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.     

The 'Skill-oriented' Strategies of German Trade Unions: Their Impact on Efficiency and Equality Objectives

In the present debate about options for the modernization of trade unions, the predominant argument being propounded is that trade unions and workers' representatives at plant level should take more 'responsibility' for the competitiveness of the firms. Among other things, they are advised to enter into 'alliances' with management at the level of qualification politics. This paper considers some important collective bargaining arrangements which the German trade unions have negotiated over the last few years in order to improve mutually beneficial further training decisions within German firms. The emphasis is on the potential of different agreements for achieving efficiency and equality objectives in the context of contemporary changes in production and restructuring processes.     

The collective voice of unions and workplace training in Italy: New insights from mixed methods

Using a three-phase approach that combines quantitative (pooled OLS, fixed effects and IV) with qualitative (semi-structured interviews) analyses, we find that in Italy, workplace unions are more likely to enhance training when they sign a firm-level agreement and when they can get access to external funds for financing. We also identify three channels: what we call a ‘maturation effect’, double-track communication and watch-dog function. We argue that these results are consistent with the idea that the impact of workplace unions on training depends on the empowerment of its collective voice within an institutional framework that does not fit either of the standard models provided by collective and liberal market economies.     

The Finances of Major U.S. Unions

Financial resources have a significant impact on labor's current attempt to reassert itself. We examine the total assets, net worth, and income of unions in (1) a cross-sectional analysis of the distribution of financial resources across national, intermediate, and local levels of unions and (2) a longitudinal analysis of trends in a variety of financial measures. We observe considerable decentralization of financial resources across levels, substantial concentration of resources, and differences across and within union sectors. These results are discussed with regard to current merger activity.     

Trade Union Influence on Human Resource Management Practices

This paper examines the influence of unions on 37 human resource management practices, ranging from hiring policies to promotion practices. The logistic regression results show that unionization is positively associated with a more formal approach to human resource management. There is, however, a shift from performance-based payment systems and performance appraisal (P.A.) functions in unionized settings. The results also indicate that union firms are more selective of new hires by adopting a formal probationary period for new employees. Last, the estimates suggest that the impact of unions on training programs varies with the nature of the programs.     

The effect of training for internet use among local trade union leaders

Internet use is increasing among all segments of society, including labour unions. In this article, the authors examine the role that training plays in internet use among union leaders. A survey was conducted among union leaders in a large Midwestern state with an economy widely spread among agricultural, manufacturing, mining, transportation and public sectors. Applying theories of technology acceptance and social learning, the researchers proposed that formal training leads to internet use and that formal training reduces problems encountered by internet users. Formal training was found to have a significant relationship with both the use and reduction of many of the problems associated with internet use.     

Flexible specialisation, work organisation and skills: approaching the 'second industrial divide'

Piore and Sabel's concept of flexible specialisation (FS) has initiated a lively debate between'optimists','pessimists'and 'sceptics'. The potential impact of FS on work organisation and skills is examined through a review of industry case studies with discussion of the implications for management, government and unions with respect to training policy.     

The Challenge of Human Resources Development

A productive workforce depends on a country's educational system, the quality of its health care, training and retraining opportunities, its family policy, its labor policies with or without unions, and the quality of public services. On all counts, a significant portion of the U.S. workforce is in serious trouble. Numerous community cases and experience abroad teach that ideological boundaries in the United States inhibit the formation of new partnerships, coalitions, and forums essential to the development of more productive human resources     

Coercion and the Trade Unions: a Reconsideration of Hayek

Friedrich Hayek was an influential critic of trade unions, especially critical of their presumed ability to act 'coercively'. Without coercive power unions could be benign; with coercive power they were seen to be a force for profound loss and danger. The paper examines Hayek's understanding of the general concept of coercion, and discusses how he applied it to the analysis of trade unions. It also looks at his more speculative treatment of trade unions in a 'non-coercive' world to see what that suggests about his analysis of trade unions. I conclude that Hayek's notion of coercion was unsatisfactory, that he was seriously inconsistent in his use of the term, and that he was hopelessly confused in his analysis of unions.     

The Nature of Some Recent Trade Union Modernization Policies in the UK

This article draws on recent research to present findings concerning the nature of some recent trade union modernization policies in the UK. In response to decline, it can be seen that the unions have increasingly been encouraged to represent and service members more as individuals than as part of a collective. This appears to be consonant with the frequently expressed view that greater individualism, both in employment and in society more generally, has largely been responsible for recent union weaknesses, and that if they are to endure the unions should adapt to it. Using data generated from interviews with full-time officers from a number of unions and from a case study of Unison organization within a local authority, the paper identifies two crucial problems with such an approach. First, it is argued that the substantial difficulties that the unions have experienced recently have been caused by a process of decollectivization in employment relations, and not one of individualization. Second, an indication of the complexity of the relationship between individualism and collectivism within trade unionism is given, something that is entirely ignored by proponents of the thesis that unions should concentrate solely on appealing to individuals.     

Union Formation through Merger: The Case of Ver.di in Germany

This article is concerned with the recent merger of five German unions to form the new multi‐industry union, ver.di. Its focus is on the effects of the merger and on developments in the post‐merger phase. The article explores the various internal problems of the new union, concentrating on those that flow from the adoption of a matrix form of organisation. It deals also with the external relations of ver.di, with other unions and with the central organisation of German trade unions, the DGB. Central conclusions here are that the creation of ver.di is likely to exacerbate competition amongst German unions and further erode the position of the peak association.     

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.     

German Employers’ Inputs to Employee Skills Development

Using organizational level survey data, this article analyzes larger German private employers’ inputs to employee skills development, to test the theory that unions and employers’ associations raise employer incentives for training. Large German employers maintained their overall contribution between 1995 and 1999. Indicative data for 2004 suggest that this has continued, yet neither membership of employers’ associations nor high union densities influenced it.     

Public Opinion, Trade Unions and Mrs Thatcher

This article builds upon the explanation of the rise in trade union popularity developed by P. K. Edwards and G. S. Bain in a previous volume of this journal. The Gallup Opinion Poll data indicate that, while the public have consistently thought unions to be a good thing, they have equally consistently opposed any political activity by unions and the unions' use of 'unsavoury' tactics. These are exactly the activities which the Thatcher trade union legislation has restricted. As such, it is suggested that the rise in popularity of unions in the second and third terms of the Thatcher government reflect, in part, the fact that the public thinks they have now got the type of unions they always wanted: unions with a constrained ability to bargain collectively with employers.     

Unionization structure, licensing and innovation

We show the effects of the unionization structure (viz., decentralized and centralized unions) on a firm's incentive for technology licensing and innovation. The incentive for technology licensing is stronger under decentralized unions. We identify circumstances under which the benefit from licensing creates a stronger incentive for innovation under decentralized unions. If the union's preference for employment is high, the benefit from licensing may create higher incentive for innovation under decentralized unions. However, if the union's preference for wage is high enough, the incentive for innovation is higher under a centralized union irrespective of licensing ex-post innovation. If the centralized union decides whether or not to supply workers to all firms, the possibility of higher innovation under decentralized unions increases. We further show that perfectly substitutable workers can be better off under decentralized unions if the labor productivity depends on the unionization structure, which occurs in our analysis when, e.g., licensing after innovation occurs only under decentralized unions or innovation (with no licensing) occurs only under a centralized union.     

Union Voice Effects in Mexico

This paper utilizes establishment survey data from Mexico to explore the impact of union voice on fringe benefits, turnover, job training and productivity. Mexican unions have a significant effect on these outcome measures for workers and firms. Unions increase both the value of fringe benefits per worker and the ratio of fringe benefits to total compensation, increase job training and raise productivity per worker. However, contrary to the broader literature on union voice effects, unionized establishments in Mexico appear to possess greater worker turnover.     

Personnel Decisions,Wage Profiles and Investment in Firms

An investment model where firms mitigate adverse hold‐up effects using hiring and personnel policies is theoretically investigated and empirically scrutinized. While no evidence for the prediction of differing worker characteristics, other than gender, across firms is found, demand (firm) side factors are evident in the hiring process. Evidence on other personnel policies is consistent with theory, which predicts firms with high‐investment expenditures resist unions, utilize more temporary and shift‐time workers and conduct more multitask training. Wages in high‐investment firms are higher, more sensitive to unemployment and experience variables that exhibit greater effects than in low‐investment firms.     

Business as a Pivotal Actor in the Politics of Training Reform: Insights from the Case of Germany

Often admired by international observers, the German dual training system has come under pressure in recent years because of a persistent lack in training slots for young people. The article addresses the question of how policy makers have reacted to the problems in the training market. Particular attention is paid to the formation of politico‐economic coalitions between state actors, business representatives and unions. On the basis of three case studies of recent reforms (or reform attempts), we identify two types of cross‐class coalitions: a conservative coalition that aims at maintaining the status quo of the firm‐based training regime and a segmentalist coalition promoting the gradual transformation of the system towards a less collective and more firm‐centred variety. In both kinds of politico‐economic coalitions, business actors play a pivotal role. The reason for the privileged position of business in the politics of training reform is, I argue, a politically constructed dependency of the state and unions on the continued co‐operation of business in the provision of training slots. In the conclusion, I discuss the implications of my findings for the debate on the dualization of co‐ordinated market economies.     

Trade Union Policies towards the Youth Training Scheme: Patterns and Causes

The Youth Training Scheme presented British unions with a mix of opportunities and threats. Patterns of interest in and policy towards YTS among the 42 largest unions are studied for 1983–8. Most unions showed interest in YTS but they divided sharply on whether or not to oppose it. Statistical analysis indicates a role for both economic and political factors in determining differences between unions in interest and policy. Opposition proved most intense and widespread among unions that represented the lower-grade occupations in the public sector. Such unions were heavily affected by trainee-employee substitution and in addition were relatively well placed to enforce its exclusion. Left-wing political orientation was also associated with opposition to YTS, but at the level of principle rather than action.     

A Typology of Japanese Enterprise Unions

Are Japanese enterprise unions similar, or are there substantial variations among these unions in relation to their dependence on management and their structures for member involvement? Using a survey of unions conducted in 1991 and detailed interviews with union officials in 1993, a typology of enterprise unionism is developed. A preliminary assessment of the model is then made with reference to a range of industrial relations practices and behaviour.