Why Do People Join Unions in a Period of Membership Decline?

Drawing on a large survey of new members, this paper examines the reasons why people join unions and the methods of their recruitment. It shows that collective reasons remain central to union membership and that individual services are secondary in the recruitment process. While there is little variation in reasons for joining across industry, occupation and sex, there are marked differences in the methods used to recruit new members. These findings are used to examine existing explanations of membership decline and to assess the efficacy of the different recruitment policy options available to unions.     

Why Fewer Workers Join Unions in Europe: A Social Custom Explanation of Membership Trends

Can the recent decline in union density in Europe be attributed to specific economic, social or institutional causes? Can unions influence these causes and reverse decline? Using two data sources — a representative survey of Dutch employees and a data set for European countries between 1950 and 1997 — the author examines the determinants of union decline. The theoretical model is based on a social custom approach to unionization, integrating rational choice and social network theory. The empirical results show improbable small margins of union resurgence, that is, if institutional support for union representation can be maintained or regained within and beyond workplaces.     

Unions and Discriminatory Hiring: Evidence from New Zealand

This study examines the effects of unions on employer compliance with antidiscrimination legislation in New Zealand, using a sample of 227 employers. The results do indicate that unions do reduce discriminatory practices. More specifically, higher levels of unionization do increase the level of employer compliance. However, other union characteristics, such as union size and strike propensity, appeared to have no influence on employer practice.     

Why Do Non–union Employees Want to Unionize? Evidence from Britain

This paper assesses the determinants of the level of support for union membership among non–union employees. Using data from a representative sample of non–union employees in Great Britain, the research confirms the importance of job dissatisfaction, left–wing views and perceived union instrumentality as predictors of willingness to join a trade union, union instrumentality being the most significant.     

Why Have Workers Stopped Joining Unions? The Rise in Never‐Membership in Britain

This paper tracks the rise in the percentage of employees who have never become union members (‘never‐member’) since the early 1980s and shows that it is the reduced likelihood of ever becoming a member, rather than the haemorrhaging of existing members, that is behind the decline in overall union membership in Britain. We estimate the determinants of ‘never‐membership’ and consider how much of the rise can be explained by structural change in the labour market and how much by change in preferences among employees.     

Why Strikes Occur: Evidence from the Capital Markets

New and existing empirical evidence regarding the stock market reaction to strikes is used to test the validity of three strike theories. A review of the existing capital market evidence reveals the need for information regarding the intraindustry announcement effects of strikes against manufacturing firms. This need is filled by applying event-study methodology, in a manner consistent with earlier studies, to a sample of strikes during the period 1982–1999. This new evidence, combined with that of previous studies, consistently supports the validity of Hick's theory that strikes are the result of bargaining errors, misperceptions of bargaining goals, or discrepancies between the expectations of union leaders and the rank and file.     

Trade Unions and Productivity: The German Evidence

This paper provides a brief review of the empirical evidence on union productivity effects in Germany. The influence of trade unions on productivity is the net effect of conflicting forces which can lead to higher or lower productivity. Although the German dual system of workers' representation via unions and works councils is quite favourable to the existence of productivity-enhancing 'voice' effects, various empirical studies have not been able to detect significant positive net effects of these institutions on productivity.     

Unions and the Employment Growth: Panel Data Evidence

This study adds to the small empirical literature on the impact unions have on employment growth using data from Australia. Unlike previous studies, the data used are from a panel of firms surveyed at two points in time rather than a single cross section. The results indicate a negative union effect on employment in private-sector firms of about 2.5 percent per annum that, despite the very different institutional framework that prevails in Australia, is consistent with results obtained with North American data.     

Organizing the Next Generation: Influences on Young Workers' Willingness to Join Unions in Canada

This paper argues that union attitudes and behaviour are important but neglected features of the school–work transition process. Using longitudinal panel data from a study of high school and university graduates in three Canadian cities, we examine how young people's previous union membership, attitudes and educational, labour market and workplace experiences shape their willingness to join unions. This paper establishes that views about unions are emergent during youth, solidifying with age and experience. The implications of these findings for industrial relations, school–work transitions research and labour movement organizing are discussed.     

Female Part-time Workers' Attitudes to Trade Unions in Britain

This paper discusses the reasons that can be offered for the lower trade union membership rates of female part-time workers in the UK and focuses in particular on female part-timers' attitudes to trade unions. The findings are based on original research: 50 qualitative interviews with female part-time workers in the retail industry. The paper argues that female part-timers are supportive of the aims of the trade union movement and concludes that an integrated approach is necessary in order to understand part-timers' unionization rates. This includes structural factors, the approach that trade unions have taken towards part-time workers and attitudes towards trade unions.     

Worker Participation and Firm Performance: Evidence from Germany and Britain

The Freeman–Lazear works council/worker involvement model is assessed over two distinct industrial relations regimes. In non-union British establishments our measures of employee involvement are associated with improved economic performance, whereas for unionized plants negative results are detected. The suggestion is that local distributive bargaining can cause the wrong level of worker involvement to be chosen. Also consistent with the model is our finding that mandatory works councils do not impair, and may even improve, the performance of larger German establishments. Yet smaller plants with works councils under-perform, illustrating the problem of tailoring mandates to fit heterogeneous populations.     

Unions and Collective Bargaining in the Wake of the Great Recession: Evidence from Portugal

Against the backdrop of its industrial relations architecture, characteristic of the ‘southern European group’ and intimately linked to the recommendations of the Troika, this paper examines four key aspects of Portuguese collective bargaining. First, it provides definitive estimates of private sector union density for that nation. Second, it models the determinants of union density at firm level. Third, it yields estimates of the union wage gap for different ranges of union density. The final issue examined is contract coverage. The received notion that the pronounced reduction in the number of industry‐wide agreements and extension ordinances of late is to be equated with a fall in coverage is shown to be a chimera, the number of workers covered by new and existing agreements remaining largely unaffected by the economic crisis. The reduced frequency of new agreements and extensions is instead attributed to downward nominal wage rigidity in low‐inflation regimes.     

Why Should Human Resource Managers Pay High Wages?

This essay is about human resource management, internal labour markets and assorted theories of wage behaviour. A stereotype of managerial activities and policies is sketched out in the first section, which, although reflecting a parochial (US) orientation, is intended to approximate a set of real-world conditions to which analyses of labour market behaviour should presumably relate. In the second section we consider 'institutionalist' interpretations, which either supplement or challenge standard market analysis by appeal to the historical record, the behavioural sciences or even the consensus of expert behaviour. In particular, the importance of 'conventional' forces, based heavily on perceptions of equity, interpersonal preferences and custom and practice, is revealed by the scholarship and insights of Henry Phelps Brown. Next (Section 3) are assessed the claims and contributions of a sample of theories based on the assumption of individualistic utility maximization in competitive markets: the theories of equalizing wage differentials, human capital, deferred compensation, transaction costs, implicit contracts and (least conventional) efficiency wages. None is found to be lacking in interpretive value or relevance to one or more attributes of the stereotype, and all help to relate it to a wider family of markets and to economic behaviour. In general, however, this group is less satisfactory in explaining why wages should be high enough - in a present-value sense and relative to market-clearing levels - to contribute to the relative insulation of internal labour markets and to restrict employment. An exception is provided by efficiency wage theory, in particular by one of its older variants, which, because it is based on group (rather than individualistic) psychology and behaviour, is discussed in Section 4.     

The Effect of Trade Unions on the Provision of Training: Australian Evidence

This paper uses data from the Australian Workplace Industrial Relations Survey conducted in 1989–90 to examine the net impact of trade unions on the extent of formal types of employer-provided training. A net positive effect is found, but only where unions are active in the workplace and not merely de jure representatives of the work-force. The results also indicate, with respect to in-house training, that unions shift the emphasis towards work-forces with long tenure, a finding that is consistent with 'union voice' arguments.     

The Impact of Enterprise Size on Employment Tribunal Incidence and Outcomes: Evidence from Britain

Employment Tribunals are the formal means of adjudicating disputes over individual employment rights in the UK. This article hypothesizes that, because small firms favour informality over formality, they are more likely (i) to experience employee claims than large firms; (ii) to be subject to different types of claims; (iii) to settle prior to reaching a formal Tribunal; and (iv) to lose at a Tribunal. Data from the 2003 Survey of Employment Tribunal Applications are used to examine these hypotheses. They are generally supported, although in relation to the third there was no size effect. Furthermore, our results show that firms that have procedures and follow them are more likely to win than those firms that do not have any procedures. Recognizing the benefits of informality, while also ensuring that small firms follow proper standards of procedural fairness, is a policy dilemma that has yet to be resolved.