Union Decline Research Articles

Union decline through extension of collective agreements?

AbstractThis study investigates the effects of the mandatory extension of collective agreements on union membership. This relationship is investigated using a difference‐in‐differences framework on the staggered industry‐ and county‐wide introduction of mandatory extension in Norway from 2005 to 2011. The introduction of mandatory extension was championed by labour and social partners and motivated by the EU enlargement of 2004 in response to increasing labour immigration. However, mandatory extension could lead to lower union membership through free‐rider behaviour. It is therefore a question of whether the cure is worse than the problem it is supposed to solve. The results show that mandatory extension had an overall negative effect on union density in the affected industries of about −2.7 percentage points. The effect varies between the different industries but is never positive. These findings give credence to the free‐rider hypothesis, where mandatory extension is expected to lead to lower union density because there is less incentive to become a union member when workers can obtain the benefits of the collective agreement without paying the union dues. In line with the theoretical expectations, the effect is stronger where the gap between collective wage and non‐union wage is largest. However, negative effects are also present where this wage gap is small, showing that the results are valid in different contexts.

Explaining Union Decline: Remaking Power Relations in the Pilbara Iron Ore Industry

How have scholars tried to explain marked union membership decline in the Global North, and how have they assessed consequent “union renewal” strategies? In this journal in 2020, Bowden argued that most accounts of unionism failed to explain decline, relied too much on state policy as causation and were too optimistic about those renewal strategies. One way to respond to these important general claims is to assess, as this article does, a striking and important local instance of decline and unsuccessful strategy – Pilbara unionism, once an archetype of mining workers’ power – and to do so over the entire history of an industry. In explaining the fall of the Pilbara mining unions, which for 20 years until 1986 had seemed so strong, “power resources” and geography itself were remade by capital in ways that were entwined with, but did not always rely on, state action. This argument recasts debate about decline in two ways: by drawing on a longer timeframe than is common in industrial relations scholarship and by adopting a more theoretically explicit, and inter-disciplinary, framing than is usual in the labour historiography addressing these issues. The explanation offered here shows how, after just 20 years of mining, union power in the Pilbara unravelled. Employer strategy, the precise nature and timing of state intervention, and the geographically textured nature of employer and union power explain the rise and fall of these unions.

Once more on the rank and file – union bureaucracy interplay: Mining unionism in Australia’s Pilbara region

The trade union bureaucracy debate has significant implications for both analysis and union strategy. Recently receiving renewed academic attention, this debate centres around whether there is a dichotomy between rank-and-file workers and full-time union officials, and whether these officials – the trade union bureaucracy – tend towards industrial conservatism. The case study of labour relations in the Pilbara iron ore industry in the north of Western Australia 1965–1986 enriches our analysis of the trade union bureaucracy by viewing its role in the class struggle over a number of decades, in varying contexts of union development, union power and union decline. Throughout this entire period, there was significant conflict between the bureaucracy and rank and file. The remoteness of the Pilbara region, and workers’ industrial militancy makes it an extreme case suited to unveiling insights on the nature of the trade union bureaucracy. The Australian focus broadens a largely British debate. This article also offers a greater consideration of the role of full-time shop stewards’ convenors than has occurred previously. Finally, the trade union bureaucracy theory illuminates our understanding of this period in Pilbara labour history.

A new labor movement? Assessing the worker upsurge in the contemporary U.S.

ABSTRACT This article explores the labor upsurge of the early 2020s and places it in an historical context. In the early 2020s, workers across the U.S. protested, organized, and walked out, part of an upsurge that produced remarkable results. There were union victories at some of the country’s best-known corporations, including Starbucks, Amazon, Google, Apple, and Trader Joe’s. Between 2021 and 2023, more than 360 Starbucks stores unionized, most through independent worker action. Over 8,000 workers also organized an Amazon warehouse in Staten Island, doing so with a grassroots union and a budget of just $120,000. Across the country, the number of strikes surged, petitions for National Labor Relations Board (NLRB) elections rose sharply, and union density increased for the first time in decades. Opinion polls also showed record levels of public support for unions. Rather than seeing the upsurge as new – as media accounts stressed – the article links it to longer-term trends, particularly many decades of bargaining givebacks, increasing income inequality, and long-term union decline. Across the U.S., workers reached their breaking point, and hit back. Short-term conditions – particularly the labor shortage produced by the pandemic – were important, but the upsurge also reflected longer-term grievances that built up over decades.

Employee beliefs about the consequences of a union default: Implications for support and intention to remain in union membership

Union decline and the ‘representation gap’ are two commonly recognised and interrelated phenomena. Numerous proposals have been made to solve this double-sided problem. One of the most radical is to conceive of a union default, where the default position is union membership. This article seeks to understand how employee beliefs about the consequences of union membership, both positive and negative, would influence whether (i) workers would support or oppose a union default, and (ii) workers would maintain membership once defaulted into it given the availability of an opt-out. The findings show that workers’ beliefs about the consequences of a union default have a major impact on whether they support or oppose a default and would stay in membership or opt out. The article draws out the implications for public policy makers seeking to introduce a union default.

Offshoring and the Decline of Unions

Offshoring and the Decline of Unions

The productivity puzzle and the decline of unions

This paper finds that rapid de-unionization can explain the sudden vanishing of the procyclicality of productivity in the U.S. during the 1980s, a phenomenon dubbed the ‘productivity puzzle’. Cross-sectional evidence from U.S. states and industries shows that a decline in union power led to a decrease in the cost of hiring and firing workers, which prompted firms to rely less on labor hoarding, making productivity less procyclical. In a model with endogenous worker effort, a decrease in employment adjustment cost by the amount implied by de-unionization explains a significant part of the observed decline in the procyclicality of productivity.

The impacts of U.S. right‐to‐work laws on free riding, unionization, and compensation

AbstractRight‐to‐work (RTW) laws are theorized to precipitate union decline by inducing free riding among union‐covered workers; however, this relationship has not been empirically explored. This paper uses recent policy variation and Current Population Survey (CPS) data to identify the impact of state RTW laws on union status (free riding, membership, and coverage), wages, and benefits among private and public sector workers. Doubly robust difference‐in‐difference estimates suggest RTW laws are associated with substantial increases in free riding, decreases in union membership, and decreases in union coverage. Thus, RTW laws weaken unions through combinations of increased free riding and decreased coverage, though effects vary by state and sector. While RTW laws are not associated with changes in wage differentials, state fixed effects estimates suggest that unions provide some excludable advantages to members in the face of RTW legislation, through higher earnings (union wage premium) and fringe benefits (union benefit premium).

The Effects of Import Competition on Unionization

We study direct and indirect effects of Chinese import competition on union membership in the United States, 1990–2014. Import competition in manufacturing induced a modest decline in unionization within manufacturing industries. The magnitude is small because unionized manufacturers competed in higher-quality product segments. Manufacturers in right-to-work states experienced more direct competition with low-quality Chinese imports. Outside of manufacturing, however, import competition causes an important increase in union membership, as less educated women shift away from retail and toward jobs in health care and education where unions are stronger. We calculate that Chinese imports prevented 26 percent of the union density decline that would have otherwise occurred. (JEL F14, F16, J16, J51, L60, P33)

Unions and Union Membership in New Zealand: Annual Review for 1994

This note reports our most recent survey of unions and union membership in New Zealand for the year ended 31 December 1994. It builds on our earlier surveys for the 31 December years for 1991, 1992 and 1993 (Harbridge and Hince, 1993a, 1993b; Harbridge, Hince and Honeybone. 1994). In last year's report, we suggested that union decline may have "bottomed out". The 1994 data does not support that suggestion. Unions have lost a further 33,000 members in the most recent year, while the number of unions operating has increased by 15.

Unions and moral economies: An investigation into cultural pathways linking union decline to rising income inequality, 1983–2018

Declines in union density explain a considerable portion of rising US inequality among unionized and non-unionized workers. However, how union density regulates non-union wages is mainly speculative. I test the moral economy hypothesis that union density reduces inequality, in part, by fostering egalitarian wage norms that regulate compensation practices and redistributive policies. Variance function regressions suggest that wage norms may explain 12% of union density decline effects on rising within-group wage inequality between 1983 and 2018. Findings provide support for the moral economy perspective and an empirical foundation for the causal relationship between unions and inequality.

The Right to Work and American Inequality

Labor historians describe Right to Work (RTW) as among the most consequential pushbacks against the early twentieth-century ascent of labor unions. Yet research on the economic consequences of RTW remains mixed, with nearly all research centered empirically and theoretically on the time surrounding RTW passage. In the current study, I use 41 waves of longitudinal data from the Panel Study of Income Dynamics between 1968 and 2019 to empirically and theoretically extend the mechanisms that link RTW and economic outcomes. First, following the vast majority of research on RTW, I show the demobilizing effects for labor following RTW passage: mean wages decline, wage inequality increases, and the union premium is halved in the middle and lower portion of the wage distribution. Second, I move theoretical focus beyond the time surrounding law enactment, arguing for a second-order effect whereby RTW institutionalizes a logic of polarized economic distributions and low labor power. To test this mechanism, I develop a novel strategy of comparison across respondents who are differentially mobile across state boundaries. I find individuals who cross RTW contexts experience a unique decline in mean wages and increase in wage variance, but this distinct trend can be explained by state-level institutional variation across RTW and non-RTW states. Thus, RTW is not only consequential in the periods around its passage, but also in establishing a long-standing, high-inequality regime. Results reveal multiple mechanisms by which RTW contributes to the long-run processes of union decline and broadly shared inequality growth.

Dynamics of unionism in the platform economy: the case of the food delivery sector in Bologna, Italy

AbstractIt is a characteristic of platform capitalism that struggles to re-embed digital platform work within institutionalised forms of employment have been set in motion by new labour actors (i.e. self-organised, grassroots unions). Contrary to the view that these new actors signify the decades-long decline of traditional unions, evidence increasingly highlights their continued relevance to the labour–capital relations of platform capitalism. We argue that dynamic interactions between ‘old’ and ‘new’ labour actors in platform capitalism are influenced by national union traditions that emerge more vividly when struggles to re-embed labour relations require the transition to more institutionalised forms of labour resistance. We develop this argument based on a longitudinal qualitative study of labour struggles in the food delivery sector in the city of Bologna, Italy. We pay particular attention to the dynamics of intra-labour actor relations that have unfolded in the sector across different temporally based events of contention in the city. As we illustrate, synergies between the two were prompted by the self-organised workers’ need to rely on partners with an ‘official’ status when re-embedding procedures required; yet, collaboration was also favoured by what we describe as a ‘posture of respect’ developed by the traditional union vis-à-vis the self-organised informal union, particularly with regard to their quest for autonomy from traditional union structures. We interpret this approach of the established labour actor in line with its traditional orientation as ‘class’ actor, whose actions look beyond the membership so as to expand solidarity to all workers, including in new productive (platform) sectors.

Thirty Years of Consanguineous Marriages in Pakistan

Almost half of all marriages in Pakistan are consanguineous. Despite its high prevalence, little is known about the change over time in consanguineous unions in Pakistan. Examining the patterns of the cousin marriages is particularly important given the substantial improvement in women’s education which is often associated with the decline in consanguineous unions across the world. Our analysis, based on four waves of nationally representative Pakistan Demographic and Health Surveys - PDHS (1990-91, 2006-07, 2012-13, and 2017-18), shows that the prevalence of consanguineous unions remains stable over time. Further, women’s education is negatively associated with cousin marriages. Hypergamous (husband is more educated than her wife) unions are more prevalent, but a consistent rise in educational hypogamy (wife is more educated than her husband) is observed during this time. The results show that consanguineous marriages are more likely to be hypogamous than non-consanguineous marriages. Moreover, contraceptive use is lower among women in consanguineous unions. An inverse relationship has been found between the mean fertility and cousin marriages. Women in consanguineous marriages are likely to have fewer children than women in non-consanguineous marriages. Overall, the results show that consanguinity patterns are stable, and there is no evidence that the societal changes such as improvement in women’s education and urbanization over time have led to a decline in cousin marriages in Pakistan.

Decomposing trends in educational homogamy and heterogamy – The case of Ireland

Employing Irish Census microdata, we analyze trends in educational homogamy and heterogamy between 1991 and 2016 and examine how they can be explained by concurrent trends in three theoretically relevant socio-demographic components – (a) educational attainment, (b) the educational gradient in marriage, and (c) educational assortative mating (i.e., non-random matching). Our study proposes a novel counterfactual decomposition method to estimate the contribution of each component to changing sorting outcomes in marriages. Findings indicate rising educational homogamy, an increase in non-traditional unions in which women partner ‘down’ in education, and a decline in traditional unions. Decomposition results suggest that these trends are predominantly attributable to changes in women's and men's educational attainment. Furthermore, changes in the educational gradient in marrying contributed to rising homogamy and the decline in traditional unions, a fact largely overlooked in previous research. Although assortative mating has also undergone changes, they barely contribute to trends in sorting outcomes.

STICKING WITH THE UNION? LABOR UNION MEMBERSHIP, WORKING CONDITIONS, AND POSTRETIREMENT HEALTH IN THE MIDWEST

Abstract American Employment experiences over the past five decades have been shaped by growing prevalence of bad jobs – those that are precarious and offer few pension or health insurance benefits – and a marked decline in unionization. Previous health research has highlighted the deleterious implications of bad jobs and yielded mixed or inconclusive findings about union membership. However, most of this research focused on working-age adults, and few studies have examined the long-term impacts of working conditions and union membership. We fill this gap via data from the Wisconsin Longitudinal Study – a sample of men and women who graduated from Wisconsin high schools in 1957 and have been followed through their working years, past retirement, and into oldest-old ages. We estimated regression models examining the impact of union participation in 1975 on subsequent self-rated health and depressive symptoms (measured in 1993, 2004, and 2011). Our findings suggest that union participation was associated with poorer self-rated health in 1993 (OR=0.67, 95% CI (0.48, 0.96)), with a stronger negative effect for more active union members (OR=0.58, 95% CI (0.36, 0.96)), even after controlling for socioeconomic status in childhood and adulthood. This effect dissipated by 2004, when most WLS participants were nearing retirement and further diminished by 2011, when participants were in their 70s. We found no significant effects of union activity on depressive symptoms. Job characteristics and the historical decline in the prevalence and power of unions over the cohort’s lifetime provide important contexts for interpreting these results.

Thirty Years of Consanguineous Marriages in Pakistan

Almost half of all marriages in Pakistan are consanguineous. Despite its high prevalence, little is known about the change over time in consanguineous unions in Pakistan. Examining the patterns of the cousin marriages is particularly important given the substantial improvement in women’s education which is often associated with the decline in consanguineous unions across the world. Our analysis, based on four waves of nationally representative Pakistan Demographic and Health Surveys - PDHS (1990-91, 2006-07, 2012-13, and 2017-18), shows that the prevalence of consanguineous unions remains stable over time. Further, women’s education is negatively associated with cousin marriages. Hypergamous (husband is more educated than her wife) unions are more prevalent, but a consistent rise in educational hypogamy (wife is more educated than her husband) is observed during this time. The results show that consanguineous marriages are more likely to be hypogamous than non-consanguineous marriages. Moreover, contraceptive use is lower among women in consanguineous unions. An inverse relationship has been found between the mean fertility and cousin marriages. Women in consanguineous marriages are likely to have fewer children than women in non-consanguineous marriages. Overall, the results show that consanguinity patterns are stable, and there is no evidence that the societal changes such as improvement in women’s education and urbanization over time have led to a decline in cousin marriages in Pakistan.

Caught between outreach and sustainability: The rise and decline of Dutch credit unions

This paper explores the history of Dutch credit unions (credietvereenigingen). Launched to provide SME credit, these credit unions gradually drifted away from their original aims, hereby increasingly targeting a wealthier echelon of clients at the expense of their poorer customers. In the end, they were squeezed out of business by new, government-supported SME banks and the big commercial banks. This study is devoted to understanding why this drift occurred and how this ultimately determined the development of these institutions. Thereby, it deepens our understanding of the similar challenges faced by present day social enterprises (most notably microcredit institutions) which may also succumb to mission drift, and hints to possible solutions in which such drift may be prevented.

Riot, Strike, Riot: The New Era of Uprisings

Riot, Strike, Riot: The New Era of Uprisings

Decomposing the Decline of Unions: Revisiting Sectoral and Regional Shifts

This study uses newly disaggregated National Labor Relations Board (NLRB) election data to revisit the theory that sectoral and regional shifts in economic activity contributed substantially to private-sector union decline in the United States. Unlike most studies, which focus on differential employment growth among union and non-union establishments, this article focuses on how such shifts may have affected organizational rates themselves. Improved data permit a shift-share decomposition that indicates that approximately 40% of the decline in union elections is in response to sectoral shifts, the majority attributable to changes within each sector. Moreover, in an update to Dickens and Leonard’s 1985 study, the author shows that declining organization rates since 1980 are responsible for a decline in union density of 5.4 percentage points.