Fringe benefits: The hidden costs of unionization and collective bargaining in corrections

Abstract

Public Sector Unionization is a phenomenon characterized by rapid growth. Many studies have found, however, that the pay differential between unionized and non-unionized public sector employees is relatively small. This study posits the theory that one possible explanation is that unionized public sector employees are making gains in an area where the cost of concessions is somewhat hidden. Specifically, that unionized public sector employees enjoy a substantial lead in number of fringe benefits. The public sector area chosen for study is that of corrections. A questionnaire was constructed and mailed to all 50 state correctional systems assessing whether or not employees received 35 fringe benefits. The fringe benefits are divided into five categories and reported in tabular form. In addition, the fringe benefits are examined as a composite index and a comparison is then made between unionized and non-unionized employees. The results clearly show that unionized correctional employees have a considerable advantage in the number of fringe benefits enjoyed.