Accounting and Trust in Labour-Management Negotiations: Crisis in the Canadian Automotive Industry

Abstract

This paper investigates the role of accounting information in the automotive industry restructuring of 2008 and 2009 in Canada. I also consider the impact that trust has on the use of accounting information in the labour-management negotiations both preceding and embedded in the restructuring. In 2008, the crisis in the automotive industry led to government-funded restructurings for two of the top manufacturers in North America, effectively adding the government as a third party to the negotiations. Following a series of negotiations that occurred between AutoCo and UnionA, I document a qualitative study that examines the individual actors’ views and perspectives on the negotiations process, as well as explore the dynamic interaction between accounting inscriptions and trust at the negotiation table. The use of actor network theory highlights the individual actors, their actor-networks, accounting inscriptions and the continuous translation process inherent in negotiations. Accounting inscriptions are shown to play a central role in labour-management negotiations, particularly as a forum for bringing the actor-networks together, and as a mode of persuasion. Furthermore, I explicate the notion of tactical trust, as it emphasizes the assessment, monitoring, adjustment inherent in decisions to trust within dynamic business contexts.