Equity market response to union decertification petitions and elections

The effect of union decertification elections on the valuation of corporations is examined using a standard event study methodology. Cumulative abnormal daily common stock returns for 203 NYSE and AMEX listed firms are estimated for the day on which a petition for a decertification election is filed and for the day on which the National Labor Relations Board (NLRB) certifies the decertification election outcome. The results are consistent with the hypothesis that successful union decertifications increase firm valuation and unsuccessful ones reduce firm valuation. The primary carrier of valuation information is the date the NLRB confirms the decertification election results. The petition file date yields little, if any, information about the firm’s capitalization. The authors thank the directors of the regional NLRB offices and the editor of this journal for their assistance. The usual caveats concerning errors and omissions apply. Correspondence should be directed to William L. Huth.     

Determinants of union election outcomes in the non-hospital health care industry

Our research examines union election activity in the non-hospital health care industry over a 12-year period and shows that unions in this industry consistently win a greater percentage of their elections than their counterparts in either the hospital segment of the industry or other industries. Furthermore, the results indicate that several factors, primarily organizational characteristics, significantly affect the union victory rate.     

An empirical analysis of union election outcomes in the electric utility industry

Unions in the electric utility industry consistently won a greater percentage of elections between 1970 and 1989 than did unions in other industries. Several factors significantly affected union victory rates at electric utilities: when the election was held, the union involved, the size of the utility, the percent of the state’s labor force unionized, the number of eligible voters, whether the election involved multiple-unions, and whether the election was Regional- or Board-directed.     

Information,disinformation, and union success in certification and decertification elections

In certification elections, workers consider the purchase of union services whose quality is, ex ante, unobservable. Voters must rely on available signals or indices in forming their expectations. Union members are able to reevaluate their initial purchase decision as more accurate information is obtained through experience. Therefore, participants in decertification elections rely less on sources of imperfect information. Using NLRB data over the period 1966 to 1990, we find evidence consistent with information-related distinctions between the certification and decertification decisions. Our study provides a useful framework for understanding the observed differences between these two types of elections. This research was funded through the Illinois State University Research Grant Program.     

Union organizing expenditures: Determinants and their implications for union growth

This paper explores some implications of the economics of union organizing. Following the literature, it is argued that the economic costs and benefits of organizing are systematically related to the proportion of the union’s jurisdiction already organized. Evidence is presented that unions do allocate a smaller proportion of their budgets to organizing when a greater proportion of their jurisdiction is already organized. Total union organizing expenditures, however, are found to increase over a broad range as the percentage organized increases. The supply of union-organizing services to unorganized workers apparently only declines at relatively high levels of union penetration. These critical levels of unionization have been attained only by a few U.S. labor organizations.     

Union mergers and the integration of union governing structures

Union mergers may require varying degrees of integration of union governing structures. Union amalgamations can range from complete fusions of the unions at all levels, to moderate integration, to the establishment of federated structures. Union absorptions, the alternative merger type, can entail complete and immediate absorptions, the formation of semi-autonomous divisions, and absorption through affiliation. The paper presents an examination of post-merger governing structures and a review of the factors associated with different degrees of integration.     

Union democracy in the international typographical union: Thirty years later

The International Typographical Union, long cited as the one deviant case to Michel’s “iron law of oligarchy,” is examined thirty years afterUnion Democracy to determine whether or not democracy can survive in the face of today’s hostile environment. An analysis of events occurring within the union as well as the results of a case study of a large ITU local indicate that an unfavorable environment poses unavoidable challenges to democracy. The author thanks Ed Gross, Phil Kienast, Dennis Quinn, Terry Mitchell, Bob Aulerich, and Northwest Typographical Union #99 for assistance at various stages of this research.     

Union activity and the decline in American trade union membership

This paper extends recent research on the determinants of the decline in union membership in the United States. Using biennial state-level data for a set of years between 1958 and 1982, my model tests “union organizing,” “structural,” “management opposition,” and “public policy” hypotheses concerning union membership and suggests improved specifications of each of these hypotheses. The paper also examines the relative importance of each factor in explaining the decline in unionization. The results support each of the hypotheses and confirm previous findings that changes in the structure of the labor force are most important in explaining union membership decline.     

Voting rules and election outcomes: When does the true majority win?

Majority-in-unit (MIU) and method of majority decision (MMD) voting rules are investigated to determine their impact on the outcome of union elections. A theoretical foundation is established to explain why voters may rationally choose not to vote in these settings. Numerical simulations are employed to compute the probability that the population majority wins the election. The results for these two methods are compared to see which one is most likely to award the election to the true population majority.     

Union characteristics and organizing success

Using archival data, 12 independent variables pertaining to organizing strategy, organizing resources, and financial resources were used to predict the NLRB certification election success rates of national unions in three different time periods. The more than 50 unions participated in more than 75 percent of such elections. Relative to the hypothesized relationships, a mixed set of results was obtained. Possible explanations for these results, along with suggestions for more refined measurement procedures, are offered in terms of future research needs. Financial support for this project was provided by the Graduate School Research Committee at the University of Wisconsin-Madison and by the Graduate and Research Committee, College of Business at the Ohio State University. Data analysis was provided by Kyu Hwang. We thank Marick Masters, Anne Miner, and Craig Olson and an anonymous reviewer for comments. An earlier version of this paper was presented at the Academy of Management meeting, Chicago, August 1986.     

The effects of right-to-work legislation on union outcomes: Additional evidence

The authors reexamine the role of open shop legislation in affecting union outcomes. New indices of union success are employed which include election voting behavior, the size of newly certified units, and the rate of union decertification. Three competing hypotheses are empirically tested: (1) the free rider argument predicting lower membership levels in right-to-work (RTW) areas; (2) the saturationist hypothesis predicting a higher level of organizing activity in RTW areas as a result of large concentrations of unorganized workers; and, (3) the hypothesis that legislation is vitiated by distinct organizing behaviors in RTW and nonRTW areas. Empirical results, based on SMSA data from 35 states, tend to provide support for hypotheses (2) and (3). Recently, RTW areas have experienced more prounion outcomes, and the union returns to regional attributes (measured by Chow tests) are found to be distinct in the two areas.     

South/non-south differentials in national labor relations board certification election outcomes: Comment

A recent study of National Labor Relations Board (NLRB) certification elections concluded that there are no regional differences in the probability of unionization. This paper suggests that it is inappropriate to draw such broad inferences from NLRB data, since elections occur only where an initial preference for unionism has been expressed. Using a national data set on private sector hospitals, we demonstrate that Southern location significantly reduces the probability of having an election and the probability of negotiating a collective bargaining agreement, but it does not affect the probability of a union election victory. Opinions expressed do not necessarily reflect the views of the authors’ institutions. We would like to thank Peter Feuille and James Kuhn for helpful comments on an earlier version of this paper.     

Rumour and decertification in exile politics: evidence from the Egyptian case

ABSTRACT

Does exile affect activism and if so how? In this paper, the case of Egyptian activists exiled in England is taken as illustrative of processes typical of exiled activism. The case study draws on primary and secondary sources including a series of biographical interviews with exiled activists. The analysis compares activism in Egypt with exiled activism in England using the participants’ critical self-reflections to explain the mechanisms mediating the changes. Contrary to reasonable expectations that exile is a spontaneous response to a change in political context, the conditions for exile predate banishment and lie within the institutions of dictatorship which decertify activism. Decertification continues throughout the exile process as fear of repression becomes internalized within the movement. Within the sanctuary of the host country, a process of brokerage counteracts decertification expanding and modifying the exile repertoire.     

Union wage differentials and the effects of industry and local union density: Evidence from the 1980s

This study finds that the real union-nonunion wage differential has declined only slightly since 1985, a period of falling unionism. The study also finds that, in contrast to earlier research, local (geographic) union density positively affects union and nonunion wages. This paper has benefited from discussions with Bill Even and Barry Hirsch. The research support of the School of Business Administration Research Committee is greatly appreciated.     

Collective Bargaining and Alcoholism:

In this project 106 collective bargaining contracts were analyzed to identify union-management responses to the problem of alcoholism in the workplace. The original contracts were collected by the Bureau of Labor Statistics and published on microfiche by the Microfilming Corporation of America. The contracts in this set were executed between 1977 and 1982, and cover all private sector employers with over 900 employees in Michigan. The purpose of this study was to determine the present state of collective bargaining language as a basis for identifying how employers in a unionized setting handle the problem of alcoholism at the work site. The authors discovered that alcoholism is most frequently dealt with in the disciplinary procedure. Clauses dealing with insurance benefits are the next most frequent site. There is evidence of alcoholism increasingly becoming an area for labor-management cooperation. The paper concludcs with some suggestions as to how EAP practitioners can enhance the success of programs in a unionized setting.     

Twitter publics: how online political communities signaled electoral outcomes in the 2010 US house election

Online social networks are an important setting for understanding the intersection of online communities and offline political processes. This paper analyzes the different ways that people discuss elections on Twitter. Using data from a random sample totaling 113,985 tweets and 30,995 users, we examine the differences between users who employ various strategies to talk about US 2010 Congressional candidates. We show that users who simply include the text of a candidate's name in a message exhibit different behaviors than those who use platform-specific mechanisms. Users who employ free-text tend to have younger accounts, are less likely to be ‘verified’, and generate fewer messages about candidates. Furthermore, candidates’ share of the free-text Twitter public has a larger correlation with their vote tallies than @mentions or hashtags. This research has methodological implications for studying the dynamics between online discourse and offline behavior. Overall, our findings support the view that forms of communication that are more accessible are more indicative of broader social trends.     

Correlates of union membership and joining intentions in a unit of federal employees

Correlates of membership and joining intentions in the federal sector, where union representation is broadly available but membership is relatively low, are examined. Key independent variables — attitude toward joining, normative influence, perceived instrumentality of joining, union activism, and satisfaction with the union — are all positively correlated with both membership and joining intentions. In regression analyses, attitude toward joining predicted both membership and intentions. Union satisfaction and activism predicted membership, but normative influence and instrumentality did not; and normative influence and instrumentality predicted joining intentions, but union satisfaction and activism did not. Other important variables include: general attitude toward unions, which predicted both membership and intentions; membership in the previous union, which predicted intentions, but not membership; race, which predicted intentions, but not membership; satisfaction with pay, which predicted (negatively) joining intentions, but not membership; and satisfaction with fellow workers, which predicted membership, but not intentions. We attempt to explain why determinants of membership might differ from determinants of joining intentions. This research was supported by a grant from the John A. Walker College of Business, Appalachian State University. The authors gratefully acknowledge the helpful comments of Paul D. Geyer on an earlier draft of the paper.