Labor’s inequality of bargaining power: Changes over time and implications for public policy

A major justification for enacting the Wagner Act and encouraging collective bargaining was that in the wage-determination process individual workers suffer from an inequality of bargaining power vis-á-vis employers. This critical review of this justification examines the analytical meaning of the concept of an inequality of bargaining power, the factors responsible for this inequality, the change that has taken place in labor’s disadvantage since the 1930s, and the implications for national labor policy. It is concluded that some employers continue to have significant market power over wages but that the extent and degree of labor’s disadvantage in bargaining has diminished substantially since World War II. The implication is that the Wagner Act’s protection of the right to organize remains in the social interest but that the bargaining power of labor unions should be further circumscribed to preserve a balance of power in wage determination. The author thanks Paul Swiercz for helpful comments.     

Is collective bargaining a collective good?

This study argues that legislation imposes on collective bargaining an artificial collective goods characteristic as a legal property, which should be distinguished from collective goods in the economic sense. The law creates an artificial freerider problem. Congressional intent was to require compulsory unionism to the extent that all workers would be required to share in the expenses incurred by the union in the negotiation and administration of collective bargaining agreements. Recent court decisions have attempted to define the obligation of employees, employers, and labor unions in terms of this legislative intent.     

US and them: Job quality differences between natives and immigrants in Europe

Using microdata from the European Union Labour Force Survey (EU-LFS) and aggregate indicators of labour market institutions, this article compares the job quality of native and non-native workers across European countries and analyses the impact of the institutional settings on the job quality differential between both groups. The LFS is used to measure a job quality index for the period 2005–2017. We find that some immigrant groups fare worse than natives, the contribution of the “composition effect” to explain this differential is large, and the institutional framework affects the immigration gap in job quality. In particular, some labour market institutions (more centralized wage bargaining, stricter employment protection legislation) tend to be detrimental for immigrants relative to natives, while integration policies seem to work well in reducing these differences.     

A simultaneous-equations model of the relationship between public sector bargaining legislation and unionization

This paper estimates a simultaneous-equations model with public sector bargaining laws and union membership treated as jointly-determined variables. The extent of public sector unionization has a significant positive influence on the passage of prolabor bargaining legislation and bargaining legislation has strong, independent effects on the extent of public sector unionization. We gratefully acknowledge the research support provided by Minbo Kim and Parisun Chantonahom.     

The effect of type of union on member-nonmember wage differentials

The union-nonunion wage differential can be decomposed into bargaining and membership effects. While some analysts suggest that they are not separable and that bargaining power is a function of membership density, others argue that they are separable and that the former derives from monopoly power while the latter stems from socialization. Our results support the latter view. We derive estimates of bargaining and membership effects for workers covered by national, industrial, and craft union contracts as well as for all covered workers taken together. Since industrial and craft unions differ in structure and organization, we expect differences in the socialization effects among types of unions. It is clear from our results that union membership per se in each case gives a large positive wage advantage.     

The 2011 Industrial Relations Reform and Nominal Wage Adjustments in Greece

This study investigates nominal contractual base-wage adjustments in Greece associated with the 2011 industrial relations reform which re-defined the limits within which base wages could oscillate and allowed workers’ associations to negotiate for wages at the firm level. The assessment covers the period 2010–2013 and is based on information extracted from the universe of firm-level contracts signed in this period. We found that firm-level contracts increased dramatically shortly after the reform, now covering a larger pool of workers, especially in larger firms, and are associated with higher base-wage reductions in the post-reform period. At the firm level, wage reductions are higher when workers are represented by a workers’ association rather than a typical trade union. In addition, a heterogeneous effect is uncovered regarding the factors that shape base-wage adjustments (firm size, profitability, structure of bargaining body and aggregate unemployment) between new and traditional forms of workers’ representation in collective bargaining.     

State employee bargaining legislation

The authors test competing hypotheses drawn from the public versus private interest theories of regulation to determine the status of bargaining rights of state employees. N-chotomous probit is employed to predict legislation which is characterized as an ordinal scale ranging from prohibition to prescribed bargaining. The presence of voter coalitions rather than intent to remedy monopsonistic production inefficiency explains liberal legislation.     

Migration between imperfectly competitive economies

We study the role of bargaining as a barrier to migration in the equilibrium of a two-region world with imperfectly competitive labour markets. Equilibrium migration is jointly determined by relative labour market bargaining powers, productivity and costs of migration. If migrants complement host factors, higher migration generally benefits both source and host economies. An enhancement of the bargaining power of typically weak migrant workers in host regions improves welfare.     

Phased Retirement for Older Workers in Taiwan

Working part-time has become a popular option during transition from a full-time career job to full retirement among older workers all over the world. Five waves of The Survey of Health and Living Status of the Elderly in Taiwan, from 1989 to 2003, are used to study older workers?? part-time work behaviors. The data confirm that more than 20% of full-time older workers with at least 10?years of job tenure do not fully retire from their career jobs. Moreover, there exists a significant proportion of older workers who stay with their career jobs and work part-time. We found that due to pension regulations, public sector employees are less likely to stay with their long-term employers and use phased retirement options.     

Freedom of association and collective bargaining in the platform economy: A human rights-based approach and an ever-increasing mobilization of workers

This paper examines the exercise of the rights to freedom of association and collective bargaining by platform workers. It focuses on several significant developments involving the collective organization of platform workers worldwide, and considers the rights to freedom of association and collective bargaining as human rights. It contends that the shifting context of work has led to changes in modern workplaces, which, in turn, have generated a novel interest in the adoption of a human rights-based approach towards labour protection. This approach considers that all workers are entitled to rights, such as the right to collective bargaining, which derive from international human rights instruments.     

Part-time occupational mobility in the service industries: regulation, work commitment and occupational closure

Whether stereotypical perceptions of part‐time workers’ commitment to work are accurate is a matter of contention. Commentators such as Hakim (1996 ) suggest that full‐ and part‐time workers have qualitatively different orientations to work, while others ( Fagan 2001 ) argue that, as most women work full‐ and part‐time over the life course, such a view is overly static. This paper investigates firms’ structuring of part‐time work, focusing specifically upon the processes through which part‐time work becomes marginalized. It is argued here that the organisational context and use of part‐time work mediate managers’ and full‐time workers’ perceptions of part‐time workers’ commitment to work and together, these factors structure part‐time workers’ selection for career development. The paper argues for making conceptual distinctions between legislation, organisational policies and workplace practices in understanding patterns of change and, more importantly, continuity in the use and structuring of part‐time work. Furthermore it is argued that the stratification of part‐time work can be explained through processes of informal occupational closure.     

Union wages, rents, and skills in health care labor markets

We examine the effect of unions on the earnings of health care workers, with emphasis on the measurement and sources of union wage premiums. Using data constructed from the 1973 though 1994 Current Population Surveys, standard union premium estimates are found to be substantially lower among workers in health care than in other sectors of the economy, and to be smaller among higher skill than among lower skill occupational groups. Longitudinal analysis of workers switching union status, which controls for worker-specific skills, indicates a small impact of unions on earnings within both high and low skilled health care occupations. Evidence is found for small, but significant, union threat effects in health care labor markets. It has been argued that recent legal changes in bargaining unit determination should enhance union organizing and bargaining power. Although we cannot rule this out, such effects are not readily apparent in our data. The authors appreciate the assistance of David Macpherson, who helped develop the CPS data files used in the paper.     

Social workers as teacher consultants: Helping teachers in groups to meet special needs in ordinary schools

Abstract

The paper argues in favour of school-based consultation for teachers by psychodynamically informed social workers, in the light of increasing awareness and demands that every teacher should become able to respond appropriately to the many children in ordinary classrooms deemed to be in need of special understanding at some stage during their school career. The paper tries to show that to enable them to help children with special emotional difficulties in school, teachers need access to some of the expertise, principles and practices with which professionals outside the school system manage to meet such children's special needs; and that the skills and understanding of social workers would appear to be well adaptable to the requirements of such inter-professional consultancy, provided some basic conditions are understood. These conditions are highlighted, and illustrated by a case discussion.     

Monopsony and teachers’ salaries in Georgia

Does monopsony power in the labor market for teachers affect teachers’ salaries? Prior studies have found mixed evidence of monopsony effects in teacher labor markets. A major problem has been controlling for union wage effects, which potentially mask the wage-depressing effects of monopsony. We use data from the state of Georgia, one of the few states in the United States where no teacher bargaining takes place. We detect no evidence of lower average teacher salaries in less competitive labor markets. We also find limited evidence that salaries of beginning teachers may be about two percent lower in less competitive labor markets, but our findings are not robust with respect to our various measures of monopsony and labor market boundaries. We conclude that even in the absence of unions the effect of monopsony on teachers’ salaries appears to be very small.     

Mandatory agency shop laws as an explanation of Canada-U.S. union density divergence

X. Conclusion During a period of strength the Canadian labor movement was able to secure enduring legislation providing for their institutional protection. In the 1940s Justice Rand justified his decision by invoking the spirit underlying the operationalization of a collective bargaining regime. In the 1990s the Canadian Supreme Court continued this tradition by refusing to hollow out unions’ rights to a secure financial base and autonomy in decision making. Between the 1940s and the 1990s, the unions' voice was heard in legislatures throughout the country through the NDP. Canadian unions now benefit from, among other things, first-contract arbitration, job protection for striking workers, and a card process of union certification. Thus, although current Canadian attitudes towards unions show considerable detachment, the embeddedness of legal protections helps hold such challenges as RTW in Alberta at bay. During the same years, American labor was unable to translate its strength of numbers into gains in public policy: in fact, as union density peaked, legislation such as the Taft-Hartley Act and Landrum-Griffin Act eroded union institutional protections. An earlier version of this article appears as “Union Security in Canada,” in The Internal Governance and Organizational Effectiveness of Labor Unions, edited by S. Estreicher, H. C. Katz, and B. E. Kaufman, Kluwer Press. We are grateful for their permission to reproduce portions of the chapter. Comments from Dennis Nolan (University of South Carolina) and John Godard (University of Manitoba) are greatly appre-ciated. The article benefited from their excellent suggestions. Research assistance from Fred Jacques is acknowledged. We follow the Canadian spelling of “labour” for accuracy when it is used in citations, quotes, and titles.     

Leaving Science: Gender Differences in Career Continuity Following a Job Loss

This study investigates gender differences in the postdisplacement experience of nonacademic science and engineering (S&E) workers. Using a pooled sample created from the Displaced Worker Surveys conducted between 1994 and 2008, it finds that (1) this S&E work force is particularly vulnerable to job loss and potential career disruption; (2) displaced female S&E workers are more likely than comparable male workers to exit the work force, a gender difference that is conditional on and explained by marital and parental status; and (3) reemployed female S&E workers are also more likely to leave science for non‐S&E occupations, but this gender difference is limited to unmarried workers. A concluding section discusses the implications of these findings for interpreting gender differences in career outcomes.     

Self determination theory and employed job search

Self Determination Theory (SDT) predicts that employees who use controlled motivation to search for alternate (better) work are less successful than their counterparts who use autonomous motivation. Using Australian labour market data, we find strong support for SDT. We find that workers who face externally regulated pressures (pressure arising from involuntary part-time or casual labour contracts) to search for alternate employment are less likely to find better work, than workers who use autonomous motives to search for work. Our findings suggest that labour market policies trending towards ‘labour market flexibility/deregulation’ – which provide workers with controlled motives to search for work – will contribute to workers cycling through spells of insecure employment and possibly intermittent spells of unemployment with no realistic prospect of career development.     

Instable career paths among workers 45 and over: Insight gained from long-term career trajectories

The study presented in this article focused on the instable career paths of older workers. The study, which is based on the life course approach, had two objectives: 1) identify the main variables which, through their interactions, characterized end-of-career paths; 2) piece together, from the beginning of the career onward, the sequence of key events, transitions, and turning points in the career trajectories that preceded these paths. The results, based on an analysis of in-depth interviews with 32 Canadian workers 45 years and older, showed that these participants' particular career path was characterized by considerable interdependent precariousness whose effects accumulated and intensified as the workers aged. The results also show that this career path was preceded by two distinct career trajectories: one named “fragmented,” which was punctuated by discontinuity and breaks of all kinds, and the other called “severed,” which was characterized by the sudden loss of a career job. Finally, the link between the end-of-career path seen here and the trajectories that preceded it sheds at least some light on the processes that can lead to an instable end-of-career path. These processes were condensed in our discussion into two distinct career biographies.