The Reserve Army Effect, Unions, and Nominal Wage Growth

This paper analyzes the reserve army effect from a perspective which integrates propositions from the social structures of accumulation and regulation approaches. The magnitude of the reserve army effect on nominal wage growth ought to vary according to the subperiods 1958–1970, 1970–1980, and 1980–1987, and also according to subsectors with different unionization rates. This hypothesis is tested empirically by estimating the effect of demand pressure variables on nominal wage growth for heavily, moderately, and lightly unionized sectors. The results generally confirm the hypothesis, while at the same time showing clear differences in the impact of collective bargaining on the reserve army effect between 1958–1970 and 1980–1987.     

Unnatural Extinction: The Rise and Fall of the Independent Local Union

This article analyzes what happened to independent local unions (ILUs), also known as company unions, since 1935. After providing a statistical analysis of ILU membership since 1935, the article looks at the factors that shaped membership trends: changes in labor law, the characteristics of ILUs, worker attitudes toward ILUs, and employers' industrial relations policies. New evidence is presented that suggests that even those employers who still favored ILUs in the 1950s were orienting them away from collective bargaining and toward the "new nonunion model" of the 1960s and 1970s.     

The Effect of International Unions on Wage Determination in Canada

This article uses collective bargaining agreement wage data spanning 1964–92 to analyse the effect of international unions on wage determination in Canadian manufacturing. Real wage levels for international unions relative to domestic unions are estimated to decline from approximately 4 per cent higher in the 1960s to 4 per cent lower in the 1990s. International unions are also found to be more responsive to US economic conditions. Finally, affiliation with different union federations is a significant determinant of real wage outcomes with AFL–CIO affiliated unions having lower real wages, on average.     

Investments to create bargaining power: the case of franchising

Hybrid organizational forms such as franchise systems join two or more independent parties under a contract. The ability of each party to achieve its goals depend upon the relative bargaining power in the relationship established by the contract. Using transaction cost economics and Porter's (1980) characterization of sources of bargaining power, this paper argues that the franchisor can make investments in activities such as tapered integration and buyer selection to increase its bargaining power and decrease conflict and litigation in a franchise system. Specifically, tapered integration (owning some units while franchising others), selecting inexperienced franchisees, and employing a long training program are predicted to increase the franchisor's bargaining power and the franchisee's compliance with franchisor standards. An empirical analysis of litigation in restaurant franchise systems supports the theoretical hypotheses. Copyright © 2000 John Wiley & Sons, Ltd.     

The multidivisional firm and control over the work process

This paper investigates the role of M-form organisation in enabling management in large UK companies to regain control over the work process subsequent to the growth of strong shopfloor trade union organisation in the 1950s and 1960s. A dynamic model is proposed in which the degree of control over the work process shifts between managers and workers. Logit analysis is employed to test two specific propositions: (i) that management in M-forms will seek to relocate bargaining at a level where unions are organisationally weak — the division, (ii) that unions will subsequently respond by creating inter-plant organisations. Both propositions receive empirical support.     

Workplace Industrial Relations 25 Years after Donovan: An Employer View

Some common management themes of the 1980s can be traced to Donovan and are revealed in practice by the 1990 Workplace Industrial Relations Survey. The paper considers the relevance of factors not endorsed by Donovan and concludes that, while in terms of industrial action in manufacturing — the focus of concern in the mid-1960s — there is evidence that more order and responsibility has been injected into industrial relations at plant level, we cannot yet maintain that inflationary dangers have been overcome. Collective bargaining is, however, now revealed as affecting only a minority in the private sector, and public services behaviour looks increasingly out of step. The paper suggests that future surveys may therefore need to be recast to capture changing patterns of employer – employee relationships and their links to economic success.     

The Impact of Wage‐Setting Institutions on the Incidence of Public Employment in the OECD: 1960–1998

Using data on seventeen Organization for Economic Cooperation and Development (OECD) countries for 1960–1998, this paper studies the impact of unions on public employment incidence, using macro‐ and microdata. Macrodata show that greater coverage by centralized collective bargaining institutions raises the public employment share, controlling for country effects and country‐specific trends. Microdata show that this effect is more positive for outsiders: women, and younger and older men. Thus, government jobs may in effect partially counteract the employment problems these groups face in highly unionized societies.     

The Impact of Union Wage Concessions on Union Premiums

Previous research showing that union wage premiums actually rose from the late 1970s to the mid-1980s suggests that concession bargaining was more media hype than the result of a fundamental change in collective bargaining. Our study found that nonrandom attrition of workers from the union sector does lead to an upward bias in the measured growth of union premiums, but concession bargaining was not a sufficiently widespread occurrence to reduce the size of union premiums during the sample period.     

Excess Returns, Inflation and the Efficiency of the Housing Market

This paper examines the influence that unexpected inflation has on the reported time pattern in housing returns. Two alternative models of expected inflation are used to study its effect: a rational expectations model and an adaptive expectations model. Findings indicate that both estimates of unexpected inflation are positively correlated with excess returns to housing. If inflation expectations are assumed to have been adaptive during the 1970s and early 1980s, serial correlation in the excess returns is shown to be greatly diminished when adjusted to control for unexpected inflation. However, substantial inertia in the pattern of the adjusted return series remains.     

British Managers' Attitudes and Behaviour in Industrial Relations: A Twenty-Year Study

A unique longitudinal study of Britain's managers conducted in 1980, 1990 and 2000 permits comparisons of managerial attitudes and behaviour in industrial relations over twenty years. We find clear evidence of the relationship between macro‐level political and economic movements of the period from 1980 up until the late 1990s on managerial attitudes, the impact of changes in power relations and the ‘lag effect’ of institutions. The most unexpected findings are the modest rise of managerial unionism in the 1990s and the limited evidence of the replacement of collective bargaining by either individual or group involvement or by employee financial participation.     

Wage Cyclicality Under Different Regimes of Industrial Relations

We analyze the effect of collective wage agreements and of works councils on the cyclicality of real wages. Using employer–employee data for western Germany (1995–2004), we find that wage adjustments to positive and negative shocks are generally not symmetric. Wage growth increases in all industrial relations regimes when unemployment is falling, but this inverse relationship is weaker when unemployment is rising. Moreover, in plants with individual‐level bargaining, wages do not adjust at all to rising unemployment. Works councils increase wage growth only in firms covered by sectoral agreements, but they do not affect the cyclicality of wages.     

Management, technology and work in commercial broadcasting, c. 1979–98

This article explores the relationship between management strategy, technological change and collective bargaining in the British commercial television industry. The demanning and deskilling potential of digital production technologies remained largely untapped until the second half of the 1980s. The termination of national collective bargaining that had regulated minimum crewing levels was the watershed in terms of work organisation.     

The Institutional Context of an ‘Empirical Law’: The Wage Curve under Different Regimes of Collective Bargaining

The wage curve postulates that the wage level is a decreasing function of the regional unemployment rate. In testing this hypothesis, most studies have not taken into account that differences in the institutional framework may have an impact on the existence (or the slope) of a wage curve. Using a large‐scale linked employer–employee dataset for Western Germany, this article provides a first direct test of the relevance of different bargaining regimes (and of works councils) for the existence of a wage curve. In pooled regressions for the period 1998 to 2006, as well as in worker‐level or plant‐level fixed‐effects estimations, we obtain evidence for a wage curve for plants with a collective bargaining agreement at firm level. The point estimates for this group of plants are close to the ?0.1 elasticity of wages with respect to unemployment postulated by Blanchflower and Oswald. In this regime, we also find that works councils dampen the adjustment of wages to the regional unemployment situation. In the other regimes of plants that either do not make use of collective contracts or apply sectoral agreements, we do not find a wage curve.     

Does Deregulation Work? Reassessing the Unemployment Effects of Employment Protection

Using new data, this article examines the effect of employment protection legislation (EPL) on aggregate and youth unemployment in advanced economies and Central and Eastern Europe during 1980–2009. The results offer no clear support for the argument that EPL is a cause of unemployment. Although EPL reaches statistical significance at conventional levels in some models, the results are sensitive to small changes in the sample or the use of alternative estimators. While the analysis suggests some scope for complementary reforms of EPL and the tax wedge in tackling youth unemployment, the findings on the whole indicate that government efforts to tackle unemployment by deregulating EPL alone may well be futile.     

Economics of Supply of Canada's Military Manpower

Three key generalizations emerge from this study:

• 1 Economic factors can, in certain cases, be important in attracting applicants to other ranks of the Canadian armed forces. Sensitivity to the state of the civilian economy would appear to be greatest for the air force, where the average quality level of applicants in the labor force is highest. The impact of relative wages, as measured here, is substantially larger than that of unemployment.
• 2 Traditional and cultural considerations are also relevant. Previous historical and sociological research is supported regarding Quebec's negative attitudes towards the navy. Attitudes towards the army are less clear, as data shortcomings prevent precise interpretation of the regional dummy variables. There are also distinct seasonal patterns in application rates to each service.
• 3 Important differences in attitudes and quality of applicants were found among army, navy, and air force recruits. With the operational unification of Canada's three services into a single armed force in 1968, implications for recruitment remain an open question.

     

Changes in Wage-setting Arrangements and Trade Union Presence in the 1980s

In this paper we detail the results of a retrospective survey of changes in trade union and wage-setting arrangements in the 1980s for a sample of 558 UK companies. Our key findings are as follows. (1) Complete derecognition of unions in a firm was rare even in firms with low trade union density. (2) Partial derecognition in multi-plant firms was more common. Some 13 per cent of companies with recognized unions in 1984 had had at least partial derecognition by 1990. (3) Large falls in trade union density within a firm have also been rare, though small but observable declines have been commonplace. (4) The coverage of the closed shop has substantially declined, and this decline has been most marked in the last five years. Around one-quarter of firms with recognized unions in 1990, however, still had closed-shop arrangement for at least part of their work-force. (5) There has been no clear decline in the prevalence of multi-unionism or multiple bargaining units. (6) There has been a significant move away from national/industry-wide bargaining, towards negotiations at the individual company or more often the establishment level. (7) In the absence of collective bargaining there have been clear moves away from wage-setting by formal external links, such as wages councils and multi-employer agreements, and even away from worker consultation towards more managerial discretion. (8) In deciding wage settlements, managers are increasingly influenced by company performance and less by multi-employer wage settlements.     

The Incompatibility of Decentralized Bargaining and Equal Employment Opportunity in Australia

Profound changes have occurred in the industrial relations system in Australia since the mid-1980s as the system of centralized regulation has been replaced by collective bargaining at the level of the enterprise. This has corresponded with the considerable expansion of women's employment, mainly in part-time and temporary jobs. At the same time, recognition of the disadvantaged position of women in the work-force has resulted in the enactment of laws to promote equal employment opportunity. This article examines the ability of these laws to achieve equal employment opportunity policies alongside bargaining decentralization and a growing non-standard women's work-force.     

Continuous process technology, annualised hours and national bargaining

From the 1980s, the paper and board industry in Britain, in response to the pressures of strong foreign competition, sought the fuller utilisation of new and existing technology through changing work practices. This particularly involved the extensive introduction of annualised hours arrangements with national bargaining arrangements playing a major role in their introduction.     

Determinants of Decertification Activity: An Interstate Analysis

In this paper, a model of union decertification activity in the U.S. is estimated for 1960, 1970, 1975, and 1980. Cross-state data permit the use of regressors capturing the effects of demographic, political, and organizational factors not included in previous research on decertification. The estimated results confirm these effects. Tests for stability over the pooled sample periods 1960–1970 and 1975–1980 show some variability in the strength of the variables' effects.