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Unions and Establishment Performance: Evidence from the British Workplace Industrial/Employee Relations Surveys

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Author Info
Addison, John T. () (Department of Economics, Moore School of Business University of South Carolina, and IZA, Bonn)
Belfield, Clive R. (Teachers College, Columbia University)

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Abstract

An interesting aspect of British research on unions based on the Workplace Industrial/ Employment Relations Surveys has been the apparent shift in union impact on establishment performance in the decade of the 1990s compared with the 1980s – and the recent scramble to explain the phenomenon. In this contribution, we chart these changes along the dimensions of financial performance, labor productivity, employment, quits, absenteeism, industrial relations climate, and plant closings. Using the most recent workplace survey, we also investigate the controversial notion that union influence is positive where unions are strong and is negative where unions are weak. This notion, encountered in recent research in Britain (and Germany), emphasizes the benefits of the collective voice of unions, arguing that this voice is only 'heard' when the union is strong or a credible agent. We examine this contention for a fuller array of definitions of union influence and workplace performance measures. Overall, our discussion reveals some evidence that is consistent with reduced bargaining power in the wake of anti-union reform measures and heightened product market competition. On the other hand, there is little support for the recherché notion that stronger unions have a beneficial impact, yet weaker ones do not.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 455.

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Length: 39 pages
Date of creation: Mar 2002
Date of revision:
Handle: RePEc:iza:izadps:dp455

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Related research
Keywords: Union strength; hierarchy of effects; financial performance; labor productivity; employment change; quits; absenteeism; plant closings; employee attitudes;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

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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. Manning, Alan, 1993. "Pre-strike Ballots and Wage-Employment Bargaining," Oxford Economic Papers, Oxford University Press, vol. 45(3), pages 422-39, July. [Downloadable!] (restricted)
    Other versions:
  2. Stewart, Mark B, 1995. "Union Wage Differentials in an Era of Declining Unionization," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 143-66, May.
  3. Blanchflower, David G & Millward, Neil & Oswald, Andrew J, 1991. "Unionism and Employment Behaviour," Economic Journal, Royal Economic Society, vol. 101(407), pages 815-34, July. [Downloadable!] (restricted)
  4. Hübler, Olaf & Jirjahn, Uwe, 2001. "Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages," IZA Discussion Papers 322, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Stephen Machin, 2000. "Union Decline in Britain," CEP Discussion Papers dp0455, Centre for Economic Performance, LSE. [Downloadable!]
  6. McNabb, Robert & Whitfield, Keith, 1998. "The Impact of Financial Participation and Employee Involvement on Financial Performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 171-87, May. [Downloadable!] (restricted)
  7. Blanchflower, D-G, 1997. "Changes Over Time in Union Relative Wage Effects in Great Britain and the United States," Papers 15, Centre for Economic Performance & Institute of Economics.
    Other versions:
  8. Alex Bryson, 2002. "The Union Membership Wage Premium: An Analysis Using Propensity Score Matching," CEP Discussion Papers dp0530, Centre for Economic Performance, LSE. [Downloadable!]
  9. 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)
  10. Martin J. Conyon & Richard B. Freeman, 2001. "Shared Modes of Compensation and Firm Performance: UK Evidence," NBER Working Papers 8448, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Booth, Alison L & McCulloch, Andrew, 1999. "Redundancy Pay, Unions and Employment," Manchester School, University of Manchester, vol. 67(3), pages 346-66, June. [Downloadable!] (restricted)
  12. Machin, Stephen & Stewart, Mark, 1996. "Trade Unions and Financial Performance," Oxford Economic Papers, Oxford University Press, vol. 48(2), pages 213-41, April. [Downloadable!] (restricted)
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  13. Machin, Stephen J, 1991. "The Productivity Effects of Unionization and Firm Size in British Engineering Firms," Economica, London School of Economics and Political Science, vol. 58(232), pages 479-90, November. [Downloadable!] (restricted)
    Other versions:
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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. Addison, John T. & Teixeira, Paulino, 2004. "The Effect of Worker Representation on Employment Behavior in Germany: Another Case of -2.5%," IZA Discussion Papers 1188, Institute for the Study of Labor (IZA). [Downloadable!]
  2. John T. Addison & Paulino Teixeira, 2005. "The Effect of Works Councils on Employment Change," GEMF Working Papers 2005-06, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
  3. Addison, John T. & Belfield, Clive R., 2002. "Unions and Employment Growth: The One Constant?," IZA Discussion Papers 479, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Addison, John T. & Siebert, W. Stanley, 2002. "Changes in Collective Bargaining in the U.K," IZA Discussion Papers 562, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Addison, John T. & Belfield, Clive R., 2008. "Unions, Training, and Firm Performance," IZA Discussion Papers 3294, Institute for the Study of Labor (IZA). [Downloadable!]
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