Search results

Purpose – East European ex-communist countries have now experienced nearly two decades of turbulent economic conditions and challenges resulting from the market transition. Since the early 1990s, there has been considerable decline in unionization throughout the region. This study uses information on union membership provided by four waves of the World Values Survey (WVS) to explain trends in unionization in East European ex-communist countries from 1990 to 2006.

Methodology/approach – We use random-effects and fixed-effects models to test predictions for three sets of explanations for cross-national and historical variation in unionization: industrialization, globalization, and institutions.

Findings – We find a degree of support for all three explanations of union decline. Overall, our analyses reveal the strongest support for industrialization and business cycle explanations. Inflation, unemployment, and urban population growth are all significant factors in shaping patterns of unionization in ex-communist East Europe. Our analyses show that aspects of economic and financial globalization have had significant, negative effects on unionization in the region. Manufacturing imports and foreign direct investment inflows appear to have undermined the position of domestic labor and contributed to declines in union membership.

Originality/value of the chapter – Successor and newly independent unions face the twin challenges of gaining public confidence as representatives of workers' interests, and withstanding increasing market pressures and conditions unfavorable for unionization. We provide evidence that without strong institutions to serve as buffers to external economic conditions, unionization levels in East European ex-communist countries are more open to market forces.

Purpose – The goal of this chapter is to explore whether variation in the distribution of union members across the income distribution affects the role of unions in redistributive politics.

Design/methodology/approach – The conceptual part of the study provides a theoretical motivation for disaggregating organized labor by income. The empirical part uses European Social Survey data for 15 West European countries 2006–2008 to describe the composition of union membership by income across countries and to explore, in a preliminary fashion, the implications of where union members are located in the income distribution for social protection and redistribution.

Findings – In most countries, workers with incomes above the median are better organized than workers below the median and the income of the median union member exceeds the income of the median voter. The political implications of the overrepresentation of relatively well-off workers depend on the mechanism of preference aggregation within unions and the influence of unions in the policymaking process. While leaving a thorough examination of these issues for future research, we present descriptive regression results suggesting that the membership composition of unions by income is related to income inequality and redistribution but not social insurance.

Originality/value of paper – This is the first comparative study to map the distribution of union members across the income distribution and to examine the implications of compositional variation by income for redistributive politics.

This paper uses two complementary approaches to estimate the effect of right-to-work (RTW) laws on wages and unionization rates. The first approach uses an event study design to analyze the impact of the adoption of RTW laws in five US states since 2011. The second approach relies on a differential exposure design that exploits the differential impact of RTW laws on industries with high unionization rates relative to industries with low unionization rates. Both approaches indicate that RTW laws lower wages and unionization rates. Under the assumption that RTW laws only affect wages by lowering the unionization rate, RTW can be used as an instrumental variable (IV) to estimate the causal effect of unions on wages. In our preferred specification based on the differential exposure design, the IV estimate of the effect of unions on log wages is 0.35, which substantially exceeds the corresponding OLS estimate of 0.16. This large wage effect suggests that RTW may also directly affect wages due to a reduced union threat effect.

Small business owners require objective solutions to deal with threats of labour unionisation. This study aims to centre on a novel exploration for improving the leadership acumen of small business owners to address labour unionisation. Specifically, small business owners need a theoretical framework that uses best practices from human resource management (HRM) and industrial relations to provide solutions.

The design, methodology and approach reflect post-modernist epistemological and ontological perspectives for conducting systematic literature reviews. A systematic literature review revealed the relationship between small business owners’ leadership, positive industrial relations and HRM policies and procedures. To identify relevant studies in the review, the utilisation of several databases (EBSCO Database, including PsycINFO and Psych studies; Web of Science) and a mix of ranked journals from entrepreneurship, human resources, leadership and organisational behaviour.

The findings and results in this paper reflect the purpose, methodology and literature analysis culminating in 162,132,000 peer-reviewed studies. A total of 142 peer-reviewed studies met criterion for review. For example, the purpose of this review focused on labour unionisation mitigation for small businesses and HRM solutions. In doing so, the methodology allowed for identification of a novel research topic (i.e. how small business owners mitigate labour unionisation) worthy of further investigation. The sparse findings on labour unionisation mitigation represent small business owners' reticence in creating HRM policies and procedures.

This study contributes research implications for theory and practice by offering small business owners a theoretical framework to address labour unionisation. The framework, centring on HRM solutions, is grounded in social exchange theory to address the novel topic of labour unionisation mitigation in small businesses. This study results suggest that HRM solutions for small business owners provide competitive advantages for employee job satisfaction through a holistic industrial relations approach. In future research, examining other issues discussed in this study can influence the understanding of the relationship between small business owners and industrial relations to increase employee job satisfaction.

This article aims to study unionisation of foreign companies in China and to evaluate its effectiveness on representing labour rights and interests, so as to explore the relationships between the Chinese unions and other industrial relations actors.

The article is based on in‐depth interview of key stakeholders from national, regional and company trade unions, as well as company management personnel. An archive study of union and company files is also conducted.

The Chinese trade union has realised that its interests stem from both the increase of membership dues and expansion of the membership base. Unionisation in transnational corporations (TNCs) is a key approach to achieve the interests of the union, which conducts grassroots mobilisation to counteract non‐operative companies but turns a blind eye on labour interest violations in collaborative firms. From the aspect of the union, the effectiveness of unionisation depends on raising its power leverage by affording fewer duties for the workers. Labour rights and workers' demands are not the structural concern of unionisation in TNCs.

The article challenges the research framework about Chinese unionism, which mainly emphasises a state‐union relationship or draws a corporatism perspective. The article concludes that the power relationship between the union and firm has acted as the key theme of the power struggle among industrial relations actors of China.

Relying on an international panel data set, the purpose of this paper is to quantify the economic impact of labor unionization on corporate financial performance.

Static panel regression analysis is performed for a firm-level multinational data set to elucidate the postulated empirical relationships between employee unionization and corporate performance. The transmission mechanisms intermediating the studied effects are discussed and operationalized.

The empirical evidence demonstrates that firms with a higher level of employee unionization spend more on wages and labor-related expenses. The concomitant downside of higher resource extraction by unions is a lower rate of net employment creation and a higher possibility of redundancy layoffs.

Overall, the authors demonstrate that by creating a credible threat of employee disobedience manifested through strikes and internal wage disputes, labor unions remain an effective mechanism of increasing employees’ bargaining power. Despite the discovered weak negative associative link between the degree of unionization and corporate financial performance, the authors perceive the overall evidence to be inconclusive on this matter.

Construction trade unions have been a vital force in improving the job standards and wellbeing of trade workers. However, the union membership in the construction industry has dropped by half between 1983 and 2017. The objective of this study is to identify and assess the controlling factors of construction electrical trade unionization in the United States.

The study involved four main steps. Literature review and industry townhall meetings were conducted to identify the electrical trade unionization factors. A new unionization trend metric was developed using available union market share data to quantify the growth and decline of local unions. Mixed-mode surveying was used to collect questionnaire and interview data on the unionization factors in different local units of the electrical trade union. Finally, the survey data from the questionnaire and interviews were merged and their correlation with the unionization trend data was assessed.

The study found that the unionization of this specialty trade is dependent on increasing the crew ratio, expanding the non-apprenticeship union membership program, organizing larger contractors, and continuing the union focus on public and heavy industrial projects.

The study contributes to the construction management body of knowledge by providing a data-driven industry-wide assessment of the factors that affect electrical construction unionization. The study advances the understanding of construction trade unions by narrowing the theory-practice knowledge gap, illustrating the use of macro quantitative empirical research methods, and developing a new unionization trend metric.

The present study seeks to trace the unionization process of a global top 10 video game company (Company N) in which workers formed the first enterprise union in South Korea's game sector. Drawing upon the analytical framework of Kelly's (1998) mobilization theory, the authors investigated what motivated workers to form a union and what factors facilitated unionization.

This study used a qualitative research method on a single case study basis. The authors collected 41 in-depth interviews with game developers, full-time union staff from the case company and union leaders in their affiliated union, as well as game journalists, labour attorneys, and human resource professionals in the video game industry. The authors had their original data supplemented and triangulated by archival data including union letters and other documents and media reports. They analysed the data using computer-assisted qualitative data analysis software (CAQDAS).

There are three key findings. First, in the game sector, a high barrier against unionization exists, arising from industry characteristics such as a project-based work system, high mobility, reputation-based hiring, meritocracy, and a continuous influx of game-loving young developers. Hence, although the time was ripe for worker activism, latent grievances failed to be converted into real collective mobilization, resulting in non-organized workplaces for the past decades. Second, the mandatory labour-management negotiations arising from a legal change acted as a key catalyst for unionization at Company N. The newly elected three employee representatives came to identify and develop their own collective interests through the direct experience of negotiations, which greatly augmented their negative emotions and improved their legal consciousness. These three representatives could identify numerous deep-rooted problems, attribute these problems to their employer, and realize that they are ordinary salaried workers different from their employer. Going through the three-month negotiation and post-negotiation period, a set of ordinary game developers transformed themselves into natural union leaders who started a union in the game industry, which was traditionally non-organized. Third, various layers of external factors, such as a sister union, the upper umbrella union, the changed socio-political atmosphere following the candlelight protests for presidential impeachment, and the improved union image facilitated the unionization at Company N.

This study offers practical implications to governments, union activists, and employers in the game sector and more broadly in the tech industry, where labour-management conflicts are escalating across the globe.

Our study of a rare unionization event in the difficult game sector offers a nuanced understanding of mobilization and its process. Theoretically, by introducing the dynamic process of natural leader emergence and spontaneous union formation in a young industry where neither pre-existing leadership nor extant union influence exists, this study suggests that the mobilization process is more complex and variegated than suggested by Kelly's study and subsequent studies. Therefore, this study can advance the current discussion of mobilization mechanisms in the field of industrial relations. Our study also contributes to current research by introducing collective mobilization in a new context, i.e. the young, dynamic game industry in a non-Western country, which is a context that has been under-studied thus far.

This study aims to investigate the nature of employee associations (EAs) and whether the EAs function as a collective voice similar to enterprise unions in Japanese small- and medium-sized enterprises by clarifying the differences in the determinants and effects between EAs and unions.

The authors analyze 2,440 Japanese small- and medium-sized firms for determinants of unions and EAs. Using the bivariate probit model, the authors examine whether EAs complement (a way station to unionization) or substitute for (dampening the desire for unionization) traditional unionization. Furthermore, the effects of EAs and unions on voluntary employee turnover rates are compared.

The authors' findings regarding EAs are as follows: (1) although owner-managers are averse to both unions and EAs, owner-managers are not as averse to EAs as to unions; (2) EAs reduce the turnover rate to the same extent as unions do and (3) EAs are voice institutions that are less affected by the influence of unions.

The limitations of this study are as follows: (1) the dataset is slightly outdated; (2) due to the absence of panel data, the authors could not capture unobserved time-invariant factors that are the primary sources of endogeneity and (3) to overcome this vulnerability, the authors were able to control for the characteristics of management but not for the characteristics of employees because of a lack of information.

This study clarifies that non-union employee representation (NER) has the unique feature of being neither complementary nor substitutive to unions in Japan's industrial relations. EAs are organized not for union avoidance by employers, but voluntarily by employees without the aim of unionization. The associations have the same function as unions in reducing the turnover rate by resolving employees' grievances as entities independent from management.

Unionization is generally thought to improve employee welfare through higher compensation and benefits. However, managers of unionized firms have incentives to manage earnings downward to avoid sharing rents with unionized workers, which may explain why empirical findings on the association between unionization and employee compensation are mixed. This paper develops an analytical model incorporating earnings management into the relationship between newly unionized firms and employee compensation.

The authors develop an analytical model that relies on Nash bargaining theory and signal jamming (Stein, 1989; Fischer and Verrecchia, 2000; Dye and Sridhar, 2004) and model a setting where newly unionized workers' collective bargaining power increases substantially. The authors' model analyzes the relationship between newly unionized firms and employee wages and benefits while incorporating firms' incentives to engage in earnings management.

The authors find that newly unionized firms are more likely to engage in income-decreasing earnings management to avoid paying higher salaries and wages to workers. Further, the authors find that this association is more pronounced when (1) the correlation of firms' earnings across periods is higher, (2) the cost of earnings management is lower and (3) firms' earnings are more volatile.

This is the first paper to analytically model the effect of new unionization on firms' earnings management and workers' welfare. The authors' model offers new cross-sectional predictions that have not been tested in the prior literature. Specifically, the authors show that newly unionized firms are more likely to engage in income-decreasing earnings management; when earnings are more highly correlated, the cost of earnings management is lower and earnings are more volatile. The authors' findings may be relevant to regulators and policymakers.