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.     

The estimation of union wage differentials and the impact of methodological choices

This paper demonstrates that methodological differences can matter a lot in the estimation of union/non-union wage differentials. Using individual-level data from the 1991 Wave of the British Household Panel Survey and a model evolved from replicating six existing British studies, we find that the model specification adopted has an important impact on the estimated differential and that the choice of which group means to use when evaluating the mean differential in multi-equation models is of considerable importance. There are also important differences between membership and coverage differentials and the earnings measure used and sample selected also make a difference. However, apart from firm size, the contents of the control vector used is not found to be of great importance.     

The Central Government-Private Sector Wage Differential

Since Ehrenberg and Schwarz (1986) there has been a plethora of articles investigating the relationship between public and private sector wages. This article examines part of this post 1986 literature by reviewing articles that examine central government-private sector wage differentials. In sum, most articles find that there is a premium paid to central government workers, although the premium has declined in recent years. In developing countries, however, the differential is usually negative. Women and minorities tend to do better in the public sector relative to their private sector counterparts. The evidence on union premiums between sectors is mixed, although the premium tends to be higher in the private sector. However public sector union workers do not do much better than private sector union members. The magnitude of all of the wage differentials discussed are sensitive to the estimation technique and data source used. The most common explanation for the public sector wage premium is economic rent accruing to government workers, although the public sector wage determination literature suggests that the differential is due to returns to political and 'vote producing' activities not relevant in the private sector.     

Wage determination in the union and nonunion sectors.

This study contains estimates of wage equations for white male union and nonunion employees. The authors find that nonunion wages are generally more responsive than union wages to individuals' education and experience and to regional price-level variation. Despite those differences, however, estimates of union-nonunion wage differentials based on these separate equations do not differ greatly from a differential obtained from a union dummy variable in an equation based on combined union and nonunion observations. Union-nonunion differentials vary widely across occupational groups and are generally larger in the lower skilled and more highly unionized occupations. The results for manufacturing, for which additional industry data are available, indicate a negative impact of high concentration ratios on the wages of all workers and a greater impact of establishment size on nonunion than on union wages. Data were drawn from the May 1973 Current Population Survey.     

Union Coverage Differentials. Some Estimates for Britain Using the New Earnings Survey Panel Dataset

This paper reports individual-level estimates of union/non-union wage differentials, using coverage information from the New Earnings Survey Panel Dataset. There are no existing panel estimates for the United Kingdom. Of a number of findings, the more important are (i) fixed-effects estimates are about one-half the equivalent cross-section estimates; (ii) the biggest differentials are for ‘company/district/local only’ agreements; and (iii) the differential is counter-cyclical. Also the effect of the 1979/82 recession was probably dampened by anti-union legislation, and the upward trend between 1975 and 1995 is due to the decentralization of collective pay bargaining.     

Capitalization of local fiscal differentials: Inferences from a disequilibrium market model

This study analyzes tax capitalization within the framework of a disequilibrium market model. In particular, this study examines whether local fiscal differentials influence the rate of change in neighborhood house prices over time. Local fiscal differentials existing in 1970 are found to have no influence on the rate of change in neighborhood house prices over the period 1970–1972; therefore, the study concludes that, other things being equal, these local fiscal differentials have been completely capitalized in price levels.     

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.     

21st‐century models of employee representation: structures,processes and outcomes

The 2004 Workplace Employment Relations Survey allows further exploration of the fate or workplace‐based forms of employee representation charted by earlier surveys. We describe the occurrence and diversity of representational forms, union, non‐union and ‘hybrid’, and the structural characteristics of workplaces where they are found. We go on to analyse a number of structural and processual differences and differences in outcomes. In particular, we try to estimate the effects of different forms for outcomes such as wage dispersion, procedural ‘fairness’ and productivity. The data show that ‘hybrid’ systems of union and non‐union representation are associated with the best outcomes, therefore, notwithstanding the continuing decline in the diffusion of the ‘traditional’ union‐based model of workplace representation, union presence is still a prerequisite for effective representation, while ‘pure’ non‐union forms serve neither employee nor employer interests.     

Does Measurement Error Bias Fixed‐effects Estimates of the Union Wage Effect?

This paper compares estimates of the union wage effect using cross-section and panel estimators for male manual full-time and female employees using data from the British Household Panel Survey, 1991-1997. A comparison of cross-section and panel estimates suggests that unobserved heterogeneity biases cross-section estimates upwards. However, it is also found that the divergence between estimates is overstated because measurement error biases the fixed-effects estimates downward. Reducing measurement error in the union variable by taking averages and restricting changes in union status to occur only when a change in employer and/or job takes place increases fixed-effects estimates of the union wage effect.     

Monopoly, Monopsony, and Union Strength and Local Market Wage Differentials

A bstract . The study of the influence of product market monopoly, local labor market monopsony , and union strength on market wage differentials is the purpose of this paper. Accordingly, the related theoretical propositions are examined, synthesized and extended to explain more fully observed variations in local labor market wages. In contrast to previous investigations, this study considers several varied occupations at once, encompasses nineteen different two digit SIC industries , and computes market wage data using observations on individuals from the 1970 census. The results indicate that the extent of unionism and employer monopsony contribute significantly to the explanation of market wage differentials, while the product market concentration , and its interaction with unionism does not.     

Trade union recognition and the recession in the UK

Against a background of falling union density and the increased presence of non-union plants and firms in the UK, this paper reviews union attempts to obtain recognition in recent years. Particular attention is paid to the use of conciliation for this purpose, with the evidence indicating a considerable decline in union success.     

Does labor–management partnership deprive union members of activism toward their unions? Evidence from union members in Korea

This study aims to analyze whether partnership ideology really deprives union members of the willingness and passion to act for their union, resulting in union decline, and whether militant unionism, which includes adversarial ideology against employers is more effective for igniting members' activism for their unions rather than labor–management partnership. The survey data were obtained from union members working in Mechanical and Metal Manufacturers Complex, Changwon, Republic of Korea. Judging from the overall results of the data analysis, Kelly's (1996) claim that moderate unionism based on partnership ideology would undermine members' activism for their unions was not supported; on the contrary, partnership ideology had positive effects on both members' activism for their unions and decision-making practices. The difference between partnership and militancy is that militancy had an intensive effect on the narrow focus of union activities, but the impact of partnership achieved a better balance between participation in union activities and in management decision making.     

Union status of young men in Britain: a decade of change

Previous empirical studies of individual union status in Britain have been cross‐sectional. In contrast, we use longitudinal data from the National Child Development Study, to estimate the determinants of male trade union membership over the period 1981–1991. As suggested by union theories, we find that it is important to control for unobserved individual heterogeneity, and our preferred model allows for correlation of individual heterogeneity with observable variables. Our estimates reveal that the observed decline in very large workplaces, and the contraction of the public sector, explain about one third of the predicted decline in union membership over the period. Copyright © 2000 John Wiley & Sons, Ltd.     

Union substitution effects of human resource management practices in South Korean workplaces, 2005–2013

Abstract

This article explores the association between various workplace-level HRM practices and a decline in union strength using a unique longitudinal survey data-set gathered in South Korea from 2005 to 2013. It addresses the underlying theoretical mechanisms by which HRM programs substitute for the roles labor unions have traditionally played. Suggesting more nuanced theoretical implications about HRM practices and union decline, statistical analyses reveal that workplaces that have implemented HRM practices have unions with a weaker organizational base than those without such practices, but that certain HRM programs correlate with unions with a strong collective voice in management decision-making. This article identifies the new roles for unions in South Korea in the era of HRM.     

Labor union negotiations: stepping stones or stumbling blocks for a responsible downsizing strategy? Empirical tests in Taiwan

Firms have used organizational downsizing strategies for years. But organizational downsizing not only cannot surely improves firm performance, but also harms thousands of employees and their families. A number of scholars investigating organizational change suggest that ‘a responsible downsizing strategy’ can mitigate or solve this issue. As the major stakeholder in downsizing, labor unions naturally negotiate with firms to protect employee rights and benefits. Their negotiation, therefore, may either enhance or mitigate the effect of responsible downsizing strategy on firm performance. This study used a sample of 154 downsized local firms and multinational corporations in Taiwan to examine the research construct, and invited focus groups to have a further validated explanation. The findings show that labor union negotiation may act as either stepping stones or stumbling blocks. The results indicate that firms employing labor union negotiation experience higher downsizing performance than non-unionized firms do. However, labor union interventions can also become stumbling blocks. Labor union negotiation neutralize the positive effect of employee-caring practices on downsizing performance, leading to a decline in downsizing performance when firms increase employee participation and justice consideration in the downsizing process. The research findings provide implications for further scholarly research and management practices in terms of organization change, stakeholder management and labor–management relationship.     

TRADE UNIONS AND THE DISPERSION OF EARNINGS IN BRITISH ESTABLISHMENTS, 1980–90†

ABSTRACT The relationship between unions and earnings dispersion is examined using establishment-level data from the 1980, 1984 and 1990 Workplace Industrial Relations Surveys. Initially the cross-sectional relationship is examined using the 1990 data. The earnings dispersion of skilled and semiskilled workers is seen to be lower across unionized establishments than across non-union establishments; secondly, within-establishment earnings dispersion is lower in plants which recognize trade unions for collective bargaining purposes than in those that do not. All three surveys are then utilized to ascertain to what extent the decline in unionization in Britain has contributed to the rise in earnings inequality of semi-skilled workers. There was a sizeable and important widening of the gap in the dispersion of earnings across union and non-union plants between 1980 and 1990. For semi-skilled earnings, the decline in the share of plants with recognized unions can account for 11-17 percent of the rise in earnings inequality over this time period. The importance of falling union activity (as measured by union recognition) seemed to accelerate through the 1980s. Between 1980 and 1984 the relatively small falls in aggregate recognition explain less than 10 percent of the inequality increase, whereas between 1984 and 1990 about one-quarter of the increase can be accounted for by the fall in unionization. The majority of the rise in earnings inequality is, however, due to a large increase in earnings dispersion across non-union establishments.     

Union organizing in Britain: a survey of policy and practice

Analysis of the reasons for trade union decline in developed economies has pointed to their failure to invest in effective methods of recruitment as a contributory factor. This article presents survey and case research to examine the extent to which union failure in recruitment and organizing has been rectified in the United Kingdom. The evidence indicates a varied but nevertheless substantial re-direction of union effort towards recruitment since the mid-1990s and is used to identify the characteristics of 'recruiting unions' which have invested more heavily and adopted more ambitious recruitment targets. Recruiting unions are found to be those which are receptive to learning new approaches to recruitment from overseas and which have relatively advanced arrangements for the representation of women and minorities in their internal systems of government.     

Economic freedom and one-way truck rental prices: An empirical note

This study examines the one-way truck rental prices for 378 cities. There are large price differentials in one-way rental prices between city pairs. The pull of people toward higher economic freedom locales and push away from lower economic freedom locales is found to be an important determinant of the city-pair price differentials.     

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 pervasive absence of compensating differentials

We study the relation between individual preferences for job amenities (e.g., type of work, job security) and compensating wage differentials in cross‐section. To this end, we estimate a partial equilibrium job search model on panel data from eight European countries. There are five non‐wage job characteristics and two sources of job‐to‐job mobility: on‐the‐job search and reallocation shocks. We also allow for two types of unobserved heterogeneity. We find strong preferences for amenities, especially job security, yet, these preferences do not translate into significant wage differentials in cross‐section. Counterfactual experiments show that one would need extremely low levels of search frictions for compensating differentials to arise. Lastly, a similar exercise on the distribution of job change outcomes reveals the role of constrained job‐to‐job mobility in the absence of compensating wage differentials. Copyright © 2009 John Wiley & Sons, Ltd.