This study analyses the difference between firm-level and sector-level collective bargaining agreements, using Belgium as a basis. It argues that firm-level agreements do more to raise wage levels past productivity increases, without affecting the organisation’s overall profitability. It suggests that firm-level agreements more strongly raise wages without affecting profitability, but have shorter reaching effects than sector-level agreements.
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If the presence of a union in a workplace or firm raises the pay level, unless productivity rises correspondingly, financial performance is likely to be worse. If the product market is uncompetitive this might imply a simple transfer from capital to labour with no efficiency effects, but is probably more likely to lead to lower investment rates and economic senescence. Therefore the impact of unions on productivity, financial performance and investment is extremely important. This paper distils evidence on such effects from six countries: USA, Canada, UK, Germany, Japan and Australia. It is not possible to use theory to predict unambiguously any union effect on productivity because unions can both enhance and detract from the productivity performance of the workplace or firm. The evidence indicates that, in the USA, workplaces with both high performance work systems and union recognition have higher labour productivity than other workplaces. In the UK previous negative links between unions and labour productivity have been eroded by greater competition and more emphasis on ”partnership” in industrial relations but there is a lingering negative effect of multi-unionism, just as there is in Australia. In Germany the weight of the evidence suggests that the information, consultation and voice role of works councils enhances labour productivity particularly in larger firms. In Japan unions also tend to raise labour productivity via the longer job tenures in union workplaces which makes it more attractive to invest in human capital and through the unpaid personnel manager role played by full-time enterprise union officials in the workplace. Unions will reduce profits if they raise pay and/or lower productivity. The evidence is pretty clear cut: the bulk of studies show that profits or financial performance is inferior in unionised workplaces, firms and sectors than in their non-union counterparts. But the world may be changing. A recent study of small USA entrepreneurial firms found a positive association between unions and profits and in the UK the outlawing of the closed shop, coupled with a lower incidence of multi-unionism has contributed to greater union-management cooperation such that recent studies find no association between unions and profits. North American and German evidence suggests that unionisation reduces investment by around one fifth compared with the investment rate in a non-union workplace. In both Canada and the USA this effect is even felt at low levels of unionisation. The UK evidence is mixed: the most thorough study also finds that union recognition depresses investment, but this adverse effect is offset as density rises. The exception is Japan where union recognition goes hand-in-hand with greater capital intensity.
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This paper empirically studies union effects on the performance of, and employment relations in, China’s private enterprises. The study finds a positive and statistically significant union effect on labor productivity, but not on profitability. It further finds that unions lead to better employee benefits and increased contract signing in employment. These findings suggest that, in the era of transition from a centrally planned to a market economy, unions in China’s private enterprises do promote workers’ interests as unions do in other economies. And they do that without abandoning their traditional role of harmonizing employment relations, as required by the Party.
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TUDCN has undertaken three national case studies in Ghana, Indonesia and Uruguay to analyse social dialogue within the countries in its various forms, with particular focus on the formalisation of these dialogues at different administrative levels and its contribution to development. The studies are authored by national trade union specialists and include examples of good practice as well as of limitations of the different contexts.
The Ghana case study puts forward the role of institutionalised social dialogue in increasing the minimum wage. It also highlights how other forms of social dialogue, including consultations and discussions, have contributed to the elaboration of the Poverty Reduction Strategy; of national employment, youth and social protection policies; and to the inclusion of social partners on the governing boards of public institutions.
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The CSR Risk Check tool is aimed at companies that are exporting to, importing from or have production facilities in foreign countries.
MVO Nederland is the Netherlands’ national knowledge hub and networking organisation for corporate social responsibility (CSR). Going by our motto of ‘changing together,’ we inspire, connect and strengthen affiliated companies and industry organisations in their process of evolving towards sustainable operations. As a partner of MVO Nederland, the numerous events and networking sessions we organise, while our range of practical tools will help you put CSR into practice. Visit our website for a full list of the benefits of partnering with MVO Nederland (in Dutch), as well as further information about our activities in various areas of CSR, such as International CSR (ICSR). More specific information is available on the Dutch version of the website.
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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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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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The purpose of the study is in Partial Fulfilment for the Requirements of the Degree of Masters of Arts in Human Resource Management and the study mainly focused on the assessment of the impact of labour union on employees’ performance in commercial bank of Ethiopia. To conduct this study mixed approach method i.e., both quantitative and qualitative methods have been used to have better out come out of the study. The qualitative one has been used to describe about the perceptions of respondents about the labour union effectiveness in its major practice in enhancing the employees’ performance using content analysis. And the quantitative one to explain about the effectiveness of labour union in its major practices in enhancing the employees’ performance using statistical tool i.e., mode of frequencies in number and percentage. Communication network, working condition and harmony, safety and healthy, salaries and benefits, collective action in partnership with management, policy and strategic issues and conflict and complain handling were selected to be the study variables. For the target population it used employees of the organization who are working in Addis Ababa region. Both descriptive and explanatory survey design has been used to reach on the results. Samples of 423 employees were used for the questionnaire, and 92.43% of it was responded. The quantitative data were analysed using SPSS software and the qualitative data were analysed using content analysis and the results of which were combined by interoperating with the results of quantitative one for the final results ,as a result it was found that more than 37.9% of the respondents in the questionnaires under the closed ended questions and majority of respondents’ opinion under the open ended questions in the questionnaires have given their negative feed backs about the effectiveness of labour union. In addition, five of them out of seven interviewees have given their negative feedbacks about its effectiveness. However, much less than 45.8% of the respondents in the questionnaires have given their positive feedback. In general, as results indicate the labour union is not effective or very weak in its practices to enhance employees’ performance to the desired level in the achievement of the goals of the organization and has very weak bargaining power.
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