Two-Tier Workplaces and Intergenerational Equity
Two-Tier Workplaces and
Intergenerational Equity
Michael Mac Neil
Department of Law and Legal
Studies, Carleton University
Two-Tier
Different
MAGIC DATE
HIRED
BEFORE
HIRED
AFTER
Evaluating Two-Tier Workplaces
Efficiency
Use of Two-Tier
Airline Industry
US auto industry
Canada Post
Breweries
Quebec municipalities
US Steel
A Note About
Pensions
Defined Benefit
–
92% underfunded; $350 billion shortfall (2010)
Defined
Contribution -
Slowly replacing defined
benefit plans
Risk
Deficits
Transition
Duty of Fair Representation
Voice
Equity
Representation for those
not in bargaining unit
Discrimination against
new hires
Efficiency
Flexibility in Collective
Bargaining
Discrimination
Age Based?
Proving Discrimination
Statistics
Overlapping Age Cohorts
Two-Tier as BFOR
Quebec Approach
Two Tier
Issues With Quebec Approach
differentials ‘solely’
because of date of hiring
Same tasks in same establishment
Issues With Quebec Approach
Union Liability
Temporary v. Permanent
Differentials
Seniority and Grand
Parenting
Conclusion
Efficiency
In 2007, the United Auto Workers in the United States agreed to an arrangement with the Big Three automakers whereby newly hired employees would be paid only half that earned by older workers. Buzz Hargrove, then president of the Canadian Autoworkers Union (CAW) stated that this is “one automotive import that won't cross the border into Canada.” Sam Gindin, commenting on Hargrove’s defiant declaration, opines that the negotiation of such two-tier systems takes “inequalities that have been growing within the work force to a new stage: It brings them right into the workplace and includes the union as an accomplice.”
- significant issue in collective bargaining in Canada, as well as in the United States
- employers are pushing for the creation of a two-tier pension structure, with newly hired employees enrolled in the riskier, defined contribution plans while older workers continue their entitlement to defined benefits.
- increasing inequality in Canadian society
-younger workers, who face much higher unemployment rates and the spectre of decreased state-funded benefits at the end of their working lives
-overview of the use of two-tier arrangements
- legal issues arising from two-tier arrangements.
- Focus on DFR and Discrimination
Explore the concept of two-tier workplaces and intergenerational equity through various aspects such as job structures, benefits, hiring practices, and pension plans. Delve into the implications, challenges, and evaluations of this system, including discrimination issues and the Quebec approach.
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Presentation Transcript
Two-Tier Workplaces and Intergenerational Equity Michael Mac Neil Department of Law and Legal Studies, Carleton University
Two-Tier EMPLOYER JOB WORKPLACE Same Different WAGES BENEFITS
HIRED BEFORE MAGIC DATE HIRED AFTER
Use of Two-Tier Breweries Airline Industry Canada Post US auto industry US Steel Quebec municipalities
A Note About Pensions Defined Benefit 92% underfunded; $350 billion shortfall (2010) Defined Contribution - Slowly replacing defined benefit plans Deficits Risk Transition
Duty of Fair Representation Efficiency Flexibility in Collective Bargaining
Proving Discrimination Statistics Overlapping Age Cohorts
Two-Tier as BFOR Access to Employment Economic Necessity Collective Bargaining Job Security Seniority Grand Parenting
Quebec Approach Two Tier
Issues With Quebec Approach differentials solely because of date of hiring Same tasks in same establishment
Issues With Quebec Approach Temporary v. Permanent Differentials Union Liability Seniority and Grand Parenting
Conclusion Equity
