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The Management of Pay as the Influence of Collective Bargaining Diminishes

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Author Info
W Brown
P Marginson
J Welsh

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Abstract

The management of pay in Britain has changed substantially in recent years. The paper starts with a theoretical discussion of the extent to which individual employers can exercise discretion in the management of their employees' pay. It then examines the ways in which pay is used to secure productive effort. An analysis of the influence of trade unions leads on to an examination of the diminishing influence of collective bargaining in British pay determination. The implications of this are discussed for employer pay strategies, within and between firms, and internationally. It concludes with the consequences of diminishing trade union influence for the distribution of pay.

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Publisher Info
Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp213.

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Date of creation: Sep 2001
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Handle: RePEc:cbr:cbrwps:wp213

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Web page: http://www.cbr.cam.ac.uk/

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Related research
Keywords: wage determination; collective bargaining; remuneration management; bargaining structure; income distribution; trade union effects; employer pay strategy;

Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. William Brown & Simon Deakin & David Nash & Sarah Oxenbridge, 2000. "The Employment Contract: From Collective Procedures to Individual Rights," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 38(4), pages 611-629, December. [Downloadable!] (restricted)
    Other versions:
  2. Stephen Machin, 2000. "Union Decline in Britain," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 38(4), pages 631-645, December. [Downloadable!] (restricted)
  3. Machin, Stephen, 1997. "The decline of labour market institutions and the rise in wage inequality in Britain," European Economic Review, Elsevier, vol. 41(3-5), pages 647-657, April. [Downloadable!] (restricted)
  4. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August. [Downloadable!] (restricted)
    Other versions:
  5. Stewart, M.B., 1989. "Union Wage Differentials, Product Market Influences And The Division Of Rents," The Warwick Economics Research Paper Series (TWERPS) 323, University of Warwick, Department of Economics.
    Other versions:
  6. Paul Marginson & Keith Sisson, 1998. "European Collective Bargaining: A Virtual Prospect?," Journal of Common Market Studies, Blackwell Publishing, vol. 36(4), pages 505-528, December. [Downloadable!] (restricted)
  7. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May. [Downloadable!] (restricted)
  8. David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Blanchflower, David G & Oswald, Andrew J & Garrett, Mario D, 1990. "Insider Power in Wage Determination," Economica, London School of Economics and Political Science, vol. 57(226), pages 143-70, May. [Downloadable!] (restricted)
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  11. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO. [Downloadable!]
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  12. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
  13. repec:fth:prinin:287 is not listed on IDEAS
  14. Weiss, Andrew & Landau, Henry J, 1984. "Wages, Hiring Standards, and Firm Size," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 477-99, October. [Downloadable!] (restricted)
  15. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-14, November. [Downloadable!] (restricted)
  16. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-39, May.
  17. Stewart, Mark B, 1991. "Union Wage Differentials in the Face of Changes in the Economic and Legal Environment," Economica, London School of Economics and Political Science, vol. 58(230), pages 155-72, May. [Downloadable!] (restricted)
  18. Stewart, Mark B, 1987. "Collective Bargaining Arrangements, Closed Shops and Relative Pay," Economic Journal, Royal Economic Society, vol. 97(385), pages 140-56, March. [Downloadable!] (restricted)
    Other versions:
  19. Nolan, Peter & Brown, William, 1983. "Competition and Workplace Wage Determination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 45(3), pages 269-87, August.
  20. Hodgson, Geoff, 1982. "Theoretical and Policy Implications of Variable Productivity," Cambridge Journal of Economics, Oxford University Press, vol. 6(3), pages 213-26, September.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Brown, W. & Ryan, P., 2003. "The Irrelevance of Trade Union Recognition? A Comparison of Two Matched Companies," Cambridge Working Papers in Economics 0323, Faculty of Economics, University of Cambridge. [Downloadable!]
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