Sector Unions Research Articles

PROTECTION, INVOLUNTARY SELF-EMPLOYMENT AND WELFARE

A small open economy operates with a unionized import-competing sector and an informal “self-employed” sector. Productivity varies across people in the informal sector. The full-employment structure accommodates “underemployment or involuntary self-employment” in the flexible-wage informal sector. Protection increases the cost of capital and may increase the set of people who are involuntarily employed in the informal sector. Even if one ignores the consumption distortion effect of a tariff, the tariff may fail to be second-best because it may raise underemployment. Our results on tariff-reform are consistent with some recent empirical evidence.

What Is Best for Workers? The Implications of Workplace and Human Resource Management Practices Revisited

Drawing on a 2003–2004 random household telephone survey of 750 Canadian workers, I explore the implications of work and human resource (HR) practices for six aspects of the quality of working life. I find “traditional” HR practices, associated with the bureaucratic model predominant after World War II and with union representation, to have strong positive implications for workers. Participative workplace practices also have strong positive implications, although these are largely limited to information sharing in the union sector. The actual organization of work (e.g., teams), contingent pay, and “new” HR practices, associated with the “new” HRM of the 1980s, all make little difference. Comparison of these findings with those from a comparable 1998 survey of 508 Canadian workers and a parallel 2003 survey of 450 English workers suggest, however, that the implications of work and HR practices may be historically and institutionally contingent and thus should be interpreted using a historical/institutional perspective.

Moldovan employment relations: “path dependency”?

Purpose – The paper aims to examine the theory that trade unions' functions in a transitional economy are characterised by “path dependency”.Design/methodology/approach – The research is based on case studies of employment relations in enterprises operating in Moldova. The approach is realist (critical materialism). An ethnographic approach is taken to analysing social relations in three locally and foreign‐owned companies in the clothing sector. The case studies explore union responses to managerially driven re‐structuring.Findings – The research established that these forms of trade unionism exhibit considerable heterogeneity within continued commitment to their welfare functions. This may indicate that the “integrating collectivist” form does not presage a new “path” for Moldovan trade unionism but does demonstrate the bounded diversity within the existing paradigm.Research limitations/implications – The research studies the unionised sector. Future research might look into non‐unionised Greenfield sit...

Do Strikes Kill? Evidence from New York State

Hospitals now represent one of the largest union sectors of the US economy, and there is particular concern about the impact of strikes on patient welfare. We analyze the effects of nurses' strikes in hospitals on patient outcomes in New York State. Controlling for hospital specific heterogeneity, the results show that nurses' strikes increase in-hospital mortality by 18.3 percent and 30-day readmission by 5.7 percent for patients admitted during a strike, with little change in patient demographics, disease severity or treatment intensity. The results suggest that hospitals functioning during nurses' strikes do so at a lower quality of patient care. (JEL H75, I11, I12, J52)

Health Insurance and Worker Retention in the Construction Industry

Using samples of blue collar construction workers from the 1996 and 2001 SIPP, a shared frailty survival model shows that controlling for wages, occupational and demographic factors, both portable union and nonportable nonunion employer-provided health insurance increase the probability of worker retention within the construction industry. Portable union health insurance increases the probability of worker-industry retention by 30 to 41% compared to 13 to 18% for nonunion employer-provided insurance. Our research suggests that by encouraging industry retention, health insurance preserves and encourages the accumulation of human capital in a turbulent industry with high firm-and-industry-labor turnover and also may reduce worker disabilities by immediately treating medical problems. Furthermore, in the union sector of construction where health insurance is portable across signatory contractors, the problem of job-lock inefficiencies is reduced.

Anarchism in the catalan-speaking countries: between syndicalism and propaganda (1868-1931)

This text surveys the course of the anarchist movement in the Catalan-speaking lands from their introduction as part of the Democratic Revolution of September 1868 until the fall of the Primo de Rivera dictatorship. Anarchism was spread by workers to defend worker societarianism and had a trajectory within the ranks of federal republicanism. This characteristic gave it connotations that would remain with it forever: a relationship with republicanism and the primacy of the syndicalist over the anarchist content. It penetrated workers' societies and ended up becoming the most powerful hub of anarcho-syndicalism in the world. In a twofold history, both highly pragmatic union sectors and more radical thinkers without a societarian tradition survived. In parallel, convinced of the value of education and knowledge, the anarchists struggled to imbue themselves with knowledge, and they developed their own culture which defined them as a group.

Public and Private Sector Wages Interactions in a General Equilibrium Model

This paper develops a dynamic general equilibrium model in which the public and the private sector interact in the labor market. Previous studies that analyze the labor market effects of public sector employment and wages have mostly assumed exogenous rules for public wage and public employment. We show that theories that equalize wages with marginal products in the private sector can rationalize the interaction of public and private sector wages when extended to accommodate a non-trivial government sector/public sector union that endogenously determines public employment and wages. Our model suggests a positive correlation between public and private sector wages. Any increase in tax revenues, coupled with the existence of a positive public-private sector wage gap, makes working in the public sector an attractive option. Thus, a positive neutral productivity shock increases public and private sector wages. More interestingly, even a private-sector specific productivity shock spills-over to the public sector, increasing public wages. These facts lend some support to the wage leading role of the private sector. Nevertheless, at the same time, a positive shock to public sector wages would lead to an increase in private sector wages, via the flow of workers from the private to the public sector.

Unions, competition and international trade in general equilibrium

We develop a two-country, multi-sector model of oligopoly in which unionised and non-unionised sectors interact in general equilibrium. The model is used to study the impact of trade liberalisation, deunionisation and firm entry on wages in unionised and non-unionised sectors, and on welfare. We find that a shift from autarky to free trade increases non-union wages and welfare, whereas the effect on union wages is ambiguous. We also show that partial deunionisation leads to higher wages in both unionised and non-unionised sectors, but only increases welfare when the proportion of unionised sectors is sufficiently low. Finally, wages in non-unionised sectors necessarily increase with firm entry, while the response of union wages and welfare depends on the trade regime.

Unions, Competition and International Trade in General Equilibrium

We develop a two-country, multi-sector model of oligopoly in which unionised and non-unionised sectors interact in general equilibrium. The model is used to study the impact of trade liberalisation, deunionisation and firm entry on wages in unionised and non-unionised sectors, and on welfare. We find that a shift from autarky to free trade increases non-union wages and welfare, whereas the effect on union wages is ambiguous. We also show that partial deunionisation leads to higher wages in both unionised and non-unionised sectors, but only increases welfare when the proportion of unionised sectors is sufficiently low. Finally, wages in non-unionised sectors necessarily increase with firm entry, while the response of union wages and welfare depends on the trade regime.

Understanding customers' revealed satisfaction preferences: An order probit model for credit unions

The issue of customer satisfaction has consistently surfaced as a central tenet in descriptive models regarding the behaviour of consumers. Satisfaction/dissatisfaction as a construct has been subject to a wide range of measurement alternatives and applied in many different industry sectors. This paper examines customer satisfaction and its role in the credit union sector of the financial services industry. The study uses an Order Probit model of Reveals Customer Satisfaction and finds empirical support indicating that a higher probability of achieving excellent overall customer satisfaction ratings is directly affected by high satisfaction in courtesy, privacy and waiting indicators. These results are particularly relevant for strategic management design of credit union product/service strategy.

Optimal monetary policy in economies with dual labor markets

We present a dynamic stochastic general equilibrium (DSGE) New Keynesian model with indivisible labor and a dual labor market: a Walrasian one where wages are fully flexible and a unionized one characterized by real wage rigidity. We show that the negative effect of a productivity shock on inflation and the positive effect of a cost-push shock are crucially determined by the proportion of firms that belong to the unionized sector. The larger this number, the larger are these effects. Consequently, the larger the union coverage, the larger should be the optimal response of the nominal interest rate to exogenous productivity and cost-push shocks. The optimal inflation and output gap volatility increases as the number of the unionized firms in the economy increases.

Public and Private Sector Wages Interactions in a General Equilibrium Model

This paper develops a dynamic general equilibrium model in which the public and the private sector interact in the labor market. Previous studies that analyze the labor market effects of public sector employment and wages have mostly assumed exogenous rules for public wage and public employment. We show that theories that equalize wages with marginal products in the private sector can rationalize the interaction of public and private sector wages when extended to accommodate a non-trivial government sector/public sector union that endogenously determines public employment and wages. Our model suggests a positive correlation between public and private sector wages. Any increase in tax revenues, coupled with the existence of a positive public-private sector wage gap, makes working in the public sector an attractive option. Thus, a positive neutral productivity shock increases public and private sector wages. More interestingly, even a private-sector specific productivity shock spills-over to the public sector, increasing public wages. These facts lend some support to the wage leading role of the private sector. Nevertheless, at the same time, a positive shock to public sector wages would lead to an increase in private sector wages, via the flow of workers from the private to the public sector. JEL Classification: C32, J30, J51, J52, E62, E63, H50

Credit union regulation and the financial services authority: less is more, but better!

PurposeThe UK's financial watchdog, The financial services authority (FSA) took over prudential regulation and control of credit unions on 2nd July 2002. The purpose of this paper is to assess the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. It also aims to assess what the future may hold for the direction of the UK credit union sector.Design/methodology/approachAn assessment is made of the impact of the new regulatory framework and its impact on the continued poor perception of credit unions among users of financial services products. Also, an assessment is made of what the future may hold for the direction of the UK credit union sector.FindingsThe paper finds that credit union membership is growing, as are members’ deposits and loans, however at the same time the numbers of individual credit unions are falling. Overall, with supervision and regulation passing to the FSA, the outlook for credit unions in the UK is better than at any time in their history. The result of the new regime will ultimately lead to a strong, secure and professional credit union sector, capable of meeting the credit needs of a wide range of persons.Originality/valueThe paper provides a useful overview of the history and present status of UK credit unions, and the effects of recent legislation and regulation.

Consolidation in the US Credit Union Sector: Determinants of Failure and Acquisition

We examine the determinants of disappearance through liquidation or acquisition for US credit unions during the period 2001-06. The hazard of disappearance is inversely related to both asset size and profitability, and positively related to liquidity. Growth-constrained credit unions are less attractive acquisition targets, but are more likely to fail. Credit unions with low capitalization and those with relatively small loans portfolios are attractive as acquisition targets. We report unique empirical evidence of a link between technological capability and the hazard of disappearance. The absence of an internet banking capability rendered a credit union more vulnerable to acquisition, but did not affect the probability of failure.

Estimating the Determinants of Hours of Work in Quebec and Ontario

In this article, we estimate the determinants of hours of work for Ontario and Quebec using Statistics Canada Labour Force Surveys. We first illustrate that intensity - hours worked per employed person - has decreased in Quebec relative to Ontario between 1997 and 2005. We then proceed to show that differences in average observed characteristics between the two provinces explain at most 10 % of the difference. We next analyze in more details the impact of industry, occupation, public sector status and union status on the distribution of hours of work. We find that if the size and distribution of unions in Quebec were the same as in Ontario, the proportion of workers in Quebec working reduced hours would decrease significantly while the proportions working long or very long hours would increase.

Violencia antisindical en Colombia, evoluciones y paradojas

This article shows the results of a piece of research carried out by the Labor Union National School concerning the issue of Anti-union violence Colombia is going through. Such a brief shows figures and statistical data which let us identify the magnitude of the crisis the Labor Union Movement faces in terms of respect (aggressions and violations coming from different armed sectors, the management, and the State) in view of guaranteeing and defending the Human Rights, especially in the Union sector. It has been intended to show that such a phenomenon is supplied with a diffuse and indiscriminate violence, as it is claimed by the government, but these explications have a political and media impact which aims at hiding the real dimension of the problem. It is about, on the contrary, of an aggression marked by the systematic, permanent, and selective violations which clearly show that this kind of violence must be considered as a very serious fact of political nature against the Colombian Labor Union Movement

Seniority Profiles in Unionized Workplaces: Do Unions Still have the Edge?*

AbstractThe focus of this study is to distinguish the different paths seniority earning profiles follow depending on whether the individual is employed in a workplace where trade unions and collective bargaining are present, or not. Within this framework, two propositions are set. In the union sector seniority should be an important determinant of wages, while in the non‐union sector productivity, proxied by occupational experience, should have a key role on earning profiles. The empirical analysis verifies both propositions. Seniority earning profiles appear to be steeper in the union sector, while occupational expertise is estimated to have a more significant role in non‐union jobs.

Introduction: New Labour, the new public management and changing forms of human resource management

A highly unionized public sector workforce, together with the Labour Party's founding association with the trade union movement has meant that public sector industrial relations have long been reco...

Real and nominal wage rigidities in collective bargaining agreements

An earlier study of wage agreements, reached in the Canadian unionized sector between 1976–99, found that wage adjustment is characterized by downward nominal rigidity and significant spikes at zero. We extend this earlier approach to encompass the possibility of real as well as nominal wage rigidity. The addition of real wage rigidity variables enhances earlier results and suggests that real rigidity increases significantly the mass in the histogram bin containing the mean anticipated rate of inflation, as well as in adjacent bins. Downward nominal wage rigidities and spikes at zero remain important.

Labor Organizing among Mexican-born Workers in the United States

This article surveys unionization patterns and other workplace-oriented organizing among Mexican-born workers since the mid-1990s. Although the number of Mexican-born union members grew during that decade, the unionized proportion declined, especially among noncitizens. The decline reflects the large proportion of new immigrants in the Mexican-born population and the increased geographic dispersion of immigration in recent years away from highly unionized states such as Illinois and California. Another factor is that recent Mexican immigrants are underrepresented in the most unionized sectors (such as government employment). However, unions, especially in California, have effectively mobilized Mexican immigrants into electoral politics in the 1990s, and new community-based organizations with a focus on economic justice have also recruited low-wage Mexican immigrant workers in occupations such as day labor and domestic service, in which conventional unionism is rare.