MGMT 329 UNDERSTANDING UNIONIZATION DECISION

Different Aspects of Unions Economic Economic Voice Voice Equity Equity Countervailing Power Countervailing Power Forced Unionism Forced Unionism

The Economic Rationale Traditional bread-and-butter concerns Traditional bread-and-butter concerns Getting a better deal Getting a better deal negotiating higher wages and benefits negotiating higher wages and benefits Taking wages out of competition Taking wages out of competition protecting members from competition protecting members from competition “organizing to the extent of the market” “organizing to the extent of the market”

The Voice Rationale Exit and Voice Theory Exit and Voice Theory Dealing with dissatisfaction Dealing with dissatisfaction Benefits of worker voice Benefits of worker voice improvement in job conditions improvement in job conditions increased productivity increased productivity union shock effect union shock effect

Fairness and Equity “sharing the pie” “sharing the pie” Equity Theory Equity Theory equity within company equity within company equity within industry equity within industry

Countervailing Power Rationale Gaining control over conditions at work Gaining control over conditions at work Lobbying government and taking political action Lobbying government and taking political action unions are the only lobby group unions are the only lobby group Increasing justice in the workplace Increasing justice in the workplace collective agreement collective agreement grievance procedure grievance procedure Providing workers an opportunity for participation Providing workers an opportunity for participation

Forced Unionism Not all unionized workers choose to be represented by a union Not all unionized workers choose to be represented by a union Majority rules! Majority rules! Union security arrangements Union security arrangements

What Workers Actually Want from Unions Survey by Godard (1995) Survey by Godard (1995) Traditional areas Traditional areas protecting wages and benefits protecting wages and benefits protecting job security protecting job security pursuing grievances pursuing grievances pushing for stronger organizing laws pushing for stronger organizing laws supporting workers on strike supporting workers on strike

What Workers Actually Want from Unions What workers believe unions must do What workers believe unions must do ensuring workers have a say in union affairs ensuring workers have a say in union affairs ensuring workers have a say in the workplace ensuring workers have a say in the workplace finding positive solutions to workplace- based conflicts finding positive solutions to workplace- based conflicts representing workers’ interests to management representing workers’ interests to management

Unionization: Propensity and Opportunity Why do some workers join unions while others do not? Why do some workers join unions while others do not? Propensity Propensity Job Dissatisfaction Job Dissatisfaction Perceived Union Instrumentality Perceived Union Instrumentality Preconceived Views About Unions Preconceived Views About Unions

Unionization: Propensity and Opportunity Opportunity Opportunity Type of industry and location of employment Type of industry and location of employment The nature of the union that traditionally organizes the particular industry The nature of the union that traditionally organizes the particular industry The public-policy setting The public-policy setting Degree and expression of employer opposition Degree and expression of employer opposition

Process of Unionization Dissatisfaction with working conditions Dissatisfaction with working conditions Gap between workers’ expectations and their achievements Gap between workers’ expectations and their achievements Inhibiting or facilitating conditions Inhibiting or facilitating conditions Widening Expectation-Achievement Gap Widening Expectation-Achievement Gap Union Organizing Phase Union Organizing Phase Unionization Unionization Post-Unionization Phase Post-Unionization Phase