Bài giảng Labour Market Economics - Chapter 14 Unions Growth and Incidence

Chapter FourteenUnions Growth and Incidence Created by: Erica Morrill, M.Ed Fanshawe College1© 2002 McGraw-Hill Ryerson Ltd.Chapter FocusUnion membershipEvolution of unionsWorkers covered by unionsLevel of unionizationUnions in Canada and U.S.2© 2002 McGraw-Hill Ryerson Ltd.UnionsCollective organizationsObjective to improve the well-being of membersPlay a role in social and political affairs3© 2002 McGraw-Hill Ryerson Ltd.Types of UnionsCraft unionsworkers in a particular trade or occupationIndustrial unionsrepresent workers in an entire industry4© 2002 McGraw-Hill Ryerson Ltd.Unions and Collective Bargaining in CanadaSignificant fraction of labour forceUpward trendHigher among nonoffice than office employeesCan influence wages and conditions of unorganized workers in the same industry5© 2002 McGraw-Hill Ryerson Ltd.The Legal FrameworkReflects the changing social attitudes toward unionsPlayed a role in the increase in unionsThree phasesPrior to Confederation the law discouraged unionization1870s the law was “neutral”Post WWII legislation encourages unionization6© 2002 McGraw-Hill Ryerson Ltd.Canadian Labour Relations PolicyEstablished the right form unionsCollective bargaining protectedBargaining units and representation establishedCertified unions became exclusive bargaining representativeBargain in good faithEnforced7© 2002 McGraw-Hill Ryerson Ltd.Factors Influencing Union Growth and IncidenceSubstantial but erratic growthUnion densityhigher than U.S., France, Japanlower than Scandinavian countriesdeclined from 1980-1994Collective Agreement Coveragelower than the OECD countriesexceeds Japan,New Zealand,U.S.8© 2002 McGraw-Hill Ryerson Ltd.Benefits of Union RepresentationDemand sidehigher wages/nonwage benefitsgreater employment securityprotection from arbitrary treatmentCostsdues, time, potential loss of income9© 2002 McGraw-Hill Ryerson Ltd.Benefits of Union RepresentationSupply sideadministering contracts are costlyunions will allocate resources to yield the greatest returnsuccess in organizing depends on a variety of factors10© 2002 McGraw-Hill Ryerson Ltd.Dimensions that Determine Union StatusWorkers become represented by certified unionUnion is the exclusive bargaining unitInfluenced by workers decisions to become union or nonunionInfluenced by the hiring decisions of employers Growth and decline over time11© 2002 McGraw-Hill Ryerson Ltd.Supply and Demand FrameworkLevel of unionization does not correspond to actual supply and demandgovernment regulationimperfect competitionQuestioning individuals’ desire to be unionized provides an estimate of demand12© 2002 McGraw-Hill Ryerson Ltd.Social Attitudes Toward Unions and Collective BargainingAffect the receptiveness of employees and resistance of employersDifficult to measureAttitudes becoming less favourable 13© 2002 McGraw-Hill Ryerson Ltd.The Legislative Framework Governing Unionization and Collective BargainingLegislation influences supply and demandReflects society’s attitudesDifficult to determine the independent impact In Canadalowered cost of unionizationrestricted employers from discouraging unionization14© 2002 McGraw-Hill Ryerson Ltd.Other Economic and Social LegislationDirection of effect difficult to determineRaising of employment standards minimum wage, overtime premiumsstatutory holidayshealth and safetynotice of layoff, severance paySocial Programs15© 2002 McGraw-Hill Ryerson Ltd.Aggregate Economic ConditionsUnion growth varies directly with growth of employment eligible for unionizationResistance low when demand for product is high and labour market is tightUnions able to secure wage and benefits when excess of labour demand16© 2002 McGraw-Hill Ryerson Ltd.Industry and Enterprise CharacteristicsUnionization higher inlarger firmsconcentrated industriescapital-intensive production processeshazardous jobs17© 2002 McGraw-Hill Ryerson Ltd.Personal CharacteristicsPart-time workers and intermittent labournet benefits lowercosts of higherWomenBlue-collar industriesAge and experience18© 2002 McGraw-Hill Ryerson Ltd.End of Chapter Fourteen19© 2002 McGraw-Hill Ryerson Ltd.