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What Do Unions Do?: A Twenty-Year Perspective
Abstract
One of the best-known and most-quoted books ever written on labor unions is "What Do Unions Do?" by Richard Freeman and James Medoff. Published in 1984, the book proved to be a landmark because it provided the most comprehensive and statistically sophisticated empirical portrait of the economic and socio-political effects of unions, and a provocative conclusion that unions are on balance beneficial for the economy and society. The present volume represents a twentieth-anniversary retrospective and evaluation of "What Do Unions Do?" The objectives are threefold: to evaluate and critique the theory, evidence, and conclusions of Freeman and Medoff; to provide a comprehensive update of the theoretical and empirical literature on unions since the publication of their book; and to offer a balanced assessment and critique of the effects of unions on the economy and society. Toward this end, internationally recognized representatives of labor and management cover the gamut of subjects related to unions. Topics covered include the economic theory of unions; the history of economic thought on unions; the effect of unions on wages, benefits, capital investment, productivity, income inequality, dispute resolution, and job satisfaction; the performance of unions in an international perspective; the reasons for the decline of unions; and the future of unions. The volume concludes with a chapter by Richard Freeman in which he assesses the arguments and evidence presented in the other chapters and presents his evaluation of how "What Do Unions Do?" stands up in the light of twenty years of additional experience and research. This highly readable volume is a state-of-the-art survey by internationally recognized experts on the effects and future of labor unions. It will be the benchmark for years to come.
... For the unions this seems like a defensive approach. Freeman and Medoff (1984) and later Addison and Schnabel (2003), as well as Bennett and Kaufman (2007) have edited large collections of articles where Industrial Relations writers show how the trade unions hold knowledge and qualities that are difficult to replace by direct involvement systems. ...
Characteristics known from Human Resource Management have recently been re-introduced through terms such as high involvement workplace practices (Geary, 2003; Gill, 2009; Pil & MacDuffie, 1996). These work forms emphasize the integration of business and employee relations strategy, and labor-management cooperation for the achievement of organizational goals (Gollan & Davis, 2001). Most of this literature leaves out the unions and concentrates to a larger extent on direct involvement processes where the workers are seen as individuals (Boxall, Haynes, & Macky, 2007; Gomez, Bryson, & Willman, 2010; Kochan, Katz, & McKersie, 1986; Marchington & Wilkinson, 2000; Wilkinson & Dundon, 2010). Some writers have even indicated that the high involvement work forms are threatening union-management cooperation on workplaces, basically because different versions of involvement and participation has been incorporated as part of the organization’s structure and work practice, which again makes indirect participation through the union stewards less important (Wilkinson, 1998).
In an European context, collective participation remains significant in certain countries, notably Germany and Scandinavia (Nergaard, 2010; Wilkinson & Dundon, 2010). Heckscher (2001) indicates that the future form of unionism lies in union strategies much closer to productivity and labor-management cooperation than labor-management relations based on antagonism. He claims that the unions with the highest level of internal participation in recent years have not been militantly anti-capitalist, but rather have sought to link internal participation with deep involvement in management decision-making.
This study attempts to explore the role of the shop stewards in organizations using high involvement workplace practices. I have used theoretical approach found in the Industrial Relation field together with organizational studies in order to investigate the role the shop stewards develop in organizations using high involvement workplace practices.
This thesis is a result of an inductive-deductive process, where I have examined theory and research on both the role of the shop stewards in industrial companies and the use of high involvement workplace practices, parallel with collecting and analyzing the data material on the role of the shop stewards in such workplace practices. This is a qualitative study where I have used a number of different methods in order to illuminate the research question. Most of the data material in this study is collected through an Action Research project called PALU where four industrial companies participated. I also carried out interviews, and shadowed in two additional industrial companies.
The main research question is: In the context of labor-management cooperation, how can we understand the role of the shop steward in organizations using high involvement workplace practices?
... 1,2,[7][8][9] Mistreatment, long hours, poor compensation, and job-related stress may contribute to resident physician burnout. 2,10,11 Through collective bargaining and advocacy, labor unions can improve working conditions and employee benefits 12,13 and have been advocated as a means of improving resident well-being. [14][15][16][17] However, concerns have been raised that resident unions may reframe the student-educator relationship as adversarial, introduce nonmedical arbiters into decisions about clinical duties, and harm professionalism. ...
Importance
Labor unions are purported to improve working conditions; however, little evidence exists regarding the effect of resident physician unions.
Objective
To evaluate the association of resident unions with well-being, educational environment, salary, and benefits among surgical residents in the US.
Design, Setting, and Participants
This national cross-sectional survey study was based on a survey administered in January 2019 after the American Board of Surgery In-Training Examination (ABSITE). Clinically active residents at all nonmilitary US general surgery residency programs accredited by the American Council of Graduate Medical Education who completed the 2019 ABSITE were eligible for participation. Data were analyzed from December 5, 2020, to March 16, 2021.
Exposures
Presence of a general surgery resident labor union. Rates of labor union coverage among non–health care employees within a region were used as an instrumental variable (IV) for the presence of a labor union at a residency program.
Main Outcomes and Measures
The primary outcome was burnout, which was assessed using a modified version of the abbreviated Maslach Burnout Inventory and was defined as experiencing any symptom of depersonalization or emotional exhaustion at least weekly. Secondary outcomes included suicidality, measures of job satisfaction, duty hour violations, mistreatment, educational environment, salary, and benefits.
Results
A total of 5701 residents at 285 programs completed the pertinent survey questions (response rate, 85.6%), of whom 3219 (56.5%) were male, 3779 (66.3%) were White individuals, 449 (7.9%) were of Hispanic ethnicity, 4239 (74.4%) were married or in a relationship, and 1304 (22.9%) had or were expecting children. Among respondents, 690 residents were from 30 unionized programs (10.5% of programs). There was no difference in burnout for residents at unionized vs nonunionized programs (297 [43.0%] vs 2175 [43.4%]; odds ratio [OR], 0.92 [95% CI, 0.75-1.13]; IV difference in probability, 0.15 [95% CI, −0.11 to 0.42]). There were no significant differences in suicidality, job satisfaction, duty hour violations, mistreatment, educational environment, salary, or benefits except that unionized programs more frequently offered 4 weeks instead of 2 to 3 weeks of vacation (27 [93.1%] vs 52 [30.6%]; OR, 19.18 [95% CI, 3.92-93.81]; IV difference in probability, 0.77 [95% CI, 0.09-1.45]) and more frequently offered housing stipends (10 [38.5%] vs 9 [16.1%]; OR, 2.15 [95% CI, 0.58-7.95]; IV difference in probability, 0.62 [95% CI 0.04-1.20]).
Conclusions and Relevance
In this evaluation of surgical residency programs in the US, unionized programs offered improved vacation and housing stipend benefits, but resident unions were not associated with improved burnout, suicidality, job satisfaction, duty hour violations, mistreatment, educational environment, or salary.
... The Australian experience on management practices (see Green et al. 2009) has suggested that the deployment of people management practices is fairly restrictive given the high proportion of union membership in the firms' employee base. Ng and Maki (1994), Bennett and Kaufman (2011) and Kochan and Kimball (2019) found that unionized membership is correlated with more formal HR practices with a move away from performance-based payments system to a performance appraisal system. ...
While evidence exists for an association between people management practices (PMP), firm characteristics and lean manufacturing practices (LMP), there is limited research focusing on different sized firms. What is not understood is (1) what PMP bundles are chosen by different sized firms which adopt LMP, and (2) what firm characteristics play a role in explaining these choices. The empirical evidence is based on archival data sourced from the world management dataset comprising of 299 Australian and New Zealand manufacturing firms. Using path analysis and disaggregated data on a set of commonly adopted PMP, we test for six PMP, namely, instilling a talent mindset, promoting, rewarding, retaining and attracting high performance as well as removing poor performers; and identify PMP chosen by firms which have a lean manufacturing strategy (LMS) and that adopt LMP. We find that relatively smaller firms that adopt many LMP also chose removing poor performers and promoting high performers to complement their LMS. The education level of management in those same relatively smaller sized firms is found to be a key factor explaining this PMP bundle. Deeper inspection of the results reveals differences between smaller versus larger firms. The study contributes to lean and people management literature that helps identify bundles of PMP chosen by different sized enterprises to complement their lean manufacturing strategy and practices.
... The first is that unions continue to procure a wage premium for covered employees both in Anglo-Saxon countries (Blanchflower and Bryson, 2007) and in Continental European countries like France (Breda, 2015). Second, the negative correlation between unionization and workplace or firm performance, apparent in the 1970s and 1980s (Hirsch, 2007;Metcalf, 1989), had largely disappeared by the 1990s, at least in Britain where much of the research was conducted (Blanchflower and Bryson, 2009). ...
We exploit changes in tax subsidies for union members in Norway to identify the effects of changes in firm-level union density on productivity and wages. Increased deductions in taxable income for union members led to higher membership rates and contributed to a lower decline in union membership rates over time in Norway. Accounting for selection effects and the potential endogeneity of unionization, the results show that increasing union density at the firm level leads to a substantial increase in both productivity and wages. The wage effect is larger in more productive firms, consistent with rent-sharing models.
Importance
Labor unionization efforts have resurged in the US, and union membership has been shown to improve worker conditions in some industries. However, little is known about labor unionization membership and its economic effects across the health care workforce.
Objectives
To examine the prevalence of labor unionization among health care workers and its associations with pay, noncash benefits, and work hours.
Design, Setting, and Participants
This cross-sectional study was conducted using data from the Current Population Survey and Annual Social and Economic Supplement from 2009 through 2021. The US nationally representative, population-based household survey allowed for a sample of 14 298 self-identified health care workers (physicians and dentists, advanced practitioners, nurses, therapists, and technicians and support staff).
Exposures
Self-reported membership status or coverage in a labor union.
Main Outcomes and Measures
Prevalence and trend in labor unionization. Further comparisons included mean weekly pay, noncash benefits (pension or other retirement benefits; employer-sponsored, full premium–covered health insurance; and employer’s contribution to the worker’s health insurance plan), and work hours.
Results
The 14 298 respondents (81.5% women; 7.1% Asian, 12.0% Black, 8.5% Hispanic, 70.4% White individuals; mean [SD] age, 41.6 [13.4] years) included 1072 physicians and dentists, 981 advanced practitioners, 4931 nurses, 964 therapists, and 6350 technicians and support staff. After weighting, 13.2% (95% CI, 12.5% to 13.8%) of respondents reported union membership or coverage, with no significant trend from 2009 through 2021 ( P = .75). Among health care workers, those who were members of a racial or ethnic minority group (Asian, Black, or Hispanic individuals compared with White individuals) and those living in metropolitan areas were more likely to report being labor unionized. Reported unionization was associated with significantly higher reported weekly earnings ($1165 vs $1042; mean difference, $123 [95% CI, $88 to $157]; P < .001) and higher likelihood of having a pension or other retirement benefits at work (57.9% vs 43.4%; risk ratio [RR], 1.33 [95% CI, 1.26 to 1.41]; P < .001) and having employer-sponsored, full premium–covered health insurance (22.2% vs 16.5%; RR, 1.35 [95% CI, 1.17 to 1.53]; P < .001). Union members reported more work hours (37.4 vs 36.3; mean differences, 1.11 [95% CI, 0.46 to 1.75]; P < .001) per week. White workers reported mean weekly earnings that were significantly more than members of racial and ethnic minority groups among nonunionized workers ($1066 vs $1001; mean difference, $65 [95% CI, $40 to $91]; P < .001), but there was no significant difference between the 2 groups among unionized workers ($1157 vs $1170; mean difference, −$13 [95% CI, −$78 to $52]; P = .70).
Conclusions and Relevance
From 2009 through 2021, labor unionization among US health care workers remained low. Reported union membership or coverage was significantly associated with higher weekly earnings and better noncash benefits but greater number of weekly work hours.
An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment (Kornhauser, Dubin and Ross, 1954). In today`s business world, competition is the order of the day. Production, quality, profits and corporate social responsibility are critical areas where companies can improve competitive edge. To attain competitive edge, companies must first ensure cooperation and harmonious relationship between all stakeholders. The general aim of the study was to investigate the causes of industrial disputes in the garment factories in the Export Processing Zone (EPZ) Athi-River, Kenya. The study employed a descriptive research design to determine what caused the disputes and what the possible solutions were. The study population consisted of the shop stewards and human resource managers working at the four garment factories that were in operation at the time of the study. The research instrument used was a questionnaire administered to the respondents. It was established that working conditions, pay rates, terms of employment and employee relations were the main causes of the disputes. Weak trade union movement, inefficient and inadequate social security, lack of employment benefits, opportunities for training, promotion, trained personnel at the health service, short contract and low pay are the main problems encountered by those working at the EPZ. The study recommended that employee’s welfare and working conditions are important factors to be considered by any employer. Both supervisors and workers should work on their relationship and change attitude towards each other. The terms of employment should be looked into as many employees are unhappy with the terms of employment especially the short contracts and majority feel they are not recognized or awarded for their contribution to the organization. On the other hand, employees need to understand clearly the company policies, rules, regulations and procedures in place. This can be initiated by management providing employee with manuals or handbooks. There should also be clear channels of communication in the organization to enhance smooth operation, understanding and enhance healthy industrial relationships. Key words: industrial relations, industrial disputes, export processing zone, employee welfare and employee relations.
US unions have often been characterized as ‘exceptional’ in their weakness and conservatism compared to their Western European counterparts. American organized labor is associated with a ‘business unionism’ philosophy that assumes American workers are only pragmatic and materialistic, seeing their unions as vehicles for improving the terms and conditions of employment at their workplaces. Such an analysis omits the potential power of a belief that unions work to improve society. Applying an experimental vignette design based on a survey of over 1000 employed persons, this article examines whether ‘workplace instrumentality’ is the only motivation for workers to support unions. The authors consider the likelihood of voting yes in a union representation election to test the efficacy of two less studied predictors – perceiving unions as positively influencing society and perceiving them as facilitating workers’ voice in union policies and practices. Logistic regression shows that the most influential beliefs associated with union support were that unions improve terms and conditions of employment for represented workers (‘union instrumentality’), that unions positively influence society (‘prosocial unionism’), and that unions offer workers substantial influence on union policies and practices (‘worker say’). Researchers and union organizing campaigns should consider devoting greater attention to the social benefits of unionism and to union democracy.
Dedikodu çalışma ortamında huzursuzluk yaratmakta ve örgütlerde moral bozukluğuna sebep olmakta, dedikoduyu yapanlar ve dedikoduya konu olanların çalışmasını engellemesinin yanı sıra çalışma eforlarının düşmesine de yol açmaktadır. Yapılan araştırmalarda dedikodu ve etkilerini anlamanın önemli olduğu ve örgütsel dedikodunun rolünün örgütler, yöneticileri ve işgücü üzerindeki etkileri üzerine titizlikle yapılacak araştırmalara ihtiyaç duyulduğu belirtilmiş olmakla birlikte bu konunun araştırmalarda nadiren ele alındığı birçok araştırmacı tarafından vurgulanmıştır. Bu çalışma, literatürdeki bu boşluğu doldurarak örgütlerde dedikodunun, işyeri morali ve çalışma eforu üzerindeki etkisinin araştırılmasını amaçlamaktadır. Çalışmada öncelikle literatür taraması yapılarak kavramsal çerçeve oluşturulmuş ve genel kabul görmüş olan ölçeklerden anket formu hazırlanmıştır. Araştırma verileri İstanbul'da özel sektörde üretim alanında faaliyet gösteren on işletmeden kolayda örnekleme yöntemi ile 14 Ekim-22 Aralık 2019 tarihleri arasında toplanmış, en az üç yıldır aynı işyerinde çalışanlardan gelen eksiksiz doldurulmuş 397 anketten elde edilen veriler SPSS istatistik programı ile çözümlenmiş, elde edilen verilere güvenilirlik analizi, faktör analizi, korelasyon ve regresyon analizi yapılmış, hipotezler test edilmiştir. Araştırma sonuçları örgütlerde dedikodunun hem işyeri morali hem de çalışma eforu üzerinde negatif etkisi olduğunu, aynı zamanda işyeri moralinin örgütlerde dedikodu ve çalışma eforu arasındaki ilişkide düzenleyici etkisi olduğunu ortaya koymaktadır. Dedikodu hayatın bir parçası olduğu için ne yöneticiler ne de insan kaynakları departmanları örgütlerde dedikoduyu tamamen ortadan kaldıramasa da örgüt içindeki sağlam iletişim kanallarını kullanarak, çalışanlara dedikodunun potansiyel zararlarına dair eğitimler vererek ve dedikodu konusunda yaptırımlar içeren örgüt politikaları uygulayarak örgütte dedikoduyu yapan ve yayan kişilerin kontrol altına alınması ve engellenmesi adına adımlar atılabilmektedir.
(Gossip harms organizations due to the several negative consequences it causes in the work environment. It creates discomfort in the working environment and causes low morale in organizations. In addition to preventing those who gossip and those who are subject to gossip from working, it also leads to a decrease in the work effort of employees by the low morale it creates. Previous research has revealed that understanding gossip mechanism and its effects is important for organizational practitioners and there is a need for the development of a more rigorous analysis of the role of organizational gossip with reference to the effects it can have for the organization as a whole, its managers and its workforce. However, there is a lack of academic research addressing the gossip in organizations. This study aims to fill this gap by examining the effect of gossip in organizations on workplace morale and work effort. In the study, a conceptual framework was formed by searching the literature and a questionnaire was prepared by using well accepted scales. Data was collected from ten companies operating in manufacturing sector in Istanbul using convenience sampling method between October 14 th and December 22 nd , 2019. 397 fully filled questionnaires returned from employees, working at least for three years in the same company, have been analyzed with SPSS statistics program. Finally, reliability, factor, correlation and regression analysis were performed on the obtained data, and hypotheses were tested. The results reveal that gossip in organizations has a negative effect on both workplace morale and work effort, and additionally workplace morale has a moderating effect on the relationship between gossip in organizations and work effort.)
This study is among the first to explore the relationship between unionization and firms' productivity, defined as sales per employee, and profitability per employee in India. The Indian context is important given the structural changes in Indian economy post‐1991 (liberalization and movement from dirigisme to an open economy), the unique sociocultural context of Indian unions and growth and size of economy. The final dataset of the study consisted of 91 largest firms listed on the Bombay Stock Exchange in India. The data were collected from audited annual reports and analyzed using a modified Cobb–Douglas function. It was found that the degree of unionization, which is percentage of employees who were member of a trade union, had an overall positive impact on the firms' productivity. Contrary to the dominant view of private sector firms being more productive, we found empirical evidence for the effect of unionization on productivity being greater for public sector firms.
Vi benytter endringer i satsene for fagforeningsfradrag i Norge mellom 2001 og 2012 og administrative registerdata til å identifisere hvordan skattefradraget og nettoprisen for medlemskap påvirker sannsynligheten for å være medlem i en fagforening. Vi finner at økt subsidiering bidrar til økt medlemskapssannsynlighet, mens økte priser for medlemskap reduserer sannsynligheten for fagforeningsmedlemskap. Hvis fagforeningsfradraget ikke hadde endret seg siden 2001, ville den aggregerte organiseringsgraden i privat sektor ha vært 5 prosentpoeng lavere enn den faktisk er. Betydningen av fradraget er imidlertid vesentlig større for noen næringer, og da særlig for industrien og for varehandelen.
'This volume is the definitive word on the topic, and likely will remain so for some time. The editors have done a remarkable job of compiling a list of contributors that reads like a "Who's Who" on the topic, ensuring quality control and summarizing a daunting amount of material. Given the dramatic changes that have been occurring throughout the world with respect to trade unions, this is a timely and welcomed contribution.'- Morley Gunderson, University of Toronto, Canada.'A fine collection, written by the world's leading experts in this important area. If you want to know about what has been happening at the frontier of recent research on unions, this is the book for you.'- Andrew J. Oswald, University of Warwick, UK. This Handbook is an authoritative and invaluable reference tool, uniquely analysing the forces governing unionism, union behaviour and union impact from a variety of perspectives, both theoretical and empirical. The 14 chapters are written in an accessible style by acknowledged leading specialists from the fields of economics and industrial relations. They offer a truly international perspective on this important subject. © John T. Addison and Claus Schnabel 2003. All rights reserved.
Is Declining Unionization of the
- Richard U S Freeman
- Good
- Bad
Freeman, Richard. "Is Declining Unionization of the U.S. Good, Bad, or Irrelevant?" In Lawrence Mishel and Paula Voos, eds. Unions and Economic Competitiveness. Armonk, N.Y.: M.E. Sharpe, 1992, pp. 143-72. __ and James Medoff. What Do Unions Do? New York: Basic Books, 1984.
Is Declining Unionization of the U.S. Good, Bad, or Irrelevant
- Richard Freeman