Trade Union Decline and the Distribution of Wages in the UK: Evidence from Kernel Density Estimation

This paper assesses the impact of changes in union density on the male structure in the UK over the 1980s. Using four separate data sets, we estimate the kernel density of hourly wages for men. Counterfactual densities are then generated to predict how the distribution of wages has changed over time because of the decline in union membership. We find that approximately 20 percent of the increase in the variance of log wages over the period can be attributed to changes in unionisation. The effect is particularly strong in the latter part of the period. We also present disaggregated estimates of the impact of declining unionisation. Our results are robuts across all the data sets we examine and similar results are obtained if union coverage is used rather than union membership.     

Whose wages do unions raise? A dynamic model of unionism and wage rate determination for young men

We estimate the union premium for young men over a period of declining unionization (1980–87) through a procedure which identifies the alternative sources of the endogeneity of union status. While we estimate the average increase in wages resulting from union employment to be in excess of 20% we find that the return to unobserved heterogeneity operating through union status is substantial and that the union premium is highly variable. We also find that the premium is sensitive to the form of sorting allowed in estimation. Moreover, the data are consistent with comparative advantage sorting. Our results suggest that the unobserved heterogeneity which positively contributes to the likelihood of union membership is associated with higher wages. We are unable, however, to determine whether this is due to the ability of these workers to extract monopoly rents or whether it reflects the more demanding hiring standards of employers faced by union wages. © 1998 John Wiley & Sons, Ltd.     

Trade union membership trends in seven Western European countries 1950—1968

Post-War trade union membership developments have received relatively little academic attention, in view of the importance attributed to trades union organization in the collective bargaining system, in the social, political and economic fields, in the relationships between organized labour and governments and, in particular, in the efforts to devise institutional arrangements suitable for dealing with wage-price inflation. Union membership levels, the effective power of central federations and some of their individual affiliates, shifts in membership and the often concomitant changes in the political status of a union or unions and the degree of organization of a nation's labour force—are all important aspects of the potential role of trade union movements within the socio-economic and political life of a nation. The objects of this paper are to examine membership levels and changes, density of organization, membership concentration and the membership experiences of the six largest unions within the trades union movements of Austria, Denmark, Germany (Federal Republic), Norway, Sweden, Switzerland and the United Kingdom over the postwar period.     

Employee voice: does union membership matter?

Industrial relations research has traditionally viewed trade unions as the primary mechanism for employee voice. With the decline in unionism in many advanced industrial economies over the past two decades, new direct non-union voice mechanisms have been introduced by employers. This focus on the mechanisms for employee voice, however, fails to take account of employees' perceptions of voice. We suggested that employee perceptions of voice vary between the different levels of an organisation and proposed that trade union membership will be more likely to enhance individual employee perceptions of voice at the wider organisational level. Contrary to our expectations, our analysis of 2,949 employees of a public sector scientific research organisation found that union membership had a significant negative impact on employee voice at the organisational level. The article concluded by offering possible explanations for this unexpected finding and the implications for theory, management and future research.     

The end of the Ghent system as trade union recruitment machinery?

During the past 15 years, membership rates in many unions have been declining in Denmark, Finland and Sweden. Reasons for this decline may be similar to what has happened in other countries—occupational change and neoliberal ideology and policies—but in the three Ghent countries, changes in the unemployment insurance system may also have affected trade union membership losses. The major part of the decline has taken place in a period of low unemployment, which may have reduced the employee incentive to take unemployment insurance, but will increasing unemployment rates mean more trade union members? At least for the LO‐ and SAK‐affiliated trade unions, it seems that trade union independent unemployment funds may be alternatives for workers who take unemployment insurance.     

Convergence or divergence: human resource practices and policies for competitive advantage worldwide

A the overall level of union membership has fallen in a number of advanced industrialized economies from the 1980s, researchers have become increasingly interested in the potential role of management actions in bringing about such reductions in union organization. Management opposition to union organization may take a number of different forms, with union de–recognition being the individual manifestation most frequently discussed and examined in Britain at the present time. The present paper, however, examines another possible manifestation of management opposition to union organization, namely the practice of multi–establishment organizations operating individual establishments on both a union and a non–union basis. This examination involves the analysis of two sets of survey data which contain evidence on the related phenomena of recognition by extension arrangements and non–uniform recognition arrangements. The basic picture which emerges is that recognition by extension arrangements has historically been of some considerable importance in Britain, although their future strength and influence may well decline as the extent of non–uniform recognition arrangements is now quite considerable and quite likely to increase over time.     

Why So Unhappy? The Effects of Unionization on Job Satisfaction*

Using linked employer–employee data we investigate the job satisfaction effect of union membership in Britain. We develop a model that simultaneously controls for the determinants of individual membership status and for the selection of employees into occupations according to union coverage. We find a negative association between membership and satisfaction. However, having accounted for selection effects, we find that the negative association is confined to non‐covered employees. This is consistent with ‘voice’ effects, whereby non‐covered members voice dissatisfaction to achieve union goals, and with the possibility that membership increases preferences for collective bargaining, thus lowering members’ satisfaction in non‐covered environments.     

Accounting for geographical variance in the union satisfaction gap

Evidence of spatial variance in the relationship between trade union membership and job satisfaction is limited. Using three nationally representative data sets, we examine lower levels of satisfaction among union members and considers how this relationship varies geographically across the nations and regions of Great Britain. The analysis demonstrates that the union satisfaction gap can largely be accounted for by relative characteristics of union members and the jobs that they hold. However, there is evidence of geographical variance. The union satisfaction gap is generally found to be highest within Scotland and North of England. Despite high levels of union membership, evidence of a union satisfaction gap in Wales is relatively weak. These differences relate to differences in the perceptions of industrial relations among employees across these areas, which appear to be related to geographical variance in worker heterogeneity.     

Trade union membership and dismissals

In Germany, there is no trade union membership wage premium and a membership fee of 1% of the gross wage. Therefore, prima facie, there are strong incentives to free-ride on the benefits of trade unionism. We establish empirical evidence for a private gain from trade union membership which has hitherto not been documented: in Western Germany, union members are less likely to lose their jobs than non-members. In particular, using data from the German Socio-Economic Panel we are able to show that roughly 50% of the observed raw differential in individual dismissal rates can be explained by the estimated average partial effect of union membership.     

The determinants of Australian trade union membership

This paper investigates the determinants of trade union membership in Australia using the Engle and Granger (1987) theory of co-integrated economic variables. Applying the theory of co-integration yields a model of union membership which can be interpreted as distinguishing between long-run and ‘business cycle’ determinants of union membership. The principal long-run determinant of union membership is found to be the level of employment disaggregated by industry classification. Business cycle variables—the real wage and the change in unemployment—are also shown to influence movements in union density. These findings are consistent with recent studies which have attributed the decline in union membership in Australia since the early 1980s to the changing composition of employment and movements in the rate of unemployment.     

Reconsidering union membership in Spain, 1977-1994: halting decline in a context of democratic consolidation

Examining newly available figures, this article argues that in spite of Spanish high unemployment and economic re-structuring, union membership in Spain increased significantly from 1986 to 1993. The effect of democratic consolidation, as well as complex union dynamics in the labour market, generate this recovery that challenges, to some extent, the pessimistic union decline thesis.     

The logic of ‘market-share’ trade unionism: is membership decline inevitable?

In the context of trade union membership decline since 1979 the author analyses the pressures which support competition between unions to secure larger shares of the membership in existing organised sectors rather than membership expansion in the growing private services sector     

Political attitudes,participation and union membership in the UK

Unionisation continues to decline in the UK. This paper examines the changes over time in the relationship between politics and union membership, and it is based on European Social Survey data from 2002 to 2018. Political attitudes have been analysed by considering the interest in politics and ideological orientation according to self-placement on the left–right scale, and behaviour looking at political participation. Political orientation (being left-wing) and political participation are determinants of union membership. However, in the UK, a centrist political orientation prevails, and political participation is low. The relationship between political attitudes, behaviour and unionisation over time has been stable.     

Recognising the lesbian and gay constituency in UK trade unions: moving forward in UNISON?

Recent research on trade union democracy has drawn attention to the heterogeneity of union membership and the social processes within unions which can lead to the inclusion or exclusion of specific constituencies within union structures. This article draws on a case study of lesbian and gay self organisation in UNISON to illustrate the value of developing democratic structures to reflect this constituency and improve trade union representation and participation.     

TUC Organizing Academy 10 years on: what has been the impact on British unions?

The year 2008 saw the 10th anniversary of the establishment of the British Trades Union Congress (TUC) Organizing Academy which was designed to train a new cadre of union officials. The aim was to develop a culture of organizing that could help to transform the decline in trade union membership by bringing in new members who had been trained to be active within their unions. Through in-depth interviews and a survey of graduates of the Academy we look at the impact this project has had on individuals, their unions, and the wider union movement. We are particularly keen to give voice to the graduates as they have been charged with the difficult task of transforming the British trade union movement. We find evidence that trained organizers continue to be influential within their unions, but that many (although by no means all) get stuck in relatively junior positions because of the lack of a specialist career structure. This inevitably constrains their influence. The division between ‘servicing’ and ‘organizing’ functions is an almost inevitable consequence of the establishment of a separate, specialist organizing role and can also cause tensions and constrain the spread of organizing practices within unions. Despite this, there is evidence of widespread adoption of basic organizing practices, although more strategic organizing is still far less common. More widely, there is strong evidence of organizers developing new and influential networks between unions, and of individual unions implementing specialist organizing training. Despite this mixed evaluation, we argue that the creation of the Academy has had a considerable impact on British unions and has fostered important and innovative organizing approaches that would probably not have emerged otherwise.     

Diversity in trade union membership: a typology based on the study of a Spanish trade union

While existing literature on the changing nature of trade union membership concentrates on unidimensional differences between members, this article proposes a multidimensional typology, which considers demographic characteristics as well as labour market position and length of union membership. Our results allow the identification of different member profiles; these are significantly associated to differences in employment conditions, work participation, job satisfaction and union activism. In the last section of the article, we discuss the practical implications that these different member profiles may have for union policy and organisation.     

The Impact of Union Membership on Intent to Leave: Additional Evidence on the Voice Face of Unions

The impact of union membership on employees' intent to leave their jobs was examined to testthe effect of unions' “voice” face. Regression analyses showed a significant, negative relationship between union membership and employees' intent to leave. In addition, the data revealed significant interactions between union membership and job satisfaction and between union membership and organizational commitment. Dissatisfied nonunion members are much more likely to intend to leave their jobs than are union members. Similarly, nonunion members with low organizational commitment are much more likely to intend to leave their jobs than are union members. Bothof these results support the conclusion that union membership reduces employees' intention toleave their jobs, and provides evidence that the voice face of unions matter. An earlier version of this research was presented at the 2004 Association on Employee Practices and Principles Conference, Ft. Lauderdale, Florida.     

The Rules of the Game: Union Solicitation in the Twenty-First Century Workplace

Even though union membership has declined steadily over the last 20 years, unions are dramatically increasing their efforts to organize the workplace. As a consequence, union solicitation drives are on the rise. While the case law in this area is relatively settled, many managers in nonunion environments are generally unfamiliar with the federal case governing union solicitations. This article examines the federal case law surrounding union solicitation and provides some practical guidelines for managerial conduct for dealing with union solicitation drives. It also discusses future directions in an interconnect world.     

Ever larger unions: organisational restructuring and its impact on union confederations

Unions have responded to current membership decline and other organisational problems by restructuring via mergers, increasing union concentration within and across union confederations. A particular noted feature are amalgamations to form ‘super‐unions’. These conglomerate unions threaten to undermine the role played by confederations in respect of political voice, bargaining coordination, and service provision. Despite these mergers, union pluralism still prevails in many European countries with separate peak associations organised along employment/occupational status or political and religious lines. After comparing the recent merger waves and increased union concentration in western European countries, the consequences for union movements are discussed.     

Collective and individual benefits of trade unions: a multi‐level analysis of 21 European countries

In light of internationally declining union density, this article examines to what extent employees derive advantage from trade unions. Data collected in 21 countries through the European Social Survey 2010 are being used. Multilevel analyses show that it is not so much individual membership but unions' collective power that matters. Perceived union influence and a union‐friendly industrial relations regime (mainly the organized corporatism in the Nordic countries) are positively linked to the occurrence of regular workplace meetings and to the impact of these meetings on organizational decisions. Employees also appear to benefit from unions' collective power in terms of appropriate pay and job security, although the regime pattern is then less clear.