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The Employment of Temporary Agency Workers in the UK: With or Against the Trade Unions?

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  • Böheim, René

    ()
    (University of Linz)

  • Zweimüller, Martina

    ()
    (University of Linz)

Abstract

A firm's decision to employ agency workers may be perceived as a replacement of directly employed workers or as way to curb union power, which trade unions would oppose. Alternatively, trade unions may encourage the (temporary) employment of agency workers in a firm, if they manage to bargain higher wages for their members. We estimate the relationship between hiring agency workers and trade union activity at the workplace, in particular, the type of collective bargaining agreements. We use British data from the Workplace Employment Relations Surveys (WERS) of 1998 and 2004. The empirical association between the employment of agency workers and union strength is weak, but positive. Furthermore, workplaces with collective bargaining have lower wages in the presence of agency workers, suggesting that agency workers are hired against the unions.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4492.

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Length: 25 pages
Date of creation: Oct 2009
Date of revision:
Publication status: published in: Economica, 2013, 80 (317), 65–95
Handle: RePEc:iza:izadps:dp4492

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Keywords: Workplace Employment Relations Survey; flexibility; collective bargaining; trade union; work agency;

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  1. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521468398.
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Cited by:
  1. Salvatori, Andrea, 2011. "Union Threat and Non-Union Employment: A Natural Experiment on the Use of Temporary Employment in British Firms," IZA Discussion Papers 5574, Institute for the Study of Labor (IZA).

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