The Klein Revolution 1993-1997.pptVIP

The Logic of Labor Quiescence Yonatan Reshef Strategic Management and Organization University of Alberta October 16, 2001 What is Collective Action Conceptual Model Actors Union members Union leaders Internal Environment Union Paradigm Experience Politics (within and between unions) Structures (within and between unions) External Environment Government – nature; tenure Public Law Labor market conditions – tight/loose Employment patterns – service/manufacturing UNION ENVIRONMENTS EXTERNAL FACTORS – IR IN A CONSERVATIVE ENVIRONMENT LEGAL – CIVIL SERVANTS, HEALTH CARE EMPLOYEES, FF, POLICEMEN, AND POST-SECONDARY TEACHERS ARE NOT ALLOWED TO STRIKE LOW SUPPORT FOR UNIONS (21.2%) ECONOMIC – RESOURCE INDUSTRY, LITTLE MANUFACTURING BASE POLITICAL – PC IN OFFICE SINCE 1971 A Tale of Three Elections UNION ENVIRONMENTS(II) INTERNAL ENVIRONMENT PHILOSOPHY – BUSINESS UNIONISM; EMPHASIS ON COLLECTIVE BARGAINING LACK OF COLLECTIVE ACTION EXPERIENCE STRUCTURE – MULTIPLE UNIONS; ATA UNION RIVALRIES The Klein Revolution1993-1997 BUDGET CUTS OVER FOUR YEARS BASIC EDUCATION - 5.6% HIGHER EDUCATION - 15.3% HEALTH CARE - 17.7% GENERAL WELFARE - 19.1% OTHER DEPARTMENTS – AVERAGE BUDGET CUTS OF 20.0% IN 1995, THESE REDUCTIONS AMOUNTED TO A DROP OF 27.4% IN REAL PER CAPITA EXPENDITURES IN GOVERNMENT SERVICES. A YEAR LATER THE BUDGET WAS BALANCED. The Klein Revolution1993-1997 (II) WORKFORCE REDUCTIONS CIVIL SERVICE – 23.5% (6,512) HEALTH CARE – 21.2% (13,873) TEACHERS – 5.0% (1,500) Union Membership, 1992-1997 The Klein Revolution1993-1997 (III) WAGE ROLLBACKS “-5;0;0” FRAMEWORK ENCOMPASSING ALL PUBLIC SECTOR EMPLOYEES WITH VERY FEW EXCEPTIONS (E.G., THE CITY OF CALGARY) Unionized Civil Servants’ Real Wages as Percentage of 1986 Wages The Klein Revolution1993-1997 (IV) PUBLIC SECTOR RESTRUCTURING CIVIL SERVICE – BUSINESS PLANS, PRIVATIZATION, HRM INNOVATION; ACHIEVEMENT BONUS (2.0%) EDUCATION – TAXATION POWERS RESIDE WITH THE CABINET (FROM 146 SCHOOL BOARDS TO 5