Did globalization reduce unionization? Evidence from US manufacturing

How do globalized economic conditions affect labor market institutions such as unionism? We draw on recent theoretical and empirical work to explore a wider set of hypotheses regarding the decline in unionization. Using a comprehensive data set of US three-digit manufacturing industries from 1973 to 1994, we test the hypothesis that domestic and international competition directly reduces unionization. Using instrumental variable regressions, we demonstrate the relevance of product market competition variables for unionization. However, we are unable to account for the unionization decline over this period. This could reflect the lagged and complex effects of competition on unionization.     

Stakeholders in high-performance work systems

Recent research investigating human resource management (HRM) in organizations has used the systems approach which views HRM as a coherent set of practices. In particular, the notion of high-performance work system identifies a set of HRM practices that are presumed to be more responsive to the environmental challenges currently faced by organizations. Empirical studies have confirmed the system notion, particularly of what has been referred to as the high-performance work system, and its impact on organizations. Explaining its existence in organizations, which will help address the question of limited adoption, is only beginning, with one study each done in Great Britain and Canada. The present study extends the notion of competing interest groups to explain the existence of an HRM system, using more active influence measures. A sample of 222 business organizations in the United States reveals that, of four likely interest groups examined, unions and HRM departments prove to have competing interests in a high-performance work system.     

Monetary policy,exchange rates and labor unions in SEE and the CIS during the financial crisis

The objective of this paper is to assess whether the levels of unionization and the rigidity of exchange rates represent a constraint for the monetary policy in South-Eastern Europe and the Commonwealth of Independent States, with a particular focus on the recent economic crisis. Toward that end, a New Keynesian model with price and wage rigidities is used. The results show that monetary policy responded counter-cyclically during the crisis only in countries with weak trade unions and in countries with flexible exchange rates, which indicates that fixed exchange rates and strong trade unions constrain monetary policy in countries in these regions. Also, the findings show that the main driver of price inflation in these countries is not economic activity, but wages, which are affected to a large extent by trade unions. Therefore, trade unions should be active partners in the decision-making processes in these countries.     

The Effects of Labour on Accounting Choice in Canada

This study examines the effects of labour considerations on accounting choice in Canada. Two potential labour‐related incentives are considered: ability to pay and employee attraction and retention. Measures of these incentives are developed based on Canadian data: unionization for ability‐to‐pay incentives, and labour intensity and the percentage of white‐collar employees for the attract and retain incentives. Our results indicate that ability‐to‐pay incentives, measured by unionization, are not associated with depreciation policies in Canada. In contrast, the findings provide mixed support for the attract‐and‐retain perspective, because labour intensity was significantly correlated with these choices, while the percentage of white‐collar employees was marginally significant.     

Safety performance differences between unionized and non-union motor carriers

This paper analyzes the safety performance differences between union and non-union motor carriers. Based primarily on the safety and health provisions of a national agreement between the International Brotherhood of Teamsters and a major unionized motor carrier, a hypothesis is developed that union carriers have a positive safety impact. The hypothesis is tested using safety performance data. Key findings are that union membership has a statistically significant positive impact on both driver and vehicle safety performance. Union membership results in significantly fewer crashes as well.