Delving into union contracts

June 2nd, 2006 · 3 Comments

I spent the better part of today and yesterday auditing a client’s payroll system. They have recently switched to a new system and the difference between old and new is dramatic.

The reports are easier to read and under­stand, the font is easier on the eyes and brain, and the electronic interface is prettier too. I don’t know how much it cost them but I hope they find it worth the investment.

What I learned today is that unions very much control the labour supply in this industry. It is a risk in their line of business that they must deal with: The constant threat that the union will strike and their business will come to a grinding halt.

Unions have the rules stacked in their favour: They dictate the terms under which their workers will work down to the most minute detail. The downside to the workers is the onerous dues they have deducted from each pay cheque, but unionized workers at this client make double what non-unionized workers make, so it probably works out better for them overall.

Category: Auditing
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3 responses so far ↓

  • 1 panasianbiz // Jun 2, 2006 at 5:02 pm

    I find the contrast between North American unions and Japanese unions to be very inter­esting. For example, most automotive plants in Japan are unionized shops (Toyota, etc.) but you’d never know it from walking through the plants. One of the main differ­ences is that Japanese union members don’t restrict themselves to following their job descrip­tions to a T. They pitch in wherever and however necessary.

  • 2 nm // Jun 2, 2006 at 9:02 pm

    Are the unions specific to certain jobs? Like here we have the pipe fitter and sheet metal workers union and the like.

  • 3 Krupo // Jun 5, 2006 at 8:08 pm

    I know what you’re really thinking Neil, what if accounting kids unionized? ;)

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