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Consequences of Work Force Reduction: Some Employer and Union Evidence

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  • TERRY H. WAGAR

Abstract

Despite the popularity of work force cutbacks in the 1990s, large-scale empirical studies at the bargaining unit level are rare. I explore some of the consequences of permanent work force reduction using data from both employer and union respondents. About 56 percent of employer participants and 57 percent of local union officials reported a permanent reduction of bargaining unit employees. In comparing bargaining units that experienced a permanent reduction of union members, results obtained from both employers and union officials indicated a significant negative impact on overall employee satisfaction and labor climate. Additional analyses with union respondents revealed that the reduction of bargaining unit employees was also associated with a higher rate of grievances and absenteeism and poorer relations between union members and their supervisors.

Suggested Citation

  • Terry H. Wagar, 2001. "Consequences of Work Force Reduction: Some Employer and Union Evidence ," Journal of Labor Research, Transaction Publishers, vol. 22(4), pages 851-862, October.
    • Handle: RePEc:tra:jlabre:v:22:y:2001:i:4:p:851-862
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    Cited by:

    1. Muhammad Imran Malik & Dr. Mehboob Ahmad, 2011. "Lucky or Unlucky people: Layoff Survivors," Far East Journal of Psychology and Business, Far East Research Centre, vol. 2(2), pages 23-35, March.
    2. Vedrana Čikeš & Helga Maškarin Ribarić & Kristina Črnjar, 2018. "The Determinants and Outcomes of Absence Behavior: A Systematic Literature Review," Social Sciences, MDPI, vol. 7(8), pages 1-26, July.
    3. Taeyoung Yoo & Dong Kwan Jung & Donghyun Son & Reinhard Bachmann, 2023. "Who Initiates Layoffs and Affects Firm Performance? Conflict of Interests between Active Foreign Institutional Investors and Outside Directors," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, May.

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