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The Impact of Unions on Workplace Dynamics and Economic Growth

This session explores the multifaceted role of unions within the context of industrial relations. We will discuss the positive effects, such as the voice effect, shock effect, increased job security, and loyalty, as well as negative consequences including heightened employer-employee conflict, potential wage inflation, and decreased management autonomy. Empirical evidence will be reviewed regarding productivity outcomes and compensation trends. Additionally, union density will be examined in relation to GDP, providing insights into the overall economic implications of union presence in the labor market.

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The Impact of Unions on Workplace Dynamics and Economic Growth

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  1. What Do Unions Do? COMM 381 Industrial Relations Week 1 Dr. S. Walsworth Walsworth, COMM 381

  2. Lecture Agenda The Union Effect • Measurements • Positive (Voice effect and Shock effect) • Negative Employer Effects • Productivity • Profits • Innovation • Employment growth Employee Effect • Compensation • Job satisfaction Walsworth, COMM 381

  3. Union Density and GDP Measures Walsworth, COMM 381

  4. Union Density and GDP in SK

  5. The Union Effect: Positive Effect • Voice Effect • Shock Effect • Increased workplace loyalty • Increased job security Walsworth, COMM 381

  6. The Union Effect: Negative Effect • Union man first – employee/management conflict • Higher wages • Lower profits • Lower investments • Restricted growth • Reduced management autonomy • Increased protection for poor performers • Decreased merit incentive Walsworth, COMM 381

  7. Employer Effects: Empirical Evidence • Productivity: mixed results, but generally not believed to match extra union cost Walsworth, COMM 381

  8. Employee Effect • Wage premium • Job security • Next week we get into the History of the Labour Movement

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