o t a l were committees covering fewer than one hundred employees 1. The approach to forming j o i n t committees was through the use of f i e l d men trained i n the rationale of the Lab our-Management Co-operation Service. The paraphernalia of the f i e l d men comprised a package deal s e t t i n g out the objectives and the essential organizational characterist ic s of the committees. The promotional materials issued by the branch included a monthly b u l l e t i n , "Team Work i n Industry", monthly posters, and a series of discussion sheets c a l l e d "Let's Discuss". These materials are pro vided i n an attempt to create interest i n j o i n t committees i n industry and i n general have received favourable re marks from industry and unions. Although t h i s Investigation i s by no means attemp t i n g to evaluate the role of the Labour-Management Co operation Service, i t may be useful to discuss a few basic p r i n c i p l e s that have been prevalent throughout the l i t e r  ature presented. That i s , j o i n t study committees must have some c l e a r l y v i s i b l e objective or purpose; they have come to be accepted as supplementing c o l l e c t i v e bargaining, not replacing i t ; and they must f i t i n with the confines I b i d . . p. 16 - 8 0 - of government l e g i s l a t i o n . J o i n t study committees are a means not an end i n themselves 1. During the war years a r e a d i l y available objective was provided f o r labour and management i n t h e i r j o i n t committees. They took place, however, at a time when management-union relations were just beginning or not f a r advanced. This resulted i n j o i n t committees being advoc ated outside of the main pattern of c o l l e c t i v e bargaining relationships. Hence the emphasis was on a labour-manage ment production committee which was an end i n i t s e l f and an independent vehicle i n most plants f o r labour-manage ment communication. By the time the Labour-Management Co-operation Ser vice got into operation, c o l l e c t i v e bargaining was a granted right and unions were making considerable progress i n developing c o l l e c t i v e bargaining relationships. Con sequently, during the post-war decade, with the loss of a c l e a r l y defined objective and with an available l i n e of communication provided i n the union-management mechanism, the Labour-Management Co-operation Service became somewhat of an unwarranted e n t i t y . The emphasis was s h i f t e d i n 1 9 5 5 to the support of j o i n t union-management committees discussing anything out side the f i e l d of c o l l e c t i v e bargaining. This rationale 1 l b i d . . , p. 3 5 . - 8 1 • - grew out of the fundamental concept of providing an organ ized and regular channel of communication between labour and management apart from the established bargaining channels. Here again the major problem l i e s i n the lack of any c l e a r l y defined objective f o r the parties to pursue. Throughout the administrative, p u b l i c i t y and personnel phases of the operation the problem has been that of a lack of an explainable philosophy. F i n a l l y , the main problem facing the Labour-Manage ment Go-operation Service has been the d i f f i c u l t y of developing national campaigns or national support f or t h e i r work. Labour l e g i s l a t i o n i n Canada i s designed to f a c i l i t a t e labour and management i n finding solutions to t h e i r own problems. In addition, promotion of labour- management co-operation has been a c t i v e l y carried out by p r o v i n c i a l j u r i s d i c t i o n not only by implication but by means of active p a r t i c i p a t i o n . National support f o r the Service under these circumstances has not r e a l l y been p r a c t i c a l . In the l a t e f i f t i e s and early s i x t i e s a renewed interest emerged i n labour-management co-operation, grow ing out of a deterioration of the economic s i t u a t i o n i n 1 9 5 6 - 5 7 and an increasing awareness of new problems to be solved. Most of the emphasis of t h i s concern, however, was developed at the national and regional l e v e l s . Suffice i t i n t h i s report to say that the new provisions, most - 82 - notably through the Economic Council of Canada, introduce "a mechanism f o r Joint co-operation on the broader quest ions of the Canadian economy and, f o r the f i r s t time, provides a framework to give a sense of d i r e c t i o n and pur pose to co-operation at lower l e v e l s of the economy."x The discussion i n previous sections has indicated the increasing number of forward-looking creative c o l l e c t  ive agreements which have focussed on the solutions to manpower adjustment problems which technological change poses. In Canada the government has added the problems associated with technological change to t h e i r previous e f f o r t s i n promotion of j o i n t labour-management co-oper a t i o n . Thus they have become concerned with the c o l l e c t  ive bargaining process not only to the extent that negot iati o n s continue on u n t i l settlement, but more recently with the methods of manpower adjustments, and the means of f a c i l i t a t i n g economic adjustments through c o l l e c t i v e bar gaining. In t h i s regard, "The Department of Labour, through i t s Economics and Research Branch, has undertaken a very consid erable research program since 1957 on the manpower implications of technological change....This re search has been assisted by an Advisory Committee on Technological Change, composed of experts from management, labour, government and u n i v e r s i t i e s . . . . E f f o r t s are being made by government to make the I b i d . . p. 40 - 83 - parties [management arid labour] aware of t h e i r r e s p o n s i b i l i t i e s , to bring them together on a con s u l t a t i v e basis and to a i r problems, to encourage permanent j o i n t discussions of problems away from the bargaining table, as w e l l as to encourage more basio research by the p a r t i e s , by govern ments and by u n i v e r s i t i e s . " 1 In addition, the Department of Labour has held a number of regional labour-management conferences on j o i n t consultative committees. The National Productivity Coun c i l also held high-level conferences of management and labour to encourage a new atmosphere of more meaningful communication between labour, management and government. And the successor Economic Council of Canada held several high-level labour-management conferences to discuss the development of co-operation In the context of promoting economic growth. The emphasis i n a l l of these a c t i v i t i e s i s encour agement by government f o r labour and management to f i n d t h e i r own solutions to new and emerging problems, rather than to create the need f o r government intervention. This i s the stream of events ultimately leading up to the establishment by the federal Department of Labour of the Manpower Consultative Service i n mid-1964. I t would appear that the Canadian government has found both -•-Dymond, W.R. "The Manpower Consultative Service of the Canadian Department of Labour". Talk to the Union Research Conference, Queen's University, Kingston, Ontario, May 12, 1964, pp. 1 and 15. - 84 - a c l e a r l y v i s i b l e objective f o r labour-management co-oper ati o n and one that can "supplement rather than supplant" c o l l e c t i v e bargaining. The purpose of t h i s section i s to show.the hi s t o r y of the Canadian i n d u s t r i a l ; scene from which the Manpower Consultative Service has emerged. F u l f i l l i n g t h i s purpose should establish the background f o r an analysis: of govern ment sponsored j o i n t study committees to be presented i n the next chapter. The essential points to carry forward i n examining the Canadian approach are the reasons f o r past successes and f a i l u r e s i n Canadian attempts at lab our-management co-operation, and the essential character i s t i c s of successful j o i n t study committees i n general. VI. SUMMARY AND CONCLUSIONS The j o i n t study committee approach to solving pro blems of manpower adjustment to change has received i n  creasing support i n the Canadian I n d u s t r i a l relations scene as being the most viable method of approaching the complexities of worker displacement problems. I t i s also an approach that most r e a d i l y adapts to the ideals of free c o l l e c t i v e bargaining and free enterprise. However, t h i s approach i s s t i l l In i t s Infancy i n many respects and re quires special precautions to ensure i t s success. I t also requires a mature and sophisticated labour-management re l a t i o n s h i p . Where such accommodation i s hot s u f f i c i e n t - 85 - success can sometimes be accomplished through the mediat ory s k i l l s of a t h i r d party. This chapter has investigated the p o t e n t i a l i t i e s and l i m i t a t i o n s of the j o i n t study committee approach to manpower adjustment problems. Before proceeding with an analysis of the Manpower Consultative Service approach i t w i l l be useful to summarize the many ramifications of t h i s planning technique that have emerged from past experience. Although the following l i s t may be incomplete, i t has nevertheless summarized most of the conclusions drawn from the works of many authors 1. 1. Committee Participants (a) Study committees must have firm support of top o f f i c i a l s of labour and management. (b) A l l others below top o f f i c i a l s should be en couraged and convinced that the approach w i l l work. (c) Apparently the question of who should serve on the committees w i l l have to be decided to f i t the s i t u a t i o n . European experience suggests they be aside from bargaining. Amer ican studies, f o r the most part, suggest pro blems must be studied and receive commitment from those involved at the bargaining table. ^Healy, James J . , Ed. Creative C o l l e c t i v e Bargain ing, Meeting Today's Challenges to Labour-Management Rela t i o n s . Englewood C l i f f s , N.J.: Prentice-Hall, Inc., 1 9 6 5 . Hildebrand, G.H. 0p_. C i t . Killingsworth, Charles C. "Co-operative Approaches to Problems of Technological Change". Adjusting to Techno l o g i c a l Change. Montague, J.T. "Recent American Developments and Experiments i n Labour-Management Relations". Op_. C i t . Wood, W.D. Op. C i t . - 8 6 - A recent Canadian case suggests committees should not include regular negotiators 1. (d) How personnel are organized into a j o i n t committee i s not v i t a l ; f i n d the form best suited to con d i t i o n s , resources and tasks. (e) There are many situations where neutrals may be he l p f u l . However, the effectiveness of t h i r d parties w i l l be determined by the progress made by the other two pa r t i e s . (f) P a r t i c i p a t i o n of the government can be used to advantage; and i n some cases i s necessary to re present the public i n t e r e s t . 2. Attitudes of Participants (a) Continuous consultation requires that day-to-day contact be a determined e f f o r t towards good re l a t i o n s . (b) E s s e n t i a l l y , b i l a t e r a l study committees require a willingness to co-operate, and a recognition that there are mutual benefits to be gained from so doing. There i s an increasing need to app roach problems with a view to reaching agree ment; determining what i s r i g h t , not who i s r i g h t . (c) Technological change often creates strong press ures f o r the modification of ex i s t i n g labour- management r e l a t i o n s . Creative bargaining must be recognized as being based on democratic a t t  itudes by both labour and management. I t i s neither c o l l u s i o n nor s o c i a l reform. (d) Attitudes of leaders i n committees are of utmost Importance; they must be courageous and respon s i b l e ; they must substitute r a t i o n a l i t y f o r power i n recognizing mutual i n t e r e s t s ; and they must exhibit determination and willingness to overcome impasses. (e) I f the plan i s one that necessarily Involves co operation from lower echelons then maximum e f f o r t Dion, G. "The Experience of a Joint Research Commission i n a Case of I n d u s t r i a l Conversion (Domtar, Windsor, Quebec 1 9 6 5 ) " . 0_p_. C i t . , p. 5 8 5 . - 87 - i s required to keep them informed and to educate them on the plan so that any unsatisfactory a t t  itudes are removed; co-operation can he created b y continual information exchange and communi cation. Ground Rules f o r Committees A fundamental assumption must be that techno l o g i c a l change Involves human d i s l o c a t i o n , and attendant provisions f o r adjustment must be i n  cluded as one of i t s costs. Moreover, increased productivity from new innovations should be sharedo Comprehensive plans developed through b i p a r t i t e or t r i p a r t i t e committees should be formulated f o r reintroductipn Into the normal c o l l e c t i v e bargaining channels. They should be established with the Idea that the issue i s not amenable to c o l l e c t i v e bargaining i n i t s current form. A necessary condition f o r co-operation—and con sequently s a t i s f a c t o r y j o i n t committees—is security f o r both labour and management; f o r labour, security that co-operation w i l l not re s u l t i n weakening of the union i n s t i t u t i o n i n the c o l l e c t i v e bargaining process and, f o r management, security that co-operation w i l l not involve undue r e s t r i c t i o n s on the enterprise system or infringement on management r i g h t s . The atmosphere should be creative and construc t i v e and lead to free enchange of ideas and proposals; i n early stages especlallyj, f a c t  f i n d i n g should just lead to recommendations. A well defined set of objectives or s p e c i f i c goals should be formulated to remove any poss i b l e suspicion i n l a t e r proposals. A j o i n t committee should be a means not an end i n i t  s e l f . However, no idea can be too ri d i c u l o u s to consider. Joint formulation of recommend ations may lead to ultimate agreement but com plete proposal should be viewed beforehand such that review Is made possible. Provision f o r f l e x i b i l i t y should be made9 i n  volving continuous consultation without dead l i n e s , and sub-committees f o r f a c t - f i n d i n g to re l i e v e time l i m i t a t i o n s on top o f f i c i a l s . - 88 - (g) P u b l i c i t y should be omitted i n early stages to prevent adverse pressure on the group from un warranted expectations and harrassment from outsiders. However, i f program involves com plete co-operation from rank-and-file then they must be kept wel l informed of developments. (h) Modifications of United States plans to Cana dian situations would necessarily require changes to cope with differences i n industry s i z e , the h i s t o r y of labour-management r e l a t  ionship, and i n labour law. Use of Neutrals (a) The mediatory s k i l l s of neutrals are seen as a way out of an impasse created by low accommo dation of the p a r t i e s . But third-party deci sion making does not remove c o n f l i c t and the . parties can remain frustrated. The attitudes of the parties can only improve i f they work to gether i n constructively attacking problems and hammering out agreements. (b) A t h i r d party can also provide technical a i d i n such forms as furnishing new ideas, new approa ches, f a c t - f i n d i n g , sorting out and i d e n t i f y i n g pertinent data, and further helping to promote the continuation of j o i n t study by mediating and advising when the parties become stalemated. (c) A neutral party may be necessary to represent the interests of the public; require the parties to research deeper certain aspects of a problem; and, i n the f i n a l analysis, act as a "face- saver" f o r compromises that are necessary but p o l i t i c a l l y d i f f i c u l t to explain. (d) A neutral must have the respect and confidence of the p a r t i e s ; a thorough understanding of the c o l l e c t i v e bargaining process 9 labour, and i n  d u s t r i a l r e l a t i o n s ; the a b i l i t y to mediate and otherwise serve as the parties request; and, the willingness to back out when the time i s right to put more onus on the p a r t i e s . (e) The role of the government as a neutral Is seen to be more than moral suasion before dispute; i t Is becoming a service agent and a d v i s o r — a f a c t - f i n d e r but not a policeman. Care must be taken to ensure that government neutrals do not become permanent crutches. - 89 - 5o Basic Conditions f o r Success (a) _; Forward planning increases the chance of success and continuous consultation resu l t s i n more creative and constructive development of a l t e r  natives . Research s t a f f s on both sides can be of considerable advantage i n providing t h i s continuous consultation and planning. (b) Study groups should not be an outlet f o r sweeping issues under the rug. Success i s meaningless where facts have already been developed and resolution necessarily depends on bargaining. (c) The underlying f a c t o r i n much of the c o n f l i c t generated between management and labour i s the lack of knowledge about mutual goals and pro blems. Solutions and f i n a l plans may not be approved i f proper communication has not been maintained. (d) Success over time i s viewed as e v o l v i n g — c o n t i n  uous search f o r agreement has been shown from experience to r e s u l t i n long-run successes i n achieving i t . (e) Success cannot be emulated. Plans must be tailor-made to p a r t i c u l a r situations and not t r i e d because they worked f o r others. (f) A basic requirement l i e s i n a favourable national climate f o r solving problems, one In which govern ment economic and s o c i a l p o l i o i e s and l e g i s l a t i o n are appropriate and adequate. I t Is d i f f i c u l t to get broad-based support f o r co-operation unless there i s evidence that f u l l employment i s a con tinuing government objective, and unless'there are appropriate public p o l i c i e s to ease the im pact of unemployment and displacement when they do occur. (g) R e a l i s t i c co-operation w i l l not develop by i t s e l f but needs appropriate mechanism from a l l l e v e l s of society. Economic councils on national and regional l e v e l s , communication of facts and p o l  i c i e s down to plant l e v e l s , development of i n  dustry and union research and p o l i c y groups, and education programs designed to promote understand ing on a l l l e v e l s are some of the mechanisms re quired. (The Manpower Consultative Service has been provided as a mechanism to f a c i l i t a t e the plant l e v e l need). - 90 - In sum, the findings of many authors who have anal yzed United States contracts and plans conclude that there Is s u f f i c i e n t proof to assume that creative bargaining w i l l successfully meet the challenge of changing conditions and i t s emergent problems. The primary requ i s i t e must be acknowledgment of the deeply rooted t r a d i t i o n held inexorably by both managements and unions that bargaining i s a method by which each side pursues i t s interests to the l i m i t constrained only by the Law. However, t r a d i t i o n a l c o l l e c t i v e bargaining must take place i n a f a r more d i f f i c u l t environment than ever before. Therefore, creative bargaining with i t s use of Joint study committees i s the most obvious alternate to conventional practice and one that i s most compatible with the volunt ary system. With the knowledge that free c o l l e c t i v e bar gaining and the right to s t r i k e i s a v a i l a b l e , the Joint study committee approach acts as a cathartic influence to ensure that peaceful and r a t i o n a l means have f i r s t been exhausted before the less desirable methods are Invoked i n attempting to gain settlement. CHAPTER IV MANPOWER ADJUSTMENT THROUGH GOVERNMENT SPONSORED JOINT STUDY COMMITTEES I. INTRODUCTION The Manpower Consultative Service has been i n s t r u  mental i n the development of j o i n t study committees est ablished to solve the problems associated with techno l o g i c a l change i n many enterprises across Canada. Recog ni z i n g that the emergence of j o i n t study committees has been touted as the most r e a l i s t i c approach to dealing with the complexities and impasses that may develop i n t r a d i t i o n a l c o l l e c t i v e bargaining with introduction of technological change, the natural progression to a r r i v i n g at answers to the purposes of t h i s report l i e s i n analy zing these cases to determine i f they are compatible with the framework as hereinbefore presented. Before such a case analysis can be of value, how ever, i t i s necessary to understand the sphere i n which the Manpower Consultative Service operates. Therefore, t h i s chapter proposes to present the rationale of an act ive national manpower p o l i c y within which the Manpower Consultative Service functions; state the p r i n c i p l e s under which the Service operates; indicate the method of approach used by the Service; and f i n a l l y , present selected cases that are s u f f i c i e n t l y completed to permit examination. - 92 - I I . THE BASIC RATIONALE OF AN ACTIVE CANADIAN MANPOWER POLICY Canadian manpower p o l i c y has been hereinbefore b r i e f l y outlined and t h i s p o l i c y can be recalled from comments stated e a r l i e r by Labour Minister MacEachen and Dr. Dymond1. This p o l i c y Is further elaborated by Dr. Crispo where he suggested i n 1964: "But except i n very rare cases there are d i s t i n c t l i m i t a t i o n s to the contribution which c o l l e c t i v e bargaining can make i n t h i s f i e l d [adjustment problems] without having undesirable side e f f e c t s . . . . Assuming f u l l employment can be maintained, the challenge i s to keep a country's labour force abreast of the needs of the day In terms of It s education and training....there Is need f o r more alternatives i n the sehool system, the need f o r specialized programmes to deal with the problems of p a r t i c u l a r groups at the adult l e v e l , the need f o r proper vocational counselling services, and the need f o r a r e v i t a l i z e d public employment service. Above a l l there w i l l probably have to be a centralized manpower agency f o r p o l i c y co ordination and administration. These are some of the essential ingredients of what the O.E.C.D. has termed 'an active manpower p o l i c y ' . " ^ In I965 at the B r i t i s h Columbia Conference he dev eloped t h i s concept further by stat i n g that beyond f u l l employment, "...we require an active labour market p o l i c y which employs a f u l l range of educational and See Chapter I, Canadian Manpower P o l i c y Section, p. 10. 2 C r i s p o 9 John H.G. "Summary Report on the Confer ence". Op. Cit.<, p. 51. - 93 - t r a i n i n g measures, mobility incentives and related devices to complement and supplement the i n t e r  a ction of supply and demand wherever that i s nec essary and d e s i r a b l e . " 1 F i n a l l y , i n 1966 i n an unpublished paper Crispo stated: "Promoted f o r several years now by the Organization f o r Economic Co-operation and Development, the growing appeal of t h i s concept [active labour market p o l i c y ] i n Canada i s t y p i f i e d by the estab lishment of a Department of Manpower and Immigra- t1on0000 An active labour market or manpower p o l i c y implies a programme designed to f a c i l i t a t e worker mobility - occupational, I n d u s t r i a l , or geographical.... To f a c i l i t a t e a l l manner of job s h i f t s , programmes must be available to a s s i s t workers to upgrade, t r a i n and r e t r a i n themselves, and, where necess ary, to relocate themselves and t h e i r f a m i l i e s . . . . Among the most essential of these [ a n c i l l a r y ser vices] would be adequate labour market research, information and employee counselling services. Without these and other f a c i l i t i e s , appropriate data would be lacking both f o r those administering manpower programmes and those seeking to take ad vantage of them. 1 1 2 In making p o l i c y recommendations i n "A Study i n Labour Market Adjustment" In B r i t i s h Columbia, authors J.T. Montague and J , Vanderkamp suggest that the speed of the x C r i s p o , John H.G. "Economic and Technological Change i n the S i x t i e s - Patterns of Response to Change - Discussion". Op_„ C i t . „ p. 159« 2 C r i s p o , John H.G., Chairman. "Domtar Jo i n t Lab our-Management Sub-Committee Report on Human Adjustment to In d u s t r i a l Conversion". Domtar Joint Labour-Management Meeting, Val Morin, Quebec, October, 1966, pp. 10-11. (unpublished paper). - 94 - labour market In responding to demand conditions i s not s u f f i c i e n t and leads to s t r u c t u r a l surpluses and d e f i c i e n  c i e s . To overcome t h i s i n s u f f i c i e n c y the authors recommend that more information and greater incentives should be ad ministered by a single manpower agency. The manpower agency would perform the following f i v e functions: " I t should c o l l e c t and spread information about job opportunities and developments i n a l l labour mark ets. I t should a i d i n the placement of workers and the f i l l i n g of job vacancies. I t should admin i s t e r the various incentives r e l a t i n g to moving, t r a i n i n g , r e t r a i n i n g etc, of workers. I t should consult with firms and unions concerning labour market problems; the manpower agency may a c t u a l l y take the i n i t i a t i v e In approaching the bargaining p a r t i e s . F i n a l l y , i t should conduct and stimul ate research i n the area of mobility and labour market adjustment. 1 , 1 The purpose of co r r e l a t i n g a l l of these viewpoints here i s to emphasize the fact that the concept of an active manpower p o l i c y i s based on a clear and accepted set of p r i n c i p l e s . There are no major c o n f l i c t i n g viewpoints. Thus, the establishment of the Manpower Consultative Ser vice within the Department of Labour to provide f o r the adaptation of the currently employed manpower to the ever- changing requirements of technological and economic change, was viewed as one necessary r e s p o n s i b i l i t y of the Canadian government towards providing such an active manpower p o l i c y . Montague, J.T. and Vanderkamp, J . A Study i n Labour Market.Adjustment 0 The B r i t i s h Columbia Labour Force. I n s t i t u t e of I n d u s t r i a l Relations: University of B r i t i s h Columbia, I966, p. 109. - 95 - For the purposes of t h i s report, therefore, success of the Manpower Consultative Service must be measured by i t s over a l l contribution towards an active national manpower p o l i c y . The stream of events leading to the establishment of the Manpower Consultative Serviee was presented i n Chapter I I I of t h i s report. At the time of inception of the Service i n mid-1964 the fundamental p r i n c i p l e s within which the Service was to function were formulated. The following quotation indicates the rationale of the Manpower Consultative Service i n 1964 as a function of the Depart ment of Labour. "The Program which w i l l be administered by the Man power Consultative Service as i t operates at the l e v e l of the i n d i v i d u a l i n d u s t r i a l concern i s based on the following p r i n c i p l e s : (a) that appropriate plans at the plant l e v e l must be developed wel l _in advance of anticipated worker displacement, or unnecessary unemploy ment w i l l r e s u l t ; t h i s requires advance re search and assessment of the manpower con sequences of i n d u s t r i a l changes; (b) where there i s a union, research, and the plans which develop from i t , should be developed j o i n t l y by management and unions to remove obstacles to constructive action which result from a lack pf understanding and agreement.as to the facts and the problem; (c) that the use of e x i s t i n g governmental services, both federal and p r o v i n c i a l , which can help i n I I I . THE MANPOWER CONSULTATIVE SERVICE METHODOLOGY - 96 - bringing about e f f e c t i v e manpower adjustments should be e f f e c t i v e l y co-ordinated at the plant levelo Such important services are provided under the Technical and Vocational Training Assistance Act f o r t r a i n i n g and re t r a i n i n g and by the National Employment Service f o r the placement and re-employment of workers. In those cases where a complete employment adjust ment i s not possible at the firm or community l e v e l , the transfer of the displaced workers to other areas i s necessary and i s frequently Inhibited by a Lack of f i n a n c i a l resources. Federal government assistance i n combination with industry and the provinces w i l l greatly f a c i l i t a t e t h i s necessary kind of labour mobility. To Implement a program based on these p r i n c i p l e s , the federal Department of Labour has authority to develop the following program a c t i v i t i e s : I. A Manpower Consultative Service has been formed to administer what we are c a l l i n g 'adjustment incentives'. This Service w i l l act In an ad visory and technical capacity to employers and unions i n developing manpower adjustment pro grams and w i l l encourage and co-ordinate the use by industry of public t r a i n i n g , placement, and other organizations which can a s s i s t i n bringing about more ef f e c t i v e manpower adjust ments consequent upon technological change, 2 „ The Minister of Labour Is authorized to enter Into agreements with employers or j o i n t l y with employers and unions to provide research incen t i v e s to pay f o r one-half of the costs incurred i n researching the manpower effects of indust r i a l changes, and i n the developments, but not the Implementation, of programs of adjustment. Such f i n a n c i a l assistance, however, depends on the M i n l s t e r 9 through the Manpower Consultative Services, receiving reasonably advance notice of i n d u s t r i a l changes which w i l l have adverse effects on employment. Where there i s a recog nized union 9 there must also be agreement that management and union w i l l p a r t i c i p a t e j o i n t l y i n the research and development phases of a Manpower Adjustment Program, 3, The Minister of Labour can also enter into agreements to provide re-employment incentives - 97 - to a province or employers9 or both 9 of one-half the costs incurred in moving workers and their dependents displaced by industrial change to other communities where employment i s available. This provision w i l l 9 of course 9 be limited to those workers who9 except for the payment of the incentive 9 would not be able to move and, in addition, the incentive w i l l be contingent upon an employer or a province, or both, ass uming the other half of the cost. k0 Under the provisions of the Technical and Voc ational Training Assistance Act, a recent amend ment of the Act permits the federal government to reimburse a province for seventy-five per cent of the costs which an employer undertakes In retraining workers under a Manpower Adjust ment Program9 should they be threatened with displacement consequent upon technological change„ In summary, this Program then i s designed to provide assistance on a technical consultative basis and on a financial basis to unions and management who de sire It so that they may develop more constructive solutions to the displacement problems which techno logical and other economic changes produce i n i n  dustry. Most significantly, i t i s public policy i n Canada, at least so far as the federal government i s con cerned, to encourage joint union-management p a r t i  cipation i n the development of long-term solutions to the manpower problems of technological change. Joint research Is regarded as a significant means for providing 9 i n advance of the impact of techno logical change9 for the development of constructive programs to cope with the Impact of these changes within the context of collective bargaining. A further significant provision i s that when work ers are displaced, the resources of the National Employment Service and of public retraining agencies are brought to bear. The federal government w i l l share 75 per cent of the costs of this kind of re training i f i t Is developed i n the context of a joint solution to the problems of displacement. In addition, the federal government i s w i l l i n g to bear 5© P®r cent of the costs of any necessary movements of displaced workers to areas of re employment o - 98 - The Manpower Consultative Service has been set up by the Government of Canada as a catalyst i n fac i l i t a t i n g the process of manpower adjustment to technological change. I t i s confidently expected on our;part that industry, both management and unions, w i l l seize the i n i t i a t i v e and that the function of the Service w i l l be to f a c i l i t a t e , to suggest, to advise the parties i n the investigation of technological change and i t s e f f e c t s , rather than to conduct Investigations f o r them. The Ser vice w i l l play a role i n co-ordinating the a c t i v i  t i e s of other government agencies i n helping to reach solutions to manpower problems. I t i s gen uinely a consultative service. In time, because of the research which i t w i l l help to develop, i t can act as a s i g n i f i c a n t c l e aring house on the best ways to cope with the manpower problems of technological change." 1 Although the Manpower Consultative Service was transferred to the Department of Manpower and Immigration i n I 9 6 6 the program I t offers remained e s s e n t i a l l y the same. Approach Reviewed The establishment of an agreement between the union and management of an enterprise and the government obvious l y s t a r t s with contact between the Manpower Consultative Service representative and the p a r t i e s . The Manpower Con s u l t a t i v e Service representative may be contacted by one or both parties or, on the other hand, he may attempt to devel op interest i n a program i f the s i t u a t i o n appears amenable •"-Dymond, W.R. "The Manpower Consultative Service of the Canadian Department of Labouf". 0p_o C i t . . pp.-17- 19. - 99 - and i t i s consistent with the p r i n c i p l e s of the S e r v i c e 1 . I n i t i a l l y , the Manpower Consultative Service re presentative advises the parties on the a v a i l a b i l i t y of f a c i l i t a t i n g services and as w e l l suggests certain proce dures f o r manpower adjustment. Once the parties have be come convinced that i t i s desirable f o r them to partake i n a j o i n t program of planning f o r the expected manpower d i s  placement, a "Proposal f o r P a r t i c i p a t i o n " i s drawn up, establishing the framework within which the program w i l l continue, A normal Proposal provides f o r a Jo i n t Consul t a t i v e Committee made up of o f f i c e r s of the company and the union. Reporting to the parent Committee i s a Research Sub-Committee containing equal representation from union and management, and chaired by an outside neutral—normally an academic professor of high repute. In the past the Man power Consultative Service representative or the Research Director has acted as temporary chairman of the J o i n t Con s u l t a t i v e Committee but the parties are encouraged to make t h e i r own arrangements as soon as possible. In some cases a representative from each party w i l l become co-chairmen of the Committeeo The costs of the program are normally shar ed by the government, company and union i n proportions of f i f t y , twenty-five and twenty-five per cent respectively. xSee Chapter V, Active Versus Passive Approach Section, p. 166. - 1G0 - . Once the parties have formally agreed on the Pro posal f o r P a r t i c i p a t i o n , a l e t t e r i s sent to the Minister of Manpower and Immigration requesting f i n a n c i a l a s s i s t  ance i n carrying out the adjustment program and in d i c a t i n g the p a r t i e s ' intentions as related In the Proposal, A sample l e t t e r and Proposal f o r P a r t i c i p a t i o n i s attached as Appendix "A", Because of the time lag inherent i n t h i s procedure an Interim formal agreement i s sometimes deemed necessary. I f contentious issues have been l i f t e d out of negotiations f o r a coming c o l l e c t i v e agreement, or i f the parties are of low accommodation and there i s fear of one or the other party possibly reneging on certain items, a Memorandum of Understanding i s drawn up to cover these special circum stances. This Memorandum of Understanding serves to f o r  mally bind the parties u n t i l the Minister has signed the Manpower Assessment Incentive Agreement, S p e c i f i c examples that have been used i n the past are a status quo clause and a binding award. In a status quo clause the parties agree that changes i n the adjustment program subject matter w i l l not be made during a stipulated period. In a binding award provision, the parties have generally reached an impasse i n j o i n t discussions and sign an agreement s t i p u l a t i n g that they w i l l abide by the recommendations of a chosen t h i r d party f o r a given period. In most cases, however, such a Memorandum of Understanding i s not required. - 101 - I f the Minister deems the research worthy of assis tance, he has drawn up and signs a Manpower Assessment In centive Agreement (See Appendix "B"). Once the Incentive Agreement Is signed the parties are i n formal contract with the government to undertake the j o i n t research pro gram, normally within a specified period of time, although extensions are usually permitted. While the problems to be researched vary with the p a r t i c u l a r s i t u a t i o n , i n general the following areas are included i n the program: 1. A detailed assessment of the present occupational structure. 2. A complete description of the anticipated man power requirements to r e s u l t from the impending changes. 3 . A detailed description of the changes i n the i current work force. 4. An analysis of ways and means by which the ex i s t i n g work force may be adapted to the new s i t  uation. This w i l l l i k e l y include some provision f o r r e t r a i n i n g and an analysis of the e x i s t i n g s e n i o r i t y practices. 5 . An analysis of the present and future labour market i n conjunction with the anticipated labour requirements projected from forecasts of product demand. 6. I f the research and assessment program concludes that the company cannot absorb the e x i s t i n g work force then recommendations should be devised and submitted to the Joint Consultative Committee i n order to f a c i l i t a t e an orderly adjustment proced ure. These recommendations w i l l l i k e l y be based on a combination of normal c o l l e c t i v e bargaining methods and government manpower services. 7 I f the research and assessment program concludes - 102 - that new entrants are required then the recommen dations should draw on labour market Information to provide f o r methods of a t t a i n i n g the required numbers. 8. In a l l cases the research and assessment proced ure should be kept a l e r t to the possible use of government manpower services i n making f i n a l re commendations on methods to cushion the impact. At the same time that the research and assessment program i s underway, the J o i n t Consultative Committee meets to discuss the framework within which future discussions on any proposed changes w i l l take place. Normally a status quo Is established on the subject matter such that disputes do not a r i s e during the period of the study. In addition, the Manpower Consultative Service representative can ac quaint the parties with other programs s i m i l a r to t h e i r s and show the constructive resul t s which have emerged from these studies. When the research recommendations are complete they are submitted to the J o i n t Consultative Committee, which i s then faced with the major task of preparing a comprehensive manpower adjustment plan. In developing the plan i t i s xBrooks, G.Go "Advance Planning f o r Manpower Ad justment at the Plant Level and the Role of the Manpower Consultative Service". The Requirements of Automated Jobs, p. 25*. Drew, J.Do "Economic and Technological Change i n the S i x t i e s = Implications f o r Manpower Adjustment - Dis cussion". Labour-Management Conference on Economic and  Technological Change i n the S i x t i e s , pp. 111-112. Dymond, W.R. "The Manpower Consultative Service of the Canadian Department of Labour". 0p_0 C i t . , pp. 9-10. •- 103 - recommended that solutions he approached with due regard for the r i g h t s , obligations and r e s p o n s i b i l i t i e s of a l l p a r t i e s , and that the needs of technical e f f i c i e n c y be equated with those of sound i n d u s t r i a l and human relations i n the industry. Thus, union and management are provided with an objective and r e l i a b l e set of f a c t s ; a mutually agreed upon set of ground rules b u i l t up around provisions contained i n the c o l l e c t i v e agreements; experiences of other cases; and other agreements unique to t h e i r p a r t i  cular circumstances. In addition to the technical and f i n a n c i a l services provided by the Manpower Consultative Service, the Commi ttee has at i t s disposal the t r a i n i n g , placement, mobility and miscellaneous, f a c i l i t a t i n g services of both the prov i n c i a l and federal governments. These services would be co-ordinated by the Manpower Consultative Service repres entative. The Joint Consultative Committee's discussions, approached i n an atmosphere free of time pressures and with the approval of top o f f i c i a l s of both p a r t i e s , lead to recommendations that are normally accepted by both the company and the union. Often the f i n a l terms and provis ions of a manpower adjustment program must be negotiated, but, i n the absence of a c r i s i s bargaining atmosphere and preceded by j o i n t research and assessment. The f i n a l act of the Manpower Consultative Service ) - 104 - approach i s disbursement of the l a s t f i n a n c i a l incentive payment once the recommended plan i s received and approved by the Mi n i s t e r , thereby closing out the f i n a n c i a l arrange ments and terminating the agreement, IV. SELECTED CASES HANDLED BY THE MANPOWER CONSULTATIVE SERVICE Each of the twenty or more cases completed or currently underway under the auspices of the Manpower Con s u l t a t i v e Service has i t s own d i s t i n c t properties. The type of company, the product produced, the kind of techno l o g i c a l change being Introduced, the number of unions re presented, the relations between labour and management, the general economic environment, and many other character i s t i c s have to be considered i n evolving a plan of adjust ment tailor-made to the p a r t i c u l a r s i t u a t i o n . On a broad and s i m p l i f i e d scale, however, the cases do appear to con form to a continuum that involves plant closure with mass lay-off at one end, an Increasing degree of i n t e r n a l ad justment moving right across the continuum, and, at the other end, future manpower planning with no imminent worker displacement. In order to a r r i v e at some general conclus ions I t w i l l be useful to b r i e f l y recap a number of cases, keeping most of the variables constant, and view t h e i r p o s i t i o n on such a continuum of increasing ease of worker adjustment. - 105 - The ten cases presented were selected mainly f o r t h e i r completeness of r e s u l t s , t h e i r representation of the types of Manpower Consultative Service programs, t h e i r cross-country l o c a t i o n , and t h e i r varying degree of a n t i  cipated work force reduction,, Included are two cases i n  volving plant closure, four cases involving increasing degrees of i n t e r n a l adjustment and four cases involving increasing degrees of future planning. The information presented was compiled from various government f i l e s and reports, research reports, interviews and newspaper a r t  i c l e s . In essence the material i s arranged to indicate the degree of anticipated work force reduction, the type of program-that was recommended to overcome the displace ment problem, and where possible, the results that were achieved i n e f f e c t i n g the worker adjustment plan. A com prehensive summary of one case study i s attached as App endix MC" to indicate more f u l l y the many ramifications involved i n a complex manpower adjustment program. Plant Closure Pom tar Pulp and Paper Ltd.«, Portneuf, Quebec. In November, 1965 Domtar Pulp and Paper Ltd. signed a Manpower Assessment Incentive Agreement i n which i t agreed to undertake a program of j o i n t research and assess ment. I n i t i a l contact with the Manpower Consultative Service - 106 - was made "by the union i n J u l y , I965 shortly a f t e r i t rec eived notice of planned closure of the Company's kraft and boxboard subsidiary i n Portneuf, Quebec, f o r economic reasons, sometime i n J u l y , 1966. I t was expected that about f i f t y workers would be displaced,, P a r t i c i p a t i n g i n the manpower adjustment program was the company, two unions, the Manpower Consultative Service, the Quebec Department of Labour, and the Quebec Department of Industry and Commerce„ The program, under the d i r e c t i o n of a neutral consultant, was to provide f o r methods i n which the displaced workers could be re-employedo Preliminary studies by the Research Committee i n November and December, I965 involved the u t i l i z a t i o n of two expert counsellors from the National Employment Service to interview the employees to determine t h e i r q u a l i f i c a t i o n s 0 This study was to ascertain whether the workers were capable of re-employment i n the labour market, per se, or i f further r e t r a i n i n g of a s p e c i f i c kind was necessary. Attempts were also made to i n i t i a t e an area re development program with the Quebec Department of Industry and Commerce but several problems arose and subsequent e f f o r t s proved unsuccessful 0 In February, I966 discussions were held with the employees informing them of the Committee's progress and acquainting them with the company's p o l i c y on pensions and severance pay. In addition, the company took upon i t s e l f - 107 - the task of findin g jobs i n t h e i r other plants f o r a l l employees who desired to relocate. Application was made for a federal M o b i l i t y Incentive which would cover part of the cost of moving expenses. This a p p l i c a t i o n subsequen t l y received federal approval. In general, the program was reported as somewhat di s j o i n t e d . The regional Manpower Consultative Service representative suggested that u n i l a t e r a l action by the company was f e l t to be the cause of many of the problems. C r i t i c i s m was l e v e l l e d at the Interviewing because of i t s unco-ordinated e f f o r t . Moreover, attempts at relocation were hampered by the receiving unions' resistance to h i r  ing outside t h e i r own l o c a l i t y i n v i o l a t i o n of general p o l i c y . I t was suggested that less resistance would have been met through a j o i n t e f f o r t . Further i l l - f e e l i n g was generated by the workers against the company over retrac t i o n of s p e c i a l l y Implemented early retirement provisions. Some of the company representatives, on the other hand, a c t u a l l y f e l t that the company might have been better off i f i t had closed the plant down immediately instead of phasing out the operation i n an attempt to place the affected workers. Ultimately, by February, 1967 sixteen employees had been relocated, seventeen had accepted severance pay (seven of which were early retirements), one had r e t i r e d normally, and the remaining sixteen had s t i l l deferred action on - 108 - relocation. Mount Royal Rice M i l l s Ltd, In September, 1965 Mount Royal Rice M i l l s Ltd., Montreal, served notice to i t s t h i r t y - e i g h t s a l a r i e d em ployees that i n September, 1966 i t would be trans f e r r i n g operations from Montreal.to Windsor, Ontario. A J o i n t Committee was established under the terms of reference of a Manpower Assessment Incentive Agreement one month l a t e r , a f t e r the Manpower Consultative Service was f i r s t contact ed by the union and then by management. The manpower ad justment program, directed by a neutral consultant, aimed at providing assistance to those employees who wished to transfer to the new location and at findi n g a l t e r n a t i v e work f o r those who did not wish to move. P a r t i c i p a t i n g i n the j o i n t study was the company, the union, the Manpower Consultative Service and the Quebec Department of Labour, The Research Sub-Committee held a meeting with the t h i r t y - e i g h t s a l a r i e d employees and advised them that: (1) the company would provide work to a l l those who wished to relocate i n Windsor; (2) the company and the Manpower Con s u l t a t i v e Service would pay a l l expenses incurred i n re loc a t i n g to Windsor or elsewhere i n Canada; and (3) the company would off e r a severance settlement of one week's pay per year of service to those employees who did not wish to continue working f o r the company a f t e r closure of the - 109 - Montreal plant. In addition, the company would provide f i n a n c i a l support to any employee who wished to take acad emic t r a i n i n g , staggered over a period of about t h i r t y - s i x weeks. I n i t i a l l y , eighteen employees desired to relocate. However, i t was found that housing i n Windsor was scarce and, where a v a i l a b l e , rents were high. The only accept able accommodation—a low-rental scheme—required s i x months previous residency In the c i t y to q u a l i f y f o r acc ess. Many attempts were made to arrange f o r t h i s or some other suitable accommodations but to no a v a i l . F i n a l l y , only s i x employees s t i l l desired relocation, and to help them shoulder the higher rents, the company paid these em ployees a severance settlement even though they were to be reinstated at the new lo c a t i o n . The r e t r a i n i n g program e f f o r t s were hampered by an apparent lack of co-operation. Twenty-nine employees were Interested i n pre-employment t r a i n i n g , eighteen of whom had at least grade s i x education. Therefore, an i n i t i a l a t t  empt was made at se t t i n g up a course f or them. D i f f i c u l t  ies with the Quebec Department of Education and Montreal School Commission Board, however, reduced the number of q u a l i f i e d applicants to seven. These seven employees were subsequently refused t r a i n i n g due to t h e i r small number and the entire program had to be abandoned. Ultimately s i x employees moved to Windsor, four - 110 - remained with the company i n Montreal and the remaining twenty-eight received severance settlements. These twenty- eight have been interviewed by the Canada Manpower Centers for a t h i r d time i n an attempt to relocate them with other employerso Internal Adjustment Canadian P a c i f i c A i r Lines Ltd„ On March 15, 1966 Canadian P a c i f i c A i r Lines Ltd. signed an Agreement with the Navigators* Association i n Vancouver, i n which they agreed to carry out a j o i n t pro gram of research, consultation and planning with respect to manpower adjustment problems a r i s i n g out of the planned introduction of airborne navigational equipment. The pro gram i s examining the manpower implications Involving twenty-nine navigators who w i l l become redundant when such equipment i s introduced. Contact with the parties was f i r s t made through the e f f o r t s of the l o c a l Manpower Consultative Service representative. The J o i n t Consultative Committee i s being chaired by the Manpower Consultative Service re presentative and research i s being directed by a neutral consultant. The Research Committee's e f f o r t s to date have pro duced an analysis of questionnaire results and completion of two of f i v e parts of the Research Report. The weight - I l l - of evidence supports the view that redundancy of navigators i s i n e v i t a b l e ; the navigators themselves believe sometime between three to ten years„ In addition, i t appears that f o r the most part, the navigator group possesses l i t t l e s k i l l or experience that i s r e a d i l y adaptable to other occupations, although s i x to ten of them do possess some pot e n t i a l f o r r e t r a i n i n g as p i l o t s . The remaining research w i l l assess the degree of f i t between the expectations of the navigators and opport u n i t i e s f o r readjustment within the company. In addition, the study w i l l examine a t t r i t i o n , early retirement, re t r a i n i n g , relocation and severance pay provisions i n an attempt to develop an integrated solution to the problem of navigator redundancy. I f any issues remain i n disagree ment a f t e r a l l e f f o r t has been exhausted by the p a r t i e s , they s h a l l be subjected to negotiation under a new c o l l e c t  ive agreemento Previous experience with navigator redundancy, not ably Trans World A i r l i n e s , and more recently United A i r Lines, has resulted In adjustment plans that provide gen erous severance pay combined with forms of supplementary income security, For example, Trans World A i r l i n e s pro vided a monthly payment f o r three years plus a healthy severance settlement. United A i r Lines s p l i t t h e i r navi gators into high and low s e n i o r i t y groups and provided separate adjustment plans f o r each. Lower s e n i o r i t y - 112 - employees were granted f i n a n c i a l severance a f t e r two years' job security. Higher s e n i o r i t y employees were guaranteed either a job and a minimum salary, or a minimum monthly payment to l a s t u n t i l age s i x t y or u n t i l a maximum sum had been exhausted. Munificent settlements are common with navigator redundancy due to the r e l a t i v e l y low number of employees affected and t h e i r r e l a t i v e l y high salary structure. On the other hand, navigators are so specialized that com p l e t e l y s a t i s f a c t o r y i n t e r n a l adjustment or r e t r a i n i n g i s almost impossible, Canadian National Railways - North Sydney The Canadian National Railways f e r r y service between North Sydney, Nova Scotia, and two Newfoundland ports w i l l be modernized s t a r t i n g i n the f a l l of 196?. The new vess els and new freight-handling methods to be introduced w i l l eliminate most of the stevedoring employment currently used. Most of the anticipated worker displacement—which a f f e c t s seven hundred or more men—represents about one- t h i r d of North Sydney's male work force and the impact of such unemployment could be disasterous. Both the company and union agreed to u t i l i z e the Manpower Consultative Ser vice program and assistance was subsequently arranged f o r through a Manpower Assessment Incentive Agreement signed i n November, 1965. Research i s being directed by a neutral - 113 - consultant who passes his recommendations on to a Joint Consultative Committee f o r consideration. The Canadian National Railways, the union, and federal and p r o v i n c i a l government a u t h o r i t i e s are involved in e f f e c t i n g a plan to f i n d a l t e r n a t i v e jobs f o r the affected workers. I n i t i a l l y , the Research Committee was faced with the task of t r y i n g to discover ways i n which the displaced workers could be re-absorbed into new jobs with the least possible hardship. Therefore, they attempted to: (1) d i s  cover the c h a r a c t e r i s t i c s of the men; (2) f i n d out what al t e r n a t i v e employment would be a v a i l a b l e ; (3) plan f o r t r a i n i n g of the men so that they could f i l l expected vac ancies; and (4) c l e a r the way of obstacles to relocation. The union and the company decided to face the pro blems together and to contribute j o i n t l y to t h e i r solution. Therefore, no action was to be taken u n t i l a plan emerged that was agreeable to both p a r t i e s . This did not mean that expert advice would not be sought; merely that the two parties on the Committee agreed to seek i t together, to consider the advice together and to move together when agreement was reached. One d i f f i c u l t y — t h a t of uninhibited Committee support—emerged when company representatives were f e l t to have l o y a l t i e s outside the Committee. This was overcome (one report suggested) by rendering a l l proceedings con f i d e n t i a l to the members. Union representatives were - 114 - senior o f f i c i a l s . The p r o v i n c i a l Departments of Labour and Education, federal representatives and l o c a l education o f f i c i a l s were in v i t e d to p a r t i c i p a t e by helping to design and establish courses. Problems of relocation were discussed with the National Employment Service, and the impact of changes on the l o c a l community were examined with the North Sydney Town Council and Chamber of Commerce. Two major studies were I n i t i a t e d by the Committee, as wel l as numerous research projects. They were: (1) an I n d u s t r i a l survey to determine the short-term employment outlook i n the Sydney area; and (2) the resistant attitude of the employees towards mobility. Also, with a three year spread between the date of o r i g i n a l public announcement and the conclusion of the reconstruction, technical studies were required to determine the impact of proposed changes on the work force. For example, i t was expected that about two hundred new jobs would be created due to an increase i n the number of vessels used. Some d i f f i c u l t i e s were expected i n matching d i s  placed men with the new jobs. With three unions each clam oring f o r the vacancies—one f o r ships' crews, one f o r North Sydney workers and one f o r workers s i m i l a r i l y affected i n Newfoundland—and with further problems a r i s i n g from b u l l  e tining arrangements, s e n i o r i t y claims, and medical and l e g a l requirements, a great deal of co-operation was required - 115 - to ensure that mutually acceptable arrangements were quick l y made. Some ex-stevedores became seamen a f t e r a two week on-the-job t r a i n i n g course arranged es p e c i a l l y f o r them. Although there was i n i t i a l resistance to the i n t e r  viewers and counsellors ( s t a f f of Canadian National R a i l  ways regional and head offi c e s ) i t was soon overcome. When the need became pressing to s t a r t making plans f o r educational courses, the Committee decided a more detailed interviewing assessment was required to ensure that classes would be homogeneous. For t h i s work the Committee obtained the services of two selection and counselling experts, one a private consultant and one from the Toronto Board of Education. Because nothing was due to happen f o r two years or so the Interviewers found the men somewhat r e l i a n t on wishful thinking. Even a f t e r the two formal interview programs were over, however, counselling was continued by a Manpower Co-ordinator who Is stationed f u l l time at the f e r r y terminal. The Committee expended considerable e f f o r t i n an attempt to promote a smooth transfer of men to other jobs and d i s t r i c t s . A l l new openings i n the Canadian National Railways system were publicized and educational standards were changed somewhat to help accommodate some of the d i s  placed. Unfortunately, the transfer and relocation of workers to date has not worked well and most of the men returned shortly a f t e r relocating. In essence, pay rates = 116 - f o r new j o b s a r e l o w e r and most o f t h e men a r e f i r m l y - a t t a c h e d t o t h e i r own d i s t r i c t , so u n d o u b t e d l y t h o s e t o be l a i d o f f w i l l e x h a u s t a l l e f f o r t s i n a t t e m p t i n g t o f i n d o t h e r j o b s i n t h e immedia te a r e a b e f o r e l o o k i n g e l s e w h e r e . D i s c u s s i o n s have been h e l d w i t h t h e Nova S c o t i a Depar tment o f Labour a n d , as a r e s u l t , t h e y have u n d e r  t a k e n t o e x p l o r e — w i t h t h e f e d e r a l Depar tmen t o f Manpower and I m m i g r a t i o n — t h e p o s s i b i l i t y o f t r e a t i n g N o r t h Sydney as a p i l o t p r o j e c t . I f t h i s m a t e r i a l i z e d i t w o u l d p r o v i d e a l l t h e s o c i a l and economic r e s e a r c h needed on t h e v a c a n  c i e s t h a t w o u l d l i k e l y a r i s e i n t h e Cape B r e t o n a r e a i n t h e n e x t t h r e e y e a r s . No f u r t h e r r e s u l t o f t h i s endeavour has been I n d i c a t e d , a l t h o u g h , as was m e n t i o n e d e a r l i e r , a s h o r t - t e r m o u t l o o k was i n i t i a t e d by t h e Commi t tee . Recent i n f o r m a t i o n i n d i c a t e s t h a t a comprehens ive v o c a t i o n a l t r a i n i n g and u p g r a d i n g program has been o p e r  a t i n g f o r a b o u t a y e a r . F u l l c o - o p e r a t i o n was r e c e i v e d f r o m e v e r y l e v e l o f p u b l i c a u t h o r i t y i n s e t t i n g up t h e s e c o u r s e s . The Research D i r e c t o r s u g g e s t e d t h a t s c h o o l and government o f f i c i a l s went o u t o f t h e i r way t o ensure t h e scheme r e c e i v e d f u l l s u p p o r t . Government a i d , made a v a i l  a b l e f o r t h i s e d u c a t i o n p r o g r a m , was f e l t somewhat i n a d  equate t o c o v e r t h e n e c e s s a r y f i n a n c i a l s u p p o r t and d i s  c u s s i o n s were underway t o a t t e m p t t o a l t e r t h e e x i s t i n g r e g u l a t i o n s . A d d i t i o n a l s u p p o r t was r e c e i v e d f r o m t h e communi ty i n g e n e r a l l e a d i n g t o a c o n c e r t e d e f f o r t a t „ H7 - s o l u t i o n t o t h i s w i d e - r a n g i n g manpower p r o b l e m . I n a d d i t  i o n , a p r o c e s s o f c o n t i n u o u s c o u n s e l l i n g i s b e i n g e s t a b  l i s h e d i n v o l v i n g s i x t o e i g h t t r a i n e d i n t e r v i e w e r s u n d e r t h e d i r e c t i o n o f M o n t r e a l c o n s u l t a n t s . T h i s p rogram i s a t t e m p t i n g t o r e - o r i e n t and m o t i v a t e t h e w o r k e r s . A l t h o u g h t h e q u e s t i o n o f seve rance payments w i l l u l t i m a t e l y be r a i s e d , t h e Commit tee i s unanimous i n t h e i r b e l i e f t h a t t h i s must n o t be used as a way o f b u y i n g o u t o f t h e p r o b l e m . M a n i t o b a R o l l i n g M i l l s L t d * M a n i t o b a R o l l i n g M i l l s L t d . , S e l k i r k , M a n i t o b a , and t h e U n i t e d S t e e l w o r k e r s o f A m e r i c a s i g n e d a Manpower A s s  essment I n c e n t i v e Agreement on June 9, 1965 i n w h i c h t h e y a g r e e d t o a s s e s s , t o g e t h e r w i t h t h e Manpower C o n s u l t a t i v e S e r v i c e and t h e M a n i t o b a Depar tment o f L a b o u r , t h e man power i m p l i c a t i o n s a s s o c i a t e d w i t h t h e p r o p o s e d t e c h n o  l o g i c a l changes t o be made i n t h e company 's o p e r a t i o n s . The p rogram was i n i t i a t e d by Manpower C o n s u l t a t i v e S e r v i c e r e p r e s e n t a t i v e s who were aware o f t h e p l a n n e d i n t r o d u c t i o n o f new equ ipment and n e g o t i a t i o n s were s t a r t e d w i t h t h e i n d u s t r i a l r e l a t i o n s d e p a r t m e n t o f D o m i n i o n B r i d g e Company i n M o n t r e a l . Abou t two hundred and s i x t y men were e x p e c t e d t o be l a i d o f f when t h e p l a n t m o d e r n i z a t i o n was c o m p l e t e d : a p p r o x i m a t e l y e i g h t e e n p e r c e n t o f t h e t o w n ' s l a b o u r f o r c e . - 118 - Accordingly, research was directed by a neutral consultant into ramifications of the changes i n an attempt to devise a manpower adjustment program f o r the re-adaptation and/or relocation of employees who were to be l a i d off and f o r the r e t r a i n i n g of those employees who were to be assigned new duties. The Research Director also chaired the Committee. The J o i n t Planning Committee, established i n r e l  ationship with the Manpower Consultative Service, followed cl o s e l y a company sponsored j o i n t committee that had a l  ready Investigated the question of a l l o c a t i o n of jobs i n one new area of the plant. The J o i n t Planning Committee investigated: (1) the manpower requirements of the new s i t u a t i o n as related to the expressed technological, organ i z a t i o n a l and operational changes; (2) a program of man power a l l o c a t i o n , and consideration given to ways and means by which the e x i s t i n g work force could be adapted to the new s i t u a t i o n - - t h i s involved the making of actual re commendations concerning new jobs and the necessary steps for i n t e r n a l r e t r a i n i n g ; and ( 3 ) a detailed survey of that part of the e x i s t i n g labour force to be displaced. Re commendations were made concerning those people who could not be reabsorbed into the company, with p a r t i c u l a r emph asis on r e t r a i n i n g , relocation and placement. The Committee experienced considerable d i f f i c u l t y i n i t i a l l y as a low accommodation between the union and - 119 - company management at the s t a r t created some uncertainty as to a successful outcome,, This poor accommodation was mainly due to management's b e l i e f that widespread t a l k of l a y - o f f could cause a mass exodus from the plant and ad versely a f f e c t operationso On the other hand, the union i n i t i a l l y refused to consider renewing t h e i r c o l l e c t i v e agreement u n t i l technological changes had been completed. A s t r i k e was deemed imminent. However, d i f f i c u l t i e s were handled f l u e n t l y and constructively and f o r the most part few, i f any, of the problems persisted. The understanding and co-operation that ultimately developed within the Committee was reported to have greatly improved the union- management re l a t i o n s h i p . This understanding was due i n large part to the establishment of some fundamental p r i n  c i p l e s by the Committee before proceeding with the study. The research and assessment findings indicated that about three hundred and ninety employees were to be d i s  placed from t h e i r jobs. Of t h i s t o t a l , one hundred and t h i r t y underwent a process of i n t e r n a l adjustment and were absorbed into new jobs or e x i s t i n g jobs that were previous l y f i l l e d with more junior workers. Of the other two hund red and s i x t y workers to be l a i d o f f , about eighty were o r i g i n a l l y recognized as temporary help. In order to f a c i l i t a t e the i n t e r n a l adjustment, e x i s t i n g s e n i o r i t y practices had to be relaxed f o r the period of r e - a l l o c a t i o n . In addition, some junior per-- 120 - sonnel were deemed too valuable to replace by virt u e of the special s k i l l s they possessed and were held immune to bump ing. When the f i n a l re-assignment has been established, the cut-off l e v e l stood at about seven years of service. Those employees with more than seven years 1 s e n i o r i t y , who were displaced from previous jobs, were assigned new posi tions i n the plant by the Committee a f t e r an examination of t h e i r past records and q u a l i f i c a t i o n s . Provisos such as granting of inter-assignment bumping rights and leaves of absence to f i n d jobs elsewhere were established with these assignments. In addition, i t was stipulated that s p e c i f i c job assignments were to be contingent upon s a t i s  factory performance. For those employees not reabsorbed within the com pany the Committee recommended use of the Canada Manpower Center f o r interviewing i n an attempt to est a b l i s h use of re t r a i n i n g , relocation and placement services. The company management permitted Interviewing and r e g i s t r a t i o n of these workers on company time and premises. In addition, the Committee provided a s t a t i s t i c a l survey of personnel re cords f o r use by the counselling service. The Committee recommended that government a s s i s t  ance be granted to those workers who wished to upgrade t h e i r educational standards even i f a job was available to them. The government subsequently accepted t h i s recommen dation. In addition, the company agreed to co-operate with - 121 - the educational a u t h o r i t i e s i n establishing t r a i n i n g cour ses. An application f o r mobility assistance had to be deferred u n t i l actual numbers of pending la y - o f f s could be determined. A recent F i n a n c i a l Post a r t i c l e states that: "Since the company delivered i t s warning i n mid- 1963, o.natural a t t r i t i o n has taken care of 100 of the persons marked f o r l a y - o f f . . . . The remainder w i l l l i k e l y be released within the next several months.... MRM set up r e t r a i n i n g programs, with help from the S e l k i r k School Board and the Manitoba De partment of Education...." 1 Results of interviews and counselling indicated that there was a high interest i n t r a i n i n g but few workers have shown an interest i n relocating outside of the S e l  k i r k area. Unfortunately, as the wage structure at Mani toba R o l l i n g M i l l s Is considerably higher than that paid by other Industries i n the town, attempts to re-employ the displaced workers at a comparable rate w i l l be ex tremely d i f f i c u l t . Domtar Ltd.. Windsor, Quebec. A J o i n t Commission involving Domtar Ltd., two pulp and paper workers' unions and the Quebec Department of f i n a n c i a l Post. The. "Firms moving to blunt the slings and arrows of modern technology". March 4, 1967, p. 25. - 122 -' Labour assessed the consequences of proposed manpower cuts at Domtar's Windsor, Quebec, m i l l . This case involved the imminent displacement of one hundred and seventy-two of the company's one thousand workers—about ten per cent of the town's labour force. The parties entered into a Man power Assessment Incentive Agreement on the suggestion of the regional representative of the Manpower Consultative Service and the p r o v i n c i a l Department of Labour In A p r i l , 1965, a f t e r unsuccessful attempts i n reaching agreement themselves. The research was directed by a neutral con sultant, who also chaired the Commission. The program was focussed on three broad objectives established by the Commission: (1) reabsorptlon of the one hundred and seventy-two workers; (2) dismissal of a l l of them; or (3) p a r t i a l reabsorptlon of the workers. Within t h i s framework the Commission decided at the outset to pursue three normally sequential areas of study consecut i v e l y due to a shortage of time and to avoid possible r i s k s to the affected workers, t h e i r families and the community. The three areas researched were: (1) inquiry into the p o s s i b i l i t i e s of a reduction i n the number of redundant workers; (2) study of regional economic and labour market conditions; and (3) study concerning the p o s s i b i l i t y of placement and r e t r a i n i n g of the redundant manpower. The Commission stated that t h e i r immediate object ive was not to decide what should be done nor to a r b i t r a t e - 123 - the d i f f e r e n t opinions or Interests of the p a r t i e s , but rather i t was to analyze the s i t u a t i o n , present f a c t s , indicate measures to overcome the problems and then l e t the union and management decide on the f i n a l d i s p o s i t i o n of the program. Af t e r researching the ramifications of a number of methods i n which the one hundred and seventy-two workers could be retained under the f i r s t area of study, the Commission recommended the following: (1) s t r i c t a p p l i c  a t i o n of a forty-hour week; (2) regulation of the annual leave system; (3) sabbatical leave; (4) early retirement; (5) f a c i l i t a t i n g voluntary departures; and (6) any other measures upon which the parties can agree. Under the second area of research the Commission concluded that: (1) the supply of labour i n the area was r e l a t i v e l y high with concomitant high demand f o r employ ment; (2) the primary sector dominates the economy; (3) most offers of employment c a l l for special s k i l l s or ex tensive t r a i n i n g ; and (4) the placement services do not appear to have f u l l y succeeded i n putting at the disposal of the workers a l l the information they needed. Under the t h i r d area of research the Commission concluded that: (1) about one-quarter of the redundant group had a precise idea of what they could do and l i k e d to do; (2) about f i f t y workers desired t r a i n i n g , however, the interest d i v e r s i t y was so large as to preclude, i n - 124 - general, organization of l o c a l courses; (3) a program of vocational t r a i n i n g should be established on a permanent basis, and should not serve as a panacea f o r mitigating the effects of major technological change at a given moment; (4) they were unable to establish r e t r a i n i n g f o r the i n  dividuals being transferred within the plant because of a lack of knowledge of s p e c i f i c job assignments; (5) a re c l a s s i f i c a t i o n and guidance committee should be estab l i s h e d f o r a s s i s t i n g redundant workers f i n d new employ ment i n accordance with t h e i r experience, academic t r a i n  ing, s k i l l s , interests and personality; and (6) a v a i l a b i l  i t y should be made of federal mobility assistance i n re location to jobs i n new areas. The p o s s i b i l i t y of a t t r a c t i n g new Industry to the area was apparently precluded by the high wages of the Domtar workers i n contrast to the r e l a t i v e l y low-wage area. This also hampered the p o s s i b i l i t y of relocation as workers desired new employment either s i m i l a r to or better than t h e i r present jobs. Use of the federal mobility i n  centive, therefore, appeared very l i m i t e d . In addition, i n a b i l i t y of the workers to choose s p e c i f i c t r a i n i n g hind ered the promotion of ret r a i n i n g incentives. The Commission made a number of general recommen dations based on problems encountered In t h i s study. They f e l t that subsequent studies should adopt a commission early i n the anticipated development program to determine - 125 - what jobs would be av a i l a b l e , s p e c i f i c job assignments, who would be l a i d o f f , and that the establishment of a r e c l a s s i f i c a t i o n and guidance committee should be essential i n helping the workers to relocate and/or r e t r a i n i n ad vance of l a y - o f f . The Commission's research recommendations served as a basis f o r negotiations between the company and union and a f t e r eight months of bargaining, during which both sides made concessions and compromises, the ta l k s led to an assurance by the company that the entire one hundred and seventy-two employees could and would be reabsorbed. Future Planning B r i t i s h Columbia Towing Industry 1 On December 28, 1964 representatives of the f o r t y - s i x member companies of the B r i t i s h Columbia Towboat Owners' Association and each of the four maritime unions p a r t i c i p a t i n g i n the B r i t i s h Columbia Towing Industry, re presenting some sixteen hundred employees, undertook to study the Impact of past crew reductions on most vessels, due to the introduction of dl e s e l engines and mechanized equipment. The research, directed by a neutral consultant, attempted to establish terms under which the industry See Appendix "C", f o r a f u l l write-up of t h i s case. - 126 - could operate economically while s t i l l r e t aining a s u f f i  cient crew complement. The parties met f o r approximately two years a f t e r the formal signing of a Manpower Assessment Incentive Agreement f o r the purpose of attempting to reach agreement on a l l aspects of manning f o r the present and foreseeable future i n the towing industry. The signing of the Manpower Agreement followed a l  most four years of j o i n t union-association attempts to reach agreement on s u f f i c i e n t crew complements. Although considerable ground work on manning requirements had been achieved and suggestions rendered, implementation of any of these early recommendations was precluded by the assoc ia t i o n ' s fear that a certain segment of the towing indust ry, not bound by any agreement reached, would gain a con siderable competitive advantage by escaping using such re commended manning scales. On the other hand, the unions were determined to have standard manning requirements established based on the b e l i e f that the owners had re duced crew sizes to the point where emphasis on safety i n navigation was of prime concern. A l i k e l y s t r i k e was averted when the Manpower Consultative Service represent ativ e proposed the formation of a Joint Consultative Comm i t t e e . The Committee mediated the arguments of both part ies on the manning issue and examined the Research Sub- Committee's recommendations on a l l aspects of manning. A - 127 - provision was included, i n the Manpower Agreement which bound the parties to the f i n a l decision of the Research Chairman on the issue of manning scales should they f a i l to reach agreement. F i n a l recommendations on manning scales were a r r  ived at a f t e r an exhaustive study of a l l factors that could f e a s i b l y a f f e c t the complement required. Among the more important factors considered were the following: (1) requirements of the Canada Shipping Act; (2) areas of oper at i o n ; and (3) e x i s t i n g manning scales and such physical c h a r a c t e r i s t i c s of the vessels as tonnage, horsepower, length, mechanization, etc. An immense number of b r i e f s and submissions were heard which espoused the viewpoints of the two Interested p a r t i e s , and considerable time was spent attempting to c l a r i f y the meaning of p a r t i c u l a r sections of the Canada Shipping Act, The two p r i n c i p l e s that emerged as fundamental determinants of crew complements were: (1) that there s h a l l not be excessive overtime on voyages, that i s , there s h a l l be a normal twelve-hour day per man; and (2) that there s h a l l be two men p h y s i c a l l y on duty at a l l times the vessel i s underway, but not necessarily two men p h y s i c a l l y i n the wheelhouse at a l l times. A l l recommendations were condit ional upon complying with l e g a l regulations. By November, 1966 the parties found, a f t e r f u l l submission of arguments, that a few Issues remained insurmountable. Accordingly, - 1 2 8 - the parties signed a binding award to l a s t u n t i l March, 196?o On the f i r s t of March, 1967 t h i s award was further extended u n t i l A p r i l , 1968. The binding provisions and an elaboration of t h e i r formation are included i n Appendix " C o A number of other issues were prominent throughout the proceedingso Recommendations were made i n the Re search Report regarding t r a i n i n g f o r new entrants, an apprenticeship program for engineers to provide classroom and on-the-job t r a i n i n g , establishment of industry-wide standards, and compulsory c e r t i f i c a t i o n of operators. Re presentations on these issues were made to the federal Department of Transport and the p r o v i n c i a l Department of Education but no action has yet been effected. The Research Report also contained a recommendation for l i c e n s i n g and steamship inspection of a l l vessels i n the industry. At present, a l l vessels of f i f t e e n tons and over are subject to l i c e n s i n g and inspection regulations but many owners b u i l d special sized vessels f o r the pur pose of escaping these regulations. Federal action has been requested on t h i s issue and there Is some l i k e l i h o o d that the l i c e n s i n g and inspection regulations w i l l be altered to include a l l vessels of nine tons and over. This w i l l , however, s t i l l leave a substantial number of vessels unregulated. The fact that the owners of these unlicensed vessels are not subject to manning regulations gives them - 129 - a competitive advantage over association vessels which i s a constant source of i r r i t a t i o n to the regulated owners and has delayed t h e i r acceptance of many of the Committee's proposals. Indeed, the Research Report stated that no manning program f o r B r i t i s h Columbia w i l l be successful unless the association and non-association vessels come under the same rules. However, recent evidence has i n d i c  ated that some non-association owners are adopting^-by pressure or otherwise—many of the Research Report recomm endations. Interpretation of sections of the Canada Shipping Act as i t pertained to manning requirements i n the towing industry was a d i f f i c u l t task f o r the Research Sub- Committee, Many statements appeared to be confusing, i f not contradictory. A f t e r many attempts to interpret these portions of the Act, the Research Report recommended that these sections needed c l a r i f i c a t i o n . However, indications are that l i t t l e w i l l be gained on t h i s issue. F i n a l l y , the Research Sub-Committee, i n recognizing the complexity of the s i t u a t i o n , the d i f f i c u l t y of i n t e r  pretation of the Canada Shipping Act, and the v a r i e t i e s of problems that could emerge In the future, recommended est ablishment of an industry-wide regulatory B r i t i s h Columbia Tugboat Manning Board, Representation on such a Manning Board would include members of the association, represen ta t i v e s from the unions, a chairman of high repute, and - 130 - possibly representatives of the federal Services regarding regulation and safety. In addition to regulating the manning of vessels, the Manning Board would handle a l l issues Involving standards of working conditions, q u a l i  f i c a t i o n s of workers i n the industry, etc. Application was made to the federal Department of Transport f o r the establishment of such a Manning Board with government authority. However, the request was denied and nothing further has been done to promote such a board. The most important aspect of t h i s adjustment pro gram was settlement of the dispute on manning scales. With t h i s problem removed, the parties have set out to Implement some of the other recommendations. Although the Agreement with the Manpower Consultative Service has terminated, the parties have at least s i x years of j o i n t committee exper ience and have established new sub-committees to i n v e s t i  gate ways and means of gaining t o t a l industry commitment to the Binding Award and to investigate special cases on manning as they a r i s e . Imperial O i l Enterprises Ltd. On J u l y 15, 1966 Imperial O i l Enterprises Ltd. (loco Refinery, B r i t i s h Columbia) signed an agreement establishing a Joint Consultative Committee on automation In accordance with the provisions of an Addendum on Job Security i n i t s current c o l l e c t i v e agreement with the - 131 - union. The Addendum was added upon the recommendation of the p r o v i n c i a l Minister of Labour i n consultation with federal a u t h o r i t i e s during 1965 a f t e r threat of a general s t r i k e . Since the c o l l e c t i v e agreement was due to expire i n 1967, the company agreed to enter into j o i n t consult ation a f t e r being contacted by the Manpower Consultative Service representative. On October 3, 1$66 a Manpower Assessment Incentive Agreement was formally signed. A Research Sub-Committee was established to carry out a research and assessment program. This Research Sub committee j directed and chaired by a neutral consultant was charged with examining the impact of technological change and automation oh conditions of employment at pres ent, and t h e i r possible impact i n the immediate future. The J o i n t Consultative Committee was then to formulate an adjustment plan, based oh the Research Sub-Committee's Re port, to cushion the Impact of future technological change. I n i t i a l l y , the major task of the Research Sub- Committee was In the area of ensuring, employment, Or at least with.setting a regularized procedure f o r reducing employment, at the loco plant. A f t e r careful study, how ever, the Research Sub-Committee concluded that f o r most of the l a s t decade there had been a t t r i t i o n but l i t t l e i n the way of involuntary separation. Nevertheless, I t was obvious the workers were seeking job security as had been indicated by t h e i r recent contract demands f o r increased - 132 - protection. Further research indicated that the high de gree of technological "break-throughs i n o i l r e f i n i n g had not been accompanied by any r e a l i s t i c manpower planning. Consequently, i t was not surprising to f i n d the workers growing more apprehensive with increasing implementation of new technology. In recommending a plan to accommodate manpower ad justment, the Research Sub-Committee f e l t that i t must reliev e the worker of a need to foresee with certainty the trend of his job assignments i n the plant, and also i t must encourage the trained man to stay with his job with out worries about his future. Therefore, a plan was form ulated with the objective of retaining the experience of those employees i n the labour force over f o r t y - f i v e years of age while providing r e t r a i n i n g f o r the younger and proven workers. The plan comprised: (1) s i x months' advance notice of change and severance pay provisions as formulated i n the current c o l l e c t i v e agreement? and (2) special provisions to take effect i n the event that a re assignment of workers due to technological change affected the wages of an i n d i v i d u a l worker. The second part of the plan was composed of four parts based on a combination of age and years of service. I t included provisions that: (1) the most senior group would r e t a i n t h e i r current wage rate u n t i l normal retirement, or r e t i r e with an improved pension; (2) the second most senior group would ret a i n - 133 - t h e i r current wage rate with the opportunity to transfer to other work for which they are q u a l i f i e d ; (3) "the t h i r d most senior group could take advantage of a ret r a i n i n g program to q u a l i f y f o r other jobs i n the plant, or be assigned to other plant work without immediate reduction i n pay; and (4) the lower group would maintain p r i o r claim to those jobs remaining a f t e r changeover. Because of the problem associated with defining when the "automation" plan would take e f f e c t , the Report drew a clear d i s t i n c t i o n between instances which would involve the plan and those that would not. In p a r t i c u l a r , whenever an Individual was to be moved to a new job with a proposed wage rate reduction, and his Job status was to be altered due to changes i n methods of work and production, the Automation and Wage Protection Plan would be activated. In addition to presenting t h i s plan, the Research Director discussed the need f o r f l e x i b i l i t y i n planning. Thus the company was requested to n o t i f y the union of proposed manpower reductions either through formation of a manpower committee or simply by a transfer of information. I t was recommended that management acquaint the union with the manpower outlook at least twice a year. Such n o t i f i c  a t i o n would f u l f i l l the required provision for s i x months1 advance notice on manpower di s l o c a t i o n and also possibly encourage a general discussion on anticipated manpower ad justments f o r the year. - 1 3 4 - The Research Report also recommended that, although outside of the terms of reference of the Sub-Committee, there are several manpower adjustment methods that would complement the plan and are worthy of mention. According l y , i t suggested that any manpower discussions i n a n t i c i  pation of general manpower reductions should: ( 1 ) explore the interplant transfer of employees within Imperial O i l Enterprises; ( 2 ) explore the special p o s i t i o n of workers who have equipped themselves by t r a i n i n g and experience f o r multi-purpose roles i n the refinery; and ( 3 ) explore the f a c i l i t i e s made available through the federal Depart ment of Manpower and Immigration—in p a r t i c u l a r i t s ser vices i n the f i e l d of placement, geographic mobility and t r a i n i n g . Although the recommendations were i n i t i a l l y re ceived with some alarm and areas of disagreement did a r i s e , continued discussion and q u a l i f i c a t i o n resulted i n the J o i n t Consultative Committee accepting the plan i n Feb ruary, 1 9 6 7 . The Research Chairman was then c a l l e d upon to draft the necessary wording for Incorporation of the recommendations into the new c o l l e c t i v e agreements which were being negotiated at the time. Graphic Arts Industry of Toronto The Graphic Arts Industry of Metropolitan Toronto formally established a Joint Union-Management Committee - 135 - under the auspices of the Manpower Consultative Service i n June, 1965o Signing of a Manpower Assessment Incentive Agreement was the result of ef f o r t s made by the l o c a l re presentative of the Manpower Consultative Service. The Committee represented more than one hundred and f i f t e e n employers and eight unions—almost the entire Graphic Arts Industry of Toronto. Although major technological change had not been announced, the industry was i n a continuous state of modernization and major changes were anticipated i n the future, A neutral consultant was chosen to di r e c t a Re search Sub-Committee, whose objectives were to assess: (1) the s p e c i f i c extent to which technological change may be introduced i n the Industry i n the foreseeable future; (2) the changes i n manpower s k i l l both i n quantity and type which w i l l be required to cope with technological change; (3) j u r i s d i c t i o n a l rights of unions, employer h i r i n g prac t i c e s , job and Income security provisions and other s i m i l a r factors which may i n h i b i t adjustment within the Industry; (4) government operated educational and s k i l l t r a i n i n g f a c i l i t i e s a vailable within the Industry which are a v a i l  able to cope with the anticipated changes; and (5) the s k i l l s and po t e n t i a l of employees presently engaged i n the industry. This Sub-Committee was to a r r i v e at conclusions and develop recommendations f o r submission to a l l i n t e r e s t  ed p a r t i e s . - 136 - Through an extensive investigation of the industry and an analysis of questionnaires sent to firms and employ ees an attempt was made to provide answers to the above queries. Research c l e a r l y indicated that a l l sectors of the p r i n t i n g industry had been s t e a d i l y undergoing techno l o g i c a l change which was expected to continue i n the f u t  ure, and which would have permanent effects both upon the structure of the labour force and on the pattern of the industry. These changes are most obvious i n the f i e l d of photo-composition with a l l i t s ramifications, including computerization; new and more e f f i c i e n t plates i n colour p r i n t i n g ; much faster presses; and other more e f f i c i e n t techniques of materials handling, binding processes, etc. In conjunction with these changes, research i n d i c  ated a need f o r r a d i c a l upgrading of manpower s k i l l s . The Research Director recommended that co-ordination of t r a i n  ing and r e t r a i n i n g programs was needed. In general, he found the consensus to be that the formal t r a i n i n g was i n  adequate, the apprenticeship was too long, and the r e c r u i t s were of poor q u a l i t y . Therefore, the t r a i n i n g program was deemed i n need of streamlining and upgrading which, the report recommended, could be accomplished through the est ablishment of a properly organized school f o r the industry. Study showed a need to reduce the time lag between the In troduction of new techniques and a c q u i s i t i o n of new s k i l l s . Questionnaire results indicated that the workers were - 137 - adequately motivated towards upgrading of t h e i r s k i l l s . The Research Director suggested that there were two v a l i d dimensions to a developing worker fear of rapid technological change which, therefore, might i n h i b i t ad justment processeso In the f i r s t case, the worker may f e e l he i s incapable of f u l f i l l i n g the new functions required of him. In the second case, there i s apprehension that a job may not be available to him. Questionnaire results on t h i s issue indicated that f i f t y per cent of the workers f e l t that some Income protection should be given to work ers displaced by automation and changed processes. Seventy per cent of the workers f e l t that machines were indeed re placing men i n t h e i r jobs but only t h i r t y - t h r e e per cent f e l t that they might be replaced. On the whole, there was a healthy attitude towards change i n the industry and a willingness to cope with change by accepting the challenge of r e t r a i n i n g and the need f o r readjustment. The issue of j u r i s d i c t i o n a l rights was dropped from the study agenda as the unions became more co-operative during the ensuing discussions. I t was f e l t that mutual discussion or elimination by future merger would remove many of the technological d i f f i c u l t i e s as they arose. In t h i s regard a separate committee was established i n the Toronto area to work out a program by which merger of the various unions i n the graphic arts f i e l d could be achieved. The Research Director concluded that technological - 138 - change would continue to open up new avenues of production and employment and that any redundancy i n routine c l e r i c a l or manual tasks r e s u l t i n g from increased automation should be more than offset by the demand f o r new s k i l l s which the automated processes would bring i n t h e i r t r a i n . The Joint Committee f e l t that the recommended school should be directed by representatives of the em ployees and employers i n an attempt to bring i t into closer co-ordination with the requirements of the industry. Such a school would provide the basis f o r apprenticeship, t r a i n i n g and worker r e t r a i n i n g and, i n the f i n a l analysis, provide f o r the co-ordination of a l l t r a i n i n g schemes currently active i n the graphic arts industry i n the Met ropolitan Toronto area. Without such a school, I t was argued, one of the more important areas of O n t a r i o ^ econ omy would d r a s t i c a l l y suffer by f a i l i n g to a t t r a c t the re quired q u a l i t y of entrants into the occupation. The J o i n t Committee subsequently requested that the p r o v i n c i a l a u t h o r i t i e s e s t a b l i s h a properly organized school for the industry. As a res u l t of meetings with p r o v i n c i a l a u t h o r i t i e s , however, the Committee has been asked to supply more detailed information, p a r t i c u l a r l y with regard to the t o t a l annual absorption into the indus t r y , the type, knowledge and s k i l l s which would be required and several other factors which would a i d i n the deter mination of the size and nature of the educational f a c i l i t y - 139 - to "be established. Consequently, the Committee i s carry ing out ad d i t i o n a l research i n an e f f o r t to bring these factors into sharper focus. V i c t o r i a Mechanical I n d u s t r i a l Relations Association The Trustees of the Mechanical Industry Promotion Fund of V i c t o r i a , B r i t i s h Columbia, representing the V i c t  o r i a Mechanical I n d u s t r i a l Relations Association and the United Association of Journeymen and Apprentices of the Plumbing and P i p e f i t t i n g Industry of the United States and Canada, Local 324, entered into a Manpower Assessment In centive Agreement with the Manpower Consultative Service i n J u l y , 1966. The impetus behind t h i s agreement came from the parties" desire to emulate a s i m i l a r study completed i n Vancouver. The Trustees, representing about three hundred workers, agreed to assess the demand f o r s k i l l e d manpower In the plumbing and p l p e f i t t i n g industry to 1970 based on projections of construction volume on Vancouver Island, from Duncan to V i c t o r i a , as follows: (1) an inventory of the present membership of Local 324 w i l l be undertaken by c r a f t , age, additional p r o f i c i e n c i e s or s k i l l s , and by both construction a c t i v i t y and shipyard employment; (2) an assessment w i l l be made of the present u t i l i z a t i o n of the manpower resource i n annual man-hour terms, r e l a t i v e to the present demand f o r manpower i n the industry; (3) - 140 - an assessment w i l l be made of the demand f o r s k i l l e d man power i n the industry to 1 9 7 0 , based on projections of construction volume i n the region, by sectors, and e s t i  mates of mechanical construction manpower man-hour cont ent, and projected demand i n the shipyards and dockyards i n the area; (4) an estimate w i l l be made of any a n t i c i  pated surplus or shortage of s k i l l e d manpower, by basic c r a f t type; and ( 5 ) recommendations w i l l be offered re garding e f f o r t s by the industry to correct any projected manpower demand/supply imbalance, including apprenticeship, recruitment, t r a i n i n g and mobi l i t y . This program i s currently near the f i n a l stages of completion. A s i m i l a r study i n Vancouver, involving three thousand f i v e hundred workers, i s now completed and i n operation. A quarterly report i s published showing the anticipated needs of the industry and what r e t r a i n i n g w i l l be required to meet the forecasted projections. V. SUMMARY The government sponsbred Joint study committee has been related as the t h i r d step i n a sequence of manpower adjustment approaches that attempt to overcome the com plex problems associated with technological displacement. The value of t h i s j o i n t problem-solving approach has been appreciated i n Canada because the technique at once s a t i s  f i e s the p r i n c i p l e s necessary to constructive action and - 141 - the requirements of the free c o l l e c t i v e bargaining system. The government Is s t r i v i n g , through various incent ives, to motivate companies and unions to solve the pro blems of manpower displacement i n advance of any crises developing. The information presented i n t h i s chapter, leavened with the knowledge brought f o r t h from Chapters II and III , provides the necessary background material f o r evaluating the role of the Manpower Consultative Service i n f a c i l i t a t i n g manpower adjustment. CHAPTER V EVALUATION OF THE MANPOWER CONSULTATIVE SERVICE APPROACH I. INTRODUCTION I t i s the aim of t h i s report to concentrate on developing an evaluation which w i l l allow f o r recommending improvements, not over-emphasizing any shortcomings of the Manpower Consultative Service. The purposes, as stated i n Chapter I, w i l l he f u l f i l l e d by f i r s t analyzing, contras t i n g and comparing the selected cases on manpower adjust ment to determine i f a eommon pattern of case development e x i s t s . The search for such a pattern w i l l endeavour to put the Manpower Consultative Service i n context, to ex pose i t s strengths and/or weaknesses and to establish i f any s i m i l a r i t y e x ists i n approaches to the cases that could serve as a useful guide i n developing future pro grams. The next major section of t h i s chapter w i l l exam ine the Manpower Consultative Service methodology i n an attempt to o f f e r recommendations f o r overcoming any weak nesses exposed In the integrated analysis. Thus, the form ulated p r i n c i p l e s and approach of the Manpower Consult at i v e Service w i l l be examined i n the l i g h t of the empir i c a l framework and case summaries presented. F i n a l l y , the case results w i l l be examined to determine I f the Manpower • - U 3 - Consultative Service i s f u l f i l l i n g i t s role i n enhancing an active national manpower policy,. In each case recommendat ions w i l l be made to strengthen or otherwise change the present approach to conform with the rationale of an active manpower p o l i c y presented at the beginning of Chapter IV. I I . INTEGRATED CASE ANALYSIS The method to be used i n a r r i v i n g at the proper perspective of the Manpower Consultative Service i n f a c i l  i t a t i n g manpower adjustment w i l l be by extension of the continuum proposed i n introducing the selected case studies i n Chapter IV. The continuum i s established to indicate the pattern of adjustment problems and the various solu tions that are available depending on the location of the case study along the continuum. The respective roles of the union and government i n providing f o r manpower adjust ment w i l l also be analyzed and then added to the continuum„ The aim of the above analysis i s to allow f o r development of a s i m p l i f i e d , predictive model of manpower adjustment such that the Manpower Consultative Service can be put i n context, and otherwise portray the strengths and/or weak nesses of the current process„ Three Phases of Work Force Adjustment In reviewing the cases three d e f i n i t e phases i n the ease of work force adjustment are discernible and can - 144 - be placed along a continuum. In the f i r s t phase of the continuum plant closure i s imminent and there i s notice able geographic and/or I n d u s t r i a l redundancy. The prime variable within t h i s phase i s the degree of redundancy and i t can be viewed as large scale disaster, t y p i f i e d by geographical redundancy, from the lower end of the con tinuum to a less severe i n d u s t r i a l redundancy moving right to the end of the phase. For example, a plant shutdown that cripples a community becomes a national disaster area and would s t a r t the continuum. At the right end of phase one a plant shutdown may only result i n a small o v e r a l l effect on the community at large and the displaced workers may be more r e a d i l y absorbed. Domtar Pulp and Paper, Port- neuf, and Mount Royal Rice M i l l s are ease examples of plant closures that are situated i n t h i s phase. In the former case the welfare of the small community of Portneuf i s severely affected and geographical mobility i s deemed axiomatic. Mount Royal also involves plant closure but i t i s placed further to the right of phase one on the con tinuum by v i r t u e pf i t s location i n Montreal. Although plant closure at Mount Royal w i l l c l e a r l y r e s u l t i n d i s  placement, many of the workers w i l l look f o r new positions i n Montreal and geographic worker mobility i s not so ess e n t i a l . I f a work force Is h i t by occupational redundancy, there Is a p o s s i b i l i t y of solution by i n t e r n a l adjustment = 145 - through the plant or Interplant, or otherwise through the labour market. This step may border on phase one but under most conditions could be viewed as belonging i n phase two. The main c r i t e r i o n i n t h i s phase of the continuum usually centers around the introduction of new processes that w i l l l i k e l y r e s u l t i n work force reductions but which are i n  creasingly capable of i n t e r n a l adjustment. At the l e f t or lower end of the phase the numbers l a i d off may be large enough that the s i t u a t i o n i s s i m i l a r to redundancy and i n some cases may require s i m i l a r adjustment methods. How ever, the continuum i s based upon the ease of i n t e r n a l adjustment and, therefore, provision must be made to allow for some overlapping of these phases, Canadian P a c i f i c A i r Lines and Canadian National Railways are examples of cases l y i n g at the lower end of phase two. While Canadian P a c i f i c has a much lower number of affected workers than does Canadian National, the a b i l i t y to effect an i n t e r n a l adjustment plan i s believed to be greater with Canadian National than With Canadian P a c i f i c , Moving right along phase two the prime variable be comes the increasing ease with which i n t e r n a l adjustment i s possible, Manitoba R o l l i n g M i l l s and Domtar, Windsor are examples of cases involving an Increasing degree of in t e r n a l adjustment and a decreasing degree of work force reduction, Canadian National Railways, Manitoba R o l l i n g M i l l s and Domtar, Windsor also involve decreasing degrees - 146 - of o v e r a l l effect on t h e i r communities 1 labour force. While Canadian National involves much more use of external adjustment mechanisms, Manitoba R o l l i n g M i l l s involves considerable readjustment i n t e r n a l l y and Domtar, Windsor results i n t o t a l work force absorption through i n t e r n a l adjustment. Consequently, the continuum has expanded i n r e l a t i v e terms from t o t a l redundancy and plant closure i n phase one to the possible complete readjustment of work ers at the r i g h t end of phase two. There i s another possible overlap between phase two and three because imminent lay - o f f i n phase two may not materialize or, on the other hand, future planning i n phase three may r e s u l t i n l a y - o f f s that were not expected. Although there i s no imminent worker lay-off expected i n the B r i t i s h Columbia Towing Industry or at Imperial O i l there has been enough displacement i n the past to create fear and uncertainty i n the minds of the workers about t h e i r future positions. In the B r i t i s h Columbia Towing Industry work force reductions over the years have been made on a continuing basis leaving the workers insecure i n t h e i r jobs. Imperial O i l has introduced major changes i n the past and, although no major changes have been i n t r o  duced i n recent years^ the worker has also been l e f t with a f e e l i n g of uncertainty. As planning of manpower requirements extends f a r  ther into the future, the prime variable becomes an _ 1 4 ? - Increasing degree of s t a b i l i t y i n the work force and d i s  placement becomes more remote at the right end of the con tinuum. In the Graphic Arts case an attempt was made to delineate the future changes expected and consequently prepare the work force by providing i n advance f o r needed adjustments to meet the changing technology,. In the Plumbing Industry t h i s example i s being carr i e d to the ultimate through quarterly attempts at updating ten year forecasts of supply/demand factors i n the industry's work force„ Such future manpower planning should provide easy adjustment to any imbalances created i n the labour market. Three Stages of Union Defence There i s considerable advantage to viewing the j o i n t committee cases as situated along such a continuum. Such an appraisal indicates the p o s s i b i l i t y that certain oases are amenable to c o l l e c t i v e bargaining adjustment techniques, certain cases are more amenable to government adjustment services and possibly, i n other circumstances, a combination of both are necessary i n each p a r t i c u l a r phase of the continuum. Indeed, e a r l i e r i n the report there was mention made of three stages that unions invoke In attempting to control the pace of technological innov a t i o n 1 . These three stages of union defence p a r a l l e l See Chapter I I , The Desired Mix Section, p. 5 0 . - 148 - quite r e a d i l y the three phases that the cases viewed above appear to follow. Therefore, s t a r t i n g i n reverse from the right end of a second continuum the union's l i n e of defence i s viewed as s h i f t i n g i n emphasis from Issues of job and wage maintenance to increasing the economic unit of oppor t u n i t y to severance as worker displacement increases from job Insecurity to i n t e r n a l adjustment to overt l a y - o f f . Possibly the ultimate i n manpower planning to date Is provided by the Graphic Arts Industry of Toronto and the Plumbing Industry of B r i t i s h Columbia cases which are placed at the right end of a continuum of union defence. In these cases j o i n t research i s attempted by represent atives of management and union to provide f o r manpower ad justment i n the industry i n advance of technological changes. Any imbalances i n supply can be r e a d i l y adjusted f o r i n advance of any developments that might prove ser ious to the industry and the worker; I t i s doubtful, how ever, i f unions i n general w i l l be able to demand such action on a large scale. The more competitive environment expected i n the future w i l l probably preclude most enter prises from divulging the required information from whioh to make such forecasts. However, i f firms i n an industry can combine into associations as they have i n the above industry oases, then the pot e n t i a l does exist f o r a high degree of advance manpower adjustment with a minimum of crise s and l a y - o f f s . - 149 - Barbash views the unions i n the f i r s t stage of defence as t r y i n g to "...seek contractual provisions which prohibit l a y  offs of e x i s t i n g personnel, or prohibit reduction i n wage rates f o r Incumbents ( 1 r e d - c i r c l i n g 1 ) or at least f o r senior employees, or freeze a speci f i c manning schedule during the l i f e of the agree ment. The union demand fo r reduction i n hours, . . . i s p l a i n l y . . . f o r the sharing of scarce jobs. Supplementary unemployment benefits are seen as providing the employer with an incentive f o r the s t a b i l i z a t i o n of employment. The renewed interest i n earnings s t a b i l i z a t i o n may represent the second half-stage (within stage one) a f t e r job protection. [For example the guaranteed annual wage and the philosophy of sa l a r i e s f o r a l l workers.]...In order to maintain earnings some unions have proposed a redesigning of wage pay ment and job c l a s s i f i c a t i o n systems i n accordance with the r a d i c a l l y a l t e r e d work spe c i f i c a t i o n s of the automated job„"x Stage one as espoused by Barbash appears to match s i g n i f i c a n t l y with phase three of work force adjustment or the future planning phase. As the planning phase i s free of any re a l c r i s i s , the union demands are based on r e l a t  i v e l y high security, and, therefore, methods of maintaining e x i s t i n g job holders i n t h e i r jobs at e x i s t i n g l e v e l s of earnings are of utmost importance. The cases presented i n Chapter IV exhibit the above ch a r a c t e r i s t i c s quite adequately. The B r i t i s h Columbia Towing Industry's pre-occupation with the manning scales of vessels i s a di r e c t i n d i c a t i o n of the unions' desire f o r iBarbash, Jack. 0j>. C i t . , p. 47. - 150 - maintenance of e x i s t i n g jobs. Indeed, the binding award provided f o r such security by requiring vessels to be manned with a s p e c i f i c crew complement. Imperial O i l provides an example wherein the union accomplished wage maintenance through red c i r c l e provisions f o r i t s members. In t h i s case uncertainty existed i n the minds of the work ers but a t t r i t i o n had more than provided f o r an adequate reduction i n work force. Therefore, wage maintenance provided the security the workers needed to calm anxieties about any approaching technological change. In stage two—where Barbash thinks most of the unions a r e — "...the union strategy shifts...toward moderating the impact of displacement through contract clauses which seek to ease the period of trans i t i o n , .. .unions seek to widen the s e n i o r i t y unit to take i n inte r p l a n t , intercompany, arid i n t e r - area transfers as a matter of right f o r displaced workers. With increasing frequency unions are also asking i n negotiations f or relocation allowances and r e t r a i n i n g . ...unions are asking for the right to pa r t i c i p a t e i n some systematic fashion i n the projection of technological change, plant shutdown, or reloc a t i o n . The simpler forms of p a r t i c i p a t i o n i n  volve advance notice and advisory consultation. More elaborate are the j o i n t consultation pro grams with research functions and with provis ions f o r p a r t i c i p a t i o n of public or private t h i r d p a r t i e s . " 1 Stage two p a r a l l e l s the second phase that was developed from the previous analysis of Internal adjustment I b i d . , pp. 47-48. - i 5 l - i n the case studies. Por example, as the po t e n t i a l f o r worker l a y - o f f becomes more severe, the union i s seen to recognize that to a certain degree job and earnings a t t  r i t i o n i s inevitable and the s h i f t of emphasis by the union i s toward measures to cushion the shock of d i s  placement. Possibly the most Important aspect of concern to t h i s report i n t h i s second stage i s that advance notice and j o i n t research are introduced as an ef f e c t i v e l i n e of union defence. Manitoba R o l l i n g M i l l s provides an example wherein the larger portion of i t s workers were to be displaced but the modernization was such that many of the workers w i l l be reassigned to new positions. The union's approach i s one of ensuring a maximum of i n t e r n a l adjustment by ex panding as f a r as possible the unit of economic opport unity. In the f i n a l a n a l y s i s , a case such as Domtar, Windsor, portrays an adjustment procedure whereby the union accomplishes i t s objective of t o t a l i n t e r n a l adjust ment i n the face of major technological change, through planning techniques that completely reabsorb the entire work force. As stage two of the continuum reaches further l e f t , the union's po s i t i o n becomes more defensive and i t takes recourse to members that are being retained to help pro vide the required sanctions on management actions. Conseq uently, i n the two more d i f f i c u l t cases of i n t e r n a l - 152 - adjustment In phase two the union must increasingly r e l y on severance while s t r i v i n g f o r maximum in t e r n a l adjust ment. In the Canadian P a c i f i c A i r Lines case, f o r example, a p o t e n t i a l exists f o r absorbing some redundant navigators by r e t r a i n i n g them as p i l o t s but few other possible aven ues within the company are p r a c t i c a l f o r absorbing those remaining. In the Canadian National case many of the stevedores have been retrained as crew members on the new vessels and others w i l l be adapted to operate the new f a c i l i t i e s that are being introduced. In both cases, however, i t Is obvious that the ease of i n t e r n a l adjust ment decreases as a potential adjustment method and sever ance payments become the only l i n e of defence l e f t to the unions i n helping to cushion the impact on the workers. The Domtar, Windsor and Canadian National adjustment pro cedures do have the advantage of recourse to other oper ati n g areas i n expanding the economic u n i t . As Canadian National must relocate workers elsewhere, i t f a l l s more to the l e f t on the union continuum as i n t e r n a l adjustment i s less feasible and geographic mobility becomes necessary. The t h i r d stage of the union's defence mechanism— "...the most s t r i k i n g i n terms of conception— turns on the e x p l i c i t recognition of the p r i n  c i p l e that employees have vested rights i n t h e i r jobs and that the loss of these jobs and job rights should be compensated by a f i n a n c i a l settlement. This p r i n c i p l e has been i m p l i c i t l y recognized i n established c o l l e c t i v e bargaining provisions through severance pay, dismissal pay, or terminal payments ( i n the nature of l i q u i d a t i o n - 153 - of prorated rights i n unused vacation and sick leave), and more recently i n the augmenting of supplementary unemployment benefits by a separ ation-pay p r o v i s i o n . " 1 The union's t h i r d l i n e of defence, which can co exist with stage two, i s an attempt by the union to gain a f i n a n c i a l settlement f o r the l a i d - o f f workers i n return f o r which the employer Is permitted greater freedom i n deployment of manpower. In the most c r i t i c a l phase of work force reduction, where plant closure i s imminent, the union w i l l l i k e l y make some attempt at relocation to another plant or area, but i f t h i s i s not fea s i b l e then f i n a n c i a l settlement i s the natural progression. Thus, stages two and three of union defence or stage three alone i s quite compatible with the f i r s t phase of work force reduction,, This union reaction appears to evolve i n the cases presented. Por example, i n the Domtar, Portneuf case the union made demands f o r severance provisions and then attempted as f a r as possible to expand i t s eoonomie unit of opportunity. The union's demand f o r severance tempered with r e t r a i n i n g and relocation i s also prevalent i n the Mount Royal Rice M i l l s Case. I t i s obvious, however, that the unions' demands can not have much strength as t h e i r p o s ition i s more l i k e l y at the meroy of the s o c i a l conscience 1 I b l d . , p. 48. - 1 5 4 - of management and whatever pressure that the public may exert In the union's favour. Co-ordination of Manpower Services The t h i r d area f o r analysis, and indeed the major emphasis of t h i s report, centers on the manpower adjust ment services provided by the government and co-ordinated by the Manpower Consultative Service as an a i d to labour and management. The governmental influence on the adjust ment process must be viewed i n two parts. In the f i r s t place, management action i s not free of the constraints of regulatory l e g i s l a t i o n such as that which governs mini mum wages, maximum hours, etc. Technological change has induced an added interest i n l e g i s l a t i v e enactment. Unions have pointed considerable emphasis i n t h i s d i r e c t i o n due to the inherent l i m i t a t i o n s on the bargaining process. Accordingly, Issues such as r e l i e v i n g the pro blems of distressed areas, r e t r a i n i n g and other s i m i l a r p o l i c y matters dealing with creation of jobs are consid ered by unions to be the r i g h t f u l concern f o r broad, economy-wide l e g i s l a t i o n . Beyond t h i s d i r e c t form of government regulation, there i s provision for many reactive mechanisms that fac i l i t a t e the adjustment procedure. Government sponsored t r a i n i n g , r e t r a i n i n g , m o b i l i t y , counselling and place ment f a c i l i t i e s are services by which the government i n -- 155 - f l u e n c e s the proposed a d j u s t m e n t p r o c e s s "by c r e a t i n g a more f l e x i b l e and a d a p t i v e l a b o u r market, I n a d d i t i o n , t h e Manpower C o n s u l t a t i v e S e r v i c e and s i m i l a r s e r v i c e s a r e p r o v i d e d i n an a t t e m p t t o encourage more s o p h i s t i c a t i o n and m a t u r i t y i n labour-management r e l a t i o n s , as w e l l as t o c o - o r d i n a t e t h e o t h e r f a c i l i t a t i n g s e r v i c e s 0 I n phase one o f t h e continuum t h e u n i o n a t t e m p t s t o g a i n something more t h a n a se v e r a n c e s e t t l e m e n t b u t i n t h e f a c e o f economic c r i s i s i t w i l l have l i t t l e s u c c e s s . The u n i o n i s more l i k e l y t o a c h i e v e some measure o f work e r a d j u s t m e n t a t t h i s end o f t h e continuum by t a k i n g d i r e c t r e c o u r s e t o t h e government s e r v i c e s . P a s t e x p e r i e n c e has shown t h a t p r i v a t e company and u n i o n a t t e m p t s a t r e t r a i n  i n g and r e l o c a t i o n have met w i t h l i t t l e s u c c e s s 1 , Domtar, P o r t n e u f and Mount R o y a l R i c e M i l l s a d j u s t m e n t p r o c e d u r e s have r e l i e d on c o u n s e l l i n g , r e l o c a t i o n and placement s e r  v i c e s . I n a d d i t i o n , Domtar, P o r t n e u f a t t e m p t s t o seek some a i d f o r a r e a redevelopment whereas Mount R o y a l recommends r e t r a i n i n g . There i s l i t t l e change i n government f a c i l i t a t i n g a c t i o n a s t h e continuum moves f u r t h e r i n t o t h e i n t e r n a l a d j u s t m e n t phase, Canadian P a c i f i c A i r L i n e s s t u d y p r o  cedures a r e a t t e m p t i n g t o i n c l u d e I n t e r v i e w i n g , r e t r a i n i n g , ^See C h a p t e r I I I , U n i t e d S t a t e s E x p e r i e n c e S e c t i o n , Po 74, - 156 relocation and replacement services. The Canadian Nation a l case not only attempts to use a l l of these services but establishes special research studies i n an attempt to seek out reasons f o r emerging d i f f i c u l t i e s . And Manitoba R o l l  ing M i l l s , Domtar, Windsor, B r i t i s h Columbia Towing In dustry and Imperial O i l cases a l l make use of, or at least examine the potential use of, these services i n enhancing t h e i r adjustment process. The only change i n provision of government services across the whole continuum i s evid ent at the extreme right end of the scale. Here, advance planning i s developed to such a stage that provision f o r relocation i s not considered necessary because the supply/ demand factors have been anticipated i n advance. Because of t h i s , provision f o r t r a i n i n g Is substituted f o r reloc ation as a necessary service. Consequently, the Graphic Arts and the Plumbing Industry oases concentrate on coun s e l l i n g , t r a i n i n g , placement and r e t r a i n i n g i n effecting t h e i r recommendations f o r future work force adjustments. Variable Factors The above analysis has v e r i f i e d the fact that, at least on a broad scale, there i s an action-reaction pattern evident In the cases studied. Obviously, no one i s going to suggest that Domtar, Portneuf employees should demand wage of job maintenance. On the other hand, provision f o r a mobility incentive would do l i t t l e to s a t i s f y the workers - 157 - at Imperial O i l . Closer examination of some of the v a r i - able d e t a i l s of the selected cases, however, w i l l c l e a r l y show the f u t i l i t y involved i n looking f o r a more s o p h i s t i  cated pattern. The type or degree of technological change being introduced can have a varying e f f e c t . The e f f e c t , how ever, can also be s i m i l a r anywhere along the continuum. Past experience at Imperial O i l Indicates some major changes have been made. However, the case i n point has developed a f t e r almost a decade of u t i l i z i n g a t t r i t i o n as the only means of work force reduction. Computers and other major advances are either anticipated or being i n  s t a l l e d i n the Graphic Arts Industry, at Manitoba R o l l i n g M i l l s and at Canadian P a c i f i c A i r Lines. On the other hand, the B r i t i s h Columbia Towing Industry and the o i l industry are experiencing continual changes to more e f f i  cient operations. The type of enterprise involved i n the cases i s extremely varied. The studies involve p a r t i c i p a t i o n by entire industries i n a s p e c i f i o area such as the Graphic Arts and Plumbing cases, p a r t i a l industries as i n the B r i t i s h Columbia Towing Industry case, multi-operational enterprises such as the Canadian National Railways, Dom ta r Pulp and Paper and Imperial O i l cases, subsidiary organizations such as the Manitoba R o l l i n g M i l l s case and single companies such as the Mount Royal Rice M i l l s and - 158 - Canadian P a c i f i c A i r Lines cases. The degree of accommodation between the parties can vary from the loggerhead s i t u a t i o n of'the B r i t i s h Columbia Towing Industry case, to the r e l a t i v e l y low accommodation i n the Imperial O i l case, to the constructive approaches taken In the Plumbing and Graphic Arts Industry cases. Also, the number of unions involved i n a single case can vary greatly. There were eight unions p a r t i c i p a t i n g i n the Graphic Arts Industry case, four i n the B r i t i s h Colum bia Towing Industry case and one i n the Canadian P a c i f i c A i r Lines and Imperial O i l cases. C l e a r l y , the many ramifications of t h i s type of examination precludes the development of any definable pattern beyond what has been indicated by the above analy s i s . Studies of the many plans developed i n the United States have shown that each adjustment procedure must be tailor-made to the p a r t i c u l a r s i t u a t i o n i t faces. Con sequently, no further attempt w i l l be made i n t h i s study to develop a case pattern beyond that presented. The analysis has developed thus f a r with the i n i t  i a l assumption that other influencing forces such as union strength, economic environment, the laws within which dec isions must be made and other variables were to be set aside temporarily. A f i n a l addition to the analysis, therefore, must be the Introduction of environmental factors and l e g i s l a t i o n to encompass a l l the other forces - 159 - that have an effect on any outcome that would normally he anticipated. In sum, therefore, the conclusion of the case anal ysis i s that a broad s i m p l i f i e d framework or continuum i s di s c e r n i b l e . Across such a continuum, three r e l a t i v e l y c l ear phases of management action emerge and they are de fended by three r e l a t i v e l y d i s t i n c t union reactions. Government support i s also offered to help to f a c i l i t a t e worker adjustment. Government services are, f o r the most part, general throughout the continuum and are c a l l e d upon to the extent that they enhance the o v e r a l l adjust ment process. The Manpower Consultative Service i n Context Whereas the cases examined show the re s u l t of management action, the three stages of defence are seen as union reaction. However, the i n i t i a t i v e f o r introducing technological improvements to maintain a dynamic enter prise l i e s with management. Managements aot and unions r e a c t 1 . C o l l e c t i v e bargaining by I t s very nature lags the aot. Consequently, the process i s ine v i t a b l y slow and re presents adjustments or lack of adjustments to events that have already occurred. Management i s i n the po s i t i o n of knowing i n advance Block, Joseph W. Ojg. C i t . . p. 137. - 160 - what changes are going to take place and how these changes are going to a f f e c t employees. Only management i s i n a pos i t i o n to make an analysis to determine what alternatives can be provided within the enterprise f o r those displaced. Management action upon introducing technological change can be viewed within the above framework as being r a d i c a l or conservative from one end of the continuum to the other. The action i s deemed r a d i c a l to the extent that i t seeks to overturn the p r e v a i l i n g structure of work rules and " l o c a l practice" clauses i n one concentrated attack. On the other hand, conservative action i s viewed as no less concerned with union obstacles to productive e f f i c i e n c y , but i t i s reconciled to the strategy that progress i n t h i s area w i l l have to be made gradually by acquiescence rather than by d i r e c t f r o n t a l a t t a c k 1 . The foregoing analysis can be used as the basis f o r the development of a s i m p l i f i e d action-reaction model as shown i n Figure 1 — r e c o g n i z i n g the need f o r f l e x i b i l i t y i n the d i v i d i n g l i n e s . The model emphasizes the type of ad justment reaction required to offset p a r t i c u l a r management action and places the Manpower Consultative Service funct ion i n context as interpreted i n t h i s a nalysis. This report i s interested i n the continuum to the extent that the Manpower Consultative Service can co- See Chapter I I , The Desired Mix Section, pp. 52- 53. Management Action Union Reaction Government Reaction Manpower Consultative Service Environmental Factors T and Plant Closure Internal Adjustment L e g i s l a t i o n Future Planning S e v e r a n c e I n c r e a s e E c o n o m i c U n i t Job and Wage Maintenance Counselling Retraining Relocation Placement Counselling Retraining Relocation Placement Counselling Retraining Training Placement J o i n t S t u d y C o m m i t t e e s ON 1 FIGURE 1 ACTION-REACTION MODEL - 162 - ordinate government manpower services and j o i n t labour- management studies can be i n i t i a t e d to ease worker d i s  placement. C l e a r l y , there i s a l i m i t a t i o n on the Man power Consultative Service process at both ends of the continuum. On the right end, f o r example, the future plans of management may be unknown to the union and there w i l l be l i t t l e incentive or pressure towards j o i n t study. In t h i s area the government can only foeus attention on encouraging managements to p r i o r planning and to give ad vance n o t i f i c a t i o n of any anticipated changes to the workers concerned. On the l e f t end of the eontinuum, a single company may close I t s plant f o r economic reasons and there i s l i t t l e l i k e l i h o o d that the union w i l l have any recourse to the company beyond the terms of i t s c o l l e c t i v e agreement. Barbash has seen t h i s l i m i t a t i o n i n scope. He views the use of Joint study committees as f a l l i n g within the second stage of union defence. Dr, Dymond emphasized a further c o n s t r i c t i o n when he suggested that the parties normally enter a j o i n t approach only as a l a s t resort a f t e r a l l other methods have f a i l e d . Even then i t w i l l l i k e l y be r e s t r i c t e d to cases where the unions are strong enough to pressure management into j o i n i n g with them i n future planning. And, most important of a l l , the Manpower Consultative Service approach i s l i m i t e d to those cases where the parties deem I t advisable to have a t h i r d party - 163 - recommend an adjustment plan to solve t h e i r problems. Beyond t h i s l i m i t e d range of a p p l i c a b i l i t y of the Manpower Consultative Service approach there are also the l i m i t a t i o n s that were voiced about c o l l e c t i v e bargaining i n Chapter I I , ' The Manpower Consultative Service i n the context presented i n the model, and further l i m i t e d as above, i s seen to have the following a p p l i c a b i l i t y : (1) i t f a c i l i t  ates manpower adjustment by co-ordination of the govern ment's manpower services i n the area of the continuum where j o i n t study i s most f e a s i b l e ; (2) i t i s available where the union has enough strength to force the j o i n t approach; (3) i t i s available where labour-management acc ommodation makes i t untenable f o r the parties to carry on i n t h e i r present state of r e l a t i o n s ; and (4) i t i s a v a i l  able where the parties believe some advantage i s to be gained by the use of a t h i r d party. One other noteworthy s i m i l a r i t y i n the cases stud ied should be emphasized. This s i m i l a r i t y l i e s i n the use, i n most cases, of an academic research chairman to assess the displacement problem and recommend an adjust ment plan. This issue i s of paramount importance i n deter mining an emergent pattern because most of these academic researchers have a s i m i l a r background within which they approach the manpower problem. In general, a review of the cases indicates that each researcher uses a s i m i l a r - 164 - set of guiding p r i n c i p l e s . The many United States plans and t h e i r r e s u l t i n g recommendations do not share t h i s common base and consequently, are accepted as developing into more diverse solutions,, I t must also be recognized that the solutions to Canadian cases are, f o r the most part, l i m i t e d to the degree of sophistication displayed by these research chairmen, as they normally are respon s i b l e f o r the development of the adjustment plan. In summary, the model that has emerged from a generalized analysis of the case studies, leavened with the theory developed i n e a r l i e r chapters, provides a pot e n t i a l device f o r categorizing the approach to be used by the Manpower Consultative Service i n e f f e c t i n g a manpower adjustment program. The main point of t h i s exercise was to determine whether or not there i s any pattern emerging i n the Man power Consultative Service cases that can be used i n app roaching future adjustment problems. I t can be concluded from the above analysis that the Manpower Consultative Service cases w i l l normally involve adjustment procedures that are s i m i l a r i n the broad perspective to those i n d i c  ated i n the model. As other studies have proved, however, each case w i l l require a detailed adjustment plan t a i l o r - made to i t s p a r t i c u l a r circumstances. Also the degree of sophistication evident i n each adjustment procedure w i l l be considerably influenced by the e f f o r t s of the research - 165 - director,, There i s a second conclusion that can be drawn from the above analysis„ Clearly, the role of the Manpower Consultative Service i n e f f e c t i n g manpower adjustment suf fers from the many l i m i t a t i o n s which have been related aboveo I f the Manpower Consultative Service approach i s to become an e f f e c t i v e wide-ranging approach i n the co ordination of manpower services to f a c i l i t a t e manpower adjustment as i t s objective of enhancing the national man power po l i c y would require, then i t i s obvious that some means of overcoming i t s l i m i t a t i o n s must be found;. I I I . EXAMINATION OF THE MANPOWER CONSULTATIVE SERVICE METHODOLOGY The second purpose of t h i s report i s to examine the Manpower Consultative Service methodology i n an a t t  empt to determine i f the p r i n c i p l e s and approach are adequate with respect to the stated objectives of the Ser vi c e , and whether they are being adhered to i n practice. Accordingly i t w i l l be useful to review the p r i n c i p l e s and approach that are either r e s t r i c t i n g the role of the Ser vice or otherwise providing an inadequate base on which to f u l f i l l I t s objective of enhancing an active manpower p o l i c y . E s s e n t i a l l y the p r i n c i p l e s of the Manpower Con s u l t a t i v e Service provide f o r advance research and - 166 - assessment; j o i n t consultation to remove obstacles to con st r u c t i v e action; and, e f f e c t i v e co-ordination of e x i s t i n g government services at the plant l e v e l . There i s adequate substance i n t h i s formulation of p r i n c i p l e s to provide f o r the enhancement of an active national manpower p o l i c y . How ever, the context within which the Manpower Consultative Service emerged i n the model of the l a s t section provides ample evidence of i t s narrow a p p l i c a b i l i t y . The succeed ing sections of t h i s chapter w i l l examine the Manpower Consultative Service methodology i n an attempt to expose some aspects that warrant reappraisal i f the Service i s to be strengthened and consequently achieve i t s stated objectives. Active Versus Passive Approach The Manpower Consultative Service acts as a c a t a l  yst In the adjustment process but, In p r i n c i p l e , only i f approached, v i z . "to unions and management who desire i t . " This p r i n c i p l e has been c r i t i c i z e d by labour and by some academics who suggest that manpower p o l i c i e s must be act ive and to be e f f e c t i v e cannot be merely responsive. Mr. Morris, Executive Vice-President of the Canadian Labour Congress, has stated that the Manpower Consultative Ser vice i s "A case i n point....Its terms of reference, as I understand them, do not permit i t to go a c t i v e l y into the f i e l d to seek out cases of manpower - 16? - imbalance before they have reached a c r i t i c a l stageo Rather the i n i t i a t i v e i s expected to be taken by the firm and the union, and then the Service i s to respond with advice." 1 He suggests that the Manpower Consultative Service can only be e f f e c t i v e i f i t of some other manpower agency i s taking an active role and states that to date "the general tone of our whole manpower p o l i c y i s passive." 2 Mr. Morris also quotes Professor Wight Bakke of Yale University who stated: "Merely responsive action Is bound to be lacking i n focus and d i r e c t i o n , because the purposes and motivations stimulating the demands to which the response Is made have no uniform nature.'^ I f the argument f o r an "active p o l i c y " refers to one where the Manpower Consultative Service seeks to est a b l i s h j o i n t research by attempting to encourage the part ies to f u l f i l l t h e i r r e s p o n s i b i l i t i e s , then t h i s c l e a r l y i s already being done. Indeed, reference to the cases presented i n Chapter IV indicates that most of them have been nurtured to f r u i t i o n by the Manpower Consultative Service representative. Although the related p r i n c i p l e s do suggest that labour and management must "desire" the ^Morris, Joe. "Economic and Technological Change In the S i x t i e s - Implications f o r Manpower Adjustment - Discussion 1"., Labour-Management Conference on Economic and Technological Change In the S i x t i e s , pp. 100-101. 2Ibid . o p. 101. 3 L Q C O C i t . - 168 - establishment of a j o i n t research committee under the aegis of the Manpower Consultative Service, t h i s does not prevent active encouragement of such endeavours. Nevertheless, the government i s necessarily constrained from "interference" i n labour-management r e l a t i o n s . I t must take care not to step over an imaginary but yet all-important l i n e that d i s  tinguishes between encouraging and i n t e r f e r i n g i n the p r i v  ate domain. A pertinent government viewpoint suggests that: "Enterprises tend to be pre-oocupied with t h e i r own i n t e r n a l problems and may even fear the i n  volvement of government agencies as placing undue pressure on them to respond to manpower adjustment programs which they f e e l w i l l reduce t h e i r freedom to make decisions i n the best interests of the enterprise." x On the other hand, the reprovers may be s t r i v i n g f o r enactment of l e g i s l a t i o n to compel enterprises into co-ordination of private and public a c t i v i t i e s . In t h i s regard Dr. Dymond has stated: "I am impressed by the great d i f f i c u l t y of e f f e c t i v e l y l e g i s l a t i n g i n t h i s f i e l d . . . b y the d i f f i c u l t y of providing s u f f i c i e n t f l e x i b i l i t y i n l e g i s l a t i o n to encompass the great variety of arrangements which must be made to.aohieve an adequate degree of co-ordination.'" 2 Dr. Crispo emphasized the fact that state controlled ^Dymond, W.R. "Co-ordination of Active Manpower Po l i c y In the Enterprise with National Manpower P o l i c y " . Op. C i t . , p. 10. 2 I b i d . . p. 12 . - 169 - p o l i c i e s should be adopted with a high degree of caution when he stated: "We must make sure we are not unduly i n t e r f e r i n g i n the market.... Whenever we see a problems, i t seems to me the f i r s t thing we should say i s why i s n ' t the mark et taking care of i t ? . . . l e t ' s do that before we introduce some complicated p o l i c y which we'll never be able to get r i d of....Once you create something you never get r i d of it,..we must con centrate on programs that complement and supple ment the market by making i t perform more e f f e c t - i v e l y , 9 ' 1 Therefore, i t appears that any d i r e c t Involvement of the government by l e g i s l a t i o n i n the formation of j o i n t research committees i s 9 at l e a s t 9 very d i f f i c u l t — i f not impracticable. On the contrary, government action would reap more useful results by f a c i l i t a t i n g the adjustment process through ensuring adequate provision for counsell ing, t r a i n i n g , r e t r a i n i n g , placement and mobility. Consequently, the Manpower Consultative Service has been accorded a most useful purpose i n encouraging and providing co-ordination of these f a c i l i t a t i n g services. However, i t has been shown to be overly constrained i n i t s effectiveness. L e g i s l a t i o n that forces a j o i n t approach to solving the complexities of worker adjustment would be im possible i n Canada due to the advocated p o l i c y of free x C r i s p o , John H.G. "Economic and Technological Change In the S i x t i e s - Implications for Manpower Adjust ment .- Discussion". Labour-Management Conference on Economic and Technglpglcal Change i n the S i x t i e s , p. 123. - 170 - enterprise and free c o l l e c t i v e bargaining. Therefore, i f the Manpower Consultative Service i s to become a more e f f e c t i v e , wide-ranging e n t i t y , a p o l i c y that averts direct intervention must be Introduced, The Requirement of Advance Notice A solution that would seem to follow n a t u r a l l y from the above discussion i s embodied i n the p r i n c i p l e of the Manpower Consultative Service that requires i t to receive advance notice of i n d u s t r i a l changes which w i l l have ad verse effects on employment. As the Manpower Consultative Service i s concerned with co-ordinating manpower adjustment services, i t s effectiveness, at least i n the short run, c l e a r l y l i e s at the merey of the employer's s o c i a l con science; on whether the employer f e e l s obligated to inform the Service i n advance of impending changes. The weight of evidence has indicated that i n the absence of l e g i s l a t i v e or s o c i a l r e p r i s a l s the decision to innovate i s e s s e n t i a l l y based on economic factors. Dr. Dymond has stated: "The effectiveness of the role of the employment service i s d i r e c t l y dependent on the extent of which I t has advance warning of impending d i s  placements. The employment service, i n those cases where permanent l a y - o f f s oocur can best perform i t s functions of counselling about a l t e r  native job and t r a i n i n g opportunities, the actual placement of workers i n a l t e r n a t i v e employment, the assisted mobility of workers to new areas, or t h e i r r e f e r r a l to r e t r a i n i n g programs i f i t has s u f f i c i e n t time to plan and provide f o r the ad justment of workers through these various tech niques. In general, the shorter the notice to - 1 7 1 - the employment service and the less t h e i r i n  volvement i n the redeployment of manpower within the enterprise, the longer w i l l be the period of unemployment f o r those l a i d off and the less chance they w i l l have to secure new employment In occupations matching t h e i r productive capac i t i e s o"1 I f l e g i s l a t i o n i s needed to co-ordinate enterprise and national manpower adjustment programs e f f e c t i v e l y , and, I f advance warning of change Is the prime requisite of an ef f e c t i v e adjustment procedure, i t would appear axiomatic that advance notice requires such l e g i s l a t i v e commitment, There are a large number of arguments favour ing an approach that requires employers to give the govern ment and/or the employee from three to s i x months' notice of imminent displacement,, As was previously Indicated i n Chapter I I , provisions e x i s t i n many c o l l e c t i v e bargaining agreements requiring t h i s type of p r i o r notification,. I t was also shown that management's reluctance to give advance notice based on fears of mass exodus and competitive losses were unfounded and indeed, the benefits of granting early warning f a r outweight the costs of granting i t . In many regions of Europe advance notice i s taken fo r granted 2. One author quotes an Austrian works' xDymond, WoR0 "Co-ordination of Active Manpower Po l i c y i n the Enterprise with National Manpower Po l i c y . " 0p_o C i t o 9 pp. 7~8„ 2Ahlsen, E g i l o " F a c i l i t a t i n g Worker Adjustment to Technological Change = Statement by Discussant". The Requirements of Automated Jobs. p„ 2 6 9 . - 172 - council chairman as sta t i n g "The whole difference between b r u t a l i t y and humaneness may l i e i n the time la g granted f o r adjustment to technological change, 1 , 1 In Canada, Dr, Crispo writes that the onus i s on management to see that union e f f o r t s are directed towards acceptance of technological change. He states that: "Unless employers are w i l l i n g to give advance notice of anticipated changes and are prepared to write off certain worker adjustment costs as legitimate charges against the over-riding benefits of the changes, unions can i l l - a f f o r d to be overly constructive," 2 The Economic Council of Canada i n 1966 published "A Declaration on Manpower Adjustments to Technological and Other Change" i n which i t suggests guidelines f o r avoiding labour-management disputes over major changes. It supports the Idea of Joint labour-management committees functioning throughout the year as being able to provide the f l e x i b i l i t y and objective studies that are required to solve the problems of adjustment to change. I t suggests that: "The following adjustment measures...are recomm ended to labour and management f o r general a p p l i c  ation as basic and concrete methods of approach fo r helping to solve manpower adjustment problems. The s p e c i f i c a p p l i c a t i o n of these measures... x B l a u , Paul. Paper presented as a representative of labour under "Conclusions and Implications". The Re quirements of Automated Jobs, p. 4 0 3 . ^Crispo, John H.G. "Summary Report on the Con ference". 0j>. C i t . 9 p. 3 8 . - 173 - could be incorporated i n formal agreements as desired and agreed upon between labour and management i n the p a r t i c u l a r e n t e r p r i s e , 0 , , The provision of Information as early as possible about anticipated change and i t s manpower implic ations Is basic and preliminary to the carrying out of any manpower adjustment programme 0o,, Although i t i s impossible to s t i p u l a t e f o r a l l I n d u s t r i a l situations what the period of advance notice should b e 9 0 0 0 t h e r e should be as much ad vance notice as possible, with a minimum of hot less than three months where changes of material significance are involved," 1 In B r i t i s h Columbia i n 1965 the p r o v i n c i a l govern ment set down a plan recommending that s i x months' advance notice be given to the Imperial G i l refinery workers of impending technological change a f f e c t i n g jobs. And, In Quebec9 one researcher f o r the Manpower " I f we want,,0commissions to be very e f f i c i e n t , I submit thatooothe workers to be l a i d - o f f should be advised of t h i s p o s s i b i l i t y s i x months i n advance," 2 With the overwhelming acceptance accorded the con cept of advance n o t i c e 9 the many benefits that are seen to accrue from using i t , and the very fact that e f f e c t i v e government f a c i l i t i e s are precluded without advance notice, I t i s c l e a r l y too important a factor to leave to the whims AEconomic Council of Canada, A Declaration on  Manpower Adjustment to Technological and Other Change, Ottawa: Queen"s P r i n t e r , November, 1966, pp, 7=8, Consultative Service stated that: Dion, Go 0p_, C i t , . p, 585« - 174 - of enterprises faced with e s s e n t i a l l y economic d e c i s i o n s 1 . Indeed, compulsory advance notice would gain at once the time required f o r i n i t i a t i n g the government manpower pro grams such as the Manpower Consultative Service co-ordin ates, and provide the impetus needed by management to plan i n advance the manpower implications of i t s proposed changes. Although the Manpower Consultative Service p r i n  c i p l e s provide f o r establishment of Joint research commi ttees where no union exists there has been ample evidence i n t h i s report to suggest that few, i f any, managers w i l l o f f e r j o i n t consultation i f i t i s not required. I f ad vance notice i s recommended as a suitable guideline by the Economic Council of Canada why should I t be encouraged only where unions—and l i k e l y only strong unions—are able to demand It? Surely, i f the guideline i s appropriate f o r unionized firms i t i s also appropriate f o r non-unionized firms. Moreover, why should the guideline be extended only f o r displacements a r i s i n g out of technological change as many advocates suggest? •"•Subsequent to the w r i t i n g of t h i s report The  Vanoouver Sun, i n an a r t i c l e e n t i t l e d "Automation Rules Hinted by Government", reported that Manpower Minister Jean Marchand t o l d a national labour-management confer ence i n Ottawa that i t appears essential that employers give t h e i r workers at least three months' warning of technological change that could adversely a f f e c t t h e i r jobs. March 22, 196?, p. 22. - 175 - Messrs, Beaumont and Helfgott, i n studying numerous plants undergoing i n d u s t r i a l conversion, concluded that: "oooit Is impossible to Isolate employee d i s  placements a t t r i b u t a b l e s o l e l y to technological change, because of the interrelatedness of a l l factors that determine the course of employ ment o" X They also r e f e r to the United States Congress, J o i n t Econ omic Committee wherein i t states: "There i s no way to determine whether a p a r t i c u l a r worker has l o s t a s p e c i f i c job because of techno l o g i c a l ©hange, or the s h i f t of demands away from the product his Industry produces, or inadequate aggregate demand, or some other cause," Therefore, I t i s possible that recommendation of advance notice as an "automation" guideline may just lead to more confusion as to Interpretation than benefit to the worker. Indeed, the aim of maximum u t i l i t y of Canada's human resources would seem to beg introduction of a law that requires management to Inform the l o c a l Manpower Centers at least three months i n advance of impending lay offs on a l l but special cases (such as f o r Just cause). Accordingly, adjustment plans could be prepared by the companies alone or j o i n t l y with the government services depending on the nature of the p a r t i c u l a r s i t u a t i o n . The arguments In favour of l e g i s l a t i o n to require advance notice of lay-off have arisen mainly to ensure •'-Beaumont9 R.A. and Helfgott, R.B, Op., C i t , . p, 25. 2Loe, C i t . - 176 - that manpower planning gains consideration. Such l e g i s  l a t i o n could provide a solution to one weakness exposed i n the model developed e a r l i e r as the government's and the union's l i m i t a t i o n i n reacting at the right end of the continuum would be overcome by making future manpower planning a desirable management action i n t h i s area. And, at the same time, advance notice could expand the scope of the Manpower Consultative Service a p p l i c a b i l  i t y at the extreme l e f t end of the continuum. When manage ment i s forced to close down a plant f o r economic reasons the proper people would be n o t i f i e d i n advance. Accord in g l y , e i t h e r j o i n t union-government or government services separately could provide f o r adjustment procedures i n ad- vanoe of the pending lay-off date. Beyond t h i s , however, the requirement of advance notice of lay-off would l i k e l y r e s u l t i n a considerable increase i n corporate manpower planning, consequently s h i f t i n g emphasis along the whole continuum to the r i g h t . More future planning such as that related i n the Graphic Arts and Plumbing Industry cases would probably ensue. Some arguments have been voiced against the form ati o n of a government early warning system on the basis that i t i s too negative and may impede the process of tech nological ohange 1. But, i n Canada the view i s held that I b i d . , p. 3 2 8 . — 177 0 " 0 0 0 t h e human f a c t o r In p r o d u c t i o n i s r e l a t i v e l y - more important as a c o n t r i b u t i o n to long-term economic growth than i s the a p p l i c a t i o n of cap i t a l and t e c h n o l o g y , " 1 Moreover, Dr» Gordon, i n a r e p o r t prepared f o r the U n i t e d S t a t e s O f f i c e of Manpower, Automation and T r a i n i n g , con cluded t h a t : "In r e c e n t years, a number of c o u n t r i e s of West er n Europe have adopted l e g i s l a t i o n o r developed p o l i c i e s aimed a t a n t i c i p a t i n g problems of l a b o r displacement, through e a r l y warning systems and s u b s i d i e s designed t o encourage the r e t r a i n i n g of workers t h r e a t e n e d w i t h l a b o r displacement be f o r e a c t u a l d i s m i s s a l occurs,, C l o s e r e l a t i o n s between the p u b l i c employment s e r v i c e and the management and l a b o r community have a l s o p l a y e d an important r o l e In encouraging conoerted and e f f e c t i v e a t t a c k s on problems of l a b o r d i s p l a c e  ment i n l o c a l communities i n such c o u n t r i e s as West Germany and Sweden,"^ A harmonization of these views can be e s t a b l i s h e d w i t h i n the r a t i o n a l e of the Economic C o u n c i l of Canada's D e c l a r a t i o n which advooates the need f o r t e c h n o l o g i c a l ohange but which a l s o recommends advanoe p l a n n i n g as a p r e r e q u i s i t e to i t s i n t r o d u c t i o n . L e g i s l a t i o n governing advance n o t i c e of l a y - o f f would ensure t h a t manpower ad justment i s c o n s i d e r e d by management as a c o s t of xDymonds) WDRo " C o - o r d i n a t i o n of A c t i v e Manpower P o l i c y i n the E n t e r p r i s e w i t h N a t i o n a l Manpower P o l i c y " , O P , C i t , , p. Io (See Chapter I, Canada Manpower P o l i c y S e c t i o n , p, l i o ) 2Gordon, Margaret S, R e t r a i n i n g and Labor Market  Adjustment i n Western Europe„ U n i t e d S t a t e s Department of Labor P u b l i c a t i o n , Manpower Automation Research Monograph No, 4, Washington, D,C,: U n i t e d S t a t e s Government P r i n t  i n g O f f i c e , August, I965, p, 200, - 178 - introducing new technology, thereby providing an atmosphere more conducive to the maximum u t i l i z a t i o n of the nation's manpower resources. The f i n a l argument to be rendered i n favour of l e g i s l a t i o n f o r advance notice rests on the cor r e l a t i o n between e f f e c t i v e manpower p o l i c y and the need f o r f u l l employment. I t has previously been stated that workers w i l l be trained and retrained only when there Is some job they w i l l " f i t " i n t o , that workers w i l l be moved only i f there i s a job to move to and i n general the manpower ser vices w i l l be ef f e c t i v e only so long as f u l l employment e x i s t s . This argument has been voiced against the e f f e c t  iveness of the Manpower Consultative S e r v i c e d Thus, i n times of high unemployment there w i l l be less c a l l f o r plans to effect worker adjustment i f there are no jobs a v a i l a b l e . On the other hand, when employment i s high many companies w i l l be compelled to r e t r a i n t h e i r own forces and adapt them to new positions which i t i s im possible f o r the labour market to f i l l . Consequently, the Manpower Consultative Service w i l l be most eff e c t i v e i n s p e c i f i c cases where technological change i s imminent, the employer has more workers than he needs and there i s a -Htfaisglass, Harry J , "Summary of Floor Discuss ions". The Requirements of Automated Jobs, p. 272. See also Chapter I I I , United States Experience Section, p. 73. - 179 - shortage of workers In the labour market. Advance notice of change could enhance t h i s effectiveness considerably under the current environment of r e l a t i v e l y f u l l employ ment by providing the time and the f l e x i b i l i t y necessary to adapt the structure of the work force. notice wherein the Manpower Consultative Service would be able to become a continuous co-ordinator of government services 8 i s an attempt to provide the Service with the necessary strength i t needs i f i t i s to f u l f i l l i t s pur pose of adapting the currently employed manpower to the ever-changing requirements of technological and economic change, As John Stuart M i l l once stated: "There cannot be a more legitimate object of the l e g i s l a t o r ' s care than the interests of those who are thus s a c r i f i c e d to the gains of t h e i r fellow c i t i z e n s and of p o s t e r i t y , , , , 1 , 1 The second p r i n c i p l e embodied i n the Manpower Con s u l t a t i v e Service methodology suggests that research and the plans that evolve from i t should be developed j o i n t l y by labour and management to remove any obstacles that may impede the process of technological change. In discussing •kilted i n Levltan 9 Sar, A, "Structural Unemploy ment and Public P o l i c y " , Labor Law Journal, J u l y (I96I), p. 578, In summary9 t h i s argument f o r required advance J o i n t Study and the Committee Chairman - 18G - the approach of the Manpower Consultative Service i n Chapter IV, however, i t was noted that the Research Sub- Committee and indeed quite often even the J o i n t Consult ative Committee, i s chaired and directed by an academic professor of high repute. The thesis of the argument i n t h i s section i s that the Manpower Consultative Service approach has been constrained by the very fact that few companies and unions are i n favour of i n v i t i n g a t h i r d party to intervene i n problems that are considered private a f f a i r s . In Chapter I I I , a f t e r c o l l a t i n g the recommendations of many authors* findings, i t was concluded that to be ef f e c t i v e the parties to j o i n t study committees needed to f u l l y a i r t h e i r feelings on the problems and a r r i v e at a solution that was acceptable to both. Ample evidence has been presented to indicate that t h i r d party intervention i s undesirable because results come from individuals that cannot possibly know the facts as wel l as the parties them selves; that the t h i r d party does not have an economic interest i n the outcome and therefore may a r r i v e at answers which may be harmful to one or the other party; and, that the Interested p a r t i e s ' commitment to a plan may be weak ened i f they have not been instrumental i n i t s development. Study of the Manpower Consultative Service cases Indicates that the expounded dual process of problem s o l  ution has been somewhat misguided. Rather than the research - 181 - r e s u l t s being submitted to the Joint Consultative Commi ttee f o r analysis and ultimate development of an accept able plan, i t would appear that the neutral i s becoming the key en t i t y i n the approach,, Indeed, i n the majority of the cases studied, i t appears that once the research chairman i s chosen he then sets out as a "trouble- shooter" and "problem-solver" and attempts to a r r i v e at an acceptable solution to the problem,, He uses the union and company representatives on the research committee to provide him with the information he requires but the f i n a l report and i t s recommendations i s a product of his own development. Having reached what he f e e l s i s a f a i r and Impartial settlement he then reports his findings to the J o i n t Consultative Committee, The following month i s normally set aside by the union and management to study the plan to analyze i t s advantages and disadvantages to themselves. When the J o i n t Consultative Committee meets again, i t i s normally with the research chairman acting as a mediator between the company and the union i n a negotiat ion-type discussion with the two parties a i r i n g any d i s  agreements with the plan„ The research chairman then works slowly and methodically, making changes here and there to produce a plan that i s compatible to both part i e s . The process, therefore, often becomes merely one of a r b i t r a t i o n on a t h i r d party's recommendations. - 182 There does not appear t o he a r a t i o n a l e t h a t c l e a r  l y d e f i n e s t h e r o l e o f t h e t h i r d p a r t y i n t h e Manpower Con s u l t a t i v e S e r v i c e a p p r o a c h . B e f o r e i n c e p t i o n o f the Man power C o n s u l t a t i v e S e r v i c e under t h e Department o f Labour i n 1963 i t was s t a t e d t h a t : " I f r e s e a r c h i s t o be f u l l y e f f e c t i v e i t must be c o m p e t e n t l y and i n d e p e n d e n t l y done. I t i s here t h a t o u r u n i v e r s i t i e s have a m ajor r o l e t o p l a y i n p r o v i d i n g t h e i n d u s t r i a l and governmental community w i t h i n d e p e n d e n t l y - m i n d e d and w e l l - t r a i n e d e x p e r t s , whose o n l y c o n c e r n w i l l be t o d e f i n e problems and t o o f f e r s o l u t i o n s i n t h e  p u b l i c I n t e r e s t , not t o p r o v i d e p l e a s i n g answ e r s t o one o r o t h e r of t h e p a r t i e s t o c o l l e c t  i v e b a r g a i n i n g . " 1 [ i t a l i c s m i ne] T h i s view i s most a p t l y e x p r e s s e d by one r e s e a r c h e r as f o l l o w s : " F o r e x p l o r i n g and s t u d y i n g means i n o r d e r o f r e s o r b i n g manpower, i t i s n o t q u i t e l i k e l y many companies w i l l be r e a d y t o l e t government peop l e do t h e r e s e a r c h . B u t , i f we want t h o s e commiss i o n s t o be v e r y e f f i c i e n t , I submit t h a t t h e f o l l o w i n g c o n d i t i o n s s h o u l d be s a t i s f i e d : . . . ( c ) t h e chairman who i s r e s p o n s i b l e f o r t h e p e r f o r m i n g o f r e s e a r c h s h o u l d have more power and have t h e l a s t word i n t h e d e t e r  m i n a t i o n of r e s e a r c h s u b j e c t s ; (d) t h e d u r a t i o n of t h e commission's mandate s h o u l d be l o n g enough i n o r d e r t o f a c i l i t a t e t h e o r g a n i z a t i o n o f r e s e a r c h a c c o r d i n g t o a l o g i c a l sequence and a l s o t o l e a v e t h e  c h airman p l a y a c o n c i l i a t i o n r o l e i n t h e  measures t o be adopted when t h e r e s e a r c h e s have been c o m p l e t e d ; , . . . " 2 [ i t a l i c s m i ne] 1Dymond-, W.R,, "The R o l e of C o l l e c t i v e B a r g a i n i n g R e s e a r c h and S t a t i s t i c s i n I n d u s t r i a l R e l a t i o n s - I n t r o  d u c t o r y S tatement". Op. C i t . 0 p. 119„ D i o n , G. OJD. C i t . . p. 585. - 183 - E x a m i n a t i o n o f t h e p o s i t i o n s o f t h e r e s e a r c h c h a i r  men i n t h e e a s e s s t u d i e d g i v e s a m p l e e v i d e n c e t h a t c l e a r l y e s t a b l i s h e s t h e i r p o s i t i o n a s t h a t o f t r o u b l e - s h o o t e r s a n d p r o b l e m - s o l v e r s i n d e v e l o p i n g a d j u s t m e n t p l a n s a n d m e d  i a t i n g t h e d i s c u s s i o n a n d d e b a t e o n t h e r e c o m m e n d a t i o n s , T h e c o n t r a r y v i e w p o i n t h o l d s t h a t : " T h i s r e s e a r c h m u s t b e m u t u a l l y u n d e r t a k e n b y l a b o u r a n d m a n a g e m e n t , b e c a u s e t h e r e m u s t b e m u t u a l u n d e r s t a n d i n g o f t h e n a t u r e o f t h e p r o  b l e m s a n d t h e b e s t w a y s o f d e a l i n g w i t h t h e m , w h i c h u l t i m a t e l y w i l l b e d e c i d e d a t t h e b a r  g a i n i n g t a b l e , , , . E x a m i n a t i o n s o f p r o b l e m s s u c h a s t h e s e c a n b e s t b e b a s e d o n l o n g - t e r m o b j e c t i v e r e s e a r c h c o n  d u c t e d b y t h e p a r t i e s t o c o l l e c t i v e b a r g a i n i n g t h e m s e l v e s . I t i s o b v i o u s t h a t s u c h r e s e a r c h m u s t b e a i m e d a t s o l v i n g p r o b l e m s , a n d a t s e t t  i n g l o n g - t e r m g o a l s , r a t h e r t h a n j u s t i f y i n g r i g i d demands f o r m u l a t e d p r i o r t o a r r i v i n g a t t h e b a r g a i n i n g t a b l e , " 1 A n d o n e M a n p o w e r C o n s u l t a t i v e S e r v i c e r e s e a r c h e r h a s s t a t e d : " T h e f a c t i s , f r o m t h e a n a l y t i c a l p o i n t o f v i e w , t h a t t h e p a r t i e s a f t e r p e r i o d s o f u n s a t i s f a c t o r y a c t i v i t i e s a t t h e c o l l e c t i v e b a r g a i n i n g t a b l e h a v e e v o l v e d a p r o c e d u r e w h i c h t h e y f e e l w i l l a s s i s t i n w o r k i n g o u t t h e i r l a b o u r - m a n a g e m e n t p r o b l e m s . T h e y h a v e a v e s t e d I n t e r e s t i n t h e p r o c e d u r e w h i c h i s made o p e r a t i o n a l b y t h e p o t  e n t i a l r e a c t i v a t i n g o f t h e i d e n t i c a l p r e s s u r e s w h i c h e x i s t e d b e f o r e , 1 , 2 J-Dymond, W„R 0 " T h e M a n p o w e r C o n s u l t a t i v e S e r v i e e o f t h e C a n a d i a n D e p a r t m e n t o f L a b o u r " , 0p_, C i t , , p p , 8 a n d 1 0 , 2 M o n t a g u e , J , T o " R e c e n t A m e r i c a n D e v e l o p m e n t s a n d E x p e r i m e n t s i n L a b o u r - M a n a g e m e n t R e l a t i o n s " , O j ) , C i t , , P . 55 o - 184 .- There i s need f o r c l a r i f i c a t i o n o f t h e s e c o n f l i c t  i n g v i e w p o i n t s o The f i n d i n g s o f t h i s r e p o r t would i n d i c  a t e t h a t t h e l a t t e r s t a t e m e n t s a r e t h e more d e s i r a b l e and th e more a c c e p t a b l e t o l a b o u r and management. S o l u t i o n s t h a t a r e a r r i v e d a t i n d e p e n d e n t l y c o u l d e a s i l y d e v e l o p i n t o r i g i d demands i f t h e y a r e n o t d i s c u s s e d and n e g o t  i a t e d j o i n t l y by t h e p a r t i e s i n t h e absence o f t h e t h i r d p a r t y . The c r u x of t h i s argument i s based on t h e p r o v e n p r e m i s e t h a t t h e n e u t r a l p a r t y , t o be e f f e c t i v e , must know when t o back out and l e a v e t h e f i n a l development o f th e p l a n and subsequent commitment t o t h e p a r t i e s . M e r e l y b a r g a i n i n g on a t h i r d p a r t y ' s i n t e r p r e t a t i o n of s o l u t i o n s t o problem a r e a s does not remove t h e c o n f l i c t . I t j u s t postpones t h e f r u s t r a t i o n u n t i l t h e n e x t n e g o t i a t i o n p e r  i o d o r o t h e r w i s e produces an atmosphere not u n l i k e ex- p o s t t r i p a r t i t e a r b i t r a t i o n p r o c e e d i n g s . Two o f f i c e r s o f t h e Manpower C o n s u l t a t i v e S e r v i c e a p pear t o acknowledge t h e more s u b o r d i n a t e r o l e o f t h e n e u t r a l . P o r example i n 1964, G.G. B r o o k s , t h e n D i r e c t o r o f t h e Manpower C o n s u l t a t i v e S e r v i c e , s t a t e d : " . . . i n most cases t h e work w i l l d e v o l v e on a mixed group o f p e o p l e from w i t h i n and from o u t s i d e t h e o r g a n i z a t i o n . To e f f e c t i v e l y d i r e c t such a group w i l l u s u a l l y r e q u i r e t h e s e r v i c e s of a t h o r o u g h l y q u a l i f i e d R e search D i r e c t o r by whom t h e r e s e a r c h f i n d i n g s can be c o l l a t e d , c o - o r d i n a t e d , and de v e l o p e d i n t o c o n s t r u c t i v e p r o p o s a l s f o r t h e c o n s i d e r a t i o n o f t h e j o i n t c o m m i t t e e , " 1 ^-Brooks, G . G . OP.. C i t . . p. 255. - 185 - And I n 1965, J 0 D 0 Drew, t h e n B r i t i s h Columbia R e g i o n a l R e p r e s e n t a t i v e of t h e Manpower C o n s u l t a t i v e S e r v i c e , s u g g e s t e d t h a t upon r e c e i v i n g t h e r e s e a r c h recommendations: "The J o i n t C o n s u l t a t i v e Committee was now f a c e d w i t h t h e major t a s k o f p r e p a r i n g a comprehensive manpower a d j u s t m e n t plan» The committee was w e l l e q u i p p e d o There was t h e t h o r o u g h l y o b j e c t i v e and r e l i a b l e r e s e a r c h m a t e r i a l i n w h i c h b o t h manage ment and t h e u n i o n s had conf i d e n e e , , , [and"J a s e t of m u t u a l l y a g r e e d upon ground r u l e s , . , , " * I n b o t h t h e s e s t a t e m e n t s t h e r e s e a r c h e r has p r o v i d e d t h e i n f o r m a t i o n on w h i c h t h e p a r t i e s can b u i l d a f e a s i b l e p l a n o f a d j u s t m e n t . He has been a f a c t - f i n d e r . However, he has a l l o w e d t h e p a r t i e s t o a r r i v e a t t h e i r own s o l u t  i o n s and development o f a f i n a l p l a n . C l e a r l y , t h e r e a r e s i t u a t i o n s when the p a r t i e s o f f e r low accommodation and t h e y w i l l p r o b a b l y r e q u i r e more m e d i a t i o n by t h e t h i r d p a r t y . The r e s e a r c h chairman s h o u l d a l w a y s be a v a i l a b l e t o o f f e r c l a r i f i c a t i o n and f u r t h e r a d v i c e i f i t i s r e q u e s t e d . B u t , i f t h e program i s t o be an e f f o r t towards l o n g - r u n m a t u r i t y i n s e l f - a p p r a i s a l and commitment t o problems of m u t u a l i n t e r e s t between t h e p a r t i e s , he must not a c t as a combined p r o  b l e m - s o l v e r and a r b i t r a t o r . Such a p o s i t i o n w i l l q u i t e p o s s i b l y l e a d t o i l l f e e l i n g s by one o r t h e o t h e r p a r t y — i f not i n t h e s h o r t r u n , t h e n l i k e l y i n t h e l o n g r u n — a n d c o n s e q u e n t l y reduce t h e a p p e a l of t h e Manpower C o n s u l t a t i v e Drew, J0D0 0p_, C i t , , p, 113, - 186 - S e r v i c e t o l a b o u r and management„ A second i s s u e r e q u i r i n g c l a r i f i c a t i o n i s t h e ap p a r e n t f e e l i n g t h a t i t i s n e c e s s a r y f o r t h e p a r t i e s t o r e a c h agreement on t h e adjustment p l a n p r o v i d e d . I f some i s s u e s remain i n s u r m o u n t a b l e d u r i n g e n s u i n g d i s c u s s i o n s t h e n t h e y a r e c l e a r l y I s s u e s f o r c o l l e c t i v e b a r g a i n i n g . I n C h a p t e r I I I a p e r u s a l o f t h e l i t e r a t u r e r e v e a l e d t h a t t h e e x e r c i s e s h o u l d n o t alw a y s need t o r e a c h agreement. J o i n t committees a r e not an end i n t h e m s e l v e s . I f r e  s e a r c h has been a d e q u a t e l y c o mpleted and an a d j u s t m e n t p l a n d e v e l o p e d , t h e n c o l l e c t i v e b a r g a i n i n g s h o u l d p r o v i d e t h e means f o r s e t t l i n g any i s s u e s s t i l l r e m a i n i n g i n con f l i c t . The r e s e a r c h p l a n s h o u l d n o t d e v e l o p w i t h an i n  h e r e n t e x p e c t a t i o n o f agreement on a l l a s p e c t s o r many programs w i l l f a i l . I n d i s c u s s i n g t h e most s u c c e s s f u l A m e r i c a n p l a n s P r o f e s s o r Montague has s t a t e d : "The f i v e p l a n s under d i s c u s s i o n a l l go f u r t h e r t h a n t h e g e n e r a l a d m o n i t i o n t h a t t h e r e s h o u l d be p r i o r d i s c u s s i o n t o c o l l e c t i v e b a r g a i n i n g . . . . E a c h c a r e f u l l y a v o i d s p r e j u d g i n g t h e s o l u t i o n w h i c h might be e v o l v e d , and I n a t l e a s t two oases t h e e f f o r t i s n o t t o f i n a l i z e many of t h e answers even where t h e y have been e v o l v e d from l e n g t h y s t u d y . " 1 The f i n a l p o i n t t o be r a i s e d w i t h r e g a r d t o t h e use Montague, J.T. "Recent American Developments and Ex p e r i m e n t s i n Labour-Management R e l a t i o n s " . Op.. C i t . . Po 34. - 187 - o f a t h i r d p a r t y l i e s I n t h e e x p e c t e d number o f f u t u r e c a s e s and t h e a v a i l a b i l i t y of r e s e a r c h d i r e c t o r s . The r e s e a r c h programs r e v e a l e d e a r l i e r i n t h e ease s t u d i e s r e  q u i r e d a g r e a t d e a l of t i m e and e f f o r t by each of t h e r e  s e a r c h d i r e c t o r s . Moreover, t h e r e i s no d i s p u t i n g t h e i n c r e a s i n g r a t e a t w h i c h major t e c h n o l o g i c a l changes w i l l o c c u r i n t h e f u t u r e . Where a r e t h e s e h i g h - c a l i b r e r e  s e a r c h e r s t o come from i n t h e f u t u r e ? I f t h e Manpower C o n s u l t a t i v e S e r v i c e i s t o f u l f i l l more t h a n a c o n s t r a i n e d r o l e i n t h e o v e r a l l manpower p o l i c y t h e n a change i n t h e r e s e a r c h program development must be i n i t i a t e d . I n sum, a s u b o r d i n a t e d r o l e f o r t h e r e s e a r c h d i r  e c t o r seems a t once d e s i r a b l e and n e c e s s a r y . I n such a r o l e , t h e academic r e s e a r c h e r u s e d c o u l d be an I n d u s t r i a l r e l a t i o n s a d v i s o r t o a l a r g e number o f a d j u s t m e n t programs r a t h e r t h a n a p r o b l e m - s o l v e r s p e n d i n g s i x months t o two y e a r s on one program. He would a c t as a r e s e a r c h c o n s u l t  a n t o n l y on t h o s e i s s u e s where t h e p a r t i e s d e s i r e d a d v i c e and p r o v i d e i n f o r m a t i o n on l a b o u r market views n ot o t h e r  w i s e a v a i l a b l e t o t h e p a r t i e s . I n a d d i t i o n , he c o u l d c a l l on t h e s e r v i c e s of o t h e r f a c u l t y and gr a d u a t e s t u d e n t s t o p r o v i d e t h e n e c e s s a r y r e s e a r c h d a t a , so t h a t i t o n l y r e  q u i r e d h i s d i r e c t i o n and f i n a l a p p r o v a l . I f m e d i a t i o n was d e s i r e d by t h e p a r t i e s due t o impasses I n t h e normal p r o  c e s s t h e n he c o u l d be c a l l e d i n on t h o s e o c c a s i o n s . Under no c o n d i t i o n s , however, s h o u l d a r e s e a r c h o f f i c e r be - 188 - required to perform the role of a problem-solver i n such a manner that he must proffer solutions that are achiev able through the c o l l e c t i v e bargaining process, Labour-Management Go-operation and Manpower P o l i c y The t h i r d major contention of t h i s report l i e s with the r e s t r i c t i o n that Is placed on the a p p l i c a b i l i t y of the Manpower Consultative Service by vi r t u e of i t s emphasis on labour-management co-operation. E s s e n t i a l l y , co-ordinat ion of the government's manpower services i s provided to Joint union-management programs thereby l i m i t i n g the effectiveness of the Service to the center portion of the continuum as shown i n the model. This i s not to say there i s not need f o r labour-management co-operation, but rather there appears to be a dichotomy of interests that preclude the maximum development of the intended co-ordination of manpower services. There i s possibly a reasonable explanation f o r the development of t h i s c o n f l i c t of i n t e r e s t . In Chapter I I I the chain of events leading to the Inception of the Man power Consultative Servioe was related. I t points out that the Manpower Consultative Service emerged from the labour-management co-operation theory, and indeed pro vided a necessary tangible objective f o r co-operation by virt u e of the need f o r constructive discussion of manpower adjustment problems. Consequently, i t i s not s t a r t l i n g - 189 - t o see t h e second p r i n c i p l e o f t h e Manpower C o n s u l t a t i v e S e r v i c e i n c l u d e d i n i t s r a t i o n a l e , A r e v i e w of subsequent developments, however, w i l l p o i n t out t h e d i v e r g e n t p a t h t h a t t h e Manpower C o n s u l t a t i v e S e r v i c e s h o u l d have t a k e n . B e f o r e 1963» when t h e Manpower C o n s u l t a t i v e S e r v i c e r a t i o n a l e was f i r s t r e v e a l e d by t h e Department o f Labour, emphasis a t c o n f e r e n c e s on manpower problems a t t h e i n t e r  n a t i o n a l , n a t i o n a l , and r e g i o n a l l e v e l was c o n c e n t r a t e d on m a t t e r s c o n c e r n i n g i n d u s t r i a l u n r e s t and an attempt t o i n c r e a s e n a t i o n a l p r o d u c t i v i t y by p r o m o t i n g labour-manage ment c o - o p e r a t i o n . As s t a t e d i n C h a p t e r I I I c o n f e r e n c e s convened by t h e Economic C o u n c i l of Canada, i t s p r e d e c  e s s o r , and t h e Department o f Labour were a t t e m p t s t o c r e a t e a n atmosphere o f labour-management c o - o p e r a t i o n . T h i s theme a l s o pervaded many o f t h e r e g i o n a l c o n f e r e n c e s . I t was s u g g e s t e d t h a t t h i s stream o f e v e n t s p r o v i d e d a sense of d i r e c t i o n and purpose t o labour-management c o - o p e r a t i o n a t t h e l o w e r l e v e l s o f t h e economy and l e d t o t h e f o r m a t - Ion o f t h e Manpower C o n s u l t a t i v e S e r v i c e i n m i d - 1 9 6 4 . The dilemma t h a t d e v e l o p s w i t h i n t h e c o n t e x t o f the Manpower C o n s u l t a t i v e S e r v i c e i s t h a t "an a c t i v e man power p o l i c y " as p o r t r a y e d i n Ch a p t e r IV does n o t i n c l u d e n o r depend upon labour-management c o - o p e r a t i o n as Its r a i s o n d'etre. The government o f f e r s t o c o - o r d i n a t e man power s e r v i c e s i n an a t t e m p t t o p r o v i d e an atmosphere con d u c i v e t o manpower a d j u s t m e n t . I t I s a f a c i l i t a t i n g - 190 - p r o c e s s . The t h e s i s o f t h i s argument i s t h a t labour-manage ment c o - o p e r a t i o n i s not an end i n i t s e l f ; i t must e x i s t i n a n atmosphere c o n d u c i v e t o a more c o n s t r u c t i v e app r o a c h . S i n c e I963 t h e r e has been an i n c r e a s i n g aware n e s s o f t h i s need f o r c o - o r d i n a t i o n o f manpower s e r v i c e s and a g r o w i n g emphasis on t h e concept of an a c t i v e man power p o l i c y . The 1965 Labour-Management C o n f e r e n c e h e l d i n B r i t i s h Columbia p l a c e d c o n s i d e r a b l e emphasis on t h e man power p o l i c y needs as recommended i n a " N a t i o n a l Manpower S e r v i c e " t o implement manpower p o l i c i e s . T h i s recommend a t i o n was s t r e n g t h e n e d w i t h t h e Economic C o u n c i l of Can ada's s t a t e m e n t , "The l a c k o f c o - o r d i n a t i o n o f manpower s e r v i c e s i s a b a s i c weakness of l a b o u r market p o l i c y i n Canada," 1 T h i s c o n f e r e n c e b a r e d many o f t h e weaknesses of c o l l e c t i v e b a r g a i n i n g i n m e e t i n g t h e response t o change. The b a s i c r a t i o n a l e f o r an a c t i v e manpower p o l i c y r e l a t e d i n C h a p t e r IV a l s o p o i n t s t o t h e l i m i t a t i o n s on c o l l e c t i v e b a r g a i n i n g and t h e need f o r a s i n g l e agency, such as emerged I n t h e Department o f Manpower and I m m i g r a t i o n , t o f a c i l i t a t e a l l manner o f j o b s h i f t s . S t i l l , i n March o f 196? the Economic C o u n c i l o f Canada convened a c o n f e r e n c e w h i c h c l e a r l y p l a c e d t h e C i t e d i n M o r r i s , J o e , Op., C i t . , p, 101, - 191 - u n i o n i n a p o s i t i o n of s p e a r - h e a d i n g a d r i v e f o r c o l l e c t  i v e b a r g a i n i n g demands t h a t would produce t h e needed man power a d j u s t m e n t p r o c e d u r e s . The whole theme of manpower ad j u s t m e n t t o t e c h n o l o g i c a l and o t h e r changes r e l a t e d i n t h e D e c l a r a t i o n , the Statement and o t h e r s t u d i e s was e s s e n t i a l l y based on a need f o r g r e a t e r s o p h i s t i c a t i o n i n labour-management r e l a t i o n s 1 . Recommendations were made c a l l i n g f o r c o l l e c t i v e b a r g a i n i n g t o broaden i n scope and p r o v i d e f o r y e a r around J o i n t labour-management c o n s u l t  a t i o n . Demands were seen t o i n c l u d e t h e r e q u i r e m e n t o f a minimum o f t h r e e months' advance n o t i c e i n o r d e r t o p r o  v i d e f o r manpower p l a n n i n g . I t was s t a t e d t h a t advance n o t i c e combined w i t h adequate t r a i n i n g and r e t r a i n i n g f a c i l i t i e s c o u l d overcome t h e o b s t a c l e s of employee t r a n s f e r . The erux of t h i s whole i s s u e l i e s i n t h e f a c t t h a t c o l l e c t i v e b a r g a i n i n g a l o n e cannot p r o v i d e f o r e f f e c t i v e d i s p o s i t i o n o f manpower ad j u s t m e n t c a s e s . Manpower ad jus t m e n t programs under t h e a u s p i c e s of t h e Manpower Con s u l t a t i v e S e r v i c e t o be s u c c e s s f u l depend p r i m a r i l y on ^Economic C o u n c i l o f Canada, A D e c l a r a t i o n on  Manpower A d j u s t m e n t s t o T e c h n o l o g i c a l and O t h e r Change, 0p_„ C i t , Economic C o u n c i l o f Canada, Towards B e t t e r  Communloat1ons Between Labour and Management, Ottawa: Queen's P r i n t e r , F e b r u a r y , 196?, C a r d i n , J e a n - R e a l , "Manpower Adjustment t o Tech n o l o g i c a l and O t h e r Change I n Labour R e l a t i o n s i n Canada", Economic C o u n c i l of Canada, N a t i o n a l C o n f e r e n c e on Labour-Management R e l a t i o n s , Ottawa, March, 196?, - 192 - a t t a i n i n g a n atmosphere c o n d u c i v e t o t h e a d j u s t m e n t . The aim must "be t o s t r e n g t h e n t h e government's r e a c t i o n w i t h i n t h e model p r e s e n t e d e a r l i e r ; not t o become more i n v o l v e d i n t h e a l r e a d y f o r t i f i e d union-management system. The emphasis o f t h i s d i s c u s s i o n c e n t e r s on t h e b e l i e f t h a t t h e maximum u t i l i t y of t h e human r e s o u r c e s o f a n a t i o n must i n v o l v e o v e r a l l u p g r a d i n g o f t h e e d u c a t i o n a l a t t a i n m e n t o f a l l w o r k e r s — f r o m u n s k i l l e d t o p r o f e s s i o n a l . D r . J a m i e s o n i l l u s t r a t e d t h i s when he s t a t e d : "Employment o f p r o f e s s i o n a l , t e c h n i c a l and s k i l l e d w o r k e r s has i n c r e a s e d s h a r p l y o v e r t h e p a s t decade o r more, but t h e s u p p l y has f a i l e d t o keep up w i t h t h e demand and, a l l e g e d l y , s e v e r e ' l a b o u r s h o r t  ages' have d e v e l o p e d i n v a r i o u s c a t e g o r i e s . On t h e o t h e r hand, t h e demand f o r l e s s e d u c a t e d o r s k i l l e d w orkers has t e n d e d , on t h e whole, t o be s t a t i c o r d e c l i n i n g , w h i l e t h e s u p p l y has been i n  c r e a s i n g , a o e What a r e t h e r e l a t i o n s h i p s between t h e two g r o u p s , i f a n y ? , , , t o what e x t e n t has t h e unemployment among u n s k i l l e d o r s e m i - s k i l l e d w o r k e r s been due s i m p l y t o s h o r t a g e s o f p r o f e s s i o n a l , t e c h n i c a l o r s k i l l e d w o r k e r s ? , , . F o r i f we c o n c l u d e t h a t t h e s t r u c t u r a l problems of unemployment have d e v e l o p e d p r i m a r i l y as a r e  s u l t of ' s h o r t a g e s ' o r ' b o t t l e n e c k s ' o f c e r t a i n t y p e s o f p r o f e s s i o n a l , t e c h n i c a l o r s k i l l e d w o r k e r s , t h e n o u r major e x p e n d i t u r e s of money and p e r s o n n e l s h o u l d be devoted t o a ' c r a s h program* t o expand our u n i v e r s i t i e s and t e c h n i c a l i n s t i t  u t e s . " 1 From l i t e r a t u r e a v a i l a b l e i n Canada, th e case •'•Jamieson, S.M. "Economic and T e c h n o l o g i c a l Change i n t h e S i x t i e s - I m p l i c a t i o n s f o r Manpower Adjustment - D i s c u s s i o n " . 0p_„ C i t , , pp, 86-87, - 193 - s t u d i e s p r e s e n t e d , and t h e c o n f e r e n c e s h e l d , t h e r e appears t o be a p r e o c c u p a t i o n w i t h t h e u n i o n i z e d w o r k e r and t h e maintenance of i n d u s t r i a l peace. A g a i n , t h i s i s n o t t o say t h a t t h i s a r e a i s u n i m p o r t a n t , but r a t h e r t h a t t h e Department of Labour and t h e Economic C o u n c i l o f Canada have a d e q u a t e l y p r o v i d e d f o r t h e s e i s s u e s . U n i o n i z e d w o r k e r s c u r r e n t l y a c c o u n t f o r l e s s t h a n o n e - t h i r d o f t h e n a t i o n ' s l a b o u r f o r c e . S t u d i e s on Canada's c h a n g i n g o c c  u p a t i o n a l mix by D r 0 S c h o n n l n g emphasize t h e d e c r e a s i n g number of w o r k e r s i n t h e u n i o n i z e d c a t e g o r i e s . He s t a t e s : " 0 , 0 t h a t b o t h the manual and p r i m a r y o c c u p a t i o n s w i l l c o n t i n u e t o s h r i n k as a p r o p o r t i o n o f a l l o c c u p a t i o n s , t h e w h i t e - c o l l a r and t h e p e r s o n a l and p r o t e c t i v e ( f i r e , p o l i c e , e t c ) o c c u p a t i o n s w i l l c o n t i n u e t o expand," I t i s a well-known f a c t t h a t w h i t e - c o l l a r and s e r v i c e w o r k ers have, i n g e n e r a l , r e s i s t e d t h e u n i o n ' s a t t e m p t s a t o r g a n i z a t i o n . The need f o r an a l l - e n c o m p a s s i n g manpower p o l i c y I s s u p p o r t e d by s t u d i e s of t h e American F o u n d a t i o n of A u t o m a t i o n and Employment w h i c h r e p o r t e d t h a t a u t o m a t i o n had a l r e a d y c u t deep i n t o t h e need f o r m i d d l e managers. From I n t e r v i e w i n g e d u c a t o r s , businessmen, and government t h e y c o n c l u d e d t h a t t h e : -"-Schonnlng, G i l , "Economic and T e c h n o l o g i c a l Change I n t h e S i x t i e s - I m p l i c a t i o n s f o r Manpower A d j u s t  ment - I n t r o d u c t o r y S t a t e m e n t " , Labour-Management C o n f e r  ence oh Economic and T e c h n o l o g i c a l Change i n t h e S i x t i e s . P. 37. - 194 - " o o . p r i n c i p a l causes of middle management antag onism were concern about the personal a d a p t a b i l i t y to mechanized systems, uncertainty as to t h e i r roles i n i t or fear of l o s i n g status of large numbers of s k i l l e d workers„"1 Future predictions view the downward s h i f t i n white-collar jobs as analagous to the advent of unionism i n America. To overcome middle management resistance to computerizing t h e i r realm of authority, top management w i l l require techniques as s i g n i f i c a n t as those required to overcome the hourly paid workers' resistance to change i n e a r l i e r periods 2. Although t h i s type of speculation may receive scant attention from corporate planners today there i s a strong degree of evidence that supports the idea that manpower adjustment must become a superordinate goal—one that sets i t s e l f above the need f o r harmony i n the labour-management r e l a t i o n s h i p . The f i n a l statements In the Economic Council of Canada's Declaration supports the growing need f o r im proved manpower p o l i c i e s : "The federal government, together with p r o v i n c i a l governments, must also play an important role In developing more e f f e c t i v e manpower and labour market programmes. With improving placement f a c i l i t i e s , the provision of t r a i n i n g and re t r a i n i n g programmes, and mobility assistance, governments have at t h e i r disposal the means to ^Berkwltt, George. "Middle Managers vs. The Com puter". Dun's Review and Modern Industry. November, 1966, p. 42. 2 L e a v i t t , H.J. and Whisler, T.L. "Management In the 1980's'Jo Harvard Business Review. November-December, 1958. ~ ~ ' - — - 195 - s u p p o r t and complement t h o s e a d j u s t m e n t measures t h a t a r e w i t h i n t h e compass of l a b o u r and manage ment <, C o - o r d i n a t i o n o f a l l t h e s e a c t i v i t i e s i s e s s e n t i a l c " 1 T h e r e f o r e , I t i s c l e a r l y e v i d e n t t h a t t h e Manpower C o n s u l t a t i v e S e r v i c e must p l a c e c o - o r d i n a t i o n b e f o r e c o  o p e r a t i o n as a prime m o t i v a t o r of i t s a c t i o n s i f i t i s t o enhance t h e n a t i o n ' s manpower p o l i c y and e x t e n d i t s p r e s  ent narrow s c o p e 0 And y e t 9 an e v a l u a t i o n o f t h e cases h a n d l e d by t h e Manpower C o n s u l t a t i v e S e r v i c e made i n F e b r u a r y of 196? c o n c l u d e d : "Even i f no o t h e r s p e c i f i c r e s u l t s a r e e v i d e n t , t h e achievement of t h e J o i n t c o n s u l t a t i o n , i t s e l f , i s h i g h l y d e s i r a b l e and consumes more of t h e t i m e and e f f o r t of t h e Manpower C o n s u l t a t i v e S e r v i c e O f f i c e r s t h a n any o t h e r of t h e i r a c t i v i t i e s , " ^ I s t h i s I n agreement w i t h t h e d e s i r e d o b j e c t i v e s o f an a c t i v e n a t i o n a l manpower p o l i c y ? S h o u l d t h i s n o t r e a l l y be t h e d e s i r e d o b j e c t i v e o f t h e Labour-Management Con s u l t a t i o n B r a n c h ^ o f t h e Department o f Labour? I t i s q u i t e o b v i o u s t h a t t h e Labour-Management 1Eeonomic C o u n c i l of Canada, A D e c l a r a t i o n on  Manpower A d j u s t m e n t s t o T e c h n o l o g i c a l and O t h e r Change„ Op, C i t , . p. 12, 2 Department o f Manpower and I m m i g r a t i o n , Canada Manpower D i v i s i o n , "Report on t h e A c t i v i t i e s o f t h e Man power C o n s u l t a t i v e S e r v i c e " , F e b r u a r y 27, 196?, (un p u b l i s h e d p a p e r ) , ^ E a r l y i n 1966 t h e name of t h e Labour-Management C o - o p e r a t i o n S e r v i c e was changed t o t h e Labour-Management C o n s u l t a t i o n B r a n c h , - 196 - C o n s u l t a t i o n B r a n c h o f t h e Department o f Labour has been a c t i v e l y c ampaigning f o r e s t a b l i s h m e n t of j o i n t committees t o e f f e c t i v e l y d e a l w i t h manpower a d j u s t m e n t problems a r i s i n g due t o m a j o r t e c h n o l o g i c a l change. R e f e r r a l t o many of t h e "Team Work i n I n d u s t r y " p u b l i c a t i o n s c l e a r l y I n d i c a t e s t h a t problems of t e c h n o l o g i c a l change a r e b e i n g s t u d i e d w i t h i n t h e e x i s t i n g framework of many of t h e labour-management committees i n i t i a t e d by t h e Labour- Management C o n s u l t a t i o n B r a n c h , Moreover, newspaper ad v e r t i s e m e n t s , p e r i o d i c a l s and r a d i o b r o a d c a s t s o f r e c e n t d a t e a r e a c t i v e l y c ampaigning f o r programs comparable t o t h o s e encouraged by t h e Manpower C o n s u l t a t i v e S e r v i c e , v i z . "Who wants labour-management c o n s u l t a t i o n ? . . . Employees...who r e a l l y want t o r e c e i v e p r i o r n o t i f i c a t i o n of major t e c h n o l o g i c a l changes; who r e a l l y want t o t a k e p a r t I n advance p l a n  n i n g t o meet t h e s e changes w i t h a minimum o f j o b l o s s and d i s l o c a t i o n ; . , . W r i t e f o r com p l e t e i n f o r m a t i o n on how t o s e t up such a committee t o t h e : Labour-Management C o n s u l t  a t i o n B ranch Canada Department o f L a b o u r , O t t a w a . . . , " 1 The r o l e of p r o m o t i n g i n d u s t r i a l peace i s c l e a r l y a p r o p e r one f o r t h e Department o f Labour, A s o l e o b j e c t i v e o f p r o m o t i n g j o i n t committees w i t h i n t h e Manpower C o n s u l t a t i v e •^Vancouver Sun. The. "Who wants labour-management c o n s u l t a t i o n ? " A d v e r t i s e m e n t a p p e a r i n g i n paper on F e b r u a r y 21, 1967, p. 11. See a l s o Reader's D i g e s t . "Have you a b e t t e r answer?" A d v e r t i s e m e n t a p p e a r i n g i n March, 1967 i s s u e , p. 231. S i m i l a r m a t e r i a l has been a d v e r t i s e d i n r e c e n t Vancouver r a d i o b r o a d c a s t s . - 197 - S e r v i c e , t h e r e f o r e , i s an o u t r i g h t d u p l i c a t i o n of t h i s s e r v i c e . H a r m o n i z a t i o n o f t h i s c o n f l i c t c o u l d be a c h i e v e d by r e c o g n i z i n g t h a t t h e r e s p o n s i b i l i t y f o r e s t a b l i s h i n g labour-management committees l i e s w i t h t h e Department of L a b o u r , T h i s would g i v e t h e Labour-Management C o n s u l t  a t i o n B r a n c h t h e needed o b j e c t i v e i t has h e r e t o f o r e app a r e n t l y l a c k e d . I n a d d i t i o n , t h i s would e n a b l e t h e Man power C o n s u l t a t i v e S e r v i c e t o c o n c e n t r a t e on c o - o r d i n a t i o n of manpower s e r v i c e s and a d m i n i s t r a t i o n o f t h e I n c e n t i v e s t h a t promote t h e a d j u s t m e n t p r o c e s s . U n l e s s t h e Manpower C o n s u l t a t i v e S e r v i c e r e c o g n i z e s t h i s need f o r c o - o r d i n  a t i o n above c o - o p e r a t i o n i t i s u n l i k e l y t h a t t h e S e r v i c e w i l l be a b l e to a c h i e v e I t s o b j e c t i v e s of e n h ancing Canadian manpower a d j u s t m e n t , IVo THE NEED FOR CO-ORDINATION OF THE GOVERNMENT'S MANPOWER SERVICES I n C h a p t e r IV I t was c o n c l u d e d t h a t t h e s t a n d a r d used t o e v a l u a t e t h e s u c c e s s of t h e Manpower C o n s u l t a t i v e S e r v i c e s h o u l d be based on t h e o v e r a l l c o n t r i b u t i o n of t h e S e r v i c e towards an a c t i v e manpower p o l i c y . I n t h e p r e v i o u s s e c t i o n i t was s t a t e d t h a t w h i l e t h e concept of labour-management c o - o p e r a t i o n seemed t o be predominant i n t h e e f f o r t s o f t h e Manpower C o n s u l t a t i v e S e r v i c e , co o r d i n a t i o n o f t h e government's manpower s e r v i c e s needed - 1 9 8 - t o be g i v e n prime i m p o r t a n c e , A b r i e f r e c a p i t u l a t i o n o f the p e r t i n e n t f a c t s r e v e a l e d i n t h e case s t u d i e s w i l l b e a r out t h i s need: I n t h e Domtar, P o r t n e u f case p r i v a t e c o u n s e l l o r s were us e d , a r e a redevelopment was u n s u c c e s s f u l , m o b i l i t y a t t e m p t s were hampered w i t h l e s s t h a n h a l f o f t h e workers r e l o c a t e d , and l i t t l e m e n t i o n was made of any r e t r a i n i n g measureso I n t h e Mount R o y a l R i c e M i l l s case o n l y s i x out of t h i r t y - e i g h t p o s s i b l e r e l o c a t i o n s were e f f e c t e d due t o h o u s i n g problems, r e t r a i n i n g a t t e m p t s were dropped due t o d i f f i c u l t i e s w i t h t h e r e g i o n a l s c h o o l b o a r d — n o t be cause of t h e d e s i r e of t h e w o r k e r s . I n t h i s case t h e workers a r e b e i n g i n t e r v i e w e d by t h e Canada Manpower C e n t e r s , I n t h e C a n a d i a n P a c i f i c A i r L i n e s s t u d y p r i v a t e i n t e r v i e w i n g was u n d e r t a k e n t o d e t e r m i n e a p t i t u d e s but f u r t h e r r e s u l t s a r e not completed. I n t h e Canadian N a t i o n a l R a i l w a y s case p r i v a t e e x p e r t s were used f o r i n t e r v i e w i n g , and r e l o c a t i o n a t t  empts have met w i t h l i t t l e s u c c e s s , a l t h o u g h t h e r e does app e a r t o be i n i t i a l s u c c e s s w i t h a " p i l o t " r e t r a i n i n g scheme. I n t h e M a n i t o b a R o l l i n g M i l l s ease t h e r e was a d e f i n i t e recommendation f o r and use o f t h e i n t e r v i e w i n g and placement f a c i l i t i e s of t h e Canada Manpower C e n t e r s , Recommendation was a l s o made f o r r e t r a i n i n g and programs a r e b e i n g e s t a b l i s h e d i n t h e r e g i o n . M o b i l i t y p r o v i s i o n s were recommended but t h e y r e c e i v e d l i t t l e s u p p o r t from the w o r k e r s . I n t h e Domtar, Windsor case u n i v e r s i t y c o u n s e l l o r s and i n t e r v i e w e r s were u s e d , r e t r a i n i n g was p r e c l u d e d by a d i v e r s i t y o f w o r k e r i n t e r e s t s , m o b i l i t y was h i n d e r e d by t h e p r e s e n t h i g h wage r a t e s , r e s e a r c h c o n c l u d e d t h a t th e government placement s e r v i c e s were not f u l l y s u c c e s s  f u l and t h a t a r e c l a s s i f i c a t i o n and g u i d a n c e oommittee s h o u l d be e s t a b l i s h e d . I n t h e B r i t i s h Columbia Towing I n d u s t r y case t r a i n i n g , c l a s s i f i c a t i o n , and r e t r a i n i n g were recommended but no a c t i o n has been t a k e n a s y e t ; r e q u e s t f o r e s t a b  l i s h m e n t o f a recommended Manning B o a r d was d e n i e d ; amend ments t o t h e Canada S h i p p i n g A c t appear t o be f u t i l e ; and - 199 - recommended changes i n l i c e n s i n g and i n s p e c t i o n r e q u i r e  ments a r e s t i l l a w a i t i n g f e d e r a l a c t i o n 1 . I n t h e I m p e r i a l O i l c a s e a l l s e r v i c e s o f an a c t i v e manpower p o l i c y were mentioned as " t o o l s " t o be remembered i n e f f e c t i n g t h e a u t o m a t i o n p r o v i s i o n s , b u t a t t r i t i o n has more t h a n a c c o u n t e d f o r w o r k e r r e d u c t i o n s i n t h e l a s t decade and no d e f i n i t e f u t u r e changes were r e v e a l e d . I n t h e G r a p h i e A r t s c a s e t h e recommendations were based on a r e v i e w o f a n t i c i p a t e d changes i n t h e i n d u s t r y ' s t e c h n i q u e s and i n c l u d e d t r a i n i n g , r e t r a i n i n g and t h e e s t a b l i s h m e n t o f a new s c h o o l . B e f o r e such a s c h o o l can be e s t a b l i s h e d i t w i l l be n e c e s s a r y f o r t h e Committee t o submit f u r t h e r s p e c i f i c d a t a . I n t h e P l u m b i n g I n d u s t r y case a p r i v a t e c o n s u l t a n t was used and l i t t l e government s u p p o r t has been r e q u i r e d . The above r e v i e w s a r e p u r p o s e l y c r i t i c a l . They do q u i t e c l e a r l y p o i n t o u t , however, t h a t t h e s e r v i c e s t o be c o - o r d i n a t e d i n p r o v i d i n g an a c t i v e manpower p o l i c y and o t h e r means t o f a c i l i t a t e t h e a d j u s t m e n t p r o c e s s have met w i t h r e l a t i v e l y l i t t l e s u c c e s s . There i s , i n most c a s e s , a form of J o i n t c o n s u l t a t i o n , and removal o f many o b s t a c  l e s , n o t a b l y t h a t o f c o n f l i c t , w h i c h impede t h e a d j u s t m e n t p r o c e s s . And, i n some c a s e s , t h e r e i s p r o v i s i o n f o r a measure of i n t e r n a l a d j u s t m e n t . But t h e t h i r d and most i m p o r t a n t p r i n c i p l e o f t h e Manpower C o n s u l t a t i v e S e r v i c e r a t i o n a l e — c o - o r d i n a t i o n o f t h e s e r v i c e s r e q u i r e d t o f a c  i l i t a t e manpower a d j u s t m e n t — h a s been i n a d e q u a t e and has met w i t h c o n s i d e r a b l e r e s i s t a n c e . Moreover, i t appears t h a t any c o - o r d i n a t i o n o f s e r v i c e s has been h a n d l e d by xSee Appendix "C" f o r an elaboration of the diffl« ou l t i e s encountered i n t h i s p a r t i c u l a r case. - 2 0 0 - t h e n e u t r a l c o n s u l t a n t and t h e s e r v i c e s u sed have v e r y o f t e n been p r i v a t e l y operated,, I t has a l r e a d y been sugg e s t e d t h a t i n o r d e r t o remove t h e emphasis of t h i r d - p a r t y d e c i s i o n making the r o l e of t h e r e s e a r c h o f f i c e r s h o u l d be s u b o r d i n a t e d o T h e r e f o r e , t h e I s s u e t h a t looms most Important i s an e v a l u a t i o n o f t h e r e s p e c t i v e r o l e s o f t h e r e s e a r c h d i r  e c t o r , p r i v a t e s e r v i c e s and t h e Department of Manpower and Immigration,, As was s t a t e d i n C h a p t e r I I , a d e c i s i o n must be made on what can be done by t h e u n i o n and management and what must be done by t h e government. The c r i t i c a l r e v i e w of t h e s e l e c t e d cases j u s t p r e s e n t e d I n d i c a t e s t h a t t h e g r e a t e r p o r t i o n o f r e s e a r c h i s p r o v i d e d by u n i v e r s i t y p e r s o n n e l o r p r i v a t e c o n s u l t  a n t s . T h i s does n o t i n t e n d t o i n f e r t h a t c o n t r a c t i n g o f work o u t s i d e o f t h e government i s t o be frowned upon. R a t h e r , i t i n f e r s t h a t t h e emergent p a t t e r n i n t h e s e c a s e s i s n ot what was a p p a r e n t l y i n t e n d e d f r om t h e e n u n c i a t e d p r i n c i p l e s o f t h e Manpower C o n s u l t a t i v e S e r v i c e , The m a j o r i t y o f t h e c ases show t h a t r e s e a r c h i s c a r r i e d out and a p l a n e f f e c t e d a l m o s t e n t i r e l y w i t h o u t t h e a i d o f government s e r v i c e s . The oases show t h a t I n t e r v i e w s , I n g e n e r a l , a r e not c a r r i e d out by t h e Canada Manpower C e n t e r s ; c o u n s e l l  i n g i s more o f t e n p r o v i d e d by p r i v a t e e x p e r t s ; a t t e m p t s t o e s t a b l i s h t r a i n i n g and r e t r a i n i n g a r e recommended by t h e - 201 - r e s e a r c h d i r e c t o r and t h e n t h e j o i n t committee a t t e m p t s t o d e v e l o p some a c t i o n on t h e recommendations,, There i s v e r y l i t t l e i n d i c a t i o n o f t h e Manpower C o n s u l t a t i v e S e r  v i c e O f f i c e r p r o v i d i n g t h e needed c o - o r d i n a t i o n o f man power s e r v i c e s 6 R a t h e r , he a c t s as a c a t a l y s t t o t h e j o i n t endeavour by p r o v i d i n g a f i n a n c i a l i n c e n t i v e t o t h o s e who form committees and I s a v a i l a b l e f o r a d v i s i n g t h e r e s e a r c h e r who may use t h e government s e r v i c e s i f he deems them n e c e s s a r y t o h i s development o f an o v e r a l l p l a n o f adjustment„ I t i s f e l t from t h e above d i s c u s s i o n and t h e con c l u s i o n o f t h i s r e p o r t t h a t a re-assessment o f t h e s t r a t  egy o r p o l i c y o f t h e Manpower C o n s u l t a t i v e S e r v i c e i s v i t a l l y neededo R e f e r e n c e t o a t e x t on c o r p o r a t e p o l i c y s u g g e s t s t h a t s t r a t e g y can be s p l i t i n t o two o b j e c t i v e s - f o r m u l a t i o n and i m p l e m e n t a t i o n — f o r e v a l u a t i o n o f on g o i n g concernso I t s u g g e s t s t h a t p o l i c y f o r m u l a t i o n i n  v o l v e s t h e e x a m i n a t i o n o f t h e environment f o r o p p o r t u n i t y , t h e s y s t e m a t i c assessment of c o r p o r a t e s t r e n g t h s and weak n e s s e s , t h e i d e n t i f i c a t i o n of p e r s o n a l v a l u e s and t h e c l a r i f i c a t i o n o f p u b l i c r e s p o n s i b i l i t i e s 1 , . Three o f t h e s e a s p e c t s have been examined I n t h e c o u r s e o f t h e c h a p t e r ( t h e f o u r t h i s extraneous)„ The Manpower IjLearned, Edmund P Q e t a l 0 B u s i n e s s P o l i c y T ext and Caseso Homewood, I l l i n o i s ' ; ' R i c h a r d Do I r w i n , I n c 0 , 19o"5» Po 620 o - 202 - C o n s u l t a t i v e S e r v i c e was put I n p r o p e r c o n t e x t t o expose i t s s t r e n g t h s a nd/or weaknesses and emphasize a r e a s f o r improvement; e n v i r o n m e n t a l o p p o r t u n i t y was d i s c u s s e d i n r e v i e w i n g t h e Manpower C o n s u l t a t i v e S e r v i c e a p p r o a c h ; and, the r e s p o n s i b i l i t y of t h e Manpower C o n s u l t a t i v e S e r v i c e was r e v i e w e d i n i t s p e r s p e c t i v e o f en h a n c i n g t h e n a t i o n a l manpower p o l i c y . I n a t t e m p t i n g t o e v a l u a t e t h e s t r a t e g y f o r m u l a t i o n i t i s Important t o note t h e f o l l o w i n g : (1) i s the s t r a t e g y c l e a r and i d e n t i f i a b l e ? ; (2) a r e t h e major p r o v i s i o n s o f t h e s t r a t e g y I n t e r n a l l y c o n s i s t e n t ? ; (3) does t h e s t r a t e g y e x p l o i t f u l l y t h e e n v i r o n m e n t a l o p p o r t u n i t y ? ; (4) i s t h e s t r a t e g y c o n s i s t e n t w i t h c o r p o r a t e competence and r e s o u r  c e s ? ; and, (5) does t h e s t r a t e g y c o n s t i t u t e a c l e a r s t i m  u l u s t o o r g a n i z a t i o n a l e f f o r t and commitment? 1 F o r example, i s t h e prime o b j e c t i v e of t h e Manpower C o n s u l t a t i v e S e r v i c e t h a t of f o r m a t i o n o f committees o r t h a t of f a c i l i t a t i n g manpower a d j u s t m e n t ? ; i s t h e r e  quireme n t o f J o i n t s t u d y a r e q u i s i t e t o c o - o r d i n a t i o n o f manpower s e r v i c e s ? ; i s t h e p r o c e s s p r o v i d i n g f o r t h e max imum u t i l i z a t i o n o f manpower r e s o u r c e s under t h e c u r r e n t h i g h l e v e l of employment?; i s t h e Labour-Management Con s u l t a t i o n B ranch more amenable t o j o i n t committee p r o  m o t i o n t h a n t h e Manpower C o n s u l t a t i v e S e r v i c e ? ; and, i s 1 I b i d , , pp, 25-28, -.20.3 - the f o r m u l a t e d s t r a t e g y s uch t h a t t h e Manpower C o n s u l t  a t i v e S e r v i c e r e p r e s e n t a t i v e s s e t out t o f a c i l i t a t e man power a d j u s t m e n t o r do t h e y s e t out t o e s t a b l i s h j o i n t committees? E x a m i n a t i o n o f t h e p r i n c i p l e s , a p p r o a c h and r e s  p o n s i b i l i t y o f t h e Manpower C o n s u l t a t i v e S e r v i c e i n t h e above l i g h t c l e a r l y emphasizes t h e need f o r a r e v i t a l i z e d f o r m u l a t i o n o f s t r a t e g y 0 P o l i c y i m p l e m e n t a t i o n — t h e second o b j e c t i v e o f s t r a t e g y — m u s t be, "oo-made t o dominate t h e d e s i g n o f o r g a n i z a t i o n a l s t r u c t u r e and p r o c e s s e s , That i s , t h e p r i n c i p a l c r i t e r i o n f o r a l l d e c i s i o n s on o r g a n i z a t i o n a l s t r u c t u r e and b e h a v i o r s h o u l d be t h e i r r e l e v a n c e t o t h e achievement o f t h e o r g a n i z a t i o n a l p u r p o s e , not t h e i r c o n f o r m i t y t o t h e d i c t a t e s of s p e c i a l d i s c i p l i n e s , " 1 T h i s concept o f s t r a t e g y i s q u i t e amenable t o t h e i m p l e m e n t a t i o n o f p o l i c y i n t h e Manpower C o n s u l t a t i v e S e r v i c e . However, t h e degree t o w h i c h such s t r a t e g y has been Implemented can be d e t e r m i n e d by ex a m i n i n g t h e r e  s u l t s o f t h e s e l e c t e d c a s e s . I t i s f e l t t h a t manpower p o l i c y c o - o r d i n a t i o n has been overshadowed by t h e d i s  c i p l i n e of labour-management c o - o p e r a t i o n and recommend a t i o n s t h a t would enhance t h e u t i l i z a t i o n o f manpower r e  s o u r c e s have been r e m i s s i n t h e i r d i s p o s i t i o n . The c o n c l u s i o n o f t h i s e v a l u a t i o n i s t h a t t h e I b i d , a p, 621o - 204 - Manpower C o n s u l t a t i v e S e r v i c e i s n o t as e f f e c t i v e as i t s h o u l d be i n c o - o r d i n a t i o n of t h e s e r v i c e s r e q u i r e d t o promote an a c t i v e manpower p o l i c y . The case s t u d i e s do i n d i c a t e t h a t t h e r e has been a l o t of r e s i s t a n c e , n o t a b l y i n f e d e r a l - p r o v i n c i a l c o - o p e r a t i o n . I n a d d i t i o n , i t may be t h a t s u c c e s s f u l changeover from one department's r a t  i o n a l e t o a n o t h e r t a k e s l o n g e r t h a n i t c u r r e n t l y has had. However, i f s u e c e s s i s t o be measured by t h e degree t o w h i c h t h e Manpower C o n s u l t a t i v e S e r v i c e has enhanced an a c t i v e manpower p o l i c y as d i s t i n c t f r o m t h e p r o m o t i o n o f i n d u s t r i a l peace, and i f t h e S e r v i c e i s t o d e v e l o p I n t o a p r o p e r c o - o r d i n a t i n g e n t i t y , t h e n t h i s e v a l u a t i o n would recommend a need f o r r e v i t a l i z a t i o n o f t h e S e r v i c e ' s b a s i c r a t i o n a l e b o t h i n i t s f o r m u l a t i o n and i t s i m p l e m e n t a t i o n . As p o i n t e d out i n The G l a s s o o R o y a l Commission: "The p e r s i s t e n c e o f change and t h e need f o r a d  justment t o change a r e , i n f a c t , t h e o n l y f u t u r e c e r t a i n t i e s known t o any o r g a n i z a t i o n . The s u c c e s s f u l a d a p t a t i o n of t h e ma c h i n e r y o f g o v e r n  ment t o c h a n g i n g c i r c u m s t a n c e s w i l l r e q u i r e two t h i n g s : w i t h i n t h e p u b l i c s e r v i c e i t s e l f t h e r e must be an awareness t h a t a d a p t a t i o n i s an i n e s  c a p a b l e p a r t o f t h e t a s k of management; and, b o t h w i t h i n t h e p u b l i c s e r v i c e and beyond i t , t h e r e must be a c o n t i n u o u s assessment o f t h e r o l e of the f e d e r a l government i n t h e l i f e o f Canada, t o ensure t h a t t h e m a c h i n e r y of government r e  mains r e s p o n s i v e t o t h e ends i t must s e r v e . " 1 l-The R o y a l Commission on Government O r g a n i z a t i o n . The O r g a n i z a t i o n o f t h e Government o f Canada. Ottawa: Queen's P r i n t e r , 1963, V o l . 5, PP. 2o"-27„ CHAPTER V I SUMMARY, CONCLUSIONS AND RECOMMENDATIONS I . SUMMARY The r a p i d advancement o f t e c h n o l o g y has e v o l v e d a p a r a d o x i c a l c h a l l e n g e . E x t e n s i v e economic and t e c h n o  l o g i c a l changes a r e r e c o g n i z e d as e s s e n t i a l t o t h e b a s i c o b j e c t i v e s o f any n a t i o n . F u l l employment, economic growth and a r i s i n g s t a n d a r d o f l i v i n g a r e b e n e f i t s p r e  c l u d e d by economies t h a t would p r e v e n t t h i s change. B u t , i t i s e q u a l l y r e c o g n i z e d t h a t a s o c i e t y can i l l - a f f o r d t o i g n o r e t h e i n t e r e s t s of t h e i n d i v i d u a l w o r k e r who may be a d v e r s e l y a f f e c t e d by t h e s e changes w h i l e t h e m a j o r i t y reap t h e b e n e f i t s . To do so would n ot o n l y be m o r a l l y u n t e n a b l e but would a l s o d e p r i v e t h e n a t i o n o f t h e man power r e s o u r c e s n e c e s s a r y t o a c h i e v e i t s economic and s o c i a l g o a l s . Many a u t h o r s have viewed c o l l e c t i v e b a r g a i n i n g as th e means f o r s o l v i n g t h e complex manpower a d j u s t m e n t problems posed by t e c h n o l o g i c a l ohange. C o l l e c t i v e b a r  g a i n i n g has f a c e d a d i f f i c u l t c h a l l e n g e f o r s u r v i v a l d u r i n g t h e p e r i o d o f r a p i d l y a d v a n c i n g t e c h n o l o g y , but some a u t h o r s b e l i e v e i t has a d a p t e d q u i t e w e l l . I t s f l e x i b i l i t y i s e x e m p l i f i e d by t h e c h a n g i n g t r a d i t i o n a l p r i o r i t i e s on t h e b a r g a i n i n g agenda. Thus, i s s u e s o f - 206 - s e c u r i t y and methods of p r o v i d i n g f o r t h e a d j u s t m e n t of d i s p l a c e d w o r k e r s have r e p l a c e d some o f t h e p r e v i o u s p r e  o c c u p a t i o n w i t h f i n a n c i a l g a i n s . Manpower ad j u s t m e n t t o t e c h n o l o g i c a l change i s v i t a l l y dependent upon p r i o r n o t i f i c a t i o n o f impending changes i n o r d e r t h a t p l a n n i n g can be p r o v i d e d i n advance of any imminent d i s p l a c e m e n t . When advance n o t i c e has been g i v e n , p r i o r p l a n n i n g u n d e r t a k e n arid t h e workers a r e r e p r e s e n t e d by a u n i o n , an i n f o r m a l l i n e of communication can be m a i n t a i n e d by j o i n t labour-management committees. J o i n t s t u d y committees have been a c c l a i m e d as t h e u l t i m a t e i n labour-management m a t u r i t y i n f a c i n g t h e complex p r o  blems posed by t e c h n o l o g i c a l change. A l t h o u g h Canadian and U n i t e d S t a t e s e x p e r i e n c e w i t h J o i n t committees i n d i c  a t e s t h a t s p e c i a l p r e c a u t i o n s a r e r e q u i r e d t o ensure t h e i r s u c c e s s , t h e appr o a c h i s c o n s i d e r e d t h e most e f f e c t i v e a l t e r n a t e t o t r a d i t i o n a l c o l l e c t i v e b a r g a i n i n g i n e f f e c t  i n g manpower ad j u s t m e n t programs. I n Canada, c o n c e r n f o r manpower ad j u s t m e n t has been r e f l e c t e d by t h e i n c r e a s e d a t t e n t i o n f o c u s s e d on t h e n a t i o n ' s manpower and employment p o l i c i e s . The Manpower C o n s u l t a t i v e S e r v i c e was e s t a b l i s h e d i n mid-1964 t o en hance an a c t i v e manpower p o l i c y by f a c i l i t a t i n g t h e a d a p t a t i o n o f c u r r e n t l y employed manpower t o t h e e v e r - c h a n g i n g r e q u i r e m e n t s o f t e c h n o l o g i c a l and economic change. The S e r v i c e o f f e r s i n c e n t i v e s t o u n i o n s and - 20? - managements who a g r e e t o g i v e advance n o t i c e o f impending changes and e n t e r i n t o j o i n t r e s e a r c h t o e f f e c t manpower a d j u s t m e n t programs, R e p r e s e n t a t i v e s o f t h e Manpower C o n s u l t a t i v e S e r v i c e o f f e r a d v i c e t o t h e p a r t i e s and p r o  mote and c o - o r d i n a t e t h e government's manpower s e r v i c e s . S i n c e i n c e p t i o n o f t h e S e r v i c e about t w e n t y p r o  grams of manpower ad j u s t m e n t have been i n i t i a t e d under i t s a u s p i c e s . T h i s r e p o r t r e v i e w e d r e c e n t l i t e r a t u r e on manpower a d j u s t m e n t r e q u i r e m e n t s t o p r o v i d e a framework w i t h i n w h i c h t o e v a l u a t e t h e e f f e c t i v e o f t h e s e programs. S e l e c t e d c a s e s were examined f o r any emerging p a t t e r n s amenable f o r use i n f u t u r e a d j u s t m e n t p r o c e d u r e s ; f o r s t r e n g t h s a nd/or weaknesses i n t h e S e r v i c e ' s methodology; and f o r p r o v i d i n g an e v a l u a t i o n o f t h e achievements of t h e S e r v i c e i n i t s enhancement of t h e n a t i o n ' s manpower p o l i c i e s . The e x a m i n a t i o n exposed a r e a s of weakness i n t h e c u r r e n t r a t i o n a l e o f t h e Manpower C o n s u l t a t i v e S e r  v i c e . Suggested Improvements were recommended on t h e b a s i s of t h e e s t a b l i s h e d framework. I I . CONCLUSIONS AND RECOMMENDATIONS The f o l l o w i n g c o n c l u s i o n s have been drawn from t h e m a t e r i a l p r e s e n t e d i n t h i s r e p o r t . Where deemed approp r i a t e , recommendations have been added. 1. A b r o a d p a t t e r n i s i d e n t i f i a b l e from t h e case s t u d i e s t h a t r e v e a l s t h e approach most l i k e l y t o e v o l v e _ 208 - i n t h e d i s p o s i t i o n o f manpower a d j u s t m e n t programs under t h e a u s p i c e s of t h e Manpower C o n s u l t a t i v e S e r v i c e . Viewed on a continuum o f management a c t i o n i n v o l v i n g an i n c r e a s  i n g ease of i n t e r n a l a d j u s t m e n t and a continuum o f u n i o n r e a c t i o n i n v o l v i n g an i n c r e a s i n g a b i l i t y t o ensure j o b and wage maintenance t h e Manpower C o n s u l t a t i v e S e r v i c e f u n c t i o n s as a c o - o r d i n a t o r o f government c o u n s e l l i n g , p l a c e m e n t , t r a i n i n g , r e t r a i n i n g and m o b i l i t y s e r v i c e s f o r l a b o u r and management who a r e w i l l i n g t o e n t e r i n t o j o i n t r e s e a r c h and assessment o f t h e i r manpower a d j u s t m e n t p r o  blems. However, t h e m u l t i - v a r i a n t i n t r a c i e s of each man power a d j u s t m e n t program p r e c l u d e f u r t h e r d e l i n e a t i o n of a p p r o p r i a t e r e a c t i o n t o overcome w o r k e r d i s p l a c e m e n t . The degree o f s o p h i s t i c a t i o n i n most o f t h e case s t u d i e s e s t a b l i s h e d t o f a c i l i t a t e w o r k e r a d j u s t m e n t i s d e t e r m i n e d by t h e e f f o r t and i n g e n u i t y o f t h e r e s e a r c h d i r e c t o r who d e v e l o p s a n a d j u s t m e n t p l a n t a i l o r - m a d e t o each s i t u a t i o n . 2. The Manpower C o n s u l t a t i v e S e r v i c e , a n a l y z e d I n t h e c o n t e x t d e s c r i b e d above, i s u n d u l y r e s t r i c t e d i n i t s range of a p p l i c a b i l i t y . P r i n c i p l e s o f t h e Manpower C o n s u l t a t i v e S e r v i c e r e q u i r i n g advance n o t i c e and j o i n t c o n s u l t a t i o n as c u r r e n t l y expounded r e s t r i c t t h e e f f e c t i v e n e s s of t h e S e r v i c e ' s program t o a c e n t r a l a r e a of t h e continuum by v i r t u e o f I t s l a c k of I n c e n t i v e a t t h e o u t e r e x t r e m i t i e s . Moreover, union-management programs l i m i t t h i s range o f a p p l i c a b i l i t y f u r t h e r by v i r t u e o f t h e f a c t t h a t : l e s s - 209 - t h a n o n e - t h i r d o f t h e work f o r c e i s u n i o n i z e d ; t h e p a r t  i e s w i l l l i k e l y exhaust a l l o t h e r e f f o r t s b e f o r e a t t e m p t  i n g a j o i n t endeavour; o n l y s t r o n g u n i o n s w i l l w i e l d enough p r e s s u r e t o demand t h i s a pproach t h r o u g h c o l l e c t i v e b a r  g a i n i n g ; and, i t w i l l o n l y be d e s i r e d where t h e p a r t i e s b e l i e v e some advantage i s t o be g a i n e d by t h e use of a t h i r d p a r t y , 3. L e g i s l a t i o n r e q u i r i n g t h e f o r m a t i o n o f j o i n t u n i o n - management programs t o f a c i l i t a t e manpower ad j u s t m e n t i s i n c o n t r a v e n t i o n o f t h e d i s c i p l i n e o f t h e Can a d i a n economy t h a t a d v o c a t e s f r e e c o l l e c t i v e b a r g a i n i n g and f r e e e n t e r  p r i s e , 4, Advance n o t i c e of impending changes t h a t w i l l r e  s u l t i n t h e d i s p l a c e m e n t o f w o r k e r s i s p r e r e q u i s i t e t o t h e e f f e c t i v e d i s p o s i t i o n o f manpower ad j u s t m e n t programs. I t cannot be l e f t t o t h e demands o f c o l l e c t i v e b a r g a i n i n g because o f t h e i n h e r e n t weaknesses i n t h e n e g o t i a t i o n p r o c e s s and t h e l i m i t e d range o f u n i o n c e r t i f i c a t i o n . I t w i l l be v e n t u r e d by v e r y few f i r m s caught up i n an e v e r - i n c r e a s i n g c o m p e t i t i v e environment. N e i t h e r can advance n o t i c e be demanded o n l y when t e c h n o l o g i c a l change i s t h e cause o f w o r k e r d i s p l a c e m e n t s , f o r i t i s o f t e n i m p o s s i b l e t o i s o l a t e s uch d i s p l a c e m e n t s from t h o s e caused by o t h e r f a c t o r s . C o n s e q u e n t l y , advance n o t i c e s h o u l d be l e g i s  l a t e d t o ensure t h a t t h e w o r k e r and t h e Department o f Man power and I m m i g r a t i o n r e c e i v e from t h r e e t o s i x months' - 2 1 0 - advance n o t i c e o f a n t i c i p a t e d l a y - o f f . T h i s e o u l d he en a c t e d as a minimum s t a t u t o r y r e q u i r e m e n t a l o n g w i t h such o t h e r s as minimum wages, maximum h o u r s , h o l i d a y pay, e t c . 5 . The r e s e a r c h and/or committee chairman has become a t h i r d - p a r t y p r o b l e m - s o l v e r i n t h e d i s p o s i t i o n o f t h e Manpower C o n s u l t a t i v e S e r v i c e cases i n c o n t r a v e n t i o n o f t h e p r i n c i p l e s o f t h e S e r v i c e and a p p a r e n t l y t o t h e d e t r i  ment o f a w i d e s p r e a d use o f i t s program. The r e s e a r c h e r ' s d u t i e s i n t h e development o f an a d j u s t m e n t p l a n s h o u l d be r e a p p r a i s e d and more c l e a r l y d e f i n e d . The t r e n d o f p a s t e x p e r i e n c e i n d i c a t e s t h a t t h e p a r t i e s s h o u l d be a l l o w e d t o d e v e l o p and commit themselves t o a p l a n t h a t t h e y must a b i d e by, r a t h e r t h a n b a r g a i n i n g on a t h i r d p a r t y ' s s o l  u t i o n . Moreover, w i d e s p r e a d i n i t i a t i o n o f Manpower Con s u l t a t i v e S e r v i c e programs under c u r r e n t p r e m i s e s would l i k e l y r e s u l t i n a s h o r t a g e o f h i g h - c a l i b r e r e s e a r c h c h a i r  men. A s u b o r d i n a t e d r o l e o f t h e academic r e s e a r c h e r would m i t i g a t e t h i s p roblem by e n a b l i n g him t o become a c o n s u l  t a n t and r e s e a r c h a d v i s o r t o a number o f a d j u s t m e n t p r o  grams a t one t i m e . 60 Under c u r r e n t p r e m i s e s e m p i r i c a l e v i d e n c e would suggest t h a t t h e r e s e a r c h chairman s h o u l d n o t f e e l o b l i g  a t e d t o p r e s e n t an a d j u s t m e n t p l a n i n whloh r a t i f i c a t i o n i s a l w a y s r e q u i r e d . E x p e r i e n c e has shown t h a t l o n g - r u n m a t u r i t y i n t h e J o i n t development o f s o l u t i o n s t o wor k e r d i s p l a c e m e n t problems r e q u i r e s an a i r i n g o f c o n f l i c t f r e e - 211 - o f t i m e r e s t r a i n t and a d j u s t m e n t p l a n r i g i d i t i e s . 7. S u c c e s s f u l enhancement of an a c t i v e manpower p o l i c y by t h e Manpower C o n s u l t a t i v e S e r v i c e i s c u r r e n t l y p r e  c l u d e d by v i r t u e of i t s emphasis on labour-management c o  o p e r a t i o n . Such emphasis u n d u l y r e s t r i c t s t h e S e r v i c e ' s range o f a p p l i c a b i l i t y and d u p l i c a t e s t h e c u r r e n t f u n c t  i o n o f t h e Labour-Management C o n s u l t a t i o n B r a n c h . The second p r i n c i p l e o f t h e Manpower C o n s u l t a t i v e S e r v i c e w h i c h r e q u i r e s j o i n t r e s e a r c h o f problems s h o u l d be r e  duced i n importance i n f a v o u r o f e n s u r i n g e f f e c t i v e c o  o r d i n a t i o n o f t h e n a t i o n ' s manpower s e r v i c e s and t h e r e b y p r o v i d i n g an atmosphere more c o n d u c i v e t o a d j u s t m e n t p r o  grams • 8. I n t h e c a s e s s t u d i e d t h e f e d e r a l manpower s e r v i c e s p r o v i d e d t o f a c i l i t a t e manpower a d j u s t m e n t have been i n  e f f e c t i v e and i n a d e q u a t e . I n most eases p r i v a t e s e r v i c e s have been used I n e f f e c t i n g t h e adjustment program. T h i s i s i n c o n t r a v e n t i o n o f t h e d e s i r e d o b j e c t i v e o f t h e S e r  v i c e as i t p r e c l u d e s c o - o r d i n a t i o n o f t h e government's manpower s e r v i c e s and reduces t h e p o t e n t i a l e f f e c t i v e n e s s o f t h e Department o f Manpower and I m m i g r a t i o n . 9. The b a s i c p o l i c y o f t h e Manpower C o n s u l t a t i v e S e r  v i c e I s n o t c l e a r and i t s r e s u l t i n g i m p l e m e n t a t i o n l a c k s o r g a n i z a t i o n a l commitment t o a d i s c i p l i n e t h a t dominates t h e s t r u c t u r e and p r o c e s s e s . I f t h e Manpower C o n s u l t a t i v e S e r v i c e i s t o p r o v i d e f o r enhancement o f t h e n a t i o n ' s - 212 - manpower p o l i c i e s and ensure maximum u t i l i z a t i o n o f i t s manpower r e s o u r c e s , t h e n t h i s e v a l u a t i o n would recommend a r e v i t a l i z a t i o n and r e - o r i e n t a t i o n o f t h e S e r v i c e ' s b a s i c r a t i o n a l e — b o t h i n p o l i c y f o r m u l a t i o n and i m p l e m e n t a t i o n . I I I . AREAS POR FURTHER STUDY 1. The a n a l y s i s p r e s e n t e d i n t h i s r e p o r t has been l i m i t e d i n scope. To p r o v i d e an a l l - i n c l u s i v e e v a l u a t i o n , much more t h a n an " a r m - c h a i r " s t u d y i s r e q u i r e d . P r o b a b l y t h e most w o r t h w h i l e a r e a f o r f u r t h e r e x a m i n a t i o n o f the Manpower C o n s u l t a t i v e S e r v i c e methodology and means t o improve i t , l i e s i n t h e o p i n i o n s of t h e p a r t i e s who have p a r t a k e n i n t h e j o i n t committees. F o r example, a s u i t  a b l e q u e s t i o n n a i r e o r p e r s o n a l i n t e r v i e w i n g Of t h e many r e s e a r c h d i r e c t o r s who have e f f e c t e d t h e manpower a d j u s t  ment programs would be o f immense v a l u e . They c o u l d be asked t o e v a l u a t e t h e w o r t h of t h e Manpower C o n s u l t a t i v e S e r v i c e f u n c t i o n i n e n c o u r a g i n g J o i n t s t u d y committees. Moreover, t h e y might suggest what changes t h e y b e l i e v e n e c e s s a r y t o overcome problems t h a t emerged i n t h e i r p r o  grams. A w e a l t h o f i n f o r m a t i o n l i e s i n t h e e x p e r i e n c e t h a t each one o f t h e s e I n d u s t r i a l r e l a t i o n s e x p e r t s has amassed i n the d i s p o s i t i o n of t h e s e Manpower C o n s u l t a t i v e S e r v i c e c a s e s . The companies and u n i o n s c o u l d be asked t o s t a t e t h e advantages and/or d i s a d v a n t a g e s o f t h e p r o c e s s i n - 213 - t h e i r d e a l i n g s w i t h t h e Manpower C o n s u l t a t i v e S e r v i c e . They c o u l d s p e c i f i c a l l y be a s k ed i f t h e r e was any m o t i v  a t i o n a l f o r c e i n t h e a v a i l a b i l i t y of t h e f i n a n c i a l i n  c e n t i v e . The p a r t i e s c o u l d a l s o be a s k e d t o v o i c e an o p i n i o n on t h e use o f n e u t r a l c o n s u l t a n t s as problem- s o l v e r s . The i n f o r m a t i o n g l e a n e d from each of t h e p a r t  i e s t o a n a d j u s t m e n t program may w e l l p r o v i d e t h e b a s i s f o r a r e v i t a l i z a t i o n of t h e c u r r e n t p r e m i s e s under which t h e Manpower C o n s u l t a t i v e S e r v i c e f u n c t i o n s . 2. An i s s u e t h a t seems t o c r e a t e c o n s i d e r a b l e c o n t r o  v e r s y i s whether t h e encouragement of i n t e r n a l a d j u s t m e n t i s a p r o p e r economic g o a l i n terms of a maximum a l l o c  a t i o n of manpower r e s o u r c e s . Dr. C r i s p o i n one r e p o r t has a r g u e d t h a t e f f o r t s s h o u l d be c o n c e n t r a t e d on p r o  grams t h a t complement and supplement t h e l a b o u r m a r k e t 1 . That I s , he s u g g e s t s . t h a t t h e l a b o u r market s h o u l d be g i v e n e v e r y chance t o work f r e e of r e s t r i c t i v e d e v i c e s . A t Domtar L t d . t h e u l t i m a t e s o l u t i o n he p r o f f e r e d t o r e  move t h e problems of w o r k e r d i s p l a c e m e n t r e s u l t e d i n t h e e s t a b l i s h m e n t of a f u n d t o p r o v i d e f o r f u t u r e manpower p r o g r a m s 2 . I s t h i s n ot m a x i m i z i n g t h e i n t e r n a l a d j u s t - •"•Crispo, J o h n H.G. "Economic and T e c h n o l o g i c a l Change i n t h e S i x t i e s - P a t t e r n s o f Response t o Change - D i s c u s s i o n " . 0p_. C i t . , p. 123. 2 C r i s p o , J o h n H.G., Chairman. "Domtar J o i n t L a bour- Management Sub-Committee R e p o r t on Human Adju s t m e n t t o I n d u s t r i a l C o n v e r s i o n " . 0p_. C i t . , p. 19. - 214 - merit of an e n t e r p r i s e ' s work f o r c e t o t h e d e t r i m e n t o f th e f r e e o p e r a t i o n of t h e l a b o u r market? Moreover, have not many o f t h e s o l u t i o n s t o t h e Manpower C o n s u l t a t i v e S e r v i c e cases aimed a t such maximum i n t e r n a l a d j u s t m e n t ? An answer t o t h e s e q u e s t i o n s c o u l d e i t h e r enhance o r des t r o y t h e purpose of t h e Manpower C o n s u l t a t i v e S e r v i c e , 3 . I t has been s t a t e d i n t h e r e p o r t t h a t i n some r e s  p e c t s t h e Manpower C o n s u l t a t i v e S e r v i c e i s d u p l i c a t i n g t h e f u n c t i o n s o f t h e Labour-Management C o n s u l t a t i o n B r a n c h , However, i t has a l s o been s t a t e d t h a t t h e i s s u e o f manpower a d j u s t m e n t t o m a j o r changes p r e s e n t e d t h e f i r s t r e a l i s t i c o b j e c t i v e f o r labour-management c o - o p e r  a t i o n . I t c o u l d a l s o be ar g u e d t h a t one o f t h e s h o r t  comings o f t h e Manpower C o n s u l t a t i v e S e r v i c e i s i t s l a c k o f p r o m o t i o n a l a b i l i t y . That i s , t o be r e a l l y e f f e c t i v e , t h e f a c i l i t i e s a v a i l a b l e t o t h e Manpower C o n s u l t a t i v e S e r v i c e f o r manpower adjustment s h o u l d be c o n s t a n t l y p a r  aded i n f r o n t of t h e n a t i o n ' s l a b o u r f o r c e . The s e r v i c e s o f c o u n s e l l i n g , t r a i n i n g , r e t r a i n i n g , m o b i l i t y and p l a c e  ment s h o u l d be r e p e a t e d l y exposed t o t h e Canadian w o r k e r so t h a t when f a c e d w i t h an ad j u s t m e n t he i s f a m i l i a r w i t h i t . I t would a p p e a r t h a t t h e Manpower C o n s u l t a t i v e S e r  v i c e and t h e Labour-Management C o n s u l t a t i o n B r a n c h have b o t h a complementary and a supplementary s e r v i c e a v a i l a b l e t o t h e o t h e r . The Labour-Management C o n s u l t a t i o n B r a n c h - 2 1 5 - could be responsible f o r a l l promotional coverage through such material as "Team Work i n Industry". Through such a device the worker would be continually kept informed of the experience of Canadians with each of the Department of Manpower and Immigration's services. In such a program the Labour-Management Consultation Branch would be res ponsible f o r the formation of j o i n t labour-management committees and the Manpower Consultative Service would be responsible f o r co-ordination of the nation's manpower services as well as possibly administering the adjust ment program. Needless to say, t h i s would involve con siderable planning to be eff e c t i v e and would require a major s h i f t i n the current government p o l i c y . 4 , Three f i n a l areas that could be studied more thor oughly are mentioned as a further attempt to provide a more f l e x i b l e and strengthened Manpower Consultative Service. F i r s t l y , the Organization f o r Economic Co-operation and Development i s to publish i n future an integrated analysis of a number of cases researched during 1963-66 to provide a "manual" of adjustment methods that may be useful to enterprises i n adjusting to major changes 1. A rganization f o r Economic Co-operation and Devel opment. Manpower and S o c i a l A f f a i r s Directorate A c t i v i t y  2 0 - 1 3 B : Co-ordinating Technical Change and Manpower Plan ning at Enterprise Level. P a r i s , France, J u l y 1, 1966, ( r e s t r i c t e d paper), p. 3 6 . - 216 - s t u d y of t h e s e a d j u s t m e n t methods c o u l d he of c o n s i d e r a b l e v a l u e t o t h e Manpower C o n s u l t a t i v e S e r v i c e . S e c o n d l y , ways and means a r e needed t o c r e a t e more emphasis on t h e f e d e r a l r e s e a r c h a v a i l a b i l i t y . I n v e r y few o f t h e Manpower C o n s u l t a t i v e S e r v i c e c ases was t h e r e any a t t e m p t t o draw on any r e s e a r c h a l r e a d y u n d e r t a k e n . R a t h e r i t was a l l p r o v i d e d by t h e r e s e a r c h e r and each case e v o l v e d as a c o m p l e t e l y s e p a r a t e problem from t h e o t h e r s s t u d i e d . T h i r d l y , t h e r e i s a p o s s i b i l i t y t h a t t h e Manpower C o n s u l t a t i v e S e r v i c e c o u l d be made more e f f e c t i v e i f i t was more s e l e c t i v e i n t h e s t u d i e s i t p e r f o r m e d . P o s s i b l y t h e o f f e r of an i n c e n t i v e f o r manpower p l a n n i n g s h o u l d o n l y be made t o i n d u s t r y - w i d e s t u d i e s such as i n t h e G r a p h i c A r t s and Pl u m b i n g i n d u s t r i e s t h a t a t t e m p t t o p r o v i d e , i n advance, f o r any supply/demand i m b a l a n c e s . O b v i o u s l y , much more s t u d y i s r e q u i r e d t o e f f e c t  i v e l y d e a l w i t h a l l t h e r a m i f i c a t i o n s i n h e r e n t i n s t r i v i n g f o r an a c t i v e manpower p o l i c y . T h i s r e p o r t w i l l have a c h i e v e d i t s purpose i f i t has shed l i g h t on some methods by w h i c h such an a c t i v e manpower p o l i c y can be enhanced. BIBLIOGRAPHY Beaumont, R.A. and Helfgott, R.B. Management. Automation  and People. Brattleboro, Utah: The Book Press, 1964. Berkwitt, George. "Middle Managers vs. The Computer". Dun's Review and Modern Industry. November, 1966. Cardin, Jean-Real. "Manpower Adjustment to Technological and Other Change and Labour Relations i n Canada". Economic Council of Canada, National Conference on Labour-Management Relations, Ottawa, March, 1967. Cooper, Jack. I n d u s t r i a l Relations: Sweden Shows the Way. Fabian Research Series 235« London: Devonport Press Ltd. (T.U.), 1963. Department of Manpower and Immigration, Canada Manpower D i v i s i o n . "Report on the A c t i v i t i e s of the Manpower Consultative Service". Unpublished report, February 27, 1967. Dion, G. "The Experience of a J o i n t Research Commission i n a Case of I n d u s t r i a l Conversion (Domtar, Windsor, Quebee 1965)". I n d u s t r i a l Relations Quarterly Re view. V o l . 21, No. 4, October, 1966. Domtar J o i n t Labour-Management Sub-Committee Report on Human Adjustment to I n d u s t r i a l Conversion. Domtar  J o i n t Labour-Management Meeting, Val Morin, Quebec, October, 1966. Unpublished report. Dymond, W.R. "Co-ordination of Active Manpower P o l i c y i n the Enterprise with National Manpower P o l i c y " , Paper presented to International Conference on Methods of Adjustment of Workers to Technical Change at the Plant Level i n Amsterdam, November 15th to 18th, 1966. , "Manpower and Employment: Problems, P o l i c i e s and Programs". Address to Seminar, Technical and Vocat ional Training Branch of the Federal Department of Labour, Ottawa, December 1, I965, • "The Manpower Consultative Service of the Cana dian Department of Labour", Talk to the Union Re search Conference, Queen's University, Kingston, Ontario, May 12, 1964, Economic Council of Canada, A Declaration on Manpower  Adjustments to Technological and Other Change. Ottawa: Queen's P r i n t e r , I966. = 218 - . Towards Better Communication Between Labour and Management. Ottawa: Queen's P r i n t e r , 1967. F i n a n c i a l Post. The. "Firms moving to blunt the slings and arrows of modern technology". March 4 , 1 9 6 7 . ' "New 'Strike-Stoppers': Ottawa Team Heads Off Automation Stoppages". J u l y 1 6 , 1 9 6 6 . Gordon, Margaret S. Retraining and Labor Market Adjust ment i n Western Europe. United States Department of Labor Pu b l i c a t i o n , Manpower Automation Research Monograph No. 4 . Washington, D.C: United States Government P r i n t i n g O f f i c e , 1 9 6 5 . H a l l , Noel A. "The Impact of Technology on Organizations and Individuals". Business Quarterly. The. V o l . 3 1 No. 4 , 1 9 6 6 . (ed.). Labour-Management Conference on Economic and Technological Change i n the S i x t i e s . I n s t i t u t e of I n d u s t r i a l Relations: University of B r i t i s h Columbia, 1 9 6 5 . Healy, James J . (ed.). Creative C o l l e c t i v e Bargaining. Meeting Today's Challenges to Labour-Management  Relations. Englewood C l i f f s , N.J.: Prentice-Hall, Inc., 1 9 6 5 * Hildebrand, G.H. "The Use of T r i p a r t i t e Bodies to Supple ment Co l l e c t i v e Bargaining". 1 9 6 1 I.R.R.A. Spring Meeting. Labor Law Journal. J u l y , 1 9 6 1 . House, A,W. "Planning f o r Future Manpower Changes". In d u s t r i a l Canada. December, 1 9 6 4 . Kossoris, Max. D. "Methods of Adjustment to Automation and Technological Change". A Review of Selected  Methods Prepared f o r the President's Committee on  Labor Management P o l i c y . United States Department of Labor, 1 9 6 4 . Learned, Edmund P. et a l . Business P o l i c y Text and Cases Homewood, I l l i n o i s : Richard D. Irwin, Inc., 1965« L e a v i t t , H.J. and Whisler, T.L. "Management i n the 1 9 8 0 ' Harvard Business Review. November-December, 1 9 5 8 . Levitan, Sar. A. "Structural Unemployment and Public P o l i c y " . Labor Law Journal. J u l y , 1 9 6 1 . - 219 - MacEachen, A l l a n J . "Government Manpower and Employment P o l i c y i n Canada". Address to Fifteenth Annual Conference at the I n d u s t r i a l Relations Center, M c G i l l University, Montreal, June 8, 1964. McLaughlin, R.P. Labor Law Journal. August, 1964. Michael, D.N. Cybernation: The Si l e n t Conquest. Santa Barbara, C a l i f o r n i a : Center f o r the Study of Demo c r a t i c I n s t i t u t i o n s , 1962. Montague, J.T. "Economic and So c i a l Characteristics of European Labour-Management Co-operation". Unpub li s h e d paper, 1961. . "Recent American Developments and Experiments i n Labour-Management Relations". Economic Council of Canada National Conference on Labour-Management Relations, Ottawa, November 9-10, 1964. and Vanderkamp, J., A Study i n Labour Market Adjustment. The B r i t i s h Columbia Labour Force. I n s t i t u t e of I n d u s t r i a l Relations: University of B r i t i s h Columbia, 1966. . and Jamieson, S.M. (ed's.). B r i t i s h Columbia Labour Management Conference - 1963. I n s t i t u t e of In d u s t r i a l Relations: University of B r i t i s h Colum b i a , 1963. Organization f o r Economic Co-operation and Development. Manpower and Social A f f a i r s Directorate A c t i v i t y  20-13B: Co-ordinating Technical Change and Manpower  Planning at Enterprise Level. P a r i s , France, J u l y 1, 1966. Restricted paper. . The Requirements of Automated Jobs. North American Joint Conference, Washington, D.C., 1964. Pa r i s , France: O.E.C.D. Publ i c a t i o n , 1965. Reader's Digest. "Have you a better answer?". Advert isement appearing i n March, 1967 Issue. Report of the Commission of Inquiry Into the Effects of Mechanization i n the Windsor (Quebec) Plant of Domtar Pulp and Paper. Quebec, September, 1965. Simkin, William. Address before F i f t h Constitutional Convention, A.F.L.-C.I.O. Daily Proceedings. New York, November 15, 1963. - 220 - Snyder, J r . J o h n I . " I n d u s t r y ' s Human R e s p o n s i b i l i t i e s i n t h e Age o f A u t o m a t i o n " . A u t o m a t i o n and S o c i a l  Change. C o n f e r e n c e s p o n s o r e d by O n t a r i o Government Departments of Economics and Development, E d u c a t i o n , Labour and O n t a r i o Economic C o u n c i l , T o r o n t o , 1963. Somers, G.G., Cushman, E.L. and Weinberg, N. ( e d ' s . ) . A d j u s t i n g t o T e c h n o l o g i c a l Change. New York: H a r p e r and Row, P u b l i s h e r s , 1963. The R o y a l Commission on Government O r g a n i z a t i o n . The O r g a n i z a t i o n o f t h e Government o f Canada. Ottawa: Queen's P r i n t e r , V o l . 5, 1963. Vancouver Sun. The. " F i r s t A u t o m a t i o n C o n t r a c t Won by l o c o O i l Workers". F e b r u a r y 14, 1967. . "Who wants labour-management c o n s u l t a t i o n ? " . A d v e r t i s e m e n t a p p e a r i n g i n paper on F e b r u a r y 21, 1967. Wiener, N. The Human Use of Human B e i n g s : C y b e r n e t i c s  and S o c i e t y . B o s t o n : Houghton M i f f l i n Company, 1954. Wood, W„D. The C u r r e n t S t a t e of Labour-Management Co  o p e r a t i o n i n Canada. I n d u s t r i a l R e l a t i o n s C e n t r e : Queen's U n i v e r s i t y , K i n g s t o n , O n t a r i o , 1964. A P P E N D I X APPENDIX A PROPOSAL FOR PARTICIPATION I n t h e M a t t e r of The Manpower C o n s u l t a t i v e S e r v i c e and I n t h e M a t t e r of a P r o p o s a l f o r P a r t i c i p a t i o n hy The J o i n t C o n s u l t a t i v e Committee of The B r i t i s h Columbia Towing I n d u s t r y Vancouver, B„C. - 222 - The J o i n t C o n s u l t a t i v e Committee  of t h e B r i t i s h Columbia Towing I n d u s t r y . c/o Mr. J o h n Drew, R e p r e s e n t a t i v e , Manpower C o n s u l t a t i v e S e r v i c e , Department o f Labour, The Hon. A l l a n J . MacEaehen, M i n i s t e r of Labour, Government of Canada, Ottawa. S i r : On b e h a l f of t h e J o i n t C o n s u l t a t i v e Committee of the B r i t i s h Columbia Towing I n d u s t r y , c o n s i s t i n g o f t h e s e v e r a l p a r t i e s d e s c r i b e d h e r e i n (Appendix " A " ) , h e r e w i t h i s our P r o p o s a l f o r P a r t i c i p a t i o n i n t h e Res e a r c h Program I n c e n t i v e of t h e Manpower C o n s u l t a t i v e S e r v i c e . I t i s o u r u n d e r s t a n d i n g t h a t t h r o u g h t h e Manpower C o n s u l t a t i v e S e r v i c e of t h e Department o f Labour, f e d e r a l funds w i l l be made a v a i l a b l e t o t h e e x t e n t of h a l f the c o s t s of r e s e a r c h and p l a n n i n g f o r manpower adjustment brought about by t e c h n o l o g i c a l change i n o u r i n d u s t r y . The p a r t i e s have made v a r i o u s u n s u c c e s s f u l a t t e m p t s i n t h e p a s t t o s o l v e t h e gr o w i n g problem o f "manning" i n t h i s i n d u s t r y w h i c h i s under f e d e r a l j u r i s d i c t i o n . D u r i n g th e p r e s e n t c o l l e c t i v e b a r g a i n i n g and c o n c i l i a t i o n p e r i o d i t has been a g r e e d t o remove from t h e b a r g a i n i n g t h i s most d i f f i c u l t problem i n t h e hope t h a t agreement might be reached on t h e r e m a i n i n g i s s u e . A ppendix "B" o f t h e P r o p o s a l f o r P a r t i c i p a t i o n d e s c r i b e s d e t a i l s o f o u r program. - 223 - The J o i n t C o n s u l t a t i v e Committee a p p r e c i a t e s t h e e f f o r t s o f t h e Manpower C o n s u l t a t i v e S e r v i c e and a w a i t s your r e p l y . Yours t r u l y , f o r B r i t i s h C olumbia Towboat Owners' A s s o c i a t i o n . , f o r Canadian Merchant S e r v i c e G u i l d . By and on be h a l f o f t h e J o i n t Con- s u l t a t i v e f o r Canadian B r o t h e r h o o d o f R a i l w a y , T r a n s - Committee o f p o r t and G e n e r a l Workers, L o c a l 425. t h e B r i t i s h C olumbia Tow i n g I n d u s t r y •  f o r Canadian B r o t h e r h o o d of R a i l w a y , T r a n s  p o r t and G e n e r a l Workers, L o c a l 400. f o r S e a f a r e r s ' I n t e r n a t i o n a l U n i o n o f Canada, P a c i f i c C o a s t D i v i s i o n . - 224 - APPENDIX "A" Companies and Unions i n v o l v e d i n t h e B r i t i s h C o l  umbia Towing I n d u s t r y and r e p r e s e n t e d by t h e J o i n t Con s u l t a t i v e Committee: I , Companies ( r e p r e s e n t e d by B.C. Towboat Owners* A s s o c i a t i o n ) : 1. A t l a s Towing L t d . 2. B a i r d ' s Tugboats L t d . 3o Beckstrom Towing Co. L t d . 4. B e n d i c k s o n Towing Co. L t d . 5. B r i d g e Towing Co. (Marpole Towing) 6. Bute Towing L t d . 7. Canadian Tugboat Co. L t d . 8. C a t e s , C H . & Sons 9. Chemainus Towing Co. L t d . 10. C l i f f , M.R. Tugboat Co. L t d . 11. C o a s t a l Towing Co. L t d . 12. Deeks-McBride L t d . 13. E l s i e Towing S e r v i c e 14. E s c o t t , A. Co. L t d . 15. G.M. F l y e r Towing Co. L t d . 16. Great West Towing & S a l v a g e L t d . 17. G u l f o f G e o r g i a Towing Co. L t d . 18. Harbour S e r v i c e s L t d . 19. Harken Towing Co. L t d . 20. Hodder Tugboat Co. L t d . 21. Hutowco M a r i n e L t d . 22. I s l a n d Tug & Barge L t d . 23. I v e r s o n B r o s . Towing 24. Kingcome N a v i g a t i o n Co. L t d . 25. L y t t l e B r o s . L t d . 26. M a r i t i m e Towing Co. L t d . 27. McKenzie Barge & M a r i n e Ways L t d . 28. Nanaimo M a r i n e S e r v i c e s L t d . 29. Ocean Cement L t d . 30. P a c i f i c Tanker Co. L t d . 31. P a r s o n s Towing L t d . 32. P o i n t Grey Towing Co. L t d . 33. Q u a t s i n o N a v i g a t i o n Co. L t d . 34.. R i v e r Towing Co. L t d . 35. Stone B r o s . 36. S t r a d i o t t i B r o t h e r s L t d . 37. S t r a i t s Towing L i m i t e d 38. S w i f t s u r e Towing Co. L t d . 39. Texada Towing Co. L t d . 40. V a l l e y Towing L t d . 41. Vancouver Tug Boat Co. L t d . 42. V i c t o r i a Tugboats L t d . - 225 - V i k i n g Tugboat Co. L t d . Western Tug & Barge L t d . W e s t m i n s t e r Tugboats L t d . Y o r k e , F.M. & Sons L t d . C a n a d i a n Merchant S e r v i c e G u i l d . Canadian B r o t h e r h o o d o f R a i l w a y , T r a n s  p o r t and G e n e r a l Workers, L o c a l 425. Canadian B r o t h e r h o o d of R a i l w a y , T r a n s  p o r t and G e n e r a l Workers, L o c a l 400. S e a f a r e r s ' I n t e r n a t i o n a l U n i o n o f Canada, P a c i f i c C o a s t D i v i s i o n . - 226 - APPENDIX "B" The J o i n t C o n s u l t a t i v e Committee o f t h e B r i t i s h Columbia Towing I n d u s t r y I . O r g a n i z a t i o n : The J o i n t C o n s u l t a t i v e Committee c o n s i s t s o f r e  p r e s e n t a t i v e s of t h e o r g a n i z a t i o n s l i s t e d i n Appendix "A" who have come t o g e t h e r f o r t h e purpose of i n i t i a t i n g r e  s e a r c h , a n a l y s i s , c o n s u l t a t i o n and p l a n n i n g i n t h e m a t t e r of "manning" I n t h e Towing I n d u s t r y . A R e s e a r c h Committee has been e s t a b l i s h e d c o n s i s t  i n g o f two i n d i v i d u a l s a p p o i n t e d by management and two i n  d i v i d u a l s a p p o i n t e d by t h e u n i o n s . A R e s e a r c h Chairman- D i r e c t o r w i l l be r e t a i n e d t o be r e s p o n s i b l e f o r p e r f o r m i n g r e s e a r c h and p l a n n i n g w i t h t h e a i d of t h e R e s e a r c h Comm i t t e e and under t h e d i r e c t i o n o f t h e J o i n t C o n s u l t a t i v e Committee. Mr. E.D. McPhee, of 2588 W a l l a c e C r e s c e n t , Van c o u v e r , B r i t i s h C o lumbia, has been a p p o i n t e d t o t h e pos i t i o n o f R e s e a r c h C h a i r m a n - D i r e c t o r . I I . The Manpower Adjustment Problem S t a t e d : The Towing I n d u s t r y of B r i t i s h Columbia i s c u r r  e n t l y c h a r a c t e r i z e d by growth, c o m p e t i t i o n and t e c h n o  l o g i c a l change so t h a t "manning s c a l e s " a r e i n d i s p u t e . P a s t e f f o r t s t o r e a c h agreement o v e r t h i s i s s u e have been u n s u c c e s s f u l . I I I . Statement o f P urpose: - 22? - The purpose of t h i s program s h a l l be to examine a l l aspects of "manning" of the present and foreseeable future i n the Towing Industry with the aim of preparing recommen dations f o r consideration by the J o i n t Consultative Comm i t t e e . In carrying out t h i s purpose the Research Committee s h a l l have due regard f o r the r i g h t s , obligations and res p o n s i b i l i t i e s of a l l p a r t i e s , and s h a l l equate the needs of technical e f f i c i e n c y with those of sound i n d u s t r i a l and human relations as wel l as safety i n the industry. The Research Committee s h a l l report regularly to the J o i n t Committee and w i l l consult regularly i n pre paring i t s recommendations. IV. Costs: I t i s estimated that the program w i l l require be tween nine and twelve months commencing • , 1964. Total costs are estimated at $13,000 (see below) and w i l l be shared on the basis of one-half by the Govern ment of Canada and one-half by the organizations repres ented by the J o i n t Consultative Committee. The remuneration of the Research Chairman-Director s h a l l be at the rate of $100.00 per day. The organizations represented by the Jo i n t Consul t a t i v e Committee s h a l l share t h e i r portion of the t o t a l costs on the basis of one-half by the B r i t i s h Columbia - 228 - Towboat Owners' A s s o c i a t i o n , and o n e - h a l f by t h e l a b o u r u n i o n o r g a n i z a t i o n s . ESTIMATE OP COSTS and COST DISTRIBUTION Government B.C. Towboat Labour U n i o n T o t a l of Canada Owners A s s n . O r g a n i z a t i o n s R e s e a r c h Chairman- D i r e c t o r 9,000 4,500 2,250 2,250 A d m i n i s t  r a t i v e 1,000 500 250 250 R e s e a r c h Committee- 2 Mgt Rep r e s e n t 's 1,500 750 750 2 U n i o n Represen t a t i v e s 1 .500 750 750 $13,000 $6,500 $3,250 $3,250 V. S t a t u s Quo: (a) O t h e r t h a n v e s s e l s of t h e 65 f o o t c l a s s p i o n e e r e d by t h e " G u l f W a r r i o r " and "Jacques C a r t i e r " i t i s a g r e e d t h a t changes i n manning d u r i n g t h e p e r i o d o f t h i s e n q u i r y s h a l l o n l y be made I n cases where a change i n a r e a , t y p e of j o b , o r v e s s e l equipment would mean t h a t t h e new man n i n g would be i n a c c o r d a n c e w i t h m a j o r i t y p r a c t i c e w i t h i n t h e I n d u s t r y f o r v e s s e l s of t h i s t y p e . I n any case where i t i s not a g r e e d t h a t t h e change i s i n a c c o r d a n c e w i t h m a j o r i t y p r a c t i c e i n t h e i n d u s t r y , t h e d e c i s i o n s h a l l be made by a m a j o r i t y v o t e o f t h e r e s e a r c h committee. The d e c i s i o n of t h e R e s e a r c h Committee s h a l l be a - 229 - temporary one f o r t h e d u r a t i o n of t h e e n q u i r y o n l y and s h a l l be based s t r i c t l y on t h e q u e s t i o n of whether o r not t h e manning p r a c t i c e i s i n a c c o r d w i t h e x i s t i n g p r a c t i c e i n a m a j o r i t y o f t h e i n d u s t r y f o r t h i s t y p e o f v e s s e l d o i n g t h i s t y p e o f work. I t i s f u r t h e r a g r e e d , t h e r e w i l l be no m a j o r changes i n t h e c o m p o s i t i o n o f t h e crews f o r t h e s e v e s s e l s , u n l e s s a g r e e d t o by a l l p a r t i e s c o n c e r n e d , (b) V e s s e l s of t h e 65 f o o t c l a s s - I n o r d e r t o r e a c h agreement on s t a t u s quo, i t i s a g r e e d t h a t a f o r m u l a on manning must be e s t a b l i s h e d f o r v e s s e l s of t h i s c l a s s now o p e r a t i n g w i t h f o u r man crews and new v e s s e l s put i n t o s e r v i c e d u r i n g t h e d u r a t i o n o f t h i s e n q u i r y . I t i s f u r t h e r a g r e e d , t h e r e s h a l l be no m a jor changes i n t h e c o m p o s i t i o n o f t h e crews f o r t h e s e v e s s e l s u n l e s s a g r e e d t o by a l l p a r t i e s c o n c e r n e d . T h e r e f o r e , a l l p a r t i e s a g r e e t h a t h a l f o f t h e s e v e s s e l s w i l l c a r r y a crew of f i v e and t h e o t h e r h a l f w i l l c a r r y a crew o f f o u r and t h i s w i l l be e s t a b l i s h e d i n t h e f o l l o w i n g ways E v e r y second v e s s e l of t h i s t y p e w i t h i n a company w i l l c a r r y a crew of f o u r men, a l l o t h e r s w i l l c a r r y a crew of f i v e , e,g„ - 230 - No. o f v e s s e l s of t h i s t y p e o p e r a t e d by Company Number of Crew 1st 2nd 3rd 4th 5th 6th V e s s e l V e s s e l V e s s e l V e s s e l V e s s e l V e s s e l 1 5 2 5 4 3 5 4 5 4 5 4 5 4 5 5 4 5 4 5 6 5 4 5 4 5 4 T h i s d e c i s i o n i s made o n l y so t h a t t h e manning en q u i r y can c a r r y f o r w a r d . T h e r e f o r e i t i s c l e a r l y under s t o o d t h a t t h i s d e c i s i o n i s t o have no i n f l u e n c e on t h e outcome o f t h e e n q u i r y and t h i s i s t o be c l e a r l y s t a t e d i n t h e s t a t e m e n t o f p u r p o s e . APPENDIX B MANPOWER ASSESSMENT INCENTIVE AGREEMENT MEMORANDUM OF AGREEMENT DATED the 24th day of February, A.D. 1 9 6 5 o B E T W E E N : THE MINISTER OF LABOUR OF CANADA hereinafter referred to as "the Minister" OF THE FIRST PART A N D : THE JOINT CONSULTATIVE COMMITTEE OF THE BRITISH COLUMBIA TOWING INDUSTRY hereinafter referred to as "the Committee" OF THE SECOND PART WHEREAS vote No0 5 of the Appropriation Act, No. 10, 1 9 6 4 , authorizes payments i n accordance with agreements entered into with the approval of the Governor i n Council by the Minister of Labour with provinces, employers and workers In respect of labour mobility and assessment incentives; AND WHEREAS technological developments i n the towing i n  dustry of B r i t i s h Columbia have created manpower adjust ment problems; AND WHEREAS the Committee was established pursuant to an agreement entered into between the member companies of the B r i t i s h Columbia Towboat Owners' Association and the unions representing t h e i r employees f o r the purpose of carrying out a program of research and assessment with a view to developing possible solutions to the said manpower adjustment problems; AND WHEREAS the Minister has been authorized to enter into t h i s agreement by Order i n Council P.C. 1965-14/138 of January 28th 1 9 6 5 . NOW, THEREFORE, THIS AGREEMENT WITNESSETH that the parties hereto have mutually agreed as follows: 1. The Committee w i l l undertake a program of research and assessment covering a l l aspects of the manpower - 2 3 2 - a d j u s t m e n t problems a r i s i n g out o f t e c h n o l o g i c a l d e v e l o p  ments i n t h e i n d u s t r y , 2 , F o r t h e purpose of c a r r y i n g out t h e program, t h e Committee w i l l e s t a b l i s h a r e s e a r c h sub-committee w h i c h , under i t s d i r e c t i o n s , (a) w i l l g a t h e r a l l r e l e v a n t i n f o r m a t i o n r e l a t i n g t o t h e manpower ad j u s t m e n t problems r e f e r r e d t o I n c l a u s e 1 ; (b) w i l l a s s e s s and a n a l y z e t h e i m p l i c a t i o n s o f e x i s t i n g and f u t u r e t e c h n o l o g i c a l changes i n t h e i n d u s t r y and t h e consequences t h e r e o f ; (c) on t h e b a s i s o f t h e assessment r e f e r r e d t o i n p a r a g r a p h ( b ) , w i l l d e v e l o p measures f o r t h e s a t i s f a c t o r y a d j u s t m e n t o f manpower d i s l o c a t i o n a r i s i n g out o f t h e t e c h n o l o g i c a l changes i n t h e i n d u s t r y , h a v i n g due r e g a r d f o r ( i ) t h e r i g h t s and r e s p o n s i b i l i t i e s of employers and w o r k e r s i n t h e i n d u s t r y , ( I I ) t h e n e c e s s i t y o f e q u a t i n g t h e d e s i r  a b i l i t y f o r t e c h n i c a l e f f i c i e n c y w i t h t h e need f o r sound i n d u s t r i a l and human r e l a t i o n s , and ( i i i ) t h e need f o r s a f e t y I n t h e i n d u s t r y , and (d) w i l l make a w r i t t e n r e p o r t of i t s f i n d i n g s and recommendations t o t h e Committee, 3 , The Committee w i l l engage t h e s e r v i c e s o f a com p e t e n t p e r s o n t o a c t as c h a i r m a n - d i r e c t o r o f t h e r e s e a r c h sub-committee e s t a b l i s h e d I n a c c o r d a n c e w i t h c l a u s e 2 , 4, Upon c o m p l e t i o n o f t h e program, t h e Committee w i l l f o r w a r d a copy o f t h e r e p o r t o f t h e r e s e a r c h sub-committee t o t h e M i n i s t e r t o g e t h e r w i t h a statement o f t h e a c t i o n s , i f any, i t proposes t o t a k e as a r e s u l t of t h e recommend a t i o n s I n t h e s a i d r e p o r t , 5 , The M i n i s t e r w i l l , s u b j e c t t o t h i s agreement, pay t h e Committee an assessment i n c e n t i v e w h i c h s h a l l be s i x t y - f i v e hundred d o l l a r s o r f i f t y p e r c e n t of t h e s h a r e  a b l e d i s b u r s e m e n t s made by t h e Committee i n c a r r y i n g out t h e program, w h i c h e v e r i s t h e l e s s e r amount, 6, S u b j e c t t o t h i s agreement, t h e assessment i n c e n t i v e - 233 - s h a l l he due and p a y a b l e i n f u l l t h i r t y days a f t e r t h e d a t e t h e M i n i s t e r r e c e i v e d t h e r e p o r t and statement r e  f e r r e d t o i n c l a u s e 4, but t h e M i n i s t e r may, on a p p l i c a t i o n t h e r e f o r by t h e Committee make up t o f o u r p r o g r e s s pay ments on a c c o u n t o f t h e assessment i n c e n t i v e t o r e i m b u r s e t h e Committee f o r s h a r e a b l e d i s b u r s e m e n t s made t o t h e d a t e t h e a p p l i c a t i o n i s made 0 7. The amount o f any p r o g r e s s payment made i n a c c o r d  ance w i t h c l a u s e 6 s m a l l not exceed f i f t y p e r c e n t o f t h e d i s b u r s e m e n t s made by t h e Committee f o r t h e p e r i o d i n r e s p e c t o f w h i c h i t i s p a i d . 8. The M i n i s t e r w i l l n o t be r e q u i r e d t o make p r o g r e s s payments t o t a l l i n g more t h a n f i f t y - f i v e hundred d o l l a r s p r i o r t o r e c e i v i n g t h e copy o f t h e r e p o r t and statement r e f e r r e d t o i n c l a u s e 4, 9. N o t w i t h s t a n d i n g c l a u s e s 5 and 6, no payment w i l l be made by t h e M i n i s t e r on a c c o u n t o f t h e assessment i n c e n  t i v e u n l e s s a n a p p l i c a t i o n t h e r e f o r i s made i n such form as t h e M i n i s t e r may p r e s c r i b e and accompanied by such o t h e r forms and documents as t h e M i n i s t e r may r e q u i r e , 1 0 . The Committee w i l l keep such r e c o r d s and p r o v i d e t h e M i n i s t e r w i t h such i n f o r m a t i o n as he deems n e e e s s a r y t o s u b s t a n t i a t e a p p l i c a t i o n s f o r t h e payment o f t h e assessment i n c e n t i v e and w i l l a l l o w f r e e a c c e s s t o such r e c o r d s a t c o n v e n i e n t t i m e s t o a l l p e r s o n s a u t h o r i z e d by law t o keep o r examine t h e r e c o r d s r e l a t i n g t o t h e a c c  ounts o f t h e Department of Labour, 1 1 . I n t h i s agreement, t h e e x p r e s s i o n (a) "assessment i n c e n t i v e " means t h e assessment i n  c e n t i v e r e f e r r e d t o i n c l a u s e 5? (b) " i n d u s t r y " means t h e t o w i n g i n d u s t r y o f B r i t i s h C o l u m b i a ; (o) "program" means t h e program r e f e r r e d t o i n c l a u s e 1 ; (d) " s h a r e a b l e d i s b u r s e m e n t s " means t h e d i s b u r s e  ments r e f e r r e d t o i n t h e s c h e d u l e a t t a c h e d h e r e t o . IN WITNESS WHEREOF t h e p a r t i e s h e r e t o have s e t t h e i r hands and s e a l s on t h e day and y e a r f i r s t above w r i t t e n . IN THE PRESENCE OF: THE MINISTER OF LABOUR - 234 - IN THE PRESENCE OP: THE JOINT CONSULTATIVE COMMITTEE OF THE BRITISH COLUMBIA TOWING INDUSTRY - 235 - S C H E D U L E SHAREABLE DISBURSEMENTS F o r purposes of t h e agreement t o w h i c h t h i s s ched u l e i s a t t a c h e d , t h e " s h a r e a b l e d i s b u r s e m e n t s " a r e as f o l l o w s : S a l a r i e s 1„ The r e m u n e r a t i o n o f t h e c h a i r m a n - d i r e c t o r o f t h e r e s e a r c h sub-committee, up t o a maximum o f n i n e thousand dollars„ 20 The r e g u l a r s a l a r i e s o r wages o f employees o r a p p o i n t e e s , of t h e companies and t h e u n i o n s named by t h e Committee t o s e r v e under t h e r e s e a r c h sub-committee f o r t h e p e r i o d s d u r i n g w h i c h t h e c h a i r m a n - d i r e c t o r c e r t i f i e s t h e y were engaged i n t h e work o f t h e sub-committee; up t o a maximum o f t h r e e thousand d o l l a r s . A d m i n i s t r a t i o n The n e c e s s a r y d i s b u r s e m e n t s f o r t r a v e l l i n g , o f f i c e s u p p l i e s , s t e n o g r a p h i c s e r v i c e s , t h e p r e p a r a t i o n and p r i n t i n g o f t h e r e p o r t o f t h e r e s e a r c h sub-committee and such o t h e r n e c e s s  a r y expenses o f t h e r e s e a r c h sub-committee and of i t s c h a i r m a n - d i r e c t o r as a r e approved by t h e M i n i s t e r ; up t o a maximum o f one thousand d o l l a r s . APPENDIX C CO-ORDINATING MANPOWER ADJUSTMENT AND TECHNOLOGICAL CHANGE IN THE BRITISH COLUMBIA TOWING INDUSTRY A CASE SUMMARY OP JOINT RESEARCH AND CONSULTATION BY UNIONS AND EMPLOYERS INTO MANPOWER ASSESSMENT AND PLANNING PROBLEMS IN THE BRITISH COLUMBIA TOW ING INDUSTRY UNDER THE AUSPICES OP THE MANPOWER CONSULTATIVE SERVICE OF THE FEDERAL DEPARTMENT OF MANPOWER AND IMMIGRATION P r e p a r e d by A l e e J.K, K e y l o c k - 237 - TABLE OF CONTENTS Page INTRODUCTION 2 3 8 DEVELOPMENT OF THE PROGRAM 238 PROGRAM METHODOLOGY 241 ASSESSMENT OF THE PROBLEM 2 4 3 Canada Shipping Act 243 Responsibility f o r Manning 245 RECOMMENDED APPROACH TO MANPOWER ADJUSTMENT 250 Determinants of Manning Scales 250 Research Recommendations 250 Major Areas of Contention 253 Unions' Submission 254 Owners' Submission 258 Binding Decisions 26l Accidents and Safety 268 Training and Licensing 273 B r i t i s h Columbia Tugboat Manning Board 2?6 SUBSEQUENT PROCEEDINGS AND RESULTS 280 - 238 - CO-ORDINATING MANPOWER ADJUSTMENT AND TECHNOLOGICAL CHANGE IN THE BRITISH COLUMBIA TOWING INDUSTRY I . INTRODUCTION F o r t h e p a s t two y e a r s l a b o u r and management o f t h e B r i t i s h Columbia Towing I n d u s t r y have met i n j o i n t c o n s u l t a t i o n and r e s e a r c h , under t h e a u s p i c e s of t h e Man power C o n s u l t a t i v e S e r v i c e , t o s t u d y i s s u e s c o n c e r n i n g manning and minimum crew r e q u i r e m e n t s . D u r i n g t h i s p e r i o d t h e p a r t i e s have endeavored t o r e a c h agreement on manning problems a r i s i n g out of t e c h n o l o g i c a l change i n t h e t o w i n g i n d u s t r y . Many o f t h e problems, w h i c h were d e s t i n e d t o become i s s u e s f o r c o l l e c t i v e b a r g a i n i n g , were overcome i n the p r o c e s s of r e s e a r c h and j o i n t c o n s u l t a t i o n and t h o s e t h a t s t i l l remained i n s u r m o u n t a b l e were r e f e r r e d t o a b i n d i n g d e c i s i o n - m a k i n g arrangement, t h e d u r a t i o n and e f f e c t of w h i c h would t e r m i n a t e on A p r i l 1, 1968 u n l e s s o t h e r w i s e a g r e e d . The f o l l o w i n g r e p o r t i s a summary and r e v i e w o f t h e s a l i e n t f e a t u r e s of t h e c a s e . I I . DEVELOPMENT OF THE PROGRAM The B r i t i s h Columbia Towing I n d u s t r y has grown a t l-Thls r e p o r t i s based on t h e Rep o r t o f t h e R e s e a r c h Sub-Committee t o t h e J o i n t C o n s u l t a t i v e Committee, B r i t i s h Columbia Towing I n d u s t r y on Manning; f i l e s and c o r r e s p o n d  ence of t h e Manpower C o n s u l t a t i v e S e r v i c e ; and p e r s o n a l i n t e r v i e w s c o n ducted by t h e a u t h o r . - 239 - sueh a r a p i d r a t e t h a t i t has become one of t h e major d e t e r m i n a n t s of t h e economy o f t h e P r o v i n c e ' s s h i p p i n g i n d u s t r y . I n d e e d , i t has become t h e l a r g e s t s i n g l e c o a s t  a l c a r r i e r i n t h e P r o v i n c e . The r e a s o n f o r t h i s r a p i d growth l i e s m a i n l y i n t h e t u g b o a t ' s v e r s a t i l i t y and i t s low c o s t r e l a t i v e t o t h e l a r g e r c a r g o v e s s e l s . W i t h scows, barges and r a f t s , t h e t u g can handle l o g s , p u l p and p a p e r , c o a l , r o c k and s t o n e , sand and g r a v e l , hog f u e l , l i m e , f e r t i l i z e r , cement, p e t r o l e u m p r o d u c t s , m a c h i n e r y , f r e i g h t c a r s , and a m y r i a d of g e n e r a l p r o d u c t s . But t e c h n o l o g i c a l change has accompanied t h i s g r owth. From 19 23 onwards, newer and more p o w e r f u l d i e s - e l e n g i n e s have e n a b l e d t u g s t o c a r r y much l a r g e r l o a d s w i t h f e w e r crew. D u r i n g t h i s p e r i o d , however, no emer gent p a t t e r n s appeared w i t h r e l a t i o n t o crew s i z e and l o a d c a r r i e d . The manning problems t h a t d e v e l o p e d were t h o s e u n i q u e t o a g r o w i n g i n d u s t r y , and i n t h a t r e s p e c t n e c e s s  i t a t e d advance p l a n n i n g t o c o - o r d i n a t e manpower r e q u i r e  ments w i t h t h e s e growth p a t t e r n s and r e s u l t i n g t e c h n o  l o g i c a l change. Both t h e owners and u n i o n s have shown f u l l e v i d e n c e of t h e i r i n t e n t t o a g r e e on r u l e s g o v e r n i n g p e r s o n n e l and c l a s s i f i c a t i o n of a l l v e s s e l s I n t h e B r i t i s h Columbia Towing I n d u s t r y . As e a r l y as J a n u a r y , I96I a J o i n t Comm i t t e e was formed w i t h r e s p r e s e n t a t i v e s from t h e B r i t i s h Columbia Towboat Owners' A s s o c i a t i o n and t h e Canadian - 240 - Merchant S e r v i c e G u i l d , one o f f o u r m a r i t i m e u n i o n s p a r t i c i p a t i n g i n t h e B r i t i s h Columbia Towing I n d u s t r y . I n F e b r u a r y , 1962 t h e r e p r e s e n t a t i v e s came t o agreement on terms under w h i c h t h e y b e l i e v e d t h a t t h e i n d u s t r y c o u l d o p e r a t e e c o n o m i c a l l y w h i l e , a t t h e same t i m e , t h e v e s s e l s c o u l d be s u f f i c i e n t l y manned t o p r o v i d e a r e a s o n  a b l e degree of s a f e t y . The Owners' A s s o c i a t i o n r e p r e s e n  t a t i v e s commented, however, t h a t "a c e r t a i n segment of t h e towboat i n d u s t r y g a i n a c o n s i d e r a b l e advantage under t h e e x i s t i n g system of manning and t h e r e f o r e do n o t w i s h t h i s s u b j e c t t o p r o g r e s s beyond t h e d i s c u s s i o n s t a g e w i t h t h e G u i l d " . T h e r e f o r e , t h e E x e c u t i v e Committee of t h e Owners' A s s o c i a t i o n o n l y p a r t i a l l y a c c e p t e d t h e p r o  p o s a l s r e f e r r i n g p a r t i c u l a r i t e m s t o a r b i t r a t i o n . A new J o i n t Committee was s u b s e q u e n t l y e s t a b l i s h e d b u t by December 13, 1963 t h e r e were s t i l l c e r t a i n c l a u s e s w h i c h c o u l d not be a g r e e d upon and t h e case was r e f e r r e d t o b i n d i n g a r b i t r a t i o n . C o l l e c t i v e agreements i n t h e i n d u s t r y were t o t e r m  i n a t e i n t h e autumn o f 1964. H a v i n g found no o t h e r a v a i l  a b l e means of s o l u t i o n and n o t even b e i n g a b l e t o a g r e e on terms o f r e f e r e n c e f o r b i n d i n g a r b i t r a t i o n p r o c e e d i n g s , t h e u n i o n s became d e t e r m i n e d t o f o r c e agreement. I t was a p p a r e n t t o a l l p a r t i e s t h a t a c o n f l i c t was g o i n g t o d e v e l o p o v e r t h e q u e s t i o n o f manning I n t h e e n s u i n g neg o t i a t i o n s and t h a t a s t r i k e would be I n e v i t a b l e . • - 241 - At t h i s time a representative of the Manpower Con su l t a t i v e Service proposed to the parties that the issue of manning he treated outside the context of c o l l e c t i v e bargaining,, A broad j o i n t study committee was suggested, consisting of representatives of a l l four unions and the Owners' Association,, The committee was to meet f o r the purpose of research, consultation and planning i n the area of manning i n the Industry. I I I . PROGRAM METHODOLOGY On the 28th day of December, 1964 each of the four maritime unions p a r t i c i p a t i n g i n the B r i t i s h Columbia Tow ing Industry and the member companies of the B r i t i s h Col umbia Towboat Owners' Association signed a Memorandum of Understanding i n which the parties agreed to carry out a program of Joint research and c o n s u l t a t i o n 1 . I t was agreed that the subject matter should not i n any manner be an issue i n any negotiations f o r new c o l l e c t i v e agree ments, Including c o n c i l i a t i o n proceedings. I t was further agreed that any issues remaining i n disagreement a f t e r hearing f u l l argument from both parties would be submitted to the Research Chairman f o r binding decision. The p e r t i  nent statements of the Binding Award provision follow: xThe Proposal f o r P a r t i c i p a t i o n , Appendix A, p. 221, includes the pertinent information contained i n the Memorandum of Understanding. - 242 - " I n c a r r y i n g out t h e d e c i s i o n making f u n c t i o n D r . E.D. MacPhee s h a l l , t o h i s own s a t i s f a c t i o n , h e a r argument and d i s c u s s i o n a t a m e e t i n g , o r meetings o f t h e J o i n t C o n s u l t a t i v e Committee. No o t h e r form o f communication s h a l l t a k e p l a c e h a v i n g t o do w i t h t h e s u b j e c t of manning i n t h e i n d u s t r y . . . . i t i s a g r e e d t h a t changes i n manning b o t h as t o number of p e r s o n n e l aboard t h e v e s s e l and c l a s s i f i c a t i o n o f p e r s o n n e l a b o a r d t h e v e s s e l d u r i n g t h e p e r i o d of t h i s e n q u i r y s h a l l o n l y be made i n c a s e s where a change i n a r e a , t y p e of Job, o r v e s s e l equipment would mean t h a t t h e new manning would be i n a c c o r d a n c e w i t h major i t y p r a c t i c e w i t h i n t h e i n d u s t r y f o r v e s s e l s o f t h i s t y p e . " The Manpower C o n s u l t a t i v e S e r v i c e , as a f e d e r a l government i n c e n t i v e , p r o v i d e d t e c h n i c a l and a d m i n i s t r a t  i v e s e r v i c e t o t h e p a r t i e s and assumed o n e - h a l f t h e c o s t of t h e program. However, i t was u n d e r s t o o d and a g r e e d t h a t no f e d e r a l government f u n d s , o r o t h e r t y p e of f e d  e r a l government p a r t i c i p a t i o n was a v a i l a b l e f o r t h e p urpose of c a r r y i n g out t h e f i n a l and b i n d i n g p r o c e d u r e . The c o s t of t h e b i n d i n g p r o c e d u r e and t h e r e m a i n i n g one- h a l f o f t h e r e s e a r c h and d i s c u s s i o n program were t o be p r o v i d e d by t h e Owners* A s s o c i a t i o n and t h e u n i o n s . I n h a n d i n g down t h e i r recommendations i n t h e form of a "Beport on Manning", t h e R e s e a r c h Sub-Committee made t h e i r p o s i t i o n c l e a r i n t h e f o l l o w i n g s t a t e m e n t : "We have endeavoured t o e s t a b l i s h c e r t a i n p r i n  c i p l e s t h r o u g h o u t o u r s t u d y i n t h e e x p e c t a t i o n t h a t a l l v e s s e l s , o p e r a t i n g and b e i n g b u i l t , w i l l come under t h e s e p r i n c i p l e s . We w i l l s u g g e s t , s t r o n g l y , t h a t c e r t a i n s p e c i f i c s s h o u l d be made i n t h e a l l o c a t i o n o f crew, but t h e own e r s and m a sters have t h e r i g h t t o make such a l l o c a t i o n a s i s deemed b e s t . " - 243 - The f o l l o w i n g s e c t i o n s a r e an amalgamation of t h e i d e a s p r e s e n t e d i n t h e r e s e a r c h recommendations and t h e s u r r o u n d i n g j o i n t c o n s u l t a t i o n , I V . ASSESSMENT OF THE PROBLEM Canada S h i p p i n g A c t 1 I n a t t e m p t i n g t o make recommendations c o v e r i n g a l l a s p e c t s of manning i n t h e B r i t i s h Columbia Towing I n d u s t r y b o t h f o r t h e p r e s e n t and f o r e s e e a b l e f u t u r e , t h e Res e a r c h Sub-Committee was i m m e d i a t e l y f a c e d w i t h t h e d e t e r m i n a t i o n o f r e s p o n s i b i l i t i e s o f a l l p a r t i e s c o n c e r n e d . The f i r s t s t e p i n such a d e t e r m i n a t i o n was t o i n t e r p r e t and e s t a b  l i s h t h e l e g a l r o l e as p r o v i d e d f o r i n t h e Canada S h i p p i n g A c t , The Canada S h i p p i n g A c t s t i p u l a t e s t h e o p e r a t i n g p r o c e d u r e s t o be f o l l o w e d by a l l s e a g o i n g v e s s e l s e i t h e r by d i r e c t i o n o r by e x c l u s i o n . S p e c i f i c a l l y , f o r t h e t o w i n g i n d u s t r y , t h e A c t d e t e r m i n e s t h e t y p e o f v e s s e l s u b j e c t t o d i r e c t i o n o r e x c l u s i o n . T h i s t y p e of v e s s e l i s d e t e r m i n e d by g r o s s tonnage and n o m i n a l horsepower; t h o s e exempted from r e g i s t r y f a l l i n t o a c l a s s below f i f  t e e n t o n s and t e n horsepower. The A c t a l s o s t i p u l a t e s t h a t t u g s g e n e r a l l y o p e r a t e ^Canada S h i p p i n g A c t , R e v i s e d S t a t u t e s of Canada. (1952), Ch. 29. - 244 - i n "home t r a d e " w a t e r s . Four c l a s s i f i c a t i o n s of home t r a d e voyage a r e a v a i l a b l e , t h e p e r t i n e n t one b e i n g s p e c i  f i e d on a n I n s p e c t i o n c e r t i f i c a t e , i s s u e d by t h e Steamship I n s p e c t i o n B r a n c h o f t h e Department o f T r a n s p o r t , and each one more c o n f i n i n g t h a n t h e p r e v i o u s . A home t r a d e voyage means: "...a voyage not b e i n g an i n l a n d o r minor w a t e r s voyage between p l a c e s w i t h i n t h e a r e a s f o l l o w i n g , namely, Canada, t h e U n i t e d S t a t e s o f A m e r i c a o t h e r t h a n H a w a i i , S t . P i e r r e and M i q u e l o n , t h e West I n d i e s , M e x i c o , C e n t r a l A m e r i c a and t h e n o r t h e a s t c o a s t o f South A m e r i c a , i n t h e co u r s e of w h i c h a s h i p does not go s o u t h o f t h e s i x t h p a r a l l e l o f n o r t h l a t i t u d e . " The Canada S h i p p i n g A c t a l s o e n t e r s i n t o t h e s p e c i  f i c a t i o n of minimum manning r e q u i r e m e n t s of m a s t e r s , mates, e n g i n e e r s and seamen. A number o f s e c t i o n s of t h e A c t s t a t e r e q u i r e m e n t s under s p e c i f i c c o n d i t i o n s t o w h i c h t h e o p e r a t o r s a r e e x p e c t e d t o comply. A statement such as S e c t i o n 1 1 5 ( 1 ) , i . e . " E v e r y s t e a m s h i p r e g i s t e r e d i n Canada, o r owned I n C a n a d a . . . s h a i l , when making any voyage, be p r o v i d e d w i t h e n g i n e e r s d u l y c e r t i f i c a t e d a c c o r d i n g t o th e f o l l o w i n g s c a l e . . . " I s a c l e a r i n d i c a t i o n of manning r e g u l a t i o n by t h e A c t . I n a d d i t i o n , P a r t V I I of t h e Canada S h i p p i n g A c t e s t a b l i s h e s a Bo a r d o f Steamship I n s p e c t o r s . The e s s e n t  i a l d u t y of t h i s B o a r d l i e s i n t h e i n s p e c t i o n o f h u l l s , m a c h i n e r y and equipment t o ensure t h a t t h e y a r e seaworthy f o r t h e j o b t h e y a r e In t e n d e d t o do; t o i n d i c a t e t h e c l a s s - 245 " of voyage on w h i c h t h e s t e a m s h i p i s f i t t o p l y ; t o s p e c i f y t h e l i f e - s a v i n g equipment t o he c a r r i e d ; t o ensure t h a t t h e m a s t e r s , mates and e n g i n e e r s a r e d u l y c e r t i f i e d as r e  q u i r e d under t h e p r o v i s i o n s of t h e A c t ; and t h a t t h e crew i s s u f f i c i e n t and e f f i c i e n t . The Canadian system o f i n  s p e c t i o n f o l l o w s t h e B r i t i s h system up t o t h i s l a t t e r p o i n t and i t i s h e r e i n t h a t c o n f l i c t has a r i s e n , v i z , who i s r e s p o n s i b l e f o r d e t e r m i n i n g t h e s u f f i c i e n c y and e f f i c  i e n c y of t h e crew? The d i f f e r e n c e of o p i n i o n o v e r " r e s p o n s i b i l i t y f o r manning" was t h e major i s s u e l e a d i n g t o t h e c o m p i l i n g o f th e B r i t i s h Columbia Towing I n d u s t r y Report on Manning, R e s p o n s i b i l i t y f o r Manning The Owners 1 A s s o c i a t i o n t r a d i t i o n a l l y assumed t h e p o s i t i o n t h a t manning was p u r e l y a management p r e r o g a t i v e and was o f no r i g h t f u l c o n c e r n t o t h e t r a d e u n i o n s . Some owners have, on o c c a s i o n , c o n s u l t e d w i t h t h e i r s h i p s ' m a s t e r s , but o n l y i n t h e i r i n d i v i d u a l c a p a c i t y and not as u n i o n members o r r e p r e s e n t a t i v e s . On t h e o t h e r hand, a g e n e r a l e x a m i n a t i o n of t h e t r a d i t i o n a l p o s i t i o n s t a k e n by t h e u n i o n s shows t h a t a l l but t h e Canadian Merchant S e r v i c e G u i l d s t r o n g l y b e l i e v e d t h a t manning was a p r o p e r s u b j e c t o f c o l l e c t i v e b a r g a i n  i n g and were p r e p a r e d t o t a k e s t r i k e a c t i o n i n o r d e r t o w i n t h i s p o i n t . The Canadian Merchant S e r v i c e G u i l d , - 246 - w h i l e m a i n t a i n i n g t h a t t h e i s s u e o f manning was e n t i r e l y one s u b j e c t t o r e g u l a t i o n by t h e government, o b j e c t e d t o t h e a l l e g e d low s t a n d a r d s of t h e Steamship I n s p e c t i o n B r a n c h and had a t t e m p t e d t o r e c t i f y t h i s by l e g i s l a t i v e and p o l i t i c a l r e p r e s e n t a t i o n s . F i n d i n g s o f t h e R e s e a r c h Sub-Committee n o t e d t h e p r o l o n g e d d i s p u t e o v e r th e r e g u l a t i o n o f manning and t h e f a c t t h a t t h e Canada S h i p p i n g A c t i s i t s e l f i n c o n f l i c t o v e r a u t h o r i t y and r e s p o n s i b i l i t y f o r manning. T h e i r R eport s t a t e s t h a t : " S e c t i o n 392(d) appears t o a u t h o r i z e s t e a m s h i p i n s p e c t o r s t o r e g u l a t e manning by I n s t r u c t i n g them t o r e p o r t , i f t h e y can ' w i t h p r o p r i e t y 1 , t h a t 'the crew i s s u f f i c i e n t and e f f i c i e n t 1 . On t h e o t h e r hand S e c t i o n 407 p r o v i d e s f i n e s f o r t h e owner and t h e m a s t e r i f t h e i r v e s s e l i s n ot 'manned w i t h a crew s u f f i c i e n t and e f f i c  i e n t from t h e p o i n t of view of s a f e t y o f l i f e f o r t h e purpose o f h e r i n t e n d e d voyage, and s h a l l , d u r i n g such voyage, be k e p t so manned'. C o r r e s  pondence. . . f u r t h e r c o n f u s e s th e s i t u a t i o n by d e n y i n g t h i s r e s p o n s i b i l i t y as t h a t of t h e Steam s h i p I n s p e c t i o n B r a n c h . " The R e s e a r c h Sub-Committee c o n c l u d e d t h a t t h e r e s  p o n s i b i l i t y f o r manning i s " c o m p l i c a t e d by a c l e a r d i v i  s i o n " between the owner and m a s t e r , and a "vagueness o f government r e g u l a t o r y a u t h o r i t y , w h i c h f o r our purposes can be assumed as n o n - e x i s t e n t " . The Canadian Merchant S e r v i c e G u i l d had a l s o sugg e s t e d t h a t t h e y "do not f e e l t h a t i n t e r p r e t a t i o n o f t h e A c t e v e r gave t h i s o v e r r u l i n g o r f i n a l a u t h o r i t y t o t h e Department of T r a n s p o r t o r t h e o p e r a t o r " and t h e y f e e l - 2 4 ? - t h a t t h e maste r i s e q u a l l y r e s p o n s i b l e f o r s a f e manning as t h e owners, f o r "...manning i s t h e d e c i s i o n o f t h e m a s t e r o f t h e s h i p i n q u e s t i o n as he a l o n e i s f i n a l l y r e s p o n s i b l e f o r t h e s a f e t y of t h a t s h i p , and t h e crew under h i s command." The Report f i n d i n g s suggest t h a t m a s t e r s , as memb e r s of management, do have t h e r i g h t and o b l i g a t i o n t o d i s c u s s t h e q u e s t i o n of what a crew s h o u l d c o n s i s t o f , not o n l y i n o f f i c e r s but i n u n l i c e n s e d p e r s o n n e l . How e v e r , t h e Report r e f u t e s t h e Canadian Merchant S e r v i c e G u i l d by s t a t i n g " t h e c l a i m t h a t m a s t e r s a l o n e have t h e r i g h t t o d e t e r m i n e t h e crew on a t u g i s not v a l i d . " The Report i n d i c a t e s agreement w i t h Mr. J u s t i c e T.G. N o r r i s , where, i n h i s r e p o r t on The D i s r u p t i o n o f S h i p p i n g (1963), pp. 308-309, he s t a t e s t h a t " the m a t t e r of manning i s , under t h e Canada S h i p p i n g A c t , a m a t t e r f o r t h e owners and m a s t e r s . . . . I t i s not a m a t t e r f o r c o l l e c t i v e b a r  g a i n i n g . " There a r e many c o n f l i c t i n g v i e w p o i n t s e v i d e n t b e t  ween t h e Department o f T r a n s p o r t , t h e Steamship I n s p e c t  i o n B r a n c h and t h e Canada S h i p p i n g A c t . I t i s o b v i o u s from t h e r e p e a t e d comments from t h e Department o f T r a n s  p o r t t h a t t h e y do n o t i n t e n d t o d i r e c t manpower by r e g u l  a t i o n ; t h e Report s u g g e s t s , " t h e y keep on i n s i s t i n g t h a t t h i s i s a m a t t e r f o r ' l a b o u r r e l a t i o n s ' presumably between the owners, t h e m a s t e r s and t h e unions....These c o n f l i c t i n g - 248 - p o i n t s of view must be r e c o n c i l e d by t h e Department of T r a n s p o r t . " The Report c o n c l u d e s t h a t , because t h e Department of T r a n s p o r t has g i v e n n o t i c e o f i t s i n t e n t t h a t t h e y n o t become a p a r t y t o l a b o u r r e l a t i o n s , a number of t h i n g s must f o l l o w : 1. That t h e s u f f i c i e n t and e f f i c i e n t p o r t i o n of S e c t i o n 392(d) of t h e Canada S h i p p i n g A c t be e l i m i n a t e d . 2. That S e c t i o n 40? become t h e o v e r r i d i n g a u t h o r i t y f o r manning o t h e r t h a n m a s t e r s , mates and e n g i n  e e r s , i . e . t h e f i n e s f o r m a s t e r s and owners a r e f o r i n s u f f i c i e n t manning o f seamen, deckhands, e t c . 3. That t h e c o m b i n a t i o n of t h e above two S e c t i o n s , 392(d) and 407, would be such t h a t t h e owner and ma s t e r o n l y be r e s p o n s i b l e f o r t h e crew o v e r and above m a s t e r s , mates and e n g i n e e r s , i . e . i t i s not t h e G u i l d , n o r e n g i n e e r s , n o r n o n - l i c e n s e d u n i o n s ' p l a c e t o d e c i d e . 4. That s t e a m s h i p i n s p e c t o r s would be r e s p o n s i b l e f o r e n s u r i n g t h a t l i f e - s a v i n g equipment and a c c  ommodation be p r o v i d e d i n ac c o r d a n c e w i t h t h e Canada S h i p p i n g A c t f o r crew as d e c i d e d by t h e a f o r e m e n t i o n e d p a r t i e s . Most p a r t i e s , i n c l u d i n g t h e B r i t i s h Columbia Tow- boat Owners' A s s o c i a t i o n , u n i o n s and t h e Steamship I n s p e c  t i o n B ranch have r e q u e s t e d t h a t a l l commercial t u g b o a t s be under Steamship I n s p e c t i o n Branch i n s p e c t i o n . C u r r  e n t l y , v e s s e l s under f i f t e e n g r o s s t o n s a r e not i n s p e c t e d . The M i n i s t e r of T r a n s p o r t has been d e b a t i n g r e d u c i n g t h e l i m i t t o n i n e t o n s s i n c e 19^3. However, such a r e d u c t i o n would s t i l l n ot a f f e c t a p p r o x i m a t e l y t h i r t y p e r cen t of the t o t a l a s s o c i a t i o n v e s s e l s and l i k e l y as many non-- 249 ~ a s s o c i a t i o n v e s s e l s . Because t h e Research Sub-Committee b e l i e v e d a s u c c e s s f u l manning program f o r B r i t i s h Columbia i s depend ent on s i m i l a r r u l e s f o r a s s o c i a t i o n and n o n - a s s o c i a t i o n v e s s e l s , t h e R e p o r t recommended t h a t : 1. R u l e s be made t o c o v e r a l l v e s s e l s , a s s o c i a t i o n and n o n - a s s o c i a t i o n . 2. A l l t u g b o a t s i n B r i t i s h C o l u m b i a be r e q u i r e d t o come under Steamship I n s p e c t i o n Branch a u t h o r i t y and be i n s p e c t e d . The R esearch Sub-Committee a l s o recommended t h a t a l l v e s s  e l s engaged i n t h e towboat i n d u s t r y not p r e s e n t l y s u b j e c t t o s t e a m s h i p i n s p e c t i o n s h o u l d be i n s p e c t e d i n t h e f o l l  owing a r e a s : (1) a p p r o v a l of b u i l d i n g p l a n s ; (2) i n s p e c t i o n upon c o m p l e t i o n ; (3) a p p r o v a l of m o d i f i c a t i o n ; (4) a p p r o v a l of l i f e - s a v i n g equipment; and ( 5 ) f u r t h e r i n s p e c t i o n as y e t t o be r e s o l v e d . The owners have s t a t e d t h a t t h e y f e e l t h e y have f u l l and e x c l u s i v e r i g h t s i n t h e c o n s t r u c t i o n and e q u i p  p i n g o f t u g b o a t s s u b j e c t o n l y t o t h e s u p e r v i s i o n o f t h e Steamship I n s p e c t i o n B r a n c h . They a c c e p t e d t h e recommen d a t i o n s r e g a r d i n g i n s p e c t i o n o f a l l commercial v e s s e l s w i t h t h e p r o v i s i o n t h a t i t be c a r r i e d out under a p r a c t i c a l s e t o f new r e g u l a t i o n s , as e x i s t i n g r e g u l a t i o n s would be i m p o s s i b l e t o a p p l y t o v e s s e l s not c u r r e n t l y s u b j e c t t o i n s p e c t i o n . A l s o t h e y f e l t t h a t i t would be v i t a l f o r t h e Department o f T r a n s p o r t t o e s t a b l i s h a system of e n f o r c e -- 250 - ment and p o l i c i n g t o e f f e c t such a r e g u l a t i o n . I n con c l u s i o n , t h e y s u g g e s t e d t h a t due t o unknown f a c t o r s i n i n s p e c t i o n and enforcement, i t might prove a d v i s a b l e t o use t h e f a c i l i t i e s o f t h e recommended Manning Board ( r e  l a t e d l a t e r i n t h i s r e p o r t ) t o c l a r i f y t h e s e i s s u e s . V. RECOMMENDED APPROACH TO MANPOWER ADJUSTMENT De t e r m i n a n t s of Manning S c a l e s R e s e a r c h Recommendations D e t e r m i n i n g t h e crew s i z e f o r v a r i o u s c a t e g o r i e s o r c l a s s i f i c a t i o n s of v e s s e l s became one of t h e most c o n t e n t i o u s i s s u e s of t h e Research Sub-Committee s t u d y . A g r e a t d e a l of t i m e was spen t r e a c h i n g agreement, where p o s s i b l e , on what s h o u l d d e t e r m i n e crew s i z e . T h i s a s p e c t of p r e s e n t manning r e q u i r e m e n t s was a h u r d l e t h a t had t o be c r o s s e d b e f o r e any f o r w a r d m o t i o n on t h e o t h e r recomm e n d a t i o n s c o u l d be a c h i e v e d . The R e s e a r c h Sub-Committee d i v i d e d t h e manning s c a l e d e t e r m i n a n t s i n t o c l a s s i f i c a t i o n s o f one t o t w e l v e - man v e s s e l s and a t t e m p t e d t o e s t a b l i s h c r i t e r i a f o r d e t e r  m i n i n g what c o n s t i t u t e d a " s u f f i c i e n t and e f f i c i e n t " crew under p a r t i c u l a r o p e r a t i n g c o n d i t i o n s . R e s e a r c h d a t a was c o l l e c t e d t h r o u g h t e l e p h o n e c o n v e r s a t i o n s , m a i l , i n t e r  v i ews and e x i s t i n g d a t a , on as many f a c t o r s as p o s s i b l e , t o h e l p i n e s t a b l i s h i n g c r i t e r i a f o r manning r e q u i r e m e n t s . - 251 - A s a b a s i s t h e R e s e a r c h S u b - C o m m i t t e e u s e d c r i t e r i a a s s u b m i t t e d b y t h e p r e v i o u s J o i n t C o m m i t t e e i n 1 9 6 2 a s f o l l o w s : 1 . N a t u r e o f O p e r a t i o n ( a ) A r e a i n w h i c h v e s s e l o p e r a t e s ( b ) S i z e a n d w e i g h t o f g e a r ( c ) D i s t a n c e o f a v e r a g e t r i p ( d ) C o n t i n u i t y o f o p e r a t i o n ( 1 ) F r e q u e n c y o f l a n d i n g s — d a y l i g h t ; d a r k n e s s ( 2 ) A m o u n t o f s c h e d u l i n g r e q u i r e d (3) L a y o v e r t i m e b e t w e e n j o b s d u e t o n a t u r e o f w o r k (4) L a y o v e r t i m e d u r i n g j o b d u e t o t i d e a n d w e a t h e r ( e ) A m o u n t o f o f f - w a t c h w o r k u n d e r n o r m a l c o n d i t  i o n s ( f ) S i z e a n d t y p e o f t o w — l o g t o w i n g — s k o w t o w i n g — o t h e r ( g ) A m o u n t o f e n g i n e m a i n t e n a n c e r e q u i r e d o n v e s s e l s 2 . V e s s e l C h a r a c t e r i s t i c s ( a ) P h y s i c a l s i z e ( b ) G e n e r a l l a y o u t ( c ) A m o u n t o f a c c o m m o d a t i o n (d) T y p e o f p r o p u l s i o n m a c h i n e r y ( e ) Remote c o n t r o l s — d e c k a n d e n g i n e r o o m ( f ) A u t o m a t i c a l a r m s a n d s a f e t y d e v i c e s ( g ) N a v i g a t i o n a l e q u i p m e n t — r a d a r , d e p t h r e c o r d e r , e t c . 3. S a f e N a v i g a t i o n o f V e s s e l ( a ) W a t c h k e e p i n g r e q u i r e m e n t s ( b ) L o o k o u t r e q u i r e m e n t s T h e R e s e a r c h S u b - C o m m i t t e e a n a l y z e d a l l o f t h e a v a i l a b l e d a t a a n d c o n c l u d e d t h a t t h e a r e a i n w h i c h a v e s s e l o p e r a t e s i s t h e m o s t c r i t i c a l d e t e r m i n a n t t o m a n  n i n g s c a l e s . T h e s e a r e a s w e r e i n i t i a l l y d e s c r i b e d b y t h e f o u r Home T r a d e C e r t i f i c a t e s i s s u e d b y t h e S t e a m s h i p - 252 - I n s p e c t i o n B r a n c h , and were f u r t h e r d i v i d e d by t h e Sub- Committee i n t o t h e f o l l o w i n g seven a r e a s : 1. R i v e r s and h a r b o u r s . 2. J u a n de F u c a , Puget Sound, G e o r g i a S t r a i t s , J ohn s t o n e S t r a i t , Queen C h a r l o t t e Sound. 3. I n s i d e w a t e r s from t h e l o w e r end of Queen Char l o t t e Sound t o Ocean F a l l s , P r i n c e R u p e r t , S t e w a r t . 4. West Coast o f Vancouver I s l a n d , from B a r k l e y Sound, Queen C h a r l o t t e I s l a n d s and Hecate S t r a i t . 5. Columbia R i v e r t o A l a s k a . 6. Home Trade I , where t h e v e s s e l may go anywhere w i t h i n t h e l i m i t s o f a home t r a d e voyage; Home Trade I I , where t h e v e s s e l does n o t go west of Cape Spencer o r s o u t h o f P o r t l a n d . 7. F o r e i g n - g o i n g . Data was a l s o t a b l e d and graphed t o show t h e e s  c a l a t i n g s c a l e of manpower used v e r s u s t h e g r o s s tonnage, v e s s e l l e n g t h , v e s s e l horsepower (bra k e h o r s e p o w e r ) , and ty p e of tow. A l l p a r t i e s were i n f a v o u r of u s i n g t h i s d a t a as a g u i d e l i n e r a t h e r t h a n as d e t e r m i n a n t s o f crew s i z e . The R e s e a r c h Sub-Committee s u g g e s t e d f u r t h e r t h a t "We have found i t o f l i t t l e v a l u e t o d i s t i n g u i s h between t h e t y p e s of l o a d c a r r i e d ( l o g s , b a r g e s , e t c . ) . " However, w i t h r e  ga r d t o l e n g t h and tonnage t h e f o l l o w i n g was proposed: (1) "...we have recommended t h a t a p e n a l t y be made f o r e x c e s s i v e l e n g t h on t h e grounds o f v i s i b i l i t y of workmen on the s t e r n o f a s h i p . We have p r o  posed t h a t i f a s h i p i s more t h a n 150 f e e t , one e x t r a seaman s h o u l d be r e q u i r e d , o v e r and above p r o v i s i o n of two i n -the eight-men v e s s e l . (2) I f t h e v e s s e l i s up t o f i v e hundred t o n s g r o s s - 253 - w e i g h t , no e x t r a seaman i s r e q u i r e d - no e x t r a seaman i s r e q u i r e d o v e r and above t h e p r e s e n t s t a n d a r d i n eight-men crew. Beyond t h i s one more seaman s h o u l d be added." C r i t e r i a such as remote c o n t r o l s , w a t c h k e e p i n g and l o o k o u t r e q u i r e m e n t s were d i s c u s s e d w i t h t h e p a r t i e s and a r e r e l a t e d i n t h e l a t e r s e c t i o n s under manning d e t e r m i n  a n t s f o r s p e c i f i c crew s i z e s (See one t o twelve-men v e s s  e l s i n t h e B i n d i n g D e c i s i o n ) . The R e s e a r c h Sub-Committee s u g g e s t e d t h a t i t e n v i s  aged a r e a s of o p e r a t i o n moving from A r e a 1 t o A r e a 7, w i t h d i f f e r e n c e s depending on o t h e r c r i t e r i a such as s i z e , horsepower, tonnage, e t c , a c c o u n t i n g f o r v e s s e l s b e i n g a l l o c a t e d t o a c e r t a i n a r e a . M a j o r A r e a s of C o n t e n t i o n The J o i n t d i s c u s s i o n s w h i c h f o l l o w e d t h e r e s e a r c h recommendations soon d e v e l o p e d i n t o a p a t t e r n of n e g o t i a  t i o n and bargaining,. The o p i n i o n s o f t h e owners and t h e u n i o n s s t i l l d i f f e r e d s i g n i f i c a n t l y on how manning c r i t  e r i a s h o u l d be d e v e l o p e d . I n e s s e n c e , t h e i r two con f l i c t i n g v i e w p o i n t s were c e n t e r e d around t h e f o l l o w i n g o p p o s i n g p h i l o s o p h i e s : t h e u n i o n s contended t h a t f o r r easons of s a f e t y two men a r e r e q u i r e d a t a l l t i m e s f o r w a t c h k e e p i n g d u t i e s on deck w i t h no c o m b i n i n g o f occup a t i o n s ; t h e owners contended t h a t t h e number of crew on any v e s s e l i s o n l y s a f e , s u f f i c i e n t and e f f i c i e n t w i t h - 254 - complete teamwork and a c e r t a i n c o - o r d i n a t e d o v e r l a p p i n g of d u t i e s . The R e s e a r c h Report recommendations d e a l t w i t h each crew s i z e from one t o twelve-men v e s s e l s . The j o i n t d i s c u s s i o n s w h i c h f o l l o w e d t h o r o u g h l y debated t h e r e l a t  i v e m e r i t s of recommendations i n each of t h e t w e l v e c l a s s  i f i c a t i o n s . R a t h e r t h a n go i n t o d e t a i l on each o f t h e s e crew s i z e recommendations i n t h i s s e c t i o n o n l y t h e main a r g u m e n t a t i v e p r i n c i p l e s t h a t d e v e l o p e d w i l l be r e l a t e d h e r e . (Manning s c a l e recommendations can be r e v i e w e d by r e f e r r i n g t o a l a t e r s e c t i o n e n t i t l e d B i n d i n g D e c i s i o n s ) . The u n d e r s t a n d i n g g a i n e d from t h e f o l l o w i n g s u b m i s s i o n s w i l l p r o v i d e t h e background f o r an i n s i g h t i n t o t h e B i n d  i n g D e c i s i o n s u l t i m a t e l y handed down by t h e R e s e a r c h C h a i r m a n - D i r e c t o r . U n i o n s ' S u b m i s s i o n The marine u n i o n s j o i n e d i n a f i n a l s u b m i s s i o n t o the R e s e a r c h C h a i r m a n - D i r e c t o r t o s t a t e t h e i r p o s i t i o n a f t e r a n impasse had been r e a c h e d i n debate on t h e Re s e a r c h R e p o r t recommendations on crew s i z e c l a s s i f i c a t i o n s . They contended t h a t : "...any v e s s e l r u n n i n g , o r i n t e n d e d t o r u n , on a c o n t i n u o u s 24 hour b a s i s , r e q u i r e s a crew o f 7 men, c o n s i s t i n g of a M a s t e r , Mate, C h i e f E n g i n  e e r , 2nd E n g i n e e r , 2 Seamen and a Cook t o p r o  v i d e f o r adequate watches on deck and i n t h e Engine Room. - 255 - S t a r t i n g from t h i s b a s i s , t h e c r i t e r i a mentioned i n t h e Report can t h e n be a p p l i e d a d j u s t i n g t h e crew upward o r downward as t h e case may be. T h i s c r i t e r i a t h e n b e i n g t h e a r e a of o p e r a t i o n , t y p e of work, p h y s i c a l l a y o u t and equipment, d u r a t i o n of t h e voyage, accommodation, e t c . " Concern f o r s a f e t y had been one o f t h e prime f o c a l p o i n t s f o r t h e u n i o n s . T h i s c o n c e r n f o r s a f e t y was f o s t  e r e d i n S e c t i o n 40? o f t h e Canada S h i p p i n g A c t w h e r e i n t h e m a s t e r i s c i t e d as b e i n g l i a b l e , a l o n g w i t h t h e owner, f o r an i n f r a c t i o n of t h e minimum manning r e q u i r e m e n t s . T h i s coneern has r e s u l t e d I n t h e development of one o f t h e most d i s p u t a t i o u s p r i n c i p l e s u sed by t h e u n i o n s a s a b a s i s f o r t h e d e t e r m i n a t i o n o f minimum crew r e q u i r e m e n t s . I n a l a t e r s e c t i o n o f t h i s r e p o r t e n t i t l e d A c c i d  e n t s and S a f e t y m e n t i o n i s made of a u n i o n s u b m i s s i o n i n w h i c h t h e y r e f e r t o a number o f c o u r t cases t o show p r e  cedent f o r demanding even t h r e e men on deck f o r t h e s o l e r e s p o n s i b i l i t y o f s a f e n a v i g a t i o n . T h e i r i n i t i a l p o s i  t i o n , as s t a t e d i n t h e R e s e a r c h R e p o r t , was t h a t t h e r e s h o u l d be two men p h y s i c a l l y on d u t y a t a l l t i m e s when the s h i p i s underway. The s u b m i s s i o n s t a t e s t h a t : "We have n e v e r p r e v i o u s l y r e q u e s t e d t h a t number of men on deck a t any t i m e but i f Management keeps on i n s i s t i n g t h e E n g i n e e r and/or Cook t o be p a r t - t i m e seaman, o r v i c e v e r s a , t h e n we have no c h o i c e but t o l o o k on t h e s e men as t h e t h i r d man r e q u i r e d by t h e C o u r t s and an incompetent one a t t h a t , " I n a l a t e r s u b m i s s i o n , however, t h e u n i o n s a l t e r e d t h e i r p o s i t i o n somewhat t o " i n s i s t t h a t no v e s s e l s h o u l d be a l l o w e d t o o p e r a t e w i t h o u t two men p h y s i c a l l y on d u t y on - 256 - immediate c a l l t o t h e wheelhouse...." And, i n t h e i r f i n a l s u b m i s s i o n f o r b i n d i n g d e c i s i o n , t h e y a l t e r e d t h e i r p o s i t i o n f u r t h e r and s u b m i t t e d t h a t "Two men must be a v a i l  a b l e , w i t h no o t h e r d u t y i n t e r f e r i n g w i t h t h i s a v a i l a b i l  i t y , f o r w a t c h k e e p i n g d u t i e s on deck." There i s c o n s i d e r a b l e d i f f e r e n c e i n t h e s e s t a t e  ments. I t i s w i t h t h e l a t t e r c o n n o t a t i o n t h a t t h e owners have v o i c e d complete d i s a p p r o v a l . A second f o c a l p o i n t of c o n c e r n by t h e u n i o n s was t h e a f o r e m e n t i o n e d c o m b i n a t i o n o f e n g i n e e r s , cooks and seamen i n t o p a r t - t i m e j o i n t o c c u p a t i o n s . C o i n c i d e n t w i t h t h i s c o n c e r n was a d i s a p p r o v a l of any f u r t h e r r e d u c t i o n o r e l i m i n a t i o n of e n g i n e e r s on many v e s s e l s . They a l s o f e l t t h a t t h e p r a c t i c e of c o m b i n i n g t h e d u t i e s o f t h e cook s h o u l d c e a s e . There i s a s u b t l e s i m i l a r i t y a p p a r e n t i n a l l o f t h e s e arguments; t h a t i s , r e d u c t i o n i n crew s i z e . The e n g i n e e r ' s u n i o n has been v e r y c r i t i c a l of t h e i d e a t h a t t e c h n o l o g i c a l change has reduced t h e need f o r f u l l - t i m e e n g i n e e r s on some v e s s e l s . They have s u g g e s t e d t h a t wheelhouse c o n t r o l i s not s u f f i c i e n t r e a s o n f o r r e  moval of an e n g i n e e r n o r i s t h e r e j u s t i f i c a t i o n f o r remov i n g men from t h e engine room because of new t y p e s of mach i n e r y and equipment. The u n i o n i s a l s o i n disagreement w i t h t h e c o n c e p t s o f f l y i n g i n r e p a i r crews and p a r t s , d o i n g r e p a i r s a t s a f e anchorage and/or w h i l e s a f e l y t i e d up a t p o r t . They have s u g g e s t e d t h a t t h e i m p l i c a t i o n - 257 - t h a t an e n g i n e e r can p i c k and choose when he w i l l work on t h e e n g i n e s i s f a r from t r u e . Most engine breakdowns o c c u r a t t h e most awkward t i m e s . T h e r e f o r e , t h e u n i o n ' s p o s i t i o n i s t h a t f u l l - t i m e e n g i n e e r s be r e q u i r e d on any v e s s e l n o t i n s h i f t o p e r a t i o n , and t h a t on l a r g e r v e s s e l s more t h a n two e n g i n e e r s a r e r e q u i r e d i f the l a y o u t of t h e e n g i n e room and i t s a u x i l i a r y equipment demands i t . I n h e r e n t i n t h e above r e a s o n i n g was t h e b e l i e f t h a t e n g i n e e r s cannot p e r f o r m t h e i r prime d u t i e s — t o o p e r a t e and m a i n t a i n t h e engine room equipment and t o m a i n t a i n o t h e r m e c h a n i c a l e q u i p m e n t — i f t h e y a r e r e q u e s t e d t o p e r  form o t h e r I n t e r f e r i n g t a s k s . The u n i o n s f e l t , t h e r e f o r e , t h a t t h e p o s i t i o n o f an e n g i n e e r - c o o k reduces t h e s t a t u s of t h e e n g i n e e r , s u b j e c t s him t o p o s s i b l e d i s m i s s a l f o r i n a b i l i t y t o cook, and does not p e r m i t him enough t i m e t o s a t i s f a c t o r i l y p e r f o r m h i s p r i m a r y d u t i e s . I n a d d i t i o n , t h e y f e l t t h a t any c o m b i n a t i o n of d u t i e s w i t h t h e cook would n o t ensure d e c e n t , w e l l - p r e p a r e d meals cooked by t r a i n e d p e r s o n n e l . S i m i l a r arguments were v o i c e d I n c o n n e c t i o n w i t h t h e combined cook-deckhand r o l e . I n one s u b m i s s i o n t h e u n i o n s s t a t e d t h a t : " . . . t h e i n t r o d u c t i o n o f a cook-deckhand has l e s s e n e d t h e e f f i c i e n c y and s a f e t y o f t h e nav i g a t i o n o f t h e v e s s e l and has reduced t h e q u a l i t y o f t h e meals s e r v e d t o a p o i n t where we a r e concerned f o r t h e h e a l t h of o u r members w o r k i n g under t h e s e c o n d i t i o n s . " - 258 - The u n i o n s ' c o n c e r n i n t h i s a r e a o f combined d u t i e s was c e n t e r e d a r o u n d t h e i r b e l i e f t h a t i n d u s t r y c o n d i t i o n s were d e t e r i o r a t i n g . They s u g g e s t e d t h a t t h e terms of r e f  e rence o f t h e r e s e a r c h p r o g r a m — t h a t o f sound i n d u s t r i a l and human r e l a t i o n s — h a v e been v i o l a t e d by t h e i n t r o  d u c t i o n o f combined-duty j o b s i n t o a r e a s t h a t were n o t p r e v i o u s l y t h e c a s e . The r e m a i n i n g a r e a s of c o n c e r n were, f o r t h e most p a r t , o f a minor n a t u r e . The u n i o n s summed up t h e i r p o s i t i o n i n t h e i r f i n a l s u b m i s s i o n : "We f e e l t h a t t h e R e p o r t , as s u b m i t t e d , has o n l y s t a n d a r d i z e d t h e I n d u s t r y on t o d a y ' s l e v e l o f c o n d i t i o n s r a t h e r t h a n p l a c i n g t h e I n d u s t r y i n a p o s i t i o n t o o p e r a t e w i t h a r e a s o n a b l e degree o f s a f e t y and sound i n d u s t r i a l and human r e l a t i o n s . " Owners' S u b m i s s i o n Whereas t h e u n i o n s had become en g r o s s e d i n manning s e a l e s a t t h e f i v e , s i x and. seven-men v e s s e l l e v e l s , t h e owners were much more concerned o v e r t h e R e s e a r c h R e p o r t recommendations a t t h e t h r e e and four-men v e s s e l l e v e l s . I n t h e i r f i n a l s u b m i s s i o n f o r b i n d i n g d e c i s i o n - m a k i n g , t h e owners a g r e e d t o t h e R e s e a r c h R e p o r t recommendations b e i n g " a p p l i c a b l e as p r i n c i p l e s r a t h e r t h a n e x a c t r u l e s . . . and a l l o w i n g f o r Manning Board e x c e p t i o n s " , e x c e p t f o r t h e recommendations on t h r e e and four-men v e s s e l s . The own e r s s u g g e s t e d t h a t t h e y d i s a g r e e d and s t r o n g l y recommen ded r e v i s i o n of t h e s e c t i o n c a l l i n g f o r e l i m i n a t i o n o f - 259 - t h e s e c l a s s e s o f v e s s e l . The owners contended t h a t f l e x i b i l i t y must be m a i n t a i n e d , v i z . "two men on a 12 hour s h i f t b a s i s , t h r e e men on an 18 hour b a s i s and f o u r men on a 24 hour b a s i s ...." I n a c c o r d a n c e w i t h t h i s f l e x i b i l i t y , t h e y sugg e s t e d t h a t o n l y t h r o u g h complete teamwork and a c e r t a i n c o - o r d i n a t e d o v e r l a p p i n g o f d u t i e s c o u l d a crew be deemed s a f e , s u f f i c i e n t and e f f i c i e n t . The owners f u r t h e r contended t h a t t h e n a t u r e of t h e o p e r a t i o n and t h e p h y s i c a l l a y o u t o f a v e s s e l may a l l o w f o r some form of d u a l d u t i e s . F o r example, t h e y r e f e r r e d t o t h e use of a cook-deckhand and a l s o t o t h e need f o r e n g i n e e r s t o p e r f o r m d u t i e s o t h e r t h a n normal engine maintenance. The i s s u e appeared t o be whether an i n d i v i d u a l ' s Job on a t u g b o a t can be d e f i n e d i n terms of a t a s k o r t a s k s . Teamwork and o v e r l a p p i n g of d u t i e s i s r e q u i r e d where t h e t o t a l o p e r a t i o n of a v e s s e l i s i n t h e hands of two men, i . e . t o w i n g , w a t c h i n g e n g i n e s , s t e e r i n g and p r o t e c t i o n o f l i f e and l i m b . However, i t i s e x p e c t e d t h a t s p e c i a l i z a t i o n w i l l become more pronounced as t h e s i z e and c a p a c i t y of t u g s i s i n c r e a s e d . The m a jor emphasis of t h e i s s u e o f combined d u t i e s was w i t h t h e e n g i n e e r , cook and deckhand as i n d i c a t e d p r e v i o u s l y . I n d i r e c t r e b u t t a l t o t h e u n i o n s ' r e p r e s  e n t a t i o n , t h e owners c l a i m e d t h a t t h e new d i e s e l e n gines do not r e q u i r e t h e same a t t e n t i o n f o r o p e r a t i o n and - 2 6 0 - maintenance. They f u r t h e r p o i n t e d t o t h e n e g o t i a t e d con t r a c t w h i c h p r o v i d e s f o r a c e r t a i n o v e r l a p p i n g o f an e n g i n e e r ' s d u t i e s . W i t h r e g a r d t o t h e cook-deckhand c l a s s i f i c a t i o n , s u r v e y s have shown t h a t owners have a p a s t h i s t o r y o f u s i n g such c o m b i n a t i o n s on t h r e e t o s i x - men v e s s e l s . The p r i n c i p l e of two men on watch a t a l l t i m e s and t h e f u r t h e r demand f o r s e p a r a t i o n o f d u t i e s , as e n v i s a g e d by t h e u n i o n s , would c o m p l e t e l y remove t h e f l e x i b i l i t y t h e owners r e q u i r e . I n a s u b m i s s i o n f o r q u a l i f i c a t i o n o f t h e R e s e a r c h R e p o r t recommendations, t h e owners s u g g e s t e d t h a t : " I f t h e two men on watch p r i n c i p l e i s a c c e p t e d w i t h o u t q u a l i f i c a t i o n , i t means t h a t a u t o m a t i  c a l l y , o u t s i d e of r i v e r s and h a r b o u r s and s h i f t v e s s e l s , t h e r e s h a l l be no towboat o p e r a t i n g on th e c o a s t f o r any d u t y w h a t s o e v e r , w h i c h w i l l c a r r y l e s s t h a n f i v e men.,,. The t o w i n g i n d u s t r y has o p e r a t e d f o r a c o n s i d e r  a b l e number of y e a r s w i t h o u t f i n d i n g i t n e c e s s a r y t o adopt such a concept i n a l l c l a s s e s o f v e s s e l s and a l l t y p e s o f o p e r a t i o n s . W h i l e t h e r e a r e s p e c i f i c a r e a s under w h i c h t h i s concept I s w a r r  a n t e d ( i . e . ) f a s t moving t u g s and l a r g e b a r g e s , th e s m a l l e r slow moving t u g has o p e r a t e d s a f e l y and e f f i c i e n t l y because complete teamwork and c o o r d i n a t e d o v e r l a p p i n g o f d u t i e s does e x i s t w h i c h a l l o w s two men t o be a v a i l a b l e f o r watch- k e e p i n g d u t i e s a t a l l t i m e s . ....We see no r e a s o n f o r d i s r u p t i o n o f such l o n g  s t a n d i n g p r a c t i c e s . " The u n d e r l y i n g c o n c e r n of t h e owners i n t h e above statement d e r i v e s from what t h e owners i n t e r p r e t a s t h e I n t e n t t o e v e n t u a l l y e l i m i n a t e t h e t h r e e and four-men v e s s e l s . The owners i n d i c a t e d t h a t t o d a y , more t h a n e v e r - 261 - b e f o r e , t h e s e v e s s e l s f u l f i l l a v e r y n e c e s s a r y and v i t a l need i n t h e t o w i n g I n d u s t r y i n B r i t i s h C o lumbia. Economi c a l l y , t h e y p o i n t e d out t h a t t h e d e t e r m i n a n t o f p r i c e s l i e s I n a c h i e v i n g t h e maximum horsepower-per-crewman. I n c o n c l u s i o n , t h e y s u g g e s t e d t h a t i f t h e p r i v i l e g e o f o p e r  a t i n g t h e s m a l l e c o n o m i c a l v e s s e l i s removed a l a r g e p o r  t i o n of t h e i n d u s t r y w i l l pass t o p r i v a t e hands o r t o t h e c o n t r o l o f major customers n o t engaged p r i m a r i l y i n t h e towboat i n d u s t r y . P r o v i s i o n was made i n t h e framework o f t h e Memor andum o f U n d e r s t a n d i n g f o r d i s a g r e e m e n t s t h a t remained i n s u r m o u n t a b l e . The b i n d i n g d e c i s i o n - m a k i n g c l a u s e a n t i  c i p a t e d p o s s i b l e impasses and, a l t h o u g h t h e J o i n t Con s u l t a t i v e Committee endeavoured t o r e a c h as much a g r e e  ment as p o s s i b l e , t h e u n i o n s and owners demanded t h a t m a c h i n e r y be a v a i l a b l e t o b i n d t h e p a r t i e s t o t h e d e c i  s i o n s of t h e R e s e a r c h C h a i r m a n - D i r e c t o r u n t i l A p r i l 1, 1968 o r as o t h e r w i s e a g r e e d . From J a n u a r y t o May, 1966 t h e owners and u n i o n s were engaged i n r e v i e w i n g t h e s t u d y and p r e p a r i n g r e v i s  i o n s where a p p r o v a l was g r a n t e d . P r o p o s a l s were t h e n s u b m i t t e d by t h e f o u r u n i o n s and t h e owners on t h e mod i f i e d recommendation, g i v i n g t h e f i n a l arguments where disagr e e m e n t o c c u r r e d . Dr. E.D. MacPhee was t h e n r e q u e s t e d , B i n d i n g D e c i s i o n s - 262 - a f t e r h e a r i n g f u l l argument from b o t h p a r t i e s , t o I n s t i t  u t e a b i n d i n g p r o c e d u r e as p r o v i d e d f o r i n t h e Memorandum of U n d e r s t a n d i n g . The b i n d i n g p r o c e d u r e d e a l t w i t h a l l t h e c o n t e n t i o u s i s s u e s and i n d i c a t e d t h e f i n a l recommen d a t i o n s o f t h e Res e a r c h C h a i r m a n - D i r e c t o r on t h e d e t e r  m i n a n t s o f crew s i z e . The B i n d i n g D e c i s i o n , as i t p e r  t a i n s t o one t o twelve-men v e s s e l s , f o l l o w s v e r b a t i m . One-Man V e s s e l s 1. T h i s v e s s e l i s a s h i f t v e s s e l w i t h t h e crew l i v i n g a t home. I t o p e r a t e s i n C l a s s I of our s c h e d u l e . 2 . That one-man b o a t s w i l l be employed i n booming o p e r a t i o n s . Sueh v e s s e l s may move from one booming ground t o a n o t h e r p r o v i d i n g t h a t w h i l e w o r k i n g w i t h l o g s , some o t h e r p e r s o n n e l have c l o s e p r o x i m i t y and easy a c c e s s t o the a r e a o f t h e one-man b o a t . 3. That o p e r a t i o n s o f one-man boats w i l l work a n o r  mal e i g h t - h o u r day i n any t w e l v e - h o u r p e r i o d and o v e r  t i m e s h a l l n o t exceed f o u r hours o v e r and above t h e same t w e l v e - h o u r p e r i o d . 4. That one-man b o a t s must not be engaged I n t o w i n g . Two-Men V e s s e l s 1. These v e s s e l s a r e s h i f t v e s s e l s w i t h t h e crew l i v i n g a t home. These v e s s e l s o p e r a t e i n C l a s s I of our Sc h e d u l e of A r e a of O p e r a t i o n s . 2 , The a r e a of o p e r a t i o n s i s : " t h e r i v e r s and h a r b o u r s of t h e c o a s t l i n e of B r i t i s h C o l umbia". The p r e c i s e - 263 - d e f i n i t i o n of " r i v e r s and h a r b o u r s " s h o u l d be d e f i n e d by t h e J o i n t C o n s u l t a t i v e Committee i n c o n s u l t a t i o n w i t h t h o s e who have e x p e r t knowledge i n t h e s e a r e a s . 3. One crew o f two men i s not a l l o w e d t o o p e r a t e more th a n t w e l v e hours i n a t w e n t y - f o u r hour p e r i o d . I f t h e crews a r e members of a u n i o n , t h e y w i l l a r r a n g e w i t h t h e i r management and t h e u n i o n s t h e hours of work. I f crews a r e n o t members of t h e u n i o n s , t h e y w i l l be e x p e c t e d t o work a t no more t h a n t w e l v e hours p e r day. 4. Crew members d e s i g n a t e d as " e n g i n e e r s " , "cooks", o r "cook-deckhands" a r e not t o be i n c l u d e d i n t h e e s t a b  l i s h m e n t o f two-men v e s s e l s . 5. S p e c i f i c a l l y t h e two-men crew i f p r o c e e d i n g t o o r from Howe Sound, t h e G u l f I s l a n d s , and G e o r g i a S t r a i t s may o p e r a t e i f t h e e l a p s e d t i m e o f t h e voyage i s not t o exceed t w e l v e h o u r s . I f t h e e l a p s e d t i m e i s more th a n t w e l v e h o u r s , a t h i r d man i s o b l i g a t o r y f o r t h e d u r a t i o n of t h i s voyage. Three and Four-Men V e s s e l s 1. A minimum o f two men s h a l l p h y s i c a l l y be on d u t y a t a l l t i m e s when the v e s s e l i s underway. 2. The a r e a of o p e r a t i o n i s from a l i n e j o i n i n g Cape F l a t t e r y t o N i t i n a t Lake and bounding t h e w a t e r s o f t h e l o w e r S t r a i t s of J u a n de F u c a , Puget Sound, G u l f I s l a n d s , G e o r g i a S t r a i t s , J o h n s t o n e S t r a i t t o t h e s o u t h e r n l i m i t s of Queen C h a r l o t t e Sound d e f i n e d as a l i m i t between Hardy - 264 - Bay and A l l i s o n Harbour. 3 . Howe Sound i s a segment of t h i s a r e a , but i t w i l l be r e g a r d e d as a three-men a r e a f o r e x i t t o t h e P r a s e r R i v e r and Vancouver Harbour. 4. Some v e s s e l s g o i n g i n t o t h e a r e a : (a) c l a i m t h a t t h e y can do so w i t h i n t h e l i m i t s of p h y s i c a l l y r e q u i r i n g two men t o be on d u t y a t a l l t i m e s . (b) Some w i l l add a n o t h e r crew member. (c) Some w i l l work on a 12-hour-a-day v e s s e l . (d) Some w i l l work o v e r t i m e f o r a few days but a r e n o t t o work o v e r t i m e f o r 18 h o u r s . The s t a n d a r d r u l e of t w e l v e hours a day w i t h i n t w e n t y - f o u r hours w i l l a p p l y . 5. Four-men b o a t s may c a r r y l o g s and o i l . 6. A l l such v e s s e l s s h a l l have wheelhouse c o n t r o l on t h e main deck. 7. No cook s h a l l be p r o v i d e d as a s p e c i a l i s t . 8. Each Boat t h a t c a r r i e s f o u r men s h o u l d c a r r y a c e r t i f i c a t e d e n g i n e e r where r e q u i r e d by r e g u l a t i o n , o r a man r e s p o n s i b l e f o r t h e engines where r e g u l a t i o n does not r e q u i r e a c e r t i f i c a t e d e n g i n e e r . T h i s p e r s o n may be p a r t l y o r f u l l y employed as an e n g i n e e r . F o u r and Five-Men V e s s e l s 1. The a r e a of o p e r a t i o n s s h o u l d be t h e I n s i d e P a s s  age c a l l i n g on Ocean F a l l s , P r i n c e Rupert and S t e w a r t and - 2 6 5 - p o i n t s i n t e r m e d i a t e i n t h i s a r e a . I t does n o t i n c l u d e t h e West C o a s t of Vancouver I s l a n d , Queen C h a r l o t t e I s l a n d s , and Hecate S t r a i t , 2 , The v e s s e l s t o be i n c l u d e d i n t h i s s e c t i o n w i l l be a l l b a r g e s moving t h r o u g h t h e S t r a i t s of J u a n de F u c a , G e o r g i a S t r a i t s , J o h n s t o n e S t r a i t , Queen C h a r l o t t e S t r a i t s , and a l l l o g s , b a r g e s , scows, equipment and o i l t h r o u g h t h e I n s i d e P a s s a g e , 3» Two men must be a v a i l a b l e f o r each deck s h i f t , 4. Each boat t h a t c a r r i e s f o u r o r f i v e men s h o u l d c a r r y a c e r t i f i c a t e d e n g i n e e r where r e q u i r e d by r e g u l a t  i o n , o r a man r e s p o n s i b l e f o r t h e e ngines when r e g u l a t i o n does not r e q u i r e a c e r t i f i c a t e d e n g i n e e r . T h i s p e r s o n may be p a r t l y o r f u l l y employed as an e n g i n e e r . I f one i s t o w i n g t h r o u g h t h e I n s i d e Passage a c e r t i f i e d e n g i n e e r , p a r t t i m e , i s n e eded 0 5 . A cook i s needed f o r p a r t o f h i s t i m e ; p a r t of h i s t i m e he c o u l d be on w a t c h k e e p i n g d u t i e s . Six-Men and Seven-Men V e s s e l s l o The a r e a i s d e f i n e d as b e i n g between t h e Columbia R i v e r , West Coast of Vancouver I s l a n d , Queen C h a r l o t t e I s l a n d s , and A l a s k a . 2 . When a v e s s e l i s engaged, p r o c e e d i n g under l i c e n s e H.T. I I o r H.T. I l l : (a) p r o v i d e d i t i s p r o p e r l y equipped w i t h w h e e l - house c o n t r o l , i n c l u d i n g v a r i o u s a l a r m s and - 266 - a l l s a f e t y measures when a c o n t i n u o u s watch i s not k e p t on t h e engine room, t h e s t a f f o f the crew s h a l l be s i x . (b) P r o v i d e d i t i s not equipped w i t h wheelhouse c o n t r o l , a second e n g i n e e r w i l l be p r o v i d e d c a r r y i n g t h e crew t o seven. (c) The m i n i m a l c e r t i f i c a t e of t h e C h i e f E n g i n e e r w i l l be c o v e r e d i n h i s l i c e n s e . V e s s e l s below 10 n o m i n a l horsepower may be exempt from t h i s c l a u s e of t h e A c t p r o v i d e d t h a t "any p e r s o n k e e p i n g watch and i n charge o f t h e m a c h i n e r y of a steamship w h i l s t underway s h a l l be deemed t o be a c t i n g as an e n g i n e e r " . F o r n o m i n a l horsepower of 10 t o 25, t h e m i n i m a l r a t e s h a l l be t h i r d c l a s s and f o r 25 t o 90 a Second C l a s s E n g i n e e r . I t i s u r g e d t h a t owners w i l l en courage t h e growth o f E n g i n e e r t r a i n i n g . (d) E n g i n e e r s w i l l n o t be r e q u i r e d t o s t a n d deck watches. 3 . A cook s h o u l d be e s t a b l i s h e d i n a l l v e s s e l s and has no d u t y o t h e r t h a n i n t h e g a l l e y . Eight-Men V e s s e l s 1. The a r e a o f o p e r a t i o n s , f o r t h e s e eight-men v e s s e l s , i s from A l a s k a t o P o r t l a n d , Oregon. I f t h e v e s s e l i s l i c e n s e d as H.T. I i t may go t o Canada, U n i t e d S t a t e s o f A m e r i c a o t h e r t h a n H a w a i i , S t . P i e r r e and Miq^uelon, t h e - 267 - West I n d i e s , M e x i c o , C e n t r a l A m e r i c a , and t h e N o r t h e a s t Coast o f South A m e r i c a . I f t h e v e s s e l i s l i c e n s e d on t h e P a c i f i c Coast as H.T. I I , i t does not go West of Cape Spencer o r s o u t h o f P o r t l a n d , and i s a t no more t h a n 120 m i l e s o f f s h o r e . 2. The crew i s as f o l l o w s : 1 M a s t e r ; 1 Mate; 2 Deckhands; 1 Cook, w i t h no d u t i e s o t h e r t h a n t h e g a l l e y ; 2 E n g i n e e r s ; 1 O i l e r . One v e s s e l p r o v i d e s t h r e e deckhands i n s t e a d o f two, and no O i l e r . I have no comment t o make. 3 . The p r a c t i c e i s t o employ two men on watch w i t h M a s t e r s and Mates on deck watch. The a c c i d e n t r a t i o as a measure of s a f e t y i s v e r y low i n t h e s e "boats, and has been one o f t h e b e s t i n t h e I n d u s t r y . N i n e . Ten. E l e v e n and Twelve-Men V e s s e l s 1. The a r e a of o p e r a t i o n s i s d e t e r m i n e d by t h e c l a s s of l i c e n s e i s s u e d by t h e Department o f T r a n s p o r t . 2. The crew i s t o c o n s i s t o f : (a) One M a s t e r . (b) Two Mates. (c) Two Deckhands. (d) A C h i e f E n g i n e e r and a Second E n g i n e e r o f t h e a p p r o p r i a t e c l a s s whose d u t i e s w i l l be l i m i t e d t o t h e engine room and t o m e c h a n i c a l equipment of t h e v e s s e l . (e) A cook whose d u t i e s a r e c o n f i n e d t o t h e g a l l e y . - 268 - ( f ) F o r 9-men b o a t s one e x t r a member o f crew an E n g i n e e r o r O i l e r o r Day-man, t h e c h o i c e t o be made by t h e Owner and M a s t e r . (g) F o r 10 and 11-men v e s s e l s two e x t r a men as O i l e r s o r Day-men, t h e c h o i c e t o be made by the Owner and M a s t e r . (h) F o r F o r e i g n - G o i n g v e s s e l s t h e crew w i l l be not l e s s t h a n t h e number r e q u i r e d f o r eleven-men v e s s e l s and o v e r and above t h i s number, e x t r a p e r s o n n e l as r e q u i r e d by t h e n a t u r e o f t h e voyage. A c c i d e n t s and S a f e t y The Memorandum of U n d e r s t a n d i n g p r o v i d e d f o r an e x a m i n a t i o n by t h e R e s e a r c h Sub-Committee i n t o a s p e c t s of s a f e t y , w i t h r e s p e c t t o manning s c a l e s , i n t h e f o l l o w i n g p h r a s e : " . . . s h a l l equate t h e needs of t e c h n i c a l e f f i c i e n c y w i t h t h o s e o f sound i n d u s t r i a l and human r e l a t i o n s as w e l l as s a f e t y i n t h e i n d u s t r y . " [ i t a l i c s m i ne] I n r e s e a r c h i n g t h i s a s p e c t of manning r e q u i r e m e n t s t h e R e s e a r c h Sub-Committee a n a l y z e d t h e u n i o n s ' a s s e r t i o n t h a t a d e f i c i e n c y i n crew s i z e would l i k e l y i n c r e a s e a c c i d e n t s . T h i s I s one of t h e major c l a i m s on w h i c h t h e u n i o n s based t h e i r argument t h a t no man engaged i n the m e c h a n i c a l o p e r a t i o n s i n v o l v e d i n y a r d i n g , booming, conn e c t i n g and d i s c o n n e c t i n g b a r g e s , and so on s h o u l d e v e r be - 2 6 9 - out o f s i g h t of a n o t h e r p e r s o n on watch. I t was a l s o t h e u n i o n s ' b a s i c argument f o r one of t h e most c o n t e n t i o u s i s s u e s i n t h e e n t i r e r e s e a r c h program as was r e l a t e d e a r  l i e r , i . e . t h e y f e l t t h a t manning s c a l e s r e q u i r e "two-men a v a i l a b l e , w i t h no o t h e r d u t y i n t e r f e r i n g w i t h t h i s a v a i l  a b i l i t y , f o r w a t c h k e e p i n g d u t i e s on deck a t a l l t i m e s . " A c c i d e n t r e c o r d s of t w e n t y - f o u r companies w h i c h had a f i v e - y e a r h i s t o r y w i t h t h e Workmen's Compensation B o a r d , as w e l l a s r e c o r d s from one hundred and s e v e n t y - f i v e com p a n i e s engaged i n t u g b o a t i n g and f o r t y - f i v e companies en gaged i n s a l v a g e , f r e i g h t s e r v i c e , f e r r y s e r v i c e , commi s s i o n s , t a x i s and o t h e r s u p p l i e r s , were a v a i l a b l e f o r a n a l y s i s . I n s t u d y i n g t h i s d a t a t h e R e s e a r c h Report sugg e s t e d t h a t I t was not c l e a r t h a t t h e s i z e o f crew made any d i f f e r e n c e i n t h e f r e q u e n c y of a c c i d e n t s p e r man day. Crews of seven may have as many a c c i d e n t s as crews of two. The R e s e a r c h Report c o r r e l a t e d a number of f a c t o r s from t h e d a t a c o l l e c t e d but d i d n o t f i n d any e v i d e n c e t o s u b s t a n t  i a t e a n e g l i g e n c e i n manning s c a l e s . I t d i d , however, i n  d i c a t e t h a t t h o s e f i r m s w i t h a poor r a t i n g must l o o k t o t h e i r h o u s e k e e p i n g as a s o u r c e of a c c i d e n t s . The R e s e a r c h Report a l s o s u g g e s t e d t h a t t h e deck hand i s t h e p e r s o n whose a c c i d e n t r a t e r e q u i r e s t h e most a t t e n t i o n . He i s g e n e r a l l y t h e l e a s t e x p e r i e n c e d o f t h e crew and y e t i s r e q u i r e d t o put h i m s e l f i n p o s i t i o n s of g r e a t e s t danger. The R e s e a r c h Report c o n c l u d e d t h a t i t - 2 ? 0 - i s n o t t h e s i z e of crew w h i c h d e t e r m i n e s a c c i d e n t s ; b a s i c a l l y i t i s a problem t o be s o l v e d by t h e master and mate, p r o v i d e d t h e r e a r e enough men t o ensure adequate r e s t f o r t h e crew. I n a s u b m i s s i o n t o t h e J o i n t C o n s u l t a t i v e Committee f o l l o w i n g r e c e i p t of t h e Re s e a r c h R e p o r t , t h e u n i o n s n o t e d : " I t i s a p p a r e n t t h a t one e n t i r e f i e l d was n o t s t u d i e d i n t h e p r e p a r a t i o n o f t h i s r e p o r t , t h a t b e i n g S a f e t y o f L i f e a t Sea i n r e g a r d s t o t h e s a f e n a v i g a t i o n o f t h e v e s s e l . The G u i l d d i d a b r i e f s u r v e y o f c o u r t cases and f i n d i n g s on r e c o r d i n Canada, U.S.A. and U.K. and s u b m i t t e d t h e r e s u l t s t o . . . R e s e a r c h Committee members f o r t h e i r c o n s i d e r a t i o n and d i s c u s s i o n . " The u n i o n s f e l t t h i s s t u d y was i g n o r e d as t h e y s u g g e s t e d i t was "apparent by i t s absence i n t h e e n t i r e r e p o r t " . I n a d d i t i o n , t h e u n i o n s s t a t e d : " . . . t h a t though comparisons were made w i t h i n t h e Towing I n d u s t r y , t h e I n d u s t r y i t s e l f was not compared t o o t h e r I n d u s t r i e s . We f e e l t h a t i f such a comparison were made, i t would prove a d i r e need f o r s e r i o u s c o n s i d e r a t i o n f o r im provements i n t h i s f i e l d . " The Canadian Merchant S e r v i c e G u i l d was c l e a r l y b u i l d i n g a case a r o u n d t h e n e c e s s i t y o f m a i n t a i n i n g a competent l o o k o u t . As was i n d i c a t e d e a r l i e r i n t h e Re s e a r c h R e p o r t , i t s c o n t e n t i o n was t h a t two men s h o u l d be a v a i l a b l e a t a l l t i m e s f o r w a t c h k e e p i n g on deck and i t s s u r v e y d a t a s u g g e s t e d t h a t i n p a r t : 1 . a l o o k o u t ' s s o l e d u t y i s t o l o o k o u t w i t h t h e eyes and ears,' - 271 - 2, a t no t i m e , not even f o r b r i e f p e r i o d s , s h o u l d t h e r e be one man a l o n e i n t h e wheelhouse, 3o s u f f i c i e n c y o f crew i s dependent on h a v i n g s u f f i c i e n t men t o keep a p r o p e r l o o k o u t . The C anadian Merchant S e r v i c e G u i l d f e l t t h a t t h e I n f o r m a t i o n t h e y had c o l l e c t e d s u p p o r t e d t h e i r demands f o r t h r e e men on deck on each watch f o r t h e s o l e r e s p o n s i b i l  i t y o f s a f e n a v i g a t i o n . The Owners' A s s o c i a t i o n , on t h e o t h e r hand, a g r e e d t o a minimum o f two men p h y s i c a l l y on d u t y , whenever p r a c t i c a l , a t a l l t i m e s a v e s s e l i s underway. However, t h e y s u g g e s t e d t h a t i n p r a c t i c e t h i s w i l l n o t n e c e s s a r i l y p r o v i d e two men a t a l l t i m e s i n t h e wheelhouse as he w i l l on o c c a s i o n be r e q u i r e d t o make c o f f e e , p r e p a r e a m e a l, and t o p e r f o r m o t h e r such t a s k s . They f e l t i t i l l o g i c a l t o a b s o l u t e l y r e q u i r e two men be i n t h e wheelhouse a t a l l t i m e s . " I t i s an u n n e c e s s a r y and uneconomic method of i n c r e a s i n g c o s t s . " The Owners' A s s o c i a t i o n f u r t h e r contended t h a t : " . . . t h e i n d u s t r y has o p e r a t e d f o r 30 y e a r s . . . w i t h  out f i n d i n g i t n e c e s s a r y f o r such a system,... t h i s would not be c a r r i e d out i n p r a c t i c e and i t t h e r e f o r e becomes a form of f e a t h e r b e d d i n g . " I n e s s e n c e , t h e R e s e a r c h Sub-Committee a c c e p t e d t h e p r i n c i p l e t h a t two men be p h y s i c a l l y on watch w h i l e t h e v e s s e l i s underway and t h e y have so i n d i c a t e d i n numerous c a s e s . I n one s e c t i o n o f t h e R e s e a r c h R e p o r t t h e Sub- Committee s t a t e d t h a t "We a r e concerned t h a t t h e r e s h o u l d - 272 - be two men on watch"; and i n t h e f i n a l B i n d i n g Award s u g g e s t e d t h a t "The b a s i c r u l e t o a p p l y t o a l l v e s s e l s . . . i s t h a t two men s h a l l be p h y s i c a l l y on d u t y a t a l l t i m e s when t h e v e s s e l i s underway." I t was n o t e d t h a t t h e b a s i c c r i t e r i a as was i t e r a t e d by t h e u n i o n s d i f f e r e d m a r k e d l y from t h e Purpose as s t a t e d i n t h e Memorandum of U n d e r s t a n d i n g . The u n i o n s s u b m i t t e d t h e i r i n t e r p r e t a t i o n of t h e manning problem t o t h e R e s e a r c h Sub-Committee as f o l l o w s : "The Canadian Merchant S e r v i c e G u i l d h a s, f o r some t i m e , been v e r y concerned o v e r t h e manning problems of t h e v a r i o u s v e s s e l s p l y i n g t h e c o a s t a l w a t e r s of B r i t i s h C o l u m b i a . . . . I n o u r o p i n i o n , t h e minimum crew r e q u i r e m e n t s f o r any v e s s e l i s not a m a t t e r f o r t h e b a r g a i n i n g t a b l e b u t s t r i c t l y a q u e s t i o n o f s a f e t y o f l i f e a t S ©9- o o. o o " However, t h e Memorandum of U n d e r s t a n d i n g i s v e r y e x p l i c i t i n s t a t i n g the purpose " t o examine a l l a s p e c t s of manning o f t h e p r e s e n t and f o r e s e e a b l e f u t u r e . . . " and t o "equate t h e needs of t e c h n i c a l e f f i c i e n c y w i t h t h o s e o f sound i n d u s t r i a l and human r e l a t i o n s as w e l l as s a f e t y i n t h e I n d u s t r y . " The Manpower C o n s u l t a t i v e S e r v i c e r e p r e s e n t a t i v e s u g g e s t e d t h a t t h e q u e s t i o n o f minimum crew r e q u i r e m e n t s f o r s a f e t y i s a m a t t e r f o r s t a t u t o r y r e q u i r e m e n t s o f t h e Canada S h i p p i n g A c t and i s i n no way a f f e c t e d by t h e j o i n t r e s e a r c h program. T h e r e f o r e , when t h e term "manning s c a l e " i s used i n r e f e r e n c e t o t h e program, i t i s t h e - 273 - n e g o t i a t e d manning s c a l e and n o t t h e s t a t u t o r y mlnimums t h a t a r e u s u a l l y b e i n g c o n s i d e r e d . T r a i n i n g and L i c e n s i n g The B r i t i s h Columbia Towing I n d u s t r y , p r e s e n t l y c h a r a c t e r i z e d by growth, c o m p e t i t i o n and t e c h n o l o g i c a l change, has been aware of a need f o r more h i g h l y q u a l i f i e d p e r s o n n e l . B o t h t h e u n i o n s and t h e owners i n p r e v i o u s manning d i s c u s s i o n s i n d i c a t e d t h e d e s i r a b i l i t y o f r e v i s  i o n s t o e x i s t i n g r e g u l a t i o n s r e g a r d i n g c e r t i f i c a t i o n o f p e r s o n n e l . The R e s e a r c h Sub-Committee, i n r e f l e c t i n g a f u t u r e o u t l o o k , s u g g e s t e d : " , , . t h a t t h e I n d u s t r y r e q u i r e d more comprehensive s t a n d a r d s , p l a n s and f a c i l i t i e s f o r t r a i n i n g new e n t r a n t s , r e t r a i n i n g t h o s e whose s k i l l s have be come i n a d e q u a t e and f o r p r o v i d i n g c e r t i f i c a t i o n f o r o p e r a t o r and o t h e r o c c u p a t i o n s f o r w h i c h no p r e s e n t r e q u i r e m e n t s e x i s t , " The Research Report made s p e c i f i c recommendations w i t h r e g a r d t o t r a i n i n g of seamen, cooks and e n g i n e e r s . I t recommended i n d u s t r y - w i d e t r a i n i n g programs t o p r e p a r e new e n t r a n t s f o r t h e s e o c c u p a t i o n s . The seamen and cook o c c u p a t i o n s , i t was s u g g e s t e d , c o u l d l i k e l y be s a t i s f i e d w i t h normal p r e - o c c u p a t i o n a l t r a i n i n g . However, t h e R e s e a r c h Report recommended more e x t e n s i v e measures be t a k e n t o ensure p e r s o n n e l a r e q u a l i f i e d f o r t h e r a p i d changes t a k i n g p l a c e i n power p l a n t and o t h e r equipment - 274 - t e c h n o l o g i e s . I t was, t h e r e f o r e , recommended: " . . . t h a t an a p p r e n t i c e s h i p system be e s t a b l i s h e d i n t h e I n d u s t r y f o r e n g i n e e r s w h i c h w i l l p r o v i d e b o t h c l a s s r o o m and o n - t h e - j o b t r a i n i n g , w i t h p r o v i s i o n f o r t h e a p p r e n t i c e t o g a i n e x p e r i e n c e w i t h a wide range of equipment w i t h a l a r g e number o f companies." I t was b e l i e v e d n e c e s s a r y t h a t r e t r a i n i n g and u p g r a d i n g programs be p r o v i d e d because o f t h e i n t r o d u c t i o n of new power p l a n t s and equipment and t o p r o v i d e e n g i n e e r s w i t h t h e s k i l l f l e x i b i l i t y r e q u i r e d t o meet t h e c h a n g i n g p a t t  e r n of work. Moreover, i t was deemed a d v i s a b l e t o have t h e t r a i n i n g and a p p r e n t i c e s h i p programs i n t h e i n d u s t r y a d m i n i s t e r e d by t h e recommended B r i t i s h Columbia Tugboat Manning B o a r d ( t o be d i s c u s s e d under t h e n e x t h e a d i n g ) . The R e s e a r c h Report recommended, as a t h i r d c a t e  g o r y o f s t a n d a r d s and t r a i n i n g needs, " . . . t h e c e r t i f i c a t i o n of c u r r e n t l y employed p e o p l e i n t h e i n d u s t r y f o r whom no c u r r e n t s t a n d  a r d s o r r e q u i r e m e n t s e x i s t . T h i s recommendation i s p r i m a r i l y concerned w i t h o p e r a t o r s of v e s s e l s o f a s i z e not p r e s e n t l y r e q u i r i n g c e r t i f i c a t i o n and l i c e n s i n g . " Such b a s i c c e r t i f i c a t i o n would be d e s i g n e d t o i n c l u d e o u r r e n t l y employed deckhands and cooks w i t h m ajor emphasis b e i n g p l a c e d on l e n g t h of s e r v i c e and e x p e r i e n c e . The R e s e a r c h R e p o r t c o n c l u d e d : "The main aims of t h e p r o p o s a l s f o r t r a i n i n g and s t a n d a r d s a r e t o p r o v i d e i n d i v i d u a l employees w i t h c e r t i f i e d o c c u p a t i o n a l and s k i l l c a t e g o r i e s , p l u s more f l e x i b i l i t y and m o b i l i t y i n employment.... The i n d u s t r y as a whole r e q u i r e s a c o n t i n u o u s 2?5 - s o u r c e o f s k i l l e d manpower t o meet t h e needs of e x p a n s i o n and i n c r e a s i n g t e c h n o l o g y . Funds and f a c i l i t i e s a r e a v a i l a b l e f o r t h e s e purposes t h r o u g h t h e F e d e r a l - P r o v i n c i a l T e c h n i c a l and V o c a t i o n a l T r a i n i n g Agreements, a d m i n i s t e r e d by t h e P r o v i n c i a l Government and i t i s recommended t h a t t h e s e s e r v i c e s be u t i l i z e d . 1 1 The marine e n g i n e e r s u n i o n was v e r y c a u t i o u s about c o m m i t t i n g i t s e l f t o any t r a i n i n g programs. I n t h e p a s t t h e u n i o n f e l t t h a t new e n t r a n t s were b e i n g duped i n t o w o r k i n g a s common l a b o u r e r s r a t h e r t h a n r e c e i v i n g any t r a i n i n g . A f t e r r e l e a s e o f t h e R e s e a r c h R e p o r t , t h e u n i o n , i n a s u b m i s s i o n t o t h e J o i n t C o n s u l t a t i v e Committee s t a t e d t h a t i t : " . . . c e r t a i n l y a g r e e s . . . o n t h e m a t t e r of t r a i n i n g , b o t h r e t r a i n i n g and u p g r a d i n g . There i s c e r t a i n l y a d r a s t i c need f o r new e n t r a n t s i n t o t h e f i e l d of marine e n g i n e e r i n g . . . . U n f o r t u n a t e l y , o u r r e c e n t e x p e r i e n c e s w i t h o t h e r s h i p p i n g f i r m s i n a t t e m p t  i n g t o s e t up t r a i n i n g programs have ended i n complete f a i l u r e . " L a t e r , i n a l e t t e r , t h e marine e n g i n e e r s u n i o n i n d i c a t e d t h a t due t o t h e many abuses t h e e n g i n e e r s had s u f f e r e d i n t r a i n i n g t h e y were g o i n g t o d i v o r c e themselves from any agreement w i t h t h e p r o p o s e d a p p r e n t i c e s h i p t r a i n  i n g program u n t i l t h e r e was a b u i l t - i n p r o t e c t i o n and some o p p o r t u n i t y f o r g a i n i n g advanced knowledge, p r a c t i c a l e x p e r i e n c e and t r a i n i n g . T h e r e f o r e , t h e marine e n g i n e e r s u n i o n c o n c l u d e d t h e y would be v e r y adamant t h a t any young p e o p l e brought i n t o an a p p r e n t i c e s h i p program be p r o t e c t e d i n t h e f o l l  owing ways: ( 1 ) government i n d e n t u r e s be s e t up t o o v e r s e e - 2?6 - t h e program; (2) t h e u n i o n would have some s a y i n i m p l e  m e n t a t i o n a t a l l s t a g e s ; and (3) a p p r e n t i c e s would he a d d i t i o n a l p e r s o n n e l p l a c e d on hoard f o r t h e e x p r e s s purpose of s t u d y i n g and t r a i n i n g , , The Owners' A s s o c i a t i o n a l s o i n d i c a t e d a c o n c e r n t h a t a p r o p e r system of q u a l i f i c a t i o n be e s t a b l i s h e d . I n a s u b m i s s i o n t o t h e J o i n t C o n s u l t a t i v e Committee t h e Owners' A s s o c i a t i o n s t a t e d t h e f o l l o w i n g o p i n i o n s : ( 1 ) "That a l l o p e r a t o r s o f v e s s e l s engaged i n any f a c e t o f t h e Towing I n d u s t r y s h o u l d be r e q u i r e d t o h o l d a c e r t i f i c a t e o f competency n o t a t p r e s e n t i n e x i s t e n c e ; (2) That r e v i s i o n s a r e r e q u i r e d t o e x i s t i n g m a s t e r ' s c e r t i f i c a t e s , i . e . q u a l i f i e d men who have o p e r a t e d v e s s e l s l e s s t h a n t e n t o n s s h o u l d have t h i s t i me a o c e p t e d and be a b l e t o s i t f o r a m a s t e r ' s c e r t i  f i c a t e ; and (3) That t h e Owners' A s s o c i a t i o n has many t i m e s i n the p a s t a s k e d f o r changes i n t h e r e g u l a t i o n s r e g a r d i n g c e r t i f i c a t i o n . " B r i t i s h Columbia Tugboat Manning Board The t r a d e u n i o n s and t h e Owners' A s s o c i a t i o n have a g r e e d t h a t t h e t r a d i t i o n a l methods of m e e t i n g manning problems have been u n s a t i s f a c t o r y , i f n o t u n s u c c e s s f u l , and a c c e p t e d t h e p r i n o l p l e of J o i n t c o n s u l t a t i o n and p l a n n i n g w i t h t h i r d p a r t y d e c i s i o n - m a k i n g i n t h e event of f a i l u r e t o reaoh v o l u n t a r y agreement. T h i s p r i n c i p l e was extended by r e p r e s e n t a t i v e members of t h e Res e a r c h Sub- Committee t o embrace t h e concept of a r e g u l a t o r y i n d u s t r y -- 277 - wide Manning Boardo They b e l i e v e d t h a t t o w b o a t s , w i t h o u t a doubt, would be t h e means o f h a n d l i n g c o a s t a l t r a f f i c i n t h e f u t u r e , and t h a t a l o n g range view of approaches t o manning was, t h e r e f o r e , required,. I t was w i t h t h i s o u t l o o k i n mind t h a t t h e p a r t i e s a g r e e d t o a t t e m p t t o c r e a t e a r e g u l a t o r y Manning B o a r d , based upon t h e f o l l o w  i n g p r i n c i p l e s : "(1) V e s s e l s and equipment must be a s e f f i c i e n t as p o s s i b l e and t h e p a r t i e s must a c c e p t and urge t h e development of a l l p o s s i b l e m e c h a n i z a t i o n . The a l t e r n a t i v e t o t h i s i s a c o n t i n u i n g q u a r r e l about each p a r t i c u l a r v e s s e l as i t comes f o r w a r d . (2) There must be no p r o t e c t i o n f o r t h e i n a d e q u a t e b o a t ; i n a d e q u a t e i n terms of f a c i l i t y , i n terms of f o o d , h o u s i n g , p r o t e c t i o n o f l i f e and l i m b . ( 3 ) I t w i l l be n e c e s s a r y f o r somebody t o s a y t o an owner t h a t t h e s i z e , c o n s t r u c t i o n and equipment he p r o v i d e s w i l l d e t e r m i n e t h e a r e a of h i s o p e r  a t i o n and t h a t some of t h e b o a t s t h a t a r e now moving i n t o l o n g e r t r i p s w i l l be d e b a r r e d . (4) I t w i l l be n e c e s s a r y f o r m a s t e r s , mates and e n g i n e e r s t o u n d e r t a k e more t r a i n i n g i n c o n n e c t i o n w i t h new equipment. (5) I t w i l l be n e c e s s a r y t o have m a s t e r s t r a i n e d t o a c c e p t t h e r e s p o n s i b i l i t y under S e c t i o n 407. (6) I t w i l l be n e c e s s a r y f o r t h e n o n - l i c e n s e d group t o have a r i g h t t o advance t h e i r i d e a s i n t h e p r e s e n c e of t h e i r p e e r s . (7) I t w i l l be f a i r t o say t h a t t h o s e who come i n t o t u g b o a t i n g , as l o n g as t h e y w i s h t o remain i n t h a t a r e a , w i l l p l a n t o c o n t i n u e a s members of t h i s group. (8) The Government has a r i g h t t o p r o t e c t by e x a m i n a t i o n and o t h e r methods t h e competency of m a s t e r s , mates and e n g i n e e r s . . . . (9) The Government has a r i g h t t o i s s u e - 2 7 8 - c e r t i f i c a t e s w i t h r e g a r d t o t h e s a f e t y and p e r  haps t o i s s u e c e r t i f i c a t e s w i t h r e g a r d t o com p e t e n c y w i t h i n "both t h e l i c e n s e d and n o n - l i c e n s e d g r o u p s , " I n a d d i t i o n t o t h e s i m p l e r u l e s as t o t h e number of d i f f e r e n t o c c u p a t i o n s c o m p r i s i n g crews, t h e recommended concept of a Manning B o a r d i n c l u d e d such m a t t e r s a s : r e g u l a t i o n s h a v i n g t o do w i t h w o r k i n g and l i v i n g f a c i l  i t i e s ; a r e a s of o p e r a t i o n f o r c e r t a i n s i z e s o f v e s s e l s and crews; s t a n d a r d s of c e r t i f i c a t i o n f o r o f f i c e r s ; hours of s h i f t s ; w a t c h k e e p i n g ; and t h e r e t r a i n i n g and u p g r a d i n g of o f f i c e r s and n o n - l i c e n s e d p e r s o n n e l . When a d i f f e r e n c e a r o s e between t h e owners and t h e employees o f a m a t t e r under t h e Manning Board's j u r i s d i c t i o n i t was e x p e c t e d t h a t t h o s e c o n c e r n e d would seek t h e Board's c o n s i d e r a t i o n . W i t h t h e above p r i n c i p l e s i n mind, t h e R e s e a r c h Re p o r t p r o p o s e d t h e Manning B o a r d be s t r u c t u r e d as f o l l o w s : 1. The B o a r d s h o u l d r e g u l a t e o v e r t h e whole i n d u s t r y . The R e p o r t s u g g e s t e d t h a t o n l y w i t h i n d u s t r y - w i d e r e g u l  a t i o n c o u l d t h e manning problem be s o l v e d i n t h e l o n g r u n . C o i n c i d e n t w i t h t h i s p r o p o s a l i s t h a t a l l c ommercial tow i n g v e s s e l s be s u b j e c t t o i n s p e c t i o n by t h e Steamship I n s p e c t i o n B r a n c h and t h a t a l l o p e r a t o r s of such v e s s e l s be c e r t i f i e d f o r competence. C u r r e n t r e g u l a t o r y l e g i s  l a t i o n exempts c e r t a i n s i z e d v e s s e l s f rom s a f e t y i n s p e c t i o n and a l l o w s n o n - c e r t i f i e d p e r s o n n e l t o o p e r a t e v e s s e l s w e i g h i n g under f i f t e e n t o n s . A l a r g e number of v e s s e l s - 279 - • i n t h e i n d u s t r y a r e t h e r e b y unregulated,, T h e r e f o r e , w i t h t h e new s t r u c t u r e , owners and owner - o p e r a t o r s who p r e v i o u s l y had manned t h e i r v e s s e l s below a s a t i s f a c t o r y l e v e l o r escaped i n s p e c t i o n by b u i l d i n g o n l y up t o f i f t e e n t o n s would no l o n g e r r e t a i n a c o m p e t i t i v e advantage„ 2. R e p r e s e n t a t i o n must be made t o s o l v e t h e d i f f i c u l t d e c i s i o n s o f r e s p o n s i b i l i t y . T h i s i s no easy t a s k as t h e wide d i v e r s i t y o f I n t e r e s t s I n t h e i n d u s t r y make i t nec e s s a r y t o c o n s i d e r r e p r e s e n t a t i o n by owners, owner-oper a t o r s , m a s t e r s , mates, e n g i n e e r s , and u n l i c e n s e d p e r s o n n e l I n t h e o r g a n i z e d and u n o r g a n i z e d g r o u p s . The two a l t e r n a t e approaches w h i c h f o l l o w a p p e a r p o s s i b l e : 1 s t — 2nd— 1 O w n e r - A s s o c i a t i o n — V a n c o u v e r 3 O w n e r s - A s s o c i a t i o n 1 O w n e r - A s s o c i a t i o n — V i c t o r i a 1 M a s t e r - G u i l d 1 N o n - A s s p c l a t i o n 1 O r g a n i z e d - G u i l d 1 M a s t e r G u i l d 1 H o n - l i e e n s e d - U n i o n 1 M a s t e r N o n - o r g a n i z e d ( O b s e r v e r - N o n - l i c e n s e d - 1 N o n - l i c e n s e d O r g a n i z e d Union) The f i r s t a p p r o a c h r e c o g n i z e s t h e f a c t s o f incom p l e t e o r g a n i z a t i o n i n t h e i n d u s t r y and of s p e c i a l i n t e r  e s t s . The second approach i n v o l v e s o n l y t h e use o f e x i s t  i n g i n s t i t u t i o n s . T h i s second approach i s i n e f f e c t i n B r i t a i n and i s c o n s i s t e n t w i t h t h e t h i n k i n g of Commissioner Goldenberg's R o y a l Commission R e p o r t 1 . The Research Sub- x C o m m i s s l o n e r H. C a r l G o l d e n b e r g , O.B.E., Q.C. "Report of t h e R o y a l Commission on Labour-Management R e l  a t i o n s i n t h e ( O n t a r i o ) C o n s t r u c t i o n I n d u s t r y " , p. 5 8 . - 280 - Committee a l s o favoured t h i s approach to organization. I t may he desirable to include a government repres entative from the Department of Transport, or the Steam ship Inspection Branch, as a member of the Board, How ever, i t was acknowledged that the government might wish to remain independent. The Chairman would have to be an in d i v i d u a l of considerable repute and without past assoc i a t i o n with the pa r t i e s . 3 . The B r i t i s h Columbia Tugboat Manning Board would derive i t s authority by requesting the appropriate M i n i s t  er and the Governor-in-Council or by request of the part ies to bestow upon the Board the powers described i n Sec t i o n 410(1)(m) of the Canada Shipping Act, 4. The Board's prime concern would be the manning of vessels having due regard f o r the r i g h t s , obligations and r e s p o n s i b i l i t i e s of a l l p a r t i e s , and would equate the needs of technical e f f i c i e n c y with those of sound i n d u s t r i a l and human re l a t i o n s as we l l as safety i n the industry. In summary, i t would be the r e s p o n s i b i l i t y of the Manning Board to bring about, and to maintain, a safe, orderly and humanely s a t i s f a c t o r y environment In which the towing industry could grow and prosper. VI. SUBSEQUENT PROCEEDINGS AND RESULTS Dispo s i t i o n of the Binding Decision was made In May, 1966. However, neither party was s a t i s f i e d with the - 281 - w o r d i n g o f t h e B i n d i n g D e c i s i o n and r e q u e s t s were made t o t h e Manpower C o n s u l t a t i v e S e r v i c e r e p r e s e n t a t i v e , i n h i s r o l e o f A c t i n g - C h a i r m a n of t h e J o i n t C o n s u l t a t i v e Commi t t e e , t o p r o v i d e f o r f u r t h e r c l a r i f i c a t i o n , , I n response t o t h e s e r e q u e s t s an Appendix t o t h e B i n d i n g D e c i s i o n , d a t e d November 10, 1966, was p r o v i d e d s t a t i n g t h e i n t e r  p r e t a t i o n and c l a r i f i c a t i o n as v iewed by t h e A e t i n g - C h a i r m a n 0 On November 23, 1966 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 owners f o r m a l l y a c c e p t e d t h e B i n d i n g D e c i s i o n and A ppendix f o r t h e p e r i o d e n d i n g F e b r u a r y 28, 1967. P r o  v i s i o n was a l s o made f o r a R esearch Sub-Committee, made up o f t h r e e r e p r e s e n t a t i v e s o f each group, t o h e a r a p p e a l s on p a r t i c u l a r cases based on t h e B i n d i n g D e c i s i o n . An o t h e r Sub-Committee was p r o p o s e d t o i n v e s t i g a t e t h e a c t  i v i t i e s o f n o n - a s s o c i a t i o n v e s s e l s and n o n - r e g u l a t e d v e s s e l s w i t h t h e aim o f e n c o u r a g i n g them t o conform t o t h e B i n d i n g D e c i s i o n . I n F e b r u a r y , 1967 t h e p e r i o d o f t h e B i n d i n g Dec i s i o n was extended t o A p r i l 1, 1968 when t h e d e c i d i n g v o t e was c a s t by th© A©ting-Chalrman of t h e J o i n t C o n s u l t a t i v e Committee. I n i t i a l l y i t was assumed t h a t c o n f o r m i n g t o t h e B i n d i n g D e c i s i o n would s p e l l d i s a s t e r t o a number o f m a r g i n a l f i r m s t h a t had been o p e r a t i n g w i t h f e w e r men t h a n was now deemed a p p r o p r i a t e by t h e B i n d i n g D e c i s i o n . S i n c e t h i s t i m e , however, t h e r e appears t o be a movement of - 282 - n o n - a s s o c i a t i o n companies towards c o n f o r m i n g w i t h t h e s t i p u l a t e d manning s c a l e s and the f e a r e d d i r e consequen ces have not y e t m a t e r i a l i z e d , The Research Report made a number o f recommendations on i s s u e s r e g a r d i n g t h e f u t u r e c o - o r d i n a t i o n o f manpower p l a n n i n g and t e c h n o l o g i c a l change i n t h e t o w i n g i n d u s t r y . S u c c e s s f u l i m p l e m e n t a t i o n o f t h e s e recommendations, how e v e r , has been v e r y l i m i t e d . R e p r e s e n t a t i o n s have been made t o t h e f e d e r a l Department of T r a n s p o r t and t h e p r o  v i n c i a l Department o f E d u c a t i o n r e g a r d i n g t r a i n i n g , r e  t r a i n i n g and u p g r a d i n g and c e r t i f i c a t i o n of p e r s o n n e l , but n o t h i n g d e f i n i t e has emerged. A t t e m p t s a t c l a r i f i  c a t i o n o f s e c t i o n s of t h e Canada S h i p p i n g A c t were thought u n l i k e l y o f s u c c e s s e v e r b e f o r e b e i n g i n i t i a t e d . A p p l i c  a t i o n f o r t h e e s t a b l i s h m e n t of an i n d u s t r y - w i d e r e g u l a t  o r y B r i t i s h Columbia Manning Board was t u r n e d down by t h e Department of T r a n s p o r t . On t h e i s s u e o f l i c e n s i n g and i n s p e c t i o n of a l l v e s s e l s i n B r i t i s h Columbia commercial t o w i n g , t h e r e i s some hope t h a t t h e Department o f T r a n s  p o r t w i l l l o w e r t h e minimum r e q u i r e m e n t f o r i n s p e c t i o n from f i f t e e n t o n i n e t o n s . 

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