Mergers – seen recently at Unifor – can help with workforce reductions, falling membership
Facing workforce reductions and declining membership, Unifor’s Local 2098 plans to merge with Unifor Local 200.
Local 2098 — which represents workers at Diageo’s Amherstburg, Ont.-based bottling facility — chose to merge with Local 200 — an amalgamated local in Windsor, Ont., representing employees at Ford Motor Company, Nemak, Penske and Voith.
"It was a pretty long process," said Local 2098 president D.J. Lacey. "First of all, we had to discuss it with the executive and our membership as well as with our retirees. From there, we went on to talk with a lot of the locals in our area. We sat down with different leaderships and felt that (Local) 200 was the best fit for us."
In addition to boasting a membership significantly larger than that of Local 2098’s, Local 200 also represents a more diverse group of employees. Lacey said he believes Local 200’s experience as an amalgamated local will provide valuable learning opportunities for his leadership.
David Bridger, vice-president of the Service Employees’ International Union (SEIU) Local 2, agreed the amalgamation of unions and locals provides more than just strength in numbers. The diversity of education and experience different members bring to an organization can be a huge advantage, he said.
"It gives the union some strength in that if one particular sector starts getting hit pretty hard, there’s strength in the diversity," Bridger said. "If one particular group starts seeing some decrease in membership or they start seeing a lot of issues that they have to take up with the employer because their contracts are under attack… the diversity of the union allows for us to continue to do the job we need to do in representing our members."
SEIU Local 2 represents workers across Ontario, Nova Scotia, Alberta and British Columbia. In addition to its geographical diversity, workers also span a number of different fields within the private sector.
The most important challenge to overcome when representing such a diverse group, Bridger said, is the issue of communication. With regional or satellite offices spanning an entire province or country, it is crucial to coordinate the central message and vision of the local’s leadership. The best way to do this, according to Bridger, is to build strong connections in the regional landscape.
"It’s important to understand the regional aspects of what’s going on in the labour community," Bridger said, "and investing in and developing strong regional leadership."
Building strong bonds
Creating and maintaining strong bonds within each local’s community can also help to prevent the loss of culture and sense of community sometimes threatened by amalgamation.
The trademarks of the smaller organization are often absorbed during the process of an amalgamation, according to John Hyde, partner at Levitt & Grosman.
"This is not always a good thing," he said, "particularly if the two locals do not share the same kind of business culture."
The merging of unions or locals always creates a period of uncertainty for the employers directly involved, Hyde said, because each organization has its own preferred methods and modes of operation.
"From the employer perspective, the business representatives can choose to be part of the problem or choose to be part of the solution," Hyde said. "The preference is, of course, the latter. Where relationships between unions and employers are both good and respectful, companies (and consequently their employees), profit."
In instances where employees have a reasonable relationship with their employer, the SEIU attempts to nurture that dynamic, Bridger said, emphasizing each case must be approached individually as there is no one-size-fits-all method for merging.
"Whereas if there is a difficult relationship with the employer — and maybe that facilitated some of the change — they’re going to take a different and more aggressive approach to handling specific issues," Bridger said.
If mergers become more and more common, the issue of employer relations will become increasingly important. Lacey said it is becoming harder for small locals to be active in their communities and support their members. In these "scary times," he said, more locals and unions will opt to amalgamate and strengthen each other.
Unifor itself — the largest private sector union in Canada, representing more than 305,000 members across the country — was formed in 2013 when the Canadian Auto Workers union (CAW) merged with the Communications, Energy and Paperworkers Union of Canada (CEP). In 2014, the United Steelworkers (USW) and the Telecommunications Workers Union (TWU) merged, with the TWU remaining intact as Local 1944, an autonomous national local within the USW.
And SEIU, currently working with the national merger format in its Local 2, is exploring ways in which it can further diversify and strengthen its membership.
As drastically as the landscape could be changing, Bridger said the labour movement’s overall goal cushions both employers and employees during the merger process.
"As much as you may be changing the union, a lot of things stay the same," he said. "Things may be different but the ultimate goal in labour is the same, by and large. If you put your focus on the actual members and say, ‘In the context of everything we’re doing, what’s the best way that we’re going to be providing service for the members?’ then you can’t go too far wrong."
