IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v63y2010i4p585-605.html

First Contract Arbitration: Effects on Bargaining and Work Stoppages

Author

Listed:
  • Susan J. T. Johnson

Abstract

Newly certified unions often experience difficulty negotiating a first agreement. To remedy this, the Employee Free Choice Act proposes that the National Labor Relations Act provide for first contract arbitration (FCA). Using a panel of Canadian jurisdictions that have introduced FCA legislation at different times over several decades, the author addresses three questions: (1) How does this legislation affect the incidence of first agreement work stoppages? (2) Does FCA encourage or discourage collective bargaining in the negotiation of first agreements? (3) Does FCA influence the duration of first agreement work stoppages? The author finds that the presence of FCA legislation reduces first agreement work stoppage incidence by at least 50 percent, yet unions make use of FCA infrequently and first contracts are rarely imposed by third parties. Together these results suggest that FCA encourages collective bargaining by creating an incentive for the parties to bargain in good faith and negotiate an agreement. Finally, FCA legislation has no statistically significant impact on the duration of first agreement work stoppages.

Suggested Citation

  • Susan J. T. Johnson, 2010. "First Contract Arbitration: Effects on Bargaining and Work Stoppages," ILR Review, Cornell University, ILR School, vol. 63(4), pages 585-605, July.
    • Handle: RePEc:sae:ilrrev:v:63:y:2010:i:4:p:585-605
    DOI: 10.1177/001979391006300402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979391006300402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979391006300402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7, April.
    2. Freeman, Richard B, 1988. "Contraction and Expansion: The Divergence of Private Sector and Public Sector Unionism in the United States," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 63-88, Spring.
    3. Paul Duffy & Susan Johnson, 2009. "The Impact of Anti-Temporary Replacement Legislation on Work Stoppages: Empirical Evidence from Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 99-120, March.
    4. John-Paul Ferguson, 2008. "The Eyes of the Needles: A Sequential Model of Union Organizing Drives, 1999–2004," ILR Review, Cornell University, ILR School, vol. 62(1), pages 3-21, October.
    5. Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
    6. Card, David & Freeman, Richard B. (ed.), 1993. "Small Differences That Matter," National Bureau of Economic Research Books, University of Chicago Press, number 9780226092836, Febrero.
    7. William N. Cooke, 1985. "The Failure to Negotiate First Contracts: Determinants and Policy Implications," ILR Review, Cornell University, ILR School, vol. 38(2), pages 163-178, January.
    8. Susan Johnson, 2002. "Card Check or Mandatory Representation Vote? How the Type of Union Recognition Procedure Affects Union Certification Success," Economic Journal, Royal Economic Society, vol. 112(479), pages 344-361, April.
    9. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    10. William N. Cooke, 1983. "Determinants of the Outcomes of Union Certification Elections," ILR Review, Cornell University, ILR School, vol. 36(3), pages 402-414, April.
    11. Gunderson, Morley & Melino, Angelo, 1990. "The Effects of Public Policy on Strike Duration," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 295-316, July.
    12. Gunderson, Morley & Kervin, John & Reid, Frank, 1986. "Logit Estimates of Strike Incidence from Canadian Contract Data," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 257-276, April.
    13. Budd, John W., 2000. "The effect of strike replacement legislation on employment," Labour Economics, Elsevier, vol. 7(2), pages 225-247, March.
    14. John DiNardo & David S. Lee, 2004. "Economic Impacts of New Unionization on Private Sector Employers: 1984–2001," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1383-1441.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Scott Legree, Tammy Schirle, Mikal Skuterud, 2014. "The Effect of Labour Relations Laws on Union Density Rates: Evidence from Canadian Provinces," LCERPA Working Papers 0078, Laurier Centre for Economic Research and Policy Analysis, revised 08 Sep 2014.
    2. Chris Riddell, 2013. "Labor Law and Reaching a First Collective Agreement: Evidence From a Quasi-Experimental Set of Reforms in Ontario," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 702-736, July.
    3. Scott Legree & Tammy Schirle & Mikal Skuterud, 2017. "The Effect of Labor Relations Laws on Unionization Rates within the Labor Force: Evidence from the Canadian Provinces," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 605-639, October.
    4. Bradley R. Weinberg, 2021. "‘til Dissolution Do Us Part: (Re)Assessing the First Contract and Trial Marriage Goals of First Contract Arbitration in Ontario," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(1), pages 119-144, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Duffy & Susan Johnson, 2009. "The Impact of Anti-Temporary Replacement Legislation on Work Stoppages: Empirical Evidence from Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 99-120, March.
    2. Filippo Belloc, 2019. "Labor Conflict at the Workplace: Do Dismissal Regulations Matter?," Department of Economics University of Siena 806, Department of Economics, University of Siena.
    3. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2020. "Do Public Subsidies of Union Membership Increase Union Membership Rates?," DoQSS Working Papers 20-14, Quantitative Social Science - UCL Social Research Institute, University College London.
    4. Michele Campolieti & Robert Hebdon & Benjamin Dachis, 2014. "The Impact of Collective Bargaining Legislation on Strike Activity and Wage Settlements," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(3), pages 394-429, July.
    5. Belloc, Filippo, 2021. "Industrial actions and firing regimes: How deregulating worker “Exit” reshapes worker “Voice”," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 251-264.
    6. Henry S. Farber & Bruce Western, 2000. "Round Up The Usual Suspects: The Decline of Unions in The Private Sector, 1973-1998," Working Papers 816, Princeton University, Department of Economics, Industrial Relations Section..
    7. Michele Campolieti & Chris Riddell & Sara Slinn, 2007. "Labor Law Reform and the Role of Delay in Union Organizing: Empirical Evidence from Canada," ILR Review, Cornell University, ILR School, vol. 61(1), pages 32-58, October.
    8. Cramton, Peter & Tracy, Joseph, 1998. "The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 667-701, October.
    9. John W. Budd & Yijiang Wang, 2004. "Labor Policy and Investment: Evidence from Canada," ILR Review, Cornell University, ILR School, vol. 57(3), pages 386-401, April.
    10. Gürtzgen, Nicole & Garloff, Alfred, 2008. "Innovationen in den Rahmenbedingungen von Tarifverhandlungen: Endbericht zum Projekt," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110513.
    11. Min Bahadur Shrestha Ph. D. & Shashi Kant Chaudhary, 2014. "The Economic Cost of General Strikes in Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 26(1), pages 1-23, April.
    12. repec:nrb:wpaper:nrbwp202013 is not listed on IDEAS
    13. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2017. "Union Density, Productivity, and Wages," DoQSS Working Papers 17-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    14. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, IZA Network @ LISER.
    15. Henry S. Farber & Bruce Western, 2000. "Round Up The Usual Suspects: The Decline of Unions in The Private Sector, 1973-1998," Working Papers 816, Princeton University, Department of Economics, Industrial Relations Section..
    16. Michele Campolieti & Rafael Gomez & Morley Gunderson, 2013. "Managerial Hostility and Attitudes Towards Unions: A Canada-US Comparison," Journal of Labor Research, Springer, vol. 34(1), pages 99-119, March.
    17. Scott Legree & Tammy Schirle & Mikal Skuterud, 2017. "The Effect of Labor Relations Laws on Unionization Rates within the Labor Force: Evidence from the Canadian Provinces," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 605-639, October.
    18. John Budd & Yijiang Wang, "undated". "Labor Policy and Investment," Working Papers 0502, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    19. Dinlersoz, Emin & Greenwood, Jeremy & Hyatt, Henry R., 2014. "Who Do Unions Target? Unionization over the Life-Cycle of U.S. Businesses," IZA Discussion Papers 8416, Institute of Labor Economics (IZA).
    20. Sergi Jiménez-Martín & Jaume Garcia, 2010. "Initial offers and outcomes in wage bargaining: who wins?," Empirical Economics, Springer, vol. 39(3), pages 815-846, December.
    21. Henrys Farber, 2001. "Union Success in Representation Elections: Why Does Unit Size Matter?," ILR Review, Cornell University, ILR School, vol. 54(2), pages 329-348, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:63:y:2010:i:4:p:585-605. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.