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You didn't think it would happen to you. You've built your successful business on a good product and sound financial management, and you pride yourself on treating your employees well, knowing if they're unhappy.

It's common for small business owners and managers to be wary of unionization

And then you find out they're joining a union. That's what happened to Russ Cameron, owner of several small mill-service businesses in Hamilton, Ont.

One operation, a mill with about eight employees, "went for a union without our knowledge," he recalls. "We found out at the 11th hour and then we were notified that they were having a vote less than a week later."

Mr. Cameron says he was upset when he first heard about the union drive. He says he was paying a good wage for what he calls "pretty low-skilled labour" but the union promised more. After his employees voted Yes to join the International Union of Operating Engineers, he found himself in the unfamiliar world of unionized labour relations.

But after hiring a labour lawyer and going through several months of negotiations, he and his employees are learning to live with their newly signed contract.

Mr. Cameron believes the workers thought that joining a union would bring their wages into line with skilled trades but, in the end, they won only cost-of-living increases ("which they would have gotten anyway," he says). They also have to pay union dues, and Mr. Cameron says management now has "zero tolerance" for employees setting their own work schedules and overtime.

Mr. Cameron's reactions are not unusual, even though many Canadian small businesses are union shops. "Union density has been modestly increasing" in small workplaces over the past decade, says Erin Weir, an economist for the Canadian Labour Congress.

According to Statistics Canada's Labour Force Survey for the first half of 2007, 13 per cent of employees in workplaces with fewer than 20 employees were union members. And in the 20-to-99 employee category, the rate rose to 30 per cent.

(The figures include franchise operations.)
"It's common for small business owners and managers to be wary of unionization," says John Weir, director of organizing for the B.C. Federation of Labour.

"People react based on stereotypes. They think the union won't understand the nature of their business, but unions have economists. We understand the dynamics of private enterprise and what it takes to be successful."

After all, Mr. Weir says, workers won't benefit from a business in trouble. "We want to make sure that work works for everybody."

Experts say that's why it's important that small business operators understand some general dos and don'ts about unionization.

"The first thing that is important for employers to understand is the basic underlying right of workers to unionize," says Toronto lawyer Matt Certosimo, a partner in the labour and employment group of Borden Ladner Gervais LLP. While specific regulations may differ from province to province, the broad principles apply across Canada, he says.

In addition to the right to form a union, these include: the obligation of employers to bargain in good faith with a certified bargaining agent (that is, the union); the obligation of both parties to abide by the terms of the collective agreement; and the prohibition of strikes or lockouts during the life of the contract.

"Think of it as a ceasefire agreement — during the life of a collective agreement, disputes must be resolved by arbitration, not strikes or lock-outs," Mr. Certosimo says.

Employers often mistakenly think that once a union organizing drive has started or a vote is about to take place, they lose all ability to speak with their employees or exercise normal management rights.

"We felt we couldn't talk to them," Mr. Cameron recalls of the pre-vote days before his employees voted to join the union.

In fact, you only need to know where to draw the line so you don't run afoul of the law while still carrying on with day-to-day operations of the business.

Mr. Certosimo offers some tips for what to do if employees are considering joining a union:

Keep in mind the right to free speech. An employer can express an opinion but must do so without threats, coercion or undue pressure. "It's the way you express it that can get you into trouble," Mr. Certosimo says. "It's one thing to express a preference to remain union free; it's quite another to threaten employees if they vote for the union."

Stick to business as usual. Continue to exercise normal management rights and the practices of the workplace. "Employees have the right to unionize, but that doesn't mean they get to run the workplace," Mr. Certosimo says.

Communicate openly and honestly. Do tell employees things such as how their wages and working conditions compare to others, and correct untrue statements. You can state that you would prefer to operate the business in a non-union environment, and can urge employees to vote No to joining the union. "It's a campaign and it's understood that there are two sides to a campaign," Mr. Cerosimo says.

Seek balanced legal advice. You probably have a company lawyer, but may need to find an experienced labour lawyer to give you clear, balanced information and advice. Also, select qualified people to sit on your negotiating committee who are capable of bargaining in good faith.

Do not penalize or threaten workers. Don't communicate anything to workers in a coercive or threatening manner, or threaten to close the business if a union forms. Under the law, you can not penalize workers for participating in legal union activities or supporting a union.

Beware of unfair labour practices. Do not call employees to a meeting to talk about the union. Such sessions are deemed to be "captive audience meetings," Mr. Certosimo says.

"It's a risky thing to do." The risk of an unfair labour practice is greater in such a meeting because the employees are required to attend, and the wrong thing can be said, or taken the wrong way, if you go "off topic."

Instead, he recommends that employers communicate in writing.

Make your message fact-based and have it vetted by legal counsel before distributing to employees.

In the end, Mr. Certosimo says, "if an employer goes over the top it can come back to bite them." In cases of "egregious" unfair labour practices, a labour board can order automatic union certification (without a vote), "and you end up with the very thing you're trying to avoid."

There's a lot of emotion involved when a business owner finds out his employees have turned to a third party, one who will have a voice in setting wages and working conditions. "It's important to get over feelings of betrayal, hurt or anger," says Mr. Weir.

If both sides can establish good working relationships, he says, there can be benefits in a union workplace. These benefits include higher morale, increased productivity, and a calm atmosphere for settling differences.

Mr. Cameron, however, says that in his operation "we can settle our differences" without union grievance procedures. "It just brings a lot of formalities we don't need in a small business."