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The Incidence and Outcomes of Industrial Action: New Evidence from the 2019 European Company Survey

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  • John T. Addison
  • Paulino Teixeira

Abstract

Using the 2019 ECS, we investigate the relationship between union organization, workplace representation, industrial relations quality and strike incidence. We also consider some six issues behind the most recent instances of industrial action or threatened industrial action and their outcomes. Strike incidence is found to be elevated in establishments where union density is higher and where workers are covered by mixed-level collective agreements. Distrust and strained workplace relationships are associated with increased strike incidence, and the converse for an employee-focused business strategy and heightened employee motivation. In discussing the outcomes of different types of industrial action or threatened industrial action specific to the establishment, a distinction is drawn between worker wins, worker retractions/losses, and win-win outcomes, where the default is unresolved outcomes. Higher union density is associated with worker wins, collective bargaining with balanced agreements, and there is now some suggestion that works councils may play a moderating role.

Suggested Citation

  • John T. Addison & Paulino Teixeira, 2022. "The Incidence and Outcomes of Industrial Action: New Evidence from the 2019 European Company Survey," CESifo Working Paper Series 9685, CESifo.
    • Handle: RePEc:ces:ceswps:_9685
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    References listed on IDEAS

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    1. John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2017. "Collective Bargaining and Innovation in Germany: A Case of Cooperative Industrial Relations?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 73-121, January.
    2. VAN DEN BERG, Annette & GRIFT, Yolanda & VAN WITTELOOSTUIJN, Arjen & BOONE, Christophe & VAN DER BREMPT, Olivier, 2013. "The effect of employee workplace representation on firm performance. A cross-country comparison within Europe," ACED Working Papers 2013016, University of Antwerp, Faculty of Business and Economics.
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    6. Bruce E. Kaufman, 2004. "What Unions Do: Insights from Economic Theory," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 351-382, July.
    7. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
    8. Addison, John T. & Teixeira, Paulino, 2019. "Strikes, employee workplace representation, unionism, and industrial relations quality in European establishments," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 109-133.
    9. Steffen Mueller & Jens Stegmaier, 2017. "The Dynamic Effects of Works Councils on Labour Productivity: First Evidence from Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 372-395, June.
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    11. Hogan, Chad, 2001. "Enforcement of Implicit Employment Contracts through Unionization," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 171-195, January.
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    13. VAN DEN BERG, Annette & GRIFT, Yolanda & VAN WITTELOOSTUIJN, Arjen & BOONE, Christophe & VAN DER BREMPT, Olivier, 2013. "The effect of employee workplace representation on firm performance. A cross-country comparison within Europe," Working Papers 2013008, University of Antwerp, Faculty of Business and Economics.
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    More about this item

    Keywords

    strikes; areas and outcomes of conflict; union organization; worker representation; employee-focused strategies; trust; quality of industrial relations;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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