A Social Welfare Theory of Trade Unions

There have been recent advances in the understanding of trade unions by modeling union objectives as maximizing a neoclassical utility function. While this literature is most relevant for autonomous and homogeneous local unions, there are also numerous large, heterogeneous trade unions in many countries. This paper illustrates that social choice theory presents a more realistic framework for explicitly modeling the aggregation of potentially diverse preferences within trade unions.     

Trade Union Preferences in Double Dividend Models

This paper analyses wage formation in a unionized economy where consumers as an externality in their utility function have the level of local pollution. If modelled in a microeconomically consistent way this externality should also be present in the preferences of the trade union. The key result is that when this trade‐off between pollution and employment is included in the trade unions’ preferences then they are willing to lower wages to generate substitution towards higher employment and lower pollution. As a consequence, an increase in the pollution tax will lead to lower wages. At a more general level the results show that in models analyzing pollution issues, such as the double dividend literature, it is very important for the policy conclusions how trade unions are introduced.     

Trade Union Priorities and Wage Rigidity

ABSTRACT: The starting point of the paper is that trade unions engage in substitution once certain targets have been met. This implies that a priority-based or hierarchical model might be a better approximation to union behaviour. This model requires a two-part union utility function which changes when a satisfactory (or target) level of the priority variable (e.g. the wage rate) is met. After demonstrating the workings of such a model in a monopoly union framework, it is shown that there is real wage rigidity when the wage is below the target level. Employment increases only when the target wage has been achieved.     

Determinants of Union Membership: A Review

The recent drastic decline in trade union membership levels in most Western countries has led to renewed interest in the factors which influence the decision of employees to join unions. This paper discusses the strengths and weaknesses of the three main approaches: structural determinism, individual-level analysis, and conceptual models of trade union joining behaviour. Structural determinism is discussed in the context of the Bainian model and its various extensions. In contrast, the diverse findings in the field of individual-union joining behaviour is assessed by drawing on a comprehensive table comprising all variables examined in this area. The first two sections focus exclusively on trade union joining behaviour as the independent variable whereas the third part of the paper uses an individuals' voting behaviour in the USA. This focus was necessary due to the lack of causal models using union joining behaviour as their dependent variable. The author selects two of the most advanced models for a detailed analysis, and relates the findings to the preceding sections. It is the objective of the paper to critically evaluate the three approaches and their contributions towards understanding this complex field of research.     

Recent Developments in Greek Industrial Relations: Statutory and Attitudinal Changes Towards Participation and Cooperation

ABSTRACT: Industrial relations in Greece were characterised in the past by labour-management mistrust and conflict, as well as by strong government intervention which invariably influenced the state of industrial relations. Political instability and other serious interruptions, such as World War II, the enemy occupation, civil war and two military dictatorships, made any effort for improvement very difficult, if not impossible, in the 1936-1974 period. Some concerted efforts were made later and especially in the 1980s (with EEC influence and support), which met with considerable success. A series of parliamentary acts and ministerial decrees, restored trade union freedoms, introduced statutory consultation and participation, strengthened collective bargaining, and established an independent agency for the settlement of disputes. Some degree of unity was also achieved among the major political factions represented in the trade union movement. More importantly (and in spite of their traditional reluctance to cooperate) the social partners represented on the employers‘ side by the Association of Greek Industries (SEV), and on the workers‘ side by the Greek General Confederation of Labour (GSEE) are beginning to move towards the development of innovatory systems of cooperation for the solution of problems of mutual concern. Furthermore, there are also some significant structural developments, including the establishment of a growing number of enterprise-level trade unions, which are engaged in contract negotiations and agreements, and participation at the enterprise level. Additionally, appropriate research and training on both sides are helping to meet the socio-economic challenges of the current decade and beyond.     

Unions and the Welfare Impact of Foreign Direct Investment — A Wisdom Extension

Abstract. This paper extends the recent literature, e.g. Leahy and Montagna (Economic Journal 110: 80–92, 2000), in relation to the link between unionization, inward foreign direct investment (FDI) and country welfare in an oligopoly market structure. It is shown that the common results, that unions may reduce welfare under FDI while multinational enterprises (MNEs) will strictly trade off union wages at each location, are generally driven by the assumption relating to the scope of the bargaining with the union, namely the ‘right to manage’ (RTM). In particular, our extension to efficient bargaining (EB) demonstrates that union power may increase welfare in the presence of FDI, while the MNEs’ choice between FDI and exports will include profit‐sharing arbitrage with unions, in addition to the usual wage comparison considerations.     

Delegation and Wage Determination in Trade Unions

Delegation of wage determination is modelled as the transferral of decision‐making rights to better‐informed agents. The rank and file of trade unions has less information and can, therefore, benefit from delegation. However, delegation might be disadvantageous for union members, since delegates pursue their own objectives. Also, delegates might incur a utility reduction, since becoming a delegate implies forfeiting a better‐paid outside option. We investigate under what conditions delegation of wage bargaining power is beneficial for union members and their potential leaders. The wage and employment effects of delegation are derived.     

Union–Firm Bargaining,Productivity Improvement and Endogenous Growth

This paper presents a growth model with two sectors. In the high‐tech sector, R&D increases productivity and union–firm bargaining determines wages, but in the traditional sector there are neither R&D nor labour unions. The government is able to regulate union bargaining power. The main results are as follows. Because firms try to escape wage increases through the improvement of productivity by R&D, the increase in union bargaining power boosts R&D and growth. It is welfare enhancing to strengthen (weaken) unions when the growth rate is below (above) some critical level. A specific rule is presented for when de‐unionization is socially desirable.     

Commitment to the union: a survey of research and the implications for industrial relations and trade unions

This paper presents an overview of the literature on union commitment. The aim is to survey the main approaches, findings and implications of the research. The nature and dimensionality of union commitment are examined, and the antecedents and consequences of union commitment are discussed in detail, including a review of the implications for union participation. There is also a discussion of the possibility of dual commitment to union and employer, and of the 'multiple constituencies' view of commitment. An attempt is made to link the union commitment findings to the wider industrial relations literature on, for example, why people join unions and the 'union renewal' thesis. The article concludes by discussing the implications of the literature for union–management relationships and for unions themselves, and with some suggestions for future research.     

私营部门:劳资关系及协调机制

中国的劳资关系失衡,主要表现是雇主主导劳动市场,违法违规现象严重,劳资纠纷快速增加。同时,劳资协调机制滞后于私营部门和改制企业的发展。近几年来,加快完善劳资协调机制任务的紧迫性在不断提升。解决这个问题,既需完善政府、工会、雇主组织的职能和组织建设,也需要调整或校正存在于政府和工会某些部位中的不当目标和行为。治理失衡的劳资关系,首先要完善“吏治”。发展企业外的区域/行业性集体谈判机制,对于完善私营部门工会的维权职能具有重要的意义。为此,应该修改《劳动法》和配套法规的有关条款。     

Is Wage Leadership an Instrument to Coordinate Unions’ Wage Policy?The Case of Imperfect Product Markets

Given an oligopolistic product market, trade unions organized at firm level want to coordinate their bargaining activities. If for some exogenous reasons centralization is not possible, unions could try to coordinate wage setting by wage leadership. The outcome of such wage leadership is compared with that of an uncoordinated bargaining and is characterized by higher utilities for all unions. But wages and employment levels are not symmetrical either for unions or for firms. The leader firm employment decreases and the follower firm employment rises compared with uncoordinated bargaining. This may cause problems with the implementation of wage leadership.     

Quality circles—Are they working in British factories?

A survey of Quality Circle programmes in British manufacturing companies reveals that Circles introduced and used properly with full management and trade union support can and do work and have many benefits. The findings suggest that current management attitudes and actions are more detrimental to the establishment and success of a circle programme than that of the trade unions. Based on the findings, indications are made of the factors which will assist companies who are considering the introduction of a Quality Circle programme and also help those companies currently using Circles to make and keep them effective.     

THE IMPACT OF UNIONS ON OPERATIONS STRATEGY

This paper explores the effect that unions have on a firm's ability to reengineer manufacturing processes. We begin by exploring the various effects that a union may have in a manufacturing environment. Next, we briefly review how unions may affect managerial initiatives to reengineer processes and improve manufacturing performance. The third section analyzes an existing database to test for differences in cycle time and manufacturing performance between union and nonunion firms. Finally, we discuss the implications of the study for future operations strategy research and note how a different form of union‐management relationships is beginning to evolve.     

Is there a physician union in your future?

Physician unions are in the news. Patient management and patient care decisions are increasingly being taken out of the hands of physicians and put into the hands of "The Suits." To take their case for a return to physician-driven patient care to the people, some physicians are joining unions. Some are even collectively bargaining for salary and other issues that are historically more closely associated with unions. The simple fact is that physician unions exist and the number of physicians joining them is expected to increase. What are the pros and cons of unionization? What motivates physicians to join unions, and what potential negative and positive factors are associated with physician unionization? This article reviews the pros and cons and the issues related to physician unions, for physicians attempting to answer the question, "Is there a union in my future?"     

Discrimination and Resistance to Low‐skilled Immigration

Abstract. This paper shows that the immigration of some low‐skilled workers can be of advantage for low‐skilled natives when the host economy suffers from unemployment due to the presence of trade unions and an unemployment insurance scheme. This benefit arises if trade unions have appropriate bargaining power and preferences for members’ income, labor market discrimination against immigrants is strong enough and the unemployment tax rate is low.     

The Political System as a Problem for the Trade Unions in Italy: 1975-1983

ABSTRACT: This article focuses on a particular aspect of the evolution of the Italian trade unions, that is the problems faced by them in dealing with the political institutions and structures, or, in other words, the political system. We consider this period from the mid‘70s to the early 80s, because it represents the culmination of a gradual development in both unions and institutions during the previous years, and the resulting problems that evolved in the interaction between them and the political institutions. We look at how the unions’political action was modified during this lapse of time, and draw some conclusions about the unions resulting political role.     

Unionization Structures in International Oligopoly

We examine how competition in international markets affects a union's choice of wage regime, which can be either uniform or discriminatory. Firms are heterogeneous with regard to international competition. When unions choose their wage regimes sequentially, a discriminatory outcome becomes more likely when international competition increases. However, for intermediate levels a union may stick with a uniform wage regime even if the rival union adopts a discriminatory regime. When competition is sufficiently intense, both unions revert to the discriminatory regime. Paradoxically only in those latter instances all parties (consumers, workers, and firms) may be better off (each in aggregate) if all unions adopt a uniform wage regime. We conclude that union incentives to coordinate their wage regimes should then also become largest.     

Strengthening the technological capabilities of domestic industries: Pressures,deterrents and policy alternatives

After calling attention to some misleading conceptions of the industrial sectors facing increasing challenges from abroad, the analysis highlights the primary sources of recent shortcomings in the competitiveness of major industries in the US and in some other long industrialized economies. Suggestions are then offered concerning potential corrective policies available to national governments, to managements, to trade unions and to universities as well. Finally, the need for long term perspectives in formulating and implementing such constructive programs is emphasized along with the need to integrate them with other major programs for promoting the national welfare.     

委托-授权、工会合并及企业合并行为选择研究

基于委托-授权下的Cournot寡头竞争市场模型,分析了工会的合并是否会刺激企业的合并.通过4阶段博弈的子博弈完美纳什均衡解,发现2个相互独立的工会将会为了得到更大的利益而合并,但这种合并不利于企业所得的增加.     

Constants and Variants in Political Exchange

ABSTRACT: The purpose of this article is to offer some clarification on developments in a number of European countries in the postwar period. The crux of the analysis are the relations between the huge, functional interest-group organizations and the political system and government, and in particular the trade unions. The intent is firstly to overcome the uncertain and often indistinct use of the concepts of political exchange and corporatism, then to offer an explanatory framework in which these modes, which have prevailed in Capitalist countries, can be grouped under the model of political exchange, in so much as the trade unions’representation of interest groups is affected by the factors and political advantages at stake. It then clariries the essential connotations of this model, which can be considered as constants compared to the variants within it, and also deals with the two types of political exchange predominant in the period and countries surveyed, namely pluralist and cor-poratist variants. Finally the author stresses the need for empirical studies in postwar Europe, to check the acceptability and realism of the model used and test the validity of the theses here outlined, that is, that there are several variants — or strategies — of political exchange between trade unions and the governments and political system.