Card check recognition: Resulting labor relations and investor reaction

Abstract

We present evidence regarding how a card check recognition process affects the labor relations climate during the period preceding recognition and that which immediately follows. Interviews with managers, interviews with union representatives, and surveys of workers indicate that card check typically results in a less prolonged, costly, and stressful recognition and negotiations process. Although the resulting contracts are often similar to those in other parts of a heavily unionized corporation, sometimes they reflect a different business context – and hence are somewhat more favorable to employers without being substantially less favorable to employees. This reality is reflected in the positive reaction of the U.S. stock markets to union recognition by an employer through a card check process. Employers make card check agreements primarily for business reasons, and investors respect their judgment as to the impact of such agreements on the bottom line.

Citation

Abraham, S.E., Eaton, A.E. and Voos, P.B. (2010), "Card check recognition: Resulting labor relations and investor reaction", Lewin, D., Kaufman, B.E. and Gollan, P.J. (Ed.) Advances in Industrial and Labor Relations (Advances in Industrial & Labor Relations, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 1-30. https://doi.org/10.1108/S0742-6186(2010)0000017004