This means many small business owners should not be overly concerned about possible changes in the law governing union organizing. Another study looked at the relationship between unionization and product quality in the auto industry. Doucouliagos, Chris Hristos and Patric Laroche. More than ever, workers will need to act together.
When an industry is characterized by many small employers, each firm can benefit from area-wide unionization that standardizes compensation across competing firms, stabilizing the industry.
Unions organizing small businesses in the service sector often defer negotiated wage increases until the majority of competing employers are also unionized, and give newly unionized firms several years to catch up to union contract levels.
In short, while I doubt that a new process of union formation would cause an explosion of union representation in small firms, if some small business sectors were to be organized because their employees are frustrated with current conditions and seek change, that could provide positive benefits for small businesses and their employees.
It is no accident that the prosperity and consumer boom of the s — a period of unprecedented middle class expansion, broad business growth, increased home ownership, rising consumer spending, and the shared expectatio n that a college education was within the reach of everyone and that the lives of our children would be better than our own — followed the greatest sustained expansion of unionization in American history.
What About Small Business? This has had substantial adverse effects on inequality, the wages of typical workers, and pension and health benefit coverage. The evidence from industrial relations studies does not support this myth.
Unionized employers also tend to shift to higher value-added goods and services in their product mix. Actually, there can be substantial benefits to small business from union representation. Putting more dollars into the pockets of working families stimulates the American economy — both in the short term and in the long run — because they spend such a high proportion of those dollars here.
This other aspect of inequality of incomes in the U. Card, David, Thomas Lemieux, and W. Greater unionization can contribute to that goal because wages and benefits for ordinary workers will rise and income inequality in the economy as a whole will be reduced.
Unfortunately, because of a series of changes in the interpretation of the law over time, employers are now able to insist that before collective bargaining can commence, employees must prove their support for their chosen bargaining representative through an election process that is so conflict-laden that it fails to fulfill the purpose of getting collective bargaining relationships off to a constructive beginning.
And in sectors in which there are union-supported apprenticeship programs, employers can take advantage of this source of highly-skilled labor. Unions, as institutions, and the members that form them are economically rational and do not pursue demands that force firms out of business.
Hence it is important that public policy not only makes it possible for workers to organize should they so desire, but also that the federal government provides a path to unionization that reduces conflict and gets the labor management relationship off to a good start.
Herz and Michael W.In this paper, meta-analysis and meta-regression analysis 37 was applied to the empirical literature exploring the association between unions 38 and productivity growth.
39 The main conclusion that can be drawn from this body of literature is that 40 taking all the studies together and for all time periods, the overall association 76 CHRIS. The Effect of Unions on Labor Productivity: A Meta-Analytic Review Chris Doucouliagos and Patrice Laroche Deakin University University of Nancy 2 France.
The impact of unions on productivity growth has received extensive attention from researchers in industrial relations and economics. Despite a voluminous literature, controversy continues regarding the effect of unions on productivity growth. In this paper, meta-analysis and metaregression analysis is used to quantify the association.
ABSTRACT. This article examines the impact of unions on the efficiency of establishments in the manufacturing industry by comparing the results from two different empirical strategies: stochastic frontier analysis (SFA) and meta-frontier analysis (MFA).
2/5. Combining all the estimates from the hundreds of studies, FDL obtain in their meta-analysis a partial correlation coefficient between trade unions and productivity that is positive but small (see column 3.
Indeed, the meta-analysis conducted by Doucouliagos and Laroche () shows that studies examining the link between union presence and productivity levels in the USA have generally found a positive relationship.Download