comm 381 industrial relations week 1 dr. s. walsworth walsworth, comm 381
TRANSCRIPT
What Do Unions Do?COMM 381
Industrial Relations
Week 1
Dr. S. Walsworth
Walsworth, COMM 381
Lecture AgendaThe Union Effect
• Measurements
• Positive (Voice effect and Shock effect)
• Negative
Employer Effects• Productivity
• Profits
• Innovation
• Employment growth
Employee Effect• Compensation
• Job satisfactionWalsworth, COMM 381
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Figure 1: Union Density and GDP Measures for Canada, Australia, and Britain
Canadian Union Density
Australian Union Density
British Union Density
Canadian GDP
Australian GDP
British GDP
Union Density and GDP Measures
Walsworth, COMM 381
Union Density and GDP in SK
The Union Effect: Positive Effect
1. Voice Effect
2. Shock Effect
3. Increased workplace loyalty
4. Increased job security
Walsworth, COMM 381
The Union Effect: Negative Effect
• Union man first – employee/management conflict
• Higher wages
• Lower profits
• Lower investments
• Restricted growth
• Reduced management autonomy
• Increased protection for poor performers
• Decreased merit incentive
Walsworth, COMM 381
Employer Effects: Empirical Evidence
1. Productivity: mixed results, but generally not believed to match extra union cost
Walsworth, COMM 381
Employee Effect
Wage premium
Job security
Next week we get into the History of the Labour Movement