Tag

Collective bargaining

The Impact of Union-Management Cooperation on Productivity and Employment

By | Social dialogue

This study examines the effects of union-management cooperative programs on productivity and employment. The author collected productivity and employment data for each of nine manufacturing plants at monthly time intervals over a period of four to five years—from two years before to at least two years after the introduction of the cooperative program. Regression analysis of these time-series data is supplemented by qualitative data from personal interviews and relevant records. The results show that after introduction of the cooperative programs, productivity increased in six of the eight firms in which it could be measured and employment remained stable in eight of the nine firms.

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Works Councils and Collective Bargaining in Germany: The Impact on Productivity and Wages

By | Case-study, Germany, Social dialogue

Abstract

This paper investigates the interaction between establishment‐level codetermination and industry‐level collective bargaining in Germany. Based on a bargaining model, we derive our main hypothesis: In establishments covered by collective bargaining agreements, works councils are more likely to be engaged in productivity‐enhancing activities and less engaged in rent‐seeking activities than their counterparts in uncovered establishments. Our empirical analysis confirms this hypothesis. The presence of works councils exerts a positive impact on productivity within the covered industrial relations regime but not within the uncovered regime. The presence of works councils has a positive effect on wages within the uncovered regime but not to the same degree within the covered regime.

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Enterprise Sustainability and HRM in Small and Medium-Sized Enterprises

By | Social dialogue

Abstract

This chapter looks at the specific challenges, expectations and opportunities small medium-sized enterprises in emerging countries face regarding enterprise sustainability in today’s worldwide economy characterized by the strong interconnection of supply chains. In its experience with small enterprises development in emerging countries, the International Labour Organization (ILO) has recognized that quality human resource management (HRM) and good workplace practices are a key determinant of enterprise performance and productivity, as well as in practice at the community, national or even international level. Based on the ILO’s Decent Work Agenda (ILO, Decent work, report of the ILO Director-General, 87th session of the International Labour Conference. ILO, Geneva, 1999), the Declaration on Fundamental Principles and Rights at Work (Declaration on Fundamental Principles and Rights at Work. ILO, Geneva, 1998) and the technical cooperation experience of ILO’s Job Creation and Enterprise Development Department, the HRM practices described here are intended to improve enterprise sustainability, understood in its economic, social, and environmental dimensions. Practical examples from the ILO’s practice demonstrate the implementation of labour rights in SMEs in emerging countries.

 

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A Social Labor for Social Dialogue: A Proposal to Improve Working Conditions for Women in the Guatemalan Apparel Industry

By | Guatemala, Social dialogue

ABSTRACT

The only two independent unions in the Guatemalan apparel industry are suffering a decline in union membership and have become impotent against management bullying. Guatemalan women workers, who make up 80 percent of the apparel industry workforce, face entrenched impediments to their participation in organized labor, effectively preventing them from improving workplace conditions. The underlying reason is that the Guatemalan culture of machismo creates physical and social barriers that deny women the opportunity to develop and exercise their agency in the workplace or in their union. This presents a quandary for legal and social schemes that rely on union-inspired worker activism to improve workplace conditions but that fail to consider the gender context that stunts women’s participation in organized labor. This paper proposes the Trade Fair Label, a social labeling scheme based on worker-manager social
dialogue units, that addresses the shortcomings of oft-utilized corporate social responsibility schemes and that defies the impediments created by the culture of machismo.

 

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Labour Relations Quality and Productivity: an Empirical Analysis on French Firms

By | France, Social dialogue

Abstract

We empirically characterise how good labour relations can alleviate the negative impact on productivity of regulatory constraints or workforce opposition. The estimates are based on a unique survey of French manufacturing firms collected by the Banque de France over the period 1991-2008. Our main results may be summarised as follows:

i) workforce or union opposition interacted with regulatory constraints has a negative significant impact on total factor productivity (TFP). When this interaction is not taken into account, a deteriorated labour climate, through workforce or union opposition, weighs directly on TFP. But when this interaction is taken into account, this negative impact relies solely on the combination of regulatory constraints and labour opposition: workers or unions can successfully oppose managements decisions and weigh on TFP when they can use or threaten to use appropriate regulation; otherwise, their opposition may be harmless;

ii) regulatory constraints interacted with branch or firm agreement has a positive significant impact on TFP. These agreements, which can only be obtained if labour relations are supportive, would be used by firms to offset the negative impact of regulatory constraints. This favourable impact can be obtained through two channels: first, informally, a good labour climate can lead to a flexible implementation of regulation; second, formally, the French labour code incorporates provisions that allow firm or branch agreements to adapt or even alleviate the constraints of regulation.

These results emphasise that the implementation of regulatory constraints and their impact on productivity crucially hinges on the quality of labour climate.

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The Cost and Benefits of Collective Bargaining

By | Social dialogue

Abstract

Co-ordination through collective bargaining is recognised as an influential determinant of labour market and macroeconomic performance. This paper provides a systematic review of the empirical literature on the subject. We focus on comparative studies of labour institutions in the OECD area that try to disentangle the impact of different institutional approaches to collective bargaining from other determinants of macroeconomic performance, and review the recent literature on the interaction between labour market institutions and monetary policy.
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Working Conditions and Social Dialogue

By | Belgium, Case-study, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Social dialogue, Spain

This report examines the link between working conditions and social dialogue, highlighting instances where social dialogue has had an impact on working conditions. The impact of social dialogue on working conditions is considered at all levels – national, sectoral, company and workplace levels. There is also a specific focus on occupational health and safety. The first section of the report maps existing research and administrative reports, highlighting the findings of surveys, both quantitative and qualitative, that have identified a link between social dialogue and working conditions. The second section looks at examples of social dialogue drawn from case studies that have had an impact on working conditions in a range of areas. Some examples of incomplete social dialogue are also presented, including possible reasons for the shortcomings. Finally, the report identifies potential lessons for the future in terms of factors that contribute to the success or failure of social dialogue.

The study was compiled on the basis of individual national reports submitted by the EIRO and EWCO correspondents. The text of each of these national reports is available below. The reports have not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The national reports were drawn up in response to a questionnaire and should be read in conjunction with it.

 

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Fostering economic development through social partnership in Barbados

By | Barbados, Case-study, Social dialogue

Abstract:

Analyses the framework and processes of labour relations and social partnership at the national level in Barbados and explores experiences of social dialogue in relation to improving productivity, technical and vocational education, occupational health and safety and in the tourism sector. Includes a comparison of social dialogue in other Carribean countries.

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Unions can increase efficiency: Ten examples

By | Case-study, Social dialogue

Millions of workers in different countries and in different times have sought to organize into unions. Whether or not a government’s laws facilitate organizing, there has been widespread demand by individuals for labor unions– as an expression of their freedom of association. In spite of higher costs that may be related to unions, workers have fought for the right to organize to tilt the balance of power from employers to workers, to provide due process procedures, and to ensure that workers earn an adequate living to support a family. Unions do not form out of thin air; they arise when individuals decide to come together to collectively address market inefficiencies and social problems.

These private actions of individuals make it clear that unions have some place in benefiting the economy. While the costs of unions are often brought up, politicians and the voting public must also consider the benefits of unions. This Illinois Economic Policy Institute (ILEPI) Economic Commentary investigates how unions can increase economic efficiency. The report outlines ten examples of unions positively improving the economy for the better:

1. Union workers earn higher wages and increase consumer demand;
2. Unions reduce socially inefficient levels of income inequality;
3. Union workers receive less government assistance;
4. Union workers contribute more in income taxes;
5. Unions increase productivity in construction, manufacturing, and education;
6. Unions reduce employee turnover rates;
7. Unions fight against child labor and for public education;
8. Unions fight against all forms of discrimination;
9. Unions collectively bargain toward efficient contracts; and
10. Unions fight against the “monopsony” power of owners, especially in sports.

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Social Dialogue in times of crisis: Finding better solutions

By | Belgium, Brazil, Case-study, Chile, Czech Republic, Ghana, Honduras, Hungary, Indonesia, Ireland, Italy, Japan, Malaysia, Netherlands, Niger, Panama, Peru, Poland, Singapore, Social dialogue, South Africa, Sweden, United States

This paper looks at past economic crises to identify lessons that can be learned from industrial relations developments in different regions and varying circumstances. The paper describes the development of social dialogue in the early period of the current crisis in order to inform the reader about the forms and content of crisis-related social dialogue in different parts of the world and to provide national examples. It concludes by suggesting policy options. The paper also contains tables of national and enterprise-level cases documenting the role of social dialogue and industrial relations in addressing the employment impact of the crisis.

 

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