The effects of gainsharing on grievance rates and absenteeism over time

We sought to better understand the long-term impact of gainsharing by analyzing longitudinal changes in two key indicators of workplace union-management relations: grievance rates and employee absenteeism. Using a seven and one-half year longitudinal data set and an interrupted time series design, we found that the introduction of a Scanlon-type gainsharing plan was followed by a gradual and permanent decline in both of these indicators. These results provide strong quantitative evidence for the ability of gainsharing to transform existing labor-management relations. Using qualitative data, we consider the relationship between labor relations outcomes and other plant-level performance improvements following the introduction of gainsharing in this case.