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

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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. U n i v e r s i t y of A l b e r t a , 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 A d m i n i s t r a t i o n  We accept t h i s t h e s i s as conforming t o the required standard  THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1967  i n presenting  this thesis  i n p a r t i a l f u l f i l m e n t o f the r e q u i r e m e n t s  f o r an advanced degree a t t h e U n i v e r s i t y o f B r i t i s h Columbia, I agree t h a t t h e L i b r a r y s h a l l make i t f r e e l y a v a i ] a b l e study.  f o r reference  and  I f u r t h e r agree t h a t permission., f o r e x t e n s i v e c o p y i n g o f 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 g r a n t e d by the Head o f my Department o r by h i s r e p r e s e n t a t i v e s .  I t i s understood that  copying  or p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l n o t be a l l o w e d w i t h o u t my w r i t t e n  permission.  The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8, Canada  ABSTRACT Since inception of the Manpower Consultative Service in mid-1964 about twenty programs of manpower adjustment to technological change have been initiated under its auspices. This report reviewed recent literature on manpower adjustment requirements to provide a framework within which to evaluate the effectiveness of the Manpower Consultative Service in enhancing an active national manpower policy. Selected cases were examined for any emerging patterns amenable for use In future adjustment procedures; 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 Consultative Service. Suggested improvements were recommended 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 methodology. Specifically,  - i i (a)  Advance n o t i c e of impending changes that w i l l r e s u l t i n the displacement of workers i s prerequisi t e t o 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 t o 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 f i r m s caught up i n an everi n c r e a s i n g competitive environment. L e g i s l a t i o n Is required t o provide f o r minimum advance n o t i c e of worker l a y - o f f as a s t a t u t o r y r i g h t , (b)  Current emphasis on J o i n t labour-management cooperation 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 C o n s u l t a t i v e Service and c l e a r l y d u p l i c ates the current f u n c t i o n of the Labour-Management C o n s u l t a t i o n Branch of the f e d e r a l Department of Labour.  This p r i n c i p l e should be subordinated i n  the Service's basic r a t i o n a l e such that i t becomes only a complementary f u n c t i o n . (c)  Co-ordination of the f e d e r a l c o u n s e l l i n g , placement, 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 has been i n e f f e c t i v e and inadequate.  E f f o r t s should be f o c -  ussed on strengthening the c o - o r d i n a t i o n of these s e r v i c e s and p r i o r i t y given t o 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 C o n s u l t a t i v e Committees have evolved i n t o 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 development 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 implementation lacks organizational commitment to a discipline that dominates its structure and processes. A revitalization and reorganization of the Service's basic rationale is required to promote the maximum utilization of the nation's manpower resources. Examination of many aspects pertinent to the operation of the Manpower Consultative Service was beyond the scope of this report. A number of worthwhile areas for further study have been introduced.  - ivACKNOWLEDGMENT This report was prepared under contraet w i t h the f e d e r a l Department of Manpower and Immigration and the author i s indebted t o a number of the Department's officialso  Mr, J.D, Drew made i n i t i a l p r o v i s i o n f o r  the study and ensured that source data was made a v a i l a b l e ; Messrs. G.G. Duelos, G.G. Brooks, E.J. Murphy and Dr. W-.R, Dymond a l s o provided a s s i s t a n c e and source material. Acknowledgment i s made t o the author's a d v i s o r s Dr. N.A, H a l l and Dr. L.F. Moore f o r t h e i r a s s i s t a n c e and guidance i n preparing the r e p o r t . The author i s e s p e c i a l l y g r a t e f u l t o P r o f e s s o r 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 R e l a t i o n s , U n i v e r s i t y of B r i t i s h Columbia, f o r h i s time, counsel and reference m a t e r i a l s 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 r e p o r t .  TABLE OP CONTENTS THE MANPOWER CONSULTATIVE SERVICE: EXAMINATION OF A FEDERAL APPROACH TO SOLVING THE MANPOWER ADJUSTMENT PROBLEMS OF TECHNOLOGICAL CHANGE CHAPTER I.  II.  Page INTRODUCTION  1  The Impact of Changing Technology  2  R e s p o n s i b i l i t i e s i n the T r a n s i t i o n  5  Canadian Manpower P o l i c y  10  Purpose of the Study  14  Methodology  17  Scope of the Report  19  Terminology  20  MANPOWER ADJUSTMENT THROUGH COLLECTIVE BARGAINING  24  Introduction  24  Monetary Issues  26  Wages  26  Incentive Systems  28  Fringe B e n e f i t s  30  F i n a n c i a l Guarantees  32  Non-Monetary Issues  36  Labour Turnover  36  Working P e r i o d  39  Labour M o b i l i t y  41  Advance Planning  46  - v iCHAPTER  III.  Page The Desired Mix  5©  L i m i t a t i o n s of the Process  55  MANPOWER ADJUSTMENT THROUGH JOINT STUDY COMMITTEES  IV.  62  Introduction  62  J o i n t Study Committee Approach  63  European Experience  68  United States Experience  71  Canadian Experience  77  Summary and Conclusions  84  MANPOWER ADJUSTMENT THROUGH GOVERNMENT SPONSORED JOINT STUDY COMMITTEES Introduction  91 91  The Basic Rationale of an A c t i v e Canadian Manpower P o l i e y The Manpower C o n s u l t a t i v e Service Methodology P r i n c i p l e s Stated Approach Reviewed Selected Cases Handled by the Manpower Consultative Service P l a n t Closure  92 95 95 98 104 105  Dorntar Pulp and Paper L t d . , Portneuf, Quebec  105  Mount Royal Rice M i l l s L t d .  108  I n t e r n a l Adjustment Canadian P a c i f i c A i r Lines Ltd.  110 110  - v i iCHAPTER  Page I n t e r n a l Adjustment (Cont'd.) Canadian N a t i o n a l  Railways,  North Sydney  112  Manitoba R o l l i n g M i l l s L t d .  117  Domtar, L t d . , Windsor, Quebec 121 Future Planning  125  B r i t i s h Columbia Towing Industry  125  Imperial O i l E n t e r p r i s e s L t d .  130  Graphic A r t s Industry of Toronto V i c t o r i a Mechanical Industr i a l Relations Association  V.  Summary EVALUATION OF THE MANPOWER CONSULTATIVE SERVICE APPROACH  134 139 140 142  Introduction  142  Integrated Case A n a l y s i s  143  Three Phases of Work Force Adjustment  143  Three Stages of Union Defence  14?  Co-ordination of Manpower Services  154  V a r i a b l e Factors  156  The Manpower C o n s u l t a t i v e Service i n Context Examination of the Manpower Consulta t i v e Service Methodology A c t i v e Versus Passive Approach The Requirement of Advance Notice  159 165 166 1?0  - viii CHAPTER  Page Examination of the Manpower Consulta t i v e Service Methodology (Cont'd.) J o i n t Study and the Committee Chairman Labour-Management Co-operation and Manpower P o l i c y The Need f o r Co-ordination of the Government's Manpower Services  VI.  SUMMARY, CONCLUSIONS AND RECOMMENDATIONS  1?9 188 197 205  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, o t h e r t h i n g s being equal, most of the r o u t i n e b l u e - and w h i t e - c o l l a r t a s k s t h a t can be performed by c y b e r n a t i o n w i l l be. People w i l l have begun t o r e a l i z e t h a t , when i t comes t o l o g i c , the machines by and l a r g e , can t h i n k b e t t e r than they. Thus, c y b e r n e t i c i a n s w i l l have e s t a b l i s h e d a r e l a t i o n s h i p w i t h t h e i r machines t h a t cannot be shared w i t h the average man, and those with a t a l e n t f o r work w i l l have developed i t i n t e n s i v e l y from c h i l d h o o d . Some of the remaining p o p u l a t i o n w i l l be engaged i n human-tohuman o r human-to-machine a c t i v i t i e s r e q u i r i n g judgment and a h i g h 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 r e s t , I can f o r e s e e a n a t i o n with a l a r g e p o r t i o n of i t s people doing, d i r e c t l y o r I n d i r e c t l y , the endless p u b l i c t a s k s t h a t the w e l f a r e s t a t e needs, and t h a t the government w i l l not a l l o w t o be cybernated, because of the s e r i o u s unemployment t h a t would r e s u l t . These people w i l l work short hours, with much time f o r the p u r s u i t o f l e i s u r e a c t i v i t i e s . . . . Because the cybernated g e n e r a t i o n must s o l v e problems, as now, mainly by o t h e r than m a t h e m a t i c a l - l o g i c a l standards, the f r u s t r a t i o n s and p o i n t l e s s n e s s engendered may evoke, i n t u r n , a war of d e s p e r a t i o n ; a war to make the world s a f e f o r human beings by d e s t r o y i n g most of s o c i e t y ' s s o p h i s t i c a t e d t e c h n o l o g i c a l base. I f the new l o g i c i s t o r e s o l v e i t s problems i t w i l l have t o 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 h e l d t o now and Which a r e d r i v i n g us more i n e x o r a b l y i n t o a c o n t r a d i c 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 s l a v e s . " - D.N. Michaels-  M i c h a e l , 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 o f Democ 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 -  a t i n g speculations have gained a l a r g e f o l l o w i n g i n t o day 's r a p i d l y 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 u n l i m i t e d that "they contain extraordinary i m p l i c a t i o n s 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  chall-  enge t o t h e i r roots the current perceptions about the viability  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 s t a t e d 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; Cybern e t i c s and S o c i e t y . Boston: Houghton M i f f l i n Company,  195*,  P. 2  199.  M i c h a e l , D.N.  0p_. Cit.« p. 1.  ^Snyder, J r . , J . I . "Industry's Human R e s p o n s i b i l i t i e s i n the Age of Automation". Automation and S o c i a l Change. Conference sponsored by Ontario Government Departments of Economics and Development, Education, Labour and Ontario Eoonomic C o u n c i l , 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 r e t r a i n e d and put i n t o other jobs r e q u i r i n g higher s k i l l s and paying more money; l a r g e 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 d i s p l a c e d 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 p r o g n o s t i c a t i o n provides  ex-  c i t i n g reading, authors l i k e Messrs. Beaumont and H e l f gott have chosen to d i s c a r d the dramatic and emotional from t h e i r d i s c u s s i o n s of a c t u a l experience i n a d j u s t i n g to change.  They suggest "that pessimism over the immed-  i a t e d i s l o c a t i o n s of change w i l l not h a l t t e c h n o l o g i c a l advances, f o r the problems of today are c l e a r i n g the  way  f o r the o p p o r t u n i t i e s of tomorrow."* The paradox of the automated world forms i n the prodigious b e n e f i t s that accrue from i t and the a c t i o n s that have emerged to impede i t .  defensive  Increasing tech-  n o l o g i c a l change i s i n e v i t a b l e . I t i s i n e v i t a b l e because Increased competition, more turbulent market c o n d i t i o n s , shorter temporal periods between discovery and use of products and many other environmental conditions demand it.  Moreover, change i s i n e v i t a b l e i f the economic and  ^Beaumont, R.A. and H e l f g o t t , R.B. Management, Automation and People. B r a t t l e b o r o , Utah: The Book Press, 1964, Forward, p. v i i .  - 4 -  s o c i a l p r o s p e r i t y of each and every i n d i v i d u a l i s t o continue and t o Increase.  Nevertheless,  i t has been accepted  that t h i s growth and a f f l u e n c e i s not without i t s attendant c o s t s .  The problem of concern i s that of minimizing  the c o s t s .  Thus i n time of plenty there i s no need f o r  the few t o s u f f e r undue h a r d s h i p — n e i t h e r to do so.  i s i t feasible  I f management i s t o continue i t s inexorable  d r i v e 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 t e c h n o l o g i c a l change has been found t o create some uneasiness i n most workers.  There have been many i n -  d i c a t i o n s of d i r e c t r e s i s t a n c e to innovation and change. In general, however, worker a t t i t u d e s have transcended the l i m i t a t i o n s of d i r e o t r e s i s t a n c e and competition and workers have found that a d d i t i o n a l b e n e f i t s can be gained from c o n t r o l l i n g the pace of t h i s awesome f o r c e . S o c i e t y , too, has seen the need to ensure phat man's ingenuity be employed t o minimize the hardships w i t h t e c h n o l o g i c a l change. use of human resources  associated  In s t r i v i n g to maximize the  of a n a t i o n , increased emphasis has  been placed on the waste that accompanies unemployment. In a d d i t i o n , the s o c i a l conscience expected of l a r g e orga n i z a t i o n s has made i t morally untenable f o r t e c h n o l o g i c a l change t o be introduced without regard f o r the welfare of each I n d i v i d u a l . The c a l l i s f o r new Ideas to cope w i t h impending adjustments and a need t o throw o f f the f e t t e r s  - 5 ~ of pessimism i n order that problems can be analyzed objectively.  Change i s a major part of any dynamic s o c i o -  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 f u t u r e . The challenge i s somewhat formidable.  I t i s obvious  that t e c h n o l o g i c a l change can l e a d 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 c o - o r d i n a t i o n of manpower adjustment w i t h technol o g i c a l change be planned to provide f o r l e v e l s of output and e f f i c i e n c y attuned to the demands of s o c i e t y . II.  RESPONSIBILITIES IN THE TRANSITION  The emphasis of automation has been d i r e c t e d a t the imminent dangers of widespread unemployment. economists, business men,  Academic  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 d e f i c i e n c y school, which maint a i n s that unemployment Is a f u n c t i o n 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 c u t s , e a s i e r c r e d i t , more l i b e r a l d e p r e c i a t i o n allowances,  and  the l i k e — t o stimulate business investment, consumer ex-  - 6penditures 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 p o l i c y i s required; that i s , mone-. t a r y 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 t o reach the d e s i r e d l e v e l s of employment.  This view envis-  ages a large part of the unemployment as due t o a d i s p a r i t y between the s t r u c t u r e of labour supply and labour demand . I n a s s i g n i n g r e s p o n s i b i l i t i e s during the i n c r e a s i n g adoption of t e c h n o l o g i c a l ehange i t must be  recognized  then that n e i t h e r manpower p o l i c i e s nor c o l l e c t i v e barg a i n i n g , 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 prices.  Thus, p r o d u c t i v i t y increases and increased  use of c a p i t a l must be o f f s e t by government monetary and f i s c a l p o l i c i e s t o ensure f u l l u t i l i z a t i o n of labour and capital. Beyond an economy geared t o f u l l employment, however, t e c h n o l o g i c a l change can produce dramatic and d i f f i Jamieson, S.M. "Economic and Technological Change i n the 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 cussion '. 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 R e l a t i o n s : U n i v e r s i t y of B r i t i s h Columbia, 1965, p. 86. x  1  c u l t worker displacement problems where the pace i s too r a p i d f o r normal demand processes t o accommodate.  Trying  to reduce the a n t i c i p a t e d s t r u c t u r a l unemployment by means of s t i m u l a t i n g the aggregate demand f o r labour would lead to u n d e s i r a b l e i n f l a t i o n a r y pressures and even then would probably not solve the problem «, 1  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 t o focus i n s o l v i n g 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 demand, the s t r u c t u r a l transformations t h a t occur during changing technology require s p e c i a l c o n s i d e r a t i o n t o ensure a minimum of t r a n s i t i o n a l d i s r u p t i o n . Everyone must bear some r e s p o n s i b i l i t y i n minimizi n g the hardships passed on t o the worker i n a d j u s t i n g t o changing economic and t e c h n o l o g i c a l c o n d i t i o n s .  While  agreement i s f a r from unanimous, an examination of modern p o l i c i e s and procedures does i n d i c a t e a fundamental r a t i o n a l e necessary t o f u t u r e progress., A basic assumption i n Canadian i n d u s t r y i s the acceptance of f r e e n e g o t i a t i o n as a means f o r s o l v i n g the ^Crispo, John H G "Summary Report on the Conference" o The Requirements of Automated Jobs. North American J o i n t Conference, Washington, D Co 1964. P a r i s , France: O.E.C.D. P u b l i c a t i o n , 19&5, p. 26. 0  0  0  9  - 8 complexities of labour-management problems.  Whereas there  has been strong agreement to the f r e e bargaining approach, there has a l s o developed an i n c r e a s i n g awareness of a need f o r more c o n s t r u c t i v e 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 n e g o t i a t i o n 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 e n t e r p r i s e 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 n o t i c e of impending changes and to research i t s r a m i f i c a t i o n s based on a j u d i c i o u s combination o f p r o d u c t i v i t y and human w e l f a r e . Manpower planning involves the accurate f o r e c a s t i n g of job requirements, the a n a l y s i s of the content of new  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 r o l e i n t h i s process by adapting to and supporting the manpower adjustment programs of the e n t e r p r i s e which are i n the u l t i m a t e i n t e r e s t ^•See Chapter I I , L i m i t a t i o n s of the Process S e c t i o n , pp.  55-61.  2  Dymond, W.R. "Co-ordination 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 " . Paper presented to I n t e r n a t i o n a l Conference on Methods of Adjustment of Workers to Technical Change at the P l a n t Level i n Amsterdam, Nov. 15th to 18th, 1 9 6 6 , p. 6 .  -  of i t s members.  9  -  I n c r e a s i n g pressure has f o r c e d unions to  reassess o l d p o l i c i e s and p r a c t i c e s i n the l i g h t of new situations.  For example, d e c l i n i n g union membership can  be c o r r e l a t e d w i t h increased demands f o r worker job security.  This p r a c t i c e has impeded the worker"s job m o b i l i t y  and consequently h i s chance t o adjust t o changes. The r o l e of government must be to harmonize enterp r i s e manpower p o l i c i e s and programs w i t h n a t i o n a l , s o c i a l and economic i n t e r e s t s .  I f the e n t e r p r i s e does not provide  forward-lookingj, well-planned and c o n s t r u c t i v e manpower programs t o ensure worker c o n s i d e r a t i o n , then n a t i o n a l manpower p o l i c y must provide f o r worker adjustment.  There  are many instances too, when i t i s obviously not p o s s i b l e f o r the e n t e r p r i s e t o provide complete i n t e r n a l  adjustment.  In such cases the government, through i t s employment and manpower s e r v i c e s , should p l a y a major r o l e 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 . Through programs 1  aimed a t upgrading, t r a i n i n g , r e t r a i n i n g and r e l o c a t i o n of d i s p l a c e d workers the government seeks to achieve the worker's f u l l c o n t r i b u t i o n t o the n a t i o n a l economy. The major concern of t h i s report l i e s w i t h the widely heralded c o l l e c t i v e bargaining I n n o v a t i o n — t h e j o i n t study committee.  Here management and labour are  provided w i t h an i n f o r m a l channel of communication and a  I b i d , o pp 4—7° 0  - 10  -  means t o promote c o n s t r u c t i v e research i n t o manpower adjustment programs.  Where t r a d i t i o n a l c o l l e c t i v e bargain-  i n g has reached an impasse and where problems are too complex to be solved by eleventh-hour d e c i s i o n making the issues are found to be more l i k e l y solved through j o i n t research and c o n s u l t a t i o n .  S o l u t i o n s developed i n t h i s  way are normally a complex mix of the r e g u l a r c o l l e c t i v e bargaining methods a s s i m i l a t e d i n t o a comprehensive p l a n . The  J o i n t study committee has been r e a d i l y adopted i n i n -  d u s t r i e s where the pace and nature of t e c h n o l o g i c a l change has posed severe threats to the s t a b i l i t y of labour-management r e l a t i o n s . 1  The Importance of t h i s approach to manpower a d j u s t ment i s emphasized by the f e d e r a l government.  I t has  pro-  vided means whereby management and labour are encouraged t o enter i n t o t h i s c o n s t r u c t i v e form of  III.  Joint discussion.  CANADIAN MANPOWER POLICY  There are various methods that countries have chosen as approaches to p r o v i d i n g an a c t i v e manpower p o l icy.  For example, guaranteed employment, minimum wages,  maximum hours, p r o v i s i o n f o r advance n o t i c e of l a y - o f f , area redevelopment, and many other techniques are p r e v a l -  •MiJeber, A.R. " V a r i e t y i n Adaptation to Technol 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 t o  deal w i t h any adverse f o r c e s which tend to create an imbalance i n the labour market»  I n June of 1964, the M i n i s -  t e 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 explicit: "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 a l s o 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 h i s p o t e n t i a l i n human terms."  1  This view was f u r t h e r emphasized i n November* 1966 a t an i n t e r n a t i o n a l conference: "An a c t i v e manpower p o l i c y In advanced economies i s based on a growing r e c o g n i t i o n that the improved q u a l i t y of the human f a c t o r i n production 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 t o long-term economic growth than i s the a p p l i c a 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 r a m i f i c a t i o n s i n economic and s o c i a l terms.  Economically, i t  means p r o v i d i n g the worker w i t h 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 , both g e o g r a p h i c a l l y and o c c u p a t i o n a l l y , f o r an ever-changing employment mix  S o c i a l l y , I t means p r o v i d i n g  0  workers "with the opportunity t o meet the challenge of a changing world, t o p r o t e c t them from unnecessary  ^•MacEachen, Hon„ A l l a n J "Government Manpower and Employment P o l i c y i n Canada" Address to F i f t e e n t h Annual Conference a t the I n d u s t r i a l R e l a t i o n s Center, M c G i l l U n i v e r s i t y , M o n t r e a l June 8 1964, p 2 c  0  9  2  Dymond, W R 0  o  9  0p_ C i t 0  D  0 9  p  D  1  0  D  - 12 d i s r u p t i o n s r e s u l t i n g from change, to help them equip themselves w i t h the s k i l l s to p a r t i c i p a t e i n and b e n e f i t 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 i c y 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 c u r r e n t l y employed manpower to  the ever-changing requirements of t e c h n o l o g i c a l and economic change^. The f i r s t major goal of Canadian manpower p o l i c y was implemented under the p r o v i s i o n s of the Technical and 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 Act of I960 and subsequent amendmentSo  P r o v i s i o n i s t h e r e f o r made f o r a s s i s t a n c e i n  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 which are necessary i n the development of e f f e c t i v e manpower resources. The second emphasis i s provided f o r i n the objectives of the Canada Manpower D i v i s i o n s of the f e d e r a l De-  • LoCo L  Clt„  ^Dymond, W<,R "Manpower and Employment: Problems, P o l i c i e s and Programs"» Address to Seminar, Technical and V o c a t i o n a l T r a i n i n g Branch of the Federal Department of Labour, Ottawa, December 1, 1965 s pp. 10=11o 0  - 13 partment of Manpower and Immigration -„  A network of some  1  two hundred manpower c e n t e r s a c r o s s Canada  administer  n a t i o n a l manpower programs i n an attempt t o ensure an e f f i c i e n t l y f u n c t i o n i n g labour  market  0  The d i f f i c u l t and complex problems which major t e c h n o l o g i c a l and economic changes have Imposed  on i n d i v -  i d u a l companies and workers l e d the Department of Labour to e s t a b l i s h a Manpower C o n s u l t a t i v e S e r v i c e i n mid- I 9 6 4 . 2  The Manpower C o n s u l t a t i v e S e r v i c e seeks t o e s t a b l i s h the j o i n t study committee approach t o manpower adjustment p r o blems by encouraging management and l a b o u r In the development of c o n s t r u c t i v e r e s e a r c h programs  0  I t was s e t up  s p e c i f i c a l l y t o encourage j o i n t d i s c u s s i o n and study by management and l a b o u r of t e c h n o l o g i c a l changes a f f e c t i n g employment„  The Manpower C o n s u l t a t i v e S e r v i c e ' s t r o u b l e -  a v e r t i n g approach b r i n g s the p a r t i e s t o g e t h e r  f a r enough  i n advance t o a v o i d the c r i s e s - t y p e n e g o t i a t i o n s of c o l l e c t i v e bargaining^,,  The S e r v i c e c o - o r d i n a t e s manpower ad-  justment cases by p r o v i d i n g f i n a n c i a l and c o n s u l t a t i v e a s s i s t a n c e and by drawing on a i d s Included  i n the T e c h n i c a l  T h e names of these departments have b e e n changed recently. Refer t o Chapter I , Terminology Sections, p, 22 for clarification, x  ^Dymondj, WR<, "Manpower and Employment; Problems, P o l i c i e s and Programs", 0j> C i t , p„ 14 „ 0  0  9  3 F i n a n c i a l Post« The, "New ' S t r i k e - S t o p p e r s ' : Ottawa Team Heads O f f Automation Stoppages". J u l y 16  1966 p„ 24, s  9  and V o c a t i o n a l  Training  provided by the to  provide  ment m a i n t a i n s adjustment that the  this  to  the  The  industry  sum o f  the  to maintain  its  sphere,  of  of  services  The o b j e c t and p u b l i c  all„  The  responsibility  w i t h management  for  is  man-  governmanpower  and l a b o u r  effectively  manpower  1  has been d i r e c t e d  one  i n which the  competitive  structural  capacities  private  government s  force;  and the  and o t h e r  handled  and  at  level„  balanced  labour  the  c a n be m o s t  programs  national  that  principally  youth and a d u l t  able  of  common b e n e f i t  however,  9  lies  or  Act  Canada Manpower D i v i s i o n s „  adjustment  plant  -  Assistance  a harmonization  power p o l i c i e s  14  individuals  in  both  towards  a  in  the  will  the  be  labour  in  more  economy w i l l  position  unemployment  effort  be  interreduced force  utilized^o IVo It ional  PURPOSE OF THE STUDY  has been a r g u e d t h a t  manpower p o l i c y  with  co-ordination  enterprise  of  manpower  the  nat-  adjustment  p programs ment  is  can o n l y likely  be a c h i e v e d  based on t h e  premise  that  the  This  0  0  0  0  9  argu-  perspectives  Dymond, W R "Manpower and Employment: and Programs" 0p° C l t p 13o 0  Policies  by l e g i s l a t i o n  Problems,  0  p ^Dymond, W„R " C o - o r d i n a t i o n o f A c t i v e Manpower 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 Manpower P o l i c y " , , O p . C i t . , p . 12o 0  - 15 of management and labour have become h i g h l y d i v i d e d w i t h the i n c r e a s i n g degree of technology„  For some, the view  suggests that employees are s e l f - c e n t e r e d w i t h l i t t l e concern f o r the needs of the o r g a n i z a t i o n ; and, i n r e t u r n , that managers do not make d e c i s i o n s i n terms of employee s e c u r i t y 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 r i g h t of government " i n t e r f e r e n c e " i n encouraging the j o i n t committee approach. Concern i s focussed on the reduction of management's r i g h t to manage when J o i n t committees are formed.  Both labour  and management may a l s o b e l i e v e that the t r a d i t i o n a l c o l l e c t i v e bargaining methods are being short c i r c u i t e d by the Manpower C o n s u l t a t i v e Service approach . 2  One management  r e p r e s e n t a t i v e expressed t h i s sentiment as f o l l o w s : "To have achieved s e c u r i t y from the inconveniences and disturbances of automation but have l o s t r e a l freedom would hardly represent a worthwhile achievement "3 0  A c o n f l i c t that has a r i s e n with the f u r t h e r development of the Manpower C o n s u l t a t i v e S e r v i c e approach Is the i n t e r r e l a t i o n s h i p between the manpower research recommenda t i o n s and c o l l e c t i v e bargaining,.  One  research chairman  H a l l , NoA "The Impact of Technology on Organiza t i o n s and I n d i v i d u a l s " . Business Q u a r t e r l y , The„ V o l . x  0  31, No. 4, 1966, p 2  P o  59=61.  F i n a n c i a l Post, The.  0p„  Clt„, p.  24„  ^Boarman, P a t r i c k M. "Conclusions and I m p l i c a t i o n s " . The Requirements of Automated Jobs„ p„ 433°  - 16  -  has pointed out that the members of h i s Commission were the same who used to meet at the bargaining t a b l e f o r c o l l e c t i v e bargaining and c a r r i e d on the bargaining complex a t 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 a u t h o r i t y and not the same who meet at the bargaining table,,"  1  In c o n t r a s t , another research  chairman suggests that d i s c u s s i o n s of automation problems should remain separate from broad n e g o t i a t i o n s 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 negotiations » 2  The Manpower C o n s u l t a t i v e Service has been i n opera t i o n long enough to allow f o r an e v a l u a t i o n of i t s methods, p r i n c i p l e s and achievements. was  In December, 1964-  it  suggested that the Service c o n f i d e n t l y expects that  w i t h i n 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 e v a l u a t i o n of many of the f a c e t s as i n d i c a t e d f o l l o w i n g . The i n t e n t of t h i s report w i l l be to analyze, cont r a s t and compare s e l e c t e d cases Of manpower assessment D i o n , Go "The Experience of a J o i n t Research Commi 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 R e l a t i o n s Q u a r t e r l y Review. Vole 21, No. 4, October, 1966, p„ 584. x  Vancouver Sun, The. " F i r s t Automation Contract by loco O i l Workers". February 14, 196?, p. 1. 2  Won  % o u s e , A.Wo I n d u s t r i a l Canada.  "Planning f o r Future Manpower Changes". December, 1964, p. 25.  -• 1 7  -  and planning handled under the auspices of the f e d e r a l government's Manpower C o n s u l t a t i v e Service»  Through such  an e v a l u a t i o n an attempt w i l l be made to f i n d answers t o the aforementioned type of argument and conflict„  I n add-  i t i o n , an attempt w i l l be made t o categorize the a v a i l a b l e approaches t o manpower adjustment such that the j o i n t commi t t e e approach can be put i n proper context andj consequent l y , b r i n g t o l i g h t the type of adjustment program found most amenable to the j o i n t committee approach,,  Specific-  a l l y the purpose of t h i s i n v e s t i g a t i o n i s to examine Canadian adjustment cases i n the l i g h t of e s t a b l i s h e d p r i n c i p l e s to determine: (a)  I f a fundamental p a t t e r n or common r a t i o n a l e has emerged i n experience with the committee approach that warrants the development of standard techniques amenable t o s o l u t i o n of manpower a d j u s t ment problemso  (b)  I f the p r i n c i p l e s enunciated a t i n c e p t i o n of the Manpower Consultative Service have been adhered to and a r e adequate i n the l i g h t of experiences to dateo  (c)  I f the work of the Manpower C o n s u l t a t i v e 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 e f f e c t i n g an a c t i v e manpower policy,, Vo  METHODOLOGY  The Manpower C o n s u l t a t i v e Service functions i n a sphere of operations I n c l u d i n g many approaches to the s o l u t i o n of manpower adjustment problems a s s o c i a t e d with  -  t e c h n o l o g i c a l change  18  -  Most of i t s e f f e c t i s f e l t i n the  domain of labour-management r e l a t i o n s that emerge when major change i s imminent„  I n t h i s regard i t encourages  the j o i n t committee approach t o problem s o l v i n g .  It is  e s s e n t i a l , t h e r e f o r e , that the r o l e of the Manpower Cons 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 p e r t a i n t o worker adjustment w i l l be examined i n Chapter II„  Such an examination w i l l  i n d i c a t e how the j o i n t labour-management committee has emerged as a c r e a t i v e approach t o problems of manpower adjustment.  P a r t i c u l a r aspects of the J o i n t committee  approach w i l l be r e l a t e d I n Chapter I I I and an examination of the experience which attempts a t such an approach have had i n the past w i l l provide a framework w i t h i n which the Manpower Consultative Service f u n c t i o n can be studied and evaluated. In Chapter IV the p r i n c i p l e s , approach and s e l e c t e d cases handled by the Manpower Consultative Service w i l l be delineated.  At t h i s stage the r o l e of the Manpower Con-  s u l t a t i v e Service can be put i n context with the t e c h n i ques used I n e f f e c t i n g manpower adjustment.  The develop-  ment of such a framework and body of m a t e r i a l e s s e n t i a l t o the d i s p o s i t i o n of t h i s study w i l l enable the d e s i r e d e v a l u a t i o n and purposes as r e l a t e d above t o be f u l f i l l e d . Thus, the cases r e l a t e d i n Chapter IV w i l l provide the  -  19  -  data r e q u i s i t e t o 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, examined i n the l i g h t of the framework developed I n Chapters I I and I I I , w i l l provide the m a t e r i a l necessary i n e v a l u a t i n g 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 i n s i g h t i n t o whether or not the Manpower C o n s u l t a t i v e S e r v i c e i s f u l f i l l i n g i t s purported r o l e and i t s responsibilities  I n enhancing an a c t i v e manpower p o l i c y , VIo  SCOPE OF THE REPORT  Although the purposes of t h i s report have been delineated 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 -  c a t i o n of the scope i n which i t i s p o s s i b l e t o seek answers t o these purposes©  This e v a l u a t i o n i s based on the  two years" experience of the Manpower C o n s u l t a t i v e Service and i s l i m i t e d to the extent i n which the r e s u l t s are considered f l n a l i z e d o I n a d d i t i o n , the t e n s e l e c t e d cases r e l a t e d I n Chapter IV a r e mainly e x t r a c t i o n s from a v a i l able w r i t t e n m a t e r i a l and the r e s u l t s may be somewhat l a c k i n g i n complete presentation,, r e p o r t , however  9  I t i s assumed i n t h i s  that the cases are s u f f i c i e n t l y completed  so that emerging trends may be examined w i t h  confidence.  Because t h i s report proposes t o 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 e v a l u a t i o n i s l i m i t e d t o t h e extent I n  20  which the base i s e s t a b l i s h e d ,  A standard framework w i l l  be developed i n Chapters I I , I I I and IV which w i l l concent r a t e mainly on the Canadian i n d u s t r i a l r e l a t i o n s scene. I t i s being assumed that the l i t e r a t u r e which has been r e 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 e v a l u a t i o n seeks to examine the c o m p a t i b i l i t y between the expectations of the Manpower Consultative Serv i c e by labour, management and government and the empiri c a l evidence t h a t has emerged from the Service's experience t o date.  The scope of t h i s examination i s l i m i t e d  to a contrast between a c t u a l outcomes and the planned and d e s i r e d o b j e c t i v e s w i t h i n the framework e s t a b l i s h e d i n t h i s report. VII,  TERMINOLOGY  As semantics abound i n any study d e a l i n g with automation, I t I s important to t h i s report to c l a r i f y the conf u s i o n that e x i s t s between the terms mechanization, automation, cybernation^ t e c h n o l o g i c a l change and i n d u s t r i a l conversion  1 0  -••This terminology has been paraphrased from: Francis, J P "Technological Change, P r o d u c t i v i t y and Employment In Canada ™, and B a r k i n , S, "Manpower Problems and Management i n an Automated Age", Both i n The Require ments of Automated J o b s p„ 38 and p §6 r e s p e c t i v e l y . 0  0  1  0  0  -  Mechanization  21  -  i s p r i m a r i l y a process of i n v e n t i n g  and adapting machinery to perform r a t h e r s p e c i f i c opera t i o n s t r a d i t i o n a l l y c a r r i e d out by human labour,.  Most  commonly mechanization r e f e r s to the t r a n s f e r machine; a method of a u t o m a t i c a l l y coupling or i n t e r l o c k i n g a group of machines Into a s i n g l e l i n e of production,, Automation i s a combination of advanced forms of technology  such as e l e c t r o n i c s and servo-mechanisms that  enable automatic c o n t r o l . The automatic c o n t r o l mechanism introduced the closed-loop feedback i n t o the t r a n s f e r mechanism, thereby making i t p o s s i b l e to create an automatic e l e c t r o n i c a l l y remote-controlled, s e l f - c o n t a i n e d production system.  E r r o r s or d e v i a t i o n s from pre-deter-  mined l e v e l s are a u t o m a t i c a l l y corrected so that the machine continues to f u n c t i o n i n a pre-determined manner. When a computer i s added to the closed-loop  feed-  back system a d u p l i c a t i o n of the human c o g n i t i v e , conceptual and information processes i s achieved.  The com-  puter w i l l digest information and r e d i r e c t i n s t r u c t i o n s to the system producing the u l t i m a t e i n automation.  The  system i s o f t e n coined cybernation r e f e r r i n g to the s y s t ematic process of communication and c o n t r o l 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 w i t h change  - 22 that causes the displacement of human resources and  there-  f o r e requires the p r o v i s i o n of an adjustment procedure. Moreover, " i t i s impossible to i s o l a t e displacements a t t r i b u t a b l e s o l e l y to t e c h n o l o g i c a l change because of the i n t e r r e l a t e d n e s s of a l l f a c t o r s that determine the cause of employment." 1  Therefore, the most f e a s i b l e i n t e r p r e t a t i o n of technol o g i c a l change i s any change i n m a t e r i a l , equipment, methods, o r g a n i z a t i o n or product which a l t e r s the q u a n t i t y or q u a l i t y of labour required per u n i t of r e a l output. Because of the confusion that has a r i s e n over the semantics of the above terms, an expression  c a l l e d indust-  r i a l conversion has received i n c r e a s i n g usage i n recent l i t e r a t u r e d e a l i n g w i t h 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 'technol o g i c a l changes'. They are m o d i f i c a t i o n s which appear as brusque mutations i n the s t r u c t u r e of production provoking i n t e r n a l or e x t e r n a l d i s c o n t i n u i t y i n employment. In p u t t i n g 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 c o n v e r s i o n s o " z  There i s a l s o need f o r c l a r i f i c a t i o n i n regard to the names of f e d e r a l departments r e f e r r e d to i n t h i s r e port.  The Manpower Consultative Service was  •••Beaumont, R„A and H e l f g o t t , R.B. 0  formed i n  Op.  C i t . , p.  R e p o r t of the Commission of I n q u i r y i n t o the E f f e c t s of Mechanization i n the Windsor (P.Q.) P l a n t of Domtar Pulp and Paper, (unpublished paper), 1 9 6 5 , - p. 9 . 2  25.  - 23 196* and functioned under the Department of Labour u n t i l e a r l y 1966.  At t h i s time the Service was t r a n s f e r r e d to  the Department pf C i t i z e n s h i p and Immigration, 1966  I n mid-  the l a t t e r Department's t i t l e was f o r m a l l y changed  to the Department of Manpower and Immigration. Department of Manpower and Immigration  Under the  the N a t i o n a l Em-  ployment Service t i t l e was changed t o Canada Manpower Center.  This report w i l l have occasion to use these  t i t l e s interchangeably w i t h reference t o the Manpower C o n s u l t a t i v e Service by v i r t u e of the period under study and confusion can be eliminated by r e c o g n i t i o n 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 a d d i t i o n , i t w i l l i n d i c a t e how j o i n t study committees have emerged t o face the i n c r e a s i n g challenges of technol o g i c a l change by developing comprehensive plans u t i l i z i n g the v a r i e d techniques of c o l l e c t i v e bargaining i n sUoh a way as t o 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 n e g o t i a t i o n between an employer and a labour union r e presenting h i s employees, conducted with the object of concluding an agreement r e g u l a t i n g the r e l a t i o n s h i p between both the employer and h i s employees and the employer and the u n i o n . 1  I t i s a method devised t o 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 i n t r o d u c t i o n of automation and/or t e c h n o l o g i c a l  C a r r o t h e r s , A.W.R. "The Growth of T h i r d P a r t y 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 Industr i a l R e l a t i o n s : U n i v e r s i t y of B r i t i s h Columbia, I963, p. x  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 s e c u r i t y i n the i n d u s t r i a l concern and r e s u l t s i n a paradox of s u r v i v al.  Automation threatens the worker's job s e c u r i t y by  rendering h i s s k i l l obsolete.  Moreover i t threatens the  power and s e c u r i t y 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 s t r u g g l e 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 c r e a s i n g t e c h n o l o g i c a l 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 r e s u l t s 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 i n v o l v i n g wages have essent-  i a l l y given way to those i n v o l v i n g s e c u r i t y .  Thus methods  of cushioning the adjustment of workers d i s p l a c e d 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 t i o n s aspects of t e c h n o l o g i c a l change are r e c e i v e d . 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, I n t r o ductory Statement". Labour-Management Conference on Economic and Technological Change i n the S i x t i e s , p. 130. Weber, A.R. 0p_ C i t . , p. 207. Ross, A.M. "Conference Perspectives - I n t e r n a t i o n a l I n s i g h t s Into I n d u s t r i a l R e l a t i o n s " . B r i t i s h C o l umbia Labour Management Conference - 1963. p. 31. x  o  - 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 d i f f e r e n t ways by numerous authors.  For i n v e s t i g a t i o n 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 o r non-monetary i n nature.  I n 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 f u r t h e r s p l i t i n t o many sub-issues, some of which are an attempt to provide worker s e c u r i t y while others obviously are not.  I t i s worth men-  t i o n i n g that many of the s e c u r i t y issues have emerged i n the l a s t decade along w i t h the i n c r e a s i n g onrush of techn o l o g i c a l change . 1  S t i l l , i t must be remembered that very  o f t e n management w i l l g l a d l y o f f e r a monetary i n c e n t i v e t o encourage the union away from s e c u r i t y and other demands that i n f r i n g e on what i s b e l i e v e d to be i t s V r i g h t to manage". II.  MONETARY ISSUES  Wages In the post-war p e r i o d 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 dependent on cost of l i v i n g and improvements  i n productivity.  B l o c k , Joseph W, "Problems of C o l l e c t i v e Barg a i n i n g i n a Changing Technology - I t s Impact on Wages, Working Conditions and Fringe B e n e f i t s - Introductory Statement". B r i t i s h Columbia Labour Management Conference - 1963. p. 1 3 1 . x  - 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 i n c r e a s i n g the pace of t e c h n o l o g i c a l implementation,  the basic transformation i n union policy-  was i n s i s t e n c e on sharing the r e s u l t i n g gains w i t h a l l the workers.  The unions a l s o 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 o r changed jobs . 1  Other t r a d i t i o n a l wage issues such as job evaluat i o n plans and i n c e n t i v e systems have f e l t the pressure of changing technology.  Although the Job e v a l u a t i o n system  gained Impetus f o l l o w i n g the war, t e c h n o l o g i c a l changes have introduced many complexities i n t o the system which requires c a r e f u l adjustment i n order t o be u s e f u l . I n deed, a s t r a i g h t a p p l i c a t i o n of f a c t o r s has i n some cases downgraded Jobs, which not only d e f i e s worker expectations but a l s o common sense. Incentive systems have apparently reached a plateau i n terms of prevalence during post-war years.  Under the  pressure of t e c h n o l o g i c a l change, however, there has developed a trend towards the group rather than i n d i v i d u a l i n centives . 2  Some of the i n c e n t i v e schemes have developed  as a d i r e c t defence t o t e c h n o l o g i c a l change and an attempt by the union t o gain a share i n the r e s u l t i n g b e n e f i t s .  1  I b i d . , p. 133.  2  Loc. C i t .  - 28 -  Two of t h e s e — t h e annual Improvement f a c t o r and g a i n 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 s p e c i a l means of combatting p a r t i c u l a r problems.  Spec-  i a l hourly rates f o r d i s p l a c e d 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 i g n i t e d a spark i n a few i n d u s t r i e s i s conversion from the s t r a i g h t wage t o the s a l a r y system.  This i s  p a r t i c u l a r l y amenable t o r e f i n e r y operations where workers are required t o be g e n e r a l i s t s and o f t e n cross J u r i s d i c tional lines.  Consequently, there has been increased  leanings towards the development of a s a l a r i e d r e f i n e r y t e c h n i c i a n t o replace the many wage earners c u r r e n t l y employed. Incentive Systems Two noteworthy innovations that have developed i n labour-management n e g o t i a t i o n s have r e c e n t l y received widespread d i s c u s s i o n 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 f a c t o r , a long-term contract approach that embodies the n o t i o n that a general advance i n p r o d u c t i v i t y deserves a general Increase i n wages.  The other,a gain-  sharing p l a n , i s d i s t i n c t from the annual improvement f a c t o r i n that i t receives impetus from forces generated  -  w i t h i n the o r g a n i z a t i o n .  29  -  Thus, one i s based on f a c t o r s  that operate broadly across the economy; the other i s based on f a c t o r s operating w i t h i n the f i r m . 1  The annual improvement f a c t o r a r i s e s from the des i r e of management t o achieve increased p r o d u c t i v i t y and the d e s i r e of the union t o remain unlnvolved e f f i c i e n c y measures.  d i r e c t l y with  I t can only e x i s t where there i s  above average performance by the f i r m and the i n d u s t r y . That i s , t o e x i s t c o m p e t i t i v e l y the n a t i o n a l p r o d u c t i v i t y l e v e l would have t o be below the f i r m o r industry's productivity level.  A major drawbaok to t h i s approach a r i s e s  i f the n a t i o n a l p r o d u c t i v i t y l e v e l beoomes accepted as a b a s i s from which t o s t a r t n e g o t i a t i o n s . The basis f o r gain-sharing  i n c e n t i v e systems pre-  sumably l i e s i n the d i s t i n c t i o n between general and speci a l improvements i n p r o d u c t i v i t y .  At K a i s e r S t e e l , f o r ex-  ample, wages and f r i n g e b e n e f i t s move In accordance with general movements of other key v a r i a b l e s i n the i n d u s t r y . This approach brings the wage base back i n t o the i n d u s t r y ( i n contrast t o the aforementioned annual improvement factor incentive).  S p e c i a l c o n s i d e r a t i o n must be given t o  the d i s t i n c t i o n between t e c h n o l o g i c a l l y generated gains based on broad economic trends and the gains created by e f f o r t s of employees to use resources more e f f e c t i v e l y .  S h u l t z , G.Po  0p_. C i t . , p. 131.  - 30 D i f f i c u l t i e s can a r i s e even i f meticulous care i s used i n developing t h i s type of p l a n .  I f the i n d u s t r y i s  subject t o s t i f f competition and consequently  restrictive  p r i c e l e v e l s and i f a t e c h n o l o g i c a l break-through develops, "wage gains would not l i k e l y match industry-wide p r o d u c t i v i t y changes, l e a v i n g K a i s e r a d i f f i c u l t problem i n f a c t o r i n g the r e s u l t s of these changes out of i t s wage costs."  1  However, no formula i s able to match completely  a l l the d r a s t i c events of t e c h n o l o g i c a l change.  This  method does o f f e r the advantage of a common need f o r cont i n u a l assessment and review of operations and increases pressure f o r development of c r e a t i v e and c o n s t r u c t i v e approaches t o s o l v i n g new problems as they a r i s e . Fringe B e n e f i t s As w i t h wage increases, the i n t r o d u c t i o n of many new f r i n g e b e n e f i t s and the l i b e r a l i z a t i o n of e x i s t i n g ones, have developed from p r o d u c t i v i t y gains and therefore must be considered a consequence of t e c h n o l o g i c a l change . On the monetary s i d e there are a host of demands considered under t h i s term ( f r i n g e 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.  2  B l o c k , Joseph W.  0p» C i t . , p. 13*.  - 31 unemployment b e n e f i t s , severance pay and buy-out approaches.  The f i n a n c i a l settlements Issue w i l l be expanded  under the next sub-heading. Fringe b e n e f i t s have become a most important f a c t o r i n determining employer c o s t s .  Indeed they are approach-  i n g a l e v e l of concern because of t h e i r immobilizing e f f e c t on the worker; employers may choose to pay premium rates f o r overtime I n 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 degree t o 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  o b l i g a t i o n s , seen as the s o c i a l conscience of f r e e enterp r i s e , and the i n c r e a s i n g requirements of government p o l i c y focusses much a t t e n t i o n on these i s s u e s . About s i x t y per cent of a l l workers under c o l l e c t i v e bargaining agreements are covered by p r i v a t e pension plans .  T h i s p r o v i s i o n of an annuity t o long-service em-  1  ployees when they r e t i r e tends "to i n h i b i t m o b i l i t y w i t h i n the bounds of the f i r m unless ways and means are found to make pensions and other b e n e f i t s portable as between enterprises."  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 s e c u r i t y p r o v i s i o n  x  Loo. C i t .  Dymond, W.R. "Co-ordination of an 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 with N a t i o n a l Manpower P o l i c y " . Op. C i t . , p. 8 . 2  for  -  r e t i r e m e n t ; i t i s a l s o s e e n t o be a n u n n e c e s s a r y  pediment t o the adjustment of  32  portability.  im-  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  N e v e r t h e l e s s , u n i o n s b e n t on p r e s e r v i n g  m e m b e r s h i p numbers a n d turnover, are l i k e l y  companies w i s h i n g t o m i n i m i z e  t o k e e p p e n s i o n schemes p r o m i n e n t  on  the c o l l e c t i v e b a r g a i n i n g agenda. Financial  Guarantees  Where t h e m a g n i t u d e o f d i s p l a c e m e n t t h r e a t e n e d b y t e c h n o l o g i c a l c h a n g e has r e a c h e d m a j o r unions are l i k e l y demnification. group  t o demand e c o n o m i c g u a r a n t e e s a n d / o r i n -  Under a system  of workers  lay-off proportions  of economic guarantees  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 o f t i m e . nification,  Indem-  on t h e o t h e r h a n d , 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 e m p l o y e r sum  a  and  e m p l o y e e t h r o u g h p r o v i s i o n o f a lump  payment . 1  Economic guarantees a r e f e a s i b l e under w h e r e t h e lump sum  conditions  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 a n d a l s o w h e r e management deems i t n e c e s s a r y t o o v e r c o m e 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 o f new and  equipment.  guarantee  lies  I n the f i r s t  methods  case, the s i g n i f i c a n c e of the  i n i t s onus o n 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 .  1  W e b e r , A.B.  0j>.  C i t . , p.  221.  - 33 In the second case, the a n t i c i p a t e d b e n e f i t s that accrue from the i n t r o d u c t i o n of new processes are seen to overcome the expected c o s t s . Because of the s p e c i a l conditions required to evoke t h i s form of award, economic guarantees are normally used i n combination w i t h other f a c t o r s i n an o v e r a l l comprehens i v e program.  K a i s e r S t e e l ' s p l a n , f o r example, was  cited  above as a gain-sharing approach, but one of the basic p r o v i s i o n s of the plan s t i p u l a t e d that no employees s h a l l be l a i d - o f f due to t e c h n o l o g i c a l change.  Workers who  are  d i s p l a c e d 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 p l a n t , and ed to new  jobs as they a r i s e .  dispatch-  The i n i t i a l response to the  plan supports a preconceived n o t i o n , v i z . where i t i s most needed, i t i s i m p r a c t i c a l 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 p r o t e c t i v e p r o v i s i o n s of  the guarantee f o r only three hours."  1  In the Westcoast Longshore i n d u s t r y manpower pract 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  K o s s o r i s , Max. D. "Methods of A d j u s t i n g 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 . 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. x  - 34 t h a t management had to buy chaos.  t h e i r way  out of economic  I n order f o r management to i n t r o d u c e  mechanization  i n terms of a l l o w i n g f o r k - l i f t t r u c k s i n t o s h i p s and  other  more e f f i c i e n t methods of h a n d l i n g cargo, a fund of twenty-nine m i l l i o n d o l l a r s had to be e s t a b l i s h e d to f i n a n c e v a r i o u s programs to a v e r t , o r otherwise the consequences of these changes. made f o r employment and  cushion,  P r o v i s i o n was  income guarantees.  thereby  Under t h i s  p l a n , however, workers were encouraged i n t o e a r l y  retire-  ment thus removing employment p o s i t i o n s i n pace w i t h t e c h n o l o g i c a l change. and if  1963  the wage and  The  r e s u l t was  t h a t "between  employment guarantees  I960  have seldom,  ever, been u s e d . " 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 i n d u s t r y can be c o n t r a s t e d to the " p l e c e - b y - p i e c e " approach t h a t unions may  demand.  Both  approaches can be c r i t i c i z e d as n e g a t i v e i n t h a t they courage bad p r a c t i c e .  en-  Moreover, the p i e c e - b y - p i e c e app-  roach i s an open i n v i t a t i o n to h i g h e r and h i g h e r demands. The  o i l r e f i n i n g i n d u s t r y i s an example where low  labour  c o s t s and the importance of u n i n t e r r u p t e d o p e r a t i o n s l e d to l o o s e l a b o u r p r a c t i c e s and  c o n t i n u a l buy-outs.  Thus i t  i s e s s e n t i a l , from management's p o i n t of view, to ensure that a buy-out i s t e r m i n a l . 2  •'•Weber, A.R. 2  S h u l t z , G.P.  Op_. C i t . , p. 0p_.  Cit.-. p.  223. 134.  - 35 Indemnification through lump sum severance payments Is a most common form of settlement as a means of a d j u s t ment to t e c h n o l o g i c a l change.  Between 1956  and 19&3  t n e  number of these p r o v i s i o n s n e a r l y 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  i n d u s t r y to i n d u s t r y 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 gene r a l agreement, are i n existence.  Normally b e n e f i t s are  determined on the b a s i s of s e n i o r i t y and range from one day t o three weeks' pay f o r each year of employment w i t h a b u i l t - i n celling factor. T h e o r e t i c a l l y severance pay purports to c o n t r i b u t e to the adjustment process i n d i v e r s e ways.  I t may  offer  some r e s t i t u t i o n f o r the l o s s of high property r i g h t s i n vested i n a Job; provide the d i s p l a c e d worker w i t h resources to meet h i s f i n a n c i a l o b l i g a t i o n s while searching f o r new work; and, i t may  i f s u b s t a n t i a l enough, create a  short-term deterrent to the r a p i d i n t r o d u c t i o n of laboursaving technology by management . 2  Increasing doubt i s  being voiced at the usefulness of a plan t h a t pays o f f e n t i r e l y i n money and r e s u l t s most f r e q u e n t l y i n r a p i d K o s s o r i s , Max. D. Op,. C i t . , p„ 224. x  A..R.  2  Weber, A.R.  Op,. C i t . , p. 17,  Op.. C i t . , p.  224.  c i t e d i n Weber,  -  expenditure.  36  -  Instead i n c r e a s i n g p r o v i s i o n s a r e being made  to adapt the severance pay t o a r e t r a i n i n g  requirement  which would f i t the d i s p l a c e d worker f o r other employments . 1  Supplementary unemployment b e n e f i t plans, that i s , plans p r o v i d i n g payments t o l a i d - o f f workers t o supplement n a t i o n a l unemployment insurance, have undergone some r e v i s i o n s due t o t e c h n o l o g i c a l change.  Whereas the plans  were o r i g i n a l l y designed t o provide income p r o t e c t i o n aga i n s t seasonal and c y c l i c a l f l u c t u a t i o n s i n production and employment, many of them have been modified t o meet the requirements of t e c h n o l o g i c a l displacement, and provide an income stream f o r v a r y i n g periods f o l l o w i n g permanent l a y o f f . One variance of t h i s technique i s provided i n the automobile and meat-packing i n d u s t r i e s .  Here the p l a n has  been i n t e g r a t e d i n t o a broader adjustment program that enables the d i s p l a c e d worker t o draw payments before he exercises h i s o p t i o n t o i n t e r p l a n t t r a n s f e r ^ . III.  NON-MONETARY ISSUES  Labour Turnover  •'•Block, Joseph W.  0j>. C i t . , p. 135»  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. 2 2 5 . 2  ^Weber, A.R. 0p_. C i t . . p. 2 2 5 .  - 37 The a t t r i t i o n approach t o labour turnover i s so widely endorsed f o r handling some of the d i s l o c a t i o n s associated w i t h 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 t e s t among personnel managers and union representatives t o d a y ,  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 c o n t r a c t i o n of the labour due t o r e s i g n a t i o n s , deaths and retirement  force  i s approxi-  mately equal t o o r greater than the rate of displacement generated by t e c h n o l o g i c a l 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 a n a l y s i s reduced to n a t u r a l a t t r i t i o n . Where n a t u r a l a t t r i t i o n does not appear t o be e f f e c t i n g the desired turnover the method has been modif i e d t o permit " c o n t r o l l e d " a t t r i t i o n . 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  Under such con-  agreement u s u a l l y s t i p -  u l a t e s a rate of d e c l i n e i n the number of p o s i t i o n s . Unions t o l e r a t e t h i s approach so as t o discourage management i n t e r v e n t i o n i n the n a t u r a l process i n terms of using t a c t i c s t o increase the normal turnover r a t e . Those who a r e cautious about the a t t r i t i o n approach cringe a t the thought of c o n t r o l l e d 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 c o n t r o l l e d rate may be l e a v i n g but management i s forced t o a c e i l i n g rate and p o t e n t i a l d i f f i c u l t y i n the long r u n . 1  The f i n a l turnover approach i s based on a p h i l o s o phy of encouraging the withdrawal of employees from the f i r m or labour market.  "Induced" a t t r i t i o n seeks to b a l -  ance turnover w i t h the r a t e of displacement b a s i c a l l y through p r o v i d i n g i n c e n t i v e s f o r e a r l y retirement. This approach i s most conducive t o wholesale labour d i s p l a c e ment from major t e c h n o l o g i c a l change or plant c l o s u r e s . Consequently, generous e a r l y retirement b e n e f i t s have been o f f e r e d 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 i n d u s t r i e s t o d i s p l a c e d workers who meet s p e c i f i c s e r v i c e and age requirements, u s u a l l y twenty years of s e r v i c e 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 i n c r e a s i n g job o p p o r t u n i t i e s .  However,  i n t e r n a l union problems can subject the union t o severe pressures i n mediating the demands of younger and o l d e r workers.  There a r e a l s o many cases where removal of the  short s e r v i c e employees who have the highest turnover rates and the siphoning o f f of o l d e r workers s t i l l leaves a large residue of p o t e n t i a l unemployment from major d i s -  ••-Crlspo, John. H.Go "Economic and T e c h n o l o g i c a l Change i n the S i x t i e s - P a t t e r n s of Response t o Change D i s c u s s i o n " . Labour-Management Conference on Economic and Technological Change i n the S i x t i e s , p. 153« (  - 39 locations o 1  Working P e r i o d H i s t o r i c a l l y , shorter hours of work have been emphasized as a device t o preserve worker h e a l t h .  Negot-  i a t i o n s i n c o l l e c t i v e agreements, f o r the most p a r t , have l e f t unchanged the forty-hour week w i t h time-and-one-half f o r overtime.  More r e c e n t l y , however, the trade union  movement has given a great deal of a t t e n t i o n t o the matter of reducing the hours of work t o combat unemployment . 2  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 r u l e d out c a 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 o v e r - s i m p l i f i e d t h e i r p o s i t i o n s ; labour says that everybody needs a t h i r t y - f i v e hour week and the a d m i n i s t r a t i o n says that i t i s an o r i g i n a l s i n . Accordingly he suggests, " I n some cases the shorter week i s the s e n s i b l e s o l u t i o n , I n 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, 2  B l o e k , Joseph W,  3ROSS, A . M . .  0p_.  0p_ C i t . . p, 136. o  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 spreading around whatever unemployment or underemployment there may be i n the economy....Reducing hours of work i n no way i s l i k e l y t o increase t o t a l employment." 1  Some unions have s h i f t e d emphasis from shortening the work day t o reducing the work year through a v a r i e t y of measures.  Besides making progress i n the t r a d i t i o n a l  path of i n c r e a s i n g lengths of paid vacations, many ingenious methods have been devised f o r reducing annual hours of work.  Although the formula v a r i e s from i n d u s t r y to  i n d u s t r y the " i n d u s t r i a l s a b b a t i c a l " includes an extended v a c a t i o n of t e n t o f i f t e e n weeks every f i v e years f o r workers who meet the p r e s c r i b e d s e n i o r i t y standards. Another m o d i f i c a t i o n of t h i s plan provides phased r e t i r e ment by extending the v a c a t i o n period as the worker approaches s i x t y - f i v e . A number of o p e r a t i o n a l 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 h e a l t h has disappeared as an argument and nothing sacred can be associated w i t h 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 e x t r a time and  I 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 D i s c u s s i o n " . 0p_. C i t . . pp. 154-155.  - i n -  take home that much more pay. Consequently,  the i s s u e he-  comes one of choosing between income and l e i s u r e and there i s no evident common ground. A f u r t h e r point s t r i k e s a t the heart of the union argument that reduced hours of work w i l l increase job opportunities.  As p r e v i o u s l y i n d i c a t e d , 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 a n t i c i p a t e d job openings do not m a t e r i a l i z e as management becomes determined t o operate w i t h l e s s manpower. Many cases of moonlighting and working overtime have accompanied the acceptance of a shorter work week . 1  Labour M o b i l i t y When l a y - o f f f o r any reason becomes imminent, seni o r i t y issues and procedures f o r e n t e r i n g the labour market become most important.  Included i n t h i s procedure i s  normally some p r o v i s i o n f o r t r a n s f e r t o another company p l a n t ; r e t r a i n i n g f o r placement e i t h e r i n the same p l a n t or a company p l a n t i n another geographical area; o r , p l a c e 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 w i t h varying  success.  Weber, A.R. 0p_. C i t . . p. 221.  -. 42 Where the burden of displacement f a l l s h e a v i l y on few departments w i t h i n a plant o r plants w i t h i n an Indust ry e f f o r t s have been made t o increase the workers* mobili t y by expanding the u n i t of employment o p p o r t u n i t i e s . This may be accomplished through m o d i f i c a t i o n of the seni o r i t y system i n the p l a n t , through developing  formal  channels of access t o new occupational categories o r through establishment  of i n t e r p l a n t t r a n s f e r systems . 1  In the f i r s t case, plant s e n i o r i t y systems establ i s h some arrangement f o r bumping r i g h t s such that a s e n i o r employee d i s p l a c e d from h i s job can claim p r i v i l eges t o a j u n i o r employee's p o s i t i o n . A labour pool i s normally e s t a b l i s h e d f o r those who become d i s p l a c e d from various departments and s e n i o r i t y a l s o p r e v a i l s i n t h i s unit.  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 t o overcome some of the problems associ a t e d w i t h i n t e r p l a n t bumping r i g h t s many unions have sought to ease displaced workers i n t o other  occupational  s e c t o r s , f o r example, through apprenticeship programs, where the number of jobs are r e l a t i v e l y s t a b l e o r increas ing.  I n t h i s manner the worker i s moved i n t o an area of  long-run economic opportunity r a t h e r than passing the d i s  I b i d . , p. 214  - 4-3 placement down the l i n e i n c o n t r a c t i n g employment s i t u a tions. Inadequacies i n t r a n s f e r p r o v i s i o n s w i t h i n a p l a n t have l e d to more pressure f o r i n t e r p l a n t t r a n s f e r u n i t s , e s 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 p a r t , l i m -  i t e d to m u l t i - p l a n t firms or where one union has  repres-  e n t a t i o n f o r a number of u n i t s w i t h i n an o r g a n i z a t i o n . And the nature of t r a n s f e r r i g h t s 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 t r a n s f e r r e d from one p l a n t to another along with t h e i r associated jobs. This " t r a n s f e r of operation" p r i n c i p l e has been successf u l l y implemented i n the automobile i n d u s t r y and many r a i l r o a d and meat-packing o p e r a t i o n s . 1  U n r e s t r i c t e d i n t e r p l a n t 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 s t a b l e operations and normally does not receive union support i n view of the l i k e l i h o o d of c r o s s i n g 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 i n t e g r a t i o n of workers'  -  i+4  -  s e n i o r i t y i n t o a new plant that normally accompany jobpreference and t r a n s f e r - o f - o p e r a t i o n s plans, have been overcome i n some cases by e s t a b l i s h i n g job r i g h t s i n the new plant as of a given date.  In a d d i t i o n , to overcome  the p s y c h o l o g i c a l problems that are known to upset workers i n moving from one l o c a t i o n to another, many e x t r a p r o v i s i o n s are required. I n i t i a l l y , the implementation of a t r a n s f e r program normally involves p r o v i s i o n s f o r r e l o c a t i o n and moving allowances.  Once t r a n s f e r r e d , there i s q u i t e o f t e n  a n e c e s s i t y 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 u n i t 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 t r a n s f e r r e d from.  one  The problems of adapting to t h i s s o r t  of change and the u n c e r t a i n t y attached has lead many mobi l i t y programs to f a i l  miserably . 1  Beyond any s p e c i a l I n t e r p l a n t t r a n s f e r p r o v i s i o n s , however, the labour market i s s t i l l the p r i n c i p a l mechanism f o r a d j u s t i n g to new manpower requirements i n the economy.  Thus, guidance i s o f f e r e d the d i s p l a c e d worker  through occupational r e t r a i n i n g and/or by attempting help him obtain placement with another f i r m .  to  Most of the  experience with such programs has been e x t r a - c o n t r a c t u a l in  nature . 2  2  I b i d . , p.  218.  I b l d . . p.  225.  - 45 E f f o r t s a t d i r e c t 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 f a c t o r s of the d i s p l a c e d worker must n e c e s s a r i l y meet with the geographical c o n d i t i o n s and general economic environment of the new s i t u a t i o n .  Nevertheless, modest  c o n t r i b u t i o n s have been made through c o l l e c t i n g and d i s seminating job information, c o u n s e l l i n g and overt canvassing of other employers.  For the most p a r t , however, i t  has been r e a l i z e d that n a t i o n a l employment s e r v i c e s are b e t t e r equipped t o handle these problems. In recent years r e t r a i n i n g has received increased a t t e n t i o n from unions and management a l i k e .  The workers  most vulnerable t o t e c h n o l o g i c a l displacement u s u a l l y have minimal o r non-transferable s k i l l s and r e t r a i n i n g can promote occupational m o b i l i t y 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 p r o v i s i o n s and have been financed by proceeds from automated production. Wide-ranging success of many of these programs has been f r u s t r a t e d by inadequate v o c a t i o n a l 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 p e r i o d s , i n a b i l i t y of t r a i n e e s , and f i n a n c i a l support problems that a r i s e t o Impede the process.  To be s u c c e s s f u l , considerable resources are r e -  quired and i n t e n s i v e a d m i n i s t r a t i o n provided over pro-  I b i d . . p. 2 2 6 ,  - 46 longed periods of time.  With the a v a i l a b i l i t y of govern-  ment programs of r e 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 o f t e n r e f r a i n from p r i v a t e e f f o r t s t o 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 a d j u s t i n g t o techn o l o g i c a l changeo  Advance planning encompasses the n o t i o n  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 c r i s e s developing.  Within such  a framework advance n o t i c e can l e a d t o c o n s t r u c t i v e a c t i o n and r e s u l t i n the development of a comprehensive a d j u s t ment p l a n . A.R. Weber p o i n t s out t h a t : "The p o s s i b l e b e n e f i t s of advance n o t i c e of l a r g e s c a l e displacement associated with t e c h n o l o g i c a l change a r e so obvious i t i s s u r p r i s i n g to note that they r a r e l y have been incorporated Into labourmanagement agreements i n the United S t a t e s . The t y p i c a l advance n o t i c e 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 l a y - o f f and a p p l i e s t o a l l eases of retrenchment, without any attempt to vary the period of n o t i c e with respect to the cause of the displacement." There i s an inherent reluctance by management t o agree to advance n o t i c e founded mainly on the f e a r s of c r e a t i n g harmful e f f e c t s on worker morale and p r o d u c t i v i t y .  Argu-  ments have a l s o been voiced against advance n o t i c e on the  ""•Ibid., p. 207.  - 4? grounds that implementation periods vary widely and undue costs would be imposed on management i n guaranteeing employment during t h i s p e r i o d .  Moreover, i t i s suggested  that the union may take steps t o Impede the desired changes or that mass turnover may r e s u l t w i t h the l o s s of key men to other employers. A v a i l a b l e evidence has shown that the b e n e f i t s of advance n o t i c e f a r outweigh the costs of granting i t ,  A  study noted by Weber i n d i c a t e s that i n t h i r t y - t w o firms where extended advance n o t i c e of displacement was provided, " p r o d u c t i v i t y t y p i c a l l y was maintained a t previous l e v e l s , e s p e c i a l l y where the n o t i c e was l i n k e d to the development of a remedial program,"  1  I n a d d i t i o n , the  p r o v i s i o n of s u b s t a n t i a l severance pay ensured key employees stayed on w i t h the f i r m . Although f a r from prevalent i n bargaining agreements, advance n o t i c e clauses are r e c e i v i n g more a t t e n t i o n In recent years. pressured  Corporations are being i n c r e a s i n g l y  t o develop a s o c i a l conscience and show more  concern f o r the I n d i v i d u a l . Unions are adding t o t h i s pressure by advocating that costs associated with technol o g i c a l change should properly include the costs of advance n o t i c e p r o v i s i o n s , and are t a k i n g t h i s a t t i t u d e t o the bargaining t a b l e .  I b i d . , p. 208.  Therefore, with some r e l a x a t i o n on  - 48 the p a r t  o f management a n d i n c r e a s e d  n o t i c e from unions, there contracts  demands f o r p r i o r  has been an i n c r e a s e d  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 t i o n , many e m p l o y e r s h a v e p r o v i d e d  gaining.  I n add-  extended n o t i c e of  l a r g e - s c a l e displacement without any c o n t r a c t u a l a t i o n but s t i l l  number o f  oblig-  w i t h i n t h e framework o f c o l l e c t i v e  bar-  I n some c a s e s t h i s p r o v i s i o n h a s b e e n made w h e r e  a complex s e t o f 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 i n order the  to administer  contract."  properly  the relevant  procedures sections of  1  Obviously,  t o be v e r y  e f f e c t i v e , advance n o t i c e of  c h a n g e m u s t be c o m p l e m e n t e d w i t h some f o r m o f p r i o r p l a n ning  o r research,  proportions.  One a u t h o r h a s l i s t e d  power p l a n n i n g flows and  e s p e c i a l l y where t h e change i s o f m a j o r t h e e l e m e n t s o f man-  a p p r o a c h a s i n c l u d i n g : ( I ) s t u d y o f manpower  i n c l u d i n g a l l data pertinent t o job c h a r a c t e r i s t i c s  trends;  (2)  development of f u t u r e f o r e c a s t e d  requirements both near and longer  t e r m ; (3)  manpower  design  of p o l -  i c i e s and programs t o cope w i t h p r o b l e m s and t o t a k e a d vantage o f 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  arrange-  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  through  o to implementation .  I b i d . . p. 209. S h u l t z , G.P.  0p_. C i t . , p .  137.  - 49 In f o r e c a s t i n g of manpower requirements  some authors  suggest that manpower planning be c a r r i e d on as part of the corporate budget, thus being complementary to sales and production f o r e c a s t s . This process i s obviously not very s c i e n t i f i c .  Forecasts must be c o n t i n u a l l y updated  f o r a t t r i t i o n , turnover, retirements and the l i k e .  En-  vironmental f a c t o r s are a l s o bound to vary the t a r g e t . The advance planning approach has the great advantage of p r o v i d i n g f l e x i b i l i t y .  Because i t can approach  major manpower adjustment problems w e l l i n advance of any c r i s e s i t can research and solve many of the complex i s s ues a s s o c i a t e d w i t h s h i f t s I n q u a n t i t y , q u a l i t y and l o c a t i o n of employment.  I t i s not c o i n c i d e n t a l then that  t h i s approach has been widely adopted i n those I n d u s t r i e s where the pace and nature of t e c h n o l o g i c a l change has posed a severe threat t o the s t a b i l i t y of labour-management relations.. Where advance n o t i c e and p r i o r planning have been undertaken there i s normally some p r o v i s i o n f o r union p a r t i c i p a t i o n I n j o i n t c o n s u l t a t i o n . Here i s where the widely-heralded c o l l e c t i v e bargaining i n n o v a t i o n , the j o i n t study committee, has emerged to provide an Informal l i n e of communication during the p e r i o d of t e c h n o l o g i c a l conversion.  From these J o i n t planning groups have emerged  some c r e a t i v e and c o n s t r u c t i v e s o l u t i o n s t o many perplexi n g t e c h n o l o g i c a l problems.  - 50 -• Programs of J o i n t research can develop e i t h e r with or without a t h i r d party decision-making f u n c t i o n .  Such  t r i p a r t i t e committees can f u r t h e r he p u b l i c or p r i v a t e as manpower p o l i c y becomes more a part of n a t i o n a l concern. IV. In review the  9  THE DESIRED MIX  the response of c o l l e c t i v e b a r g a i n i n g to  t h r e a t s imposed by the r a p i d pace of t e c h n o l o g i c a l  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 r e s -  ponse as developing i n three stages dependent upon the immediate p r e s s u r e s . During the f i r s t stage the unions 1  seek agreements which p r o h i b i t l a y - o f f of e x i s t i n g personnel and/or p r o h i b i t reduction i n wage rates or a t l e a s t freeze the manning schedule during the l i f e of the contract.  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 a t e x i s t i n g l e v e l s of earnings. Gomplementary Issues to create such conditions are expounded i n terms of shorter hours, longer vacations, and the  l i k e , which share the a v a i l a b l e 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 contained i n issues such as supplementary unemployment bene-  Barbash, Jack. "The Impact of Technology on Labour-Management R e l a t i o n s " . A d j u s t i n g to T e c h n o l o g i c a l Change. Eds. Somers, G.G., Cushman, E.L. and Weinberg, N. New York: Harper and Row, P u b l i s h e r s , 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 i n t e r a r e a transfers.  Consequently, stage one s t r a t e g y i s no longer  tenable and the union demands contract changes to widen the s e n i o r i t y u n i t and provide f o r r e l o c a t i o n allowances and t r a i n i n g .  I n most cases t h i s approach requires ad-  vance n o t i c e i n order that planning can be undertaken.  If  the problem becomes elaborate enough then p r o v i s i o n f o r j o i n t research and p r i v a t e or p u b l i c t h i r d p a r t y a s s i s t ance i s advocated. The t h i r d s t a g e — s u g g e s t e d as most s t r i k i n g i n conc e p t i o n — i s based on the p r i n c i p l e that employees have vested r i g h t s i n t h e i r jobs; that i n t r o d u c t i o n of laboursaving devices or other changes which d i s p l a c e 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 enunc i a t e d i n c o l l e c t i v e b a r g a i n i n g by demands f o r severance pay, d i s m i s s a l pay, t e r m i n a l payments or more r e c e n t l y by separation pay p r o v i s i o n s that augment the supplementary unemployment b e n e f i t s .  This stage often c o - e x i s t s with  stage two. This s e r i e s of defences i s interwoven w i t h management s t r i v i n g f o r the r i g h t to manage and the union, i n  - 52 t u r n , attempting to preserve i t s s i z e and maintain i t s I n s t i t u t i o n by i n c o r p o r a t i n g newly automated Jobs w i t h i n 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 t o 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 f a c t o r s .  There i s no f i x e d  p a t t e r n i n the development of adjustment programs.  The  impact of technology cannot be viewed separate from work p r a c t i c e s , I n d u s t r i a l c o n f l i c t , gain s h a r i n g , cost reducing 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 p e r t i n e n t economic and environmental f a c t o r s .  S t i l l , development of a comprehensive  plan i s more often shaped by the pace and degree i n which t e c h n o l o g i c a l change produces displacement.  In a market  economy the competitive pressures are harsh and u n s e n t i mental and corporations w i l l be p r i m a r i l y concerned with t h e i r own s u r v i v a l . I f bad p r a c t i c e s have crept i n t o an o r g a n i z a t i o n o r i f major changes present formidable problems I t appears that management most often w i l l choose the buy-out approach.  Thus management w i l l pay out a lump sum In order  to obtain the r i g h t to r e s t r u c t u r e the o r g a n i z a t i o n as they d e s i r e .  This management method has been designated  as a r a d i c a l approach to the extent that i t seeks to overt u r n the p r e v a i l i n g s t r u c t u r e of work r u l e s and " l o c a l  - 53 p r a c t i c e " clauses i n one concentrated a t t a c k .  On the  other hand, there has been an increased degree of e x p e r i mentation of l a t e , and many attempts have been made t o t i e a v a r i e t y of techniques i n t o a comprehensive p l a n .  Approp-  r i a t e l y termed the "Fabian" element, t h i s management p o l i c y seeks t o achieve the same long-run o b j e c t i v e s but chooses a gradual s t r a t e g y based on c o l l a b o r a t i o n rather than a frontal attack . 1  Many authors view the accomplishments pf c o l l e c t i v e bargaining i n f a c i n g the challenge of i n c r e a s i n g technology as q u i t e 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 s t a t u r e can be espoused i n the f o l l owing quote: "What i s l o o s e l y c a l l e d c o l l e c t i v e bargaining i s i n p r a c t i c e a h i g h l y v a r i a b l e process, shaped by the p a r t i e s and by the conditions they face. The s i z e of bargaining groups, the subjects covered i n cont r a c t s , the degree of f o r m a l i t y i n the process, the use made of outside advisors as p a r t i s a n s o r n e u t r a l s , the a t t i t u d e s towards the process, the number of s t r i k e s - a l l these vary g r e a t l y from one i n d u s t r y , union and company t o another. V a r i a t i o n s a l s o take plaoe i n i n d i v i d u a l cases with the passage of time and w i t h changes i n problems, a t t i t u d e s , eoonomic events and other factors."" 1  I b i d , p. 50. The P u b l i c I n t e r e s t I n N a t i o n a l Labour P o l l c y Committee f o r Economic Development, 1961, c i t e d i n S i e g e l , A.J. "The Nature and Character of C o l l e c t i v e Bargaining I t s Challenges, T r i a l s , Accomplishments and F a i l u r e s - I n troductory Statement". B r i t i s h Columbia Labour Management Conference - 1963. p. 52. x  0  2  B  - 54 Thus A.J. S i e g e l 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 adaptabi l i t y and views recent accomplishments of the process as i n d i c a t i v e of c o n t r a c t u a l i n t e r p r e t a t i o n s which have been c o n s i s t e n t with the economic framework of the free-enterp r i s e system.  Indeed, he believes t h a t :  'V.. .a serious threat to the e f f e c t i v e operation of t h i s p r i v a t e rule-making process has been the i n c r e a s i n g l y r e s t r i c t i v e and d e t a i l e d government r e g u l a t i o n of the process and the substance of bargaining.... The costs a r i s e because people without an economic stake or a d i r e c t knowledge of the e n t e r p r i s e or i n d u s t r y make basic d e c i s i o n s a f f e c t i n g the l i v e s and welfare of those dependent on the e n t e r p r i s e or i n d u s t r y . n l  W i l l i a m Simkin, D i r e c t o r of the Federal  Mediation  and C o n c i l i a t i o n S e r v i c e , has stated t h a t : " I t i s q u i t e 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 cont i n u i n g c o n s u l t a t i o n and communication through the l i f e of the labour agreement....The more formal aspects of these new devices, labour management committees w i t h 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 vari a t i o n s , are s t i l l i n t h e i r i n f a n c y . " 2  Ross supports the view that c o l l e c t i v e  bargaining  has adjusted q u i t e w e l l to the c o n f l i c t of job e f f i c i e n c y versus s e c u r i t y and i s developing p r i n c i p l e s t o support i t s claim of being dynamic r a t h e r than s t a t i c i n nature.  I b i d . , pp. 50 and 53. ^Simkin, W i l l i a m . Address before F i f t h C o n s t i t u t i o n a l Convention, A.F.L.-C.I.O. New York, November 15, 1963, " D a i l y Proceedings", pp. 11-12.  - 55 However, he p o i n t s to the f a c t 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 s o p h i s 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  there are fewer s t r i k e s .  This i s not to say  Indeed, i n Canada 1 9 6 6 produced  a record l o s s time i n s t r i k e s .  Apparently, however,  unions have found p o l i t i c a l a c t i o n to be a more powerful a i d 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 i n d i c a t e s that they no longer condone i r r e s p o n s i b l e a c t s that are a detriment to s o c i e t y as a whole, but are i n v o l v i n g themselves i n the s u p e r v i s i o n of i n d u s t r i a l r e l a t i o n s p o l i c i e s and V,  programs.  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 p l a c i n g too great an onus on what i s , a t b e s t , a l i m i t e d f u n c t i o n a l e n t i t y .  "While  i t can be employed to determine the ground-rules according to which d e c l i n i n g job o p p o r t u n i t i e s are to be shared i n p a r t i c u l a r s e t t i n g s , i t cannot create new o p p o r t u n i t i e s nor more than a l l e v i a t e the d i s t r e s s 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 -  u t i o n of impediments to progress i n s o l v i n g the  labour  ills. 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 e f f e c t i v e n e s s of the c o l l e c t i v e bargaining process i n c o r r e c t i n g 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 f o r c e ; (2) the h i g h l y segmented and competitive p a t t e r n of c o l l e c t i v e bargaining i n which the overwhelming m a j o r i t y of agreements are between union l o c a l s and i n d i v i d u a l firms or p l a n t s ; and (3) "the s t i l l prevalent and widespread s u s p i c i o n and h o s t i l i t y which many employers f e e l towards u n i o n s . 2  These issues are viewed as s t r i k i n g at the  center  of any c o n s t r u c t i v e 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 m a j o r i t y 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 u n i t of economic opport-  u n i t y i s , f o r the most p a r t , too small to be conducive to  ±  ence".  C r i s p o , John H.G. 0j3. G i t . , p. 40.  "Summary Report on the Confer-  Jamieson, S.M, "Economic and Technological Change i n the S i x t i e s - Patterns of Response to Change, Discussi o n " . Labour-Management Conference on Economic and Techn o l o g i c a l Change i n the S i x t i e s , p. 143. 2  - 57 c r e a t i v e adjustment programs.  And the s u s p i c i o n manage-  ment f e e l s towards unions w i l l l i k e l y preclude advance n o t i c e 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 s u b s t a n t i a l backing In the above type of l i m i t a t i o n .  C l e a r l y , any f i r m , f r e e  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 cognizant of economic c r i t e r i a and o f t e n to the detriment of the r a n k - a n d - f i l e worker.  But even more obvious i s the f a c t  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 s t a t e d :  "In today's world, i t i s not p o s s i b l e to introduce t e c h n o l o g i c a l changes which meet the economic obj e c t i v e s of the e n t e r p r i s e without regard to prov i d i n g 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, employees on an i n d i v i d u a l b a s i s and through t h e i r unions w i l l r e s i s t changes o v e r t l y or s u b t l y , . . . . A d d i t i o n a l l y p u b l i c opinion has come to expect large e n t e r p r i s e s , i n p a r t i c u l a r , to act w i t h a sense of " s o c i a l conscience'. I f they do not do so, a l a c k of conscience may l e a d to l o s s of business i n the market place or l e a d to undesirable r e a c t i o n s from t h e i r point of view from organized labour and g o v e r n m e n t s . . F a l l i n g an i n d i v i d u a l e n t e r p r i s e ' 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 h i s most productive c o n t r i b u t i o n to the economy, n a t i o n a l manpower p o l i c y must then provide f o r the worker's adjustment to new employment i n  - 58 line with market."  his  abilities  in  the  outside  labour  1  To w h a t  degree  the  government  objectives  remains  at  management  present  vacuum;  it  short-run  must  economic  their of  the  (to  long  formidable  r u n because  questioned ample, It  is  right  al  right control  to  efficiency?  of  to  future.  these But  in  a  even  social  consequences  in  the the  to  Is  the  of  union  creativeness  chapter)  the  nature  of  have  the  workers  of  into  view.  in to  reduce  the  overtime?  the  can  For  Is  which  is  organization-  hours worked Is  be  ex-  retirement?  through a procedure  to  en-  plans,  recommendations  point  joint  pro-  weaken i n  jobs and removing  right  spurning  Many o f  and tend t o  individual  then put  a powerful  and  by  picture  worker adjustment  Individual  induce  rosy  enthusiasts  following  attrition  it  the  challenge.  effect  guaranteeing  a week when w o r k e r s members  the  from a socio-eoonomic  to  tantamount  of  do c h i d e  problems  many o f  it  social  construetiveness  facing  established  in addition,  long-run  bargaining to  be r e v i e w e d  countered  the  n o t make d e c i s i o n s  the arguments  in  in  preserve  alternatives.  claims  process  committees grams  does  by c o l l e c t i v e  general  society  be v e r i f i e d  consider  However, painted  to  and  it  right  be g r a n t e d p r o v i s i o n s  in for  more  Dymond, W„R. " C o - o r d i n a t i o n o f A c t i v e Manpower 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 Manpower P o l i c y " . O p . C i t . , p p . 2 a n d 4. x  - 59 b o u n t i f u l than those of smaller unions?  This type of  issue i s o f t e n the center of academic debate. The complexities that have emerged i n the c o l l e c t i v e bargaining process have expanded over time.  In deal-  i n g w i t h worker displacement to t e c h n o l o g i c a l change, the problem reduces to one of h e l p i n g the i n d i v i d u a l . a t i o n s and other leadership groups can e x i s t and economic and t e c h n o l o g i c a l changes.  Corporsurvive  The I n d i v i d u a l i s  much more a v i c t i m of the consequences.  However, i n a t t -  empting to provide worker a s s i s t a n c e , I n d i v i d u a l freedom and r e s p o n s i b i l i t y must not be completely  overlooked  in  reaching f o r comfort and s e c u r i t y . How  e f f e c t i v e a response i s created to meet the  manpower adjustment challenge depends u l t i m a t e l y on the general economic c l i m a t e , e s p e c i a l l y on the s t a t e of the labour market, and on the good f a i t h and s o p h i s t i c a t i o n 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 p u b l i c opinion to intervene more forcefully.  The two issues must be complementary and  supplementary,  A d e c i s i o n must be made on what can be  done by the unions and management and what must be done by the government. As p r e v i o u s l y mentioned, the three obvious r e q u i s i t e s must be a n a t i o n a l manpower p o l i c y devoted to f u l l employment, s t a b l e p r i c e s and f r e e 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 i n t e g r a t e d on a n a t i o n a l b a s i s and such that the union movement must adapt to e s t a b l i s h e d economic o b j e c t i v e s .  However, even then i t f o l l o w s 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 j u s t too b i g f o r labour and management to h a n d l e . 1  In t h i s regard there have been numerous representations the government to solve the i l l s of the market.  to  In essen-  ce, however, these representations, In a d d i t i o n to the previous r e q u i s i t e s mentioned, c a l l f o r government a i d In c r e a t i n g more f l e x i b i l i t y In the labour market. Consensus has i n d i c a t e d that major programs of r e 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, t r a n s f e r r i n g workers w i t h income provided during unemployment, and p o s s i b l y developing  of i n t e g r a t e d portable s o c i a l sec-  u r i t y systems are best handled on the n a t i o n a l l e v e l .  The  c o s t s and b e n e f i t s 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 r e q u i r e d to t r e a t the o v e r a l l environment by making i t more flexible.  p.  74.  ^See Chapter I I I , United States Experience S e c t i o n ,  - 6lIn sum, t h e r e f o r e , a v i a b l e c o l l e c t i v e bargaining approach t o worker adjustment requires a s o p h i s t i c a t e d t r i p a r t i t e r a t i o n a l e : one i n which management provides advance n o t i c e of impending changes; continuing J o i n t unionmanagement c o n s u l t a t i o n s focussed on s o l v i n g the problems; b a r r i e r s t o worker m o b i l i t y a r e 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 preceding a n a l y s i s of c o l l e c t i v e bargaining are a l s o a p p l i c able t o J o i n t study committees„  This i s not t o 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 a d m i n i s t r a t i v e instrument. Indeed, European experience w i t h J o i n t study committees has produced achievement to which a l l reprovers of North American p o l i c i e s emphatically refer . 1  I n the United States and Canada there have  been many noteworthy examples that a r e o f t e n paraded a t conferences and i n speeches throughout North Amerioa, What I s the reason f o r t h i s d i f f e r e n c e i n achievement?  Why have the most h i g h l y developed regions i n the  world been l a x , r e l u c t a n t o r otherwise unable t o o b t a i n the achievements of some sectors of Europe?  I t w i l l be u s e f u l  to examine the experiences of each region i n an attempt t o determine the p o t e n t i a l i t i e s of t h i s a l l - i m p o r t a n t c o l l e c t ive bargaining a p p a r a t u s — t h e j o i n t study committee.  See Chapter I I I , European Experience S e c t i o n , 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 commit t e e s w i l l r e f e r t o 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 t o f a c i l i t a t e the development of methods of a d j u s t ment t o t e c h n o l o g i c a l change.  T r i p a r t i t e bodies  normally  add a n e u t r a l chairman t o the labour management committee f o r 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 comprehens i v e research and planning i s r e q u i r e d , v i z , a study of the k i n d not amenable t o the bargaining t a b l e .  Indeed,  the complexities of many i n d u s t r i a l problems demand studious c o - o r d i n a t i o n of the m u l t i - f a c e t e d c o l l e c t i v e barg a i n i n g techniques. In non-unionized  f i r m s there may be some attempts  a t j o i n t committees w i t h worker r e p r e s e n t a t i v e s . 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  However, presented  i n the previous chapter create l i t t l e optimism f o r the e f f e c t i v e n e s s of such plans.  A few corporations may e x i s t  where the leaders possess strong s o c i a l consciences, but under the t h r e a t of i n c r e a s i n g competitive pressures, surv i v a l of the f i r m must r i g h t l y p r e v a i l .  And i f management  - 63 i s r e l u c t a n t t o provide advance n o t i c e i n u n i o n i z e d organi z a t i o n s (which i s e s s e n t i a l t o e f f e c t i v e j o i n t study), there i s even l e s s reason t o b e l i e v e d i f f e r e n t of nonunionized f i r m s . The p a r t i c u l a r committee of concern i s one developed by labour and management a t the e n t e r p r i s e l e v e l t o solve an imminent worker displacement problem.  Broader  labour-management-goyernment committees a t the l o c a l , regi o n a l and n a t i o n a l l e v e l are developed t o deal w i t h problems s i m i l a r t o 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 w i t h 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 a t the enterprise l e v e l .  A c c o r d i n g l y , I t w i l l be u s e f u l t o look  at the development and experience of j o i n t committees t o date; t o expose some of the successes and f a i l u r e s ; and i n v e s t i g a t e some of the reasons f o r them  0  The r e s u l t s of  such an i n v e s t i g a t i o n should provide a framework o r set of g u i d i n g p r i n c i p l e s w i t h i n which the case presentations of the  next chapter can be examined. II.  JOINT STUDY COMMITTEE APPROACH  J o i n t study committees a r e e s s e n t i a l l y a mature o r modern outgrowth of t r a d i t i o n a l labour-management co-opera t 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 a t i o n of information between the p a r t i e s .  ratific-  I n t r o d u c t i o n of  t e c h n o l o g i c a l change at the work place has a f f e c t e d the r i g h t s and r e s p o n s i b i l i t i e s of both p a r t i e s and  ratific-  a t i o n i s l i k e l y too complex f o r the vagaries of the barg a i n i n g t a b l e alone.  J o i n t research, i n v e s t i g a t i o n ,  assessment and planning combined w i t h the  flexibility  a v a i l a b l e outside of c o l l e c t i v e bargaining can lead to an o b j e c t i v e a n a l y s i s of the problems and the concomitant s e t t i n g of long-range goals that w i l l be of common benefit. 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 p u b l i c bodies i n the above context i s g e n e r a l l y an ex-ante mechanism; i t seeks to provide the information t r a n s f e r before c o l l e c t i v e bargaining n e g o t i a t i o n s which could r e s u l t i n a strike.  This i s to be contrasted w i t h the voluntary  a r b i t r a t i o n board, an ex-post device f o r d i s p o s i n g of c o l l e c t i v e 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-negoti a t i o n bargaining w i t h complete f l e x i b i l i t y aided by the t e c h n i c a l and mediatory s e r v i c e s of a n e u t r a l t h i r d p a r t y . 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 r e solve the c o n f l i c t ; that i s , l e s s l i k e l y to c o n s t r u c t i v e l y  - 65  -  shape the f u t u r e course of n e g o t i a t i o n s .  The study commi-  t t e e r e s t s on the assumption that "time, expertise and d e t a i l e d examination are a l l required to deal w i t h problems of unusual d i f f i c u l t y and that n e g o t i a t i o n s and  the  q u a l i t y of settlements w i l l both be helped g r e a t l y 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 f u r t h e r i n g p r e - n e g o t i a t i o n 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 p u b l i c committees.  On the other hand, there has  been enough evidence to suggest that voluntary  not  trllater-  a l l s m w i l l work on a l a r g e enough s c a l e to gain wide acceptance.  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 h e a v i l y 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 c a r e f u l study and p a t i e n t  d i s c u s s i o n by the mediatory s k i l l s of the n e u t r a l can duce c o n s t r u c t i v e s o l u t i o n s to vexing problems.  pro-  Exper-  ience has shown, however, that s o l u t i o n s to the complex problems of t e c h n o l o g i c a l change require the mutual consent and commitment of both p a r t i e s and, i n the long run,  H i l d e b r a n d , 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 J o u r n a l . J u l y , I96I, p. 658. x  2  I b l d o . p.  660.  - 66 to be s u c c e s s f u l , a b i l a t e r a l approach i s b e t t e r i n order to l e t them hammer out t h e i r own s o l u t i o n s . For example, as Dr. Dymond suggests, "The development of j o i n t research, as a method f o r a r r i v i n g a t c o l l e c t i v e bargaining s o l u t i o n s to the job s e c u r i t y issues posed by t e c h n o l o g i c a l change, u s u a l l y has not come e a s i l y t o the p a r t i e s as a matter of l o g i c a l persuasion. I t has o f t e n a r i s e n out of one o r other of the f o l l o w i n g cond i t i o n s . F i r s t , the p a r t i e s have t r i e d j u s t about everything e l s e , I n c l u d i n g a long and d i s a s t r o u s s t r i k e , and have more-or-less 'backed i n t o ' j o i n t research as a s o l u t i o n . Second, there has been a major threat t o 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 w i t h i n a l l three of the aforementioned  frameworks.  The underlying assumption of labour-management cooperation i n terms of a j o i n t study committee i s the predominance of f r e e 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 b a s i s when simple c o l l e c t i v e bargaining suffices.  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 e n v i r onment i s c r e a t i n g a much heavier burden on t r a d i t i o n a l  ^•Dymond, W.R. "The Role of C o 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 R e l a t i o n s - I n t r o 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 I s a spreading be-  l i e f i n some areas that "the bargaining system i s producing many economically unsound settlements t h a t are now a r e a l t h r e a t t o the s t a b i l i t y of the country i n the d i f f i cult s i x t i e s . "  1  Indeed i t has been suggested that c o l l -  e c t i v e bargaining i s today f a c i n g a c r i s i s and t h a t only through such " c r e a t i v e " 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 s u r v i v e and be effective. The r e a l i s t i c l e v e l of labour-management co-opera t i o n i s seen t o l i e i n a continuum, somewhere between information sharing and c o - d e t e r m i n a t i o n . 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 h e l p i n g t o f o s t e r co-operative a t t itudes towards problems, i n c l u d i n g those which a r i s e a t the bargaining t a b l e .  I n c o n t r a s t , co-determination, a  form of co-operation found mainly In sectors of Europe, provides f o r p a r t i c i p a t i o n of unions i n the d e c i s i o n making process of the o r g a n i z a t i o n . J o i n t study committees f a l l w i t h i n t h i s continuum t o the extent that they seek agreement as t h e i r o b j e c t i v e ; although not a r e quirement on a l l i s s u e s . A c c o r d i n g l y , there i s a need to  ^Hildebrand, G.H.  0p_. C i t . . p. 656.  Wood, 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 U n i v e r s i t y : Kingston, Ontario, 1964, p. 3» 2  - 68 determine which areas a r e amenable t o co-operation and which are b e t t e r maintained as healthy and c o n s t r u c t i v e d i f f e r e n c e s f o r c o l l e c t i v e bargaining, o r otherwise f o r inevitable conflict, III,  EUROPEAN EXPERIENCE  1  Although European h i s t o r y of labour-management cooperation dates back t o the nineteenth century, the more s i g n i f i c a n t and w i d e l y known developments have come about since the end of the Second World War, The s u c c e s s f u l r e covery of European countries i n post-war years has been l a r g e l y a t t r i b u t e d t o a high degree of labour-management co-operation.  Indeed, the European i n d u s t r i a l r e l a t i o n s  scene has been under constant s c r u t i n y i n recent years by countries attempting t o 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 u n d e r l y i n g assumptions  In I t s approach t o I n d u s t r i a l r e -  l a t i o n s : the f i r s t i s a predominance of f r e e c o l l e c t i v e bargaining as a method f o r r e s o l v i n g c o n f l i c t ; the second i s mutual i n t e r e s t as an area of common b e n e f i t to both parties.  Therefore, In a p p r a i s i n g the European scene the  North American observer should only attempt t o e x t r a c t  Montague, J,T. "Economic and S o c i a l Characteri s t i c s of European Labour-Management Co-operation", (unpublished paper), 1961.  - 69  -  c h a r a c t e r i s t i c s of mutual i n t e r e s t that can be f i t t e d i n t o the l a t t e r s i n d u s t r i a l r e l a t i o n s system. 1  In general, j o i n t committees are accepted as the r u l e r a t h e r than the exception i n European i n d u s t r y .  This  i s i n sharp contrast to Canadian and United States i n d u s t r i a l p o l i c y . B a s i c a l l y the d i f f e r e n c e a r i s e s 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. North American system r e l i e s fundamentally  The  on the c o l l e c t -  i v e bargaining agreement and uses l e g i s l a t i o n only f o r e s t a b l i s h i n g 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 d i f f e r e n c e i s that the f o c a l point of bargaining i s r a i s e d t o the i n d u s t r y or area l e v e l r a t h e r than the p l a n t 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 i n t e g r a t e d and a l l encompassing labour-management network that i s f a r more s o p h i s t i c a t e d 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 J o i n t committees are favoured both by the p a r t i e s and by government.  In general these committees  have l i m i t e d representation a t the p l a n t 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 conditions.  Broad issues of c o n f l i c t between labour and  - 70 management are maintained a t 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 c o n t r o l byc o n s u l t a t i o n that most n o t i c e appears to have been taken of the European approach. However, t h i s a r i s e s out of a need f o r defence against the power of employers which i n Canada i s i n c r e a s i n g l y provided by labour r e l a t i o n s l e g islation,,  C l e a r l y 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 suggested as an area In which j o i n t labour-management e f f o r t s could do most t o advance the competitive  conditions of the  i n d i v i d u a l -enterprise. One fundamental d i f f e r e n c e between the North Ameri c a n and European system that i s of major concern to t h i s report a r i s e s i n the high degree of voluntary  negotiation.  In the European system i t has been recognized  that manage-  ment changes, i n t r o d u c t i o n of t e c h n o l o g i c a l change and other f a c t o r s of concern t o the employees are f r e e l y communicated.  Thus a works c o u n c i l or committee i s con-  s u l t e d or i s provided w i t h f r e e representation t o management on issues regarding t e c h n o l o g i c a l change.  The over-  r i d i n g f a c t remains, however, that European I n d u s t r i a l r e l a t i o n s i s e s t a b l i s h e d w i t h i n a l e g a l network that i s non-existent  i n Canada.  Sweden, f o r example, i s c h a r a c t e r i z e d 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: " R a t i o n a l , c e n t r a l i s e d , 'pyramidal' s t r u c t u r e of both trade unions and employers' o r g a n i s a t i o n s , 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 nego t i a t i o n , a number of ' h o s t i l e ' a c t s that are forbidden, the treatment of disputes that may endanger the p u b l i c i n t e r e s t , and the procedure to be followed i n l a y i n g o f f and d i s m i s s i n g workers,,,,A permanent body (the Labour Market Committee) f o r the d i s c u s s i o n 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 s u i t a b l e to North American I n d u s t r i a l r e l a t i o n s Is not e n t i r e l y c l e a r and i s necessari l y beyond the scope of t h i s r e p o r t .  S u f f i c e i t here to  say that European and North American i n d u s t r i a l r e l a t i o n s have c l e a r l y emerged i n t o d i f f e r e n t labour-management frameworks and f u r t h e r study i s required to e s t a b l i s h any conclusions amenable to adjustment processes i n Canada, IV,  UNITED STATES EXPERIENCE  United States experience w i t h j o i n t study committees i s somewhat piecemeal as was  i n d i c a t e d i n the  previous  chapter d e a l i n g w i t h 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 t h a t have emerged over the past decade have been subjected to severe s c r u t i n y and almost monotonous exposition.  However, these plans do hold great promise f o r the  Cooper, Jack, I n d u s t r i a l R e l a t i o n s : Sweden Shows the Way, Fabian Research Series 235. London: Devonport Press L t d , (T,U,)„ 19°3» PP» 28-29,  - 72 f u t u r e of the committee approach t o worker adjustment and they perhaps gain l e a s t p r a i s e from those who t r y t o compare the d i s t i n c t l y d i f f e r e n t bargaining process of Europe w i t h the United States.  Indeed, some authors have sugg-  ested that the committee a p p r o a c h — c a l l e d c r e a t i v e barg a i n i n g — I s the only v i a b l e method of c o l l e c t i v e bargaining 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 d i s f a v o u r and unimaginative a s s o c i a t i o n that s o c i e t y 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 d i f f e r e n t than the United S t a t e s , the conclusions of t h e i r experience can be u s e f u l l y i n v e s t i g a t e d w i t h attendant caution.  Obviously  there i s a need f o r o b j e c t i v e a p p r a i s a l 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 -  v e s t i g a t i o n and adoption of some form of these f l e x i b l e s o l u t i o n s t o problems emerging out of Canadian worker d i s placement.  Many of these cases have r e s u l t e d 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 r e l a t i o n s h i p s taken apart and r e b u i l t .  And even i f some of the s o l u t i o n s  adopted were unsuccessful, the important l e s s o n of the  McLaughlln, B..P. See Labor Law J o u r n a l . 1964, p. 518. x  August,  - 73 exercise I s the w i l l i n g n e s s t o experiment through cons t r u c t i v e negotiation,, The environmental conditions of the times have been mentioned as i n f l u e n c i n g the type of program found most appealing ,, 1  The f i v e plans most o f t e n applauded—Armour  and Co., American Motors, Basic S t e e l , Westcoast Longshore and K a i s e r S t e e l , and t h e i r attendant u n i o n s — a l l developed w i t h i n twenty-five months of each other.  There-  f o r e , 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 r e t r a i n e d and r e l o c a t e d i f other jobs a r e a v a i l a b l e , severance payments w i l l be acceptable i f workers are  not unemployed too long and d i s t r e s s e d areas w i l l be  redeveloped i f there are not too many. The plans t h a t have emerged from j o i n t study commit t e e s i n the United States can change the bargaining process and/or e f f e c t a change i n the bargaining I n s t i t u t i o n , , Each plan changes the past bargaining context to some degree „ For example, Armour and Co. and the Westcoast Longshore plans merely removed the impediments from bargaining that had created untenable and sometimes explosive cond i t i o n s , whereas Basic S t e e l changed the atmosphere of Montague, J T "Recent American Developments and Experiments In Labour-Management R e l a t i o n s " . Economic Council of Canada, N a t i o n a l Conference on Labour-Management R e l a t i o n s , Ottawa, November 9~10, 1964, p. 11. x  o  0  - 74 n e g o t i a t i o n s completely by i n t r o d u c i n g continuous consultation. Armour and Co. undertook a j o i n t study plan so prodigious i n i t s scope that i t s very s i z e l e d to i t s eventual  downfall.  The company set up a fund and attempted to  r e t r a i n and r e l o c a t e a l l the d i s p l a c e d workers from closed plants.  The company closed twenty p l a n t s , opened e i g h t ,  and cut i t s f o r c e of production workers i n h a l f 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 s o r t n e c e s s a r i l y favour government a i d . The type or pace of t e c h n o l o g i c a l change can a f f e c t the plan s t r u c t u r e .  Por example, the American Motors case  Involved c o n t i n u a l i n t r o d u c t i o n of new methods and reducing devices.  cost-  The r e s u l t i n g plan reduced worker r e -  s i s t a n c e by Introducing a gain-sharing p l a n .  On the  other  hand, the Basic S t e e l and Westcoast Longshore i n d u s t r i e s are c h a r a c t e r i s t i c of e p i s o d i c 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 i m p l i c a t i o n s of change  are l e s s e a s i l y forecast and healthy bargaining processes are required to f e r r e t out a l t e r n a t e s and develop s o l u t i o n s to the problems .The Basic S t e e l i n d u s t r y has had a long h i s t o r y of labour-management co-operation and w i t h the  flexibility  they e x h i b i t e d i n approaching t h e i r problems were able to  - 75 e s t a b l i s h complex c o l l e c t i v e agreements t o mutual s a t i s f a c t i o n o I n c o n t r a s t , the Westcoast Longshore industryhas had a long h i s t o r y of b i t t e r r i v a l r y , but had reached the common p o s i t i o n of acknowledging the heed f o r updating of methods.  As a r e s u l t a huge fund was e s t a b l i s h e d — a  buy-out a p p r o a c h — t o enable the union to protect t h e i r workers i n exchange f o r management's r i g h t to introduce changes. The use of a t h i r d p a r t y was f a r from consistent In these cases.  An u n i n v i t e d t h i r d party was never i n -  cluded and i n the K a i s e r p l a n , where mediation was d e s i r ed, the p a r t i e s 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 p a r t i c i p a t i o n , ,  Such mediators, where  used, were normally men of extensive background who were t r u s t e d by both sides t o 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 t o the deorease i n commitment that may r e s u l t from the i n t e r e s t e d 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 t o reach e f f e c t i v e , l a s t i n g s o l u t i o n s . The success of the plans i s a l s o a t t r i b u t e d to a degree to the type of i n d i v i d u a l s i n v o l v e d .  Thus the  p e r s o n a l i t i e s and determination of some of the leaders was seen t o have had considerable e f f e c t on the development of  I b i d . , p. 52.  - 76 a successful plan.  I n a d d i t i o n , 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 o r pressure on each side t o a r r i v e a t a s o l u t i o n was questioned.  The f a c t I s , from an a n a l y t i c a l  point of view, the p a r t i e s take a problem out of the pressures of the bargaining t a b l e but then develop a procedure t o reintroduce i t back i n t o the same type of pressures.  The e s s e n t i a l element i s a b e l i e f that a l l problems  of the k i n d found untenable In bargaining should be r e moved, r e s t r u c t u r e d and reintroduced; the f r e e c o l l e c t i v e bargaining approach i s enhanced due t o a eommon i n t e r e s t vested i n the new approach. I t i s c l e a r l y Impossible t o completely i n v e s t i g a t e a l l the r a m i f i c a t i o n s of these plans i n t h i s r e p o r t .  Con-  c l u s i o n s drawn from these and other plans are included In a summary framework presented a t 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 t o cover another s i t u a t i o n .  Conditions are j u s t too v a r i a b l e .  However, from the above type of d i s c u s s i o n i t can be seen that United States experience has developed some noteworthy examples of s o p h i s t i c a t i o n 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 c o n s t r u c t i v e l y .  - 77  V.  -  CANADIAN EXPERIENCE  For the most p a r t , 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 R e l a t i o n s observed that "there i s an urgent n e c e s s i t y f o r greater co-operation between employer and employed,,"  195©'s developments  the l a t e  1  From the  1920*s  to  i n labour-management co-oper-  a t i o n were p r i m a r i l y a t the plant l e v e l .  The main con-  c l u s i o n that can be drawn from the various Canadian experiments i n labour-management co-operation over the years i s that they have been sporadic, that they have not been c a r r i e d out on a broad f r o n t and that they have had l i t t l e o v e r a l l c o - o r d i n a t i o n or sense of purpose . 2  In essence, the strong beginning of labour-management co-operation began as a war e f f o r t against a background of war production needs and a s p i r i t of p a t r i o t i s m . 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 e s t a b l i s h i n g the I n d u s t r i a l Prod u c t i o n Co-operation Board.  F o l l o w i n g the war t h i s work  was t r a n s f e r r e d to the Labour-Management Co-operation Serv i c e of the Department of Labour. A t about the same time  C i t e d i n Wood, W.D. Wood, W.D.  :  0j>. C i t . , p. 10.  Op.. C i t . , p. 38.  - 78 i n the United S t a t e s , 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 d e v e l oped, each of which has s t r e s s e d a d i f f e r e n t o b j e c t i v e f o r co-operation. war e f f o r t .  During the e a r l y period emphasis was on the In the period f o l l o w i n g the war the emphasis  changed to the urgency of producing to meet post-war shortages and t o r e - e s t a b l i s h f o r e i g n markets. The t h i r d phase dates from e a r l y 1955 when a broader but more d i f f u s e s e t of o b j e c t i v e s were formulated.  Committees were seen to be  of value i n d i s c u s s i n g a wide v a r i e t y of subjects i n addi t i o n t o or i n place of production, such as s a f e t y , housekeeping and other areas of mutual i n t e r e s t to the p a r t i e s which would increase harmony i n the work p l a c e . 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 . the  "This i s p a r t l y  r e s u l t of t h e i r narrow terms of reference which pre-  clude them from d i s c u s s i n g subjects w i t h i n the area of c o l l e c t i v e bargaining and thus from coming to g r i p s w i t h some of the major problems a t the plant l e v e l . "  1  By 1964  the  number of committees increased from 300 a t the end of  the  war to more than 1,800.  During the same p e r i o d , how-  ever, the number of workers represented only increased  I b i d . . p. 39.  - 79 = from ing  300,000 t o 500,000.  This trend I s seen t o be r e s u l t -  i n more committees being e s t a b l i s h e d 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 t o forming j o i n t committees was through the use of f i e l d men t r a i n e d i n the r a t i o n a l e of the Labour-Management Co-operation S e r v i c e .  The paraphernalia of  the f i e l d men comprised a package deal s e t t i n g out the o b j e c t i v e s and the e s s e n t i a l o r g a n i z a t i o n a l c h a r a c t e r i s t i c s of the committees.  The promotional m a t e r i a l s issued  by the branch included a monthly b u l l e t i n , "Team Work i n Industry", monthly posters, and a s e r i e s of d i s c u s s i o n sheets c a l l e d "Let's Discuss".  These m a t e r i a l s are pro-  vided i n an attempt t o create i n t e r e s t i n j o i n t committees i n i n d u s t r y and i n general have received favourable r e marks from i n d u s t r y and unions. Although t h i s I n v e s t i g a t i o n i s by no means attempt i n g t o evaluate the r o l e of the Labour-Management Cooperation S e r v i c e , i t may be u s e f u l t o discuss a few b a s i c 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 o b j e c t i v e or purpose; they have come t o be accepted as supplementing c o l l e c t i v e bargaining, not r e p l a c i n g i t ; and they must f i t i n with the confines I b i d . . p. 16  -  of government l e g i s l a t i o n .  80  -  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 a v a i l a b l e o b j e c t i v e was provided f o r labour and management i n t h e i r j o i n t committees.  They took p l a c e , however, at a time when  management-union r e l a t i o n s were j u s t beginning or not f a r advanced.  This r e s u l t e d i n j o i n t committees being advoc-  ated outside of the main p a t t e r n 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 v e h i c l e i n most p l a n t s f o r labour-management communication. By the time the Labour-Management Co-operation Serv i c e got i n t o operation, c o l l e c t i v e bargaining was a granted r i g h t and unions were making considerable progress i n developing c o l l e c t i v e bargaining r e l a t i o n s h i p s .  Con-  sequently, during the post-war decade, w i t h the l o s s of a c l e a r l y defined o b j e c t i v e and w i t h an a v a i l a b l e 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 d i s c u s s i n g anything outside the f i e l d of c o l l e c t i v e bargaining.  1  l b i d . . , p. 3 5 .  This r a t i o n a l e  -  8 1•  -  grew out of the fundamental concept of p r o v i d i n g an organi z e d and r e g u l a r channel of communication between labour and management apart from the e s t a b l i s h e d channels.  bargaining  Here again the major problem l i e s i n the l a c k  of any c l e a r l y defined o b j e c t i v e f o r the p a r t i e s t o pursue. Throughout the a d m i n i s t r a t i v e , p u b l i c i t y and personnel phases of the operation the problem has been that of a l a c k of an explainable  philosophy.  F i n a l l y , the main problem f a c i n g the Labour-Management Go-operation Service has been the d i f f i c u l t y of developing n a t i o n a l campaigns or n a t i o n a l support f o r t h e i r work.  Labour l e g i s l a t i o n i n Canada i s designed t o  f a c i l i t a t e labour and management i n f i n d i n g s o l u t i o n s t o t h e i r own problems.  In a d d i t i o n , promotion of labour-  management co-operation  has been a c t i v e l y c a r r i e d 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 i m p l i c a t i o n but by means of a c t i v e p a r t i c i p a t i o n . N a t i o n a l support f o r the Service under these circumstances has not r e a l l y been practical. In the l a t e f i f t i e s and e a r l y s i x t i e s a renewed i n t e r e s t emerged i n labour-management co-operation,  grow-  ing out of a d e t e r i o r a t i o n of the economic s i t u a t i o n i n 1956-57  solved.  and an i n c r e a s i n g awareness of new problems t o be Most of the emphasis of t h i s concern, however,  was developed a t the n a t i o n a l and r e g i o n a l l e v e l s .  Suffice  i t i n t h i s report t o say that the new p r o v i s i o n s , most  - 82 notably through the Economic Council of Canada, introduce "a mechanism f o r J o i n t 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 purpose to co-operation at lower l e v e l s of the economy."  x  The d i s c u s s i o n i n previous sections has i n d i c a t e d the i n c r e a s i n g number of forward-looking c r e a t i v e c o l l e c t ive agreements which have focussed on the s o l u t i o n s to manpower adjustment problems which t e c h n o l o g i c a l change poses.  In Canada the government has added the problems  a s s o c i a t e d with t e c h n o l o g i c a l 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-operation.  Thus they have become concerned with the c o l l e c t -  ive bargaining process not only to the extent that negoti a t i o n s continue on u n t i l settlement, but more r e c e n t l y 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 bargaining. In t h i s regard, "The Department of Labour, through i t s Economics and Research Branch, has undertaken a very considerable research program since 1957 on the manpower i m p l i c a t i o n s of t e c h n o l o g i c a l change....This r e search has been a s s i s t e d 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  -  p a r t i e s [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 b r i n g them together on a cons 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 t a b l e , as w e l l as to encourage more basio research by the p a r t i e s , by governments and by u n i v e r s i t i e s . " 1  In a d d i t i o n , the Department of Labour has held a number of r e g i o n a l labour-management conferences on j o i n t c o n s u l t a t i v e committees.  The N a t i o n a l P r o d u c t i v i t y Coun-  c i l a l s o held h i g h - l e v e l 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 s e v e r a l h i g h - l e v e l 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 encouragement by government f o r labour and management to f i n d t h e i r own s o l u t i o n s to new and emerging problems, rather than to create the need f o r government i n t e r v e n t i o n . This i s the stream of events u l t i m a t e l y leading up to the establishment  by the f e d e r a l Department of Labour  of the Manpower C o n s u l t a t i v e Service i n mid-1964.  It  would appear that the Canadian government has found both  -•-Dymond, W.R. "The Manpower C o n s u l t a t i v e Service of the Canadian Department of Labour". Talk to the Union Research Conference, Queen's U n i v e r s i t y , 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 o b j e c t i v e f o r labour-management co-opera t i 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 s e c t i o n i s to show.the h i s t o r y of the Canadian i n d u s t r i a l ; scene from which the Manpower C o n s u l t a t i v e Service has emerged.  F u l f i l l i n g t h i s purpose  should e s t a b l i s h the background f o r an analysis: of government sponsored j o i n t study committees to be presented i n the next chapter. The e s s e n t i a l p o i n t s to c a r r y 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 l a b our-management co-operation, and the e s s e n t i a l characteri s t i c s of s u c c e s s f u l j o i n t study committees i n general. VI.  SUMMARY AND CONCLUSIONS  The j o i n t study committee approach to s o l v i n g problems 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 r e l a t i o n s scene as being the most v i a b l e 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 i d e a l s of f r e e c o l l e c t i v e bargaining and f r e e e n t e r p r i s e .  However, t h i s  approach i s s t i l l In i t s Infancy i n many respects and r e q u i r e s s p e c i a l precautions to ensure i t s success. I t a l s o requires a mature and s o p h i s t i c a t e d labour-management r e lationship.  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 p a r t y . T h i s chapter has i n v e s t i g a t e d 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 w i t h an  a n a l y s i s of the Manpower C o n s u l t a t i v e S e r v i c e approach i t w i l l be u s e f u l to summarize the many r a m i f i c a t i o n s of t h i s p l a n n i n g technique t h a t have emerged from past  experience.  Although  i t has  the f o l l o w i n g l i s t may  be incomplete,  n e v e r t h e l e s s summarized most of the c o n c l u s i o n s drawn from the works of many a u t h o r s . 1  1.  Committee P a r t i c i p a n t s (a)  Study committees must have f i r m support of top o f f i c i a l s of l a b o u r and management.  (b)  A l l others below top o f f i c i a l s should be encouraged and convinced t h a t the approach w i l l work.  (c)  A p p a r e n t l y the q u e s t i o n of who should serve on the committees w i l l have t o be decided to f i t the s i t u a t i o n . European experience suggests they be a s i d e from b a r g a i n i n g . Ameri c a n s t u d i e s , f o r the most p a r t , suggest p r o blems must be s t u d i e d and r e c e i v e commitment from those i n v o l v e d a t the b a r g a i n i n g t a b l e .  ^Healy, James J . , Ed. Creative C o l l e c t i v e Bargaini n g , Meeting Today's Challenges to Labour-Management R e l a tions. Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , I n c . , 1 9 6 5 . H i l d e b r a n d , G.H. 0p_. C i t . K i l l i n g s w o r t h , C h a r l e s C. "Co-operative Approaches to Problems of T e c h n o l o g i c a l Change". A d j u s t i n g to Technol o g i c a l Change. Montague, J.T. "Recent American Developments and Experiments i n Labour-Management R e l a t i o n s " . Op_. C i t . Wood, W.D. Op. C i t .  - 86 A recent Canadian case suggests committees should not include r e g u l a r n e g o t i a t o r s . 1  (d)  How personnel are organized i n t o a j o i n t committee i s not v i t a l ; f i n d the form best s u i t e d to cond i t i o n s , resources and t a s k s .  (e)  There a r e many s i t u a t i o n s where n e u t r a l s may be h e l p f u l . However, the e f f e c t i v e n e s s of t h i r d p a r t i e s w i l l be determined by the progress made by the other two p a 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 t o r e present the p u b l i c i n t e r e s t .  2.  A t t i t u d e s of P a r t i c i p a n t s (a)  Continuous c o n s u l t a t i o n requires that day-to-day contact be a determined e f f o r t towards good r e lations.  (b)  E s s e n t i a l l y , b i l a t e r a l study committees r e q u i r e a w i l l i n g n e s s to co-operate, and a r e c o g n i t i o n that there are mutual b e n e f i t s t o be gained from so doing. There i s an i n c r e a s i n g need to approach problems w i t h a view t o reaching agreement; determining what i s r i g h t , not who i s r i g h t .  (c)  Technological change o f t e n creates strong pressures f o r the m o d i f i c a t i o n of e x i s t i n g labourmanagement r e l a t i o n s . C r e a t i v e bargaining must be recognized as being based on democratic a t t itudes by both labour and management. I t i s n e i t h e r c o l l u s i o n nor s o c i a l reform.  (d)  A t t i t u d e s of leaders i n committees a r e of utmost Importance; they must be courageous and respons i b l e ; they must s u b s t i t u t e r a t i o n a l i t y f o r power i n r e c o g n i z i n g mutual i n t e r e s t s ; and they must e x h i b i t determination and w i l l i n g n e s s t o overcome impasses.  (e)  I f the p l a n i s one that n e c e s s a r i l y Involves cooperation from lower echelons then maximum e f f o r t  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, Quebec 0_p_. C i t . , p.  1965)".  585.  - 87 i s required to keep them informed and to educate them on the plan so that any u n s a t i s f a c t o r y a t t itudes are removed; co-operation can he created b y c o n t i n u a l information exchange and communication. Ground Rules f o r Committees A fundamental assumption must be that technol o g i c a l change Involves human d i s l o c a t i o n , and attendant p r o v i s i o n s f o r adjustment must be i n cluded as one of i t s c o s t s . Moreover, increased p r o d u c t i v i t y 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 r e i n t r o d u c t i p n Into the normal c o l l e c t i v e bargaining channels. They should be e s t a b l i s h e d 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 c o n d i t i o n f o r c o - o p e r a t i o n — a n d consequently s a t i s f a c t o r y j o i n t c o m m i t t e e s — i s s e c u r i t y f o r both labour and management; f o r labour, s e c u r i t y t h a t co-operation w i l l not r e 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, s e c u r i t y that co-operation w i l l not i n v o l v e undue r e s t r i c t i o n s on the e n t e r p r i s e system or infringement on management r i g h t s . The atmosphere should be c r e a t i v e and construct i v e and l e a d to f r e e enchange of ideas and proposals; i n e a r l y stages especlallyj, f a c t f i n d i n g should j u s t lead to recommendations. A w e l l defined set of o b j e c t i v e s or s p e c i f i c goals should be formulated to remove any possi b l e s u s p i c i o n 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 r i d i c u l o u s to consider. J o i n t formulation of recommenda t i o n s may lead to u l t i m a t e agreement but comp l e t e proposal should be viewed beforehand such that review Is made p o s s i b l e . P r o v i s i o n f o r f l e x i b i l i t y should be made i n v o l v i n g continuous c o n s u l t a t i o n without deadl i n e s , and sub-committees f o r f a c t - f i n d i n g to r e 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 . 9  -  88  -  (g)  P u b l i c i t y should be omitted i n e a r l y stages to prevent adverse pressure on the group from unwarranted expectations and harrassment from o u t s i d e r s . However, i f program involves comp l e t e co-operation from rank-and-file then they must be kept w e l l informed of developments.  (h)  M o d i f i c a t i o n s of United States plans to Canadian s i t u a t i o n s would n e c e s s a r i l y require changes to cope w i t h d i f f e r e n c e s i n i n d u s t r y s i z e , the h i s t o r y of labour-management r e l a t i o n s h i p , and i n labour law. Use of Neutrals  (a)  The mediatory s k i l l s of n e u t r a l s are seen as a way out of an impasse created by low accommodation of the p a r t i e s . But t h i r d - p a r t y d e c i s i o n making does not remove c o n f l i c t and the . p a r t i e s can remain f r u s t r a t e d . The a t t i t u d e s of the p a r t i e s can only improve i f they work t o gether i n c o n s t r u c t i v e l y a t t a c k i n g problems and hammering out agreements.  (b)  A t h i r d party can a l s o provide t e c h n i c a l a i d i n such forms as f u r n i s h i n g new ideas, new approaches, f a c t - f i n d i n g , s o r t i n g out and i d e n t i f y i n g p e r t i n e n t data, and f u r t h e r helping to promote the continuation of j o i n t study by mediating and a d v i s i n g when the p a r t i e s become stalemated.  (c)  A n e u t r a l party may be necessary to represent the i n t e r e s t s of the p u b l i c ; require the p a r t i e s to research deeper c e r t a i n aspects of a problem; and, i n the f i n a l a n a l y s i s , act as a "facesaver" 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 e x p l a i n .  (d)  A n e u t r a l 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 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 p a r t i e s request; and, the w i l l i n g n e s s to back out when the time i s r i g h t to put more onus on the p a r t i e s . 9  (e)  The r o l e of the government as a n e u t r a l Is seen to be more than moral suasion before dispute; i t Is becoming a s e r v i c e 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  B a s i c Conditions f o r Success (a) _ Forward planning increases the chance of success and continuous c o n s u l t a t i o n r e s u l t s i n more c r e a t i v e and c o n s t r u c t i v e development of a l t e r n a t i v e s . Research s t a f f s on both sides can be of considerable advantage i n p r o v i d i n g t h i s continuous c o n s u l t a t i o n and planning. ;  (b)  Study groups should not be an o u t l e t f o r sweeping issues under the rug. Success i s meaningless where f a c t s have a l r e a d y been developed and r e s o l u t i o n n e c e s s a r i l y 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 l a c k of knowledge about mutual goals and problems. 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 t o 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 s i t u a t i o n s and not t r i e d because they worked f o r others.  (f)  A b a s i c requirement l i e s i n a favourable n a t i o n a l climate f o r s o l v i n g problems, one In which government 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 cont i n u i n g government o b j e c t i v e , and unless'there are appropriate p u b l i c p o l i c i e s to ease the impact 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 s o c i e t y . Economic c o u n c i l s on n a t i o n a l and r e g i o n a l l e v e l s , communication of f a c t s and p o l i c i e s down t o 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 understanding on a l l l e v e l s are some of the mechanisms r e q u i r e d . (The Manpower Consultative Service has been provided as a mechanism t o f a c i l i t a t e the p l a n t l e v e l need).  -  90  -  In sum, the f i n d i n g s of many authors who have a n a l yzed United States contracts and plans conclude that there Is s u f f i c i e n t proof to assume that c r e a t i v e bargaining w i l l s u c c e s s f u l l y meet the challenge of changing conditions and i t s emergent problems. The primary r e q u 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 i n t e r e s t s 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, c r e a t i v e bargaining with i t s use of J o i n t study committees i s the most obvious a l t e r n a t e to conventional p r a c t i c e and one that i s most compatible w i t h the volunta r y system.  With the knowledge t h a t f r e e c o l l e c t i v e bar-  g a i n i n g and the r i g h t to s t r i k e i s a v a i l a b l e , the J o i n t study committee approach a c t s as a c a t h a r t i c i n f l u e n c e to ensure that peaceful and r a t i o n a l means have f i r s t been exhausted before the l e s s d e s i r a b l e methods are Invoked i n attempting to gain settlement.  CHAPTER IV MANPOWER ADJUSTMENT THROUGH GOVERNMENT SPONSORED JOINT STUDY COMMITTEES I.  INTRODUCTION  The Manpower C o n s u l t a t i v e Service has been i n s t r u mental i n the development of j o i n t study committees e s t a b l i s h e d to solve the problems a s s o c i a t e d with technol o g i c a l change i n many enterprises across Canada.  Recog-  n i 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 d e a l i n g w i t h 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 w i t h i n t r o d u c t i o n of t e c h n o l o g i c a l change, the n a t u r a l progression to a r r i v i n g a t answers to the purposes of t h i s report l i e s i n analyz i n g these cases to determine i f they are compatible w i t h the framework as hereinbefore  presented.  Before such a case a n a l y s i s can be of value, however, i t i s necessary to understand the sphere i n which the Manpower C o n s u l t a t i v e Service operates.  Therefore,  t h i s chapter proposes to present the r a t i o n a l e of an a c t ive n a t i o n a l manpower p o l i c y w i t h i n which the Manpower C o n s u l t a t i v e Service f u n c t i o n s ; s t a t e the p r i n c i p l e s under which the Service operates;  i n d i c a t e the method of approach  used by the S e r v i c e ; and f i n a l l y , present s e l e c t e d cases that are s u f f i c i e n t l y completed to permit examination.  -  II.  92 -  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 o u t l i n e d and t h i s p o l i c y can be r e c a l l e d from comments stated e a r l i e r by Labour M i n i s t e r MacEachen and Dr. Dymond . 1  This p o l i c y Is f u r t h e r 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 t o the c o n t r i b u t i o n 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 effects.... Assuming f u l l employment can be maintained, the challenge i s t o keep a country's labour force abreast of the needs of the day In terms of I t s education and t r a i n i n g . . . . t h e r e I s need f o r more a l t e r n a t i v e s i n the sehool system, the need f o r s p e c i a l i z e d programmes t o deal w i t h the problems of p a r t i c u l a r groups a t the adult l e v e l , the need f o r proper v o c a t i o n a l c o u n s e l l i n g s e r v i c e s , and the need f o r a r e v i t a l i z e d p u b l i c employment s e r v i c e . Above a l l there w i l l probably have t o be a c e n t r a l i z e d manpower agency f o r p o l i c y coo r d i n a t i o n and a d m i n i s t r a t i o n . These are some of the e s s e n t i a l ingredients of what the O.E.C.D. has termed 'an a c t i v e manpower p o l i c y ' . " ^ In I965 a t the B r i t i s h Columbia Conference he developed t h i s concept f u r t h e r by s t a t i n g that beyond f u l l employment, "...we require an a c t i v e labour market p o l i c y which employs a f u l l range of educational and  p.  See Chapter I , Canadian Manpower P o l i c y S e c t i o n ,  10.  C r i s p o John H.G. Op. Cit.<, p. 51. 2  ence".  9  "Summary Report on the Confer-  - 93 t r a i n i n g measures, m o b i l i t y i n c e n t i v e s and r e l a t e d devices to complement and supplement the i n t e r a c t i o n of supply and demand wherever that i s necessary 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 s e v e r a l years now by the Organization f o r Economic Co-operation and Development, the growing appeal of t h i s concept [ a c t i v e labour market p o l i c y ] i n Canada i s t y p i f i e d by the establishment of a Department of Manpower and Immigrat1on0000  An a c t i v e 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 m o b i l i t y - 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 a v a i l a b l e t o 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 necessary, t o r e l o c a t e themselves and t h e i r f a m i l i e s . . . . Among the most e s s e n t i a l of these [ a n c i l l a r y serv i c e s ] would be adequate labour market research, information and employee c o u n s e l l i n g s e r v i c e s . Without these and other f a c i l i t i e s , appropriate data would be l a c k i n g both f o r those a d m i n i s t e r i n g manpower programmes and those seeking to take advantage of them. 112  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  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 D i s c u s s i o n " . Op_„ C i t . „ p. 159« x  C r i s p o , John H.G., Chairman. "Domtar J o i n t Labour-Management Sub-Committee Report on Human Adjustment t o I n d u s t r i a l Conversion". Domtar J o i n t Labour-Management Meeting, V a l Morin, Quebec, October, 1966, pp. 10-11. (unpublished paper). 2  - 94 labour market In responding t o demand c o n d i t i o n s i s not s u f f i c i e n t and leads t o s t r u c t u r a l surpluses and d e f i c i e n cies.  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 i n c e n t i v e s should be adm i n i s t e r e d by a s i n g l e manpower agency.  The manpower  agency would perform the f o l l o w i n g f i v e f u n c t i o n s : " I t should c o l l e c t and spread information about job o p p o r t u n i t i e s and developments i n a l l labour marke t s . 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 admini s t e r the various i n c e n t i v e s r e l a t i n g t o moving, t r a i n i n g , r e t r a i n i n g e t c , of workers. I t should consult w i t h f i r m s 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 s t i m u l ate research i n the area of m o b i l i t y and labour market adjustment. 1,1  The purpose of c o r r e l a t i n g a l l of these viewpoints here i s t o emphasize the f a c t that the concept of an a c t i v e manpower p o l i c y i s based on a c l e a r and accepted s e t of principles.  There a r e no major c o n f l i c t i n g viewpoints.  Thus, the establishment of the Manpower C o n s u l t a t i v e Serv i c e w i t h i n the Department of Labour to provide f o r the adaptation of the c u r r e n t l y employed manpower to the everchanging requirements of t e c h n o l o g i c a l 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 p r o v i d i n g such an a c t i v e manpower p o l i c y . Montague, J.T. 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 R e l a t i o n s : U n i v e r s i t y of B r i t i s h Columbia, I966, p. 109. 0  - 95 For the purposes of t h i s r e p o r t , t h e r e f o r e , success of the Manpower Consultative Service must be measured by i t s overa l l c o n t r i b u t i o n towards an a c t i v e n a t i o n a l manpower p o l i c y . III.  THE MANPOWER CONSULTATIVE SERVICE METHODOLOGY  The stream of events l e a d i n g t o the  establishment  of the Manpower Consultative Serviee was presented i n Chapter I I I of t h i s report. the S e r v i c e i n  A t the time of i n c e p t i o n of  mid-1964 the fundamental p r i n c i p l e s w i t h i n  which the Service was t o f u n c t i o n were formulated.  The  f o l l o w i n g quotation i n d i c a t e s the r a t i o n a l e of the Manpower C o n s u l t a t i v e Service i n 1964 as a f u n c t i o n of the Department of Labour. "The Program which w i l l be administered by the Manpower Consultative Service as i t operates a t 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 f o l l o w i n g p r i n c i p l e s : (a) that appropriate plans a t the plant l e v e l must be developed w e l l _in advance of a n t i c i p a t e d worker displacement, o r unnecessary unemployment w i l l r e s u l t ; t h i s requires advance r e search and assessment of the manpower consequences 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 t o remove obstacles t o c o n s t r u c t i v e a c t i o n which r e s u l t from a l a c k pf understanding and agreement.as to the f a c t s and the problem; (c) that the use of e x i s t i n g governmental s e r v i c e s , both f e d e r a l and p r o v i n c i a l , which can help i n  - 96 -  b r i n g i n g 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 a t the plant levelo Such important s e r v i c e s are provided under the Technical and V o c a t i o n a l T r a i n i n g Assistance Act f o r t r a i n i n g and r e t r a i n i n g and by the N a t i o n a l Employment Service f o r the placement and re-employment of workers. I n those cases where a complete employment a d j u s t ment i s not p o s s i b l e a t the f i r m or community l e v e l , the t r a n s f e r of the d i s p l a c e d workers to other areas i s necessary and i s f r e q u e n t l y I n h i b i t e d by a Lack of f i n a n c i a l resources. Federal government a s s i s t a n c e i n combination w i t h i n d u s t r y and the provinces w i l l g r e a t l y f a c i l i t a t e t h i s necessary k i n d of labour mobility. To Implement a program based on these p r i n c i p l e s , the f e d e r a l Department of Labour has a u t h o r i t y t o develop the f o l l o w i n g program a c t i v i t i e s : I.  A Manpower C o n s u l t a t i v e Service has been formed to administer what we are c a l l i n g 'adjustment i n c e n t i v e s ' . This Service w i l l a c t In an adv i s o r y and t e c h n i c a l c a p a c i t y t o employers and unions i n developing manpower adjustment programs and w i l l encourage and co-ordinate the use by i n d u s t r y of p u b l i c t r a i n i n g , placement, and other organizations which can a s s i s t i n b r i n g i n g about more e f f e c t i v e manpower a d j u s t ments consequent upon t e c h n o l o g i c a l change,  2„  The M i n i s t e r of Labour I s authorized to enter Into agreements w i t h employers or j o i n t l y w i t h employers and unions t o provide research incent i v e s t o pay f o r one-half of the costs incurred i n researching the manpower e f f e c t s of industr 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 a s s i s t a n c e , however, depends on the M i n l s t e r through the Manpower Consultative Services, r e c e i v i n g reasonably advance n o t i c e of i n d u s t r i a l changes which w i l l have adverse e f f e c t s on employment. Where there i s a recognized u n i o n there must a l s o 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, 9  9  3,  The M i n i s t e r of Labour can a l s o enter i n t o agreements t o provide re-employment i n c e n t i v e s  - 97 to a province or employers or both of one-half the costs incurred i n moving workers and t h e i r dependents displaced by i n d u s t r i a l change to other communities where employment i s available. This provision w i l l of course be limited to those workers who9 except f o r the payment of the incentive would not be able to move and, i n addition, the incentive w i l l be contingent upon an employer or a province, or both, assuming the other half of the cost. 9  9  9  9  9  k  0  Under the provisions of the Technical and Voca t i o n a l Training Assistance Act, a recent amendment of the Act permits the federal government to reimburse a province f o r seventy-five per cent of the costs which an employer undertakes In retraining workers under a Manpower Adjustment Program should they be threatened with displacement consequent upon technological change„ 9  In summary, t h i s Program then i s designed to provide assistance on a technical consultative basis and on a f i n a n c i a l basis to unions and management who des i r e I t so that they may develop more constructive solutions to the displacement problems which technol o g i c a l and other economic changes produce i n i n dustry. Most s i g n i f i c a n t l y , i t i s public policy i n Canada, at least so f a r as the federal government i s concerned, to encourage j o i n t 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 s i g n i f i c a n t means for providing i n advance of the impact of technol o g i c a l change f o r the development of constructive programs to cope with the Impact of these changes within the context of c o l l e c t i v e bargaining. 9  9  A further s i g n i f i c a n t provision i s that when workers 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 t h i s kind of ret r a i n i n g 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 reemployment o  - 98 The Manpower C o n s u l t a t i v e S e r v i c e has been s e t up by the Government of Canada as a c a t a l y s t i n f a c i l i t a t i n g the process of manpower adjustment t o t e c h n o l o g i c a l change. I t i s c o n f i d e n t l y expected on our;part that i n d u s t r y , both management and unions, w i l l s e i z e the i n i t i a t i v e and that the f u n c t i o n of the S e r v i c e w i l l be to f a c i l i t a t e , t o suggest, t o advise the p a r t i e s i n the i n v e s t i g a t i o n of t e c h n o l o g i c a l change and i t s e f f e c t s , rather than t o conduct I n v e s t i g a t i o n s f o r them. The Serv i c e w i l l p l a y a r o l e i n c o - o r d i n a t i n g the a c t i v i t i e s of other government agencies i n helping t o reach s o l u t i o n s t o manpower problems. I t i s genu i n e l y a c o n s u l t a t i v e s e r v i c e . I n time, because of the research which i t w i l l help t o develop, i t can a c t as a s i g n i f i c a n t c l e a r i n g house on the best ways t o cope w i t h the manpower problems of t e c h n o l o g i c a l change." 1  Although the Manpower C o n s u l t a t i v e Service was t r a n s f e r r e d t o the Department of Manpower and Immigration in  I966  the program I t o f f e r s 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 e n t e r p r i s e and the government obviousl y s t a r t s w i t h contact between the Manpower Consultative Service representative and the p a r t i e s . The Manpower Cons 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 may be contacted by one o r both p a r t i e s o r , on the other hand, he may attempt t o develop i n t e r e s t 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_ C i t . . pp.-1719. o  -  99  -  and i t i s consistent w i t h 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 C o n s u l t a t i v e Service r e presentative advises the p a r t i e s 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 s e r v i c e s and as w e l l suggests c e r t a i n procedures f o r manpower adjustment.  Once the p a r t i e s have be-  come convinced that i t i s d e s i r a b l e f o r them t o 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, e s t a b l i s h i n g the framework w i t h i n which the program w i l l continue,  A normal Proposal provides f o r a J o 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 n e u t r a l — n o r m a l l y an academic professor of high repute.  I n the past the Man-  power C o n s u l t a t i v e Service representative o r the Research D i r e c t o r has acted as temporary chairman of the J o i n t Cons u l t a t i v e Committee but the p a r t i e s are encouraged t o make t h e i r own arrangements as soon as p o s s i b l e .  I n 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 r e s p e c t i v e l y .  See Chapter V, A c t i v e Versus Passive Approach S e c t i o n , p. 1 6 6 . x  - 1G0 -  .  Once the p a r t i e s have f o r m a l l y agreed on the Proposal 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 t o the M i n i s t e r of Manpower and Immigration  requesting f i n a n c i a l a s s i s t -  ance i n c a r r y i n g out the adjustment program and i n d i c a t i n g the p a r t i e s ' i n t e n t i o n s as r e l a t e d 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 l a g 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 n e g o t i a t i o n s f o r a coming c o l l e c t i v e agreement, or i f the p a r t i e s are of low accommodation and there i s f e a r of one o r the other p a r t y p o s s i b l y reneging on c e r t a i n items, a Memorandum of Understanding i s drawn up t o cover these s p e c i a l circumstances.  This Memorandum of Understanding serves to f o r -  m a l l y bind the p a r t i e s u n t i l the M i n i s t e r 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 p a r t i e s agree  that changes i n the adjustment program subject matter w i l l not be made during a s t i p u l a t e d p e r i o d .  I n a binding award  p r o v i s i o n , the p a r t i e s have g e n e r a l l y reached an impasse i n j o i n t d i s c u s s i o n s and s i g n 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 p a r t y f o r a given p e r i o d .  I n most cases, however, such a  Memorandum of Understanding i s not required.  -  101  -  I f the M i n i s t e r deems the research worthy of a s s i s tance, he has drawn up and signs a Manpower Assessment I n centive Agreement (See Appendix "B").  Once the Incentive  Agreement Is signed the p a r t i e s are i n formal contract w i t h the government to undertake the j o i n t research program, normally w i t h i n a s p e c i f i e d p e r i o d of time, although extensions are u s u a l l y permitted. While the problems to be researched vary w i t h the p a r t i c u l a r s i t u a t i o n , i n general the f o l l o w i n g areas are included i n the program: 1.  A d e t a i l e d assessment of the present occupational structure.  2.  A complete d e s c r i p t i o n of the a n t i c i p a t e d manpower requirements to r e s u l t from the impending changes.  3. i  A d e t a i l e d d e s c r i p t i o n of the changes i n the current work f o r c e .  4.  An a n a l y s i s of ways and means by which the exi s t i n g work f o r c e may be adapted to the new s i t u a t i o n . This w i l l l i k e l y i n c l u d e some p r o v i s i o n f o r r e t r a i n i n g and an a n a l y s i s of the e x i s t i n g seniority practices.  5.  An a n a l y s i s of the present and f u t u r e labour market i n conjunction w i t h the a n t i c i p a t e d labour requirements p r o j e c t e d from f o r e c a s t s 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 f o r c e then recommendations should be devised and submitted to the J o i n t C o n s u l t a t i v e Committee i n order to f a c i l i t a t e an o r d e r l y adjustment procedure. 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 s e r v i c e s .  7  I f the research and assessment program concludes  - 102 that new entrants are required then the recommendations 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 procedure should be kept a l e r t to the p o s s i b l e use of government manpower s e r v i c e s i n making f i n a l r e 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 C o n s u l t a t i v e Committee meets to discuss the framework w i t h i n which f u t u r e discussions on any proposed changes w i l l take p l a c e .  Normally a status  quo Is e s t a b l i s h e d on the subject matter such that disputes do not a r i s e during the period of the study.  In a d d i t i o n ,  the Manpower C o n s u l t a t i v e Service representative can acquaint the p a r t i e s w i t h other programs s i m i l a r to t h e i r s and show the c o n s t r u c t i v e r e s u l t s which have emerged from these s t u d i e s . When the research recommendations are complete they are submitted to the J o i n t C o n s u l t a t i v e Committee, which i s then faced w i t h the major task of preparing a comprehensive manpower adjustment p l a n .  I n developing the plan i t i s  B r o o k s , G.Go "Advance Planning f o r Manpower Adjustment a t the P l a n t L e v e l and the Role of the Manpower C o n s u l t a t i v e S e r v i c e " . The Requirements of Automated Jobs, p. 25*. Drew, J.Do "Economic and Technological Change i n the 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 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 C o n s u l t a t i v e Service of the Canadian Department of Labour". 0p_ C i t . , pp. 9x  10.  0  •- 103 recommended that s o l u t i o n s he approached with due  regard  f o r the r i g h t s , o b l i g a t i o n s 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 t e c h n i c a l e f f i c i e n c y be equated w i t h those of sound i n d u s t r i a l and human r e l a t i o n s i n the i n d u s t r y .  Thus, union and management are  provided  w i t h an o b j e c t i v e and r e l i a b l e set of f a c t s ; a mutually agreed upon set of ground r u l e s b u i l t up around p r o v i s i o n s 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 a d d i t i o n to the t e c h n i c a l and f i n a n c i a l s e r v i c e s  provided by the Manpower C o n s u l t a t i v e S e r v i c e , the Commit t e e has at i t s d i s p o s a l the t r a i n i n g , placement, m o b i l i t y and miscellaneous, f a c i l i t a t i n g s e r v i c e s of both the provi n c i a l and f e d e r a l governments. co-ordinated  These s e r v i c e s would be  by the Manpower C o n s u l t a t i v e Service repres-  entative. The J o i n t C o n s u l t a t i v e Committee's d i s c u s s i o n s , approached i n an atmosphere f r e e of time pressures  and  w i t h the approval of top o f f i c i a l s of both p a r t i e s , lead t o recommendations that are normally accepted by both the company and the union.  Often the f i n a l terms and p r o v i s -  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 i n c e n t i v e  payment once the recommended p l a n i s received and approved by the M i n i s t e r , thereby c l o s i n g out the f i n a n c i a l arrangements and t e r m i n a t i n g the agreement, IV.  SELECTED CASES HANDLED BY THE MANPOWER CONSULTATIVE SERVICE  Each of the twenty or more cases completed or c u r r e n t l y underway under the auspices of the Manpower Cons u l t a t i v e Service has i t s own d i s t i n c t p r o p e r t i e s .  The  type of company, the product produced, the k i n d of technol o g i c a l change being Introduced, the number of unions r e presented, the r e l a t i o n s between labour and management, the general economic environment, and many other characteri s t i c s have to be considered i n e v o l v i n g a p l a n of a d j u s t 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 s c a l e , however, the cases do appear to conform to a continuum that i n v o l v e s p l a n t closure w i t h mass l a y - o f f a t one end, an Increasing degree of i n t e r n a l adjustment moving r i g h t across the continuum, and, at the other end, f u t u r e manpower planning w i t h no imminent worker displacement.  I n order to a r r i v e a t some general conclus-  ions I t w i l l be u s e f u l to b r i e f l y recap a number of cases, keeping most of the v a r i a b l e s constant, and view t h e i r p o s i t i o n on such a continuum of i n c r e a s i n g ease of worker adjustment.  - 105 The ten cases presented were s e l e c t e d 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 C o n s u l t a t i v e S e r v i c e 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 c i p a t e d work f o r c e reduction,,  Included are two cases i n -  v o l v i n g plant c l o s u r e , f o u r cases i n v o l v i n g i n c r e a s i n g degrees of i n t e r n a l adjustment and f o u r cases i n v o l v i n g i n c r e a s i n g degrees of f u t u r e planning.  The  information  presented was compiled from various government f i l e s  and  r e p o r t s , research r e p o r t s , interviews and newspaper a r t icles.  In essence the m a t e r i a l i s arranged to i n d i c a t e  the degree of a n t i c i p a t e d work f o r c e r e d u c t i o n , the type of program-that was  recommended to overcome the d i s p l a c e -  ment problem, and where p o s s i b l e , the r e s u l t s that were achieved i n e f f e c t i n g the worker adjustment p l a n . prehensive endix C" M  A com-  summary of one case study i s attached as Appto i n d i c a t e more f u l l y the many r a m i f i c a t i o n s  i n v o l v e d i n a complex manpower adjustment program. P l a n t Closure Pom t a r Pulp and Paper Ltd.«, Portneuf, Quebec. In November, 1965  Domtar Pulp and Paper L t d . signed  a Manpower Assessment Incentive Agreement i n which i t agreed to undertake a program of j o i n t research and ment.  assess-  I n i t i a l contact w i t h the Manpower Consultative Service  was made "by the union i n  - 106 J u l y , I965  s h o r t l y a f t e r i t rec-  eived n o t i c e of planned closure of the Company's k r a f t and boxboard s u b s i d i a r y i n Portneuf, Quebec, f o r economic reasons, sometime i n J u l y , 1966.  I t was  about f i f t y workers would be displaced,,  expected that Participating i n  the manpower adjustment program was the company, two unions, the Manpower Consultative S e r v i c e , 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 n e u t r a l consultant, was to provide f o r methods i n which the d i s p l a c e d workers could be re-employedo P r e l i m i n a r y studies by the Research C o m m i t t e e i n November and December,  I965  involved the u t i l i z a t i o n of  two  expert c o u n s e l l o r s from the N a t i o n a l Employment Service to i n t e r v i e w 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 a s c e r t a i n whether the workers were capable of re-employment i n the labour market, per se, or i f f u r t h e r r e t r a i n i n g of a s p e c i f i c k i n d was  necessary.  Attempts were a l s o made to i n i t i a t e an area r e development program w i t h the Quebec Department of Industry and Commerce but s e v e r a l problems arose and subsequent e f f o r t s proved u n s u c c e s s f u l In February,  I966  0  discussions were held w i t h 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 a d d i t i o n , the company took upon i t s e l f  -  107  -  the task of f i n d i n g jobs i n t h e i r other p l a n t s f o r a l l employees who d e s i r e d t o r e l o c a t e .  A p p l i c a t i o n was made  f o r a f e d e r a l 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 f e d e r a l approval. In general, the program was reported as somewhat disjointed.  The r e g i o n a l Manpower Consultative Service  representative suggested that u n i l a t e r a l a c t i o n by the company was f e l t t o 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 a t the Interviewing because of i t s unco-ordinated e f f o r t .  Moreover, attempts a t r e l o c a t i o n  were hampered by the r e c e i v i n g unions' r e s i s t a n c e t o 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 policy.  I t was suggested that l e s s r e s i s t a n c e 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 r e t r a c t i o n of s p e c i a l l y Implemented e a r l y retirement p r o v i s i o n s . Some of the company r e p r e s e n t a t i v e s , on the other hand, a c t u a l l y f e l t that the company might have been b e t t e r off i f i t had closed the plant down immediately instead of phasing out the operation i n an attempt t o place the a f f e c t e d workers. U l t i m a t e l y , by February, 1967 s i x t e e n employees had been r e l o c a t e d , seventeen had accepted severance pay (seven of which were e a r l y r e t i r e m e n t s ) , one had r e t i r e d  normally,  and the remaining s i x t e e n had s t i l l deferred a c t i o n on  - 108  -  relocation. Mount Royal Rice M i l l s L t d , I n September, 1965  Mount Royal Rice M i l l s L t d . ,  Montreal, served n o t i c e to i t s t h i r t y - e i g h t s a l a r i e d ployees that i n September, 1966  em-  i t would be t r a n s f e r r i n g  operations from Montreal.to Windsor, Ontario. A J o i n t Committee was e s t a b l i s h e d 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 C o n s u l t a t i v e S e r v i c e was f i r s t contacted by the union and then by management.  The manpower ad-  justment program, d i r e c t e d by a n e u t r a l c o n s u l t a n t , aimed at p r o v i d i n g a s s i s t a n c e to those employees who wished to t r a n s f e r to the new l o c a t i o n and a t f i n d i n g a l t e r n a t i v e work f o r those who d i d not wish to move.  Participating in  the j o i n t study was the company, the union, the Manpower C o n s u l t a t i v e S e r v i c e and the Quebec Department of Labour, The Research Sub-Committee held a meeting w i t h the t h i r t y - e i g h t s a l a r i e d employees and advised them t h a t :  (1)  the company would provide work to a l l those who wished to r e l o c a t e i n Windsor; (2) the company and the Manpower Cons u l t a t i v e Service would pay a l l expenses incurred i n r e l o c a t i n g to Windsor or elsewhere i n Canada; and (3) the company would o f f e r a severance settlement of one week's pay per year of s e r v i c e to those employees who d i d not wish to continue working f o r the company a f t e r closure of the  - 109  Montreal p l a n t .  -  I n a d d i t i o n , the company would provide  f i n a n c i a l support to any employee who wished to take academic t r a i n i n g , staggered over a p e r i o d of about t h i r t y s i x weeks. I n i t i a l l y , eighteen employees d e s i r e d to r e l o c a t e . 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 l o w - r e n t a l 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 access.  Many attempts were made to arrange f o r t h i s or some  other s u i t a b l e accommodations but to no a v a i l .  Finally,  only s i x employees s t i l l d e s i r e d r e l o c a t i o n , and to help them shoulder the higher r e n t s , the company p a i d these employees a severance settlement even though they were to be r e i n s t a t e d a t the new l o 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 l a c k 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 l e a s t grade s i x education.  Therefore, an i n i t i a l a t t -  empt was made a t s e t t i n g up a course f o r them.  Difficult-  ies w i t h the Quebec Department of Education and Montreal School Commission Board, however, reduced the number of q u a l i f i e d a p p l i c a n t s 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 e n t i r e program had to be abandoned. U l t i m a t e l y s i x employees moved to Windsor, four  - 110 remained w i t h the company i n Montreal and the remaining twenty-eight  received severance settlements.  These twenty-  eight have been interviewed by the Canada Manpower Centers f o r a t h i r d time i n an attempt t o r e l o c a t e them w i t h other employerso I n t e r n a l 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 L t d . signed an Agreement with the Navigators* A s s o c i a t i o n i n Vancouver, i n which they agreed to c a r r y out a j o i n t program of research, c o n s u l t a t i o n and planning with respect to manpower adjustment problems a r i s i n g out of the planned i n t r o d u c t i o n of airborne n a v i g a t i o n a l equipment.  The pro-  gram i s examining the manpower i m p l i c a t i o n s I n v o l v i n g twenty-nine navigators who w i l l become redundant when such equipment i s introduced.  Contact with the p a r t i e s was f i r s t  made through the e f f o r t s of the l o c a l Manpower C o n s u l t a t i v e Service r e p r e s e n t a t i v e .  The J o i n t Consultative Committee  i s being chaired by the Manpower C o n s u l t a t i v e S e r v i c e r e presentative and research i s being d i r e c t e d by a n e u t r a l consultant. The Research Committee's e f f o r t s to date have produced an a n a l y s i s of questionnaire r e s u l t s and completion of two of f i v e parts of the Research Report.  The weight  - Ill of evidence supports the view that redundancy of navigators i s i n e v i t a b l e ; the navigators themselves b e l i e v e sometime between three to ten years„  In a d d i t i o n , i t appears that  f o r the most p a r t , 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 p o t 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 u n i t i e s f o r readjustment  w i t h i n the company.  opport-  In addition,  the study w i l l examine a t t r i t i o n , e a r l y retirement, r e t r a i n i n g , r e l o c a t i o n and severance pay p r o v i s i o n s i n an attempt t o develop an i n t e g r a t e d s o l u t i o n 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 n e g o t i a t i o n under a new  collect-  ive agreemento Previous experience with navigator redundancy, nota b l y Trans World A i r l i n e s , and more r e c e n t l y United A i r L i n e s , has r e s u l t e d In adjustment plans that provide generous severance pay combined with forms of supplementary income s e c u r i t y ,  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 n a v i -  gators i n t o 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 s e c u r i t y . Higher s e n i o r i t y employees were guaranteed e i t h e r a job and a minimum s a l a r y , 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 w i t h navigator redundancy due to the r e l a t i v e l y low number of employees a f f e c t e d and t h e i r r e l a t i v e l y high s a l a r y s t r u c t u r e .  On  the other hand, navigators are so s p e c i a l i z e d that comp 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 N a t i o n a l Railways - North Sydney The Canadian N a t i o n a l Railways f e r r y s e r v i c e between North Sydney, Nova S c o t i a , 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-  e l s and new f r e i g h t - h a n d l i n g methods to be introduced w i l l eliminate most of the stevedoring employment c u r r e n t l y used.  Most of the a n t i c i p a t e d worker  displacement—which  a f f e c t s seven hundred or more men—represents about onet h i r d of North Sydney's male work f o r c e and the impact of such unemployment could be d i s a s t e r o u s .  Both the company  and union agreed to u t i l i z e the Manpower C o n s u l t a t i v e Serv i c e program and a s s i s t a n c e was subsequently arranged f o r through a Manpower Assessment Incentive Agreement signed i n November, 1965.  Research i s being d i r e c t e d by a n e u t r a l  - 113 c o n s u l t a n t who  passes h i s recommendations on t o a J o i n t  C o n s u l t a t i v e Committee f o r c o n s i d e r a t i o n .  The  N a t i o n a l Railways, the union, and f e d e r a l and government a u t h o r i t i e s a r e i n v o l v e d to  Canadian provincial  in e f f e c t i n g a plan  f i n d a l t e r n a t i v e jobs f o r the a f f e c t e d workers. I n i t i a l l y , the Research Committee was  f a c e d with  the task of t r y i n g to d i s c o v e r ways i n which the d i s p l a c e d workers could be re-absorbed possible hardship.  i n t o new  Therefore,  jobs with the  least  they attempted t o : (1)  cover the c h a r a c t e r i s t i c s of the men;  dis-  (2) f i n d out what  a l t e r n a t i v e employment would be a v a i l a b l e ; (3) p l a n f o r t r a i n i n g of the men a n c i e s ; and The  so t h a t they c o u l d f i l l  (4) c l e a r the way  agreeable  to f a c e the  to be taken u n t i l a p l a n emerged  to both p a r t i e s .  T h i s d i d not mean t h a t  expert a d v i c e would not be sought; merely t h a t the  two  p a r t i e s on the Committee agreed to seek i t t o g e t h e r , c o n s i d e r the a d v i c e t o g e t h e r and agreement was One  pro-  t o c o n t r i b u t e j o i n t l y to t h e i r s o l u t i o n .  T h e r e f o r e , no a c t i o n was t h a t was  of o b s t a c l e s to r e l o c a t i o n .  union and the company decided  blems t o g e t h e r and  expected vac-  to  to move t o g e t h e r when  reached.  difficulty—that  of u n i n h i b i t e d Committee  s u p p o r t — e m e r g e d when company r e p r e s e n t a t i v e s were f e l t have l o y a l t i e s o u t s i d e the Committee.  T h i s was  overcome  (one r e p o r t suggested) by r e n d e r i n g a l l proceedings f i d e n t i a l to the members.  con-  Union r e p r e s e n t a t i v e s were  to  - 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, f e d e r a l representatives and l o c a l education o f f i c i a l s were i n v i t e d to p a r t i c i p a t e by helping to design and e s t a b l i s h courses.  Problems of r e l o c a t i o n were discussed with the  N a t i o n a l Employment S e r v i c e , and the impact of changes on the  l o c a l community were examined w i t h 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 w e l l as numerous research p r o j e c t s .  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 r e s i s t a n t a t t i t u d e of the employees towards m o b i l i t y .  A l s o , with a three year  spread between the date of o r i g i n a l p u b l i c announcement and the  conclusion of the r e c o n s t r u c t i o n , t e c h n i c a l studies  were required to determine the impact of proposed changes on the work f o r c e .  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-  o r i n g f o r the v a c a n c i e s — o n e 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 a f f e c t e d i n Newfoundland—and  with f u r t h e r problems a r i s i n g from b u l l -  e t i n i n g 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 quickl 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 e s p e c i a l l y f o r them. Although there was i n i t i a l r e s i s t a n c e to the i n t e r viewers and c o u n s e l l o r s ( s t a f f of Canadian N a t i o n a l R a i l ways r e g i o n a l and head o f f i c e s ) i t was soon overcome. When the need became p r e s s i n g to s t a r t making plans f o r educational courses, the Committee decided a more d e t a i l e d i n t e r v i e w i n g assessment was required to ensure that c l a s s e s would be homogeneous.  For t h i s work the Committee obtained  the s e r v i c e s of two s e l e c t i o n and c o u n s e l l i n g experts, one a p r i v a t e 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 wishful thinking.  somewhat r e l i a n t on  Even a f t e r the two formal i n t e r v i e w  programs were over, however, c o u n s e l l i n g was continued by a Manpower Co-ordinator who  Is s t a t i o n e d f u l l time at the  ferry terminal. The Committee expended considerable e f f o r t i n an attempt to promote a smooth t r a n s f e r of men to other jobs and d i s t r i c t s .  A l l new openings i n the Canadian N a t i o n a l  Railways system were p u b l i c i z e d and educational standards were changed somewhat to help accommodate some of the d i s placed.  Unfortunately, the t r a n s f e r and r e l o c a t i o n of  workers to date has not worked w e l l and most of the returned s h o r t l y a f t e r r e l o c a t i n g .  men  In essence, pay rates  = 116  -  f o r new j o b s a r e l o w e r a n d m o s t o f t h e men a r e attached to t h e i r laid  off  will  own d i s t r i c t ,  exhaust a l l  firmly-  so u n d o u b t e d l y t h o s e t o  efforts  i n attempting to  o t h e r jobs i n t h e immediate area b e f o r e l o o k i n g  be  find  elsewhere.  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 D e p a r t m e n t o f L a b o u r a n d , as a r e s u l t , taken to e x p l o r e — w i t h  the f e d e r a l Department of  and I m m i g r a t i o n — t h e  possibility  as a p i l o t  If  all  project.  t h e y have  underManpower  o f t r e a t i n g N o r t h Sydney  this materialized i t  would  t h e s o c i a l a n d economic r e s e a r c h n e e d e d on t h e  cies t h a t would l i k e l y a r i s e next three years.  No f u r t h e r  provide vacan-  i n t h e Cape B r e t o n a r e a i n result  of t h i s  e n d e a v o u r has  b e e n I n d i c a t e d , a l t h o u g h , a s was m e n t i o n e d e a r l i e r , t e r m o u t l o o k was i n i t i a t e d b y t h e  short-  that a  comprehensive  t r a i n i n g a n d u p g r a d i n g p r o g r a m has been o p e r -  a t i n g f o r about a year.  Full  c o - o p e r a t i o n was  from every l e v e l of p u b l i c a u t h o r i t y courses.  a  Committee.  Recent i n f o r m a t i o n i n d i c a t e s vocational  the  The R e s e a r c h D i r e c t o r  received  i n s e t t i n g up t h e s e  suggested t h a t  s c h o o l and  government o f f i c i a l s  w e n t o u t o f t h e i r way t o e n s u r e  scheme r e c e i v e d f u l l  support.  able f o r t h i s  Government a i d , made a v a i l -  e d u c a t i o n p r o g r a m , was f e l t  equate t o cover t h e necessary f i n a n c i a l c u s s i o n s were underway t o a t t e m p t regulations.  Additional  the  somewhat  inad-  s u p p o r t and d i s -  to a l t e r  the  existing  s u p p o r t was r e c e i v e d f r o m  community 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  the at  „ 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 o n , a process of  In  continuous counselling i s being  estab-  lished involving six to eight trained interviewers the d i r e c t i o n of Montreal consultants. attempting to re-orient  and m o t i v a t e t h e  Although the question of  addit-  under  T h i s program  is  workers.  severance payments  will  u l t i m a t e l y be r a i s e d , t h e C o m m i t t e e i s u n a n i m o u s i n  their  belief  t h a t t h i s m u s t n o t be u s e d as a way o f b u y i n g  of the  problem. Manitoba R o l l i n g M i l l s  Ltd*  Manitoba R o l l i n g M i l l s  Ltd., Selkirk,  out  Manitoba,  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 A g r e e m e n t on J u n e 9, 1965  i  which  n  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  Consultative  S e r v i c e and t h e M a n i t o b a Department 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 logical  changes t o be made i n t h e c o m p a n y ' s  techno-  operations.  The p r o g r a m was i n i t i a t e d b y Manpower C o n s u l t a t i v e r e p r e s e n t a t i v e s who w e r e a w a r e o f t h e p l a n n e d  Service  introduction  o f new e q u i p m e n t a n d n e g o t i a t i o n s w e r e s t a r t e d w i t h industrial in  relations  they  department of Dominion Bridge  the Company  Montreal. A b o u t t w o h u n d r e d a n d s i x t y men w e r e e x p e c t e d  be l a i d o f f  to  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 :  approximately eighteen per cent of the town's labour  force.  - 118 Accordingly, research was d i r e c t e d by a n e u t r a l consultant i n t o r a m i f i c a t i o n s of the changes i n an attempt to devise a manpower adjustment program f o r the re-adaptation and/or r e l o c a t i o n of employees who were to be l a i d o f f and f o r the r e t r a i n i n g of those employees who were to be new  duties.  assigned  The Research D i r e c t o r a l s o chaired the  Committee. The J o i n t Planning Committee, e s t a b l i s h e d i n r e l a t i o n s h i p w i t h the Manpower Consultative S e r v i c e , followed c l 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 p l a n t .  The J o i n t Planning Committee  i n v e s t i g a t e d : (1) the manpower requirements of the  new  s i t u a t i o n as r e l a t e d to the expressed t e c h n o l o g i c a l , organi z a t i o n a l and o p e r a t i o n a l changes; (2) a program of manpower a l l o c a t i o n , and c o n s i d e r a t i o n given to ways and means by which the e x i s t i n g work f o r c e could be adapted to the new  s i t u a t i o n - - t h i s involved the making of a c t u a l r e -  commendations concerning new  jobs and the necessary steps  f o r i n t e r n a l r e t r a i n i n g ; and ( 3 ) a d e t a i l e d survey of that part of the e x i s t i n g labour force to be d i s p l a c e d .  Re-  commendations were made concerning those people who  could  not be reabsorbed i n t o the company, w i t h p a r t i c u l a r empha s i s on r e t r a i n i n g , r e l o c a t i o n and placement. The Committee experienced considerable  difficulty  i n i t i a l l y as a low accommodation between the union and  - 119 company management a t the s t a r t created some u n c e r t a i n t y as to a s u c c e s s f u l 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 p l a n t and adv e r s e l y 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 t e c h n o l o g i c a l 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 c o n s t r u c t i v e l y and f o r the most part few, i f any, of the problems p e r s i s t e d . The  understanding  and co-operation that u l t i m a t e l y developed w i t h i n the Committee was reported to have g r e a t l y improved the unionmanagement r e 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 f i n d i n g s i n d i c a t e d that about three hundred and n i n e t y 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 i n t o 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 j u n i o r 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 p r a c t i c e s had to be relaxed f o r the p e r i o d of r e - a l l o c a t i o n .  I n a d d i t i o n , some j u n i o r per-  - 120  -  sonnel were deemed too v a l u a b l e to r e p l a c e by v i r t u e of the s p e c i a l s k i l l s they possessed and were h e l d immune t o bumping.  When the f i n a l re-assignment  the c u t - o f f l e v e l stood a t about  has been e s t a b l i s h e d ,  seven years of s e r v i c e .  Those employees with more than seven y e a r s  seniority,  1  were d i s p l a c e d from p r e v i o u s j o b s , were a s s i g n e d new t i o n s i n the p l a n t by the Committee a f t e r an of  t h e i r past r e c o r d s and q u a l i f i c a t i o n s .  who  posi-  examination  P r o v i s o s such  as g r a n t i n g of i n t e r - a s s i g n m e n t bumping r i g h t s and l e a v e s of absence t o f i n d  jobs elsewhere were e s t a b l i s h e d with  these assignments.  In a d d i t i o n , i t was  s p e c i f i c job assignments factory  stipulated that  were to be c o n t i n g e n t upon s a t i s -  performance. F o r those employees not reabsorbed w i t h i n the com-  pany the Committee recommended use of the Canada Manpower Center f o r i n t e r v i e w i n g i n an attempt r e t r a i n i n g , r e l o c a t i o n and placement  t o e s t a b l i s h use of services.  The  company  management p e r m i t t e d I n t e r v i e w i n g and r e g i s t r a t i o n of these workers on company time and premises.  In a d d i t i o n , the  Committee p r o v i d e d a s t a t i s t i c a l  survey of p e r s o n n e l r e -  cords f o r use by the c o u n s e l l i n g  service.  The Committee recommended t h a t government a s s i s t ance be granted to those workers who  wished  to upgrade  t h e i r e d u c a t i o n a l standards even i f a job was a v a i l a b l e to them. dation.  The government subsequently accepted t h i s recommenIn a d d i t i o n , the company agreed to co-operate w i t h  - 121 the educational a u t h o r i t i e s i n e s t a b l i s h i n g t r a i n i n g courses.  An a p p l i c a t i o n f o r m o b i l i t y a s s i s t a n c e had to be  deferred u n t i l a c t u a l numbers of pending l a 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 s t a t e s t h a t : "Since the company d e l i v e r e d i t s warning i n mid1963, 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 w i t h i n the next s e v e r a l 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 Department of Education...." 1  Results of interviews and c o u n s e l l i n g i n d i c a t e d that there was a high i n t e r e s t i n t r a i n i n g but few workers have shown an i n t e r e s t i n r e l o c a t i n g outside of the S e l k i r k area.  Unfortunately, as the wage s t r u c t u r e a t Mani-  toba R o l l i n g M i l l s Is considerably higher than that paid by other I n d u s t r i e s i n the town, attempts to re-employ the d i s p l a c e d workers at a comparable r a t e w i l l be extremely  difficult. Domtar L t d . . Windsor, Quebec. A J o i n t Commission i n v o l v i n g Domtar L t d . , 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 s l i n g s and arrows of modern technology". March 4, 1967,  p.  25.  - 122 -' Labour assessed the consequences of proposed manpower cuts a t 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 f o r c e .  The p a r t i e s entered i n t o a Man-  power Assessment Incentive Agreement on the suggestion of the r e g i o n a l representative of the Manpower C o n s u l t a t i v e 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 d i r e c t e d by a n e u t r a l con-  s u l t a n t , who a l s o chaired the Commission. The program was focussed on three broad o b j e c t i v e s e s t a b l i s h e d by the Commission: (1) reabsorptlon of the one hundred and seventy-two workers; (2) d i s m i s s a l of a l l of them; or (3) p a r t i a l r e a b s o r p t l o n of the workers.  Within  t h i s framework the Commission decided at the outset to pursue three normally sequential areas of study consecuti v e l y due to a shortage of time and to a v o i d p o s s i b l e r i s k s to the a f f e c t e d workers, t h e i r f a m i l i e s and the community. The three areas researched were: (1) i n q u i r y i n t o the p o s s i b i l i t i e s of a r e d u c t i o n i n the number of redundant workers; (2) study of r e g i o n a l economic and labour market c o n d i t i o n s ; 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 I n t e r e s t s 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 , i n d i c a t e 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. A f t e r researching the r a m i f i c a t i o n s of a number of methods i n which the one hundred and seventy-two  workers  could be r e t a i n e d under the f i r s t area of study, the Commission recommended the f o l l o w i n g : (1) s t r i c t a p p l i c a t i o n of a f o r t y - h o u r week; (2) r e g u l a t i o n of the annual leave system; (3) s a b b a t i c a l leave; (4) e a r l y retirement; (5) f a c i l i t a t i n g v o l u n t a r y departures; and (6) any other measures upon which the p a r t i e s can agree. Under the second area of research the Commission concluded t h a t : (1) the supply of labour i n the area was r e l a t i v e l y high w i t h concomitant high demand f o r employment; (2) the primary s e c t o r dominates the economy; (3) most o f f e r s of employment c a l l f o r s p e c i a l s k i l l s or extensive 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 p u t t i n g at the d i s p o s a l of the workers a l l the information they needed. Under the t h i r d area of research the Commission concluded t h a t : (1) about one-quarter of the  redundant  group had a p r e c i s e idea of what they could do and l i k e d to do; (2) about f i f t y workers d e s i r e d t r a i n i n g , however, the i n t e r e s t d i v e r s i t y was so large as to preclude, i n  - 124 general, o r g a n i z a t i o n of l o c a l courses; (3) a program of v o c a t i o n a l t r a i n i n g should be e s t a b l i s h e d on a permanent b a s i s , and should not serve as a panacea f o r m i t i g a t i n g the e f f e c t s of major t e c h n o l o g i c a l change a t a given moment; (4) they were unable t o e s t a b l i s h r e t r a i n i n g f o r the i n d i v i d u a l s being t r a n s f e r r e d w i t h i n the p l a n t because of a l a c k of knowledge of s p e c i f i c job assignments; (5) a r e c l a s s i f i c a t i o n and guidance committee should be establ i s h e d f o r a s s i s t i n g redundant workers f i n d new employment i n accordance w i t h t h e i r experience, academic t r a i n i n g , s k i l l s , i n t e r e s t s and p e r s o n a l i t y ; and (6) a v a i l a b i l i t y should be made of f e d e r a l m o b i l i t y a s s i s t a n c e i n r e l o c a t i o n t o 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 t o the area was apparently precluded by the high wages of the Domtar workers i n contrast t o the r e l a t i v e l y low-wage area.  This a l s o hampered the p o s s i b i l i t y of r e l o c a t i o n as  workers d e s i r e d new employment e i t h e r s i m i l a r t o or b e t t e r than t h e i r present jobs.  Use of the f e d e r a l m o b i l i t y i n -  c e n t i v e , t h e r e f o r e , appeared very l i m i t e d .  In addition,  i n a b i l i t y of the workers t o choose s p e c i f i c t r a i n i n g hindered the promotion of r e t r a i n i n g i n c e n t i v e s . The Commission made a number of general recommendations based on problems encountered In t h i s study.  They  f e l t that subsequent s t u d i e s should adopt a commission e a r l y i n the a n t i c i p a t e d development program t o determine  - 125 what jobs would be a v 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 e s s e n t i a l i n h e l p i n g the workers t o r e l o c a t e and/or r e t r a i n i n advance 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 t a l k s l e d t o an assurance by the company that the e n t i r e one hundred and seventy-two employees could and would be reabsorbed. Future Planning B r i t i s h Columbia Towing I n d u s t r y  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' A s s o c i a t i o n 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, r e presenting some s i x t e e n hundred employees, undertook t o study the Impact of past crew reductions on most v e s s e l s , due t o the i n t r o d u c t i o n of d l e s e l engines and mechanized equipment.  The research, d i r e c t e d by a n e u t r a l consultant,  attempted t o e s t a b l i s h terms under which the i n d u s t r y  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 a i n i n g a s u f f i c i e n t crew complement.  The p a r t i e s met f o r approximately  two years a f t e r the formal s i g n i n g 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 f u t u r e i n the towing i n d u s t r y . The s i g n i n g of the Manpower Agreement f o l l o w e d a l most f o u r years of j o i n t u n i o n - a s s o c i a t i o n 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 e a r l y recommendations was precluded by the associ a t i o n ' s f e a r that a c e r t a i n segment of the towing industry, not bound by any agreement reached, would gain a cons i d e r a b l e competitive advantage by escaping u s i n g such r e commended manning s c a l e s .  On the other hand, the unions  were determined t o have standard manning requirements e s t a b l i s h e d based on the b e l i e f that the owners had r e duced crew s i z e s t o the p o i n t where emphasis on s a f e t y i n n a v i g a t i o n was of prime concern.  A l i k e l y s t r i k e was  averted when the Manpower C o n s u l t a t i v e S e r v i c e representa t i v e proposed the formation of a J o i n t C o n s u l t a t i v e Committee. The Committee mediated the arguments of both p a r t ies on the manning issue and examined the Research SubCommittee's recommendations on a l l aspects of manning.  A  - 127 p r o v i s i o n was  included, i n the Manpower Agreement which  bound the p a r t i e s to the f i n a l d e c i s i o n 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 a t a f t e r an exhaustive  study of a l l f a c t o r s that  could f e a s i b l y a f f e c t the complement required.  Among the  more important f a c t o r s considered were the f o l l o w i n g :  (1)  requirements of the Canada Shipping Act; (2) areas of opera t i o n ; and  (3) e x i s t i n g manning scales and such p h y s i c a l  c h a r a c t e r i s t i c s of the vessels as tonnage, horsepower, l e n g t h , mechanization, e t c .  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; s h a l l be two men  and (2) that there  p h y s i c a l l y on duty at a l l times the v e s s e l  i s underway, but not n e c e s s a r i l y two men wheelhouse at a l l times.  p h y s i c a l l y i n the  A l l recommendations were condit-  i o n a l upon complying w i t h l e g a l r e g u l a t i o n s . 1966  By November,  the p a r t i e s found, a f t e r f u l l submission of arguments,  that a few Issues remained insurmountable.  Accordingly,  -  128  -  the p a r t i e s signed a binding award t o 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 f u r t h e r  extended u n t i l A p r i l , 1968.  The b i n d i n g p r o v i s i o n s and an  e l a b o r a t i o n of t h e i r formation are i n c l u d e d 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 f o r engineers t o 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 t o the f e d e r a l Department of Transport and the p r o v i n c i a l Department of Education but no a c t i o n has yet been e f f e c t e d . The Research Report a l s o contained a recommendation for  l i c e n s i n g and steamship i n s p e c t i o n of a l l v e s s e l s i n  the i n d u s t r y . A t present, a l l v e s s e l s of f i f t e e n tons and over a r e subject t o l i c e n s i n g and i n s p e c t i o n r e g u l a t i o n s but many owners b u i l d s p e c i a l s i z e d v e s s e l s f o r the purpose of escaping these r e g u l a t i o n s . Federal a c t i o n has been requested on t h i s issue and there I s some l i k e l i h o o d that the l i c e n s i n g and i n s p e c t i o n r e g u l a t i o n s w i l l be a l t e r e d t o i n c l u d e a l l v e s s e l s of nine tons and over.  This  w i l l , however, s t i l l leave a s u b s t a n t i a l number of vessels unregulated.  The f a c t that the owners of these unlicensed  vessels are not subject t o manning r e g u l a t i o n s gives them  - 129 -  a competitive advantage over a s s o c i a t i o n vessels which i s a constant source of i r r i t a t i o n t o 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 s u c c e s s f u l unless the a s s o c i a t i o n and non-association vessels come under the same r u l e s .  However, recent evidence has i n d i c -  ated that some non-association owners are adopting^-by pressure o r otherwise—many of the Research Report recommendations. I n t e r p r e t a t i o n of sections of the Canada Shipping Act as i t pertained t o manning requirements i n the towing i n d u s t r y was a d i f f i c u l t task f o r the Research SubCommittee,  Many statements appeared t o be confusing, i f  not c o n t r a d i c t o r y .  A f t e r many attempts t o i n t e r p r e t these  p o r t i o n s of the A c t , the Research Report recommended that these sections needed c l a r i f i c a t i o n .  However, i n d i c a t i o n s  are that l i t t l e w i l l be gained on t h i s i s s u e . F i n a l l y , the Research Sub-Committee, i n r e c o g n i z i n g 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 p r e t a t i o n of the Canada Shipping A c t , and the v a r i e t i e s of problems t h a t could emerge I n the f u t u r e , recommended establishment 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 a s s o c i a t i o n , represent a t i v e s from the unions, a chairman of high repute, and  - 130 p o s s i b l y representatives of the f e d e r a l Services r e g u l a t i o n and s a f e t y .  regarding  In a d d i t i o n t o r e g u l a t i n g the  manning of v e s s e l s , the Manning Board would handle a l l issues I n v o l v i n g standards of working c o n d i t i o n s , q u a l i f i c a t i o n s of workers i n the i n d u s t r y , e t c . A p p l i c a t i o n was made to the f e d e r a l Department of Transport f o r the establishment with government a u t h o r i t y .  of such a Manning Board  However, the request was  denied  and nothing f u r t h e r has been done to promote such a board. The most important aspect of t h i s adjustment program was  settlement of the dispute on manning s c a l e s .  With  t h i s problem removed, the p a r t i e s have set out to Implement some of the other recommendations.  Although the Agreement  w i t h the Manpower Consultative Service has terminated,  the  p a r t i e s have at l e a s t s i x years of j o i n t committee experience and have e s t a b l i s h e d new  sub-committees to i n v e s t i -  gate ways and means of g a i n i n g t o t a l i n d u s t r y commitment to the Binding Award and to i n v e s t i g a t e s p e c i a l cases on manning as they a r i s e . Imperial O i l Enterprises L t d . On J u l y 15,  1966  Imperial O i l Enterprises L t d .  (loco Refinery, B r i t i s h Columbia) signed an agreement e s t a b l i s h i n g a J o i n t Consultative Committee on automation In accordance w i t h the p r o v i s i o n s of an Addendum on Job S e c u r i t y i n i t s current c o l l e c t i v e agreement w i t h the  - 131 union.  The Addendum was added upon the recommendation  of  the p r o v i n c i a l M i n i s t e r of Labour i n c o n s u l t a t i o n with f e d e r a l a u t h o r i t i e s during 1965  a f t e r threat of a general  strike.  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 i n t o j o i n t consult-  a t i o n a f t e r being contacted by the Manpower Consultative Service r e p r e s e n t a t i v e .  On October 3, 1$66 a Manpower  Assessment Incentive Agreement was f o r m a l l y signed. A Research Sub-Committee was e s t a b l i s h e d to c a r r y out a research and assessment program.  This Research Sub-  committee j d i r e c t e d and chaired by a n e u t r a l consultant was charged w i t h examining the impact of t e c h n o l o g i c a l change and automation oh conditions of employment at present, and t h e i r p o s s i b l e impact i n the immediate f u t u r e . The J o i n t Consultative Committee was then to formulate  an  adjustment p l a n , based oh the Research Sub-Committee's Report, to cushion the Impact of future t e c h n o l o g i c a l change. I n i t i a l l y , the major task of the Research SubCommittee was In the area of ensuring, employment, Or a t l e a s t w i t h . s e t t i n g a r e g u l a r i z e d procedure f o r reducing employment, a t the loco p l a n t .  A f t e r c a r e f u l 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 i n v o l u n t a r y separation.  Nevertheless,  I t was  obvious the workers were seeking job s e c u r i t y as had been i n d i c a t e d by t h e i r recent contract demands f o r increased  - 132 protection.  Further research i n d i c a t e d that the high de-  gree of t e c h n o l o g i c a l "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 s u r p r i s i n g to f i n d the workers growing more apprehensive w i t h i n c r e a s i n g of new  implementation  technology. I n recommending a plan to accommodate manpower ad-  justment, the Research Sub-Committee f e l t that i t must r e l i e v e the worker of a need to foresee with c e r t a i n t y the trend of h i s job assignments i n the p l a n t , and a l s o i t must encourage the t r a i n e d man  to stay with h i s job w i t h -  out worries about h i s f u t u r e .  Therefore, a plan was  form-  u l a t e d w i t h the o b j e c t i v e of r e t a i n i n g the experience  of  those employees i n the labour f o r c e over f o r t y - f i v e years of age while p r o v i d i n g 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 n o t i c e of change and severance pay p r o v i s i o n s as formulated i n the current c o l l e c t i v e agreement? and  (2)  s p e c i a l p r o v i s i o n s to take e f f e c t i n the event that a r e assignment of workers due to t e c h n o l o g i c a l change a f f e c t e d the wages of an i n d i v i d u a l worker.  The second part of the  p l a n was composed of f o u r parts based on a combination age and years of s e r v i c e .  of  I t included p r o v i s i o n s t h a t :  (1) the most s e n i o r 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 s e n i o r group would r e t a i n  - 133 t h e i r current wage rate w i t h the opportunity to t r a n s f e r to other work f o r which they are q u a l i f i e d ; (3) "the t h i r d most s e n i o r group could take advantage of a r e t r a i n i n g program t o q u a l i f y f o r other jobs i n the p l a n t , o r be assigned t o 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 a s s o c i a t e d with d e f i n i n g when the "automation" plan would take e f f e c t , the Report drew a c l e a r d i s t i n c t i o n between instances which would i n v o l v e the plan and those that would not.  In p a r t i c u l a r ,  whenever an I n d i v i d u a l was t o be moved t o a new job with a proposed wage rate reduction, and h i s Job status was to be a l t e r e d due t o changes i n methods of work and production, the Automation and Wage P r o t e c t i o n P l a n would be a c t i v a t e d . In a d d i t i o n t o presenting t h i s p l a n , the Research D i r e c t o r 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 e i t h e r through formation of a manpower committee o r simply by a t r a n s f e r of information. I t was recommended that management acquaint the union w i t h the manpower outlook a t l e a s t 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 p r o v i s i o n f o r s i x months  1  advance n o t i c e on manpower d i s l o c a t i o n and a l s o p o s s i b l y encourage a general d i s c u s s i o n on a n t i c i p a t e d manpower adjustments f o r the year.  -  134  -  The Research Report a l s o recommended t h a t , although outside of the terms of reference of the Sub-Committee, there are s e v e r a l 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 p a t i o n of general manpower reductions should: ( 1 )  explore  the i n t e r p l a n t t r a n s f e r of employees w i t h i n Imperial O i l E n t e r p r i s e s ; ( 2 ) explore the s p e c i a l p o s i t i o n of workers who  have equipped themselves by t r a i n i n g and  f o r multi-purpose  experience  r o l e s i n the r e f i n e r y ; and ( 3 )  explore  the f a c i l i t i e s made a v a i l a b l e through the f e d e r a l Department of Manpower and I m m i g r a t i o n — i n  p a r t i c u l a r i t s ser-  v i c e s i n the f i e l d of placement, geographic m o b i l i t y and training. Although the recommendations were i n i t i a l l y r e ceived with some alarm and areas of disagreement d i d a r i s e , continued d i s c u s s i o n and q u a l i f i c a t i o n r e s u l t e d i n the J o i n t C o n s u l t a t i v e Committee accepting the p l a n i n February, 1 9 6 7 .  The Research Chairman was then c a l l e d upon  to d r a f t the necessary wording f o r Incorporation of the recommendations i n t o the new  c o l l e c t i v e agreements which  were being negotiated at the time. Graphic A r t s Industry of Toronto The Graphic A r t s Industry of Metropolitan Toronto f o r m a l l y e s t a b l i s h e d a J o i n t Union-Management Committee  - 135  -  under the auspices of the Manpower C o n s u l t a t i v e Service i n June, 1965o  Signing of a Manpower Assessment Incentive  Agreement was the r e s u l t of e f f o r t s made by the l o c a l r e presentative of the Manpower Consultative S e r v i c e .  The  Committee represented more than one hundred and f i f t e e n employers and eight u n i o n s — a l m o s t the e n t i r e Graphic A r t s Industry of Toronto. Although major t e c h n o l o g i c a l change had not been announced, the i n d u s t r y was i n a continuous s t a t e of modernization future,  and major changes were a n t i c i p a t e d i n the  A n e u t r a l consultant was chosen t o d i r e c t a Re-  search Sub-Committee, whose o b j e c t i v e s were t o assess:  (1)  the s p e c i f i c extent t o which t e c h n o l o g i c a l change may be introduced i n the Industry i n the foreseeable f u t u r e ; (2) the changes i n manpower s k i l l both i n q u a n t i t y and type which w i l l be required t o cope with t e c h n o l o g i c a l change; (3) j u r i s d i c t i o n a l r i g h t s of unions, employer h i r i n g pract i c e s , job and Income s e c u r i t y p r o v i s i o n s and other s i m i l a r f a c t o r s which may i n h i b i t adjustment w i t h i n 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 v a i l a b l e w i t h i n the Industry which are a v a i l able t o cope w i t h the a n t i c i p a t e d changes; and (5) the s k i l l s and p o t e n t i a l of employees p r e s e n t l y engaged i n the industry.  This Sub-Committee was t o a r r i v e a t conclusions  and develop recommendations f o r submission t o a l l i n t e r e s t ed p a r t i e s .  - 136 Through an extensive i n v e s t i g a t i o n of the i n d u s t r y and an a n a l y s i s of questionnaires sent to firms and employees an attempt was made to provide answers to the above queries.  Research c l e a r l y i n d i c a t e d that a l l sectors of  the p r i n t i n g i n d u s t r y had been s t e a d i l y undergoing technol o g i c a l change which was  expected to continue i n the f u t -  ure, and which would have permanent e f f e c t s both upon the s t r u c t u r e of the labour force and on the p a t t e r n of the industry.  These changes are most obvious i n the f i e l d  of  photo-composition w i t h a l l i t s r a m i f i c a t i o n s , i n c l u d i n g computerization; new and more e f f i c i e n t p l a t e s i n colour p r i n t i n g ; much f a s t e r presses; and other more e f f i c i e n t techniques  of m a t e r i a l s handling, binding processes,  In conjunction w i t h these changes, research  etc. indic-  ated a need f o r r a d i c a l upgrading of manpower s k i l l s .  The  Research D i r e c t o r 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 s t r e a m l i n i n g and upgrading which, the report recommended, could be accomplished through the e s t ablishment of a p r o p e r l y organized school f o r the i n d u s t r y . Study showed a need to reduce the time l a g between the Int r o d u c t i o n of new techniques and a c q u i s i t i o n of new Questionnaire  skills.  r e s u l t s i n d i c a t e d that the workers were  - 137 adequately motivated towards upgrading of t h e i r s k i l l s . The Research D i r e c t o r suggested that there were two v a l i d dimensions to a developing worker f e a r of r a p i d t e c h n o l o g i c a l change which, t h e r e f o r e , might i n h i b i t adjustment processeso  In the f i r s t case, the worker may  he i s incapable of f u l f i l l i n g the new of him. job may  feel  f u n c t i o n s required  In the second case, there i s apprehension that a not be a v a i l a b l e to him.  Questionnaire  r e s u l t s on  t h i s issue i n d i c a t e d that f i f t y per cent of the workers f e l t that some Income p r o t e c t i o n should be given to workers d i s p l a c e d by automation and changed processes.  Seventy  per cent of the workers f e l t that machines were indeed r e p l a c i n g 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 a t t i t u d e towards change i n the i n d u s t r y and a w i l l i n g n e s s 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 r i g h t s was dropped from the study agenda as the unions became more co-operative during the ensuing d i s c u s s i o n s .  I t was f e l t that mutual  d i s c u s s i o n or e l i m i n a t i o n by future merger would remove many of the t e c h n o l o g i c a l d i f f i c u l t i e s as they arose. t h i s regard a separate committee was  In  e s t a b l i s h e d i n the  Toronto area to work out a program by which merger of the various unions i n the graphic a r t s f i e l d could be  achieved.  The Research D i r e c t o r concluded that t e c h n o l o g i c a l  - 138 change would continue t o 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 o f f s e t by the demand f o r new s k i l l s which the automated processes would b r i n g i n t h e i r t r a i n . The J o i n t Committee f e l t that the recommended school should be d i r e c t e d by representatives of the employees and employers i n an attempt t o b r i n g i t i n t o c l o s e r c o - o r d i n a t i o n w i t h the requirements of the i n d u s t r y . Such a school would provide the b a s i s f o r a p p r e n t i c e s h i p , 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 a n a l y s i s , provide f o r the c o - o r d i n a t i o n of a l l t r a i n i n g schemes c u r r e n t l y a c t i v e i n the graphic a r t s i n d u s t r y i n the Metr o p o l i t a n Toronto area.  Without such a school, I t was  argued, one of the more important areas of O n t a r i o ^ economy would d r a s t i c a l l y s u f f e r by f a i l i n g to a t t r a c t the r e q u i r e d q u a l i t y of entrants i n t o 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 p r o p e r l y organized school f o r the i n d u s t r y .  As a r e s 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 d e t a i l e d information, p a r t i c u l a r l y w i t h regard to the t o t a l annual absorption i n t o the indust r y , the type, knowledge and s k i l l s which would be required and s e v e r a l other f a c t o r s which would a i d i n the determination of the s i z e and nature of the educational f a c i l i t y  - 139 to "be e s t a b l i s h e d .  Consequently, the Committee i s c a r r y -  ing out a d d i t i o n a l research i n an e f f o r t t o b r i n g these f a c t o r s i n t o sharper focus. V i c t o r i a Mechanical I n d u s t r i a l Relations A s s o c i a t i o n 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 A s s o c i a t i o n and the United A s s o c i a t i o n 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 i n t o a Manpower Assessment I n centive Agreement w i t h the Manpower C o n s u l t a t i v e Service i n J u l y , 1966.  The impetus behind t h i s agreement came from  the p a r t i e s " d e s i r e t o emulate a s i m i l a r study completed i n Vancouver. The Trustees, representing about three hundred workers, agreed t o 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 i n d u s t r y t o 1970 based on p r o j e c t i o n s of c o n s t r u c t i o n volume on Vancouver I s l a n d , from Duncan t o V i c t o r i a , as f o l l o w s : (1) an inventory of the present membership of Local 324 w i l l be undertaken by c r a f t , age, a d d i t i o n a l p r o f i c i e n c i e s o r s k i l l s , and by both c o n s t r u c t i o n 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 i n d u s t r y ; (3)  - 140 -  an assessment w i l l be made of the demand f o r s k i l l e d manpower i n the i n d u s t r y t o 1 9 7 0 ,  based on p r o j e c t i o n s of  c o n s t r u c t i o n volume i n the region, by s e c t o r s , and e s t i mates of mechanical c o n s t r u c t i o n manpower man-hour content, 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 o r 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 o f f e r e d r e garding e f f o r t s by the i n d u s t r y t o c o r r e c t any projected manpower demand/supply imbalance, i n c l u d i n g apprenticeship, recruitment, t r a i n i n g and m o b i l i t y .  This program i s  c u r r e n t l y near the f i n a l stages of completion. A s i m i l a r study i n Vancouver, i n v o l v i n g three thousand f i v e hundred workers, i s now completed and i n operation.  A q u a r t e r l y report i s published showing the  a n t i c i p a t e d needs of the i n d u s t r y and what r e t r a i n i n g w i l l be required t o meet the forecasted p r o j e c t i o n s . V.  SUMMARY  The government sponsbred J o i n t study committee has been r e l a t e d as the t h i r d step i n a sequence of manpower adjustment approaches that attempt to overcome the complex problems associated w i t h t e c h n o l o g i c a l 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 a t once s a t i s f i e s the p r i n c i p l e s necessary t o c o n s t r u c t i v e a c t i o n and  - 141 -  the requirements of the f r e e c o l l e c t i v e bargaining system. The government I s s t r i v i n g , through various incenti v e s , t o motivate companies and unions to solve the problems of manpower displacement i n advance of any c r i s e s developing.  The i n f o r m a t i o n presented i n t h i s chapter,  leavened w i t h the knowledge brought f o r t h from Chapters II and III,  provides the necessary background m a t e r i a l f o r  evaluating the r o l e of the Manpower C o n s u l t a t i v e S e r v i c e 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 e v a l u a t i o n which w i l l a l l o w f o r recommending improvements, not over-emphasizing any shortcomings of the Manpower C o n s u l t a t i v e S e r v i c e .  The purposes, as s t a t e d i n  Chapter I , w i l l he f u l f i l l e d by f i r s t a n a l y z i n g , contrast i n g and comparing the s e l e c t e d cases on manpower a d j u s t ment t o determine i f a eommon p a t t e r n of case exists.  development  The search f o r such a p a t t e r n w i l l endeavour to  put the Manpower Consultative Service i n context, t o expose i t s strengths and/or weaknesses and t o e s t a b l i s h i f any s i m i l a r i t y e x i s t s i n approaches t o the cases that could serve as a u s e f u l guide i n developing f u t u r e programs. The next major s e c t i o n of t h i s chapter w i l l examine the Manpower C o n s u l t a t i v e Service methodology i n an attempt t o o f f e r recommendations f o r overcoming any weaknesses exposed I n the i n t e g r a t e d a n a l y s i s .  Thus, the form-  u l a t e d p r i n c i p l e s and approach of the Manpower Consulta t i v e Service w i l l be examined i n the l i g h t of the empiri c a l framework and case summaries presented.  F i n a l l y , the  case r e s u l t s w i l l be examined t o determine I f the Manpower  •- U3 C o n s u l t a t i v e Service i s f u l f i l l i n g i t s r o l e i n enhancing an a c t i v e n a t i o n a l manpower policy,. I n each case recommendations w i l l be made t o strengthen or otherwise change the present approach t o conform w i t h the r a t i o n a l e of an a c t i v e manpower p o l i c y presented a t the beginning of Chapter IV. II.  INTEGRATED CASE ANALYSIS  The method t o be used i n a r r i v i n g a t the proper perspective of the Manpower C o n s u l t a t i v e 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 i n t r o d u c i n g the s e l e c t e d case studies i n Chapter IV. The continuum i s e s t a b l i s h e d t o i n d i c a t e the p a t t e r n of adjustment problems and the various s o l u t i o n s that are a v a i l a b l e depending on the l o c a t i o n of the case study along the continuum.  The respective r o l e s of  the union and government i n p r o v i d i n g f o r manpower a d j u s t ment w i l l a l s o be analyzed and then added to the continuum„ The aim of the above a n a l y s i s i s t o a l l o w f o r development of a s i m p l i f i e d , p r e d i c t i v e model of manpower adjustment such that the Manpower Consultative Service can be put i n context, and otherwise portray the strengths and/or weaknesses 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 f o r c e adjustment are d i s c e r n i b l e and can  - 144  be placed along a continuum.  -  I n the f i r s t phase of the  continuum p l a n t closure i s imminent and there i s n o t i c e able geographic and/or I n d u s t r i a l redundancy.  The prime  v a r i a b l e w i t h i n t h i s phase i s the degree of redundancy and i t can be viewed as large scale d i s a s t e r , t y p i f i e d by geographical redundancy, from the lower end of the continuum to a l e s s severe i n d u s t r i a l redundancy moving r i g h t to the end of the phase.  For example, a plant shutdown  that c r i p p l e s a community becomes a n a t i o n a l d i s a s t e r area and would s t a r t the continuum.  At the r i g h t end of phase  one a p l a n t shutdown may only r e s u l t i n a small o v e r a l l e f f e c t on the community a t l a r g e and the d i s p l a c e d workers may be more r e a d i l y absorbed.  Domtar Pulp and Paper, P o r t -  neuf, and Mount Royal Rice M i l l s are ease examples of p l a n t closures that are s i t u a t e d i n t h i s phase.  In the  former case the welfare of the small community of Portneuf i s severely a f f e c t e d and geographical m o b i l i t y i s deemed axiomatic.  Mount Royal a l s o involves plant closure but  i t i s placed f u r t h e r to the r i g h t of phase one on the continuum by v i r t u e pf i t s l o c a t i o n i n Montreal.  Although  p l a n t closure a t 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 p o s i t i o n s i n Montreal and geographic worker m o b i l i t y i s not so essential. I f a work f o r c e Is h i t by occupational  redundancy,  there Is a p o s s i b i l i t y of s o l u t i o n by i n t e r n a l adjustment  = 145  -  through the plant or I n t e r p l a n t , 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 u s u a l l y centers around the i n t r o d u c t i o n of new processes that w i l l l i k e l y r e s u l t i n work f o r c e reductions but which are i n c r e a s i n g l y 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 o f f 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, t h e r e f o r e , p r o v i s i o n must be made t o allow f o r some overlapping of these phases,  Canadian P a c i f i c  A i r Lines and Canadian N a t i o n a l Railways are examples of cases l y i n g a t the lower end of phase two.  While Canadian  P a c i f i c has a much lower number of a f f e c t e d workers than does Canadian N a t i o n a l , the a b i l i t y to e f f e c t an i n t e r n a l adjustment plan i s b e l i e v e d t o be greater w i t h Canadian N a t i o n a l than With Canadian P a c i f i c , Moving r i g h t along phase two the prime v a r i a b l e becomes the i n c r e a s i n g ease w i t h which i n t e r n a l adjustment is possible,  Manitoba R o l l i n g M i l l s and Domtar, Windsor  are examples of cases i n v o l v i n g an Increasing degree of i n t e r n a l adjustment and a decreasing degree of work f o r c e reduction,  Canadian N a t i o n a l Railways, Manitoba R o l l i n g  M i l l s and Domtar, Windsor a l s o i n v o l v e decreasing  degrees  - 146  -  of o v e r a l l e f f e c t on t h e i r communities  1  labour f o r c e .  While Canadian N a t i o n a l involves much more use of e x t e r n a l 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 r e s u l t s i n t o t a l work f o r c e 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 p l a n t closure i n phase one to the p o s s i b l e complete  readjustment of work-  ers a t the r i g h t end of phase two. There i s another p o s s i b l e overlap between phase two and three because imminent l a y - o f f i n phase two  may  not m a t e r i a l i z e or, on the other hand, f u t u r e 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 l a y - o f f 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 f e a r and u n c e r t a i n t y i n the minds of the workers about t h e i r future p o s i t i o n s .  In the B r i t i s h Columbia Towing  Industry work force reductions over the years have been made on a continuing b a s i s l e a v i n g 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 a l s o been l e f t w i t h a f e e l i n g of u n c e r t a i n t y . As planning of manpower requirements extends f a r t h e r i n t o the f u t u r e , the prime v a r i a b l e becomes an  _  14?  -  Increasing degree of s t a b i l i t y i n the work f o r c e and d i s placement becomes more remote a t the r i g h t end of the continuum.  I n the Graphic A r t s case an attempt was made t o  d e l i n e a t e the f u t u r e changes expected and consequently prepare the work f o r c e by p r o v i d i n g i n advance f o r needed adjustments t o meet the changing technology,. I n the Plumbing I n d u s t r y t h i s example i s being c a r r i e d t o the u l t i m a t e through q u a r t e r l y attempts a t updating ten year f o r e c a s t s of supply/demand f a c t o r s i n the industry's work force„  Such f u t u r e manpower planning should provide easy  adjustment t o any imbalances created i n the labour market. Three Stages of Union Defence There i s considerable advantage t o viewing the j o i n t committee cases as s i t u a t e d along such a continuum. Such an a p p r a i s a l i n d i c a t e s the p o s s i b i l i t y that c e r t a i n oases are amenable t o c o l l e c t i v e b a r g a i n i n g adjustment techniques, c e r t a i n cases are more amenable t o government adjustment s e r v i c e s and p o s s i b l y , 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 t o c o n t r o l the pace of t e c h n o l o g i c a l innovation . 1  These three stages of union defence p a r a l l e l  See Chapter I I , The Desired Mix S e c t i o n , p. 5 0 .  - 148 q u i t e r e a d i l y the three phases that the cases viewed above appear t o f o l l o w .  Therefore, s t a r t i n g i n reverse from the  r i g h t 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 t o i n c r e a s i n g the economic u n i t of opport u n i t y t o severance as worker displacement increases from job  I n s e c u r i t y t o i n t e r n a l adjustment t o overt l a y - o f f . P o s s i b l y the u l t i m a t e i n manpower planning t o date  Is provided by the Graphic A r t s Industry of Toronto and the  Plumbing Industry of B r i t i s h Columbia cases which are  placed a t the r i g h t end of a continuum of union defence. In these cases j o i n t research i s attempted by representa t i v e s of management and union t o provide f o r manpower adjustment i n the i n d u s t r y i n advance of t e c h n o l o g i c a l 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 s e r ious t o the i n d u s t r y and the worker;  I t i s d o u b t f u l , how-  ever, i f unions i n general w i l l be a b l e to demand such a c t i o n on a l a r g e s c a l e .  The more competitive environment  expected i n the f u t u r e w i l l probably preclude most enterp r i s e s from d i v u l g i n g the required information from whioh to make such f o r e c a s t s .  However, i f f i r m s i n an i n d u s t r y  can combine i n t o a s s o c i a t i o n s as they have i n the above i n d u s t r y oases, then the p o t e n t i a l does e x i s t f o r a high degree of advance manpower adjustment w i t h a minimum of c r i s e 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 t o "...seek c o n t r a c t u a l p r o v i s i o n s which p r o h i b i t l a y o f f s of e x i s t i n g personnel, or p r o h i b i t reduction i n wage rates f o r Incumbents ( r e d - c i r c l i n g ) or at l e a s t f o r s e n i o r employees, or freeze a s p e c i f i c manning schedule during the l i f e of the agreement. The union demand f o r reduction i n hours, . . . i s p l a i n l y . . . f o r the sharing of scarce jobs. Supplementary unemployment b e n e f i t s are seen as p r o v i d i n g the employer w i t h an i n c e n t i v e f o r the s t a b i l i z a t i o n of employment. 1  1  The renewed i n t e r e s t i n earnings s t a b i l i z a t i o n may represent the second half-stage ( w i t h i n stage one) a f t e r j o b p r o t e c t i o n . [For example the guaranteed annual wage and the philosophy of s a l a r i e s f o r a l l workers.]...In order t o maintain earnings some unions have proposed a redesigning of wage payment and job c l a s s i f i c a t i o n systems i n accordance w i t h the r a d i c a l l y a l t e r e d work s p e c i f i c a t i o n s of the automated job„" x  Stage one as espoused by Barbash appears t o match s i g n i f i c a n t l y w i t h phase three of work f o r c e adjustment o r the f u t u r e planning phase.  As the planning phase i s f r e e  of any r e a l c r i s i s , the union demands a r e based on r e l a t i v e l y high s e c u r i t y , and, t h e r e f o r e , methods of maintaining e x i s t i n g job holders i n t h e i r jobs a t 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 e x h i b i t the above c h a r a c t e r i s t i c s q u i t e adequately. Towing Industry's pre-occupation  The B r i t i s h Columbia w i t h the manning scales of  vessels i s a d i 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 s e c u r i t y by r e q u i r i n g vessels t o be manned w i t h 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 p r o v i s i o n s f o r i t s members. In t h i s case u n c e r t a i n t y e x i s t e d i n the minds of the workers but a t t r i t i o n had more than provided f o r an adequate reduction i n work f o r c e .  Therefore, wage maintenance  provided the s e c u r i t y the workers needed t o calm a n x i e t i e s about any approaching t e c h n o l o g i c a l change. In stage two—where Barbash t h i n k s most of the unions a r e — "...the union s t r a t e g y s h i f t s . . . t o w a r d moderating the impact of displacement through contract clauses which seek t o ease the period of t r a n s i t i o n , .. .unions seek t o widen the s e n i o r i t y u n i t to take i n i n t e r p l a n t , intercompany, arid i n t e r area t r a n s f e r s as a matter of r i g h t f o r d i s p l a c e d workers. With i n c r e a s i n g frequency unions are a l s o asking i n negotiations f o r r e l o c a t i o n allowances and r e t r a i n i n g . ...unions a r e asking f o r the r i g h t to p a r t i c i p a t e i n some systematic fashion i n the p r o j e c t i o n of t e c h n o l o g i c a l change, plant shutdown, o r r e l o c 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 n o t i c e and advisory c o n s u l t a t i o n . More elaborate a r e the j o i n t c o n s u l t a t i o n programs with research functions and with p r o v i s ions f o r p a r t i c i p a t i o n of p u b l i c or p r i v a t e third parties." 1  Stage two p a r a l l e l s the second phase that was developed from the previous a n a l y s i s of I n t e r n a l adjustment I b i d . , pp. 47-48.  - i i n the case s t u d i e s .  5  l -  Por example, as the p o 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 t o recognize that t o a c e r t a i n degree job and earnings a t t r i t i o n i s i n e v i t a b l e and the s h i f t of emphasis by the union i s toward measures t o cushion the shock of d i s placement.  P o s s i b l y the most Important aspect of concern  to t h i s report i n t h i s second stage i s that advance n o t i c e and j o i n t research are introduced as an e f 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  l a r g e r p o r t i o n of i t s workers were t o be d i s p l a c e d but  the modernization was such t h a t many of the workers w i l l be reassigned t o new p o s i t i o n s .  The union's approach i s  one of ensuring a maximum of i n t e r n a l adjustment by expanding as f a r as p o s s i b l e the u n i t of economic opportunity.  In the f i n a l a n a l y s i s , a case such as Domtar,  Windsor, p o r t r a y s an adjustment procedure whereby the union accomplishes i t s o b j e c t i v e of t o t a l i n t e r n a l a d j u s t ment i n the face of major t e c h n o l o g i c a l change, through planning techniques that completely reabsorb the e n t i r e work f o r c e . As stage two of the continuum reaches f u r t h e r l e f t , the union's p o s i t i o n becomes more defensive and i t takes recourse t o members that a r e being r e t a i n e d to help provide the required sanctions on management a c t i o n s . u e n t l y , i n the two more d i f f i c u l t cases of i n t e r n a l  Conseq-  - 152  -  adjustment In phase two the union must i n c r e a s i n g l y r e l y on severance w h i l e s t r i v i n g f o r maximum i n t e r n a l a d j u s t 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 e x i s t s 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 p o s s i b l e avenues w i t h i n the company are p r a c t i c a l f o r absorbing those remaining.  I n the Canadian N a t i o n a l case many of the  stevedores have been r e t r a i n e d as crew members on the new v e s s e l s 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 a d j u s t ment decreases as a p o t e n t i a l adjustment method and severance payments become the only l i n e of defence l e f t to the unions i n h e l p i n g to cushion the impact on the workers. The Domtar, Windsor and Canadian N a t i o n a l adjustment procedures do have the advantage of recourse to other opera t i n g areas i n expanding the economic u n i t .  As Canadian  N a t i o n a l must r e l o c a t e 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 l e s s f e a s i b l e and geographic m o b i l i t y 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 c o n c e p t i o n — turns on the e x p l i c i t r e c o g n i t i o n of the p r i n c i p l e that employees have vested r i g h t s i n t h e i r jobs and that the l o s s of these jobs and job r i g h t s 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 e s t a b l i s h e d c o l l e c t i v e bargaining p r o v i s i o n s through severance pay, d i s m i s s a l pay, or t e r m i n a l payments ( i n the nature of l i q u i d a t i o n  -  153  -  of prorated r i g h t s i n unused v a c a t i o n and s i c k l e a v e ) , and more r e c e n t l y i n the augmenting of supplementary unemployment b e n e f i t s by a separation-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 coe x i s t w i t h stage two, i s an attempt by the union t o 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 r e t u r n f o r which the employer I s permitted g r e a t e r freedom i n deployment of manpower.  I n the most c r i t i c a l phase of  work f o r c e r e d u c t i o n , where p l a n t c l o s u r e i s imminent, the union w i l l l i k e l y make some attempt a t r e l o c a t i o n to another p l a n t o r area, but i f t h i s i s not f e a s i b l e then f i n a n c i a l settlement i s the n a t u r a l p r o g r e s s i o n . Thus, stages two and three of union defence o r stage three alone i s q u i t e compatible w i t h the f i r s t phase of work f o r c e reduction,, This union r e a c t i o n appears t o evolve i n the cases presented.  Por example, i n the Domtar, Portneuf case the  union made demands f o r severance p r o v i s i o n s and then attempted as f a r as p o s s i b l e t o expand i t s eoonomie u n i t of opportunity. The union's demand f o r severance tempered w i t h r e t r a i n i n g and r e l o c a t i o n i s a l s o 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 i t i o n i s more l i k e l y a t the meroy of the s o c i a l conscience  1  Ibld.,  p.  48.  -  154  -  of management and whatever pressure t h a t the p u b l i c may exert In the union's favour. Co-ordination of Manpower Services The t h i r d area f o r a n a l y s i s , and indeed the major emphasis of t h i s r e p o r t , centers on the manpower a d j u s t ment s e r v i c e s provided by the government and co-ordinated by the Manpower Consultative Service as an a i d t o labour and management.  The governmental i n f l u e n c e on the a d j u s t -  ment process must be viewed i n two p a r t s .  I n the f i r s t  p l a c e , management a c t i o n i s not f r e e of the c o n s t r a i n t s of r e g u l a t o r y l e g i s l a t i o n such as that which governs m i n i mum wages, maximum hours, e t c .  Technological change has  induced an added i n t e r e s t 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 t o the inherent l i m i t a t i o n s on the bargaining process.  A c c o r d i n g l y , Issues such as r e l i e v i n g the pro-  blems of d i s t r e s s e d 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 d e a l i n g w i t h c r e a t i o n of jobs are considered by unions t o 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 r e g u l a t i o n , there i s p r o v i s i o n f o r many r e a c t i v e mechanisms that f a c 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 , c o u n s e l l i n g and p l a c e ment f a c i l i t i e s a r e s e r v i c e s by which the government i n -  -  fluences the proposed  155  adjustment  -  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,  In addition, the  Manpower C o n s u l t a t i v e S e r v i c e a n d s i m i l a r s e r v i c e s a r e provided i n an attempt  t o e n c o u r a g e more  sophistication  and m a t u r i t y i n labour-management r e l a t i o n s , a s w e l l a s t o co-ordinate the other f a c i l i t a t i n g In  services  p h a s e one o f t h e c o n t i n u u m  g a i n something  more t h a n a s e v e r a n c e  f a c e o f economic c r i s i s  i t will  0  the union attempts t o settlement but i nthe  have l i t t l e  success.  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 m e a s u r e o f w o r k e r adjustment  a t t h i s end o f t h e c o n t i n u u m  r e c o u r s e t o t h e government s e r v i c e s .  by t a k i n g  direct  P a s t experience has  shown t h a t p r i v a t e company a n d u n i o n a t t e m p t s a t r e t r a i n ing  a n d r e l o c a t i o n h a v e met w i t h l i t t l e  success ,  P o r t n e u f a n d 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  1  Domtar,  procedures  h a v e 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 a n d p l a c e m e n t vices. aid  I n a d d i t i o n , Domtar, P o r t n e u f attempts  f o r a r e a redevelopment  ser-  t o seek  some  w h e r e a s Mount R o y a l recommends  retraining. There i s l i t t l e a c t i o n a s t h e continuum adjustment  phase,  change i n government  facilitating  moves f u r t h e r i n t o t h e i n t e r n a l  Canadian P a c i f i c A i r L i n e s study pro-  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  Po 74,  Chapter I I I , United States Experience S e c t i o n ,  -  156  r e l o c a t i o n and replacement s e r v i c e s .  The Canadian Nation-  a l case not only attempts t o use a l l of these s e r v i c e s but e s t a b l i s h e s s p e c i a l research studies i n an attempt t o 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 I n dustry and Imperial O i l cases a l l make use of, o r a t l e a s t examine the p o t e n t i a l use of, these s e r v i c e s i n enhancing t h e i r adjustment process.  The only change i n p r o v i s i o n  of government s e r v i c e s across the whole continuum i s e v i d ent a t the extreme r i g h t end of the s c a l e .  Here, advance  planning i s developed t o such a stage that p r o v i s i o n f o r r e l o c a t i o n i s not considered  necessary because the supply/  demand f a c t o r s have been a n t i c i p a t e d i n advance.  Because  of t h i s , p r o v i s i o n f o r t r a i n i n g Is s u b s t i t u t e d f o r r e l o c a t i o n as a necessary s e r v i c e .  Consequently, the Graphic  A r t s and the Plumbing Industry oases concentrate on couns 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 e f f e c t i n g t h e i r recommendations f o r future work force adjustments. Variable  Factors The above a n a l y s i s has v e r i f i e d the f a c t t h a t , a t  l e a s t on a broad s c a l e , there i s an a c t i o n - r e a c t i o n pattern evident I n the cases s t u d i e d .  Obviously, no one i s going  to suggest that Domtar, Portneuf employees should demand wage of job maintenance.  On the other hand, p r o v i s i o n f o r  a m o b i l i t y i n c e n t i v e would do l i t t l e t o s a t i s f y the workers  - 157 at Imperial O i l . C l o s e r examination of some of the v a r i able d e t a i l s of the s e l e c t e d 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 l o o k i n g f o r a more s o p h i s t i cated p a t t e r n . The type or degree of t e c h n o l o g i c a l change being introduced can have a varying e f f e c t . The e f f e c t , however, can a l s o 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 e i t h e r a n t i c i p a t e d or being i n s t a l l e d i n the Graphic A r t s 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 L i n e s .  On the  other  hand, the B r i t i s h Columbia Towing Industry and the o i l i n d u s t r y are experiencing c o n t i n u a l changes to more e f f i cient  operations. The type of e n t e r p r i s e involved i n the cases i s  extremely v a r i e d .  The studies involve p a r t i c i p a t i o n by  e n t i r e i n d u s t r i e s i n a s p e c i f i o area such as the Graphic A r t s and Plumbing cases, p a r t i a l i n d u s t r i e s as i n the B r i t i s h Columbia Towing Industry case, m u l t i - o p e r a t i o n a l e n t e r p r i s e s such as the Canadian N a t i o n a l Railways, Domt a r Pulp and Paper and Imperial O i l cases, s u b s i d i a r y organizations such as the Manitoba R o l l i n g M i l l s case and s i n g l e 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 p a r t i e s 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, t o the c o n s t r u c t i v e approaches taken In the Plumbing and Graphic A r t s Industry  cases.  A l s o , the number of unions involved i n a s i n g l e case can vary g r e a t l y .  There were eight unions p a r t i c i p a t i n g i n  the Graphic A r t s Industry case, four i n the B r i t i s h Columb i a 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 r a m i f i c a t i o n s of t h i s type of examination precludes the development of any definable p a t t e r n beyond what has been i n d i c a t e d by the above analysis.  Studies of the many plans developed i n the United  States have shown that each adjustment procedure must be tailor-made t o 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 f u r t h e r attempt w i l l be made i n t h i s to develop a case p a t t e r n beyond that  study  presented.  The a n a l y s i s has developed thus f a r with the i n i t i a l assumption that other i n f l u e n c i n g forces such as union strength, economic environment, the laws w i t h i n which deci s i o n s must be made and other v a r i a b l e s were to be set aside temporarily.  A f i n a l a d d i t i o n t o the a n a l y s i s ,  t h e r e f o r e , must be the I n t r o d u c t i o n of environmental f a c t o r s and l e g i s l a t i o n to encompass a l l the other forces  - 159  -  that have an e f f e c t on any outcome that would normally he anticipated. In sum, t h e r e f o r e , the conclusion of the case a n a l y s i s i s that a broad s i m p l i f i e d framework or continuum i s discernible.  Across such a continuum, three r e l a t i v e l y  c l e a r phases of management a c t i o n emerge and they are defended by three r e l a t i v e l y d i s t i n c t union r e a c t i o n s . Government support i s a l s o o f f e r e d to help to f a c i l i t a t e worker adjustment.  Government s e r v i c e s a r e , f o r the most  p a r t , general throughout the continuum and are c a l l e d upon t o the extent that they enhance the o v e r a l l a d j u s t ment process. The Manpower C o n s u l t a t i v e Service i n Context Whereas the cases examined show the r e s u l t of management a c t i o n , the three stages of defence are seen as union r e a c t i o n .  However, the i n i t i a t i v e f o r i n t r o d u c i n g  t e c h n o l o g i c a l improvements t o maintain a dynamic enterp r i s e l i e s w i t h management. react . 1  aot.  Managements aot and unions  C o l l e c t i v e b a r g a i n i n g by I t s very nature lags the  Consequently, the process i s i n e v i t a b l y slow and r e -  presents adjustments or l a c k of adjustments to events that have a l r e a d y occurred. Management i s i n the p o s i t i o n of knowing i n advance  Block, Joseph W.  Ojg. C i t . . p. 137.  -  160  -  what changes a r e going t o take place and how these changes are going to a f f e c t employees.  Only management i s i n a  p o s i t i o n t o make an a n a l y s i s t o determine what a l t e r n a t i v e s can be provided w i t h i n the e n t e r p r i s e f o r those d i s p l a c e d . Management a c t i o n upon i n t r o d u c i n g t e c h n o l o g i c a l change can be viewed w i t h i n the above framework as being  radical  or conservative from one end of the continuum t o the other. The a c t i o n i s deemed r a d i c a l t o the extent that i t seeks to overturn the p r e v a i l i n g s t r u c t u r e of work r u l e s and " l o c a l p r a c t i c e " clauses i n one concentrated  attack.  On  the other hand, conservative a c t i o n i s viewed as no l e s s concerned with union obstacles t o productive  efficiency,  but i t i s r e c o n c i l e d to the s t r a t e g y that progress i n t h i s area w i l l have t o be made g r a d u a l l y by acquiescence r a t h e r than by d i r e c t f r o n t a l a t t a c k . 1  The foregoing a n a l y s i s can be used as the b a s i s f o r the development of a s i m p l i f i e d a c t i o n - r e a c t i o n 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 r e a c t i o n required t o o f f s e t p a r t i c u l a r management a c t i o n and places the Manpower C o n s u l t a t i v e Service f u n c t ion  i n context as i n t e r p r e t e d i n t h i s a n a l y s i s . This report i s i n t e r e s t e d i n the continuum t o the  extent that the Manpower C o n s u l t a t i v e Service can co-  53.  See Chapter I I , The Desired Mix S e c t i o n , pp. 52-  T  Environmental  Management Action  Union Reaction  Government Reaction  Manpower Consultative Service  Factors  and  I n t e r n a l Adjustment  Plant Closure  Legislation Future Planning  S e v e r a n c e I n c r ea 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 J o i n t  S t u d y  Counselling Retraining Training Placement  C o m m i t t e e s  FIGURE 1 ACTION-REACTION MODEL  ON 1  - 162 ordinate government manpower s e r v i c e s and j o i n t labourmanagement 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 C o n s u l t a t i v e S e r v i c e process a t both ends of the continuum.  On the r i g h t end, f o r example, the f u t u r e  plans of management may be unknown to the union and there w i l l be l i t t l e i n c e n t i v e or pressure towards j o i n t study. In t h i s area the government can only foeus a t t e n t i o n on encouraging managements to p r i o r planning and to give advance n o t i f i c a t i o n of any a n t i c i p a t e d changes to the workers concerned.  On the l e f t end of the eontinuum, a  s i n g l e company may close I t s p l a n t 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. views the use of J o i n t study committees as f a l l i n g the second stage of union defence.  He within  Dr, Dymond emphasized  a f u r t h e r c o n s t r i c t i o n when he suggested that the p a r t i e s normally enter a j o i n t approach only as a l a s t r e s o r t 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 t o pressure management i n t o j o i n i n g w i t h them i n future planning. And, most important of a l l , the Manpower C o n s u l t a t i v e S e r v i c e approach i s l i m i t e d to those cases where the p a r t i e s deem I t a d v i s a b l e to have a t h i r d p a r t y  - 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 C o n s u l t a t i v e Service approach there are a l s o the l i m i t a t i o n s t h a t were voiced about c o l l e c t i v e bargaining i n Chapter I I ,  '  The Manpower C o n s u l t a t i v e S e r v i c e i n the presented  context  i n the model, and f u r t h e r l i m i t e d as above, i s  seen to have the f o l l o w i n g a p p l i c a b i l i t y : (1)  i t facilit-  ates manpower adjustment by c o - o r d i n a t i o n of the government's manpower s e r v i c e s 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 f o r c e the j o i n t approach; (3)  i t i s a v a i l a b l e where labour-management acc-  ommodation makes i t untenable f o r the p a r t i e s to c a r r y on i n t h e i r present s t a t e of r e l a t i o n s ; and (4)  i t is avail-  able where the p a r t i e s b e l i e v e some advantage i s to be gained by the use of a t h i r d p a r t y . One  other noteworthy s i m i l a r i t y i n the cases stud-  i e d 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 a d j u s t ment p l a n .  This issue i s of paramount importance i n deter-  mining an emergent p a t t e r n because most of these academic researchers have a s i m i l a r background w i t h i n which they approach the manpower problem.  In general, a review of  the cases i n d i c a t e s 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  i n t o more diverse solutions,,  recognized  I t must a l s o be  that the s o l u t i o n s to Canadian cases are, f o r the most p a r t , l i m i t e d to the degree of s o p h i s t i c a t i o n displayed by these research chairmen, as they normally are respons i b l e f o r the development of the adjustment p l a n . In summary, the model that has emerged from a g e n e r a l i z e d a n a l y s i s of the case s t u d i e s , leavened w i t h the theory developed i n e a r l i e r chapters, provides a pote n t i a l device f o r c a t e g o r i z i n g the approach to be used by the Manpower C o n s u l t a t i v e 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 p a t t e r n emerging i n the Manpower C o n s u l t a t i v e Service cases that can be used i n approaching f u t u r e adjustment problems.  I t can be concluded  from the above a n a l y s i s that the Manpower Consultative Service cases w i l l normally i n v o l v e 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 d e t a i l e d adjustment plan t a i l o r made to i t s p a r t i c u l a r circumstances.  A l s o the degree of  s o p h i s t i c a t i o n evident i n each adjustment procedure w i l l considerably i n f l u e n c e d by the e f f o r t s of the  research  be  - 165 director,, There i s a second conclusion that can be drawn from the above analysis„  C l e a r l y , the r o l e of the Manpower  C o n s u l t a t i v e Service i n e f f e c t i n g manpower adjustment suff e r s from the many l i m i t a t i o n s which have been r e l a t e d aboveo  I f the Manpower C o n s u l t a t i v e Service approach i s  to become an e f f e c t i v e wide-ranging approach i n the coo r d i n a t i o n of manpower s e r v i c e s t o f a c i l i t a t e manpower adjustment as i t s o b j e c t i v e of enhancing the n a t i o n a l manpower p o l i c y would r e q u i r e , 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;. III.  EXAMINATION OF THE MANPOWER CONSULTATIVE SERVICE METHODOLOGY  The second purpose of t h i s report i s t o examine the Manpower C o n s u l t a t i v e Service methodology i n an a t t empt t o determine i f the p r i n c i p l e s and approach are adequate w i t h respect t o the s t a t e d o b j e c t i v e s of the Serv i c e , and whether they are being adhered t o i n p r a c t i c e . A c c o r d i n g l y i t w i l l be u s e f u l t o review the p r i n c i p l e s and approach that are e i t h e r r e s t r i c t i n g the r o l e of the Serv i c e or otherwise p r o v i d i n g an inadequate base on which t o f u l f i l l I t s o b j e c t i v e of enhancing an a c t i v e manpower policy. 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 Cons u l t a t i v e Service provide f o r advance research and  - 166  -  assessment; j o i n t c o n s u l t a t i o n to remove obstacles to cons t r u c t i v e a c t i o n ; and, e f f e c t i v e co-ordination of e x i s t i n g government s e r v i c e s a t 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 a c t i v e n a t i o n a l manpower p o l i c y .  How-  ever, the context w i t h i n which the Manpower Consultative Service emerged i n the model of the l a s t s e c t i o n 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  r e a p p r a i s a l i f the Service i s  to be strengthened and consequently achieve i t s stated objectives. A c t i v e Versus Passive Approach The Manpower C o n s u l t a t i v e S e r v i c e a c t s 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 a c t -  ive and to be e f f e c t i v e cannot be merely responsive.  Mr.  M o r r i s , Executive Vice-President of the Canadian Labour Congress, has stated that the Manpower Consultative Service i s "A case i n p o i n t . . . . I t s terms of reference, as I understand them, do not permit i t to go a c t i v e l y i n t o 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 f i r m and the union, and then the Service i s to respond w i t h a d v i c e . " 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 t a k i n g an a c t i v e r o l e and s t a t e s that to date "the tone of our whole manpower p o l i c y i s p a s s i v e . "  general  2  Mr. Morris a l s o quotes Professor Wight Bakke of Yale U n i v e r s i t y who  stated:  "Merely responsive a c t i o n Is bound to be l a c k i n g i n focus and d i r e c t i o n , because the purposes and motivations s t i m u l a t i n g the demands to which the response Is made have no uniform nature.'^ I f the argument f o r an " a c t i v e p o l i c y " r e f e r s to one where the Manpower C o n s u l t a t i v e Service seeks to e s t a b l i s h j o i n t research by attempting to encourage the p a r t i e s 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 i n d i c a t e s that most of them have been nurtured to f r u i t i o n by the Manpower C o n s u l t a t i v e Service r e p r e s e n t a t i v e .  Although the r e l a t e d p r i n c i p l e s  do suggest that labour and management must " d e s i r e " the  ^ M o r r i s , Joe. "Economic and Technological Change In the S i x t i e s - I m p l i c a t i o n s f o r Manpower Adjustment Discussion "., Labour-Management Conference on Economic and Technological Change In the S i x t i e s , pp. 100-101. 1  2  I b i d . o p.  3LQCO  Cit.  101.  -  establishment  168  -  of a j o i n t research committee under the aegis  of the Manpower Consultative S e r v i c e , t h i s does not prevent a c t i v e encouragement of such endeavours.  Nevertheless,  the  government i s n e c e s s a r i l y constrained from " i n t e r f e r e n c e " 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 a l l - i m p o r t a n t l i n e that d i s t i n g u i s h e s between encouraging and i n t e r f e r i n g i n the p r i v ate domain. A p e r t i n e n t government viewpoint  suggests that:  "Enterprises tend to be pre-oocupied w i t h t h e i r own i n t e r n a l problems and may even f e a r the i n volvement of government agencies as p l a c i n g 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 i n t e r e s t s of the e n t e r p r i s e . " 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 e n t e r p r i s e s c o - o r d i n a t i o n of p r i v a t e and p u b l i c a c t i v i t i e s .  into  In t h i s  regard Dr. Dymond has s t a t e d : " 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 p r o v i d i n g 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 t o encompass the great v a r i e t y of arrangements which must be made to.aohieve an adequate degree of co-ordination.'" 2  Dr. Crispo emphasized the f a c t that s t a t e c o n t r o l l e d  ^Dymond, W.R. "Co-ordination of A c t i v e Manpower P o l i c y In 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 " . 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 w i t h a high degree of caution when he s t a t e d : "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 t h i n g we should say i s why i s n ' t the market t a k i n g care of i t ? . . . l e t ' s do that before we introduce some complicated p o l i c y which w e ' l l never be able to get r i d of....Once you create something you never get r i d of it,..we must concentrate on programs that complement and supplement the market by making i t perform more e f f e c t ively, ' 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 a t l e a s t 9  impracticable.  9  very d i f f i c u l t — i f  not  On the contrary, government a c t i o n would  reap more u s e f u l r e s u l t s by f a c i l i t a t i n g the adjustment process through ensuring adequate p r o v i s i o n f o r c o u n s e l l ing, t r a i n i n g , r e t r a i n i n g , placement and m o b i l i t y . Consequently, the Manpower C o n s u l t a t i v e Service has been accorded a most u s e f u l purpose i n encouraging and p r o v i d i n g c o - o r d i n a t i o n of these f a c i l i t a t i n g s e r v i c e s . However, i t has been shown to be o v e r l y 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  s o l v i n g the complexities of worker adjustment would be  im-  p o s s i b l e i n Canada due to the advocated p o l i c y of f r e e  C r i s p o , John H.G. "Economic and Technological Change In the 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 " . Labour-Management Conference on Economic and Technglpglcal Change i n the S i x t i e s , p. 123. x  -  170  -  e n t e r p r i s e and f r e e 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 d i r e c t i n t e r v e n t i o n must be  Introduced,  The Requirement of Advance Notice A s o l u t i o n that would seem to f o l l o w n a t u r a l l y from the above d i s c u s s i o n 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 n o t i c e of i n d u s t r i a l changes which w i l l have adverse e f f e c t s on employment.  As the Manpower Consultative  Service i s concerned w i t h c o - o r d i n a t i n g manpower adjustment s e r v i c e s , i t s e f f e c t i v e n e s s , a t l e a s t 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 conscience; on whether the employer f e e l s o b l i g a t e d to inform the S e r v i c e i n advance of impending changes.  The weight of  evidence has i n d i c a t e d 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 d e c i s i o n to innovate i s e s s e n t i a l l y based on economic f a c t o r s .  Dr. Dymond has stated:  "The e f f e c t i v e n e s s of the r o l e of the employment s e r v i c e 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 s e r v i c e , i n those cases where permanent l a y - o f f s oocur can best perform i t s functions of c o u n s e l l i n g about a l t e r native job and t r a i n i n g o p p o r t u n i t i e s , the a c t u a l placement of workers i n a l t e r n a t i v e employment, the a s s i s t e d m o b i l i t y 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 adjustment of workers through these various techniques. In general, the s h o r t e r the n o t i c e to  -  171  -  the employment s e r v i c e and the l e s s t h e i r i n volvement i n the redeployment of manpower w i t h i n the e n t e r p r i s e , the longer w i l l be the period of unemployment f o r those l a i d o f f and the l e s s chance they w i l l have to secure new employment In occupations matching t h e i r productive capaci t i e s o" 1  I f l e g i s l a t i o n i s needed t o co-ordinate  enterprise  and n a t i o n a l manpower adjustment programs e f f e c t i v e l y , and, I f advance warning of change Is the prime r e q u i s i t e of an e f f e c t i v e adjustment procedure, i t would appear axiomatic that advance n o t i c e 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 t o give the government and/or the employee from three t o s i x months' n o t i c e of imminent displacement,,  As was p r e v i o u s l y Indicated i n  Chapter I I , p r o v i s i o n s e x i s t i n many c o l l e c t i v e  bargaining  agreements r e q u i r i n g t h i s type of p r i o r n o t i f i c a t i o n , . I t was a l s o shown that management's reluctance to give advance n o t i c e based on f e a r s of mass exodus and competitive  losses  were unfounded and indeed, the b e n e f i t s of granting e a r l y warning f a r outweight the costs of granting i t . In many regions of Europe advance n o t i c e i s taken for granted . 2  One author quotes an A u s t r i a n works'  Dymond, W R "Co-ordination 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 . " x  o  0p_o C i t o  9  0  pp. 7~8„  A h l s e n , 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 . 2  - 172 c o u n c i l chairman as s t a t i n g "The whole d i f f e r e n c e between b r u t a l i t y and humaneness may l i e i n the time l a g granted f o r adjustment t o t e c h n o l o g i c a l change,  1,1  In Canada, Dr, Crispo w r i t e s that the onus i s on management t o see that union e f f o r t s are d i r e c t e d towards acceptance of t e c h n o l o g i c a l change.  He s t a t e s t h a t :  "Unless employers are w i l l i n g t o give advance n o t i c e of a n t i c i p a t e d changes and are prepared to w r i t e o f f c e r t a i n worker adjustment costs as l e g i t i m a t e charges against the o v e r - r i d i n g b e n e f i t s of the changes, unions can i l l - a f f o r d to be o v e r l y c o n s t r u c t i v e , " 2  The Economic Council of Canada i n 1966  published  "A D e c l a r a t i o n on Manpower Adjustments t o Technological and Other Change" i n which i t suggests g u i d e l i n e s f o r a v o i d i n g labour-management disputes over major changes. I t supports the Idea of J o i n t labour-management committees f u n c t i o n i n g throughout the year as being able to provide the f l e x i b i l i t y and o b j e c t i v e studies that a r e required to solve the problems of adjustment t o change.  I t suggests  that: "The f o l l o w i n g adjustment measures...are recommended t o labour and management f o r general a p p l i c a t i o n as b a s i c and concrete methods of approach f o r h e l p i n g 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...  B l a u , P a u l . Paper presented as a representative of labour under "Conclusions and I m p l i c a t i o n s " . The Requirements of Automated Jobs, p. 4 0 3 . x  ^ C r i s p o , John H.G. "Summary Report on the Conference". 0j>. C i t . p. 3 8 . 9  - 173  -  could be incorporated i n formal agreements as d e s i r e d 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 p r o v i s i o n of Information as e a r l y as p o s s i b l e about a n t i c i p a t e d change and i t s manpower i m p l i c a t i o n s Is b a s i c and p r e l i m i n a r y to the c a r r y i n g out of any manpower adjustment programme o,, 0  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 s i t u a t i o n s what the period of advance n o t i c e should b e t h e r e should be as much advance n o t i c e as p o s s i b l e , w i t h a minimum of hot l e s s than three months where changes of m a t e r i a l s i g n i f i c a n c e are i n v o l v e d , " 9 0 0 0  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 n o t i c e be given to the Imperial G i l r e f i n e r y workers of impending t e c h n o l o g i c a l change a f f e c t i n g jobs. And,  In Quebec one researcher f o r the Manpower 9  C o n s u l t a t i v e Service s t a t e d t h a t : " I f we want,, commissions to be very e f f i c i e n t , I submit t h a t o o o t h e 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," 0  2  With the overwhelming acceptance accorded the concept of advance n o t i c e  9  the many b e n e f i t s that are seen to  accrue from using i t , and the very f a c t 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 n o t i c e , I t i s c l e a r l y too important a f a c t o r to leave to the whims Economic Council of Canada, A D e c l a r a t i o n on Manpower Adjustment to Technological and Other Change, Ottawa: Queen"s P r i n t e r , November, 1966, pp, 7=8, A  Dion, Go  0p_,  C i t , . p,  585«  - 174 -  of e n t e r p r i s e s faced w i t h 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 n o t i c e would gain a t once the time required f o r i n i t i a t i n g the government manpower programs such as the Manpower C o n s u l t a t i v e S e r v i c e co-ordina t e s , and provide the impetus needed by management t o plan i n advance the manpower i m p l i c a t i o n s of i t s proposed changes. Although the Manpower C o n s u l t a t i v e Service p r i n c i p l e s provide f o r establishment  of J o i n t research commi-  t t e e s where no union e x i s t s there has been ample evidence i n t h i s report t o suggest that few, i f any, managers w i l l o f f e r j o i n t c o n s u l t a t i o n i f i t i s not r e q u i r e d .  I f ad-  vance n o t i c e i s recommended as a s u i t a b l e g u i d e l i n e by the Economic Council of Canada why should I t be encouraged only where u n i o n s — a n d l i k e l y only strong u n i o n s — a r e to demand I t ?  able  Surely, i f the g u i d e l i n e i s appropriate f o r  unionized f i r m s i t i s a l s o appropriate f o r non-unionized firms.  Moreover, why should the g u i d e l i n e be extended only  f o r displacements a r i s i n g out of t e c h n o l o g i c a l change as many advocates suggest?  •"•Subsequent t o 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 M i n i s t e r Jean Marchand t o l d a n a t i o n a l labour-management conference i n Ottawa that i t appears e s s e n t i a l that employers give t h e i r workers a t l e a s t three months' warning of t e c h n o l o g i c a l 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 H e l f g o t t , i n studying numerous p l a n t s undergoing i n d u s t r i a l conversion, concluded t h a t : "oooit Is impossible to I s o l a t e employee d i s placements a t t r i b u t a b l e s o l e l y to t e c h n o l o g i c a l change, because of the i n t e r r e l a t e d n e s s of a l l f a c t o r s that determine the course of employment o" X  They a l s o r e f e r to the United States Congress, J o i n t Economic Committee wherein i t s t a t e s : "There i s no way t o 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 technol o g i c a l ©hange, or the s h i f t of demands away from the product h i s Industry produces, or inadequate aggregate demand, or some other cause," Therefore, I t i s p o s s i b l e that recommendation of advance n o t i c e as an "automation" g u i d e l i n e may j u s t l e a d to more confusion as to I n t e r p r e t a t i o n than b e n e f i t to the worker.  Indeed, the aim of maximum u t i l i t y of Canada's  human resources would seem t o beg i n t r o d u c t i o n of a law that requires management to Inform the l o c a l Manpower Centers a t l e a s t three months i n advance of impending l a y o f f s on a l l but s p e c i a l cases (such as f o r Just cause). A c c o r d i n g l y , adjustment plans could be prepared by the companies alone or j o i n t l y w i t h the government s e r v i c e s 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 n o t i c e of l a y - o f f have a r i s e n mainly t o ensure  •'-Beaumont R.A. and H e l f g o t t , R.B, 9  2  Loe, C i t .  Op., C i t , . p, 25.  - 176 that manpower planning gains c o n s i d e r a t i o n .  Such l e g i s -  l a t i o n could provide a s o l u t i o n 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 r e a c t i n g a t the r i g h t end of the continuum would be overcome by making future manpower planning a d e s i r a b l e management a c t i o n i n t h i s area. And, a t the same time, advance n o t i c e could expand the scope of the Manpower Consultative Service a p p l i c a b i l i t y a t the extreme l e f t end of the continuum.  When manage-  ment i s forced t o 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-  i n g l y , e i t h e r j o i n t union-government o r government s e r v i c e s separately could provide f o r adjustment procedures i n advanoe of the pending l a y - o f f date. Beyond t h i s , however, the requirement of advance n o t i c e of l a y - o f f 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 t o the r i g h t . More f u t u r e planning such as that r e l a t e d i n the Graphic A r t s and Plumbing Industry cases would probably ensue. Some arguments have been voiced against the forma t i o n of a government e a r l y warning system on the b a s i s that i t i s too negative and may impede the process of techn o l o g i c a l ohange . 1  But, i n Canada the view i s held that  I b i d . , p. 3 2 8 .  — 177  0  " t h e human f a c t o r I n p r o d u c t i o n i s r e l a t i v e l y more i m p o r t a n t a s a c o n t r i b u t i o n t o l o n g - t e r m economic growth than i s the a p p l i c a t i o n of capi t a l and t e c h n o l o g y , " 0 0 0  1  M o r e o v e r , Dr»  Gordon, i n a r e p o r t  prepared f o r the  States  O f f i c e o f Manpower, A u t o m a t i o n a n d  cluded  that:  United  Training,  con-  " I n r e c e n t y e a r s , a number o f c o u n t r i e s o f Weste r n E u r o p e have a d o p t e d l e g i s l a t i o n o r d e v e l o p e d 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 d i s p l a c e m e n t , through e a r l y warning systems and s u b s i d i e s d e s i g n e d t o encourage the r e t r a i n i n g of workers threatened with l a b o r displacement b e f o r e a c t u a l d i s m i s s a l occurs,, Close r e l a t i o n s b e t w e e n t h e p u b l i c employment s e r v i c e a n d t h e management and l a b o r community have a l s o p l a y e d a n i m p o r t a n t r o l e I n e n c o u r a g i n g c o n o e r t e d and e f f e c t i v e a t t a c k s on p r o b l e m s o f l a b o r d i s p l a c e ment i n l o c a l c o m m u n i t i e s i n s u c h c o u n t r i e s a s West Germany a n d Sweden,"^ A within  h a r m o n i z a t i o n o f t h e s e views can  the  r a t i o n a l e of the  Economic C o u n c i l  D e c l a r a t i o n which advooates the ohange b u t  which a l s o  prerequisite advance n o t i c e justment  to of  be  need f o r  established of  Canada's  technological  recommends a d v a n o e p l a n n i n g  i t s introduction.  as  L e g i s l a t i o n governing  l a y - o f f w o u l d e n s u r e t h a t manpower  i s considered  a  by management a s  a cost  ad-  of  Dymonds) WDRo " C o - o r d i n a t i o n o f A c t i v e Manpower 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 Manpower P o l i c y " , O P , C i t , , p . Io (See C h a p t e r I , Canada Manpower P o l i c y S e c t i o n , p, lio) x  G o r d o n , M a r g a r e t S, R e t r a i n i n g and L a b o r M a r k e t A d j u s t m e n t i n W e s t e r n Europe„ U n i t e d S t a t e s Department of L a b o r P u b l i c a t i o n , Manpower A u t o m a t i o n R e s e a r c h Monograph No, 4, W a s h i n g t o n , 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, p, 2  I965,  200,  - 178 i n t r o d u c i n g new technology, thereby p r o v i d i n g an atmosphere more conducive t o 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 t o be rendered i n favour of l e g i s l a t i o n f o r advance n o t i c e r e s t s on the c o r 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 p r e v i o u s l y been s t a t e d t h a t workers  w i l l be t r a i n e d and r e t r a i n e d only when there I s 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 j o b t o move t o and i n general the manpower s e r v i c e s w i l l be e f f e c t i v e only so long as f u l l employment exists.  This argument has been voiced against the e f f e c t -  iveness of the Manpower C o n s u l t a t i v e S e r v i c e d  Thus, i n  times of high unemployment there w i l l be l e s s c a l l f o r plans t o e f f e c t worker adjustment i f there are no jobs available.  On the other hand, when employment i s high  many companies w i l l be compelled t o r e t r a i n t h e i r own f o r c e s and adapt them t o new p o s i t i o n s which i t i s imp o s s i b l e f o r the labour market t o f i l l .  Consequently, the  Manpower C o n s u l t a t i v e S e r v i c e w i l l be most e f f e c t i v e i n s p e c i f i c cases where t e c h n o l o g i c a l change i s imminent, the employer has more workers than he needs and there i s a  -Htfaisglass, Harry J , "Summary of F l o o r DiscussThe Requirements of Automated Jobs, p. 272. See a l s o Chapter I I I , United States Experience S e c t i o n , p. 73. ions".  - 179 shortage of workers In the labour market.  Advance n o t i c e  of change could enhance t h i s e f f e c t i v e n e s s considerably under the current environment of r e l a t i v e l y f u l l employment by p r o v i d i n g the time and the f l e x i b i l i t y necessary to adapt the s t r u c t u r e of the work f o r c e . In summary t h i s argument f o r required advance 9  n o t i c e wherein the Manpower Consultative Service would be able t o become a continuous co-ordinator of government services  8  i s an attempt t o provide the Service w i t h the  necessary strength i t needs i f i t i s t o f u l f i l l i t s purpose of adapting the c u r r e n t l y employed manpower to the ever-changing requirements of t e c h n o l o g i c a l and economic change, As John Stuart M i l l once s t a t e d : "There cannot be a more l e g i t i m a t e object of the l e g i s l a t o r ' s care than the i n t e r e s t s of those who are thus s a c r i f i c e d t o the gains of t h e i r f e l l o w c i t i z e n s and of p o s t e r i t y , , , , 1 , 1  J o i n t Study and the Committee Chairman The second p r i n c i p l e embodied i n the Manpower Cons 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 t o remove any obstacles that may impede the process of t e c h n o l o g i c a l change.  In discussing  •kilted i n L e v l t a n Sar, A, " S t r u c t u r a l Unemployment and P u b l i c P o l i c y " , Labor Law J o u r n a l , J u l y (I96I), p. 578, 9  - 18G the approach of the Manpower C o n s u l t a t i v e Service i n Chapter IV, however, i t was noted that the Research SubCommittee and indeed q u i t e o f t e n even the J o i n t Consulta t i v e Committee, i s chaired and d i r e c t e d by an academic professor of high repute.  The t h e s i s of the argument i n  t h i s s e c t i o n i s that the Manpower C o n s u l t a t i v e Service approach has been constrained by the very f a c t that few companies and unions are i n favour of i n v i t i n g a t h i r d p a r t y t o intervene i n problems that are considered p r i v a t e affairs. In Chapter I I I , a f t e r c o l l a t i n g the recommendations of many authors* f i n d i n g s , i t was concluded that t o be e f f e c t i v e the p a r t i e s to j o i n t study committees needed t o f u l l y a i r t h e i r f e e l i n g s on the problems and a r r i v e a t a s o l u t i o n that was acceptable to both.  Ample evidence has  been presented to i n d i c a t e that t h i r d party i n t e r v e n t i o n i s undesirable because r e s u l t s come from i n d i v i d u a l s that cannot p o s s i b l y know the f a c t s as w e l l as the p a r t i e s thems e l v e s ; that the t h i r d party does not have an economic i n t e r e s t i n the outcome and therefore may a r r i v e a t answers which may be harmful to one or the other p a r t y ; and, that the Interested p a r t i e s ' commitment to a plan may be weakened i f they have not been instrumental i n i t s development. Study of the Manpower C o n s u l t a t i v e Service cases Indicates that the expounded dual process of problem s o l u t i o n has been somewhat misguided.  Rather than the research  -  r e s u l t s being submitted  -  181  to the J o i n t C o n s u l t a t i v e Commi-  t t e e f o r a n a l y s i s and u l t i m a t e development of an  accept-  able p l a n , i t would appear that the n e u t r a l i s becoming the key e n t i t y i n the approach,,  Indeed, i n the m a j o r i t y  of the cases s t u d i e d , i t appears that once the  research  chairman i s chosen he then sets out as a " t r o u b l e shooter" and "problem-solver"  and attempts to a r r i v e at  an acceptable s o l u t i o n to the problem,,  He uses the union  and company representatives on the research committee to provide him w i t h the information he requires but the report and i t s recommendations i s a product of h i s development.  final own  Having reached what he f e e l s i s a f a i r and  I m p a r t i a l settlement he then reports h i s f i n d i n g s to the J o i n t C o n s u l t a t i v e Committee,  The f o l l o w i n g 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 a c t i n g as a mediator between the company and the union i n a n e g o t i a t ion-type d i s c u s s i o n w i t h the two p a r t i e s a i r i n g any agreements w i t h the plan„  dis-  The research chairman then  works slowly and methodically, making changes here and there to produce a plan that i s compatible ies.  to both p a r t -  The process, t h e r e f o r e , 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 T h e r e d o e s n o t a p p e a r t o he a r a t i o n a l e t h a t  clear-  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 C o n s u l t a t i v e Service approach.  Before  i n c e p t i o n 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 u n d e r t h e D e p a r t m e n t o f i n 1963  i t was  Labour  stated that:  " 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 m u s t 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 h e r e t h a t our u n i v e r s i t i e s have a m a j o r r o l e t o p l a y i n p r o v i d i n g the 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 p r o b l e m s 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 , n o t t o p r o v i d e p l e a s i n g answe r s t o one o r o t h e r o f t h e p a r t i e s t o c o l l e c t ive b a r g a i n i n g . " [ i t a l i c s mine] 1  T h i s v i e w i s most a p t l y e x p r e s s e d  b y one  researcher  as f o l l o w s : " F o r e x p l o r i n g a n d 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 c o m p a n i e s w i l l be r e a d y t o l e t g o v e r n m e n t p e o p 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 c o m m i s s i o n s t o be v e r y e f f i c i e n t , I s u b m i t 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 c h a i r m a n 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 h a v e 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 o f t h e c o m m i s s i o n ' s m a n d a t e s h o u l d be l o n g e n o u g h i n o r d e r t o f a c i l i t a t e the o r g a n i z a t i o n of research a c c o r d i n g to a l o g i c a l sequence and a l s o t o l e a v e t h e chairman p l a y a c o n c i l i a t i o n r o l e i n the m e a s u r e s t o be a d o p t e d 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 ; , . . . " [ i t a l i c s m i n e ] 2  Dymond-, W.R,, "The R o l e o f 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 t a t e m e n t " . Op. C i t . p. 119„ 1  0  Dion,  G.  OJD. C i t . . p.  585.  - 183 Examination men i n  the  establishes  eases  iating  the  the  studied  their  problem-solvers  of  positions gives  ample  p o s i t i o n as  in  of  that  the  evidence  of  The c o n t r a r y  viewpoint  on t h e  holds  that  chairclearly  trouble-shooters  developing adjustment  d i s c u s s i o n and debate  research  plans  and  and med-  recommendations,  that:  " T h i s r e s e a r c h m u s t be 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 management, because t h e r e m u s t be mutual understanding of the nature of the p r o blems a n d t h e b e s t ways 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 be d e c i d e d a t t h e b a r gaining t a b l e , , , . E x a m i n a t i o n s of problems such as t h e s e can b e s t be b a s e d on 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 ducted by 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 themselves. I t i s obvious t h a t such research must be aimed a t s o l v i n g p r o b l e m s , and a t s e t t ing long-term goals, rather than 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 the bargaining t a b l e , " 1  And one Manpower C o n s u l t a t i v e  Service  researcher  has  stated: "The f a c t i s , from t h e a n a l y t i c a l p o i n t of v i e w , that the parties a f t e r periods of unsatisfactory a c t i v i t i e s at the collective bargaining table have 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 working out t h e i r labour-management problems. They have 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 of the i d e n t i c a l pressures which existed before, 1 , 2  J-Dymond, W „ R "The Manpower C o n s u l t a t i v e S e r v i e e of the Canadian Department of Labour", 0p_, C i t , , p p , 8 and 10, 0  M o n t a g u e , J,To "Recent American Developments and Experiments i n Labour-Management R e l a t i o n s " , Oj), C i t , , 2  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 these ing viewpointso  The f i n d i n g s o f t h i s  conflict-  report would  indic-  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 a n d t h e more a c c e p t a b l e  t o l a b o u r a n d management.  Solutions  that a r e a r r i v e d a t independently could e a s i l y develop 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 iated  and negot-  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  party.  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 , m u s t know when t o b a c k o u t a n d l e a v e  t h e f i n a l development o f  t h e p l a n a n d s u b s e q u e n t commitment t o t h e p a r t i e s . bargaining  on a t h i r d p a r t y ' s  Merely  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 p r o b l e m a r e a s d o e s n o t remove t h e c o n f l i c t .  I t just  postpones t h e f r u s t r a t i o n u n t i l t h e next n e g o t i a t i o n  per-  i o d o r o t h e r w i s e produces an atmosphere not u n l i k e expost t r i p a r t i t e a r b i t r a t i o n proceedings. 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 a p p e a r t o a c k n o w l e d g e t h e more s u b o r d i n a t e neutral.  P o r e x a m p l e i n 1964, G.G.  Service  r o l e of the  Brooks, then 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 ,  stated:  " . . . i n most c a s e s t h e work w i l l d e v o l v e on a m i x e d group o f people from w i t h i n and from o u t s i d e t h e organization. To e f f e c t i v e l y d i r e c t s u c h a g r o u p w i l l u s u a l l y require the s e r v i c e s of a thoroughly q u a l i f i e d R e s e a r c h D i r e c t o r b y whom t h e r e s e a r c h f i n d i n g s c a n be c o l l a t e d , c o - o r d i n a t e d , and developed i n t o c o n s t r u c t i v e proposals f o r the consideration of the j o i n t committee," 1  ^-Brooks, G . G .  OP.. C i t . . p .  255.  - 185 And  J 0 D 0 Drew, t h e n B r i t i s h C o l u m b i a  I n 1965,  Representative suggested  Regional  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 ,  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 C o m m i t t e e was now f a c e d w i t h the major t a s k of p r e p a r i n g a comprehensive manpower a d j u s t m e n t plan» The c o m m i t t e e was w e l l equippedo T h e r e was t h e t h o r o u g h l y o b j e c t i v e a n d 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 management a n d t h e u n i o n s had c o n f i d e n e e , , , [and"J a s e t of m u t u a l l y agreed upon ground r u l e s , . , , " * In  both  these  statements  t h e r e s e a r c h e r has  provided  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 c a n b u i l d a plan of adjustment.  He  has  feasible  been a f a c t - f i n d e r .  However,  he h a s 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 i o n s and  development of a f i n a l  C l e a r l y , there are  more m e d i a t i o n  solut-  plan.  s i t u a t i o n s when t h e  o f f e r low accommodation and  they w i l l  by t h e t h i r d p a r t y .  parties  probably  The  require  research  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 f u r t h e r advice i f i t i s requested. is  t o be a n  the  But,  i f the  and  program  e f f o r t towards long-run 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 p r o b l e m s o f m u t u a l  interest  b e t w e e n t h e p a r t i e s , he m u s t n o t a c t a s a c o m b i n e d b l e m - s o l v e r and  arbitrator.  Such a p o s i t i o n w i l l  proquite  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 b y one  or the other  party—  if  i n the long  run—and  not  i n the short run, then l i k e l y  consequently  reduce the appeal  Drew, J0D0  0p_,  o f t h e Manpower C o n s u l t a t i v e  C i t , , p,  113,  - 186 S e r v i c e t o l a b o u r a n d 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 apparent  f e e l i n g that i ti s necessary  i s the  f o r the parties to  reach agreement on t h e adjustment p l a n p r o v i d e d . issues remain insurmountable  I f some  during ensuing d i s c u s s i o n s  then they a r e c l e a r l y Issues f o rc o l l e c t i v e b a r g a i n i n g . In  Chapter  I I I a perusal of the l i t e r a t u r e revealed that  the e x e r c i s e s h o u l d n o t always need t o reach Joint  agreement.  committees a r e n o t a n end i n t h e m s e l v e s .  s e a r c h has been a d e q u a t e l y plan developed,  completed and an adjustment  then c o l l e c t i v e bargaining should  t h e means f o r s e t t l i n g a n y i s s u e s s t i l l flict. herent  remaining  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  In  provide i n con-  w i t h an i n -  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  programs w i l l  If re-  o r many  fail.  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  plans  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 u n d e r 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 bargaining....Each c a r e f u l l y avoids prejudging the s o l u t i o n which m i g h t be e v o l v e d , a n d I n a t l e a s t two o a s e s 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 o f t h e a n s w e r s even where t h e y have been e v o l v e d from l e n g t h y study." 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 u s e  Montague, J . T . " 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 " . Op.. C i t . .  Po 34.  - 187 of a t h i r d p a r t y l i e s  I n the expected  number o f f u t u r e  cases and the a v a i l a b i l i t y of research 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 o f time and e f f o r t by each o f t h e r e search d i r e c t o r s .  M o r e o v e r , 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 m a j o r t e c h n o l o g i c a l changes occur  i n the future.  will  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 f r o m 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 c h a n g e i n t h e r e s e a r c h p r o g r a m d e v e l o p m e n t m u s t be I n sum, a s u b o r d i n a t e d  initiated.  role f o r the research  e c t o r seems a t o n c e d e s i r a b l e a n d n e c e s s a r y .  dir-  I n such  a  r o l e , t h e a c a d e m i c r e s e a r c h e r u s e d c o u l d be a n 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 p r o g r a m s rather than a problem-solver y e a r s o n one p r o g r a m . a n t o n l y on t h o s e and  spending  s i x m o n t h s t o two  He w o u l d a c t a s a r e s e a r c h c o n s u l t -  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  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 m a r k e t v i e w s n o t o t h e r -  wise a v a i l a b l e to the p a r t i e s .  I n a d d i t i o n , he c o u l d  on t h e s e r v i c e s o f o t h e r f a c u l t y a n d g r a d u a t e provide the necessary  call  students t o  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 mediation  was  d e s i r e d b y t h e p a r t i e s due t o i m p a s s e s I n t h e n o r m a l 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 . no c o n d i t i o n s , h o w e v e r , s h o u l d a r e s e a r c h o f f i c e r be  Under  - 188 required t o perform the r o l e of a problem-solver  i n such  a manner that he must p r o f f e r s o l u t i o n s that are achievable 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 w i t h the r e s t r i c t i o n that I s placed on the a p p l i c a b i l i t y of the Manpower C o n s u l t a t i v e S e r v i c e by v i 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-  i o n of the government's manpower s e r v i c e s i s provided to J o i n t union-management programs thereby l i m i t i n g the e f f e c t i v e n e s s of the Service t o the center p o r t i o n of the continuum as shown i n the model.  This i s not t o say there  i s not need f o r labour-management co-operation, but r a t h e r there appears t o be a dichotomy of i n t e r e s t s that preclude the maximum development of the intended co-ordination of manpower s e r v i c e s . There i s p o s s i b l y 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 .  I n Chapter I I I  the chain of events l e a d i n g t o the Inception of the Manpower C o n s u l t a t i v e Servioe was r e l a t e d .  I t p o i n t s out  that the Manpower Consultative Service emerged from the labour-management co-operation theory, and indeed  pro-  vided a necessary t a n g i b l e o b j e c t i v e f o r co-operation by v i r t u e of the need f o r c o n s t r u c t i v e d i s c u s s i o n of manpower adjustment problems.  Consequently, i t i s not s t a r t l i n g  - 189 t o s e e t h e s e c o n d 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 Service  included  i n i t s rationale,  developments, however, w i l l  A review of subsequent  point out the divergent  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  should  path  have  taken.  B e f o r e 1 9 6 3 » when t h e Manpower C o n s u l t a t i v e r a t i o n a l e was f i r s t  revealed  Service  by t h e Department o f Labour,  e m p h a s i s a t c o n f e r e n c e s o n manpower p r o b l e m s 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 , a n d r e g i o n a l l e v e l was 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 unrest  concentrated  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 promoting ment c o - o p e r a t i o n .  labour-manage-  As s t a t e d i n Chapter I I I conferences  convened by t h e Economic C o u n c i l o f 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 an atmosphere o f labour-management c o - o p e r a t i o n .  This  theme a l s o p e r v a d e d 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 . was s u g g e s t e d t h a t t h i s s t r e a m o f e v e n t s p r o v i d e d of d i r e c t i o n and purpose t o labour-management  It  a sense  co-operation  a t t h e l o w e r l e v e l s o f t h e economy a n d l e d t o t h e f o r m a t i n mid-1964.  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  The d i l e m m a 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 t h e Manpower C o n s u l t a t i v e S e r v i c e power p o l i c y " a s p o r t r a y e d nor  i s that  " a n a c t i v e man-  i n C h a p t e r IV does n o t i n c l u d e  depend upon labour-management c o - o p e r a t i o n  r a i s o n d'etre.  a s Its  The government o f f e r s t o c o - o r d i n a t e  power s e r v i c e s i n a n a t t e m p t t o p r o v i d e ducive  of  t o manpower a d j u s t m e n t .  I t Is a  man-  an atmosphere confacilitating  - 190 process. The t h e s i s o f t h i s a r g u m e n t ment c o - o p e r a t i o n  i s that  labour-manage-  i s n o t an end i n i t s e l f ;  i t must e x i s t  i n a n a t m o s p h e r e 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 a p p roach.  Since  I963 t h e r e  has been a n i n c r e a s i n g aware-  n e s s o f t h i s n e e d f o r c o - o r d i n a t i o n o f manpower  services  a n d a g r o w i n g e m p h a s i s o n t h e c o n c e p t o f a n a c t i v e manpower p o l i c y . The 1965 British  Labour-Management C o n f e r e n c e h e l d i n  Columbia placed  considerable  e m p h a s i s o n t h e man-  p o w e r p o l i c y n e e d s a s recommended i n a " N a t i o n a l S e r v i c e " t o i m p l e m e n t manpower p o l i c i e s . a t i o n was s t r e n g t h e n e d  This  Manpower  recommend-  w i t h t h e Economic C o u n c i l o f Can-  a d a ' 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 Canada,"  1  This  of l a b o u r market p o l i c y i n  c o n f e r e n c e b a r e d many o f t h e w e a k n e s s e s  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 a n 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 D e p a r t m e n t o f Manpower a n d 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 . Still,  i n M a r c h o f 196?  t h e Economic C o u n c i l o f  Canada c o n v e n e d 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  Cited i n Morris, Joe,  Op., C i t . , p ,  101,  - 191 union i n a p o s i t i o n of spear-heading a d r i v e f o r c o l l e c t ive bargaining  demands t h a t w o u l d p r o d u c e t h e n e e d e d man-  power a d j u s t m e n t p r o c e d u r e s .  The w h o l e theme o f manpower  adjustment 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  the D e c l a r a t i o n , the Statement and o t h e r e s s e n t i a l l y b a s e d on a n e e d f o r g r e a t e r labour-management  relations . 1  studies  was  sophistication in  R e c o m m e n d a t i o n s w e r e made  c a l l i n g f o r collective bargaining  t o broaden i n scope and  provide  f o r y e a r a r o u n d J o i n t labour-management  ation.  Demands w e r e s e e n 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 m o n t h s ' a d v a n c e n o t i c e i n o r d e r vide  f o r manpower p l a n n i n g .  I t was  stated that  consult-  to  pro-  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 facilities  could  overcome  the obstacles  of  employee  transfer. The e r u x o f t h i s w h o l e i s s u e l i e s collective bargaining  i n the f a c t  a l o n e cannot provide  d i s p o s i t i o n o f manpower a d j u s t m e n t c a s e s . justment programs under t h e a u s p i c e s sultative Service  that  for effective Manpower a d -  o f t h e Manpower C o n -  t o be s u c c e s s f u l d e p e n d p r i m a r i l y o n  ^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 a n d O t h e r C h a n g e , 0p_„ C i t , Economic C o u n c i l o f Canada, Towards B e t t e r Communloat1ons B e t w e e n L a b o u r a n d 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 A d j u s t m e n t t o T e c h n o l o g i c a l a n d O t h e r Change I n L a b o u r R e l a t i o n s i n C a n a d a " , 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 , O t t a w a , M a r c h , 196?,  - 192  -  a t t a i n i n g an atmosphere conducive t o the adjustment. a i m m u s t "be t o s t r e n g t h e n t h e g o v e r n m e n t ' s r e a c t i o n t h e m o d e l p r e s e n t e d e a r l i e r ; n o t t o become more i n t h e a l r e a d y f o r t i f i e d union-management The  emphasis  The within  involved  system.  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 o f 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 attainment of a l l  workers—from  Dr. Jamieson  unskilled  educational  to professional.  i l l u s t r a t e d t h i s when he  stated:  "Employment o f p r o f e s s i o n a l , t e c h n i c a l a n d 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 d e c a d e o r m o r e , b u t t h e s u p p l y h a s f a i l e d t o k e e p up w i t h t h e demand a n d , 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 a g e s ' 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 h a n d , 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 o r k e r s h a s t e n d e d , o n t h e w h o l e , 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 creasing,aoe What a r e t h e r e l a t i o n s h i p s b e t w e e n 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 b e e n due simply t o shortages of 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 workers?,,. 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 p r o b l e m s 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 'shortages' o r ' b o t t l e n e c k s ' of c e r t a i n types of p r o f e s s i o n a l , t e c h n i c a l or s k i l l e d w o r k e r s , t h e n o u r m a j o r e x p e n d i t u r e s o f money a n d p e r s o n n e l s h o u l d be d e v o t e d t o a ' c r a s h p r o g r a m * 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 utes." 1  From l i t e r a t u r e a v a i l a b l e i n C a n a d a , t h e  case  •'•Jamieson, S.M. " E c o n o m i c a n d 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 m e n t Discussion". 0p_„ C i t , , p p , 86-87,  - 193 s t u d i e s p r e s e n t e d , and to  -  the conferences h e l d , there  appears  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 a n d  maintenance of i n d u s t r i a l peace.  Again, t h i s i s not  say t h a t t h i s a r e a i s unimportant, but Department of Labour and  t h e Economic C o u n c i l o f Canada  c u r r e n t l y account  nation's labour force. u p a t i o n a l mix  by D r  number o f w o r k e r s  0  to  r a t h e r t h a t the  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 . workers  the  Unionized  f o r l e s s than o n e - t h i r d of  S t u d i e s on C a n a d a ' s c h a n g i n g  Schonnlng  the occ-  emphasize the d e c r e a s i n g  i n the u n i o n i z e d c a t e g o r i e s .  He  states:  " 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," It  i s a well-known  workers at  have, i n g e n e r a l , r e s i s t e d the union's  service attempts  organization. The  Is  f a c t t h a t w h i t e - c o l l a r and  n e e d f o r a n a l l - e n c o m p a s s i n g manpower p o l i c y  s u p p o r t e d by s t u d i e s of t h e A m e r i c a n  Automation  and  Employment w h i c h  Foundation  reported that  of  automation  had a l r e a d y c u t d e e p i n t o t h e n e e d 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,  government  and  they concluded that the:  -"-Schonnlng, G i l , " E c o n o m i c a n d 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 e n c e oh E c o n o m i c a n d 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 antagonism were concern about the personal a d a p t a b i l i t y to mechanized systems, u n c e r t a i n t y as to t h e i r r o l e s i n i t or f e a r of l o s i n g status of l a r g e numbers of s k i l l e d workers„"1 Future p r e d i c t i o n s view the downward s h i f t i n w h i t e - c o l l a r jobs as analagous to the advent of unionism i n America. computerizing  To overcome middle management r e s i s t a n c e to t h e i r realm of a u t h o r i t y , 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' r e s i s t a n c e to change in earlier periods . 2  may  Although t h i s type of s p e c u l a t i o n  receive scant a t t e n t i o n from corporate planners today  there i s a strong degree of evidence that supports the idea that manpower adjustment must become a  superordinate  g o a l — o n e t h a t 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 D e c l a r a t i o n supports the growing need f o r improved manpower p o l i c i e s : "The f e d e r a l government, together w i t h p r o v i n c i a l governments, must a l s o play an important r o l e 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 p r o v i s i o n of t r a i n i n g and r e t r a i n i n g programmes, and m o b i l i t y a s s i s t a n c e , governments have at t h e i r d i s p o s a l the means to  ^Berkwltt, George. "Middle Managers vs. The Computer". Dun's Review and Modern Industry. November, 1966, p. 42. 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. ~ ~ ' - — 2  - 195 s u p p o r t a n d 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 o f l a b o u r a n d management <, 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 essentialc"  1  Therefore,  I t i s c l e a r l y evident  Consultative operation  S e r v i c e must p l a c e  as a prime motivator  enhance t h e n a t i o n ' s ent  narrow scope And y e t  9  t h a t t h e Manpower  co-ordination before of i t s a c t i o n s  co-  i f i t i s to  manpower p o l i c y a n d e x t e n d i t s p r e s -  0  a n e v a l u a t i o n o f t h e c a s e s 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 o f  196?  concluded: " E v e n 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 , the achievement of the 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 a n d consumes more o f t h e t i m e and e f f o r t 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 s than any other of t h e i r a c t i v i t i e s , " ^ Is 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 ?  Should t h i s not 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 L a b o u r - M a n a g e m e n t  Con-  s u l t a t i o n Branch^ of t h e Department of 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  E e o n o m i c 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 a n d O t h e r Change„ Op, C i t , . p . 1  12,  2 D e p a r t m e n t o f Manpower a n d I m m i g r a t i o n , C a n a d a Manpower D i v i s i o n , " R e p o r t o n t h e A c t i v i t i 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 " , F e b r u a r y 27, 196?, (unpublished paper), ^ E a r l y i n 1966 t h e name o f t h e L a b o u r - M a n a g e m e n t C o - o p e r a t i o n S e r v i c e was c h a n g e d t o t h e L a b o u r - M a n a g e m e n t Consultation Branch,  - 196 C o n s u l t a t i o n B r a n c h of t h e Department  o f L a b o u r has  a c t i v e l y campaigning f o r establishment of j o i n t  been  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 p r o b l e m s 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 c h a n g e . many o f t h e "Team Work i n I n d u s t r y " Indicates  Referral to  publications  clearly  t h a t p r o b l e m s o f 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 the e x i s t i n g framework labour-management  o f many o f t h e  committees i n i t i a t e d by t h e L a b o u r -  Management C o n s u l t a t i o n  Branch,  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 campaigning f o r programs  comparable t o  t h o s e e n c o u r a g e d b y 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 w a n t s l a b o u r - m a n a g e m e n t consultation?... E m p l o y e e s . . . w h o 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 w a n t t o t a k e p a r t I n a d v a n c e p l a n n i n g t o meet t h e s e c h a n g e s w i t h a minimum o f j o b l o s s a n d d i s l o c a t i o n ; . , . W r i t e f o r comp l e t e i n f o r m a t i o n on how t o s e t up s u c h a committee 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 Canada Department o f L a b o u r , Ottawa...," 1  The  r o l e of promoting 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 D e p a r t m e n t  of Labour,  A sole objective of  p r o m o t i n g j o i n t c o m m i t t e e s w i t h i n t h e Manpower  Consultative  •^Vancouver S u n . T h e . "Who w a n t s 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 p a p e r on F e b r u a r y 21, 1967, p . 11. See a l s o R e a d e r ' s D i g e s t . "Have y o u a b e t t e r a n s w e r ? " A d v e r t i s e m e n t a p p e a r i n g i n M a r c h , 1967 issue, p. 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 broadcasts.  231.  - 197 Service, therefore,  i s an  o u t r i g h t d u p l i c a t i o n of  this  service. Harmonization of t h i s c o n f l i c t by  r e c o g n i z i n g that the  c o u l d be  achieved  responsibility for establishing  labour-management committees l i e s w i t h the Department Labour,  This would give the  Labour-Management  a t i o n B r a n c h t h e n e e d e d o b j e c t i v e i t has arently lacked.  Service  o f manpower s e r v i c e s a n d  to concentrate  Service  recognizes  a t i o n above c o - o p e r a t i o n be a b l e  heretofore  on  app-  co-ordination  a d m i n i s t r a t i o n of the  t h a t promote the a d j u s t m e n t p r o c e s s .  will  Consult-  I n a d d i t i o n , t h i s w o u l d e n a b l e t h e Man-  power C o n s u l t a t i v e  Consultative  of  Incentives  U n l e s s t h e Manpower  t h i s need f o r  co-ordin-  i t i s u n l i k e l y that the  to a c h i e v e I t s o b j e c t i v e s of  Service  enhancing  C a n a d i a n manpower a d j u s t m e n t , IVo  THE NEED FOR CO-ORDINATION OF GOVERNMENT'S MANPOWER SERVICES  I n C h a p t e r I V I t was used to evaluate Service the  should  the  THE  concluded that the  s u c c e s s o f t h e Manpower  be b a s e d on t h e  standard Consultative  o v e r a l l c o n t r i b u t i o n of  S e r v i c e t o w a r d s a n a c t i v e manpower p o l i c y .  previous  s e c t i o n i t was  stated that while  labour-management c o - o p e r a t i o n i n the  the  seemed t o be  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  o r d i n a t i o n of the  In  the  concept  of  predominant Service,  g o v e r n m e n t ' s manpower s e r v i c e s  co-  needed  -  to the  198  be g i v e n p r i m e i m p o r t a n c e ,  -  A brief  r e c a p i t u l a t i o n of  p e r t i n e n t f a c t s r e v e a l e d i n the case s t u d i e s w i l l  out t h i s  bear  need:  In 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 w e r e u s e d , a r e a r e d e v e l o p m e n t 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 w o r k e r s r e l o c a t e d , a n d l i t t l e m e n t i o n was made o f a n y 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 c a s e o n l y s i x o u t o f 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 w e r e e f f e c t e d due t o h o u s i n g p r o b l e m s , r e t r a i n i n g a t t e m p t s w e r e d r o p p e d due to 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 because of the d e s i r e of the workers. I n t h i s case the w o r k e r s a r e b e i n g i n t e r v i e w e d b y t h e C a n a d a Manpower Centers, In t h e Canadian 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 b u t f u r t h e r r e s u l t s a r e not completed. In the 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 h a v e 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 d o e s a p p 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 e a s e t h e r e was a d e f i n i t e recommendation f o r and use of t h e i n t e r v i e w i n g a n d p l a c e m e n t f a c i l i t i e s o f t h e C a n a d a Manpower C e n t e r s , R e c o m m e n d a t i o n was a l s o made f o r r e t r a i n i n g a n d p r o g r a m s are 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 w e r e recommended b u t 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 f r o m the workers. In the Domtar, Windsor case u n i v e r s i t y c o u n s e l l o r s a n d i n t e r v i e w e r s w e r e u s e d , r e t r a i n i n g was p r e c l u d e d b y 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 the g o v e r n m e n t p l a c e m e n t s e r v i c e s w e r e n o t 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 guidance oommittee s h o u l d be e s t a b l i s h e d . In the 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 , a n d r e t r a i n i n g w e r e recommended b u t no a c t i o n h a s b e e n 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 M a n n i n g B o a r d was d e n i e d ; amendm e n t s t o t h e C a n a d a S h i p p i n g A c t a p p e a r t o be f u t i l e ; a n d  -  199  -  recommended c h a n g e s i n l i c e n s i n g a n d i n s p e c t i o n 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 .  require-  1  In the Imperial O i l case a l l s e r v i c e s of an a c t i v e manpower p o l i c y w e r e m e n t i o n e d a s " t o o l s " t o be remembered i n e f f e c t i n g t h e automation 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 d e c a d e a n d no d e f i n i t e f u t u r e c h a n g e s w e r e r e v e a l e d . I n t h e G r a p h i e A r t s case 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 techniques 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 the e s t a b l i s h m e n t o f a new s c h o o l . Before such a school 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 C o m m i t t e e t o submit f u r t h e r s p e c i f i c data. In t h e Plumbing Industry case a p r i v a t e consultant was u s e d a n d l i t t l e g o v e r n m e n t s u p p o r t h a s b e e n 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  critical.  T h e y 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 co-ordinated  i n p r o v i d i n g a n a c t i v e manpower p o l i c y a n d  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 h a v e met with  relatively little  success.  There i s , i n most  a f o r m o f J o i n t c o n s u l t a t i o n , a n d r e m o v a l o f many les,  notably  process.  cases, obstac-  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  A n d , i n some c a s e s , t h e r e  measure o f i n t e r n a l a d j u s t m e n t .  i s provision f o ra  B u t t h e t h i r d a n d 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  Service  rationale—co-ordination of the services required to faci l i t a t e manpower a d j u s t m e n t — h a s b e e n i n a d e q u a t e a n d h a s met w i t h c o n s i d e r a b l e that any co-ordination  resistance.  Moreover, i t appears  o f s e r v i c e s has been h a n d l e d by  See Appendix "C" f o r an e l a b o r a t i o n of the diffl« o u l t i e s encountered i n t h i s p a r t i c u l a r case. x  - 200 the n e u t r a l consultant  and  the  o f t e n been p r i v a t e l y operated,, ested  that i n order  d e c i s i o n making the  s e r v i c e s u s e d have I t has  t o remove t h e r o l e of the  already  very  been sugg-  emphasis of t h i r d - p a r t y  research  o f f i c e r should  be  subordinatedo Therefore, an  the  e v a l u a t i o n of the  Issue  t h a t looms most I m p o r t a n t i s  respective  e c t o r , p r i v a t e s e r v i c e s and Immigration,,  As  was  be made on w h a t c a n w h a t m u s t be The  r o l e s of the  research  t h e D e p a r t m e n t o f Manpower  be  done b y  done b y t h e  the u n i o n and  management  review of the  s e l e c t e d cases j u s t  g r e a t e r p o r t i o n of  i s provided  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  ants.  does not  consult-  emergent p a t t e r n  i s n o t w h a t was  intended  apparently  of  frowned upon.  Rather, i t i n f e r s that the  from the  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  and  research  intend to i n f e r that contracting  o f t h e g o v e r n m e n t i s t o be  m a j o r i t y of the  and  government.  presented Indicates that the  work o u t s i d e  and  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  critical  This  dir-  i n these  enunciated  Service,  c a s e s show t h a t r e s e a r c h  cases  The  i s c a r r i e d out  a plan e f f e c t e d almost e n t i r e l y without the a i d  of  government s e r v i c e s . The not  o a s e s show t h a t I n t e r v i e w s ,  c a r r i e d out  In general,  by t h e C a n a d a Manpower C e n t e r s ;  i n g i s more o f t e n p r o v i d e d e s t a b l i s h t r a i n i n g and  by p r i v a t e e x p e r t s ;  r e t r a i n i n g are  are  counsellattempts  recommended b y  the  to  - 201 r e s e a r c h d i r e c t o r and then t h e j o i n t committee attempts t o d e v e l o p some a c t i o n o n t h e recommendations,, very l i t t l e  There i s  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  Ser-  v i c e O f f i c e r p r o v i d i n g t h e n e e d e d c o - o r d i n a t i o n o f manpower s e r v i c e s 6  R a t h e r , he a c t s a s 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 f o r m c o m m i t t e e s a n d 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 u s e t h e g o v e r n m e n t 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 conc l u s i o n of t h i s report t h a t a re-assessment of 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  Reference t o a t e x t on c o r p o r a t e  policy  s u g g e s t s t h a t s t r a t e g y c a n 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-  going  concernso  I t suggests that p o l i c y formulation i n -  volves t h e examination of t h e environment f o r opportunity, the systematic assessment of corporate  s t r e n g t h s a n d weak-  nesses, the i d e n t i f i c a t i o n of personal  values and t h e  clarification of public responsibilities ,. 1  these aspects chapter  have been examined I n t h e c o u r s e o f t h e  ( t h e f o u r t h i s extraneous)„  The Manpower  I j L e a r n e d , Edmund P e t a l Business P o l i c y Text 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 , Q  and  Three of  19o"5» Po  620  0  0  o  - 202 Consultative its  S e r v i c e was p u t I n p r o p e r c o n t e x t  strengths  and/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 reviewing the  t o expose  was d i s c u s s e d 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 a p p r o a c h ; a n d ,  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  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  Service  of enhancing the n a t i o n a l  manpower p o l i c y . In attempting it  to evaluate  the strategy  i s Important t o note the f o l l o w i n g :  c l e a r and i d e n t i f i a b l e ? ; the  (3) d o e s t h e s t r a t e g y  f u l l y the environmental opportunity?;  strategy consistent with corporate c e s ? ; a n d , (5) ulus  (1) i s t h e s t r a t e g y  (2) a r e t h e m a j o r p r o v i s i o n s o f  strategy Internally consistent?;  exploit  formulation  competence a n d  resour-  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  t o o r g a n i z a t i o n a l e f f o r t and commitment? For  (4) i s t h e  stim-  1  e x a m p l e , i s t h e p r i m e o b j e c t i v e o f t h e Manpower  Consultative  Service  that of formation  o f committees o r  t h a t o f 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 quirement o f J o i n t study a r e q u i s i t e t o co-ordination of 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 maximum u t i l i z a t i o n high  o f manpower r e s o u r c e s  under t h e current  l e v e l o f employment?; i s t h e Labour-Management Con-  s u l t a t i o n B r a n c h more a m e n a b l e t o j o i n t 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  1  Ibid,,  pp,  25-28,  committee  pro-  S e r v i c e ? ; and, i s  -.20.3 the formulated  s t r a t e g y s u c h t h a t t h e Manpower  ative Service  representatives  Consult-  s e t o u t t o f a c i l i t a t e man-  p o w e r a d j u s t m e n t o r do t h e y s e t o u t t o e s t a b l i s h  joint  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 , approach 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  Service  i n the  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 formulation  of strategy  Policy  0  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 processes, That i s , the 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 a n d 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 to t h e achievement of t h e o r g a n i z a t i o n a l purpose, 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 disciplines," 1  This  concept o f s t r a t e g y i s q u i t e amenable t o t h e  implementation of p o l i c y Service.  i n t h e Manpower  Consultative  However, t h e degree t o w h i c h s u c h s t r a t e g y has  b e e n I m p l e m e n t e d c a n be d e t e r m i n e d b y e x a m i n i n g t h e r e s u l t s of the selected cases. policy  I t i s f e l t that  manpower  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 o f labour-management c o - o p e r a t i o n  a n d recommend-  a t i o n s t h a t w o u l d e n h a n c e 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 The c o n c l u s i o n  Ibid,  a  p,  621o  disposition.  of this evaluation  i s that the  - 204 Manpower C o n s u l t a t i v e S e r v i c e should  i s n o t as e f f e c t i v e as i t  be i n 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  p r o m o t e a n a c t i v e manpower p o l i c y .  T h e c a s e 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 , in  f e d e r a l - p r o v i n c i a l co-operation.  notably  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 c h a n g e o v e r f r o m one d e p a r t m e n t ' s ionale t o another takes  rat-  l o n g e r t h a n i t c u r r e n t l y has had.  H o w e v e r , i f s u e c e s s i s t o be m e a s u r e d b y t h e d e g r e e 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 h a s e n h a n c e d a n a c t i v e manpower p o l i c y a s 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 the S e r v i c e i s t o develop Into a proper c o - o r d i n a t i n g e n t i t y , then t h i s e v a l u a t i o n would recommend a n e e d 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 r a t i o n a l e both i n i t s f o r m u l a t i o n and i t s As  pointed  basic  implementation.  o u t i n The G l a s s o o R o y a l C o m m i s s i o n :  "The p e r s i s t e n c e o f c h a n g e a n d t h e n e e d f o r a d j u s t m e n t 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 a n y o r g a n i z a t i o n . The s u c c e s s f u l adaptation of the machinery of government 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 things: w i t h i n the p u b l i c s e r v i c e i t s e l f there must b e a n a w a r e n e s s t h a t a d a p t a t i o n i s a n i n e s c a p a b l e p a r t o f t h e t a s k o f management; a n d , 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 m u s t be a c o n t i n u o u s a s s e s s m e n t o f t h e r o l e o f 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 o f government r e m a i n s r e s p o n s i v e t o t h e ends i t m u s t s e r v e . " 1  l-The R o y a l C o m m i s s i o n o n G o v e r n m e n t 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 G o v e r n m e n t o f C a n a d a . Ottawa:  Queen's P r i n t e r , 1963, V o l . 5, P P . 2o"-27„  CHAPTER V I SUMMARY, CONCLUSIONS AND RECOMMENDATIONS I. The  SUMMARY  r a p i d advancement o f t e c h n o l o g y  a paradoxical challenge.  Extensive  has  evolved  economic and techno-  l o g i c a l changes a r e r e c o g n i z e d a s e s s e n t i a l t o t h e b a s i c objectives of any nation.  Full  growth and a r i s i n g standard cluded  employment, economic  of l i v i n g are benefits pre-  by economies t h a t would prevent  t h i s change.  But,  it  i s equally recognized  that a s o c i e t y can i l l - a f f o r d  to  i g n o r e t h e i n t e r e s t s o f 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 b y t h e s e reap t h e b e n e f i t s .  changes w h i l e t h e m a j o r i t y  T o do s o w o u l d n o t o n l y b e m o r a l l y  untenable but would a l s o deprive power r e s o u r c e s social  necessary  t h e n a t i o n o f t h e man-  t o achieve  i t s economic and  goals. 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  t h e means f o r s o l v i n g t h e c o m p l e x 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. g a i n i n g has f a c e d a d i f f i c u l t  challenge  Collective f o r survival  during the period of r a p i d l y advancing technology, some a u t h o r s flexibility  b e l i e v e i t has adapted q u i t e w e l l . i s e x e m p l i f i e d by t h e changing  p r i o r i t i e s on t h e b a r g a i n i n g a g e n d a .  bar-  but  Its  traditional  Thus, i s s u e s o f  - 206 s e c u r i t y and methods o f 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 o f d i s p l a c e d w o r k e r s h a v e r e p l a c e d some o f t h e p r e v i o u s occupation with f i n a n c i a l  pre-  gains.  Manpower a d j u s t m e n t t o t e c h n o l o g i c a l c h a n g e 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 c h a n g e s i n o r d e r t h a t p l a n n i n g c a n be p r o v i d e d i n a d v a n c e of a n y imminent d i s p l a c e m e n t .  When a d v a n c e n o t i c e h a s  been g i v e n , p r i o r p l a n n i n g undertaken  arid t h e w o r k e r s 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 o f communication c a n 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 a s 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 b y t e c h n o l o g i c a l change. and  Although  Canadian  U n i t e d S t a t e s experience w i t h J o i n t committees  indic-  ates 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  their  s u c c e s s , t h e a p p r 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 alternate to traditional collective bargaining i n effecting  manpower a d j u s t m e n t In  programs.  Canada, concern  f o r manpower a d j u s t m e n t h a s b e e n  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 a n d employment p o l i c i e s .  T h e 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 e n h a n c e a n a c t i v e manpower p o l i c y b y 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 e m p l o y e d manpower t o t h e e v e r changing  requirements  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 a n d  managements who changes and  20?  -  agree t o g i v e advance n o t i c e of  enter into j o i n t research  adjustment programs,  Representatives  Consultative Service offer advice mote a n d  co-ordinate  Since  impending  t o e f f e c t manpower o f t h e Manpower  t o the p a r t i e s and  t h e g o v e r n m e n t ' s manpower s e r v i c e s .  i n c e p t i o n of the S e r v i c e about twenty  grams o f manpower a d j u s t m e n t h a v e b e e n i n i t i a t e d i t s auspices.  This  report reviewed  recent  w i t h i n which to evaluate  the  under  emerging  on  framework  e f f e c t i v e of these  S e l e c t e d c a s e s were examined f o r any  pro-  literature  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  amenable f o r use  pro-  programs.  patterns  i n future adjustment procedures;  for  s t r e n g t h s and/or weaknesses i n the 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 of the achievements  of  t h e S e r v i c e i n i t s enhancement o f t h e n a t i o n ' s manpower policies.  The  examination  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 vice.  S u g g e s t e d I m p r o v e m e n t s w e r e recommended on  Serthe  b a s i s of the e s t a b l i s h e d framework. II. The  CONCLUSIONS AND  RECOMMENDATIONS  f o l l o w i n g c o n c l u s i o n s have been drawn from  m a t e r i a l presented  i n this report.  the  Where deemed a p p r o p -  riate,  recommendations have been added.  1.  A broad p a t t e r n i s i d e n t i f i a b l e from the  s t u d i e s t h a t r e v e a l s t h e a p p r o a c h most l i k e l y t o  case evolve  _ 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 p r o g r a m s t h e a u s p i c e s o f t h e Manpower C o n s u l t a t i v e  under  Service.  on a c o n t i n u u m o f management a c t i o n i n v o l v i n g a n  Viewed  increas-  i n g ease of i n t e r n a l adjustment 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 a n d wage m a i n t e n a n c e t h e Manpower C o n s u l t a t i v e functions  as a co-ordinator  o f government  Service  counselling,  placement, 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 a n d management who a r e w i l l i n g t o e n t e r i n t o  joint  r e s e a r c h a n d a s s e s s m e n t o f t h e i r manpower a d j u s t m e n t p r o blems.  H o w e v e r , t h e m u l t i - v a r i a n t i n t r a c i e s o f e a c h 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 o f appropriate  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 d e g r e e o f s o p h i s t i c a t i o n i n m o s t o f t h e c a s e  studies  e s t a b l i s h e d t o f a c i l i t a t e worker adjustment i s determined 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  develops a n adjustment 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  context described of a p p l i c a b i l i t y . Service  Service, analyzed In the  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 P r i n c i p l e s o f t h e Manpower  r e q u i r i n g advance n o t i c e and j o i n t  as c u r r e n t l y expounded Service's  Consultative  consultation  restrict the effectiveness  of the  program t o a c e n t r a l a r e a o f t h e continuum by  v i r t u e of I t s lack of Incentive  a t the outer  M o r e o v e r , union-management programs  extremities.  limit this  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 of the f a c t that:  less  - 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 ; ies  will  ing  a j o i n t endeavour; o n l y s t r o n g unions w i l l  pressure  likely  exhaust a l l other  the part-  e f f o r t s before  attempt-  wield  t o demand t h i s a p p r o a c h t h r o u g h c o l l e c t i v e  gaining; and, i t w i l l  enough bar-  o n l y be d e s i r e d w h e r e t h e p a r t i e s  b e l i e v e some a d v a n t a g e i s t o b e g a i n e d b y t h e u s e o f a third  party,  3.  L e g i s l a t i o n requiring the formation  management p r o g r a m s t o f a c i l i t a t e in  contravention  of joint  union-  manpower a d j u s t m e n t i s  o f t h e d i s c i p l i n e o f t h e C a n a d i a n economy  that advocates f r e e c o l l e c t i v e bargaining  and f r e e  enter-  prise, 4,  Advance n o t i c e o f impending changes t h a t w i l l r e -  sult the It  i n the displacement of workers i s p r e r e q u i s i t e t o e f f e c t i v 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 p r o g r a m s .  cannot be l e f t  t o t h e demands o f c o l l e c t i v e  because of t h e inherent  bargaining  weaknesses i n t h e n e g o t i a t i o n  process 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 . w i l l be v e n t u r e d by v e r y increasing competitive  few f i r m s c a u g h t up i n an  environment.  Neither  It  ever-  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 c h a n g e i s t h e cause o f worker 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  impossible  t o i s o l a t e such d i s p l a c e m e n t s from those caused by factors.  Consequently, advance n o t i c e should  be  other  legis-  l a t e d t o e n s u r e t h a t t h e w o r k e r a n d t h e D e p a r t m e n t o f Manpower a n d 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'  -  210  -  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 e n -  a c t e d a s 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 a s minimum w a g e s , maximum h o u r s , h o l i d a y p a y , e t c . 5.  T h e r e s e a r c h a n d / o r c o m m i t t e e c h a i r m a n h a s become  a t h i r d - p a r t y problem-solver  i n the disposition of the  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 i n c o n t r a v e n t i o n o f the p r i n c i p l e s of the S e r v i c e and a p p a r e n t l y ment o f a w i d e s p r e a d u s e o f i t s p r o g r a m .  to the d e t r i -  The  researcher's  d u t i e s i n t h e development o f an adjustment p l a n should r e a p p r a i s e d a n d more c l e a r l y d e f i n e d . experience  be  The t r e n d o f p a s t  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  allowed  t o d e v e l o p a n d commit t h e m s e l v e s t o a p l a n t h a t t h e y m u s t abide  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  ution.  sol-  M o r e o v e r , w i d e s p r e a d i n i t i a t i o n o f Manpower C o n -  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 premises would l i k e l y r e s u l t i n a shortage men.  A subordinated  of high-calibre research c h a i r -  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 r o b l e m b y e n a b l i n g h i m t o become a c o n s u l t a n t a n d 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  pro-  grams a t one t i m e . 6  0  Under c u r r e n t premises e m p i r i c a l evidence would  suggest that the research ated t o present  an adjustment p l a n i n whloh  i s always r e q u i r e d . maturity  chairman should not f e e l  Experience  oblig-  ratification  h a s shown t h a t  long-run  i n t h e J o i n t development o f s o l u t i o n s t o worker  displacement  problems r e q u i r e s an a i r i n g of c o n f l i c t  free  -  211  -  of time r e s t r a i n t and adjustment p l a n 7. by  Successful  enhancement o f a n a c t i v e manpower p o l i c y  t h e Manpower C o n s u l t a t i v e  cluded  rigidities.  Service  i s currently  pre-  b y v i r t u e o f i t s e m p h a s i s on l a b o u r - m a n a g e m e n t c o -  operation.  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 of 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 current ion  funct-  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 .  s e c o n d 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 which requires  j o i n t research  duced i n importance i n favour ordination of the nation's  Service  of problems should of ensuring  The  be r e -  e f f e c t i v e co-  manpower s e r v i c e s a n d t h e r e b y  p r o v i d i n g a n a t m o s p h e r e more c o n d u c i v e t o a d j u s t m e n t  pro-  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  provided  to facilitate  services  manpower a d j u s t m e n t h a v e b e e n i n -  e f f e c t i v e and inadequate.  I n most eases p r i v a t e  services  have been u s e d I n e f f e c t i n g t h e a d j u s t m e n t program. i s i n contravention  This  of the desired objective of the Ser-  v i c e as i tprecludes  co-ordination  o f t h e government's  manpower s e r v i c e s a n d r e d u c e s 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 D e p a r t m e n t o f Manpower a n d 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  v i c e I s not c l e a r and i t s r e s u l t i n g implementation 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 the  s t r u c t u r e and processes.  Service  i s to provide  that  I f t h e Manpower  Ser-  lacks  dominates Consultative  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 a n d e n s u r e 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 w o u l d 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 rationale—both  i n p o l i c y f o r m u l a t i o n and implementation.  III. 1.  AREAS POR FURTHER STUDY  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 h a s b e e n  limited  i n scope.  To p r o v i d e a n a l l - i n c l u s i v e  evaluation,  much more t h a n a n " a r m - c h a i r " s t u d y i s r e q u i r e d .  Probably  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 t h e Manpower C o n s u l t a t i v e S e r v i c e m e t h o d o l o g y a n d means t o improve  it,  lies  i n t h e o p i n i o n s o f t h e p a r t i e s who h a v e  partaken i n t h e j o i n t committees.  F o r example, a  suit-  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 h a v e e f f e c t e d t h e manpower a d j u s t ment p r o g r a m s w o u l d be o f immense v a l u e . asked  t o evaluate the worth  T h e y c o u l d be  o f t h e Manpower C o n s u l t a t i v e  Service f u n c t i o n i n encouraging  Joint study  committees.  M o r e o v e r , t h e y m i g h t s u g g e s t what c h a n g e s t h e y  believe  n e c e s s a r y t o o v e r c o m e p r o b l e m s t h a t emerged i n t h e i r grams.  A wealth of information l i e s  pro-  i n the experience  t h a t e a c h 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  a m a s s e d i n t h e d i s p o s i t i o n o f t h e s e Manpower C o n s u l t a t i v e Service  cases. The c o m p a n i e s a n d u n i o n s c o u l d be a s k e d t o s t a t e  the advantages  and/or disadvantages  of the process 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 . T h e y c o u l d s p e c i f i c a l l y be a s k e d i f t h e r e was  any  motiv-  a t i o n a l f o r c e i n the a v a i l a b i l i t y of the f i n a n c i a l i n centive.  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  o p i n i o n on t h e u s e solvers.  The  of n e u t r a l c o n s u l t a n t s as  i n f o r m a t i o n gleaned  i e s t o a n a d j u s t m e n t p r o g r a m may f o r a r e v i t a l i z a t i o n of the  an  problem-  from each of the w e l l provide  the  partbasis  current premises 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  versy  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  contro-  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 e c o n o m i c g o a l i n t e r m s o f a maximum a l l o c a t i o n o f manpower r e s o u r c e s . has  argued that e f f o r t s should  Dr. be  C r i s p o i n one concentrated  report on  grams t h a t complement a n d  supplement the l a b o u r  T h a t I s , he  suggests.that  the l a b o u r market should  given every  chance t o work f r e e of r e s t r i c t i v e  pro-  market . 1  be  devices.  A t D o m t a r 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 p r o b l e m s o f w o r k e r d i s p l a c e m e n t establishment programs . 2  of a fund t o p r o v i d e  r e s u l t e d i n the  f o r f u t u r e manpower  I s t h i s not maximizing the  internal  adjust-  •"•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 R e s p o n s e t o Change D i s c u s s i o n " . 0p_. C i t . , p . 123. C r i s p o , J o h n H.G., Chairman. "Domtar J o i n t L a b o u r Management S u b - C o m m i t t e e R e p o r t on Human A d j u s t m e n t t o I n d u s t r i a l Conversion". 0p_. C i t . , p. 19. 2  - 214  -  merit o f a n e n t e r p r i s e ' s w o r k f o r c e t o t h e d e t r i m e n t o f the f r e e o p e r a t i o n  of t h e labour market?  M o r e o v e r , have  n o t many o f t h e s o l u t i o n s t o t h e Manpower Service  Consultative  c a s e s a i m e d a t s u c h maximum i n t e r n a l  An answer t o these q u e s t i o n s  adjustment?  c o u l d e i t h e r enhance o r d e s -  t r o y t h e p u r p o s e o f t h e Manpower C o n s u l t a t i v e 3. pects  Service,  I t h a s b e e n 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 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 Branch,  Consultation  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 c h a n g e s p r e s e n t e d t h e first ation.  realistic  o b j e c t i v e f o r labour-management c o - o p e r -  I t c o u l d a l s o be a r g u e d t h a t one o f t h e s h o r t -  c o m i n g 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 i s i t s l a c k of promotional a b i l i t y .  T h a t i s , t o be r e a l l y  effective,  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 a d j u s t m e n t s h o u l d aded i n f r o n t of t h e n a t i o n ' s  labour  be c o n s t a n t l y p a r -  force.  The s e r v i c e s  of 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  exposed t o t h e Canadian worker  be r e p e a t e d l y  so t h a t when f a c e d w i t h a n a d j u s t m e n t he i s f a m i l i a r  with  it. I t w o u l d 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  Ser-  v i c e a n d t h e Labour-Management C o n s u l t a t i o n B r a n c h have both a complementary and a supplementary s e r v i c e a v a i l a b l e to the other.  The Labour-Management C o n s u l t a t i o n  Branch  -215 -  could be responsible f o r a l l promotional coverage through such m a t e r i a l as "Team Work i n Industry".  Through such a  device the worker would be c o n t i n u a l l y kept informed of the experience of Canadians with each of the Department of Manpower and Immigration's s e r v i c e s .  I n such a program  the Labour-Management C o n s u l t a t i o n Branch would be r e s 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 s e r v i c e s as w e l l as p o s s i b l y a d m i n i s t e r i n g ment program.  the a d j u s t -  Needless t o say, t h i s would involve con-  s i d e r a b l e planning t o be e f f 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 t h o r -  oughly a r e mentioned as a f u r t h e r attempt t o 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 t o p u b l i s h i n f u t u r e an integrated a n a l y s i s of a number of cases researched during  1963-66  to provide a "manual" of adjustment methods that may be u s e f u l t o enterprises i n a d j u s t i n g t o major changes . 1  A  r g a n i z a t i o n f o r Economic Co-operation and DevelManpower and S o c i a l A f f a i r s D i r e c t o r a t e A c t i v i t y 2 0 - 1 3 B : Co-ordinating Technical Change and Manpower P l a n ning a t E n t e r p r i s e L e v e l . 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 . opment.  - 216 study  o f t h e s e a d j u s t m e n t m e t h o d s c o u l d he o f 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 a n d means a r e n e e d e d 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 very  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 a s e s was  any  a t t e m p t t o draw on a n y r e s e a r c h a l r e a d y  R a t h e r i t was a l l p r o v i d e d  undertaken.  by t h e r e s e a r c h e r and each  case evolved as a completely others  there  separate  problem from the  studied. Thirdly, there  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 .  Possibly  t h e o f f e r o f a n i n c e n t i v e f o r manpower p l a n n i n g  should  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  Graphic A r t s and Plumbing i n d u s t r i e s t h a t attempt t o provide,  i n advance, f o r any supply/demand  Obviously,  much more s t u d y  imbalances.  i s required to effect-  i v e l y deal with a l l the ramifications inherent f o r a n a c t i v e manpower p o l i c y . achieved  This  i n striving  report w i l l  have  i t s p u r p o s e i f i t h a s s h e d l i g h t o n some m e t h o d s  b y w h i c h s u c h a n a c t i v e manpower p o l i c y c a n be e n h a n c e d .  BIBLIOGRAPHY Beaumont, R.A. and H e l f g o t t , R.B. Management. Automation and People. B r a t t l e b o r o , Utah: The Book Press, 1964. B e r k w i t t , George. "Middle Managers vs. The Computer". Dun's Review and Modern Industry. November, 1966. Cardin, Jean-Real. 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Meeting Today's Challenges to Labour-Management R e l a t i o n s . Englewood C l i f f s , N.J.: P r e n t i c e - H a l l , Inc.,  1965*  Hildebrand, G.H. "The Use of T r i p a r t i t e Bodies to Supple ment C o l l e c t i v e Bargaining". 1 9 6 1 I.R.R.A. Spring Meeting. Labor Law J o u r n a l . J u l y , 1 9 6 1 . House, A,W. "Planning f o r Future Manpower Changes". I n d u s t r i a l Canada. December, 1 9 6 4 . K o s s o r i s , 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. I r w i n , Inc., 1 9 6 5 « L e a v i t t , H.J. and W h i s l e r , T.L. "Management i n the 1 9 8 0 ' Harvard Business Review. November-December, 1 9 5 8 . L e v i t a n , Sar. A. " S t r u c t u r a l Unemployment and P u b l i c P o l i c y " . Labor Law J o u r n a l . 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 t o F i f t e e n t h Annual Conference a t the I n d u s t r i a l Relations Center, M c G i l l U n i v e r s i t y , Montreal, June 8, 1964. McLaughlin, R.P. Labor Law J o u r n a l .  August, 1964.  M i c h a e l , D.N. 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 Democ r a t i c I n s t i t u t i o n s , 1962. Montague, J.T. "Economic and S o c i a l C h a r a c t e r i s t i c s of European Labour-Management Co-operation". Unpubl i s h e d paper, 1961. . "Recent American Developments and Experiments i n Labour-Management R e l a t i o n s " . Economic Council of Canada N a t i o n a l Conference on Labour-Management R e l a t i o n s , 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 R e l a t i o n s : U n i v e r s i t y 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 I n d u s t r i a l R e l a t i o n s : U n i v e r s i t y of B r i t i s h Columb i a , 1963.  Organization f o r Economic Co-operation and Development. Manpower and S o c i a l A f f a i r s D i r e c t o r a t e A c t i v i t y 20-13B: Co-ordinating Technical Change and Manpower Planning a t E n t e r p r i s e L e v e l . P a r i s , France, J u l y 1, 1966. R e s t r i c t e d paper. . The Requirements of Automated Jobs. North American J o i n t Conference, Washington, D.C., 1964. P a r i s , France: O.E.C.D. P u b l i c a t i o n , 1965. Reader's Digest. "Have you a b e t t e r answer?". isement appearing i n March, 1967 Issue.  Advert-  Report of the Commission of I n q u i r y Into the E f f e c t s of Mechanization i n the Windsor (Quebec) P l a n t of Domtar Pulp and Paper. Quebec, September, 1965. Simkin, W i l l i a m . Address before F i f t h C o n s t i t u t i o n a l Convention, A.F.L.-C.I.O. D a i l y Proceedings. New York, November 15, 1963.  - 220 S n y d e r , 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 a n d 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 b y O n t a r i o Government Departments of Economics and Development, E d u c a t i o n , L a b o u r a n d O n t a r i o E c o n o m i c C o u n c i l , T o r o n t o , 1963. S o m e r s , G.G., Cushman, E . L . a n d W e i n b e r g , 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 C h a n g e . New Y o r k : H a r p e r a n d 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.  V a n c o u v e r S u n . T h e . " F i r s t A u t o m a t i o n C o n t r a c t Won b y l o c o O i l W o r k e r s " . F e b r u a r y 14, 1967. . "Who w a n t s l a b o u r - m a n a g e m e n t 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 p a p e r o n F e b r u a r y 21,  1967.  W i e n e r , N. The Human U s e o f Human B e i n g s : C y b e r n e t i c s a n d S o c i e t y . B o s t o n : H o u g h t o n 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 o f L a b o u r - M a n a g e m e n t Coo 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 Centre: 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  In the Matter of The Manpower C o n s u l t a t i v e  Service  and In the Matter of a Proposal f o r Participation 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 C o l u m b i a T o w i n g  Industry  V a n c o u v e r , B„C.  - 222 -  The J o i n t C o n s u l t a t i v e C o m m i t t e e of t h e B r i t i s h Columbia Towing Industry. c/o M r . J o h n D r e w , 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 H o n . A l l a n J . M a c E a e h e n , M i n i s t e r of Labour, Government o f Canada, Ottawa. Sir: On b e h a l f o f t h e J o i n t C o n s u l t a t i v e C o m m i t t e e o f 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"), herewith i s o u r 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 Research Program I n c e n t i v 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 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 o f t h e Department o f Labour, f e d e r a l f u n d s 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 o f h a l f t h e c o s t s o f r e s e a r c h a n d p l a n n i n g f o r manpower a d j u s t m e n t b r o u g h t about b y 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 h a v e 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 g r o w i n g p r o b l e m o f "manning" i n t h i s i n d u s t r y which i s under f e d e r a l j u r i s d i c t i o n . During the present 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 h a s b e e n a g r e e d t o remove f r o m t h e b a r g a i n i n g t h i s m o s t d i f f i c u l t p r o b l e m i n t h e hope t h a t a g r e e m e n t m i g h t be reached on t h e r e m a i n i n g i s s u e . A p p e n d i x "B" o f t h e P r o p o s a l d e s c r i b e s d e t a i l s o f o u r program.  for Participation  - 223 The J o i n t C o n s u l t a t i v e C o m m i t t e e 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 a n d a w a i t s your r e p l y . Yours  truly,  f o r B r i t i s h C o l u m b i a T o w b o a t Owners' Association.,  for B y a n d on b e h a l f of the J o i n t Consultative for Committee o f the B r i t i s h C o l u m b i a Towing Industry for  Canadian Merchant S e r v i c e G u i l d .  Canadian Brotherhood of Railway, Transp o r t and G e n e r a l Workers, L o c a l 425. • Canadian Brotherhood of Railway, Transp o r t and G e n e r a l W o r k e r s , L o c a l 400.  f o r Seafarers' I n t e r n a t i o n a l Union of Canada, P a c i f i c Coast D i v i s i o n .  -  224  APPENDIX  "A"  Companies and U n i o n s i n v o l v e d i n t h e B r i t i s h C o l u m b i a T o w i n g I n d u s t r y a n d r e p r e s e n t e d b y t h e J o i n t Cons u l t a t i v e Committee: I,  C o m p a n i e s ( r e p r e s e n t e d b y B.C. Towboat Owners* Association):  1. 2. 3o 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.  18. 19.  20. 21. 22. 23.  24. 25.  26. 27.  28.  29.  30. 31. 32. 33. 34.. 35.  36. 37. 38. 39. 40. 41. 42.  A t l a s Towing L t d . B a i r d ' s Tugboats L t d . B e c k s t r o m T o w i n g Co. L t d . B e n d i c k s o n T o w i n g Co. L t d . B r i d g e T o w i n g Co. ( M a r p o l e T o w i n g ) Bute Towing L t d . C a n a d i a n T u g b o a t Co. L t d . C a t e s , C H . & Sons C h e m a i n u s T o w i n g Co. L t d . C l i f f , M.R. T u g b o a t C o . L t d . C o a s t a l T o w i n g Co. L t d . Deeks-McBride L t d . E l s i e Towing S e r v i c e E s c o t t , A. Co. L t d . G.M. F l y e r T o w i n g C o . L t d . G r e a t West Towing & S a l v a g e L t d . G u l f o f G e o r g i a T o w i n g Co. L t d . Harbour S e r v i c e s L t d . H a r k e n T o w i n g Co. L t d . H o d d e r T u g b o a t Co. L t d . Hutowco M a r i n e L t d . I s l a n d Tug & B a r g e L t d . I v e r s o n Bros. Towing K i n g c o m e N a v i g a t i o n Co. L t d . L y t t l e Bros. L t d . M a r i t i m e T o w i n g Co. L t d . M c K e n z i e B a r g e & M a r i n e Ways L t d . Nanaimo M a r i n e S e r v i c e s L t d . O c e a n Cement L t d . P a c i f i c T a n k e r Co. L t d . Parsons Towing L t d . P o i n t G r e y T o w i n g Co. L t d . Q u a t s i n o N a v i g a t i o n Co. L t d . R i v e r T o w i n g Co. L t d . Stone Bros. S t r a d i o t t i Brothers L t d . S t r a i t s Towing L i m i t e d S w i f t s u r e T o w i n g Co. L t d . T e x a d a T o w i n g Co. L t d . V a l l e y Towing L t d . V a n c o u v e r T u g B o a t Co. L t d . V i c t o r i a Tugboats L t d .  - 225 V i k i n g T u g b o a t Co. L t d . W e s t e r n Tug & Barge L t d . Westminster Tugboats L t d . Y o r k e , F.M. & S o n s L t d .  Canadian Merchant S e r v i c e G u i l d . Canadian Brotherhood of Railway, Transp o r t and G e n e r a l Workers, L o c a l 425. Canadian Brotherhood of R a i l w a y , Transp o r t and G e n e r a l W o r k e r s , 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 of Canada, P a c i f i c Coast 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 C o m m i t t e e o f the B r i t i s h Columbia Towing I n d u s t r y I.  Organization: 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 of  presentatives who  of the  organizations  h a v e come t o g e t h e r  of "manning" I n t h e Towing  i n d i v i d u a l s appointed  d i v i d u a l s appointed Director w i l l r e s e a r c h and i t t e e and  be  "A"  planning  i n the  matter  Industry.  A R e s e a r c h C o m m i t t e e has o f two  l i s t e d i n Appendix  f o r the 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  ing  re-  been e s t a b l i s h e d c o n s i s t by management and  by t h e u n i o n s .  r e t a i n e d t o be  two  in-  A Research Chairman-  responsible f o r  performing  p l a n n i n g w i t h t h e a i d o f t h e R e s e a r c h Comm-  under the d i r e c t i o n of the J o i n t C o n s u l t a t i v e  Committee. Mr.  E.D.  couver, B r i t i s h  McPhee, of  C o l u m b i a , has  i t i o n of Research II.  2588 W a l l a c e  Crescent,  been a p p o i n t e d  Past  The  Manpower A d j u s t m e n t P r o b l e m  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 f f o r t s t o reach agreement o v e r t h i s  Statement of  pos-  Stated:  and  c h a n g e so t h a t " m a n n i n g s c a l e s " a r e  unsuccessful. III.  to the  Chairman-Director.  e n t l y c h a r a c t e r i z e d by g r o w t h , c o m p e t i t i o n logical  Van-  Purpose:  techno-  i n dispute.  i s s u e have been  -  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 f u t u r e i n the Towing Industry with the aim of preparing recommendations f o r c o n s i d e r a t i o n by the J o i n t C o n s u l t a t i v e Committee. In c a r r y i n g 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 , o b l i g a t i o n s 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 s h a l l equate the 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 those of 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 the i n d u s t r y . The Research Committee s h a l l report r e g u l a r l y to the J o i n t Committee and w i l l consult r e g u l a r l y i n prep a r i n g 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. T o t a l costs are estimated a t $13,000 (see below) and w i l l be shared on the b a s i s of one-half by the Government of Canada and one-half by the organizations represented by the J o i n t C o n s u l t a t i v e Committee. The remuneration of the Research  Chairman-Director  s h a l l be a t the r a t e of $100.00 per day. The organizations represented by the J o i n t Consult a t i v e Committee s h a l l share t h e i r p o r t i o n of the t o t a l costs on the b a s i s 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 , a n d o n e - h a l f b y t h e l a b o u r union organizations. ESTIMATE OP COSTS a n d COST DISTRIBUTION Total  Government o f Canada  B.C. T o w b o a t Owners A s s n .  Labour Union Organizations  Research ChairmanDirector  9,000  4,500  2,250  2,250  Administrative  1,000  500  250  250  Research Committee2 Mgt Repr e s e n t 's 1,500 2 Union Representatives 1.500  750  750  $13,000  $6,500  750  750  $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 o f 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 " t h a t changes shall  i t i s agreed  i n manning d u r i n g t h e p e r i o d o f t h i s  enquiry  o n l y be made I n c a s e s w h e r e a c h a n g e i n a r e a ,  of j o b , o r v e s s e l equipment  type  w o u l d mean t h a t t h e new man-  n i n g w o u l d 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 the Industry f o r vessels of t h i s  type.  I n a n y c a s e where i t i s n o t a g r e e d t h a t t h e change is  i n accordance w i t h m a j o r i t y p r a c t i c e i nt 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 b y a m a j o r i t y v o t e o f t h e research  committee.  The d e c i s i o n o f t h e R e s e a r c h C o m m i t t e e s h a l l b e a  -  t e m p o r a r y one s h a l l be  f o r the  229  duration  based s t r i c t l y  -  of the  enquiry only  on t h e q u e s t i o n  the manning p r a c t i c e i s i n a c c o r d w i t h in a majority  of the  and  of w h e t h e r o r existing  i n d u s t r y f o r t h i s type of  not  practice vessel  d o i n g t h i s type of work. It  i s f u r t h e r agreed, there  changes i n the  composition of the  unless  a g r e e d t o by a l l p a r t i e s  (b)  Vessels  a g r e e m e n t on  o f t h e 65  s t a t u s quo,  m a n n i n g m u s t be now  operating  unless  c r e w s and  duration  new  reach on  class  vessels  put  enquiry.  s h a l l be  no  major  crews f o r t h e s e  vessels  concerned.  c a r r y a crew of f i v e and  c a r r y a crew o f f o u r and  of t h i s  of t h i s  composition of the  a g r e e d t o by a l l p a r t i e s  will  vessels,  i t i s agreed that a formula  Therefore, a l l p a r t i e s agree vessels  major  concerned,  i s f u r t h e r agreed, there  changes i n the  no  foot class - In order to  w i t h f o u r man the  be  crews f o r t h e s e  established for vessels  into service during It  will  t h i s w i l l be  t h a t h a l f of the  these  other half  established  in  will the  f o l l o w i n g ways Every second v e s s e l will  of t h i s t y p e w i t h i n a  c a r r y a c r e w o f f o u r men,  crew of f i v e ,  e,g„  a l l others w i l l  company  carry  a  - 230 No. o f v e s s e l s of t h i s type operated by Company  Number o f Crew  1st  2nd  3rd  4th  5th  Vessel Vessel Vessel Vessel Vessel  1 2 3 4 5 6  Vessel  5  5 4 4 5 5 4 5 4 5 4 5 4 5 4 5 4 d e c i s i o n i s made o n l y s o t h a t 5  This  q u i r y can c a r r y forward. stood  6th  Therefore  5 5 4 t h e manning en-  i t i s clearly  under-  t h a t t h i s d e c i s i o n i s t o h a v e no i n f l u e n c e o n t h e  outcome o f t h e e n q u i r y a n d t h i s i n the statement of purpose.  i s t o be c l e a r l y  stated  APPENDIX B MANPOWER ASSESSMENT INCENTIVE AGREEMENT MEMORANDUM OF AGREEMENT DATED the 24th day of February, A.D.  1965o  BETWEEN: THE MINISTER OF LABOUR OF CANADA h e r e i n a f t e r r e f e r r e d t o as "the M i n i s t e r " OF THE FIRST PART AND:  THE JOINT CONSULTATIVE COMMITTEE OF THE BRITISH COLUMBIA TOWING INDUSTRY h e r e i n a f t e r r e f e r r e d t o as "the Committee" OF THE SECOND PART WHEREAS vote No 5 of the A p p r o p r i a t i o n A c t , No. 10, 1 9 6 4 , a u t h o r i z e s payments i n accordance w i t h agreements entered i n t o w i t h the approval of the Governor i n C o u n c i l by the M i n i s t e r of Labour w i t h provinces, employers and workers I n respect of labour m o b i l i t y and assessment i n c e n t i v e s ; 0  AND WHEREAS t e c h n o l o g i c a l developments i n the towing i n dustry of B r i t i s h Columbia have created manpower a d j u s t ment problems; AND WHEREAS the Committee was e s t a b l i s h e d pursuant t o an agreement entered i n t o between the member companies of the B r i t i s h Columbia Towboat Owners' A s s o c i a t i o n and the unions representing t h e i r employees f o r the purpose of c a r r y i n g out a program of research and assessment with a view t o developing p o s s i b l e s o l u t i o n s t o the s a i d manpower adjustment problems; AND WHEREAS the M i n i s t e r has been authorized t o enter i n t o t h i s agreement by Order i n C o u n c i l P.C. 1 9 6 5 - 1 4 / 1 3 8 of January 28th 1 9 6 5 . NOW, THEREFORE, THIS AGREEMENT WITNESSETH that the p a r t i e s hereto have mutually agreed as f o l l o w s : 1. The Committee w i l l undertake a program of research and assessment covering a l l aspects of the manpower  -  232  -  adjustment problems a r i s i n g out of t e c h n o l o g i c a l developments 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 gather a l l relevant information r e l a t i n g to t h e manpower a d j u s t m e n t p r o b l e m s r e f e r r e d t o I n clause 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 the 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 a s s e s s m e n t 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) (II)  (iii) (d)  the 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 workers i n the i n d u s t r y , the necessity of equating the d e s i r a b i l i t y f o r technical efficiency with t h e n e e d f o r s o u n d i n d u s t r i a l a n d human r e l a t i o n s , and 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 ,  w i l l make a w r i t t e n r e p o r t o f i t s f i n d i n g s recommendations t o t h e Committee,  and and  3, The C o m m i t t e e w i l l e n g a g e t h e s e r v i c e s o f a comp 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 of t h e research sub-committee e s t a b l i s h e d I n accordance 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 p r o g r a m , t h e C o m m i t t e e w i l l f o r w a r d a copy of t h e r e p o r t of t h e r e s e a r c h sub-committee to the M i n i s t e r together with a statement of the a c t i o n s , i f a n y , i t p r o p o s e s t o t a k e a s a r e s u l t o f t h e recommendations In the s a i d report, 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 a g r e e m e n t , p a y t h e C o m m i t t e e a n a s s e s s m e n t 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 cent of the sharea b l e d i s b u r s e m e n t s made b y t h e C o m m i t t e e i n c a r r y i n g o u t 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, the assessment  incentive  - 233 s h a l l he due a n d p a y a b l e i n f u l l t h i r t y d a y s a f t e r t h e date t h e M i n i s t e r r e c e i v e d the 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, b u t t h e M i n i s t e r may, o n a p p l i c a t i o n t h e r e f o r b y t h e C o m m i t t e e make up t o f o u r p r o g r e s s p a y m e n t s on a c c o u n t o f t h e a s s e s s m e n t i n c e n t i v e t o r e i m b u r s e t h e C o m m i t t e e 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 the a p p l i c a t i o n i s made 0  7. The amount o f a n y 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 cent of the d i s b u r s e m e n t s made b y t h e C o m m i t t e e f o r t h e p e r i o d i n respect of which 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 p a y m e n t s t o t a l l i n g more t h a n f i f t y - f i v e h u n d r e d 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 a n d 6, no payment w i l l be made b y t h e M i n i s t e r on a c c o u n t o f t h e a s s e s s m e n t 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 s u c h f o r m a s t h e M i n i s t e r may p r e s c r i b e a n d a c c o m p a n i e d b y s u c h o t h e r f o r m s a n d d o c u m e n t s a s t h e M i n i s t e r may r e q u i r e , 10. The C o m m i t t e e w i l l k e e p s u c h r e c o r d s a n d p r o v i d e t h e M i n i s t e r w i t h s u c h i n f o r m a t i o n a s 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, 11.  I n t h i s agreement, t h e e x p r e s s i o n (a) (b) (o) (d)  " a s s e s s m e n t i n c e n t i v e " means t h e a s s e s s m e n t 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? " 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 Columbia; " p r o g r a m " means t h e p r o g r a m r e f e r r e d t o i n clause 1 ; " 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 hereto.  I N WITNESS WHEREOF t h e p a r t i e s h e r e t o h a v e s e t t h e i r h a n d s a n d s e a l s on t h e d a y a n d y e a r f i r s t a b o v e w r i t t e n . I N THE  PRESENCE  OF:  THE  MINISTER OF  LABOUR  - 234 I N THE PRESENCE OP:  THE JOINT CONSULTATIVE COMMITTEE OF THE B R I T I S H COLUMBIA TOWING INDUSTRY  - 235 S C H E D U L E SHAREABLE DISBURSEMENTS F o r purposes o f t h e agreement t o which t h i s schedu l e i s attached, the "shareable disbursements" a r e as follows: Salaries 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 s u b - c o m m i t t e e , up t o a maximum o f n i n e t h o u s a n d dollars„  2  The r e g u l a r s a l a r i e s o r wages o f e m p l o y e e s o r a p p o i n t e e s , o f t h e companies and t h e unions named b y t h e C o m m i t t e e t o s e r v e u n d e r 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 which the chairman-director c e r t i f i e s they 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 t h o u s a n d d o l l a r s .  0  Administration 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 supplies, stenographic services, the p r e p a r a t i o n and p r i n t i n g of the report of the r e s e a r c h sub-committee and such o t h e r necessa 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 t h o u s a n d dollars.  APPENDIX C  CO-ORDINATING MANPOWER ADJUSTMENT AND TECHNOLOGICAL CHANGE I N THE B R I T I S H COLUMBIA TOWING INDUSTRY  A CASE SUMMARY OP JOINT RESEARCH AND CONSULTATION B Y UNIONS AND EMPLOYERS INTO MANPOWER ASSESSMENT AND PLANNING PROBLEMS I N THE B R I T I S H COLUMBIA TOWING INDUSTRY UNDER THE A U S P I C E S OP THE MANPOWER CONSULTATIVE SERVICE OF THE FEDERAL DEPARTMENT OF MANPOWER AND IMMIGRATION  Prepared by A l e e J.K, K e y l o c k  - 237 TABLE OF CONTENTS Page 238  INTRODUCTION DEVELOPMENT OF THE PROGRAM  238  PROGRAM METHODOLOGY  241  ASSESSMENT OF THE PROBLEM  243  Canada Shipping Act  243  R e s p o n s i b i l i t y f o r Manning  245  RECOMMENDED APPROACH TO MANPOWER ADJUSTMENT Determinants of Manning Scales  250 250  Research Recommendations  250  Major Areas of Contention  253  Unions' Submission  254  Owners' Submission  258  B i n d i n g Decisions  26l  Accidents and Safety  268  T r a i n i n g and L i c e n s i n g  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 I N THE B R I T I S H COLUMBIA TOWING INDUSTRY I. For the past  INTRODUCTION  t w o y e a r s l a b o u r a n d management o f  t h e B r i t i s h C o l u m b i a T o w i n g I n d u s t r y h a v e met i n j o i n t c o n s u l t a t i o n and research, under t h e auspices 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  issues  m a n n i n g a n d minimum c r e w r e q u i r e m e n t s .  o f t h e Manconcerning  During t h i s  period  t h e p a r t i e s have endeavored t o r e a c h agreement on manning p r o b l e m s a r i s i n g o u t o f 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 industry.  Many o f t h e p r o b l e m s , w h i c h w e r e 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 , w e r e o v e r c o m e i n the process of research that s t i l l  and j o i n t c o n s u l t a t i o n and those  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  binding decision-making  arrangement, t h e d u r a t i o n and  e f f e c t of which would terminate otherwise review  agreed.  o n A p r i l 1, 1968  The f o l l o w i n g r e p o r t  unless  i s a summary a n d  of the s a l i e n t features of the case. II. The  DEVELOPMENT OF THE PROGRAM  B r i t i s h C o l u m b i a Towing I n d u s t r y has grown a t  l-Thls r e p o r t i s b a s e d o n 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 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 a n d c o r r e s p o n d e n c 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 ; a n d p e r s o n a l i n t e r v i e w s conducted by t h e author.  - 239 s u e h a r a p i d r a t e t h a t i t has become one o f t h e  major  d e t e r m i n a n t s o f 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 industry. al  I n d e e d , i t h a s become t h e l a r g e s t s i n g l e c o a s t -  c a r r i e r i n the Province.  The  reason f o r t h i s  rapid  growth l i e s m a i n l y i n the tugboat'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 . scows,  barges and  With  r a f t s , the 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 lime, f e r t i l i z e r ,  fuel,  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 . B u t t e c h n o l o g i c a l c h a n g e has a c c o m p a n i e d growth.  From 19 3 2  this  o n w a r d s , n e w e r a n d more p o w e r f u l d i e s -  e l e n g i n e s h a v e 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 , h o w e v e r , no  emer-  gent p a t t e r n s a p p e a r e d w i t h r e l a t i o n t o crew s i z e and carried.  The m a n n i n g p r o b l e m s  load  t h a t d e v e l o p e d were t h o s e  unique t o a growing i n d u s t r y , and  i n that respect necess-  i t a t e d a d v a n c e 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 logical  techno-  change. B o t h t h e o w n e r s a n d u n i o n s h a v e shown f u l l  evidence  o f 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 the B r i t i s h Towing I n d u s t r y . i t t e e was  As  e a r l y as J a n u a r y ,  I96I a  Columbia J o i n t Comm-  formed w i t h r e s p r e s e n t a t i v e s from the  C o l u m b i a Towboat Owners' A s s o c i a t i o n and t h e  British  Canadian  - 240 M e r c h a n t S e r v i c e G u i l d , one  of f o u r 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 I n F e b r u a r y , 1962  the r e p r e s e n t a t i v e s  came t o a g r e e m e n t  on t e r m s u n d e r w h i c h t h e y b e l i e v e d t h a t t h e could operate economically v e s s e l s c o u l d be able  Industry.  industry  w h i l e , a t t h e same t i m e ,  s u f f i c i e n t l y manned t o p r o v i d e  degree of s a f e t y .  The  a  Owners' A s s o c i a t i o n  the reason-  represen-  t a t i v e s commented, h o w e v e r , t h a t "a c e r t a i n segment o f the 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 the  e x i s t i n g system of manning and  t h i s subject to progress with the  Guild".  advantage under  t h e r e f o r e do n o t  wish  beyond the d i s c u s s i o n s t a g e  Therefore,  the Executive  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 posals  r e f e r r i n g p a r t i c u l a r items to a r b i t r a t i o n .  J o i n t C o m m i t t e e was December 13, c o u l d not binding  1963  subsequently e s t a b l i s h e d but  t h e r e were s t i l l  be a g r e e d u p o n a n d  the  A  new  by  c e r t a i n clauses  c a s e was  pro-  which  r e f e r r e d to  arbitration. C o l l e c t i v e agreements i n the  i n a t e i n t h e a u t u m n o f 1964. a b l e means o f s o l u t i o n a n d terms of r e f e r e n c e  i n d u s t r y were t o  H a v i n g f o u n d no not  even b e i n g a b l e  for binding arbitration  other  termavail-  to agree  proceedings,  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 a g r e e m e n t .  It  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  going  to  develop over the question  ensuing neg-  o t i a t i o n s and  of manning In the  t h a t a s t r i k e w o u l d be  Inevitable.  was  on  • - 241 At t h i s time a representative of the Manpower Cons u l t a t i v e Service proposed to the p a r t i e s that the issue of manning he t r e a t e d 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,  c o n s i s t i n g of representatives of a l l f o u r unions and  the  Owners' Association,, The committee was to meet f o r the purpose of research, c o n s u l t a t i o n and planning i n the area of manning i n the Industry. III.  PROGRAM METHODOLOGY  On the 28th day of December, 1964 each of the f o u r 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 and the member companies of the B r i t i s h C o l umbia Towboat Owners' A s s o c i a t i o n signed a Memorandum of Understanding i n which the p a r t i e s agreed to c a r r y out a program of J o i n t 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 n e g o t i a t i o n s 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. agreed that any issues remaining  I t was f u r t h e r  i n disagreement a f t e r  hearing f u l l argument from both p a r t i e s would be to the Research Chairman f o r binding d e c i s i o n .  submitted The  perti-  nent statements of the Binding Award p r o v i s i o n f o l l o w :  The Proposal f o r P a r t i c i p a t i o n , Appendix A, p. 221, includes the p e r t i n e n t information contained i n the Memorandum of Understanding. x  - 242 " I n c a r r y i n g out the d e c i s i o n making f u n c t i o n Dr. 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 m e e t i n g s o f t h e J o i n t C o n s u l t a t i v e C o m m i t t e e . No o t h e r form of communication s h a l l take place having to do w i t h t h e s u b j e c t o f m a n n i n g 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 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 a n d c l a s s i f i c a t i o n of personnel aboard the v e s s e l 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 c a s e s w h e r e a c h a n g e i n a r e a , t y p e o f J o b , o r v e s s e l e q u i p m e n t w o u l d mean t h a t t h e new m a n n i n g w o u l d 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 the i n d u s t r y f o r vessels of t h i s type." The  Manpower C o n s u l t a t i v e  S e r v i c e , as a  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  ive  assumed o n e - h a l f  s e r v i c e t o t h e p a r t i e s and  of the program. t h a t no  H o w e v e r , i t was  p u r p o s e of c a r r y i n g out The  provided  research  and  the  t h e f i n a l and  binding the  procedure.  remaining  the  onebe  unions.  I n h a n d i n g down t h e i r r e c o m m e n d a t i o n s i n t h e of a  fed-  the  d i s c u s s i o n program were t o  by t h e Owners* A s s o c i a t i o n a n d  cost  agreed  type of  available for  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  h a l f of the  administrat-  u n d e r s t o o d and  f e d e r a l government f u n d s , o r o t h e r  e r a l g o v e r n m e n t p a r t i c i p a t i o n was  federal  form  " B e p o r t on M a n n i n g " , t h e R e s e a r c h S u b - C o m m i t t e e made  t h e i r p o s i t i o n c l e a r i n the f o l l o w i n g statement: "We h a v e e n d e a v o u r e d 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 throughout our study i n the 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 u n d e r t h e s e p r i n c i p l e s . We w i l l suggest, s t r o n g l y , that c e r t a i n s p e c i f i c s should be made i n t h e a l l o c a t i o n o f c r e w , b u t t h e owne r s a n d m a s t e r s h a v e t h e r i g h t t o make s u c h 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  ideas presented surrounding  i n t h e r e s e a r c h recommendations and t h e  joint consultation, IV.  ASSESSMENT OF THE PROBLEM  Canada S h i p p i n g A c t In attempting aspects both  1  t o make r e c o m m e n d a t i o n s c o v e r i n g a l l  o f manning i n t h e B r i t i s h Columbia Towing  Industry  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 Research  S u b - C o m m i t t e e was i m m e d i a t e l y  faced with the determination  of 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 concerned.  The f i r s t  s t e p i n s u c h 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 a n d e s t a b l i s h t h e l e g a l r o l e a s p r o v i d e d f o r i n t h e Canada  Shipping  Act, 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 b y a l l s e a g o i n g by d i r e c t i o n o r b y e x c l u s i o n . towing  either  Specifically, f o r the  i n d u s t r y , t h e A c t determines the type of v e s s e l  subject t o direction or exclusion. i s determined by gross those  vessels  This type  of vessel  tonnage and nominal horsepower;  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  fif-  teen tons 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 tugs g e n e r a l l y  ^Canada S h i p p i n g A c t , R e v i s e d  (1952), C h . 29.  operate  S t a t u t e s o f Canada.  - 244 i n "home t r a d e " w a t e r s .  F o u r c l a s s i f i c a t i o n s o f home  t r a d e v o y a g e 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 n s p e c t i o n B r a n c h o f t h e Department  i s s u e d by t h e Steamship 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 v o y a g e  means: "...a voyage n o t b e i n g a n 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 other than Hawaii, S t .P i e r r e and Miquelon, the 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 a n d t h e northeast coast o f South America, i n t h e course o f w h i c h a s h i p d o e s n o t go s o u t h o f t h e s i x t h p a r a l l e l of north latitude." 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 o f minimum m a n n i n g r e q u i r e m e n t s o f m a s t e r s , mates,  e n g i n e e r s a n d seamen.  A number o f s e c t i o n s o f t h e  A c t s t a t e requirements under s p e c i f i c the o p e r a t o r s a r e e x p e c t e d t o comply. Section 115(1),  conditions t o which A statement such as  i . e . "Every steamship 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 m a k i n g a n y v o y a g e , be provided with engineers duly c e r t i f i c a t e d according t o the 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 o f 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 o f 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 Board o f Steamship I n s p e c t o r s . ial  duty of t h i s Board l i e s  m a c h i n e r y a n d equipment  The e s s e n t -  i n the inspection of hulls,  t o ensure t h a t they a r e seaworthy  f o r t h e j o b t h e y a r e Intended 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 the  l i f e - s a v i n g e q u i p m e n t t o he c a r r i e d ; t o e n s u r e  t h e m a s t e r s , mates and e n g i n e e r s  that  a r e duly 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 o f 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 . spection follows the B r i t i s h  The C a n a d i a n s y s t e m o f i n s y s t e m up t o t h i s  latter  p o i n t a n d i t i s h e r e i n t h a t c o n f l i c t h a s a r i s e n , v i z , who i s responsible f o rdetermining  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 o f t h e crew? The  d i f f e r e n c e of opinion over " r e s p o n s i b i l i t y f o r  m a n n i n g " was t h e m a j o r 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 the 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 m a n n i n g was p u r e l y a management and  prerogative  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 .  owners h a v e , o n o c c a s i o n ,  consulted with t h e i r  Some  ships'  masters, 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 a s 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 h a n d , a g e n e r a l  examination of the  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 b y 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 m a n n i n g 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 i n g and were p r e p a r e d t o t a k e win  this point.  bargain-  s t r i k e a c t i o n i n order t o  The C a n a d i a n M e r c h a n t S e r v i c e  Guild,  - 246 while maintaining one  subject  and  had  political  standards  of the Steamship  entirely to  Inspection  a t t e m p t e d t o r e c t i f y t h i s by  legislative  representations.  Findings prolonged  t h a t t h e i s s u e o f m a n n i n g was  t o r e g u l a t i o n by t h e g o v e r n m e n t , o b j e c t e d  the a l l e g e d low B r a n c h and  -  of the R e s e a r c h Sub-Committee n o t e d  the  d i s p u t e o v e r t h e r e g u l a t i o n o f m a n n i n g and  f a c t t h a t t h e Canada S h i p p i n g A c t o v e r a u t h o r i t y and  is itself  in  r e s p o n s i b i l i t y f o r manning.  the  conflict Their  Report s t a t e s t h a t : " S e c t i o n 392(d) a p p e a r s 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 m a n n i n g 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 c a n ' w i t h p r o p r i e t y , 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 . 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 a n d 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 o t 'manned w i t h a c r e w s u f f i c i e n t a n d e f f i c i e n t from the p o i n t of view of s a f e t y of l i f e f o r t h e p u r p o s e 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 s u c h v o y a g e , be k e p t so manned'. Corresp o n d e n c e . . . f u r t h e r c o n f u s e s t h 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 Steamship I n s p e c t i o n Branch." 1  1  The  R e s e a r c h Sub-Committee c o n c l u d e d t h a t the  res-  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 " b e t w e e n t h e owner a n d m a s t e r , a n d  a "vagueness of  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 c a n be assumed a s The  Act  non-existent".  C a n a d i a n M e r c h a n t S e r v i c e G u i l d had  ested that they  "do  purposes  not  a l s o sugg-  f e e l that i n t e r p r e t a t i o n of  the  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  the  Department of T r a n s p o r t  or the operator"  and  they  feel  -  24?  -  that the master i s equally responsible as  f o r safe  manning  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  master of the ship i n question responsible  a s he a l o n e i s f i n a l l y  f o r t h e s a f e t y o f t h a t s h i p , a n d t h e crew  u n d e r h i s command." The R e p o r t f i n d i n g s s u g g e s t t h a t m a s t e r s , a s membe r s o f management, do h a v e t h e r i g h t a n d o b l i g a t i o n t o discuss not  the question  o f what a crew s h o u l d  only i n o f f i c e r s but i n u n l i c e n s e d  ever,  consist of,  personnel.  t h e Report r e f u t e s t h e Canadian Merchant  How-  Service  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 n o t v a l i d . " R e p o r t i n d i c a t e s a g r e e m e n t w i t h M r . J u s t i c e T.G.  Norris,  w h e r e , i n h i s r e p o r t o n The D i s r u p t i o n o f S h i p p i n g pp.  308-309, he  states that  u n d e r t h e Canada S h i p p i n g and  masters....It  The  (1963),  " t h e m a t t e r of manning i s ,  A c t , a m a t t e r f o r t h e owners  i s not a matter f o r c o l l e c t i v e  bar-  gaining. " T h e r e 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 ween t h e D e p a r t m e n t o f T r a n s p o r t , i o n B r a n c h a n d t h e Canada S h i p p i n g  evident  the Steamship Act.  bet-  Inspect-  I t i s obvious  f r o m t h e r e p e a t e d comments f r o m t h e D e p a r t m e n t o f T r a n s port  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 b y r e g u l -  a t i o n ; t h e R e p o r t s u g g e s t s , " t h e y k e e p on i n s i s t i n g this the  i s a matter f o r 'labour  that  r e l a t i o n s ' presumably between  owners, t h e masters and t h e unions....These  conflicting  - 248 p o i n t s o f v i e w must be r e c o n c i l e d b y t h e D e p a r t m e n t o f Transport." The  Report  of T r a n s p o r t  concludes  t h a t , because t h e Department  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 they 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 o f t h i n g s must  follow:  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 o f S e c t i o n 392(d) o f t h e C a n a d a S h i p p i n g A c t be eliminated.  2.  T h a t 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 a n d 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 m a n n i n g o f seamen, d e c k h a n d s , e t c .  3.  T h a t t h e c o m b i n a t i o n o f t h e a b o v e two S e c t i o n s , 392(d) a n d 407, w o u l d be s u c h t h a t t h e owner a n d m a 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 c r e w o v e r a n d 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 unions' place t o decide.  4.  T h a t s t e a m s h i p i n s p e c t o r s w o u l d 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 o m m o d a t i o n be p r o v i d e d i n a c 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 c r e w a s d e c i d e d b y t h e aforementioned parties. M o s t 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 C o l u m b i a Tow-  b o a t Owners' A s s o c i a t i o n , u n i o n s t i o n Branch have r e q u e s t e d  and t h e Steamship  that a l l commercial  Inspec-  tugboats  be u n d e r S t e a m s h i p I n s p e c t i o n B r a n c h i n s p e c t i o n .  Curr-  e n t l y , v e s s e l s under f i f t e e n gross tons a r e not i n s p e c t e d . The  M i n i s t e r of Transport  limit  has been d e b a t i n g r e d u c i n g t h e  t o n i n e t o n s s i n c e 19^3.  would s t i l l  However, such a r e d u c t i o n  not a f f e c t approximately  t h i r t y p e r cent of  t h e t o t a l a s s o c i a t i o n v e s s e l s a n d l i k e l y a s many n o n -  - 249 association  ~  vessels.  Because the  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 dependent  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  non-association  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 , and non-association.  association  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 u n d e r S t e a m s h i p I n s p e c t i o n B r a n c h a u t h o r i t y a n d be inspected.  The  R e s e a r c h S u b - C o m m i t t e e a l s o recommended t h a t a l l v e s s -  els  engaged i n the  towboat i n d u s t r y not  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 owing a r e a s :  ping  inspection  (4)  approval  further inspection  owners h a v e s t a t e d t h a t  exclusive  r i g h t s i n the  of tugboats s u b j e c t  Steamship Inspection dations  (2)  foll-  as  resolved.  The f u l l and  (5)  subject  i n the  (3) a p p r o v a l o f m o d i f i c a t i o n ;  of l i f e - s a v i n g equipment; and t o be  inspected  (1) a p p r o v a l o f b u i l d i n g p l a n s ;  upon c o m p l e t i o n ;  yet  presently  regarding  and  supervision  i n s p e c t i o n of a l l commercial i t be  r e g u l a t i o n s , as  impossible  to apply to vessels they f e l t  c a r r i e d out  that  vessels  under a  practical  would  currently subject  i t w o u l d be  the  recommen-  existing regulations not  equipof  They a c c e p t e d the  s e t o f new  Also  construction  only to the  Branch.  with the p r o v i s i o n that  inspection.  t h e y f e e l t h e y have  be to  vital for  Department of T r a n s p o r t t o e s t a b l i s h a system of  the  enforce-  - 250 ment a n d p o l i c i n g t o e f f e c t s u c h 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, use t h e f a c i l i t i e s lated l a t e r i nt h i s V.  i t might prove a d v i s a b l e t o  o f t h e recommended M a n n i n g B o a r d ( r e report) t o c l a r i f y these  issues.  RECOMMENDED APPROACH TO MANPOWER ADJUSTMENT  Determinants o f Manning S c a l e s Research  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 o f v e s s e l s became one o f t h e m o s t c o n t e n t i o u s i s s u e s o f t h e Research Sub-Committee s t u d y . A g r e a t d e a l o f t i m e was s p e n t r e a c h i n g a g r e e m e n t , w h e r e 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 .  This aspect  o f p r e s e n t m a n n i n g r e q u i r e m e n t s was a h u r d l e t h a t h a d t o be c r o s s e d b e f o r e a n y f o r w a r d m o t i o n o n t h e o t h e r recomme 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 a n d 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 a n d e f f i c i e n t " 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 .  crew  R e s e a r c h d a t a was  c o l l e c t e d through telephone conversations, m a i l ,  inter-  v i e w s a n d e x i s t i n g d a t a , o n a s many f a c t o r s a s 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 As a b a s i s submitted  the  Research Sub-Committee used c r i t e r i a  by t h e p r e v i o u s  Joint  Committee  in  1962  as  as  follows: 1.  Nature (a) (b) (c) (d)  Operation  Area i n which vessel operates Size and weight of gear Distance of average t r i p C o n t i n u i t y of operation (1) Frequency of l a n d i n g s — d a y l i g h t ; darkness (2) Amount 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 due t o n a t u r e of work (4) L a y o v e r t i m e d u r i n g j o b due t o t i d e and weather Amount 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 ions Size and type of t o w — l o g t o w i n g — s k o w t o w i n g — other Amount 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 on vessels  (e) (f) (g) 2.  of  Vessel (a) (b) (c) (d) (e) (f) (g)  Characteristics  Physical size General layout Amount o f a c c o m m o d a t i o n Type o f p r o p u l s i o n m a c h i n e r y Remote c o n t r o l s — d e c k a n d e n g i n e room Automatic alarms and s a f e t y devices Navigational equipment—radar, depth recorder, etc.  Safe Navigation  3.  of  (a)  Watchkeeping  (b)  Lookout  Vessel requirements  requirements  The R e s e a r c h S u b - C o m m i t t e e available vessel  data and concluded  operates  ning  scales.  four  Home T r a d e  is  t h e most  that  the area  critical  These areas were Certificates  analyzed a l l  the  which  determinant  initially  issued  in  of  to  described  by t h e  a manby  Steamship  the  - 252 I n s p e c t i o n B r a n c h , a n d were f u r t h e r d i v i d e d by t h e SubCommittee i n t o t h e f o l l o w i n g seven  areas:  1.  Rivers and harbours.  2.  J u a n de F u c a , P u g e t S o u n d , G e o r g i a S t r a i t s , s t o n e S t r a i t , Queen C h a r l o t t e S o u n d .  3.  I n s i d e w a t e r s f r o m t h e l o w e r e n d o f Queen C h a r l o t t e Sound t o O c e a n F a l l s , P r i n c e R u p e r t , Stewart.  4.  West C o a s t o f V a n c o u v e r I s l a n d , f r o m B a r k l e y S o u n d , Queen C h a r l o t t e I s l a n d s a n d H e c a t e S t r a i t .  5.  Columbia R i v e r t o A l a s k a .  6.  Home T r a d e I , w h e r e t h e v e s s e l may go a n y w h e r e w i t h i n t h e l i m i t s o f a home t r a d e v o y a g e ; Home T r a d e I I , w h e r e t h e v e s s e l d o e s n o t go w e s t o f Cape S p e n c e r o r s o u t h o f P o r t l a n d .  7.  John-  Foreign-going. D a t a was a l s o t a b l e d a n d g r a p h e d t o show t h e e s -  c a l a t i n g s c a l e o f manpower u s e d v e r s u s  t h e gross  v e s s e l l e n g t h , v e s s e l horsepower (brake t y p e o f tow. A l l p a r t i e s were i n f a v o u r  tonnage,  horsepower), and of using t h i s  as a g u i d e l i n e r a t h e r t h a n a s d e t e r m i n a n t s o f crew The  data  size.  R e s e a r c h S u b - C o m m i t t e e s u g g e s t e d f u r t h e r t h a t "We h a v e  found i t o f l i t t l e  value  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 , barges, e t c . ) . "  However, w i t h r e -  g a r d t o l e n g t h a n d t o n n a g e t h e f o l l o w i n g was p r o p o s e d : (1)  "...we h a v e 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 o f workmen o n t h e s t e r n o f a s h i p . We h a v e p r o p o s e d 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 a n d a b o v e p r o v i s i o n o f t w o i n -the e i g h t - m e n 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  gross  - 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 a n d a b o v e t h e p r e s e n t s t a n d a r d i n e i g h t - m e n c r e w . B e y o n d t h i s one more seaman s h o u l d be a d d e d . " Criteria lookout are ants els  such as  remote c o n t r o l s , w a t c h k e e p i n g  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 the p a r t i e s  r e l a t e d i n the  l a t e r s e c t i o n s under manning  f o r s p e c i f i c c r e w s i z e s (See i n the Binding The  one  and and  determin-  t o twelve-men  vess-  Decision).  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 -  a g e d a r e a s o f o p e r a t i o n m o v i n g f r o m A r e a 1 t o A r e a 7, d i f f e r e n c e s d e p e n d i n g on o t h e r  c r i t e r i a such as  horsepower, tonnage, e t c , accounting  with  size,  for vessels  being  allocated to a c e r t a i n area. M a j o r Areas of The  Contention  J o i n t d i s c u s s i o n s which f o l l o w e d the  recommendations soon developed i n t o a p a t t e r n of t i o n and  bargaining,.  unions s t i l l e r i a should  The  opinions  developed.  f l i c t i n g viewpoints  how  manning  I n e s s e n c e , t h e i r two  were c e n t e r e d  men  are  the crit-  con-  around the f o l l o w i n g  opposing p h i l o s o p h i e s : the unions contended t h a t r e a s o n s o f s a f e t y two  negotia-  o f t h e o w n e r s and  d i f f e r e d s i g n i f i c a n t l y on be  research  for  required at a l l times f o r  w a t c h k e e p i n g d u t i e s on d e c k w i t h no  combining of  occup-  a t i o n s ; t h e o w n e r s c o n t e n d e d t h a t t h e number o f c r e w 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  efficient  on  with  - 254 c o m p l e t e teamwork a n d a c e r t a i n c o - o r d i n a t e d of  overlapping  duties. The R e s e a r c h R e p o r t r e c o m m e n d a t i o n s d e a l t  e a c h c r e w s i z e f r o m one t o t w e l v e - m e n v e s s e l s .  with The j o i n t  d i s c u s s i o n s which followed thoroughly debated t h e r e l a t ive  m e r i t s o f recommendations i n each o f t h e t w e l v e  ifications.  class-  R a t h e r t h a n go i n t o d e t a i l o n e a c h 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 argumentative p r i n c i p l e s that developed w i l l here.  be r e l a t e d  ( M a n n i n g s c a l e r e c o m m e n d a t i o n s c a n be r e v i e w e d b y  referring t o a l a t e r section entitled Binding The u n d e r s t a n d i n g g a i n e d f r o m t h e f o l l o w i n g will ing  Decisions).  submissions  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 D e c i s i o n s u l t i m a t e l y h a n d e d down b y t h e R e s e a r c h  Chairman-Director. Unions' Submission The m a r i n e u n i o n s j o i n e d i n a f i n a l the  submission t o  Research Chairman-Director t o state t h e i r  position  a f t e r a n i m p a s s e h a d b e e n r e a c h e d i n d e b a t e o n t h e Res e a r c h R e p o r t r e c o m m e n d a t i o n s on c r e w s i z e  classifications.  They contended t h a t : " . . . a n y 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 h o u r b a s i s , r e q u i r e s a c r e w o f 7 men, c o n s i s t i n g o f a M a s t e r , M a t e , C h i e f E n g i n e e r , 2nd E n g i n e e r , 2 Seamen a n d a Cook t o p r o v i d e f o r adequate watches on deck a n d i n t h e E n g i n e Room.  - 255 S t a r t i n g from t h i s b a s i s , the c r i t e r i a mentioned i n t h e R e p o r t c a n t h e n be a p p l i e d a d j u s t i n g t h e c r e w u p w a r d o r downward a s t h e c a s e may b e . This c r i t e r i a then b e i n g the a r e a of o p e r a t i o n , type 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 the voyage, accommodation, e t c . " Concern  f o r s a f e t y h a d b e e n one  p o i n t s f o r the unions. e r e d i n S e c t i o n 40? the master  of the prime  focal  T h i s c o n c e r n f o r s a f e t y was  fost-  o f t h e Canada S h i p p i n g A c t  wherein  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 a n i n f r a c t i o n o f t h e minimum m a n n i n g r e q u i r e m e n t s . T h i s c o n e e r n h a s r e s u l t e d I n t h e d e v e l o p m e n t o f one  of  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 s e d 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 . In a l a t e r s e c t i o n of t h i s report e n t i t l e d ents and S a f e t y mention  Accid-  i s made o f 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 c a s e s t o show p r e c e d e n t f o r d e m a n d i n g e v e n t h r e e men  on d e c k f o r t h e  r e s p o n s i b i l i t y of safe navigation.  Their i n i t i a l  sole  posi-  t i o n , a s 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  that there  s h o u l d be two men  t i m e s when  p h y s i c a l l y on d u t y a t a l l  the s h i p i s underway.  The  submission states  that:  "We h a v e 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 o f men on d e c k a t a n y t i m e b u t i f Management k e e p s on i n s i s t i n g t h e E n g i n e e r a n d / o r C o o k 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 h a v e no c h o i c e b u t t o l o o k on t h e s e men a s t h e t h i r d man r e q u i r e d b y t h e C o u r t s a n d a n i n c o m p e t e n t 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, the u n i o n s a l t e r e d  their  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 final  call  t o the wheelhouse...."  And,  in their  submission f o r binding decision, they a l t e r e d  p o s i t i o n f u r t h e r a n d s u b m i t t e d t