US Labour Relations in Transition: Emerging Strategies and Company Performance

Abstract

AbstractThis report examines strategic labour relations and operational changes pursued by large, highly unionized, US manufacturing companies over the 1975–86 period. Four fairly distinguishable strategies are identified as implemented across a sample of 105 companies. These strategies are characterized by various combinations of activities associated with union avoidance, deunionization and co‐operation. In addition to describing these strategies, we examine changes in company performance associated with these strategies for a subsample of 56 companies. It is found that, on the one hand, improvements in company performance are associated with extensive cooperative efforts across unionized facilities, but, on the other hand, they are also associated with the opening of non‐union facilities and the simultaneous closing of unionized facilities. In contrast, the closing of unionized facilities (but not non‐union facilities) and the decertification of unions are negatively associated with company performance.